The URL can be used to link to this page

Browse Search

Home My WebLink About20050260.tiff HEARING CERTIFICATION RE: CONSIDER SERVICE PLAN FOR PROPOSED EAST 1-25 SANITATION DISTRICT A public hearing was conducted on February 14, 2005, at 10:00 a.m., with the following present: Commissioner William H. Jerke, Chair Commissioner M. J. Geile, Pro-Tem Commissioner David E. Long Commissioner Robert D. Masden Commissioner Glenn Vaad Also present: Acting Clerk to the Board, Carol A. Harding County Attorney, Bruce Barker Planning Department representative, Kim Ogle The following business was transacted: I hereby certify that pursuant to a notice dated January 14, 2005, and duly published January 19, 2005, in the Fort Lupton Press, a public hearing was conducted to consider the proposed Service Plan for the East 1-25 Sanitation District. Bruce Barker, County Attorney, made this a matter of record,and read the inclusive legal description of the proposed district. Kim Ogle, Department of Planning Services, presented a brief summary of the proposal and entered the favorable recommendation of the Planning Commission into the record as written. He reviewed the type of properties included and stated referrals were sent to the Towns of Firestone and Mead,and the City of Longmont, since all three are within three miles of the proposed district. Mr. Ogle stated that, although all of the property within the proposed district lies within unincorporated Weld County,the proposed district boundary overlaps the Mead 208 area. The proposed boundary also overlaps the St. Vrain Sanitation District (SVSD) service area as defined by the Areawide Water Quality Management Plan, which is administered by the North Front Range Water Quality Planning Association (NFRWQ); therefore, the proposed district must gain approval of boundary changes from NFRWQ. He stated the Town of Mead strongly opposes approval of the Service Plan,and the SVSD, in its referral response dated December 10,2004,stated it does not object to the formation of this new district since it does not infringe on SVSD 208 boundaries and would promote regionalization of services. However, the Board also stated it is not, and will not, go out and seek to acquire territory from other districts, nor interfere with, or impose on, the designated 208 boundaries of another district or municipality. The referral response further stated that it does not appear the Town of Mead has the ability or facilities to provide treatment services,which is why the property owners want to form the new district and contract with SVSD for treatment services. Mr. Ogle stated the Planning Commission unanimously recommended the Service Plan favorably to the Board of Commissioners, finding the proposed district has shown compliance with all applicable regulations. Responding to Commissioner Geile, Mr. Barker stated if the Board approves the Service Plan, District Court would be the next step, and a Court Order would set up an election to determine the property owners'desire to establish the District. He stated any condition with respect to 208 boundaries could be included in the Board's Resolution for District Court inclusion in the Court Order. He further stated it would be appropriate to request the Court Order be reviewed by the County Attorney's office to assure 208 approval is included. 2005-0260 SD0094 e : Aeto PL) N-t_6 ©3 -0$-0� HEARING CERTIFICATION - PROPOSED SERVICE PLAN, EAST 1-25 SANITATION DISTRICT PAGE 2 Jim Collins, Collins Cockrel and Cole,Attorney for the proposed district, stated the request at this point is approval of the Service Plan as required by State statute prior to the District Court ordering an election. Mr. Collins submitted the certificate of mailing, affidavit of publication, and notice of hearing, marked Exhibit G. He stated no exclusion requests or objections from property owners have been received. Mr. Collins stated the Planning Commission unanimously recommended approval,with a condition that the proposed district would dissolve if the 208 boundary area is not amended within one year. He stated the property owners have concluded that service to this area is best provided by a new district which would collect and deliver wastewater to SVSD; however, SVSD does not want to be involved in getting a 208 boundary change. Mr. Collins stated an agreement for treatment of sewage at SVSD for this district is being drafted,and since SVSD does not want to be caught in the 208 boundary issue, the preferred choice of a subdistrict is not available. Mr. Collins stated that staff and Planning Commission issues were addressed at that hearing,and he emphasized this is not a land use decision. The Board needs to determine whether the proposed district is viable and has the ability to pay off the debt, as well as provide economical and efficient service to the area within the proposed boundaries. He stated the property is primed for development and the Service Plan is flexible enough to allow any zoning that would be included; however, it also allows for Mead's annexation if that were to occur. Mr. Collins stated that Mead's Comprehensive Plan shows this as a development area,and the proposed district is attempting to provide service on a regional basis. He stated the only issue is whether the proposed district is a rational solution, and he stated that 100 percent of the property owners who are in Phase 1 are indicating it is. Mr.Collins stated the proposed district must be established before any208 boundary change can be addressed, and he proposed that any pleadings submitted to District Court be reviewed by the County Attorney prior to submission. Under direct questioning by Mr.Collins,John Burgeson,MFG, Inc.,engineerforthe applicant,stated he structured this alternative forwastewatercollection and transport,with treatment being provided by SVSD through an Intergovernmental Agreement. He indicated he met with SVSD staff at various times through the process, who indicated the SVSD Board's desire not to be involved. Mr. Burgeson stated this is the best regional alternative for wastewater treatment and it is proposed to occur in three phases of development;the first of which would be implemented within six to twelve months of formation of the District,and the second and third phases being implemented only when property owners chose inclusion in the District. Mr. Burgeson stated financial risk is minimal for property owners,with a$1,750 fee. He stated the need is existing;the current availability of Mead's facility is inadequate for any development occurring; and the Special District would provide an economical service with the financial ability to chose options for use of property which is not currently available. He further stated the facilities will be compliant with all Weld County,St.Vrain, and Colorado Department of Public Health and Education regulations and requirements, and the District would entertain any regional long range water proposals. He stated the phased operation, including the financial capability of each phase, is the best solution, and he indicated the only function stated in the Service Plan is to collect and transport sewage for treatment. In response to questions regarding Mead's Wastewater Treatment Plant Report, prepared by JR Engineering,marked Exhibit H, Mr. Burgeson stated the Town's policy is not to provide wastewater service unless the property is being annexed into the town; however,the property east of 1-25 would not, in fact, annex to Mead. Responding to Commissioner Vaad, Mr. Burgeson stated the$1,750 fee projects the full build-out of Phase 1, and Mead's existing pond treatment system is not adequate, nor is the implementation schedule for planned improvements to that system adequate. 2005-0260 SD0094 HEARING CERTIFICATION - PROPOSED SERVICE PLAN, EAST 1-25 SANITATION DISTRICT PAGE 3 Responding further to Commissioners Vaad and Geile, Mr. Burgeson stated the property owners are not interested in annexing, and the reserved capacity and site plan expansion for SVSD is for 15,000 to 16,000 gallons per day. Mr. Burgeson stated there would also be fees for the treatment service, of approximately $5,000 or $5,500; and the owners are aware of that additional cost. Responding to Commissioner Geile, Mr. Burgeson stated there would be no pumping included in Phase 1,although Phases 2 and 3 would probably require it. He stated the projected proformas for Phases 2 and 3 are included in the Service Plan. Responding to Commissioner Masden, Mr. Burgeson clarified there is a$1,750 fee,plus the SVSD fee of$5,000 or$5,500. He also reiterated if the 208 boundary changes are not approved within one year, this District would be dissolved. Responding further to Commissioner Masden, Mr. Burgeson stated because of the election process,necessary208 amendment,and authorization for bonding,the total time frame for system implementation of Phase 1 would be near the end of 2006. Russ Caldwell,Kirkpatrick Pettis,Financial Advisors and Investment Bankers,stated they reviewed the financial analysis for Phase 1 of the Service Plan,which includes approximately 3,000 acres. He stated the options for financing include bonding, with some property owners preferring cash payments. He stated the$1,750 tap fee would reflect as a credit towards treatment services with SVSD. He stated the projections include full build out of 820 family homes,with a major potion being commercial and industrial. He further stated if bonding is the financial mechanism, it will take approximately 15 years to retire the debt;and based on the Assessed Value projection,a small mill levy of approximately 5 mills, with a 20 mill cap, will be required to support the operation and maintenance of the infrastructure. Mr.Caldwell stated this method of providing service is extremely economical, and the service currently available is not adequate. He presented a Debt Capacity Analysis for the Town of Mead,which he prepared, marked Exhibit 1,and stated he used the Mead 2002 and 2003 audit,as well as the 2004 budget with year-end projections,for its preparation. He stated the Town of Mead is considering a competing project which will cost$7 million. He stated Mead does not have the required credit rating,although it does have several options the Town Board has not chosen to exercise. He stated the Town has not used its General Obligation capacity of $3,433,502;however,at six percent interest and 20 years,there would be an annual repayment of approximately$296,000 and would also require voter approval of the bond issue. He stated there is a small amount of sales tax capacity available; however, it is not frequently used for this type of expansion project. Mr.Caldwell stated the cost for expansion of the current system is projected at $6 or 7 million, and it will provide for 600 to 800 housing units. He stated Mead's current growth restriction,manifested by a Town-wide election requirement to annex new property, is a formidable obstacle to creating financial capacity. Responding to CommissionerJerke, Mr.Caldwell stated his firm does not charge to prepare Service Plans, and they will only be paid when and if the underwriting is approved. Responding to Commissioner Geile regarding the financial integrity of the proposed district, Mr. Caldwell stated it would be a market-driven transaction and, upon formation of the District and 208 boundary change, the District would have a reasonable ability to meet the repayment schedule; however, the ability would also exist to move the debt schedule to a longer period, and some property owners would prefer cash. He stated the 5 mill levy was included for operating expenses,with a 20 mill cap. Mr.Caldwell further responded that the fee would reflect as a credit on the system,which would be in accordance with an Intergovernmental Agreement, and the $1,750 could be increased appropriately after expansion. He stated Mead's expansion is projected at$7.3 million,compared to$2.5 million for Phase 1. Mr.Collins stated collection system improvements in all three phases would require$9 million. Mr. Caldwell summarized that there is nothing speculative about this type of bond funding,and it provides a method for improvement at a very low cost. 2005-0260 SD0094 HEARING CERTIFICATION - PROPOSED SERVICE PLAN, EAST 1-25 SANITATION DISTRICT PAGE 4 Merlin Mass, property owner,stated the property owners started this process over one year ago by looking for the best qualified individuals available to handle the project. He reviewed the qualifications of Mr. Collins and Mr. Burgeson, and stated many of the property owners are successful businessmen. He stated that through this process,he has spoken numerous times with Commissioner Vaad,Mr. Barker,and Ms. Mika to keep them informed of progress. He stated SVSD is an award-winning district, and with its recent increased capacity, is now able to negotiate with other service providers in the region. Mr. Maas stated the 208 boundary can be restructured, and this proposed district was not completed in haste;it is well planned,and any district would be proud to have the property owners included with the qualifications of those individuals working on the district. He stated it is reasonable, it fits the geographics of the area, and the property owners are committed to the project. Gary Wood stated he represents Sekich Farms, a 300-acre parcel north of Highway 66. He presented paper copies of a PowerPoint presentation, marked Exhibit J. He stated the proposed district is economically feasible and realistic; it promotes smart water quality; service will be available when needed,with flexible phasing;there would be no duplicity of treatment facilities;and it would pair a willing service provider with willing owners. He stated the St. Vrain facility is state-of-the-art, and reliability is the key issue. Mr. Wood stated there are 800 acres in the Comprehensive Plan marked for urban scale development in this area, existing service is inadequate and,in the last five years,several owners approached the Town of Mead for service and were unable to receive a commitment to serve. Mr.Wood stated Mead's pond system has no way to include urban development,and he spent one and one-half years on an annexation petition before withdrawing it, because the uncertainty in that process is not consistent with the type of certainty necessary for the development of his property. He stated the Town of Mead is trying to use sewer service to force annexation; however,the proposed district is not a short-term solution, it is a long- term solution for the East 1-25 issues. In summary, Mr. Collins indicated the proposed district has met all the statutory and procedural requirements, it has agreed to the condition allowing review by the County Attorney, and he requested approval of the Service Plan. Responding to Commissioner Masden,Mr.Collins stated all the property included in the district is in unincorporated Weld County. Responding to Commissioner Vaad, Mr. Collins stated the district offered its facility to Mead as a method of meeting the Town's need; however, no followup has been made. Mr. Barker stated the statutory requirements for approving or not approving the Service Plan are listed in Mr. Ogle's comments. Ken Williamson indicated his property east of 1-25 on the overhead,and stated he has lived in Mead for the past nine years. He stated his home is on a septic system, and the present sewer system is still approximately one-half mile distant,which indicates the extent of Mead's inability to service the area. He stated there are four subdivisions more than one-half mile awaywhich were approved by voters last year; however,money for sewer repair and expansion was not included in the budget for 2005. He stated the burden is extreme for Mead to serve only the area on the west side of 1-25, and the Town is now growing faster than its ability to serve. He stated he is a partner of Zeek, LLP, which purchased the Rademacher Business Park,which was approved by the Board in 1983. In 1996, it was renamed the 1-25 Business Park, and he tried many times to get sewer service from Mead. In 1997 a letter agreement was signed with SVSD to provide service,and sewer lines were installed in the Business Park at a cost of approximately $200,000. Mr. Willliamson stated the Trustees of Mead refused to give approval after it had been promised because the Business Park is in its 208 boundary area and they were going to provide service. He stated that was seven years 2005-0260 SD0094 HEARING CERTIFICATION - PROPOSED SERVICE PLAN, EAST 1-25 SANITATION DISTRICT PAGE 5 ago and Mead has not provided the services they are responsible for under the 208 boundary area requirements. He reiterated there are no funds in the current budget, and it will take years to get financing and develop a plan. He also stated Mead does not have the desire to go east of 1-25, because the Town would like that area to remain rural, and Mead is scrambling to build a sewer system there to control growth. He stated on February 8, 2005, the Trustees approved a water study; however, based on performance over the last nine years, they do not want growth, only to remain rural. Mr.Williamson stated he does not trust what Mead is currently offering,since they are determined to maintain a rural atmosphere. He stated he has seen no desire by Mead to provide service on the east side of 1-25,and Mead only offers an emergency-approved study;however,the proposed district offers an immediate solution. Responding to Commissioner Masden and Chair Jerke, Mr.Williamson stated he is an applicant and is in favor of the district,as is 100 percent of the other landowners. Responding to Commissioner Vaad, Mr.Williamson stated it was seven years ago when Commissioner Baxter was a Board member and attended a 208 hearing in Loveland. At that hearing,it was approved that Mr.Williamson be dismissed from the 208 boundary area and the went ahead with an agreement with SVSD. Mead then got that turned around and said they would provide service, although they never did. Scott Houston represented the Houston family and stated they are in full support of the proposed district. He stated they are aware the Service Plan includes installing a lift station to transport wastewater to SVSD's existing water treatment plant. He stated the family was also approached by a municipality west of 1-25 trying to obtain land, by condemnation if necessary, as a site for a water treatment plant. Mr. Houston stated the family feels the potential lift station and proposed district would be much less intrusive to their property and operation, and he stated his concerns about the disruption to both the ranch and environment of the area that would result if a water treatment plant were to be located on his property. He also stated concerns about the negative effect such a plant would have on the value of surrounding property. Responding to Commissioner Masden,Mr.Houston stated there are no contracts or agreements to sell land to Mead by any family member. Don Sekich,representing his family,stated he is in support of this application. He stated his family owns approximately 1,000 acres and is one of the applicants for the proposed district. He stated for nearly 30 years his family has been involved in development east of 1-25;the proposed district is beneficial;it provides an efficient and manageable alternative for expeditious service;and it is the least invasive approach with the least impact. Francie Graham, surrounding property owner, stated her support of the District, and stated she would like to be included as one of the individuals on the proposed district application. John Kirschner stated he represents 500 acres,including the School, Maas,and Scott properties, he has been involved from the beginning, and is in full support. Froda Greenberg, City of Longmont, stated only about 1,000 acres of the 13,000 acres proposed for the district are currently in the 1-25 MUD and planned for land use development, therefore,the use of urban scale development for the financial analysis of the District is essentially hypothetical, since it is not based on the adopted Comprehensive Plan of the County. Ms. Greenberg stated it is a requirement of the Service Plan that it be in compliance with the Weld County plans. She stated the City is aware there is a difference of opinion on who should provide service,and believe it would be appropriate to resolve this issue prior to approving a Service Plan. She stated the proposed 2005-0260 SD0094 HEARING CERTIFICATION - PROPOSED SERVICE PLAN, EAST 1-25 SANITATION DISTRICT PAGE 6 13,000 acres doubles the 1-25 service area and,if the Board of County Commissioners is interested in doubling the size of the MUD area, it would be more appropriate to first amend the zoning, allowing the public and variety of service providers to understand the implications of that change. Then the assumptions used and the implications of the assumptions used in the Service Plan would be better understood. She stated, however, doubling the size of the MUD area is premature. Responding to Commissioner Vaad,who stated the MUD is 15,000 acres and this would only add approximately 3,000 acres, Ms. Greenberg stated she is including all three phases of the Special District in her figures. Responding further to Commissioner Vaad, Ms. Greenberg stated the Longmont City Limit is approximately five miles from 1-25. Richard Kraemer, Mayor of Mead,stated the Town is adamantly opposed to the proposed district. He stated this is a land use decision; Mead has put a significant amount of time and effort into planning its future,and approval of this Service Plan would undermine a great deal of that planning. Mayor Kraemer stated the Town is planning a wastewater treatment facility plant and has been doing so since 1992. He stated the Town,under State mandate, must modify its lagoon system by 2009, although it will be completed and wastewater treatment will be in place by 2007. Mayor Kraemer stated the biggest struggle is the decision on the location of the facility. He stated the Town has been in discussion with SVSD as to whether that is a viable alternative, and it may still prove to be. He stated there may potentially be a facility on each side of 1-25, and the Town was trying to accommodate property owners such as Maas and School, by locating as far as possible to the east. He stated the Town of Mead is willing and able to serve wastewater treatment to all these applicants and approval of this Service Plan is contrary to Mead's planning abilities. Mayor Kraemer stated these properties are not included in the MUD,they are farms, and it is contrary to the Weld County Comprehensive Plan to consider this a development area. He stated Mead has been anticipating this growth since completion of its Comprehensive Plan in 2001, although no users have applied for services since that date; therefore, the Town has not moved as quickly as it should have. He stated Mead has been waiting for applicants and, in the meantime, has been expanding on the west. Mayor Kraemer stated the Town has now moved forward, it is well ahead in planning,studies have been completed,sites chosen,and Mead intends to increase its facility to accommodate the additional properties. He stated the Town would very much like these property owners to be involved;however,they have not asked for annexation,or to be part of the wastewater treatment service area. Mayor Kraemer stated the 208 boundary is based on geography; Mead is designated as the provider for that area and intends to maintain that authority. He stated Mead is taking this application very seriously, and it will protect its 208 boundary. He also stated these applications cannot be accepted before the 208 boundary is changed. Mayor Kraemer described the development planned in this area and stated residential development on the east side of 1-25 was anticipated,along with petitions for annexation from each of these properties. He stated there is an election procedure for annexation,and town residents pay very close attention to development proposals. He stated four proposals recently passed; however, if the citizens do not like the development,they vote it down. He described the Town as having an active democracy in which residents participate in growth, in planning,and in what is happening in their town. Mayor Kraemer stated the Comprehensive Plan anticipates growth between County Line Road and Weld County Road 17, and between Weld County Road 40 and Highway 66, with the MUD to the south. He stated the cooperation between the Town and Weld County should be preserved;these applicants have not come to Mead,although the town would like them to do so;and the Town would like to see Weld County defer all development decisions to Mead for the area north of Highway 66. He stated that when the 13,000 acres for all three phases are considered,the Town is in the best position to provide services to the entire area. 2005-0260 SD0094 HEARING CERTIFICATION - PROPOSED SERVICE PLAN, EAST 1-25 SANITATION DISTRICT PAGE 7 Commissioner Geile stated the property owners appear to want growth to happen soon. He requested clarification of the comments made by Mike Friesen,Town Administrator,at the Planning Commission hearing, indicating the sewer service area is defined by an entity and serviced by the entity;development gets done through annexation and platting; Mead wants to control its own sewer service area so it can control the rate and density of development that occurs; and Mead is not opposed to growth and development,but it opposes too much,too fast. Mayor Kraemer responded that Mead is the service provider of the 208 boundary area and it intends to protect that area. He stated the Town could concede a portion of that area; however, it does not intend to do so. He stated the Town would like to preserve its rural character, and have growth be reasonable, appropriate, and controlled. He reiterated that growth should progress at some reasonable, practical rate,and the Town has to wait for owners to come forward with applications and petitions before it can act. Responding to Commissioner Long, Mayor Kraemer stated the existing 208 boundaries were established in 1987. Dave DuBois, Manager of the North Front Range Water Quality Association,stated the existing boundary lines were established in 1993;however,the plan is updated every two years. Commissioner Vaad asked more detail regarding Mr. Williamson receiving a boundary change seven years ago,which the Town then had changed back, which prevented Mr. Williamson from getting service from SVSD. (Changed to Tape#2005-11) He stated in subsequent years,the Town has entered into agreements with SVSD for various areas, such as the Sekich Business Park. Mayor Kraemer stated Mead has always defended its 208 boundary area. He stated the Town purchased the St. Thomas Plant, which is a small lagoon system, to service Mr. Williamson's property;however,he no longer wanted the service. Mayor Kraemer stated it is difficult to determine whether the St.Thomas Plant could service the needs of the 1-25 Business Park,depending on the types of businesses located there; however,the size is adequate for 42 single family equivalents. Responding to Commissioner Vaad regarding the challenges listed in the Caldwell study for small towns and cities, Mayor Kraemer agreed the population would disfavor taxing themselves;however, regarding the statement that"barriers to annexation or artificial growth limits imposed by municipal regulation can seriously thwart access to capital markets",he said Mead has the ability to do a bond issue right now, although the Town is struggling with whether to spend $5 million and locate it on the west side of 1-25 or to spend $7.5 million and include the properties on the east side in the planning. Responding to Commissioner Vaad regarding whether Mead can finance a new system, Mayor Kraemer deferred to Jim Wright,Town Engineer. He stated he has been in contact with the State Revolving Loan Fund, which has money available at 3.5 to 4 percent. Mr. Wright stated because the Town has no indebtedness, it is a perfect candidate. He also stated the Town has$1 million in the bank, which will soon be $2 million because of an increase in the tap fee to $7,000. Mr. Wright stated 80 new building permits have been issued in the last few years; and in the fall of 2004, service fees were raised to $23.00 from $12.75, as the base rate. He stated a component of that increase will cover improvements to the wastewater treatment facility. Mr.Wright referenced the cash flow study in the appendix of Exhibit E from the Town of Mead, showing the growth rate required to meet the indebtedness. He stated one of the things they have been working on with the property owners on the east side of 1-25, as early as 2001, is that the Town would like to have pre-tap sales to fund the wastewater treatment plant. Mr.Wright stated the Town would like to put 40 percent down and only borrow 60 percent,although the State has indicated the full amount could be financed. He stated the Town needs a financial commitment from the property owners on the east side to move forward with this project. Responding to Commissioner Geile, who stated the Caldwell study and Mr. Wright's cash analysis do not agree, Mr. Wright stated the revolving loan interest rate is much more attractive than General Obligation Bonds included in the Caldwell study. 2005-0260 SD0094 HEARING CERTIFICATION - PROPOSED SERVICE PLAN, EAST 1-25 SANITATION DISTRICT PAGE 8 He also stated the Town will have the possibility of available grants. Mr. Wright further stated the plan will work;however,the complete financial package has not been written. Commissioner Vaad stated the Mayor referenced an updated plan which targets 2007 as the date service can be provided, although the analysis includes 2009; and he questioned the impact of the two years of savings that would not be available to reduce the debt. Mr.Wright stated the Town has some cash reserves,and the financial plan leaves two years of revenue in reserve in case of a downturn in the economy. Responding to Commissioner Masden,regarding why the Town does not use the SVSD, Mr. Wright stated they have been working with SVSD for four years; however, it has been very difficult. He stated the IGA for the Sekich Business Park has been problematic, and he had to approach SVSD with a request for the reduction of tap on fees for a Master Meter customer. He stated SVSD wants to control the collection system within the Town of Mead, and the Town does not like that. The Town wants to control growth and buy additional capacity in the SVSD plant to accommodate future growth; however, those details have not yet been negotiated. Mr. Wright stated Mead is not the only municipality in the area having difficulty with SVSD,and several months of negotiations and study is ahead before that avenue can be seriously considered. Responding to Commissioner Vaad, Mr. Wright stated the distance between the SVSD and Mead is approximately six miles; between Mead and its facility on the east side of 1-25, is approximately five miles. He stated another big problem is the fee of$5,000 to$5,500. With 375 existing taps in Mead, the cost would be$3.7 million for the existing Town residents. Responding to Commissioner Long's question regarding the need for growth to accommodate the payoff, Mr.Wright stated there is no way to guarantee growth anywhere;however, he has included plans for downturns in the economy. He also stated everyone is agreed that growth along the 1-25 corridor will occur. Ted Bendelow, Bendelow Law Firm, stated he represents the Town of Mead, and he also lives in Mead. He referenced Exhibit E,which was prepared by his firm,and stated it includes eight pages of comments regarding the Service Plan, along with many documents which back up those comments. He indicated Appendix H,which is from Hanifen Imhoff,taking serious issue with the financial projections that are being proposed and including very specific comments regarding the projections. He also stated the financial analysis used by the proponents is not included in the Plan. He introduced Pete Zemkee, previous Assistant County Attorney for Arapaho County, who referenced maps included in Exhibit E. He stated Mead is presently controlling growth through its Comprehensive Plan,which was adopted in September of 2004. In that plan, he stated,this area shows far more intense uses than the County's agricultural uses. He stated the applicants for this Service Plan represent the 3,000 acres included in Phase 1,and the bulk of the proposed district, the remaining 75 percent, is not represented. He stated those land owners were included in Mead's Comprehensive Plan process,and the Town ended up with industrial and commercial uses,as well as high, medium,and low-density residential uses,which all indicate this area is urban scale. Mr. Zemkee located Phase 1 parcels, the current and proposed 208 boundaries, and the ultimate proposed district boundaries. He stated the current 208 boundary is based on geography, topography and gravity. Mr.Zemkee stated the NFRWQ agency is the correct agency to address the 208 boundaries. He stated this is a big issue which deserves the full participation of the NFRWQ association prior to the Board of County Commissioners acting on the proposal. He said there are many things that need to be completed prior to Board of Commissioner action, including zoning changes to an urban scale designation,the planning and beginning of construction on the sewer service, and approval of the 208 commission, all of which will require several years to achieve. Mr. Zemkee stated the County's responsibility is to hold a hearing under the Special District Control Act,which was passed to prevent the proliferation of unnecessary special districts and overlapping of governmental entities. He stated the statute under which the Board is required 2005-0260 SD0094 HEARING CERTIFICATION - PROPOSED SERVICE PLAN, EAST 1-25 SANITATION DISTRICT PAGE 9 to act on the Service Plan strongly urges denial of this type of application. He stated there is no existing need;there is no zoning in place which will drive immediate need, there is only projected need which is speculative; and there is no evidence of inadequacy of Mead's ability to serve the area. He stated the projected need,which includes urban scale development,is ahead of the timing for that development. Mr. Zemkee reviewed the other findings necessary for Board approval. Chair Jerke recessed the meeting until 1:30 p.m., at which time the Board will reconvene at the Department of Planning Services, 918 10th Street. Upon reconvening, Pete Zemkee continued his testimony. He stated Department of Planning Services staff stated this plan is premature. He stated Mead is willing to service this area and, through its Comprehensive Plan,has recognized something besides farms will develop on the east side of 1-25. He stated the Town would like to see coordinated development, served by a comprehensive integrated service agency. He stated the proposed district is ahead of itself,since the NFRWQ agency has not had a chance to discuss this issue, and both Mead and Longmont, who are represented on that Board,are opposed. (Changed to tape#2005-12) Mr.Zemkee stated letters were sent last week to property owners, indicating the Town of Mead is ready to serve,and it wants to serve. He stated the only need that exists is these land owners who want to take control over a situation, instead of following processes already in place. Since no property owners have been turned down for service, the Board of Commissioners should not accept this Service Plan. He stated Mead should be given chance to serve this area, which it can do for the same infrastructure and cost. Mr. Zemkee stated Mead will serve it cheaper and with more economies of scale. He stated 2009 is the date which has been mandated by the Federal Government for Mead to have its new sewer system in place, although it will be active in two years, which is ahead of development on these parcels. Mr.Zemkee reviewed the acreage and fees,and reiterated SVSD's position should come after the 208 boundary issue is settled, and he indicated State regulations prefer municipalities providing these services rather than Special Districts. He stated many other land use issues need to be considered along with any proposal for sewer service. Mr.Wright addressed the more technical engineering issues,stating the 10,000-foot siphon included in the Service Plan will actually end up being approximately 16,000 feet long at a cost of an additional $212,000, and it will require two feet per second velocity through the pipe, per day. He stated it would require 1,000 homes to maintain the flow through the line, and any low spot in line would result in slugs hitting SVSD at the same time for processing. Mr. Wright discussed flow calculations, using a peaking factor of 2.0,stating the upper end of the system requires a factor of 3.5 and has undersized pipes, which would add an additional $158,000 to the system cost. Mr. Wright stated his opinion that a lift station, which is in Mead's plan at a cost of$1.8 million,would be a better alternative to piping. He indicated concern that some of the properties are not shown on the Exhibit;the SVSD capital investment fee is not mentioned in the study,which he calculates to be$2 million for 21,880 acres;and alternative comparisons are required,although they are not provided. Mr. Wright summarized that Mead needs to accomplish the following: An Intergovernmental Agreement needs to be in place with Weld County for the east 1-25 area;SVSD should complete its calculations regarding the plant investment fee; Mead could then revise its Intergovernmental Agreement with SVSD;and Mead needs to obtain the financial participation of property owners east of 1-25. He stated Phase 1 costs would be$4 to$5 million dollars,which does not include SVSD costs that have not been set. He stated the NFRWQ and boundary issue by itself is grounds to deny the Plan, and he referenced Section 32-1-203(2.5), C. R. S. He stated conditional approval is not allowed by statute. He stated by approving this Plan,the Board would 2005-0260 SD0094 HEARING CERTIFICATION - PROPOSED SERVICE PLAN, EAST 1-25 SANITATION DISTRICT PAGE 10 place NFRWQ in a dilemma of not having guidance on how to serve the remaining area,since it can only assign a 208 boundary area to an agency ready, willing, and able to serve, and this district cannot make that claim,leaving the association to address that issue. Mr.Wright stated the Board's proper action is not to take action,and to wait until NFRWQ acts on the boundary change request. He presented the February 11, 2005, letter to property owners and the Areawide Water Quality Management Plan, 2003 Update, by the North Front Range Water Quality Planning Association, marked Exhibits L and M, respectively. Mr. Barker indicated a portion of the NFRWQ report was included in the Mead comments, marked Exhibit E. For the record, Mr.Zemkee stated he has not seen the Caldwell report which was presented as an Exhibit prior to this date,and he has not had an opportunity to speak to its contents. Chair Jerke closed public testimony and asked the applicant for any rebuttal. Jim Collins stated this plan is not premature,it offers a cheaper alternative which is environmentally more sound,and it is more certain to serve the individuals by SVSD than Mead. He stated if there were no development there would be no Special District. He stated Mr. Dubois, on behalf of NFRWQ, indicated that to apply for a boundary change there needs to be a district formed,and he reiterated SVSD does not want the fight to form a district. He stated SVSD has reviewed the Service Plan,which provides for maintenance,and SVSD has signed off on the maintenance costs. Mr. Collins indicated the Town of Mead does not provide these services, and he indicated this Service Plan provides only a collection system,and it would be only a service line district. Although he would expect Mead to defend its boundary, Mr. Collins stated the property owners are unable to even apply for a boundary change without first having the district formed. Mr. Collins stated he and Mr. Barker have reviewed the statute which does specifically allow conditional approval, and the proposed condition should satisfy the possibility of the 208 boundary not being changed. Mr.Collins further stated that even if the 208 boundary is not changed,this district would be of value to Mead, and the district proponents have offered to cooperate with Mead to build a line to SVSD. He requested approval, stating all criteria have been met. Responding to Commissioner Geile, Mr. Collins stated if the Special District proceeds, it will request a 208 boundary change to include the exact,total boundaries included in the Service Plan for three phrases. At the Board's request, Mr. Burgeson offered further testimony regarding the siphon technology,which is a gravity-forced main, for which the energy is created off a motor. He stated this type of system has been in service for hundreds of years,and there are provisions for cleaning,and maintenance. He further stated SVSD currently has siphon systems in use,as has Johnstown. Responding to Commissioner Geile, Mr. Burgeson stated if the siphon system were not to be effective, a pump or lift station could be constructed. Chair Jerke commented that Mead would need the same resources,fees,and similar facilities in order to provide the service. Responding to Commissioner Vaad regarding the $72 million improvement fee SVSD would need, Mr. Burgeson stated the only fee is the $1,750, plus $5,500 to SVSD. He stated there may be a rebate on some of that, after the Intergovernmental Agreement with SVSD has been formalized. Mr. Collins stated that, in many discussions with SVSD,additional costs have never been indicated;it is Mead that somehow is projecting additional costs. Responding to Commissioner Vaad regarding the obligation to serve when a 208 boundary is assigned,Mr.DuBois stated there are no time limits included,and the boundaries are established based on what the community has included, if no other municipality is interested. He stated there is no reason the boundaries cannot be changed. Responding further, Mr. DuBois stated if two parties come together with a proposal about changing boundaries,the association board makes a decision regarding that proposal. Mr. DuBois stated when Mead asked for the expansion in 1993, there was no other opposition in the area,therefore,it was granted. Responding to Commissioner 2005-0260 SD0094 HEARING CERTIFICATION - PROPOSED SERVICE PLAN, EAST 1-25 SANITATION DISTRICT PAGE 11 Geile, Mr. Collins stated the property owners who are proponents of the district are 100 percent of those included in Phase 1. Commissioner Vaad referenced an earlier statement by Mr. Maas that he had discussed this with him and other staff,and Commissioner Vaad clarified that,since this is a quasi-judicial process,he gave no advice or indicated in anyway his intention or how he might ultimately act,and he was only kept informed about the timing and process the proponents were going through. Responding to Commissioner Geile,Mr.Barker referenced staff comments and reviewed Section 32-1-203.2,2.5, and 3, where the statute lists things for which the Board shall disapprove, may disapprove, or conditionally approval, and he discussed the reasons why he feels conditional approval would be appropriate. He reviewed staff comments,which includes the specific criteria to be used for action on the Service Plan, indicating testimony has been heard to support both sides of the question. Regarding the Condition for Approval, Mr. Barker read Section 4 of the Draft Resolution, which contains the condition,and Commissioner Vaad requested a recess for staff to make copies of the resolution. (Recess to copy resolution.) Upon reconvening, Mr. Collins indicated Section 3.D should state". . .will incur general obligation bond indebtedness", and Section 4 should state "Any Petition to the Weld District Court. . ." Commissioner Vaad stated regarding Section 3,he finds in the affirmative for Subsection A,since the case has been made for both sides that there is definitely is a need for services in this area, although Mead proposes to provide it sometime in the future,while the applicant proposes to provide it sooner; Subsection B, he agrees with the goals of water quality agency to stop the proliferation of septic systems,since that is the alternative;Subsection C, he referenced the Caldwell study,as well as written testimony from Hanifen Imhoff,which indicated it is an economical way in which to provide services; Subsection D, this is an alternative way to avoid creating general obligation indebtedness. Commissioner Vaad stated Subsection E comes down to a reasonable time on a comparable basis and, since it has already been seven years since the water quality meeting including this area in the Mead 208 area,and nine to eleven years before the projected build-out by Mead, he does not find it to be a reasonable time with Mead providing services,therefore, he finds in the affirmative. Regarding Subsection F, Commissioner Vaad stated whether the facilities and service standards are compatible would fall under State purview, as to what the condition of the water must be when it enters a waterway,therefore, it is decided by State officials. He stated that for Subsection G,Weld County's current Comprehensive Plan does show it as an agricultural area and our plan does not show urbanized areas in unincorporated Weld,generally because of the lack of sanitary sewer and water facilities;however,the County does allow minor subdivisions and PUD arrangements to allow property owners to use their property to its best advantage. For Subsection H,Commissioner Vaad stated if Mead could do it right away it would serve the area,and the applicants do propose to provide it right away; however, even the letter from Mead to the landowners makes it difficult to know when they might expect service, even if it is a will serve commitment. Commissioner Masden stated he is largely in agreement with Commissioner Vaad's comments. He made the same findings as Commissioner Vaad, and stated he agrees with the favorable approval of the Planning Commission,which was unanimous. In looking at the cost,he said it would be more beneficial for the District to phase it in. 2005-0260 SD0094 HEARING CERTIFICATION - PROPOSED SERVICE PLAN, EAST 1-25 SANITATION DISTRICT PAGE 12 Commissioner Geile stated he agrees, although he does have concerns about the economics, financing,and indebtedness for Mead to handle this project. He stated there is no space to deal with overruns,and he is concerned about Mead's ability to complete a treatment plant. Commissioner Geile stated this has been in the 208 planning process for a long time, and, although there are no specific dates in the plan until growth leverages the completion;however,there has been testimony from many property owners who have presented their frustrations about getting anything done with Mead. He stated the testimony by the City Manager at the Planning Commission which discusses Mead's Comprehensive Plan to be its way of controlling growth, indicates it will make the entire process very complex and difficult to get approval. He stated his biggest concern is what the reaction of NFRWQ will be when this application is made,since members of the association make the boundary decisions,this may be the first time a Special District has requested its own service area,and the application will be strongly opposed by the Town of Mead. Commissioner Geile stated that may make it very difficult to get approval, therefore, it makes sense to move the application ahead by one step;however, he feels it will be difficult to get the 208 boundary change,which is why it is important to have the Condition included. Commissioner Long stated he agrees with the comments by the other Commissioners, and he referenced the repeated testimony that there is a projected need for service in this area at this time, and that two entities,Mead and the proposed district,both want to serve the area. He stated Mead's testimony indicated growth needs to occur in a consistent, constant,and timely fashion to be able to retire the debts on the service itself; however, the annexations having to be approved by the voters makes it difficult to control that growth in a consistent fashion. Therefore, without a better mechanism, Mead would not be able to properly retire the debt. Commissioner Long stated with opportunity, it would be easier for the new district, using SVSD for treatment, to handle the debt. Commissioner Geile stated that,in this entire area,it has already been determined that over the next few years there will be over 200,000 additional people,which will require an assortment of creative mechanisms to fund the infrastructure; and that Metropolitan Districts may very well be the wave of the future for providing services. Chair Jerke stated he concurs with the stated findings. He stated that the Planning Commission process is a good one, and it voted unanimously in favor of this Service Plan, therefore, he has added confidence in the Plan. Chair Jerke stated his main encouragement to support the Plan is the property owners who want to have a level of self-determination who feel,for whatever reason, somewhat stalled in the process of being able to further develop their property. He stated they are located very well on the interstate; they want to be able to have development capability, and are willing to invest their hard earned dollars to achieve that end. He stated the role of self-determination is what built this country, although the need is not always current, but is projected; and the desire to develop is certainly paramount to his thinking that the self-determination of these individuals should allow them the ability to do so. Mr. Barker indicated that this is a sanitation district,although some comments were made regarding metropolitan districts. Commissioner Masden clarified that if the 208 boundaries are not changed, the district will dissolve within one year. Commissioner Vaad stated he fully respects the honorable intentions of the officials from Mead,and his interpretation is based on land use issues,the need for the system,the viability of the proposal, and it being brought forth as soon as possible. Therefore, he moved to approve the Service Plan 2005-0260 SD0094 HEARING CERTIFICATION - PROPOSED SERVICE PLAN, EAST 1-25 SANITATION DISTRICT PAGE 13 for the Proposed East 1-25 Sanitation District, based on the recommendations of the Planning Commission. The motion was seconded by Commissioner Masden. Mr. Barker ascertained the motion and second includes the Condition written in Section 4 of the Draft Resolution, as well as the two corrections discussed by Mr.Collins,and stated he will provide the language for Section 3.D On a call for the vote, the motion carried unanimously. There being no further discussion, the hearing was completed at 3:00 p.m. This Certification was approved on the 14th day of February 2005. APPROVED: BOARD OF COUNTY COMMISSIONERS WELD COUNTY, COLORADO ..�w,. William H erke, Chair 186 t , lerk to the Board O® 4Mr. e 91 / / M�tfe Pro Tem ty Clerk to the Board D E. L n TAPE #2005-10, 11, and 12 Robe D. Masdep� 44.4 Glenn Vaad .� 2005-0260 SD0094 EXHIBIT INVENTORY CONTROL SHEET Case SD0094 - EAST 1-25 SANITATION DISTRICT Exhibit Submitted By Exhibit Description A. Planning Staff Inventory of Items Submitted B. Planning Commission Resolution of Recommendation C. Planning Commission Summary of Hearing (Minutes 12/21/2004) D. Clerk to the Board Notice of Hearing E. Town of Mead Comments re: Opposition (2/10/2005) F. Planning Staff Posting Certificate G. Applicant Certificate of Publication/Mailing H. Applicant Mead WWTP Facilities Study I. Applicant Mead Debt Capacity Analysis J. Gary Woods Power Point Presentation (9 pages) K. Scott Houston Letter of support (2/14/05) L. Peter Zemkee (Mead) 2/11/05 "Will Serve" letter M. Peter Zemkee (for Mead) NFRWQPA Plan, 2003 update N. Planning Staff Three overhead transparencies O. P. Q. R. S. T. U. V. Hello