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Home My WebLink About20020179 HEARING CERTIFICATION DOCKET NO. 2002-08 RE: SITE SPECIFIC DEVELOPMENT PLAN AND USE BY SPECIAL REVIEW PERMIT#1339 FOR A USE BY RIGHT, AN ACCESSORY USE, AND A USE BY SPECIAL REVIEW IN THE INDUSTRIAL ZONE DISTRICT (POWER GENERATION FACILITY) IN THE A (AGRICULTURAL) ZONE DISTRICT - ROCKY MOUNTAIN ENERGY CENTER, LLC (CALPINE) A public hearing was conducted on February 6, 2002, at 10:00 a.m., with the following present: Commissioner Glenn Vaad, Chair Commissioner David D. Long, Pro-Tern Commissioner M. J. Geile Commissioner William H. Jerke Commissioner Robert D. Masden Also present: Acting Clerk to the Board, Esther Gesick Assistant County Attorney, Lee Morrison Planning Department representative, Monica Mika Health Department representative, Pam Smith Public Works representative, Don Carroll The following business was transacted: I hereby certify that pursuant to a notice dated January 18, 2002, and duly published January 23, 2002, in the Tri-Town Farmer and Miner and Greeley Tribune, a public hearing was conducted to consider the request of Rocky Mountain Energy Center, LLC (Calpine) for a Site Specific Development Plan and Use by Special Review Permit#1339 for a Use by Right, an Accessory Use, and a Use by Special Review in the Industrial Zone District(power generation facility, including two heat recovery steam generator/combustion turbine generator exhaust stacks approximately 175 feet in height, one auxiliary boiler stack approximately 120 feet in height, and two heat recovery steam generators the dimensions of each being approximately 90 feet tall by 150 feet long by 40 feet wide, a 107-acre Well Field site, an approximately 8-mile long Gas Pipeline and an approximately 22-mile water pipeline and Agricultural Use by Right in the A (Agricultural) Zone District. Lee Morrison, Assistant County Attorney, made this a matter of record. Commissioner Geile disclosed that he retired in 1994 with a severance package and he is on the retirement roles for the Public Service Company. Mr. Morrison stated he does not feel this represents a conflict of interest. Commissioner Jerke stated he is a stock holder on the Western Ditch Company, which does have contingent contracts with the applicant. Mr. Morrison clarified Commissioner Jerke holds one-half interest in the shares which are split with his brother,therefore, he does not feel this represents a conflict of interest. Monica Mika, 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. She stated the proposal consists of a power plant, in addition to separate well field and gas sites. Ms. Mika displayed the location of the primary facility and reviewed the proposed facilities for the site. She stated the overall property boundary is contiguous with the Town of Hudson's industrial center M ,VZ /91t) PL1582 1 2002- HEARING CERTIFICATION - ROCKY MOUNTAIN ENERGY CENTER, LLC (CALPINE) (USR #1339) PAGE 2 and the 1-76 Frontage Road. She stated the well field site is located 22 miles north of the power generation facility and is accessed from Weld County Roads 50 and 58, and she indicated the location of existing farming facilities at the site. Ms. Mika stated upon review the Planning Commission indicated it concurs with the applicant regarding the proposed location of the water and gas lines. She stated the Town of Kersey responded following the Planning Commission hearing, therefore, the comments of concern were added to the file as Exhibit H. Ms. Mika reviewed the reasons of approval as cited by the Planning Commission in the Resolution of Recommendation, and she stated the Colorado Department of Transportation (CDOT) submitted comments of concern received February 6, 2002, marked Exhibit T. In response to Commissioner Geile, Mr. Morrison stated the Planning Commission discussed the issue of water adequacy. He stated the Commission determined that allowing the applicant to enter into a ten-year water agreement with the City of Aurora would allow the applicant adequate time to establish water service for the remaining 20 years. Ms. Mika stated the Planning Commission also discussed incorporating the entire parcel in the Use by Special Review (USR) Permit to ensure the use for the remainder of the property will not be changed without approval from the County. She stated Development Standard #2 was amended to indicate the farmland area will continue under agricultural uses for the term of the USR Permit. She further stated the application addressed issues concerning wildlife habitat, minerals, historic preservation, etc., and the applicant has also completed a Closure Plan. Ms. Mika stated a Cultural Resource Study was requested due to concern regarding the existence of historical artifacts on the site. Ms. Mika stated Development Standard #4 addresses the availability of water for the life of the permit, and added the applicant still needs to submit the lighting plan prior to occupancy of the facility. Responding to Commissioner Masden, Ms. Mika stated Conditions of Approval #3.K, #3.M and the concerns expressed by CDOT still need to be addressed. In response to Commissioner Geile, Char Davis, Department of Public Health and Environment, stated the package plant will be designed to handle discharge from the property; however, that facility will be designed in cooperation with the Colorado Department of Public Health and Environment. Responding to Commissioner Geile, Frank Hempen, Jr., Director of Public Works, stated staff is requesting Weld County Road 51,from the 1-76 Frontage Road south to the entrance of the power generation facility, be paved to local county road standards. He also requested the applicant install railroad signals at Weld County Road 51 and possibly at the Weld County Road 16 spur, if constructed. Mr. Hempen stated the Department of Public Works is also requesting the applicant use dust suppressant on Weld County Road 51 from the power generation facility south to Highway 52, and on Weld County Road 51 from Highway 34 north to the entrance of the water well site. He stated the applicant will be required to enter into an agreement to build and maintain those activities throughout the life of the permit. Mr. Hempen stated the applicant will also be required to consult with CDOT regarding adequacy of the intersections to accommodate turning movements and adequacy of the 1-76 pavement to handle construction traffic. He further stated the applicant will be responsible for the cost of any improvements required by CDOT. Mr. Hempen stated the letter from CDOT,received this morning,also suggests some intersection improvements at Highway 52 and Weld County Road 51 to improve sight distance and storage of vehicles. Responding to Chair Vaad, Mr. Hempen stated if this proposal is approved, the improvements to Weld County Road 51 should be up to local County road standards. He stated the traffic volume during construction could reach approximately 700 vehicles per day; however, it is estimated that traffic levels following construction will remain at a local road level. He further stated staff is also 2002-0179 PL1582 HEARING CERTIFICATION - ROCKY MOUNTAIN ENERGY CENTER, LLC (CALPINE) (USR #1339) PAGE 3 requesting the railroad crossing signals go through the standard permitting process, existing roads be restored to reasonable conditions, and that the applicant provide evidence that the installations will not interfere with future road development. Bob Pomeroy, attorney, represented the applicant and stated the items used in his presentation have already been incorporated into the file as Exhibits M and N. He stated the applicant successfully completed the items prior to this hearing as required by the Planning Commission and also submitted information which is typically required for a Major Facility of a Public Utility. He clarified the water pipeline was not part of the USR Permit; however, the details have been provided to ensure the Board is aware of the applicant's overall intent. Mr. Pomeroy introduced other members of the consulting team and stated the applicant does have a Power Purchase Agreement from Xcel Energy. He stated 11 power plants are scheduled for completion between 2001 and 2004, three of which have already been completed. He further stated this particular facility is scheduled to be operating by 2004, and he gave a brief description of the power generation process, which is very clean and efficient. Mr. Pomeroy displayed a photograph simulating the location, size, and landscaping proposed for the site, and stated 540 acres of farmland will surround the power generation facility. He also displayed a map indicating the locations of various other Use by Special Review Permits in the area. He stated approval of this proposal will result in electric reliability in Weld County, 25 new jobs, 350 construction-phase jobs, a long-term commitment, major investments, financial contributions to the local communities, and tax benefits. Mr. Pomeroy reviewed the air quality outputs and stated following a study the applicant has determined ground fog will not be a hazard based on the distance from surrounding roadways, use of mist eliminators and propelling the steam higher in the air. He further stated the traffic will travel primarily from the 1-76 Frontage Road south on Weld County Road 51, and traffic will be discouraged from traveling south on Weld County Road 51 to Highway 52, so CDOT's concern regarding that intersection should not be an issue. He also reviewed noise comparisons, and stated the applicant is still working on the details of the Lighting Plan. Mr. Pomeroy stated the traffic will be minimal after the construction period, and the work hours will be staggered to further reduce the traffic load. He stated the applicant agreed to pave Weld County Road 51 from the railroad and Frontage Road to the plant entrance, as well as improve the railroad crossing with lights and gates. He reviewed the landscaping and screening proposal and stated the applicant has also offered to place landscaping on surrounding properties at the neighbor's request. He reiterated the surrounding land will remain in agricultural use, it has been leased to a tenant farmer until 2011, with option to extend to 2021, and the County could control any future use of the remaining land through this permit. Mr. Pomeroy concluded his presentation by reviewing water quality and use. Chair Vaad asked for testimony from members of the audience who could not return following lunch. John Hochmiller,owner of Active Truck Parts and member of the Town of Hudson Chamber,stated he supports this project. Mr. Hochmiller stated it will benefit the community and merchants in the area by supporting the services provided in Weld County and the local area. On behalf of the Hudson Chamber, he stated the Chamber supports the Calpine project because the resource is needed in the area. 2002-0179 PL1582 HEARING CERTIFICATION - ROCKY MOUNTAIN ENERGY CENTER, LLC (CALPINE) (USR #1339) PAGE 4 Jerry Jamison, operator of Tire Mountain, stated he owns 120 acres zoned industrial and he feels this project is good for other industrial uses in this area. Mr. Jamison stated electric energy will continue to be a necessity in the future. Mark Kauffman,surrounding property owner,stated the American Legion Post#180 in Keenesburg supports this project. Mr. Kauffman stated Calpine has been working with the residents and community members throughout the application process and he feels the company will continue to be a good neighbor following approval of this permit. R. Mark Richards, surrounding property owner, stated while he was the operations manager at the Zuni Station in Denver there were no occurrences where vapor caused fog on 1-25 or impacted road conditions. Mr. Richards stated he also worked at the Arapaho Station and did not experience problems with vapor fog. He indicated the proposed facility will incorporate more current technology and the industry will provide for improved schools and he feels it is better than allowing more homes in the area. Donald Babeon, surrounding property owner, stated he supports power plants; however, he questions the location of this facility. He stated the previous speakers live more than ten or fifteen miles away from the proposed site and their support stems from financial reasons. Mr. Babeon read portions of a California newspaper called the Tribune Business News for the record and expressed concern with the applicant making promises which will not be kept. He stated they have made commitments to provide large sums of money to the towns of Hudson and Keenesburg for park improvements, bleachers, new fairgrounds, improved railroad crossings, etc. Responding to Commissioner Geile, Mr. Babeon stated those items were verbally discussed in previous meetings; however, there are no written agreements. In response to Chair Vaad, Mr. Babeon indicated the location of his home. Mr. Morrison also clarified the location Mr. Richards' home, which was indicated in his testimony. Gary Wilcoxon, surrounding property owner, stated he supports this proposal. Tina Shaner, surrounding property owner, stated the proposed location is too close to the Town of Hudson and Highway 52. She expressed concern with fog on the roads which will be hazardous to young drivers on their way to school. Ms. Shaner stated this is a rural area with farming families and the proposed use is not compatible. Pamela Smith, surrounding property owner, questioned whether this property will one day be annexed by the Town and incorporated into the existing industrial park. Ms. Smith stated this project would have been better located in the industrial park and she is opposed to this request. Brian Perry, surrounding property owner, stated he is opposed to this proposal because he spent a lot of time trying to find an ideal location for his home and this will disturb his view of the surrounding area. Mr. Perry stated he lives along Weld County Road 55, which is directly east of the site and is already lined with a large power line. He stated this proposal will create additional lines along Weld County Road 55 because the current lines do not have the capacity to carry additional power. Mr. Perry stated although there is a need for electrical power, he feels there are better locations for this type of facility. He further stated this proposal will impact the area beyond the anticipated life of the facility. Responding to Commissioner Geile, Mr. Perry reiterated that as 2002-0179 PL1582 HEARING CERTIFICATION - ROCKY MOUNTAIN ENERGY CENTER, LLC (CALPINE) (USR#1339) PAGE 5 proposed, the Calpine plant will require separate power lines which are taller and carry larger cables rather than utilizing the existing line. Ron Klaphake, Greeley-Weld Economic Development Action Partnership (EDAP), stated EDAP has not taken a formal position on this issue because two of the Weld County Commissioners sit on that Board. He stated this issue has not been discussed; however, as a staff member he has been working with the applicant and community members throughout the application process. Mr. Klaphake stated the intent of this proposal is consistent with the goals of EDAP and he personally supports the project at this time. Responding to Commissioner Geile, Mr. Klaphake stated he has not done a financial impact study; however, similar projects of the applicant in the past have resulted in a significant impact on taxes and jobs. He further stated the tax impact will be significant; however, the specific amount will still need to be determined by the Weld County Assessor's Office. Judy McGill, surrounding property owner, stated she has lived in Hudson for more than 29 years and she supports this proposal. She stated it will be more beneficial than 500 additional homes in the area. Mike Lane, surrounding property owner, questioned whether the railroad crossing will be adequate to handle the construction traffic. He also expressed concern with the amount of steam generated in close proximity to the roads and community. Mr. Lane questioned whether more lines will be required in light of the fact that Excel no longer supports the local service area. Responding to Chair Vaad, Mr. Lane stated he does not oppose the power plant, but he is opposed to the location. Molly Sommerville, attorney with Wellborne, Sullivan, Meck and Tooley, stated she represents the branches of the RME company which owns all of the hard rock and oil and gas minerals under Section 31. Ms. Sommerville stated there is an existing oil and gas lease with Anacapa and a formal objection has been filed regarding this proposal in an effort to notify the property owner of the mineral interests involved. She stated there is an agreement concerning the hard rock minerals. However, the footprint of the power generation facility affects three drilling sites and the draft agreement with Anacapa still needs to be finalized. Ms. Sommerville requested a Condition of Approval be added to ensure the final executed surface use agreement is submitted prior to recording the plat. She further stated a similar condition was placed on the application of the Public Service Company for the Yosemite Gas Plant, which set a precedent for her current request. Chair Vaad recessed the hearing until 1:30 p.m. Upon reconvening, Bruce Kroeker, TZA Water Engineers Inc., stated a majority of the water is used for cooling the machinery throughout the energy generating process. He stated the applicant has secured a ten-year lease from the City of Aurora, which may be extended by mutual agreement. He further stated the water is discharged into the South Platte River which flows to a location near Kersey. The water is then withdrawn from wells and then pumped south to the project site. Mr. Kroeker clarified the applicant is discussing the use of potable water from the Central Colorado Water Conservancy District, and he reviewed the Water Plan Summary. Mr. Kroeker referred to a letter from the Town of Kersey regarding the effect of the proposed wells on the aquifer. He explained the primary wells will be within 100 feet of the South Platte River and withdrawing water directly from the river, and because the water is supplied by Aurora there will be no effect on the existing water levels. Mr. Kroeker stated the facility cannot operate without water so it is in their best interest to ensure that there is water for 2002-0179 PL1582 HEARING CERTIFICATION - ROCKY MOUNTAIN ENERGY CENTER, LLC (CALPINE) (USR#1339) PAGE 6 the life of the project. Responding to Commissioner Jerke, Mr. Kroeker explained where the water was purchased from and stated Aurora is responsible for identifying the source and types of water and for establishing the exact amount of water used or distributed. He stated because they are moving the water through the river, the City is not required to address this transfer in Water Court. (Switched to Tape#2002-04.)Mr. Kroeker stated Calpine is leasing unused water for$200 per acre foot from the City of Aurora. Responding further to Commissioner Jerke, Mr. Kroeker stated initially the State Engineer's Office expressed concern with users upstream diverting water from the river restricting use for the facility; however, it was resolved that any diverted will be directed back into the river down stream. He explained the applicant has several wells on the bank of the river which will divert 2,000 gallons per minute, per well, during times that the facility is operating. Mr. Kroeker stated there will be augmentation for the backup wells that are not within 100 feet of the river; however, they are still reviewing the location of augmentation. He stated once the water reaches the facility it is treated to address nitrates in the groundwater. In response to Chair Long, Mr. Kroeker stated the wells are approximately 80 to 120 feet deep and the pipeline size is yet to be determined. He stated preliminary plans indicate a 24 to 30-inch pipeline would be adequate, and it would be buried three or four feet deep depending upon site-specific conditions. In response to Commissioner Geile, Mr. Kroeker stated the applicant would prefer to continue using secondary water; however, there is also a plentiful supply of native water if necessary. Responding to Commissioner Masden, Mr. Kroeker stated the treatment facility will be on site, and there is no discharge from the plant site. In response to Chair Vaad, Mr. Kroeker stated the wells are in the South Platte Alluvial Aquifer, not the Box Elder Creek Alluvial Aquifer. He explained the wells must go below bedrock to access the water. Dave Perkins, Director of Calpine Project Development and Project Manager for Rocky Mountain Energy Center, stated the applicant would prefer to purchase easements along the pipeline and pay the adjacent landowners fair market value; however,the applicant does possess a limited right of eminent domain for purposes of a power facility if needed. He stated acquisition of the easements has been going very well, and he stated the design of the pipeline is still being finalized. He stated they intend to place the pipeline on road shoulders or the edge of fields if a road does not exist. Responding to Commissioner Geile, Mr. Perkins reiterated there will be no discharge from the operation; all effluent will be directed to a lined evaporation pond, which eliminates seepage or leaching into the groundwater. He stated stormwater will be captured in a retention pond and released at historical rates into the Boxelder Creek drainage system. Mr. Perkins stated the location for this facility was chosen based on the nearby Xcel Energy injection points along the Green Valley Transmission line. He stated the site also seemed ideal located near a major transportation structure and industrial park. Mr. Perkins reviewed the chronological history of other USR permits and industrial uses in the surrounding area. He stated they chose not to locate within the industrial park because the extra acreage allows for a larger buffer and less impact to the surrounding property owners. He stated the power generation facility will be located on land which is currently pasture land, not cultivated land. He further stated there is an elevation difference of 100 feet between Weld County Road 49 and 51, so the hill will also help shield a portion of the profile of the plant. Mr. Perkins stated Calpine operates 61 facilities with 11,100 megawatts of generating capacity, with the potential for more. He stated they are the largest producer of geothermal energy, and they also own natural gas reserves. Mr. Perkins stated in the past three months, Calpine has raised $5 billion in capital for current projects. He further stated the applicant has identified every property owner within a 12-mile radius of the proposed site and visited most of them to provide information and identify any questions or concerns they might have. He stated 2002-0179 PL1582 HEARING CERTIFICATION - ROCKY MOUNTAIN ENERGY CENTER, LLC (CALPINE) (USR #1339) PAGE 7 those comments were incorporated into the design of the facility to mitigate any concerns. He stated Calpine has offered custom landscaping and screens on adjacent properties, and there will be a custom lighting plan at the facility. Mr. Perkins stated Calpine has committed to the Town of Keenesburg to support the construction of new soccer and athletic fields which will also benefit the RE-3J School District, and there has been discussion regarding sharing the proposed water pipeline. In response to Commissioner Geile, Mr. Perkins stated the company bonds were rated as junk bonds in September; however, in October they were rated as investment grade, and the rating has not impaired their ability to raise funds. Responding further to Commissioner Geile, Mr. Perkins stated given the recent upheaval in energy markets, Calpine has announced plans to defer construction on 30 of its projects; however, they desire to continue development at a slower pace if necessary across the nation. Based on the financial situation, Commissioner Geile questioned whether the applicant will actually commence within the next three years. Mr. Perkins stated this project is different from most Calpine projects because it has a ten-year power purchase agreement with the local utility which will allow for payment of this facility. He stated he does not foresee building additional projects on the property, and if this request is approved, amendments will require approval by the Board. Mr. Perkins stated there is a ten-year lease with a tenant farmer, with an option for renewal. There is also a gas contract with Xcel Energy, which is buying the gas used at the power plant. Responding further to Commissioner Geile, Mr. Perkins stated Calpine will have no ownership in the power line. He further stated this is not a Major Facility of a Public Utility; this is an independent power producer, and the valuation of the plant is based on the construction cost and value of the land. Commissioner Geile commented the applicant should be cautious in estimating the valuation of the property because the Board of Commissioners also sits as the Board of Equalization when considering economic obsolescence. Responding further to Commissioner Geile, Mr. Perkins stated if Calpine does not perform as agreed,Xcel Energy can back out of the purchase agreement,and if there are financial problems, the company can be sold on the free market. He further stated Xcel Energy holds a letter of credit on this project and they also reviewed the company's financial structure. In response to Commissioner Masden, Mr. Perkins stated the Town of Keenesburg has indicated interest in sharing use of the proposed water pipeline because current water delivery options to the town are limited. He stated the applicant is willing to oversize the pipeline to provide for the Town's capacity, and the final details can be discussed further in the event this proposal is approved. He clarified that the Town of Keenesburg would have to purchase its own water rights for transfer through the line. He further stated the applicant has contributed $100,000 to the Town of Hudson, and has also agreed to assist the Town in dealing with the impacts created by this project. Mr. Perkins stated he has no concern with adding a Development Standard regarding the pursuit of an agreement for shared use of the water line. He reviewed various requests from surrounding property owners which resulted in purchasing one property and entering into a contract on another site with a stipulation that the resident can remain and determine whether the proposed facility creates a negative impact before they decide to move. He further stated they have agreed to install a new heating and ventilation system at one home and will relocate several residents during the term of the construction project at their request. Responding further to Commissioner Masden, Mr. Perkins described the location of the power transmission line and clarified Public Service Company is the owner and operator of the transmission line. He stated nitrogen oxides, sulfur dioxide and carbon monoxide will be emitted from the plant; however, when compared to average generators, the amounts are insignificant due to the technology used. He further stated the applicant is required to have a PSD Permit and supply a detailed air model documenting emissions to the 2002-0179 PL1582 HEARING CERTIFICATION - ROCKY MOUNTAIN ENERGY CENTER, LLC (CALPINE) (USR #1339) PAGE 8 Colorado Department of Public Health and Environment. He stated the facility will not be able to operate until the permit is received. In response to Chair Long, Mr. Kroeker stated the secondary wells will be approximately 80 to 100 feet deep accessing the South Platte River Alluvial Aquifer. Responding to Chair Vaad, Gary Arens, Project Engineer, gave a brief description and definition of "steam blowout." He stated the noise will be noticeable, but temporary. Jim Gooding represented the applicant and continued by stating the steam blowing takes a day or two to clean out the pipes; however, they will use large mufflers to help with noise. He also stated "blowdown" is an additional process where the water is cycled through the system and deposited into the evaporation pond. Mr. Perkins stated they are aware of the current slope on the railroad crossing; however, that issue will be addressed when they upgrade the site during paving. Mr. Perkins read a portion of the letter from CDOT, marked Exhibit T, for the record. He stated Weld County Road 49 dead ends at the intersection and traffic volumes are very small. In response to Chair Vaad, Mr. Pomeroy stated the wages will be adequate to support and raise a family in the local area. He further stated Xcel Energy wants this project and the power, and Calpine will be penalized if the project is not completed and in operation in accordance with the terms of the power purchase agreement. He stated there is full financial backing from Xcel Energy so there should be no delays or difficulties in completing the project. Responding to Commissioner Geile, Mr. Pomeroy stated Xcel Energy has a line from the Fort St. Vrain facility to the Green Valley substation; however, they have determined that a second line will be necessary. Rick Thompson, Xcel Energy Services, representing the Public Service Company of Colorado, stated there is a single circuit to the Green Valley Station which is not adequate to carry the addition power, therefore, an additional line is needed which will be located within an existing corridor. Commissioner Geile commented any future lines will require review by the Board of Commissioners. In response to Commissioner Masden, Mr. Pomeroy stated the facility could potentially operate after the anticipated 30-year life span, but they would be willing to create a closure plan when appropriate. Addressing questions from previous public testimony, Mr. Pomeroy stated three of the individuals expressed support of this operation based on their experience and history with this industry in Colorado. He read a portion of a letter from the County of Sutter, marked Exhibit 28, and stated testimony from Mr. Richards found no evidence of fog on the roads from these types of facilities. Mr. Pomeroy stated Highway 52 is more than a mile south of the cooling towers, the concerns of Kersey were addressed by Mr. Kroeker, and they will continue to work with the Department of Public Works and CDOT regarding the design and upgrade of the railroad crossing. He further stated acid is necessary to provide pH control in the water; however, this is common in power plants and the acid ends up being neutralized and in the evaporation pond. Mr. Pomeroy stated there will be an evaporation pond which will contain 96-acre feet and is large enough to cool any warm water coming in so steam is not generated. He explained the evaporation pond will contain a material similar to a brine consistency rather than liquid water. He stated Calpine intends to continue to sell power to Xcel Energy beyond the first ten years, but if they do generate enough to sell to anyone else, they will send the power across existing lines. 2002-0179 PL1582 HEARING CERTIFICATION - ROCKY MOUNTAIN ENERGY CENTER, LLC (CALPINE) (USR#1339) PAGE 9 Chair Vaad called a 10-minute recess. Upon reconvening, Randy Yeager, surrounding property owner, stated he represents more than 400 people who signed a petition opposed to this proposal. He indicated the location of his property and stated not all of the USR Permits indicated on Exhibit M,are industrial. Mr.Yeager displayed a Power Point presentation,and submitted a paper version, marked Exhibit V, which he reviewed for the record. Mr.Yeager questioned the adequacy of water and stated the City of Aurora water has always been in the river, it is not new to the irrigation system. He stated the local farmers have had free use of the water, and the agreement does not restrict them from drawing water even when the river is low. He reviewed Power Point slides titled Land Compatibility, Industrial Development, Health, Safety and General Welfare, Alternate Sites, Financial Strength, Real Estate Values, Community Support, Requests in Event Approved, and Summary. Responding to Commissioner Geile, Mr. Yeager stated the applicant paid $3,700 per acre for the site, and the comparables are based on other sales of similar farmground, homesteads and acreage in the area. He further stated the home sites are more valuable, and are typically valued three times more than the land. Mr. Yeager stated the power plant will decrease the value of home sites in the area, and in response to Commissioner Masden, he stated Calpine did offer to purchase his property; however, he did not discuss the matter further with them because he was representing the interests of so many others. John Lupo,Xcel Energy, stated he is responsible for acquiring adequate long-term power supplies and this project is essential for Colorado's future power supply. He stated Colorado enjoys low power costs and this proposal will help continue that situation. Responding to Commissioner Geile, Mr. Lupo stated Xcel Energy requested 1300 megawatts to come on line between 2001 and 2004, and they have signed contracts with 11 gas-powered energy providers along the front range, as well as two wind and hydro-power providers on the west slope. He stated two came on line in 2001, several will begin in 2002 and 2003, and Calpine should be operating by 2004. He stated all of the facility are gas-fired sites. In response to Chair Vaad, Mr. Lupo stated Tri-State is in the early stages of exploring whether coal is still viable. Responding to Commissioner Geile, Mr. Lupo stated Xcel Energy is not going to do a second Pawnee site. Michael Malecki, Mountain West Regional Carpenters, stated he represents 418 families in Weld County. He stated Weld County is mineral rich and that asset should be taken advantage of; however, his concern with this project is the selection of the primary contract. He stated this facility should be built by residents of Weld County, and it would also provide apprentice opportunity for new trades people. Mr. Malecki stated the proposal will require approximately$69 million related to cost and labor. He stated because this request has not yet been approved, the Board still has the ability to ensure Weld County residents will be selected to do the work. Responding to Commissioner Jerke, Mr. Malecki stated he represents the members of the Mountain West Regional Carpenters, which includes four unions in Weld County. Terry Donaldson, surrounding property owner, stated he supports the proposal and suggested the vapor added to the atmosphere may benefit the agricultural production in the area. Janette Arends,surrounding property owner,questioned why the applicant will require railroad spur if they do not intend to use coal at the facility. Ms. Arends stated she has lived in the area for more than 30 years and witnessed vapors from other facilities drawn down to the creek which passes under 1-76. She stated her husband is also involved in construction and building more homes would bring in more jobs and residents who will contribute to the community. In response to 2002-0179 PL1582 HEARING CERTIFICATION - ROCKY MOUNTAIN ENERGY CENTER, LLC (CALPINE) (USR#1339) PAGE 10 Commissioner Geile, Mr. Morrison stated if the permit is approved, the applicant will not be able to convert the facility to coal without further review by the Board. Ms. Arends also expressed concern with large trucks getting high-centered on the railroad tracks. Julie Blakley, surrounding property owner, clarified the applicant indicated her property as a USR on Exhibit M because it used to be a dairy; however, it is no longer used for that purpose. She stated ambient moisture in the air is not beneficial to alfalfa farming, and she supports preserving farmland when the applicant could have purchased one of the available sites in the industrial center. Ms. Blakely expressed concern with a large industry coming into a small community and visiting with the residents to later use their comments and suggestions against them in the presentation. John Grimes, surrounding property owner, displayed a photograph showing the view from Mr. Yeager's property. He clarified the 88-acre parcel included in the USR application is centrally located in the overall 633-acre property which created a buffer so residents within 500 feet of the overall property were not notified. He displayed photographs of similar proposals and transmission lines throughout the State and stated none of the images show uses which would be consistent or compatible with the existing uses near the proposed site. He stated the power plant is not consistent with the Weld County Code; however, it does not appear the Planning Commission took that matter into account. Mr. Morrison clarified the photographs displayed were also included in Exhibit V, previously submitted by Randy Yeager. Pamela Edens, Realtor, stated area properties have already decreased in value. She reviewed various property values and listing times, promoted by Realtors who are familiar with this type of property. She stated most of the listing prices have been reduced and the listing times extended. Ms. Edens read portions of letters from other Real Estate agents, marked Exhibits X and Y. She stated Xcel Energy relinquished its rights to this area during consideration of the Denver Airport, so the residents are supplied by United Power. She stated her husband works for Xcel Energy, so she has an interest in the company, but in this situation, she does not support this power plant. Jodi Marks, surrounding property owner, stated she is speaking on behalf of her parents who live on Weld County Road 51. She expressed concern with traffic accidents caused by additional traffic and fog, and stated this facility will change the current way of life following additional growth in the area. Ms. Marks stated she has taken the time to attend the hearings held in July, October, November, and this meeting. She stated installation of the power lines on Weld County Road 55 is contingent on approval of this request, and the calculations on the traffic counts are too conservative. She estimated the site will generate 500 trips per day for 14 months, not including employees and deliveries. She stated it will be difficult to enforce use of Weld County Road 51, and she stated more of the roads should be paved with traffic signalization. Ms. Marks stated a lot of time and money has been invested; however, there are still too many issues that remain unresolved given the amount of time the applicant has had to work on them. Jake Grattan, surrounding property owner, read a letter from his daughter, marked Exhibit R. (Switched to Tape#2002-05.) Mr. Grattan stated he and his daughter both worked at the Pawnee Power Plant, so they have some knowledge of the impacts created. He further stated a traffic light is needed at the intersection of Weld County Roads 16 and 51, to ensure safety for the existing residents. 2002-0179 PL1582 HEARING CERTIFICATION - ROCKY MOUNTAIN ENERGY CENTER, LLC (CALPINE) (USR#1339) PAGE 11 Shaaron Parker, surrounding property owner, stated there was a 52-week high for company stock worth $58.04, and a 52-week low of 8.50 as of yesterday. Ms. Parker stated no dividend is paid to the investors, and when the company bonds were classified as junk status, it was noted there was potential for further cuts. She stated the company income has decreased, and Calpine depended on Enron for 23 percent of its revenue for the first nine months of 2001. Calpine has indicated operating income per megawatt hour has fallen 20 percent from 2000 levels. Ms. Parker stated three major credit agencies have been reviewing the company's balance sheets and found debt loads have increased resulting in junk status bonds. She stated Arthur Anderson Company was used as the company auditor, and there is evidence that Calpine has faced difficult financial situations based on past performance. Ms. Parker read portions of various news articles for record, marked Exhibit Z. She questioned the need for a new power plant with the reduction in use, does the company have the resources or will they finish the plant if approved, and will the County benefit from doing business with a company that has a poor financial record. Marvin Wade, Superintendent of Weld RE-3J School District, stated the RE-3J Board of Education passed a Resolution in support of the Rocky Mountain Energy Center because it was felt that this is the kind of business that brings much needed help to our tax rolls, without the negatives that often accompany growth. John Cordes, Town of Keenesburg Mayor, stated the Town had no conflicts with the proposal as indicated in their first referral response. He stated two months later the Town passed a Resolution requesting the Planning Commission recommend approval of this request. Mr. Cordes stated the Town of Keenesburg's water supply comes from wells on the Fox aquifer, and there is not adequate water at that source to allow for expansion or annexation. He stated the proposed pipeline appears to be a good opportunity for the Town to gain the infrastructure needed to bring in additional water, with the understanding that they would have to secure their own water rights. Mr. Cordes reviewed the amount of water requested and if this proposal is approved, the Town would begin talks with Calpine regarding shared use of the pipeline. He stated Calpine has also committed money for construction of school ball parks in addition to a GOCO grant, which would also be available for community use. He further stated the Town feels this will be good for the entire community, as well as the School District. Mr. Cordes stated there is development in the area coming from 1-76, and his job is to regulate and plan for good growth. Responding to Commissioner Geile, Mr. Cordes stated the proposed site is not within the Intergovernmental Agreement area, nor is it within a three-mile radius of the Town. He stated there is no written agreement with the applicant at this time; however, Mr. Perkins has stated if the application is approved, they will begin talks concerning shared use of the waterline. Jim Mackety, Real Estate Broker in Hudson, stated land values may not decrease as a result of new power lines, and supporting information for his views were previously submitted at the Planning Commission Hearing as further information was submitted at the Planning Commission. Boyd Arnold, surrounding property owner, stated he is not opposed to the alternate pipeline sites, and he fully supports primary sites in addition to the overall project. He indicated this proposal is part of growth in the area and it is to be expected. Bob Grand, Keenesburg Chamber of Commerce President, stated he is speaking as a private individual, not on behalf of the Chamber. Mr. Grand stated he is opposed to the location, not the 2002-0179 PL1582 HEARING CERTIFICATION - ROCKY MOUNTAIN ENERGY CENTER, LLC (CALPINE) (USR#1339) PAGE 12 technical issues of the power plant. He expressed concern with the lack of a written agreement committing the applicant to follow through on promises to improve the ball park; however, Calpine has been dependable up to this point and has been actively participating in community events. Mr. Grand stated this will further the efforts of members in the community working to improve youth facilities. Responding to Commissioner Geile, Mr. Grand stated he would support a Condition of Approval requiring the applicant to followup on contributions as promised, and added he has no evidence that they will not do as they have said. Jeff Parker, adjacent property owner, stated he supports the power plant, and added the applicant has been honest and up front on all aspects of the proposal. Mr. Parker stated this industry will benefit local School Districts, Fire Departments, and the community as a whole. Lloyd Land, adjacent property owner, stated he supports the proposal and recommends approval. He stated he has entered into a ten-year lease agreement with the applicant, and during the past year the applicant has been very honorable in all of their dealings. Mr. Land submitted a letter from Green Acres Turn Farm, Inc., marked Exhibit AA, indicating further support. Responding to Commissioner Jerke, Mr. Land stated he has farmed here since 1965 and plans to continue. Charlie Hull,surrounding property owner,stated he lives directly northeast of the proposed site and he has had no interest in dealing with the applicant. He stated the areas surrounding other power plants are predominantly poor land values and he feels there are better locations for this type of facility given the impact it will have on so many people. Pamela Simpson, surrounding property owner, stated she lives across the street to the east on the old dairy farm. She stated she has appreciated Calpine's willingness to communicate with the surrounding residents. Ms. Simpson stated the company's representatives have listened to their concerns and questions and she has no concerns regarding the potential for noise, pollution, or water vapor. She stated this plant will create a smaller impact in the long run in comparison to 500 to 800 new homes. She further stated it is also a benefit that the surrounding farmland will continue to be farmed. Robert Swank, surrounding property owner, stated he has lived in this area since 1958 and has seen many changes over the years. Mr. Swank stated he supports power plants in California, but he feels there are better locations than this in Colorado. He stated on cold days you can see the vapor rising from stacks which can create a traffic hazard, and he has concern with traffic on Highway 52 and students traveling to school. Mr. Swank gave a brief history of the property which is now the Hudson Industrial Park, and expressed concern that what is being proposed today may not be the end result if the property is ever sold or annexed by the Town. He further stated the Board should consider the tax value of the property once the Assessor establishes the amount, not base their opinion on the applicant's estimate. John Parker, surrounding property owner, stated water is his primary concern in this dry area. He expressed concern with the applicant's inability to come up with an adequate water supply for the next 30 years, and he does not agree with the Planning Commission's concession to allow a ten- year water plan with the intent to address the remaining water needs at a later date. Mr. Parker stated when Weld County residents apply for a special use, they are required to prove the availability and adequacy of water before approval,so why treat this applicant differently. He stated 2002-0179 PL1582 HEARING CERTIFICATION - ROCKY MOUNTAIN ENERGY CENTER, LLC (CALPINE) (USR #1339) PAGE 13 water is highly valued in this area and there are no guarantees as to what may be available following the next ten years,or whether the applicant will be able to pay for it. Mr. Parker requested the board deny this request based on the negative impacts it will have on the surrounding communities and residents of Weld County. Stan Roskop, surrounding property owner and representative of the Southwest Rodeo, stated he supports the plant, and he would like to see some improvements to the school facilities as discussed pending approval of this proposal. Responding to Commissioner Masden, Mr. Roskop stated there has been some discussion regarding the relocation of the fairgrounds, but there is no formal agreement at this time. Jackie Newnam,surrounding property owner, stated she is also speaking on behalf of her parents, Cindy and Marian Newnam, who are involved in agriculture in the area. She stated it was discouraging to watch the Planning Commission worked extensively to accommodate the applicant, and the same issues which were discussed at that time have yet to be resolved. Ms. Newnam stated reducing the water agreement to 2012 is unacceptable and it is threatening the local farmers to even consider use of natural water. She stated the applicant should provide evidence of a sufficient water supply for the life of the facility prior to approval, and she expressed concern that the facility may produce hazardous pollutants. Ms. Newnam stated the facility would be close to the Banner Lakes Reserve and an open evaporation pond would pose a hazard to area wildlife. She also expressed concern with placing a power plant in a populated area when power plants are prime targets for attack. Don Litton, Mayor for Town of Hudson, stated he represents 1,650 residents and seven trustees. Mr. Litton stated the Board of Trustees did pass a Resolution of support, and Weld County, the surrounding communities, local School Districts, and public safety entities would benefit from the financial resources of this project. He stated local residents must face the reality that growth has reached this area and the product of power plants is needed to support that growth. Mr. Litton further stated the economic benefits outweigh any drawbacks, and although he does not want a negative operation in his backyard, as Mayor, he must support proposals which are in the best interest of the citizens he represents. He stated there are no guarantees at this time; however, he believes this project will be good for the residents of the surrounding towns and Weld County. Responding to Commissioner Geile, Mr. Litton stated there is not an Intergovernmental Agreement between Hudson and the County; however, if there were one, the site would be located within the boundaries. He reiterated the footprint of the power generation facility is separated from the industrial park by a strip of farmland. Dave Miller, surrounding property owner, stated he is in favor of the project due to job opportunities, and he feels there would be a positive economic impact to the surrounding communities, which is needed right now. Mr. Grimes returned to question whether the Planning Commission reviewed the correct standards when considering this case because the proposed use is similar to a Major Facility of a Public Utility. Mr. Morrison stated the distinction between a Major Facility of a Public Utility and a Use by Special Review is that in this case the applicant is a non-public utility commission entity. He stated if this application had been filed under Public Utility Commission regulations, the decision of the Planning Commission would have been final and the case would not have been heard by the Board 2002-0179 PL1582 HEARING CERTIFICATION - ROCKY MOUNTAIN ENERGY CENTER, LLC (CALPINE) (USR #1339) PAGE 14 of Commissioners. He stated the applicant did provide information to the Department of Planning Services which relates to operations which will be similar to a Major Facility of a Public Utility. There being no further comments, Chair Vaad closed public testimony and called a ten-minute recess. Upon reconvening, Mr. Pomeroy stated the surrounding area residents are split in their opinion of this proposal. To address some of their questions he stated the company does have a 100-foot easement along the river side property, and the facility will not be placed on prime agricultural land as stipulated in the recommendation of the Planning Commission. He stated the applicant contacted residents within a 12-mile radius of the facility, so it is his opinion they received notice of this proposal, and they supplied information beyond the normal requirements of a USR to answer any questions regarding the nature of the facility. Mr. Pomeroy stated an alternative site was considered; however, he has already discussed the reasons for selecting this site, and some opinions regarding the valuation of land near a power facility indicated values increase when converting agricultural land into industrial. He further stated the applicant will work with the Department of Public Works, the Railroad company, and CDOT to ensure the upgrade of the crossing is suitable for the traffic that will be using it. He clarified that formal notification for hearings was based on the boundaries of the 80 acres included in the USR permit, and there has been additional publicity of the proposal which notified many surrounding residents. He stated the proposal is supported by many of the local officials and the School District. He further stated Xcel Energy stated this is the largest component in meeting the needs of the State, and the traffic study has been included in the file as Exhibit W. He further stated the traffic will be directed not to use Highway 52, and they will do any necessary upgrades as required by other agencies. Mr. Kroeker stated Calpine has leased an appropriate amount of water from the City of Aurora to supply the facility for the next ten years, with the possibility for extension of the use agreement at a future date. He further stated the well permits from the State stipulate the applicant cannot withdraw more water than what has been purchased from Aurora. He stated the use of water is overseen by the Colorado Water Engineer, and enforcement measures will be taken if too much water is withdrawn. He stated the City of Aurora has the legal right to lease the water rather than letting it run down the river, and that is the ultimate intent as the city continues to develop. He stated Calpine decided not to buy up farms with accompanying wells to reduce the impact to the area, and although Calpine desired a long-term lease, the City of Aurora was not willing to go beyond ten years at this time. He stated if a 30-year water supply is required at this time, the applicant will be forced to resort to purchasing other secondary water or buying agricultural water rights and changing the use. He further stated it is in the best interest of all involved to allow the applicant to take some additional time to evaluate the water supply before 2012 and determine the best course of action. Responding to Commissioner Jerke, Mr. Kroeker stated the water lease amount exceeds what will be used by the plant and as water runs up the river to Kersey the applicant will be charged a transit cost. In response to Commissioner Masden, Mr. Kroeker stated the Calpine engineers specified the amount estimated to operate the facility, and no further water will be needed. He further stated the applicant could also approach Xcel Energy to contribute to the purchase of water for this project, and added purchasing Colorado Big Thompson (CBT)water will not be an option due to cost and the fact that the CBT District does not allow for transfer of water out of the district. 2002-0179 PL1582 HEARING CERTIFICATION - ROCKY MOUNTAIN ENERGY CENTER, LLC (CALPINE) (USR #1339) PAGE 15 Gary Arens, Plant Manager, stated in accordance with the power purchase agreement and expected outputs he predicts the facility will require 3,000-acre feet of water. He further stated there will be an 80-acre foot retention pond to release stormwater runoff at a historical rate and a 10-acre foot evaporation pond which will be double lined and regulated by the State. He stated the pond will not be covered to allow for evaporation; however,there are options for screening the pond for the safety of wildlife in the area. He stated some of the water that comes to the facility will be treated with a lime softener and stored as surplus to keep the facility running if there is ever pipeline problem. Mr. Arens stated the treatment plant treats water coming through the pipeline with a lime softener clarifier, and chemicals are added for pre-treatment use in the cooling tower. He stated the rest of the water will go through the treatment plant including a reverse osmosis system and demineralizer to be used for fire protection, power augmentation, and boiler water make-up. He stated the materials removed from the water are dried and hauled off site. In response to Commissioner Geile, Mr. Kroeker stated the water is from Aurora's reusable water sources, and the City currently has 20,000 acre-feet of secondary use water from various sources including the Arkansas Valley. Elizabeth Mitchell,attorney,stated the Colorado Division of Wildlife(CDOW)reviewed this proposal and initially indicated concern regarding wildlife in the evaporation pond; however, they are discussing the use of netting over the pond to allow for continued evaporation. Ms. Davis stated the waste water is a brine concentration and they are also considering the use of a brine crystalizer which would then allow for an enclosed system. Ms. Mitchell submitted a copy of the subsequent letter from the CDOW, dated October 25, 2001, and marked Exhibit 16, indicating their previous concerns had been addressed. In response to Commissioner Geile, Mr. Pomeroy stated to date the applicant has not considered the possibility of annexation to the Town of Hudson because there is not an existing Intergovernmental Agreement However, if one is completed, the applicant is willing to consider entering into an Annexation Agreement at that time. Ms. Davis stated prior to recording the plat, the applicant will be required to submit evidence that the ponds are designed by an engineer. Commissioner Jerke stated there is a possibility that some vehicles will still use Weld County Road 51 south to Highway 52 and he suggested the applicant be required to pave the entire length of Weld County Road 51 between 1-76 to Highway 52. Mr. Hempen referred to the letter from CDOT, dated February 5, 2002, and the applicant's traffic engineer's response, dated February 6, 2002, and stated it may be more appropriate to pave the road from 1-76 south to the entrance and the continue from there with dust suppressant. He stated the applicant should still be required to work with CDOT until evidence has been submitted that their issues have been addressed. He stated if there are complaints indicating there is traffic traveling south from the facility, staff could initiate a Probable Cause hearing which could result in revocation of the permit. Mr. Hempen expressed concern that paving the entire length of road may result in increased traffic to the south. Responding to Chair Vaad, Mr. Hempen stated Felsburg, Holt, and Ullevig reviewed the traffic study on behalf of the County and the Department of Public Works made its recommendation based on those findings. Chair Vaad commented Weld County Road 51 will remain classified as a local county road and the intersection at Highway 52 would remain unchanged unless paving is required. Chair Vaad commented dust abatement would handle any traffic that goes south, so he does not support paving south to Highway 52. Mr. Pomeroy stated the applicant does not want to 2002-0179 PL1582 HEARING CERTIFICATION - ROCKY MOUNTAIN ENERGY CENTER, LLC (CALPINE) (USR #1339) PAGE 16 create an incentive for traffic to come to the facility from the south; however, they do support dust abatement on that portion of the road. Responding to Commissioner Geile, Don Carroll, Department of Public Works,stated Condition#2.M addresses the requirements of the Department of Public Works. Chair Vaad suggested adding language to Condition#2.N to ensure the concerns of CDOT regarding the intersection of Weld County Road 51 and 1-76 are addressed. Commissioner Geile moved to add language to CA #2.N to state, "this shall also include the agreement for improvements at the intersection of 1-76 Frontage Road and Weld County Road 51." Commissioner Masden seconded the motion. Commissioner Jerke commented he will support the motion; however, he feels the County may be missing an opportunity to upgrade a connecting roadway, with the understanding that upgrades will be necessary at the intersection. Commissioners Geile and Masden withdrew their motion. Commissioner Jerke moved to add Condition of Approval #P to state, "The applicant shall pave Weld County Road 51 from the 1-76 Frontage Road to Highway 52." The motion was seconded by Commissioner Masden, and upon a call for the vote, the motion carried with Chair Vaad opposed. Commissioner Jerke moved to add language to Condition#2.N to state, "this shall also include an agreement for improvements at the intersection of the 1-76 Frontage Road and Weld County Road 51." Commissioner Long seconded the motion, which carried unanimously. Mr. Pomeroy referred to revised Resolution, marked Exhibit P, and stated for financing reasons, items #2.B, #2.G, and #2.O need to be moved to a new Condition of Approval #3 titled, "Prior to commencement of construction activities to which the requirement relates:" because they cannot be completed before the time required to record the plat. Responding to Chair Vaad and Commissioner Geile, Mr. Morrison stated if the conditions are moved and not completed it could result in revocation of the permit, and it does not create a problem for the Board if it helps mitigate the impacts. CommissionerJerke suggested using"prior to issuance of Building permits"for easier enforcement. Responding to Chair Vaad, Ms. Mika confirmed the applicant did notify property owners within 500 feet of the external well field site and the power generation facility. Following discussion, Mr. Pomeroy stated the language proposed by Commissioner Jerke may cause a conflict because a building permit will be required for other portions of the project before commencement on items #2.B, #2.G, and #2.O. He suggested amending the language to state, "30 days prior to commencement of Construction to which the requirements relate." Mr. Hempen stated Condition#2.O needs to be modified to include language to state, "The applicant shall show that the installation of lines will not inhibit future roadway construction for rights-of-way which currently do not have any improvements." He stated the standard utility permitting process usually deals with the installation on roads with existing facilities. He explained this is important because in this case the lines will be going cross-country using the old right-of-way and if a road is constructed in the future, he wants to ensure they don't have to relocate the water or gas lines. Responding to Chair Vaad, Mr. Hempen stated the applicant will need to work with the Department of Public Works to determine the best profile considering vertical curves, and the lines will need to be offset from the center line along the shoulder of a roadway. Responding to Commissioner Geile, Mayor Litton returned to state the Town of Hudson would prefer the applicant adhere to the terms of a future Intergovernmental Agreement (IGA) between the Town of Hudson and the County regarding industrial annexation. He stated there are several industrial sites within the current planning boundary that are not within the municipal boundaries. Mr. Morrison stated currently there is no Intergovernmental Agreement, and compliance with the IGA may not necessarily result in annexation since this process will already be completed. Mr. 2002-0179 PL1582 HEARING CERTIFICATION - ROCKY MOUNTAIN ENERGY CENTER, LLC (CALPINE) (USR#1339) PAGE 17 Pomeroy stated the applicant is agreeable to the additional sentence in Condition #2.O, with the understanding that it still needs to be relocated under a new Condition of Approval #3 and renumbered or relettered as appropriate. He further stated Condition #2.G also needs to be relocated and the words "and operation" need to be deleted because this requirement is a preconstruction operation. Ms. Mika and Ms. Davis expressed concern with the proposed language under Condition #3 because it may be difficult for staff to determine an actual date 30 days prior to commencement. Mr. Pomeroy clarified the new language would require the applicant to complete the condition before that particular phase of construction commences. Responding to Commissioner Geile, Mr. Pomeroy stated if they can't come to an agreement with the County on the plans, the applicant cannot construct that portion of the project. Mr. Morrison added if staff is not satisfied, they are justified in withholding building permits for the associated activities. Responding to Chair Vaad, Ms. Mika stated there will be multiple components of the overall building permit, and she read proposed language for Condition #2.B. Concerning Condition #2.G, Ms. Davis suggested replacing the word "obtain" with the words "apply for," so the condition could be left under Condition #2 as an item to be met prior to recording the plat. Mr. Morrison stated the Storm Water Discharge Permit is a requirement for the entire site so if this item is not met, staff can withhold the entire building permit. Ms. Mika suggested the first part of Condition #2.G be revised to state, "Prior to receiving the building permit, the applicant shall submit a Storm Water Discharge Permit . . . " Following further discussion, the Board determined that the language originally proposed by the applicant is adequate with the addition of a 30-day period prior to commencement activities described under Conditions #2.B, #2.G, and #2.O. Commissioner Jerke moved to create a new Condition of Approval #3 to state, "Prior to commencement of construction activities to which the requirement relates:"and relocate Conditions B, G, and O from Condition #2 to the new Condition #3. His motion also included deleting "and operation" from Condition G and adding a sentence to Condition O to state, "The applicant shall show that the installation of lines will not inhibit future roadway construction for rights-of-way which currently do not have any improvements." Commissioner Long seconded the motion,which carried unanimously. Mr. Pomeroy suggested moving Condition #2.J under Condition #4. Mr. Carroll stated the Department of Public Works will review the plan to make sure the site is capturing any stormwater and releasing it at the historical rate. He stated the plan can be evaluated after issuing the building permits. In response to Commissioner Jerke, Mr. Morrison stated the construction phase is governed by issuance of the Storm Water Discharge Permit. Commissioner Jerke moved to relocate Condition #2.J under Condition #4 as item E, with the deletion of the second sentence. Commissioner Masden seconded the motion, which carried unanimously. Mr. Pomeroy stated the construction activities for Weld County Road 51 will not be completed prior to recording the plat; however, he wanted to clarify that the applicant will adhere to the improvements and maintenance as specified in staffs Memorandum. Mr. Hempen added the applicant can at least enter into an improvements agreement prior to recording the plat. He requested Development Standard #4 be amended to delete, "or change the terms of the Use by Special Review Permit to ten years." He stated the site cannot operate without water, and if there is no water plan by 2012, the permit can be revoked at that time. Mr. Morrison stated the Weld County Code does not allow for term restriction on a Use by Special Review, and he concurred with Mr. Pomeroy that if the County is not provided with appropriate documentation of a future water 2002-0179 PL1582 HEARING CERTIFICATION - ROCKY MOUNTAIN ENERGY CENTER, LLC (CALPINE) (USR #1339) PAGE 18 agreement, there will be grounds for revocation. Commissioner Jerke moved to amend Development Standard #4 as requested by the applicant. Commissioner Long seconded the motion, which carried unanimously. Mr. Pomeroy stated prior to recording the plat, the applicant would like to add a condition to state, "The applicant shall submit a final executed surface use agreement relating to oil and gas interests at the power plant site between Anacapa Land Company, LLC,and RME Petroleum Company,and RME Land Corporation to the Department of Planning Services." Commissioner Long moved to add this item under Condition #2 as the last condition and to letter appropriately. Commissioner Masden seconded the motion, and it carried unanimously. In response to Mr. Pomeroy, Ms. Davis stated the application indicates this will be a "zero liquid discharge" facility; however, Development Standard #15 does not apply to septic or stormwater runoff. Mr. Pomeroy clarified that during construction there will be times the crew is working 24 hours a day, seven days a week, on occasion, and during the pre operation phase, the site will operate 24 hours a day, seven days a week, so this may need to be clarified for Development Standard #23. Ms. Mika suggested language be added requiring the applicant to notify the Department of Planning Services in those instances when they know additional hours of operation will be required. Mr. Pomeroy suggested Development Standard#23 be amended to state, "Hours of operation for construction of the facility shall occur Monday through Saturday from 6:00 a.m. to 6:00 p.m., with the understanding that for critical construction activities, there will be a need for 24 hours of operation on occasion,with 24 hours of advance notification to the Department of Planning Services, and at commission time of the plant there will be a need for 24 hours of operation." Commissioner Masden moved to approve the amendment to Development Standard #23. The motion was seconded by Commissioner Long and it carried unanimously. Commissioner Jerke commented he will vote in favor of the amendment; however, he feels it is implied that there will be operations going on 24 hours a day, seven days a week, 365 days a year. Responding to Chair Vaad, Mr. Pomeroy stated the applicant and its representatives have reviewed and agree with the Conditions of Approval and Development Standards as proposed, discussed, and amended. Commissioner Geile suggested adding a Development Standard requiring the applicant to pursue an annexation agreement with the Town of Hudson. Mr. Morrison questioned this requirement in the absence of an IGA. Mr. Pomeroy stated annexation to a municipality is supposed to be a voluntary issue, and he does not feel the Board has authority to enforce an annexation agreement when there is no IGA. He stated the applicant will agree to consider annexation in the event an IGA becomes effective. Mr. Morrison added even with an IGA, annexation is not an absolute requirement, the request is driven by the municipality, and if either party does not agree, then the development request comes before the County. Commissioner Geile commented the applicant has stated the property is in the Urban Growth Boundary for the Town of Hudson, so it is not unreasonable to proceed with that understanding and require the applicant to make the contributions as previously promised. Mr. Morrison stated the Town of Hudson could request annexation of the property, even if this application is denied. In response to Commissioner Masden, Mr. Pomeroy stated the applicant is agreeable to a Development Standard stipulating that in the event the water line is constructed, they will agree to share the capacity with the Town of Keenesburg. Ms. Mika and Chair Vaad suggested a Development Standard could be added to state,"The applicant shall pursue an agreement with the 2002-0179 PL1582 HEARING CERTIFICATION - ROCKY MOUNTAIN ENERGY CENTER, LLC (CALPINE) (USR #1339) PAGE 19 Town of Keenesburg for use of the capacity of the water lines at the time of construction." In response to Commissioner Jerke, Mr. Pomeroy stated the water line can be sized to accommodate some usage by the Town of Keenesburg; however, he expressed concern that the agreement will need to allow flexibility regarding amounts and costs. He further stated the Town of Keenesburg would tap into the line as a means of moving its own water. Mayor Cordes stated the Town would purchase its own water and move it through the shared use of the proposed water line. He further stated the pipeline is 2.5 miles from the Town's storage site, so they would only need to construct an extension to reach the water treatment plant. Commissioner Masden moved to add Development Standard #30 to state, "The applicant shall pursue an agreement with the Town of Keenesburg for use of the capacity of the water lines at the time of construction." Commissioner Jerke seconded the motion, which carried unanimously. Commissioner Masden questioned the potential for conversion to a coal plant. Mr. Morrison stated the site could be converted, but only after further review and approval by the Board of Commissioners. He suggested incorporating more specific language into Development Standard #2. Following discussion, the Board concurred that its intent is clear as indicated for the record. Mr. Pomeroy stated the applicant must be able to show the ability to convert to coal in the event the Country is facing a need for coal powered energy. Chair Vaad stated no changes need to be made; however, conversion to coal is considered to be a major change and will require review and approval by the Board. Responding to Commissioner Geile, Mr. Pomeroy stated this permit is for gas-fired power generation only, and any changes will require an amendment to the permit. In response to Commissioner Masden, Mr. Perkins stated the applicant was approached by the Southeast Weld County Fair for use of the remaining portion of the applicant's property. He stated following preliminary discussions, the applicant has indicated their property is not an appropriate site for the rodeo. However, they are willing to underwrite acquisition of a suitable parcel of land in an effort to assist the Fair group in relocating from the center of town to a new site which would require approval from the Board of Commissioners as a Use by Special Review Permit. Responding to Chair Vaad, Mr. Pomeroy stated the rail line to the site is not for coal; it will be used for transporting large equipment to the site. Commissioner Jerke stated he supports the application because they have provided evidence that they can financially support the proposal, tax payers in the area will benefit from the operation, new jobs will be created, and they will be required to improve some of the local transportation routes. He stated although the water has been a benefit to the farmers up to this point, it is owned by the City of Aurora and can be used to exhaustion since it was transported from another basin. He further stated that although it may not be pleasant, the reality is that there may be other major users in the future. (Switched to tape #2002-06) Commissioner Masden stated this decision will impact many of his neighbors and friends. He stated he lives in this area and sees the need for development which will create a good tax base for the community and school district. He further stated the applicant has also shown a willingness to work with the surrounding communities and be a good neighbor, so he supports the proposal. Commissioner Long stated he appreciates all of the input from both viewpoints because he understands this proposal will affect each of the residents in different ways. He further stated although each Commissioner represents a certain portion of the County, they also represent the 2002-0179 PL1582 HEARING CERTIFICATION - ROCKY MOUNTAIN ENERGY CENTER, LLC (CALPINE) (USR #1339) PAGE 20 County as a whole. He stated the terms of this permit may lead to new and better operation techniques and he supports the project because the applicant has worked diligently to establish relationships with those who will be effected. Commissioner Long stated the power which is generated is needed throughout the State, and added the applicant has communicated with the communities and he expects the applicant to follow through on any spoken commitments. Commissioner Geile stated the utility industry is in flux, which effects rate payers. He stated transmission lines owned by Regional Transmission Organizations (RTO) will be increasing, and recent studies indicate Colorado will need more energy due to anticipated growth. He further stated he would prefer not to create any further transmission corridors; however, power plants will require significant transmission lines to address the power needs in this area. Commissioner Geile expressed concern with the limited water supply at this point because he does not know who will be responsible for a water contract in the future; however, the Public Utilities Commission and Xcel Energy have reviewed the application and have indicated they are confident the applicant will be able to produce. He stated the applicant will have to work diligently to adhere to the many complicated Conditions of Approval and Development Standards,which go above and beyond what would have been required for a Major Facility of a Public Utility. He stated this Use by Special Review process allows for input from the public, and he supports the application because regardless of some concerns, it does comply with the County's zoning policies and Comprehensive Plan. Chair Vaad stated based on the testimony presented, and the recommendations from the Planning Commission and staff, he finds the application complies with the Weld County Code and Comprehensive Plan. He stated following much discussion, the Conditions of Approval and Development Standards have been finalized to eliminate any confusion or vagueness, and to ensure the protection of the health, safety, and welfare of the inhabitants of the neighborhood and County. He stated he appreciates the testimony given by the mayors of Hudson and Keenesburg, who also represent the public, not necessarily themselves. Commissioner Jerke moved to approve the request of Rocky Mountain Energy Center, LLC (Calpine)for a Site Specific Development Plan and Use by Special Review Permit#1339 for a Use by Right, an Accessory Use, and a Use by Special Review in the Industrial Zone District (power generation facility, including two heat recovery steam generator/combustion turbine generator exhaust stacks approximately 175 feet in height, one auxiliary boiler stack approximately 120 feet in height, and two heat recovery steam generators the dimensions of each being approximately 90 feet tall by 150 feet long by 40 feet wide, a 107-acre Well Field site, an approximately 8-mile long Gas Pipeline and an approximately 22-mile water pipeline and Agricultural Use by Right in the A(Agricultural)Zone District, based on the recommendations of the Planning staff and the Planning Commission, with the Conditions of Approval and Development Standards as entered into the record. His motion also included all of the changes made by previous motions, with the changes to be renumbered or relettered as appropriate. The motion was seconded by Commissioner Geile, and it carried unanimously. There being no further discussion, the hearing was completed at 8:30 p.m. 2002-0179 PL1582 HEARING CERTIFICATION - ROCKY MOUNTAIN ENERGY CENTER, LLC (CALPINE) (USR#1339) PAGE 21 This Certification was approved on the 11th day of February 2002. APPROVED: BOARD OF COUNTY COMMISSIONERS WELp COUNTY, OLORADO • ��,�,�� Gle Vaad, Chair ��.•,--, u`rk to the Board F 1861 t:�� / David E. ng, Pro-Tern to the Board M. J. Geile TAP # 002-03 thru #2002-06 '1n / / ll' m H. et DOCKET #2002-08 Robert D. Ma den 2002-0179 PL1582 EXHIBIT INVENTORY CONTROL SHEET Case USR#1339 - ROCKY MOUNTAIN ENERGY CENTER, LLC (CALPINE) Exhibit Submitted By Exhibit Description A. Planning Staff Inventory of Item Submitted B. Planning Commission Resolution of Recommendation C. Planning Commission Summary of Hearing (Minutes 11/06/2001) D. Clerk to the Board Notice of Hearing E. Planning Staff E-Mail re: Oil and Gas Language (11/06/01) F. Homer Grinde Letter of Support (11/01/2001) G. Applicant Letter re: Conservation Easement (11/05/2001) H. Town of Kersey Letter of Concern (11/07/2001) I. Applicant Letter re: Revised set of Case Maps as required by the Planning Commission (12/11/2001) J. Applicant Letter requesting hearing date beyond the scheduling deadline (01/04/2002) K. Jake Grattan Letter of Concern with response (01/14/2002) L. Applicant Letter addressing Planning Commission Requirements and attachments (01/23/2002) M. Applicant Photo of site and two vicinity maps N. Applicant Power Point Presentation notes (02/06/2002 O. Kari Kutz Letter of Support (02/04/2002) P. Applicant Letter and Revised Resolution (01/31/2002) Q. Mountain West Regional Council of Carpenters Letter of Concern (02/05/2002) Exhibit Inventory Control Sheet- ROCKY MOUNTAIN ENERGY CENTER, LLC (CALPINE - USR #1339) R. Mary Ann Grattan Chinn E-Mail of Concern (02/03/2002) S. Laser, Inc. Letter of Concern, Notice to Weld County Residents, The Contractors Critic Newsletter from 04/2001 and 04/2002, and Notice re: EEOC sues Major Construction Firm T. CDOT Letter of Concern re: Traffic Impact Analysis (02/05/2002) U. Planning Staff Four photos of signs posted at the site V. Randy Yeager/John Grimes Power Point presentation copy and photographs W. Matthew Reay (HNTB) Letter with comments regarding response from CDOT (02/06/2002) X. Pamela Edens, Realtor Letter from The Bell 5 Land Company re: Property Marketing (01/30/2002) Y. Pamela Edens, Realtor Letter from Ted Davis re: Marketing and Value Influences of the proposal (02/01/2002) Z. Sharon Parker Six copies of news reports and articles AA. 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