HomeMy WebLinkAbout20062573 HEARING CERTIFICATION
RE: CONSIDER SERVICE PLAN FOR PROPOSED KITELEY RANCH METROPOLITAN
DISTRICT
A public hearing was conducted on August 30, 2006, at 10:00 a.m., with the following present:
Commissioner M. J. Geile, Chair
Commissioner David E. Long, Pro-Tern
Commissioner William H. Jerke
Commissioner Robert D. Masden
Commissioner Glenn Vaad
Also present:
Acting Clerk to the Board, Jenny Luna
County Attorney, Bruce Barker
Director of Finance and Administration, Donald D. Warden
Planning Department representative, Kim Ogle
The following business was transacted:
I hereby certify that pursuant to a notice duly published August 2, 2006, in the Fort Lupton Press,a
public hearing was conducted to consider the proposed Service Plan for the Kiteley Ranch
Metropolitan District. Bruce Barker, County Attorney, made this a matter of record. Kim Ogle,
Department of Planning Services, presented a brief summary of the proposal and entered the
favorable recommendation of the Planning Commission into the record as written. He stated the
District proposes to provide urban services and continued gas and oil production. He stated the site
is approximately 140 acres, and 427 residential lots are proposed. He stated the estimated cost of
public improvements to be financed,acquired,constructed, installed, and completed by the District
is expected to exceed $8.2 million; however, the total on-site improvements will total more than
$18 million. He further stated all improvements are expected to be completed by December 2009.
Mr.Ogle stated the referral from Donald Warden, Director of Finance and Administration,states the
Service Plan appears to be financially feasible,and is prepared in accordance with the Weld County
Code. He further stated the maximum mill levy of 65 mills, and the maximum debt service of
15 mills, are consistent with the Weld County Code. Mr. Ogle stated fifteen referral agencies
reviewed the case,and written comments were not received from five of the agencies. In response
to Chair Geile, Mr. Ogle clarified the on-site improvements will total approximately $18 million;
however, approximately $8.2 million of the improvements will be financed by the District.
Responding to Chair Geile,Mr. Barker stated once the bonds are paid in full,the District will continue
to provide maintenance. He further stated at a meeting on August 3, 2006,the applicants created
a plan which will provide for changes to the Service Plan stating that the District is responsible for
the operation and maintenance of the roads and a majority of the improvements within the District.
He stated the operation mill levy will continue after the financing bonds are paid in full. Further
responding to Chair Geile, Mr. Barker stated once the bonds are paid in full, the District does not
dissolve as long as it is providing services and facilities. In response to Chair Geile, Mr.Ogle stated
the proposed use is residential, and no commercial or industrial uses are proposed. Responding
to Commissioner Jerke, Mr. Ogle stated the mill levy will be set at 50 mills for debt services, and
at 15 mills for maintenance. Commissioner Jerke questioned why the applicant will utilize the
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maximum mill levy since the District is only financing a portion of the improvements. In response
to Commissioner Jerke, Mr. Warden clarified the District will only finance $8.2 million worth of
improvements, and the developer will provide the rest of the needed funds for improvements.
Paul Cockrel, Collins, Cockrel, and Cole, PC, represented the applicant and stated Longs Peak
Investors, LLC, is the developer of the property. He stated the District will not be used to finance
all of infrastructure costs, bonds will be issued to cover approximately$8 million of the project costs,
and the Developer will be responsible for payments in excess of that amount. He stated the Service
Plan limits the debt capacity to$12 million, and the District has a projected debt service mill levy of
35 mills; however, it is permitted to have a mill levy up to 50 mills. He further stated the District will
have an operation and maintenance mill levy of approximately five to eight mills,therefore,the total
mill levy will be approximately 40 to 45 mills, which is a low range of property taxes for urban
districts within the County and areas to the south of the County. Mr. Cockrel stated Exhibit C-1 of
the Service Plan illustrates the responsibilities for operation, maintenance, construction, and
financing of the proposed facilities. He stated the District will be primarily responsible for all
construction and financing of the facilities, and will operate and maintain the streets and drainage
on a long-term basis. He further stated the water service and sewer services within the District will
be provided by the Longs Peak Water District and the Saint Vrain Sanitation District, respectively,
and neither District has stated any objections to the creation of the Metropolitan District. He stated
an Intergovernmental Agreement will be completed with both Districts,and the Districts will provide
services after the service lines have been constructed.
Mr. Cockrel stated there is sufficient capacity to amortize or capitalize the cost of seal coating and
resurfacing the roadways on a five to fifteen year basis, and the roads will be constructed to the
standards set forth by the Department of Public Works. He stated the cost to maintain the roads
will be approximately $120,000.00 per year, and the mill levy of five to eight mills will allow the
District to fully fund the associated costs. He further stated the funds will be set aside in a Capital
Repair and Replacement Reserve,and the property owners will not need to maintain the roads. He
further stated the County may take over the roads at some point in the future, and the District will
dissolve once the debt is paid off, and it has no service responsibilities. Mr. Cockrel stated he
understands at this point it is not County policy to accept the roads,and the Service Plan is flexible
to accommodate the wishes of the County. In response to Chair Geile, Mr.Cockrel clarified that the
County has no responsibility for the roads within the District unless the County wishes to assume
responsibility. Further responding to Chair Geile, Mr. Cockrel stated as valuation increases within
the District, the mill levy may be decreased. He further stated it will not be necessary for the
Homeowners'Association(HOA)to perform the typical functions of maintenance in regards to open
space,etcetera. He stated the HOA may be responsible for the operation of the swimming pool and
community recreation center, and the fees will be minimal.
Mr. Cockrel stated the service plan is in full compliance with the Special District Regulations, and
no comments regarding non-compliance have been received. He stated the Maintenance Matrix,
Exhibit C-1 of the Service Plan, proves who is responsible for the various activities of the District,
and clarified that the Service Plan contains a revised boundary map,which now excludes the Kiteley
homestead. He further stated the record contains letters between service providers, and it is the
intent of the District to enter into Intergovernmental Agreements with both service providers. In
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intent of the District to enter into Intergovernmental Agreements with both service providers. In
response to Chair Geile, Mr. Cockrel stated both the Saint Vrain Water Sanitation District and the
Longs Peak Water District will assume all responsibility for future operations and maintenance of
the respective systems, and the homeowners will pay uniform rate fees, with no surcharge. He
stated a generic objection was received from the City of Longmont,and no objections were received
from other municipalities. Mr. Cockrel clarified that the District will fund only a portion of the cost
of development, and the total mill levy will equate to approximately$100.00 per month; however,
Districts north of Denver have a total mill levy of approximately$130.00 to$140.00 per month. He
stated the Service Plan is responsible,the District has the financial ability to operate,and the District
is in full compliance with County regulations. In response to Chair Geile, Mr. Cockrel clarified the
total mill levy of 125 mills would equate to a cost of approximately $100.00 per month for
homeowners. He stated he is not aware if a Metropolitan District exists within the Town of Mead,
and the total mill levy is within the low range compared to other Metropolitan Districts north of
Denver. He stated Vista Ridge Metropolitan District has a total mill levy of 149 mills, Erie Commons
Metropolitan District has a total mill levy of 138 mills,and MacKay Landing Metropolitan District has
a total mill levy of 141 mills.
In response to Chair Geile,Mr.Cockrel stated if the District were annexed to the Town of Mead, the
Town would assume the responsibility for maintaining the roads, the District operating mill levy
would decrease, and only the debt service mill levy would remain in place. He further stated no
prohibition exists under State law regarding annexation of Special Districts,and many Districts have
been created within municipalities. He stated no liability is assumed by a municipality to annex a
District, since the debt remains in place and is not transferred to the municipality. In response to
Chair Geile, Mr. Cockrel stated it is disclosed to potential purchasers that the property is located
within a Metropolitan District,as it is required by law. He stated the District can be competitive, and
if the mill levy is too high, less will be financed through the District. He stated the developer is
ultimately responsible for all infrastructure costs,the bonding company has indicated the financial
plan is financially feasible, and interest rates have been taken into consideration.
Jerry Eckleberger, Longs Peak Investors, LLC, stated the mill levy does not place a competitive
disadvantage on the District. He stated the District will only finance approximately$6 million worth
of infrastructure in order to be fair to, and competitive with, the consumer. He further stated staff
is pleased with how operations and maintenance will be handled, and the roads within the District
will be seal coated every five years,and will be replaced every fifteen years. Mr. Eckleberger stated
a$2,000.00 County impact fee exists per home,which is paid for by the consumer,and a$7,800.00
impact fee per home exists within the Town of Mead. He stated the District is able to perform
maintenance,snow removal,street cleaning, and repair of roadways,etcetera. He stated the total
mill levy does account for the seven mills to be utilized by the Law Enforcement Authority. In
response to Chair Geile, Mr. Eckleberger stated the Service Plan requires the District to complete
the necessary maintenance, and the Board of Directors has a fiduciary duty. He further stated the
District will have responsibility of the pool to ensure maintenance is performed,and the HOAwill not
have a large amount of financial responsibility. Further responding to Chair Geile,Mr. Eckleberger
stated if the District is not competitive, it will not be able to sell homes.
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No public testimony was offered concerning this matter.
Mr. Barker stated no conditions have been set forth within the Resolution,and all requirements set
forth by State statute have been included. In response to Chair Geile, Mr. Barker stated approving
the Resolution indicates approval of the Service Plan.
Commissioner Jerke moved to approve the Service Plan for Kiteley Ranch Metropolitan District,
based on the recommendations of Planning staff and the Planning Commission. He stated a
reasonable degree of safety exists, and he is pleased that the applicant will invest a significant
portion of funds for infrastructure. The motion was seconded by Commissioner Long. In response
to Chair Geile,Mr. Barker stated the District may now proceed to District Court. Further responding
to Chair Geile, Mr. Cockrel stated Mr. Kiteley has presented a written letter, giving the developer
permission to proceed. He further stated in order to establish standing at the District Court level,
a petition is submitted by at least 30 percent of the electors of the District, and a hearing is held
before the District Court Judge. In response to Chair Geile, Mr. Cockrel stated the Town of Mead
has not established standing; however, the City of Longmont may be an interested party at the
District Court hearing, since a letter was submitted. He further stated no other municipalities may
establish standing, since no objections were received. In response to Commissioner Jerke, Mr.
Cockrel stated the District Court proceeding focuses on property owners,and whether the District
is desired by the property owners. He further stated that if a municipality or service provider wished
to form an objection, it should be stated before the Board of County Commissioners. Chair Geile
stated none of the surrounding municipalities attended the hearing today;therefore,they are not able
to establish standing. Chair Geile stated he had concerns regarding potential annexation to the
Town of Mead during the Change of Zone process; however,other jurisdictions have the potential
to seek annexation of the District in the future, and he supports the motion. There being no further
discussion, the motion carried unanimously. The hearing was completed at 10:10 a.m.
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This Certification was approved on the 6th day of September 2006.
��..` APPROVED:
�, �'' "'-',\ BOARD OF COUNTY COMMISSIONERS
"di WELD COU , COLORADO
ATTEST: „"H GIs, �ii(%.,.-4 `)
Ali w* ,I M. J. ile, Chair
Weld County Clerk to the`-,`` ��
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BY. )2/K,11 `�° €0.. David E. Long, Pro-Tem
ty Clerk the Board
W . m Jerke TAPE #2006-32 W. w11 .
Robert . Masde
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Glenn Vaad _ ...
2006-2573
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EXHIBIT INVENTORY CONTROL SHEET
Case SD0129 - KITELEY RANCH METROPOLITAN DISTRICT
Exhibit Submitted By Exhibit Description
A. Planning Staff Inventory of Items Submitted
B. Planning Commission Resolution of Recommendation
C. Planning Commission Summary of Hearing (Minutes 08/15/2006)
D. Clerk to the Board Notice of Hearing
E. John Folsom E-mail re: Kiteley approval dated 08/19/06
F. Bernard Lyons Gaddis and Kahn Letter re: Condition No 7, dated 08/17/06
G. Applicant Letter re: Authorization for Representation
dated 08/14/2006
H. Bernard Lyons Gaddis and Kahn E-mail re: Removal of Condition dated
08/29/06
Applicant Final Service Plan (duplicate of Original -
removed from file)
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