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HomeMy WebLinkAbout20041253.tiff RECORD OF PROCEEDINGS MINUTES BOARD OF COUNTY COMMISSIONERS WELD COUNTY, COLORADO APRIL 28, 2004 TAPE #2004-20 The Board of County Commissioners of Weld County, Colorado, met in regular session in full conformity with the laws of the State of Colorado at the regular place of meeting in the Weld County Centennial Center, Greeley, Colorado, April 28, 2004, at the hour of 9:00 a.m. ROLL CALL: The meeting was called to order by the Chair and on roll call the following members were present, constituting a quorum of the members thereof: Commissioner Robert D. Masden, Chair Commissioner William H. Jerke, Pro-Tem Commissioner M. J. Geile Commissioner David E. Long Commissioner Glenn Vaad Also present: County Attorney, Bruce T. Barker Acting Clerk to the Board, Carol A. Harding Director of Finance and Administration, Donald D. Warden MINUTES: Commissioner Vaad moved to approve the minutes of the Board of County Commissioners meeting of April 26, 2004, as printed. Commissioner Jerke seconded the motion, and it carried unanimously. AMENDMENTS TO AGENDA: There were no amendments to the agenda. PUBLIC INPUT: Fritz Bucklen, Bucklen Equipment Company, expressed his concerns regarding the Stormwater Management Fee,for which he received notification for$909.53. He stated no one realized how much this would amount to before it was approved. In response to Mr.Warden,Mr. Bucklen stated he does not like the fact that he is placed in the position of having to spend time appealing the fee. He stated the Federal government has overextended itself in this area,and it is unconstitutional. Mr.Warden stated the County had to appeal the fee for its own gravel pit areas, and that process does substantially reduce the fee. Mr. Bucklen stated he should not have to appeal the fee, and the Board of Commissioners needs to understand what is happening. CONSENT AGENDA: Commissioner Vaad moved to approve the consent agenda as printed. Commissioner Jerke seconded the motion, and it carried unanimously. PRESENTATIONS: RECOGNITION OF SERVICES, PLANNING COMMISSION-JOHN HUTSON AND TIM TRACY: Chair Masden read the certificates recognizing Jim Hutson and Tim Tracy for services on the Planning Commission. Neither were present to receive their awards. 2004-1253 BC0016 S- /7 -mot/ CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING FROM GOVERNMENT FINANCE OFFICERS ASSOCIATION-ACCOUNTING STAFF: Chair Masden read the Certificate of Achievement being presented to the Accounting staff for excellence in financial reporting, presented by the Government Finance Officers Association to government units and public employee retirement systems whose Comprehensive Annual Financial Reports (CAFRs) achieve the highest standards in government accounting and financial reporting. Claud Hanes,Controller/Treasurer,and barb Eurich,and Janet Reichert,Accounting Department, were present. Commissioner Geile stated this award reflects the caliber of excellence provided by staff, including updates to established procedures. Mr. Warden stated this award has been received by Weld County for 24 consecutive years, and this was the first county in Colorado to ever receive the award. He also noted that this year was difficult because of conversion to the GASBY-34 format, and it took a lot of staff effort, requiring a major change to the accounting procedures and accounts regarding how to handle and report fixed assets. Chair Masden stated government is a big business and it has to run correctly. Mr. Hanes stated he concurs with Mr. Warden's statements, and he expressed his appreciation to staff for their efforts and involvement. COMMISSIONER COORDINATOR REPORTS: There were no Commissioner Coordinator Reports. BIDS: PRESENT AND APPROVE ASBESTOS AND REGULATED MATERIALS ABATEMENT BID - DEPARTMENT OF FINANCE AND ADMINISTRAITON: Pat Persichino, Director of General Services,read the names of two vendors who submitted bids into the record, and stated this is for the project of demolishing the Weld County Garage building. Mr. Persichino stated this is for asbestos and regulated materials abatement,and he recommended the low bidder, LVI Environmental Services. Responding to Commissioner Geile, Mr. Persichino stated this is for tanks and boilers and all the miscellaneous materials that are present,and that the underground fuel tanks will be removed during Phase II. Commissioner Vaad moved to accept the low bid,in the amount of$86,500. Commissioner Jerke seconded the motion,which carried unanimously. APPROVE COUNTY COURTS AND WORK RELEASE PHASE II, DEPARTMENT OF FINANCE AND ADMINISTRATION: Mr. Persichino stated this is for the project to convert the old Sheriff's Office and Jail areas to Court space. He recommended approval of the low bid from Sun Construction and Design,in the amount of$2,731,708.00. Commissioner Vaad moved to accept the low bid, as recommended by staff. The motion, which was seconded by Commissioner Geile, carried unanimously. Responding to Commissioner Jerke, Mr. Warden stated this amount falls slightly below the budgeted projection of $3,000,000; however, he cautioned there may be minor change orders due to unknown conditions that arise, such as the elevator. WARRANTS: Donald Warden, Director of Finance and Administration, presented the following warrants for approval by the Board: All Funds $119,917.88 Electronic Transfers - All Funds $2,729,471.11 Commissioner Long moved to approve the warrants as presented by Mr.Warden. Commissioner Jerke seconded the motion, which carried unanimously. Minutes, April 28, 2004 2004-1253 Page 2 BC0016 NEW BUSINESS: CONSIDER JUVENILE ACCOUNTABILITY BLOCK GRANT FOR LOCAL JUVENILE CRIME ENFORCEMENT COALITION AND AUTHORIZE CHAIR TO SIGN: Ken Poncelow,Sheriff's Office,stated the details of the grant are not yet available; however, this approval is for the intent to accept funds. Mr. Warden stated the grant was discussed in a work session on April 26,2004. Commissioner Long moved to approve said grant and authorize the Chair to sign the Intent to Accept Funds Form. Seconded by Commissioner Vaad, the motion carried unanimously. CONSIDER PETITION FOR ABATEMENT OR REFUND OF TAXES-DEBORAH RYAN: Mike Sampson, Assessor's Office,recommended denial of the petition and stated no useful information was included with the request for abatement. He stated the petitioner is asking for the value to be based upon a Board of Equalization decision when Sun Homes owned the property. He stated this is a mobile home purchased in November of 2002; therefore, any pro-ratio of taxes should take place upon closing. He stated the property is not assessed based on whether or not taxes were previously assessed. . Deborah Ryan, property owner, stated she was told by Sun Homes that the taxes would be pro-rated; however, mobile homes sitting on their lot are not assessed until they are sold. She purchased the home in November,and indicated her documentation includes the Board of Equalization (BOE) petition, filed by Sun Homes for Account #M0154403, indicating the Board of County Commissioners adjusted the value to zero. She referred to a letter dated November 7,2003,from James Peyton, Attorney for Sun Homes, stating under the provisions of Section 39-5-204, C. R. S.,the tax assessment against Ms. Ryan should have been pro- rated so that she was only required to pay property tax for that portion of the year she was the owner. Commissioner Jerke stated he recalls the Board of Equalization discussion,and that the Board agreed that mobile homes on the sales lot were comparable to demonstrators,and the real estate taxes do not kick in until the property is purchased. Mr.Sampson stated this is an altogether different issue,and if Sun Ho'mes were now the petitioner,he would argue that issue;however,Sun Homes is no longer the responsible party for the mobile home and refunds or abatements cannot be granted to someone other than the one who was responsible for paying those taxes. Mr. Sampson stated that, since she purchased the property in November of 2002,any pro-ratio between Sun Homes and Ms.Ryan should have taken place upon closing, and she does not have the legal status to file an appeal for abatement against the property prior to her purchase. Bruce Barker,CountyAttorney,stated the BOE appeal presented by Ms.Ryan was one of three mobile homS which were appealed by Sun Homes. He stated it is the buyer's obligation to make certain that pro-ration of taxes occurs at closing,and to ensure the taxes have been paid for the entire year or the buyer is receiving credit for it, and will later have a bill to pay. Mr. Barker stated Ms. Ryan purchased the property in November,2003,and Sun Homes did not appeal to BOE until the following year on three other mobile homes; therefore, he agrees with Mr. Sampson. Mr. Sampson reiterated pro-ration should have occurred at closing,and it is not appropriate to allow someone other than the property owner to appeal the taxes for that period of time. Ms. Ryan reiterated that once sold, the 2002 taxes went on the record, and she did not see that tax record. She stated she has paid half of her2003 taxes; however,she indicated the procedure is very confusing and she relied upon the information given to her by Sun Homes and Mr.Peyton. Ms. Ryan stated she cannot understand the statutes and information available regarding this issue,and it has been very confusing and expensive to try to appeal the taxes. Commissioner Jerke stated the Cdunty acts as an extension of the State government in matters such as taxation. Responding to Commissioner Geile, Ms. Ryan stated she relied on the information of Sun Homes and Mr. Peyton regarding the closing statement and the fact that they told her no taxes were due. Ms. Sampson stated Sun Homes is giving incorrect information,and stated the County does tax the mobile home park for land and that lot homes are taxed. He stated Sun Homes knew there was an outstanding tax bill, however, they did not include the amounts in the closing. Unfortunatelythe taxpayer gets stuck with the bill because the developer or mobile home owner did not pay. Responding to Mr. Barker, Mr. Sampson stated 2003 was the first time Sun Homes appealed its taxes based on this argument, and Sun Homes owned the mobile home for ten months. Mr. Sampson stated Sun Homes was making an assumption that this assessed value would be adjusted;however, if an individual owns ten properties,he cannot assume the same determination will be Minutes, April 28, 2004 2004-1253 Page 3 BC0016 made in all ten cases. Each case must be individually filed and go through the process. Commissioner Jerke stated that with the assertion made by Sun Homes before the precedent of the BOE decision last summer, and.with the credits and debits shown on the closing statement and the tax statement showing the taxes due from the 2002 calendar year, Ms. Ryan seems to have a very strong case to collect the back taxes from Sun Homes. He stated he does not want to open the issue up any further than was discussed last summer in the Sun Homes appeal when the Board was focused on the matter, and he does feel it appropriate to go back to taxes from the prior year before that case was heard. Commissioner Geile stated the Colorado Real Estate Commission should be notified of the action of Sun Homes,since its responsibility is to insure real estate transactions are handled in a legal and ethical manner. Responding to Ms. Ryan's inquiry, Mr. Sampson stated the taxes are overdue, and explained the fees and penalties assessed. Commissioner Geile moved to deny the petition for abatement. The motion, which was seconded by Commissioner Vaad, carried unanimously. CONSIDER PETITION FOR ABATEMENT OR REFUND OF TAXES-H AND H HOLDINGS,C/O JIM AND MARSHA HARRIS: Mr.Sampson presented a packet,marked Exhibit A,indicating the subject property and five comparable sales,as well as income information. He reviewed the specifics of the comparable sales and stated that,the average of all five sales for improvements only is$207 per square foot. If applied to the subject property of 984 square feet,the improvements value would be$410,688. If the Assessor's value of the land at$101,790 were added,the total value would be$512,478. Mr. Sampson also stated that,the petitioner paid over$200,000 for the land; however, it is currently being assessed at only$100,000. Mr. Sampson stated there is no correlation between a retail space next door and the mini-lube,and the second page after Sale#1 demonstrates that. He stated the petitioner is contending that the business is included in the Big O sale; however, it was property and improvements only. Whether a customer base is included and how much it is worth is intrinsic and cannot be valued. Mr. Sampson stated the value has increased since it was built. He stated that, looking at the income approach, based on sale #1, which is a lease between a third party and a property owner in 1992, at$48,000 per year. Figuring a 33 percent increase in the lease, multiplied by the square feet of the subject property, and divided by a twelve percent capitalization rate, the value comes to $425,240 estimated market value for the subject property. Mr. Sampson further stated the property is currently assessed at$416,000,which includes the land,for which they paid $202,000. Mr. Sampson stated he also looked at the average price per square foot, from an assessment perspective,and determined that the average of all the sale properties is$155 per square foot, and the subject property is at$158 per square foot. He stated the value may not be 100 percent correct; however,no information was received to prove the value was out of line. The information presented by the petitioner was different in the type of business,and there is a very specific difference. Mr.Sampson stated the assessed value is fairly close,and the contention that the property value has not increased is incorrect; therefore,he recommended denial of the petition. Responding to Commissioner Celle,Mr.Sampson stated when using the income approach,no consideration was given to the expenses,since it is a net lease,and all expenses, taxes, and minor maintenance are included in the lease. Marsha Harris,petitioner,stated she strongly disagrees with the statement that the cost of Blue Sky,which is the customer base,does not have to do with the purchase of the business. She stated when they were going through the process of starting a new business, the difference in price of existing businesses with an established customer base was significantly higher. She stated it cost$219,072 to build the building in 1998, and the appraiser she spoke to said commercial real estate increases marginally, or two percent a year. She stated no improvements have been made to the property in the past five years; however, the taxes have increased 62 percent because of the fact that other businesses, located outside of Evans got good prices when sold because of established customer bases. Jim Harris,petitioner,stated the business next door, Big O Tires, had taxes that decreased during the same period of time. He stated the lot size of Big O Tires is approximately the same size, and the building is twice the size. Mr. Sampson stated the construction cost and lot cost is higher than the value currently placed on the property. Responding to CommissionerJerke, Ms. Harris stated the building should be around$200,000,and the land cost includes Minutes, April 28, 2004 2004-1253 Page 4 BC0016 the back lot. Mr. Sampson clarified the petitioners paid$76,000 for the back lot,$202,000 for this lot,and $219,000 for construction of the building,for a total of$421,000 for the subject property. Responding to Commissioner Jerke, Mr. Sampson stated the subject property is currently assessed at $416,000. Responding to Commissioner Geile, Mr. Sampson stated the lot is 16,965 square feet, and Ms. Harris stated the parcels were split for loan purposes. After discussion,CommissionerJerke stated that an actual cost of$421,000 and three of the four comparable sales being above that value does support the value currently placed on the property. Mr.Sampson stated the value of the back lot was reduced because it was not tied to the front and would have to be accessed from 23rd Avenue. Chair Masden stated that apparently the assessment finally caught up with the value placed on the property,and Commissioner Jerke stated, based on the petitioner's figures of what was paid for the property,they have gotten a good deal for the past five years. He further stated the dissatisfaction of property owners is not usually based on the value of a particular property,but on the GallagherAmendment,which requires commercial properties to be assessed at 29 percent. After further discussion, Ms. Harris argued that values have been decreasing, and stated they had the business appraised, and the customer base was valued at$600,000. She stated if sale#4 for$744,700,included even a$500,000 customer base,that was a huge part of the value. Commissioner Geile stated that, using the income approach, he is satisfied the value is fair with a 12 percent cap rate being applied; the value of the land as stated by the Assessor in the area at the time of the assessment being$6.00 per foot; and the value of the building at construction cost of$219,000,the total is$421,000. Therefore, he moved to deny the petition. The motion, which was seconded by Commissioner Jerke, carried unanimously. RESOLUTIONS AND ORDINANCES: The resolutions were presented and signed as listed on the consent agenda. No Ordinances were approved. Let the minutes reflect that the above and foregoing actions were attested to and respectfully submitted by the Acting Clerk to the Board. There being no further business, this meeting was adjourned at 10:25 a.m. (A11 % 4P \ BOARD OF COUNTY COMMISSIONERS ' WELD COUNTY, COLORADO Robert D. Masden, Chair `� . ty to the Boar William H. J e, Pro-Tem B . ��s!v� Deputy Clerk to - Board 77 M. J. ile David . Long Glenn Vaad Minutes, April 28, 2004 2004-1253 Page 5 BC001¢ CITY OF GREELEY DEPARTMENT OF PUBLIC WORKS STORMWATER MANAGEMENT DIVISION r.mk wo,.w uR,rm�e, 1001 9th Avenue, Greeley, CO 80631 (970) 336-4074 I An APWA Accredited Uu ) j Public Works Department f— April, 2004 ' l 1. Service Address: 804 N 25 AV BUCKLEN EQUIPMENT CO 804 N 25 AV GREELEY, CO 80634 Dear Weld County Resident/ Property Owner: Customer#: 043-773751-01 This letter is to provide you with advance notification of your new Stormwater Utility fee that is based on the size and land use of your property. This notification is not a bill. The County Commissioners of Weld County established Greeley Service Area Stormwater Utility and Boundaries, as defined in Weld County Code Chapter 8 Sec. 8-7-10. On January 3, 2003, the Board of County Commissioners and the governing bodies of the City of Greeley, Colorado entered into an Intergovernmental Agreement for Joint enforcement of the Federal Mandated Stormwater Management Programs, to develop, implement and perform the six (6) stormwater management programs listed below: 1. Public Education and Outreach 2. Public Participation/Involvement 3. Illicit Discharge Detection and Elimination 4. Construction Site Stormwater Runoff Control 5. Post-Construction Stormwater Management and 6. Pollution prevention/good housekeeping for municipal operations. The new Stormwater Utility Fee was implemented over a year ago to Greeley residents, and is now being assessed to certain Weld County property owners that are adjacent to or surrounded by the Greeley city limits, as defined in County Code Chapter 8 as the Greeley Service Area Stormwater Utility and are included in the Intergovernmental Agreement. The stormwater utility fee is being imposed on every lot or parcel of land within this service area. T . _Lukenonable and is necessary to fund the operation, maintenance, administration and or a functions of this established service area This utility wiff lso fund the City Of Greeley stormwater f ac t es that may beestla operation, bl shed th nthe administration Greeley Service Area. Per the Intergovernmental Agreement, the City of Greeley will serve as the County's collecting agent for the stormwater utility fees as authorized by Weld County Code Chapter 8. The proceeds from the stormwater utility fee will be retained by the City Of Greeley as full compensation for the management of the programs specified above and in both the Intergovernmental Agreement and Weld County Code Chapter 8. Please review the following property ownership, land use, and square footage information. Remember this is not a bill but it is your opportunity to verify the accuracy of the Stormwater Utility billing information before the first Stormwater bill is sent. Area of Property: 1,568,160 Land Use Description: OTHER Stormwater Utility Fee (per 30 day period): $909.53 Hello