HomeMy WebLinkAbout20062281 RECORD OF PROCEEDINGS
MINUTES
BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORADO
AUGUST 21, 2006
TAPE #2006-31
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 Centennial
Center, Greeley, Colorado, August 21, 2006, 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 M. J. Geile, Chair
Commissioner David E. Long, Pro-Tem
Commissioner William H. Jerke
Commissioner Robert D. Masden
Commissioner Glenn Vaad - EXCUSED
Also present:
County Attorney, Bruce T. Barker
Acting Clerk to the Board, Elizabeth Strong
Director of Finance and Administration, Donald D. Warden
MINUTES: Commissioner Long moved to approve the minutes of the Board of County Commissioners
meeting of August 16, 2006, as printed. Commissioner Masden seconded the motion, and it carried
unanimously.
AMENDMENTS TO AGENDA: There were no amendments to the agenda.
PUBLIC INPUT: No public input was given.
CONSENT AGENDA: Commissioner Masden moved to approve the consent agenda as printed.
Commissioner Long seconded the motion, and it carried unanimously.
COMMISSIONER COORDINATOR REPORTS: There were no Commissioner Coordinator Reports.
WARRANTS: Donald Warden, Director of Finance and Administration, presented the following warrants
for approval by the Board:
All Funds $489,798.69
CommissionerJerke moved to approve the warrants as presented by Mr.Warden. Commissioner Masden
seconded the motion, which carried unanimously.
2006-2281
BC0016
OLD BUSINESS:
CONSIDER PETITION FOR ABATEMENT OR REFUND OF TAXES-ELMORE, ELMORE,AND SPELTS
PROPERTIES, LLC (CON'T FROM 08/07/06): Mike Sampson, Assessor's Office, presented the
Assessor's Value Report completed in June, and a second Appraisal Report for the vacant lot to the east
of the truck stop in a packet marked Exhibit A. He stated the petitioner had combined the two lots for their
presentation; however,the Departmentworked the two lots separately because each lot has its own parcel
number. He stated the Assessor's Value Report includes facts regarding the convenience store, such as
where it is located, when it was constructed, how much of the property's square footage is the restaurant
versus the convenience store, the square footage of the improvements, value indications of the land, a
map of the location from the internet, and photographs of the property. He stated the Cost Approach is
the first presentation in the packet and the land value was determined using sales from the 2001-2002
market. He stated sales comparables #1 and #3 are located in the immediate area of the petitioner's
property. He further stated comparable #3 is located directly across the street from the petitioner's
property and was, in fact, sold from Elmore, Elmore, and Spelts to the McDonald's Corporation for$8.20
per square foot in 2002. Mr. Sampson stated comparable#1 sold for$10.10 per square foot in 2000, and
comparable#2 is located at a similar major intersection and sold for $7.56 per square foot in 2001. He
stated sales comparable#3 is the one that holds the most weight because it is located directly across from
the petitioner's property and was sold by the petitioner in 2002. He stated the Cost Approach is the next
presentation in the packet and shows the 160,499 square feet of land being valued at$8.00 per square
foot which equals$1,283,992.00. He further stated under the Cost Approach, the convenience store was
valued at$266,564.00 and the restaurant at$541,207.00 for an improvement value of$807,771.00 and
a total property value of$2,091,763.00. Mr. Sampson stated the Market Approach is covered next in the
packet, and the first comparable value listed under this approach is for a convenience store located in
Greeley, with no restaurant, which sold for$474.00 per square foot, a total sales cost of$1,700,000.00,
whereas the subject property is currently valued at$250.00 per square foot. He stated comparable#2 is
a truck stop in Evans and staff included this because it was included in the tax dispute previously; however,
the Department does not consider the sale to be comparable. He further stated on the surface it may
appear to be the most comparable example because it is a restaurant with a truck stop; however, the
location is not comparable. He stated comparable#2 was sold from a bank to the current owner and had
been closed and unused for a period of three to four months prior to the sale. Mr. Sampson stated the
convenience store at State Highway 119 and 1-25, comparable#3, is a confirmed sale for a convenience
store and is comparable in size and location to the subject property. He stated comparable#3 sold in 2001
for 1.3 million; however, it was adjusted down to$1,050,000.00 due to$250,000.00 of confirmed personal
property, which came out to an adjusted sales price of $291.67 per square foot. He stated the Market
Approach indicated a value of$1,914,250.00. He stated the most comparable sale is comparable#3 due
to similar location and land size as the subject property; however, an adjustment was made to reflect the
superior location of comparable #3 from $291.67 per square foot to $250.00 per square foot for the
petitioner's property,which is a total value of$1,914,250.00. Mr. Sampson stated next in the packet is the
Income Approach. He stated when the petitioner initially appealed, the only value which was given for the
property's income was the restaurant's income which is not accepted appraisal practice; therefore, the
assessors office estimated annual revenues for the entire property's income. He further stated annual
revenues were estimated using information from confidential sources to determine the subject property's
income and these figures included the convenience store income, including fuel sales, in the amount of
$7,505,550.00,gross sales in the amount of roughly 8.5 million, and staff subtracted the total cost of goods
in the amount of$6.934,034.00 for a gross margin of sales in the amount of$1,621,569.00. Mr. Sampson
stated staff then ran operating expenses against the convenience store and the restaurant and figured the
total amount for operating expenses as $1,468,190.00, and staff estimated other income in the amount
of$82,127.00 due to a large sign posted on the property that advertisers lease. He stated the net income
was determined by staff to be$241,428.00 based off of gross sales in the amount of$8,555,603.00, using
a total capitalization rate of 13.5 percent. He stated the total property value using the Income Approach
is $1,788,355.00, which figures out to be $233.56 per square foot. He stated a final reconciliation value
Minutes, August 21, 2006 2006-2281
Page 2 BC0016
of$1,826,451.00 was determined. Mr. Sampson stated the Cost Approach was considered to examine
the land value even though the determination was high, the Market Approach weighs heavily toward the
land value because it is the easiest value to prove, and the problem with the Income Approach is unless
the direct fuel sales are obtained, it is difficult to complete, however, the Department feels this was a
reasonable Income Approach due to removing the cost of goods from the gross sales, and it was a viable
approach to demonstrate the land alone is worth 1.2 million on this property. He stated the addendum
is next in the packet and it is worth attention because it reflects the reconciled values including the total
reconciled property value of$1,826,451.00, whereas previous data represented actual costs. He stated
the land represents most of the property value, a value of$179,011.00 for the convenience store, and a
value of$363,448.00 for the restaurant. He stated the value on the convenience store and restaurant,with
improvements, is$70.00 per square foot. He stated other information in the addendum includes additional
land sales to demonstrate the piece of property directly west of McDonald's recently sold for $7.76 per
square foot and there are no utilities on that property. He stated the other sales listed are large parcels
near the subject property that sold for$3.30 per square foot to$4.00 per square foot. Mr. Sampson stated
in late 2004 there was a permit pulled for $108,000.00 worth of remodeling to be done on the subject
property, therefore, staff feels the determinations on the buildings were very fair. He stated the second
parcel is located directly east of the first parcel and the petitioner is asking that value of$488,000.00 not
be considered in the tax determination. He stated the parcel needs to be worked separately as it has a
separate parcel number and a different legal address. He stated in the restaurant lease agreement, there
are provisions that if the lot is sold, income adjustments will be made because it will affect the restaurant's
business. He stated due to the ingress/egress issues, and because a road will need to be constructed
and utilities installed, staff adjusted the value 40 percent for limited access, which brought the cost down
to $4.80 per square foot for this parcel.
Greg Evans, Bridge and Associates, stated it was noted in the appraiser's report that the
distressed sales in Evans, comparable#2, contained a $400,000.00 upward adjustment in the reported
sales price for landscaping and there is no landscaping on this site. He further stated most of the
petitioner's parcel consists of bare pavement and part of the second parcel is not even paved,there is only
dirt. He stated the amount added into the value for landscaping on comparable#2 more than makes up
for the amount lost due to being a distressed sale, therefore, the sale can be used as a reliable
comparison, and furthermore, it was the only truck stop sale in Colorado in ten years. He stated
comparable#3 had an adjusted value of $250.00 per square foot, and at the conclusion of the Market
Approach, the square footage of the entire building was figured at the convenience store/truck stop rate,
which skews the restaurant's value by a million dollars and creates a value over 1.2 million dollars for the
5,000 square-foot restaurant, which values the restaurant higher than the land value. Mr. Evans stated
the highest and best use of this site is no longer a truck stop and that another development should be on
the property, however, right now the income of the property is roughly half of what was determined by the
Assessor's Office;the property's gross income is$4.5 million, rather than$8.5 million, as was speculated.
He stated this is a situation where the land is worth more than the existing business on it. He stated the
Income Approach takes into consideration the value of the businesses and no adjustment was made to
account for the value of the ongoing concern, the restaurant was sold for$150,000.00 and the lease was
assumed. He further stated another adjustment should have occurred to reflect the change. He stated
sales comparables for similar restaurants indicate a value of$300,000 for this space and convenience
store comparables indicate a value of about$250.00 per square-foot. He further stated he concurs with
the Assessor's value of$250.00 per square foot for the 2,600 square-foot convenience store; however,
when that rate is applied to the restaurant, it skews the evaluation by more than a million dollars.
Mr. Evans stated the Board of County Commissioners understood the grievance two years ago and
adjusted the value to one million dollars, for a combined value of 1.5 million for the entire truck stop and
additional parking. He stated the additional parcel is used for truck parking to support the sale of diesel
and the restaurant, and without the land, the truck stop nature of the establishment would be lost. He
stated there is currently an easement which allows access to the second parcel and the easement renews
in eight months, at which time the parcel will become landlocked if the easement is not renewed. He stated
Minutes, August 21, 2006 2006-2281
Page 3 BC0016
that although the McDonald's land was purchased at $8.00 per square foot, the petitioner's large parcel
of land is not all worth $8.00 per square foot. He stated developments that have been discussed for this
parcel are hotel sites, and the developers have been paying around four dollars per square foot. He stated
according to the assessor's evaluation the land alone is worth 1.2 million dollars, however, according to
the actual income and expenses generated on the restaurant portion, there is an indicated value of
$330,000.00. He stated the lease has been reduced$1000.00 per month since the base period, however,
using the base period income and expenses of the restaurant, the indicated value is $ 325,000.00.
Mr. Evans stated the Board valued the property correctly two years ago and nothing has changed in the
last two years in the petition's favor since then, the restaurant is making less and the cost of gasoline has
increased creating lower profit margins. In response to Chair Geile, Mr. Evans stated the value period is
June 30, 2004.
Mr. Sampson stated the Evans sale is not the kind considered by an appraiser even though it
appears comparable on the surface because of similar use. He stated on Market Approach#2, provided
by Mr. Evans,there are four comparable sales listed in the Denver metropolitan area,which has no bearing
on this property value; however,two comparables are in Weld County and the Assessor's office does feel
these sales are relevant. He further stated that Mr. Evans offers no explanations, adjustments, or
summaries to back up the data in the Market Approach he presented to the Board. He stated the
restaurant sales that Mr. Evans presented in his Market Approach are of little use because it does not
represent the entire income generated. In response to Chair Geile, Mr. Sampson stated the Department
has not seen the actual financial statements of the petitioner, however, it has come up with estimations
using criteria established for the Income Approach. Mr. Sampson stated the effective value, as a whole,
is fair in comparison with prices in the area. Commissioner Jerke stated both parties make valid points.
He stated this is a case of an older property not realizing the highest and best use for the parcel and real
estate values for raw land are outpacing the older business's ability to generate income. He further stated
that Colorado's 29 percent rate brings in applicants with problems with assessments, and rates closer to
residential rates would bring in fewer of these type of petitions. Commissioner Jerke stated the Board
valued the property at one million dollars in recent years, and Mr. Sampson stated that the 1.3 million dollar
value on comparable# 3 was the best comparable sale; therefore, he would support an adjustment in
direction of the 1.3 million dollar comparable sale. Chair Geile concurred with Commissioner Jerke's
remarks; however, he believes the land values established by the assessor are reasonable, and Evans'
land is not comparable to the petitioner's land. He further stated the Income Approach's 13.5 percent cap
rate was extremely generous and he agrees with the assessor's value. Commissioner Jerke stated the
value is accurate in respect to land values; however, it is difficult to make a living with an old building and
the business will likely be pushed out in time. Chair Geile concurred with Commissioner Jerke; however,
he stated he did see a basis for an adjustment, considering the information provided by the Assessor's
Office. Commissioner Masden stated there are a lot of variables and the Assessor's office had a difficult
job. He stated the petitioner's property is prime real estate, and this is an old facility; however, the
petitioner did acquire a building permit to complete over $108,000.00 of remodeling. Commissioner
Masden stated the assessor did a good job coming up with data for the Board to work with, and he moved
to deny said petition, based on staffs recommendation. Seconded by Commissioner Long, the motion
carried 3-1.
NEW BUSINESS:
CONSIDER PETITION FOR ABATEMENT OR REFUND OF TAXES-MIKE BURNS: Mr. Sampson stated
the property is a commercial condominium in the Windsor Industrial Park and primarily consists of finished
office space. He stated the Assessor's office is recommending the value be lowered to$170,030.00 which
is equal to$70.00 per square foot. He stated the petitioner is requesting$138,0000,which is roughly what
was paid for the property prior to being finished, and staff has an equitability issue with the request. He
stated the value of each unit has been determined to be$70.00 per square foot,therefore,the Department
is requesting the petition be approved, in part, at the rate of$70.00 per square foot. He stated using an
8.5 percent cap rate, which is normal in the area, the value would be $171,000.00, therefore, the rate of
Minutes, August 21, 2006 2006-2281
Page 4 BC0016
$70.00 per square foot seems fair. Mr. Sampson read several comparable sales rates. No representative
of Mike Burns was present. Commissioner Jerke moved to approve said petition based on staff's
recommendation. Seconded by Commissioner Long, the motion carried unanimously.
CONSIDER AGREEMENT CONCERNING RADIOLOGY SERVICES AND AUTHORIZE CHAIR TO SIGN-
BANNER HEALTH, DBA NORTH COLORADO MEDICAL CENTER: Dr. Mark Wallace, Director of the
Department of Public Health and Environment, stated the agreement is between Banner and Weld County
for the technical component of radiology services of actually performing the x-rays for the Tuberculosis
Control Program, the Board approved the previous agreement with Diversified Radiology for the
professional component of reading the x-rays. He stated the rate will be $33.00 per"two-view''x-ray and
the term of the agreement will be June19, 2006 through August 3, 2007. Commissioner Long moved to
approve said agreement. Seconded by Commissioner Masden, the motion carried unanimously.
CONSIDER TASK ORDER OPTION TO RENEW LETTER #3 FOR THE COLORADO PHYSICAL
ACTIVITY AND NUTRITION PROGRAM AND AUTHORIZE CHAIR TO SIGN: Dr.Wallace stated the task
order is for the Steps to a Healthier Weld Program, a part of the Steps to a Healthier Colorado Program,
which is a part of the Steps to a Healthier United States Program which was started by President Bush.
He stated this it the fourth year of the program and it is designed to look at obesity, asthma, and diabetes.
He stated the program has been successful and the Department would like to continue with the contract
renewal. He stated the Department would receive an amount not to exceed$483,227.00 for a term from
September 22, 2006, through September 21, 2007, which originates as federal funding. He stated the
Department is currently embarking on two large programs, the Weld Walks Program and the Weld City
Award Program. Commissioner Long moved to approve said task order. Seconded by Commissioner
Masden, the motion carried unanimously.
CONSIDER TASK ORDER FOR HEALTH DISPARITIES PROGRAM AND AUTHORIZE CHAIR TO SIGN:
Dr. Wallace stated a new grant program, created through the tax on cigarettes is designed to look at early
detection treatment of cancer, cardiovascular, and pulmonary disease, and components of the program
are authorized to look at the disparities in both disease prevalence and outcomes in minority groups. He
stated the Departmentwas asked to apply programming directed at diabetes, in particular. He stated Weld
County has an estimated 6,000 cases of diabetes in our minority population compared to the caucasian
population, which amounts to an 80 million dollar per year cost to care for the individuals with advanced
disease. He stated the program is designed to actively screen for, and detect diabetes early in the
Hispanic population and assisting with case management services. He stated the Department will receive
$160,313.00 for a term of September 1, 2006 through June 30, 2007, and a diabetes specialist and a
diabetes health educator will be brought into the community. CommissionerJerke suggested baseline data
be documented when programs start to have a sense of measurement for program success. Dr. Wallace
concurred the effectiveness outcomes should be tracked and stated, however, most grants are short lived
which makes it difficult to track progress. He stated this program is directed at teaching individuals to self
manage disease and take responsibility for behaviors that increase disease risk. The Board unanimously
concurred to pass the motion.
CONSIDER REPLACEMENT TASK ORDER FOR MATERNAL AND CHILD HEALTH PROGRAM AND
HEALTH CARE PROGRAM FOR CHILDREN WITH SPECIAL NEEDS AND AUTHORIZE CHAIR TO
SIGN: Dr. Wallace stated the task order was approved previously, however, some changes occurred in
the way in which data must be recorded into a statewide database and some other reporting requirements
have changed, therefore, the State chose to reissue the task order. He stated there are no changes in
funding, the Department would not receive more than$334,334.00 for both programs through September
30, 2006. He stated 68 percent are federal funds and 32 percent are state funds. Commissioner Masden
moved to approve said replacement task order. Seconded by Commissioner Jerke, the motion carried
unanimously.
Minutes, August 21, 2006 2006-2281
Page 5 BC0016
CONSIDER INSTALLATION OF TRAFFIC CONTROL DEVICES ON WCR 76 BETWEEN WCR 13 AND
STATE HIGHWAY 257: Frank Hempen, Jr., Director of the Department of Public Works, stated this item
is an attempt to normalize speed limits across the two-mile section of roadway, and based on an inquiry
analysis of existing speed limits performed on traffic count and classification, itwas noted there are various
speed limits along this section of road. He stated the 85th percentile was 44 Miles Per Hour; therefore,
staff recommends a 40 Mile Per Hour speed limit, and the Town of Windsor Engineer concurs.
Commissioner Long moved to approve said installation. Seconded by Commissiner Masden, the motion
carried unanimously.
CONSIDER RESOLUTION RE: AUTHORIZATION FOR WELD COUNTY TREASURER TO CANCEL
CERTAIN PERSONAL PROPERTY TAXES: Mr. Warden stated the Treasurer's Office has determined
various 1998-2005 taxes are uncollectable, for reasons including the equipment is no longer there,
businesses are no longer there, bankruptcies, and for mobile homes that cannot be relocated. The total
amount staff is asking the Board to cancel is $257,753.09. Commissioner Jerke moved to approve said
Resolution. Seconded by Commissioner Masden, the motion carried unanimously.
CONSIDER INTERGOVERNMENTAL CONTRACT FOR INTENSIVE SUPERVISION PROGRAM
SERVICES AND AUTHORIZE CHAIR TO SIGN: Mr. Warden stated Serena Dodder, Administrative
Coordinator for the Weld County Community Corrections Board, was unable to attend today; therefore,
he would present the item. He stated this is for intensive supervision services and serves 75-100 clients,
and the initial contract is for $80,370 per year. He stated these clients require more demanding
supervision control than is usual, and the contract has been in place for five years. Chair Geile noted this
is the second time that Ms. Dodder is unable to be present when she has an item of business to present
to the Board, therefore, Commissioner Jerke moved to continue said contract to August 28,2006 at 9:00
a.m., when she can be present. Seconded by Commissioner Masden, the motion carried unanimously.
CONSIDER APPOINTMENTS TO NOXIOUS WEED MANAGEMENT ADVISORY BOARD: Commissioner
Jerke moved to appoint Robert Sencenbaugh and Doug Printz to replace Cynthia Telep Turner and
Cynthia Lair, and to reappoint Scott Houston to the Noxious Weed Management Advisory Board.
Seconded by Commissioner Long, the motion carried unanimously.
PLANNING:
CONSIDER IMPROVEMENTS AGREEMENT ACCORDING TO POLICY REGARDING COLLATERAL
FOR IMPROVEMENTS (PRIVATE ROAD MAINTENANCE), AUTHORIZE CHAIR TO SIGN, AND
ACCEPT COLLATERAL FOR SITE PLAN REVIEW, SPR #397 - ZEEK PARTNERSHIP, LLLP: Brad
Mueller, Department of Planning Services, stated the Department received a Letter of Credit for the
Improvements Agreement in the amount of$196,817.50 and staff recommends approval. Commissioner
Long moved to approve said agreement. Seconded by Commissioner Masden, the motion carried
unanimously.
RESOLUTIONS AND ORDINANCES: The resolutions were presented and signed as listed on the consent
agenda. No Ordinances were approved.
Let the minutes reflect that the above and foregoing actions were attested to and respectfully submitted
by the Acting Clerk to the Board.
Minutes, August 21, 2006 2006-2281
Page 6 BC0016
There being no further business, this meeting was adjourned at 10:05 a.m.
BOARD OF COUNTY COMMISSIONERS
�/ _�� ��� 1-' % WELD C. NTY, COLORADO
ATTEST: �6E'na4 iiii ./f, ���� i . ..
1" rY eile, Chair
Weld County Clerk to the Boar. Sr ?Y • ( ri
C
stor
, '��� Davi E. Long, Pro-Tern
BY: {�� 4 L V2 �...r .
Depu Clerk tc-the Board �:. 1i
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m H. Jerke
Robert D. Masden
EXCUSED
Glenn Vaad
Minutes, August 21, 2006 2006-2281
Page 7 BC0016
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