HomeMy WebLinkAbout20112894.tiff RECORD OF PROCEEDINGS
MINUTES
BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORADO
OCTOBER 31, 2011
The Board of County Commissioners of Weld County, Colorado, met in regular session in full
conformity with the laws of the State of Colorado at the regular place of meeting in the Weld County
Administration Building, Greeley, Colorado, October 31, 2011, at the hour of 9:00 a.m.
ROLL CALL: The meeting was called to order by the Chair and on roll call the following members
were present, constituting a quorum of the members thereof:
Commissioner Barbara Kirkmeyer, Chair
Commissioner Sean P. Conway, Pro-Tem
Commissioner William F. Garcia
Commissioner David E. Long
Commissioner Douglas Rademacher
Also present:
County Attorney, Bruce T. Barker
Acting Clerk to the Board, Elizabeth Strong
Controller, Barbara Connolly
MINUTES: Commissioner Conway moved to approve the minutes of the Board of County
Commissioners meeting of October 26, 2011, as printed. Commissioner Long seconded the motion,
and it carried unanimously.
CERTIFICATION OF HEARINGS: Commissioner Garcia moved to approve the Certification of
Hearings conducted on October 26, 2011, as follows: 1) USR-0011 — Todd and Rhonda Amen; and
USR11-0004 - Soto Gonzales, c/o Foster Trucking, Inc./Donn Foster and Mary Lee Hardy.
Commissioner Conway seconded the motion, which carried unanimously.
AMENDMENTS TO AGENDA: There were no amendments to the agenda.
PUBLIC INPUT: No public input was given.
CONSENT AGENDA: Commissioner Rademacher moved to approve the Consent Agenda as printed.
Commissioner Conway seconded the motion, and it carried unanimously.
BIDS:
APPROVE BID #61100135, CUSTODIAL SERVICES FOR DOWNTOWN BUILDINGS -
DEPARTMENT OF BUILDINGS AND GROUNDS: Barbara Connolly, Controller, recommended
acceptance of the second lowest bid, since the lowest bid in incomplete.
Responding to Commissioner Conway, Toby Taylor, Department of Buildings and Grounds, stated the
lowest bidder only submitted a price sheet; however, the bid specifications also requested descriptions
about how the task would be completed, the number of employees to be utilized, the proposed training
plan, and other various items, none of which was submitted by Becks Building Care. In further
Minutes, October 31, 2011 2011-2894
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response to Commissioner Conway, Mr. Taylor stated he has not worked with the recommended
vendor before; however, he checked the company's references. In response to Commissioner
Rademacher, Mr. Taylor stated the low bidder was the only company which did not submit all the
requested information. Commissioner Long moved to approve the second lowest bid from Oband's
Janitorial, in the amount of $15,100.00 per month, based on staff's recommendation. Commissioner
Rademacher seconded the motion. Upon request for a roll call vote, the motion carried three (3) to
two (2), with Commissioners Conway and Garcia being opposed.
APPROVE BID #81100136, CUSTODIAL SERVICES FOR HUMAN SERVICES BUILDINGS -
DEPARTMENT OF BUILDINGS AND GROUNDS: Ms. Connolly recommended acceptance of the low
bid from Bio Medical Janitorial, dba Scrubs Medical Janitorial. Commissioner Rademacher moved to
approve the low bid from Bio Medical Janitorial, dba Scrubs Medical Janitorial, for $6,688.00 per month,
based on staff's recommendation. Seconded by Commissioner Garcia, the motion carried
unanimously.
NEW BUSINESS:
CONSIDER PETITION FOR ABATEMENT OR REFUND OF TAXES — CBMRE, LLC: Christopher
Woodruff, Assessor, stated this property is a mini-warehouse storage unit located in the Town of
Frederick, and this petition is for Tax Year 2010. He stated the appraisal date for 2010 was June 30,
2008, and data was utilized from the year 2007 and the first half of the year 2008. He stated the Board
previously considered a petition for abatement for the year 2009, and denied said petition.
Wade Melies, Appraiser, Assessor's Office, stated he has provided the Valuation Report to the Board
for this property. He stated the total square footage of the land is 53,709, and the five (5) mini-
warehouse buildings were constructed in the years 1994 and 1999. He stated the buildings are in
average conditions and have metal frames, and the buildings are a total of 18,080 square feet.
Mr. Melies stated on Page 3 of the Valuation Report three (3) comparable sales are listed to establish
the value of the land, which vary from $2.07 to $6.76 per square foot. He stated the highest value is for
a property along a major arterial road and the lowest value is for an older property, and the subject
property was valued at $2.00 per square foot, for a land value of $107,418.00. He stated the property
contains two (2) individual lots totaling 107,549 square feet; however, only the parcel with the
improvements is being appealed, which contains 53,709 square feet. Mr. Melies stated Page 4 of the
Valuation Report has a map containing the comparable sales properties which were selected, and
Page 5 contains photographs and sketches of the subject property. He stated the summary of the cost
approach is on Page 6, and the Assessor's Office utilized Marshall and Swift Valuation Service. He
stated the cost approach determined an improvements value of $438,229.00, and a value of
$107,418.00 for the land, for a total value of $545,647.00. He stated Page 7 provides a summary of the
costs of the various buildings, the years the buildings were constructed, the depreciation applied, and
the same information is included for some of the asphalt paving and chain link fencing. Mr. Melies
stated Page 8 summarizes the market approach, which resulted in a property value of $579,360.00,
and Page 9 provides the comparable sales utilized from the data collection period. He stated the
unadjusted sales price ranges from $35.00 to $53.00 per square foot, and after adjustments for
conditions, age, and outside storage, the range changes to be $38.00 to $40.00 per square foot. He
stated the square footage was multiplied by $38.00, equaling $687,040.00, and the outside storage lot
square footage was multiplied by $2.00, equaling $107,680.00. He stated the non-appealed lot value of
$107,680.00 was subtracted from the total value of $687,040.00, for a total value of $579,360.00. He
stated that the following pages provide details and photographs of the comparable sales utilized, and
Page 13 provides the income approach summary, which resulted in a total value of $449,871.00 for the
subject property. Mr. Melies stated the Assessor's Office has requested the actual income for the
subject property for the years 2007 and 2008; however, the information is not available; therefore, the
potential revenue was calculated based on rental rates used for that timeframe, and the 2006 expenses
were utilized, along with an added percentage for management reserves. He stated the previous
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owner had filed an appeal for 2007, which is the reason the Assessor's Office had the information about
the 2006 expenses. Mr. Melies stated typically mini-storage units in northern Colorado have a vacancy
rate of 20 to 30 percent; however, due to the limited information available from the owner, staff
over-estimated the vacancy rate at 50 percent. He stated this income information, combined with State
and industry data, is utilized to determine typical income and expenses for various property taxes. He
stated additional documentation to support the income analysis includes the MLS listing sheet and the
income analysis from the realtor, dated September, 2008. Mr. Melies stated a capitalization rate of
7.5 percent was utilized, plus the effective tax rate. He requested that the Board sustain the value of
$450,938.00. Commissioner Garcia inquired as to whether there is information to support a 50 percent
vacancy rate for the property, since the average is 20 to 30 percent. Mr. Melies stated the Assessor's
Office has been provided conflicting information over the past several years; therefore, it provided extra
consideration with the vacancy rate.
Wolfram Kasemir, part owner of CBMRE, LLC, submitted a packet of information into the record,
marked Exhibit A. He thanked the Assessor's Office for working with him on Tax Year 2011 valuations,
and he is satisfied with both the valuations for Lots 1 and 2 for 2011. He indicated he concurs with the
Assessor's Office that the income approach is the correct method to utilize for a fair valuation of the
storage facility; however, he does not believe the vacancy rate is accurate. Mr. Kasemir stated he
purchased the property on July 17, 2009, and there were 13 tenants at that time, which was an
87 percent vacancy rate, and almost half of the tenants were in default. He stated the property had
been neglected and mismanaged for years and it was in foreclosure; however, within a year he
decreased the vacancy rate to 77 percent, and he had a gross income of $28,000.00 for the year. He
stated the property taxes were set at $16,000.00, which is 57 percent of the gross income, and an
additional $24,000.00 in delinquent taxes was due at the closing. He stated that Mr. Melies indicated
the total revenue reported by the previous owner was not available for the years 2007 and 2008;
therefore, staff utilized the expenses reported by the owner for 2006, which totaled $11,389.00;
however, this amount is very close to the industry standard of 35 percent of gross income in a stable
situation and it is very close to his actual gross income from 2009 and 2010, which was $11,826.00.
Mr. Kasemir stated he has tried to obtain profit loss statements from the previous owner to no avail;
however he is utilizing standard profit loss percentages, as published by the "Inside Self Storage"
organization, which was also utilized by Mr. Melies. He stated he has obtained information for three (3)
similar storage facilities: Handy Storage and Access Storage, both located in the City of Denver, and
Greeley Self Storage. He stated he has determined the average tax expense of those three (3)
facilities to be 38 percent of their total expenses and 13 percent of their gross income, as opposed to
57 percent, as in his case. He stated a 10 percent capitalization rate is justifiable since the property is
not stabilized. Mr. Kasemir stated he accepts most of the figures staff has determined, other than the
vacancy rate. He stated the vacancy rate has steadily been declining since he purchased the property
in the year 2009, starting with a vacancy rate of 87 percent and declining to 77 percent a year later;
therefore, it is reasonable to assume the vacancy rate was between 70 and 80 percent for the year
2010. He stated he has provided a spreadsheet in his packet which demonstrates what the various
values would be when utilizing 50, 70, and 75 percent vacancy rates, as well as a project for
2011-2012. Mr. Kasemir stated gross income and vacancy rates are closely related, and when you
know one, you can calculate the other, and a change in the vacancy rate or gross income drastically
changes the property valuations. In response to Commissioner Rademacher, Mr. Kasemir confirmed
he is proposing the taxable value of the property should be $338,358.00. Commissioner Rademacher
requested that Mr. Woodruff submit the information Mr. Kasemir has submitted and provide his opinion
to the Board. Mr. Woodruff stated he has reviewed the information; however, the only information staff
can review in determining the vacancy rate for year 2010 are the vacancy rates from the years 2007
and 2008, which they do not have in their possession. He stated the current vacancy is known, as well
as the vacancy rate when Mr. Kasemir purchased the business; however, the vacancy rates from 2007
and 2008 are unknown. Commissioner Garcia inquired as to whether the appraiser is required to utilize
the income approach if it yields the lowest valuation for a property. Mr. Melies stated all three (3)
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approaches can be utilized equally or the distribution can be applied however the appraiser deems
appropriate, and typically, more emphasis is placed on the income approach when determining the
valuation for an income property; however, actual income can reflect a lack of management; therefore,
a market approach may be more accurate. He stated sometimes both actual and potential incomes are
calculated when determining the value of a property. In response to Commissioner Garcia, Mr. Melies
confirmed the 50 percent vacancy rate takes into consideration the previous mismanagement of the
property by the prior owner, by not applying the standard vacancy rate, which would be much lower,
while also not applying a vacancy rate as high as Mr. Kasemir has requested. Mr. Melies stated the
market approach also supports the valuation. Mr. Woodruff stated staff must be careful when
considering actual income information because the business and real property values are mixed in
together, and staff is attempting to value the property itself, without the effect of good or poor
management on the business itself; however, in this type of situation, this is difficult to complete. He
stated staff has tried to verify income streams for typical similar properties; however, it recognizes this
was a distressed property when Mr. Kasemir acquired it in the year 2009, which has been taken into
account for the 2011 valuation, where the value was significantly reduced. He stated staff hopes its
valuation is representative of a fair market value at the time of the 2008 valuation date, and staff
concurs there has been a substantial loss in value subsequent to that time. In response to Chair
Kirkmeyer, Mr. Kasemir stated he understands the Assessor's Office's approach; however, no business
can reasonably survive in the situation where it is being taxed 57 percent of its gross income, as he is
being taxed. He reiterated the fact there was a higher vacancy rate in the years prior to his ownership
of the property further supports his case. In response to Commissioner Conway, Mr. Melies stated the
vacancy rate for similar businesses for those years has been approximately 20 to 30 percent.
Commissioner Garcia thanked Mr. Kasemir for providing a well-prepared presentation to the Board, and
he indicated the Assessor's Office considers multiple approaches in valuing the property and leans in
favor of the taxpayer when possible. He stated the Board is responsible for providing equity for all the
taxpayers, and the Board strives to make appropriate adjustments for individual taxpayers, while
considering the taxpayers as a whole community of interest. He indicated he finds the 50 percent
vacancy rate for 2008 to be generous to the taxpayer, and he does not think every storage operation
received the same consideration as this one, and he feels staff has determined an appropriate value.
Commissioner Conway stated he feels the Assessor's Office did the best job it could with the
information it had at the time the valuation was determined; however, new information has been
provided by the petitioner, which he finds to be compelling, and he thinks it should be taken into
consideration. He stated he agrees with Commissioner Garcia that the Assessor's Office was being
very fair when it assigned a 50 percent vacancy rate for the property; however, he believes the new
information indicates the vacancy rate was substantially higher, and perhaps a vacancy rate can be
selected which is in between the percentages the appraiser and the petitioner are proposing.
Commissioner Rademacher concurred with Commissioner Garcia's position. He stated the Assessor's
Office went above and beyond the call of duty in trying to accommodate the taxpayer in this situation.
Commissioner Conway moved to set the taxable property value at $400,000.00. The motion died, due
to the lack of a second. Commissioner Rademacher moved to deny said petition, based on staff's
recommendation. Commissioner Garcia seconded the motion. There motion carried four (4) to
one (1), with Commissioner Conway in opposition.
CONSIDER NONEXCLUSIVE LICENSE AGREEMENT FOR THE UPGRADE AND MAINTENANCE
OF CR 106 AND AUTHORIZE CHAIR TO SIGN - CARRIZO OIL AND GAS, INC.: Donald Carroll,
Department of Public Works, stated this site is located approximately ten (10) miles north of the Town
of New Raymer, and it is located at the intersection of County Road 119 and where the Section Line for
County Road 106 would be located. He stated the County has 60 feet of right-of-way in place;
however, it will only utilize the 30 feet in Section 11 to access the Castor 15-41-9-59 Pad Site. He
stated staff has contacted the adjacent property owners and no negative feedback has been received,
and he recommended approval to access the pad site. Commissioner Long moved to approve said
Minutes, October 31, 2011 2011-2894
Page 4 BC0016
agreement and authorize the Chair to sign. Seconded by Commissioner Rademacher, the motion
carried unanimously. (Clerk's Note: The legal description in the Nonexclusive License Agreement was
subsequently corrected to accurately reflect staff's intent, and the correction is consistent with the
information provided in the associated maps.)
CONSIDER TEMPORARY CLOSURE OF CR 74 BETWEEN CRS 57 AND 59: Janet Carter,
Department of Public Works, stated said closure will commence November 7, 2011, through
November 18, 2011, in order to replace two (2) culverts. She stated one of the culverts is a steel pipe
being replaced with a reinforced concrete pipe, and the other is a steel pipe which will be replaced with
another steel pipe. She stated the average daily traffic count is 684 vehicles, according to a traffic
count taken in the year 2009, and message boards will be utilized prior to the closure. Ms. Carter
stated magnesium chloride will be utilized for dust abatement if it is needed, and road signs and
barricades will be utilized throughout the closure. Commissioner Rademacher moved to approve said
temporary closure. Seconded by Commissioner Conway, the motion carried unanimously.
CONSIDER TEMPORARY CLOSURE OF CR 62.75 BETWEEN CRS 55 AND 57: Ms. Carter stated
said closure will commence November 7, 2011, through November 10, 2011, in order to replace a
36-inch steel culvert pipe. She stated the average daily traffic count is 126 vehicles, according to a
traffic count taken in the year 2008, and water will be utilized for dust abatement. She stated road
signs and barricades will be utilized throughout the closure. Commissioner Rademacher moved to
approve said temporary closure. Seconded by Commissioner Garcia, the motion carried unanimously.
CONSIDER WELD COUNTY FEDERAL MINERAL LEASE BOARD OF DIRECTORS BYLAWS: Bruce
Barker, County Attorney, stated the first Weld County Federal Mineral Lease (WCFML) Board of
Directors meeting occurred on October 26, 2011, and a president and a secretary were elected. He
stated the WCFML Board of Directors approved its bylaws and Service Plan, and an intergovernmental
agreement will be considered by the Board of County Commissioners on Wednesday, for the WCFML
Board of Directors to contract with the County to complete administrative work. In response to Chair
Kirkmeyer, Mr. Barker stated the WCFML Board of Directors voted in favor of conducting its meetings
in the Weld County Administration Building in Greeley, and public notice will be posted in the Southwest
County Administration Building, as well as this one. Commissioner Conway moved to approve said
bylaws. Seconded by Commissioner Long, the motion carried unanimously.
CONSIDER SERVICE PLAN FOR WELD COUNTY FEDERAL MINERAL LEASE ACT DISTRICT: In
response to Chair Kirkmeyer, Mr. Barker stated there are not any changes to the Service Plan from
what the Board previously reviewed. Commissioner Long moved to approve said Service Plan.
Seconded by Commissioner Rademacher, the motion carried unanimously.
CONSIDER CANCELLATION OF BOARD OF COUNTY COMMISSIONERS MEETING AND LAND
USE HEARINGS SCHEDULED FOR NOVEMBER 30, 2011: Chair Kirkmeyer stated at least three (3)
of the Commissioners will be attending the Colorado Counties, Inc., (CCI) meeting on November 30,
2011. Commissioner Rademacher moved to cancel the Board of County Commissioners meeting and
land use hearings scheduled for November 30, 2011, due to a lack of a quorum. Seconded by
Commissioner Garcia, the motion carried unanimously.
CONSIDER APPOINTMENT TO PLANNING COMMISSION: Commissioner Conway moved to appoint
Joyce Smock to the Planning Commissioner, with a term to expire July 31, 2014. Seconded by
Commissioner Rademacher, the motion carried unanimously.
Minutes, October 31, 2011 2011-2894
Page 5 BC0016
PLANNING:
FINAL READING OF CODE ORDINANCE #2011-10, IN THE MATTER OF REPEALING AND
REENACTING, WITH AMENDMENTS, CHAPTER 8 PUBLIC WORKS, OF THE WELD COUNTY
CODE: Commissioner Rademacher moved to read Ordinance #2011-10 by title only. Seconded by
Commissioner Conway, the motion carried unanimously. Mr. Barker read the Ordinance into the record
by title, and he stated there have been no changes to the Ordinance since second reading.
David Bauer, Department of Public Works, stated he sent the Board an e-mail on Friday with a
spreadsheet comparing the proposed fees to similar fees charged by other counties and jurisdictions.
Commissioner Conway stated he has reviewed the fee list and he finds the fees to be satisfactory;
however, he would like the opportunity for the Board to discuss the fees with the Department of Public
Works if there are unintended consequences. In response to Mr. Bauer, Commissioner Conway
indicated he is unsure as to whether he is suggesting an appeal process should be created. Chair
Kirkmeyer stated this was previously discussed, and the Board had determined that after six (6) months
the Department of Public Works will report the status of the changes to the Board, and if problems have
occurred, staff will propose Code changes to the Board. Commissioner Conway stated six (6) months
is a long period of time and he would like to address the issues when problems arise; he does not want
to wait for six (6) months. He requested that the Department of Public Works notify its Commissioner
Coordinator of any issues which arise in a timely manner, and the Commissioner Coordinator can
discuss the matter with the other Commissioners and they can determine at that time whether they
would like to implement any proactive measures. Chair Kirkmeyer concurred with Commissioner
Conway's suggestion. Commissioner Garcia moved to approve Ordinance #2011-10 on final reading.
Seconded by Commissioner Rademacher, the motion carried unanimously.
RESOLUTIONS AND ORDINANCES: The resolutions were presented and signed as listed on the
Consent Agenda. Ordinance #2011-10 was approved on final reading.
Let the minutes reflect that the above and foregoing actions were attested to and respectfully submitted
by the Acting Clerk to the Board.
There being no further business, this meeting was adjourned at 9:55 a.m.
BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLOR/ADO
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Minutes, October 31, 2011 2011-2894
Page 6 BC0016
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