HomeMy WebLinkAbout20041697 RECORD OF PROCEEDINGS
MINUTES
BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORADO
JUNE 21, 2004
TAPE #2004-26
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, June 21, 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 Long moved to approve the minutes of the Board of County Commissioners
meeting of June 16, 2004, as printed. Commissioner Jerke seconded the motion, and it carried
unanimously.
CERTIFICATION OF HEARINGS: Commissioner Long moved to approve the Certification of Hearings
conducted on June 16,2004,as follows: 1)USR#673,Catherine Cariaso;2)USR#1468,Scott and Nancy
Vermilyea,do Brega Winters, P.C.; and 3) COZ#1053, Mary and George Carlson Revocable Living Trust,
do Team Engineering. Commissioner Vaad seconded the motion, which carried unanimously.
AMENDMENTS TO AGENDA: There were no amendments to the agenda.
PUBLIC INPUT: No public input was given.
CONSENT AGENDA: Commissioner Long moved to approve the consent agenda as printed.
Commissioner Geile seconded the motion, and it carried unanimously.
WARRANTS: Donald Warden, Director of Finance and Administration, presented the following warrants
for approval by the Board:
All Funds $1,247,284.86
2004-1697
BC0016
Commissioner Jerke moved to approve the warrants as presented by Mr. Warden. Commissioner Long
seconded the motion, which carried unanimously.
BIDS:
PRESENT AND APPROVE WELD COUNTY GARAGE BUILDING DEMOLITION BID-DEPARTMENT OF
FINANCE AND ADMINISTRATION: Pat Persichino, Director of General Services, read the names of five
vendors who submitted bids into the record,and requested emergency approval to avoid interruption of the
construction schedule. Responding to Commissioner Vaad, Mr. Persichino stated the demolition will not
begin until after July 4th activities are concluded. Commissioner Vaad moved to accept the low bid from
Hillen Corporation, in the amount of $168,700.00, on an emergency basis. The motion, which was
seconded by Commissioner Jerke, carried unanimously.
NEW BUSINESS:
CONSIDER TEMPORARY CONSTRUCTION EASEMENT FOR IMPROVEMENTS TO WCR 47 AND
AUTHORIZE CHAIR TO SIGN-THEODORE AND DOROTHY EHRLICH: Frank Hempen,Jr., Director of
Public Works, stated this easement is necessary for the construction of Weld County Road 47 between
Weld County Roads 50 and 54. He stated the cost is $500, and he recommended approval.
Commissioner Long moved to approve said easement and authorize the Chair to sign. Seconded by
Commissioner Geile, the motion carried unanimously.
CONSIDER TEMPORARY CONSTRUCTION EASEMENT FOR IMPROVEMENTS TO WCR 47 AND
AUTHORIZE CHAIR TO SIGN-LLOYD AND RUTH RENS: Mr. Hempen stated this is another easement
for the same project as the previous item, and the cost is also $500. He recommended approval.
Commissioner Jerke moved to approve said easement and authorize the Chair to sign. Seconded by
Commissioner Long, the motion carried unanimously.
CONSIDER TEMPORARY CLOSURES OF WCR 2 AT WCR 47 AND WATKINS AT EAST 160TH
AVENUE: Mr. Hempen stated this closure will be effective July 6, 2004,through approximately August 20,
2004,to replace a structure at Box Elder Creek,which is currently structurally deficient. He stated staff will
be increasing the size of the structure, to six-foot shoulders and twelve-foot lanes. Responding to
Commissioner Jerke, Mr. Hempen stated there is not much irrigation water in the Creek, it is basically for
storm water drainage. Commissioner Jerke moved to approve said closure. Seconded by Commissioner
Vaad, the motion carried unanimously.
Responding to Commissioner Vaad, Mr.Warden explained that when temporary construction easements
are purchased,as in the first two items of business listed above,the County is required to file a 1099 report
for the payment if it is $600.00 or more. He further explained that if a property is condemned there is no
income tax on the amount received; however, this type of case does not have the same shelter with it.
CONSIDER ENTRY UPON VARIOUS LANDS BY WELD COUNTY VEGETATION MANAGEMENT
SPECIALIST: Mr. Hempen stated this will allow staff to continue the process which could result in his
entering the six properties listed in the draft resolution. Commissioner Long moved to approve said entry.
Seconded by Commissioner Jerke, the motion carried unanimously.
CONSIDER AGREEMENT FOR DONATION OF EASEMENT FOR POUDRE RIVER TRAIL AND
AUTHORIZE CHAIR TO SIGN- HILLTOP AQUATIC INVESTMENTS, LLC, DBA RAINDANCE AQUATIC
INVESTMENTS, LLC: Bruce Barker, County Attorney, stated this agreement is for two properties on the
south side of Windsor. He stated the principal has signed the agreements, and he recommended approval.
Responding to Commissioner Geile, Mr. Barker stated this is a donation to the County, and the action is
accepting the donation. Responding to CommissionerJerke, Mr. Barker stated when the Poudre River Trail
was first set up, it was determined that the county and each municipality would hold all the property, and
Minutes, June 21, 2004 2004-1697
Page 2 BC0016
the Trail Committee would be non-profit and would not hold any assets. Mr. Warden stated there were
some immunity issues which compelled that decision. Commissioner Vaad moved to approve said
agreement and authorize the Chair to sign. Seconded by Commissioner Geile, the motion carried
unanimously.
CONSIDER VETERANS SERVICE OFFICER'S MONTHLY REPORTS AND CERTIFICATIONS OF PAY
AND AUTHORIZE CHAIR TO SIGN-DECEMBER 2003 THROUGH MAY2004: Mr.Warden stated these
are the routine reports that are submitted to the Colorado Department of Military and Veterans Affairs,which
are processed twice each year. Commissioner Geile moved to approve said reports and authorize the
Chair to sign. Seconded by Commissioner Long, the motion carried unanimously.
PLANNING:
CONSIDER CANCELLATION AND RELEASE OF COLLATERAL FOR SITE PLAN REVIEW #363 -
LYNDAL STEEL BUILDINGS, C/O ARI GOLDBERG: Chris Gathman, Department of Planning Services,
stated a site investigation was conducted by Kim Ogle on June 15, 2004. Mr.Ogle recommended release
of said collateral. Don Carroll, Department of Public Works, stated he agrees with the release of collateral.
Commissioner Vaad moved to approve said release of collateral. Seconded by Commissioner Geile,the
motion carried unanimously.
CONSIDER ZONING PERMIT FORA MOBILE HOME,ZPMH#191 -DEARALAND MARY BEDDO:Wendy
Inloes, Department of Planning Services, stated staff is requesting this matter be continued to June 28,
2004, at 9:00 a.m. The applicant has hired an attorney,who has requested the additional time to review the
case. Responding to Commissioner Vaad, Ms. Inloes stated a new sign was posted on Friday, June 18,
2004, displaying the correct date for the hearing. Commissioner Long moved to continue ZPMH#191 as
requested by staff. The motion, which was seconded by Commissioner Vaad, carried unanimously.
CONSIDER PROBABLE CAUSE HEARING CONCERNING USR#729-LYSTER FAMILY FARMS/PATINA
OIL AND GAS CORPORATION: Mr. Gathman stated this injection well facility was originally approved by
the Board of County Commissioners on April 30, 1986. Through a complaint and several discussions with
Patina Oil and Gas Corporation (Patina), it was determined that the site had not been in use for
approximately five years. Pursuant to the Weld County Code, a Use by Special Review facility which has
not been used for three or more consecutive years is considered to be inactive; therefore the Probable
Cause was initiated. Through correspondence and discussion with Dave Siple of Patina, staff has
determined the applicant would like to extend the Use by Special Review under its original parameters,
which is two or three truck trips per day; however, they may later request an amendment to increase the
truck trips to 15 or 20 per day. Mr.Gathman stated that,since Department of Planning Services staff does
not have the authority to extend a Use by Special Review Permit,the matter was brought before the Board.
Responding to Commissioner Geile, Mr.Gathman stated the request is to extend the current Use by Special
Review Permit to allow the applicant enough time to file an application to amend the number of truck trips.
Mr. Carroll stated he visited the site on Friday and found the access is onto Weld County Road 64,which
is a local gravel road, then east to Weld County Road 47,which is paved. He stated the route does need
improvements to accommodate two-way traffic and dust suppression. Mr. Carroll presented pictures of
the site with a memorandum regarding his concerns, marked Exhibit A. Responding to Commissioner
Geile regarding the tanks, Dale Boucher, Conquest Oil Company, stated they have no financial interest in
the tanks at this time; however, if the permit for the facility is increased to 15 or20 trucks per day, Conquest
intends to purchase the facility to use as a back-up. Mr. Boucher stated Patina will apply for the amendment
to the permit, and Conquest will not purchase the property unless that amendment is obtained. Mike
Wesniak,who represented Patina,stated this case initiated from complaints,due to environmental issues
which have now been resolved. He stated staff addressed this as a Probable Cause because the facility
had not been used for five years; however,they have, in fact, been using the facility, although they are not
injecting a lot of water. He stated everything is still viable, the equipment is in working order, and nothing
Minutes, June 21, 2004 2004-1697
Page 3 BC0016
has been abandoned. Therefore, Mr. Wesniak stated, the applicant would like to continue with Use by
Special Review#729 in place as it is. He stated earlier this year, the applicant contacted the Oil and Gas
Conservation Commission, and those issues have been resolved. He discussed the proposed purchase
by Conquest Oil,and stated Patina intends to apply for an amendment to the permit to increase the number
of trucks to 15 or 20. He stated at that time he will negotiate the improvements to the road, and other issues
expressed by Mr.Carroll. Mr.Wesniak stated the facility has not been abandoned; it is in good shape and
can be operated as necessary. Commissioner Jerke warned the facility is close enough to the Greeley-
Weld County Airport, that if the Use by Special Review Permit is opened up to public input through an
application for amendment,the AirportAuthoritywill likely request, at a minimum,fencing and security. He
stated the facility is very close to a cul-de-sac with explosive material,which will cause concern for some.
Mr.Wesniak stated the tanks at the facility hold 110 barrels,which are filled with 99 percent water,thus they
are more for water storage than oil. He stated the water is eventually injected into the well. Dave Siple,
Patina, stated the owner of the surface is Lyster Family Farms, and the facility is operated through a lease
agreement between Patina and the Lyster family. He stated it has never been the intention of Patina to
abandon the facility. He stated Patina has discussed selling the facility to Conquest; however, an
agreement has not been finalized. Scott Reasoner,also from Patina,discussed the operation of the facility
over the last few years. He explained this is a water disposal facility, and water is trucked to this site from
other wells. He stated a small amount of oil separates from the water and is disposed of,and the remaining
water is injected into wells. Mr. Reasoner presented three pictures of the site, marked Exhibit B,and stated
the reason the well has not been injected is because of an agreement with Mr. Boucher. Mr. Reasoner
stated this facility will continue to act as a backup facility, to be used only if another well is unable to take
the water. He stated all the equipment is in place, nothing has been moved; the surface has been
maintained; and the well bore is good. Mr. Reasoner stated it will probably be needed in the future, since
disposal facilities are getting tight and most operating facilities are being fully utilized. He stated there were
times this could have been used in the spring; however, the environmental issue had to first be resolved.
Because of the high number of operations per week and the amount of water being recovered as a result
of frac operations in the area, the need for this facility is great. Responding to Commissioner Vaad
regarding an electric meter, Mr. Reasoner stated there is a meter on the property,and the facility has been
kept in compliance to allow it to be utilized upon need. Mr. Reasoner also verified for Chair Masden that
there is also a record of the number of barrels having been injected. Norman Lyster, owner of the surface
property, reviewed the area and nearby residences. He stated he owns 160 acres in this section and 40
more acres in the section just south of the facility. He stated he has always had access to Patina, and he
would frequently watch the operation, since he was interested in knowing how the facility operated. He
spoke of the recent complaint, and stated the individuals who were watching his property for him were the
ones who complained, and they reported a lot of activity happening. After speaking with them, Mr. Lyster
contacted Patina,who explained what was happening, and he is no longer concerned about the property.
Mr. Lyster stated anytime damage happened or maintenance was required, it was taken care of
immediately. Specifically, he mentioned one time when the office building was damaged by the wind and
was immediately repaired. Mr. Lyster also stated since the cul-de-sac was developed, traffic on Weld
County Road 64 has dropped to almost nothing. He reiterated he has always had access to Patina
regarding the facility, and all problems have been readily solved; therefore, the Use by Special Review
should continue. Mr. Boucher stated Conquest is greatly interested in purchasing the facility after it is
amended to a reasonable number of trucks; however, they will only use it as a backup facility. He stated
Mr. Lyster negotiated a good royalty,therefore,they will only use it if there is no other place to put the water.
Because of the current level of operations throughout the area, the amount of water for disposal requires
as many facilities as possible to be available.
Mr. Wesniak stated Patina has not abandoned the facility, although it may not have been used to its full
potential. He stated the Use by Special Review Permit has provisions for reclamation in the event the facility
is closed; however, none of that has been done,and there is no intent to abandon the facility. He requested
the Board declare the permit valid and extend it, allowing Patina to move forward with the amendment. If
Minutes, June 21, 2004 2004-1697
Page 4 BC0016
there is a time period involved, Mr.Wesnial requested at least a year to allow adequate time to modify the
permit. Responding to Commissioner Geile, Mr.Wesniak stated there is a three-phase bank meter for the
electricity; although Patina is also paying a demand charge for utilities. He stated there is a light switch in
the building,therefore, it would have some small amount of electric usage, and the company is current on
bills. Responding to Commissioner Vaad, Mr. Gathman stated if staff knew there was limited use of the
building,the decision could be administrative;however,it appeared the facility had not been used for three
years, therefore he initiated this process. Responding to Commissioner Vaad, Mr. Barker stated this is a
Probable Cause Hearing,and if the Board finds it more probable than not that the use has been abandoned,
the next step is to set it for a Show Cause Hearing. He stated the key issue is whether the evidence heard
is sufficient to find probable cause. However, the Board can find otherwise, and if there is no probable
cause, the company is basically granted another three years in which to operate. Commissioner Vaad
stated it is his inclination that there is evidence that there has been continual use; however,without a draft
resolution he is uncertain of the action the Board should take. Mr. Barker stated if that were the case, the
Board would notfind probable cause that there has been discontinuance of the use fora consecutive three-
year period. Responding to Chair Masden, Mr. Barker stated the Board should act in the negative.
Therefore,Commissioner Vaad moved to notfind probable cause to support the abandonment of the facility.
He stated that,even though pumping may not have occurred,there has been enough activity at the facility
to indicate use, the intention of Patina is clearly stated to operate the facility as a backup, and because of
its availability, there is a need for the facility. The motion, which was seconded by Commissioner Long,
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.
••� g no further business, this meeting was adjourned at 10:00 a.m.
L` I ! `
1 �� BOARD OF COUNTY COMMISSIONERS
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' ' A j�•� T: �,JI ntdGf'
`,1 Robert D. Masden, Chair
�to ��-�r� Clerk to the Board
�� William H. Je , Pro-Tem
BY: j/
eputy Clerk to the Board
M. eile
David E. Long
EXCUSED DATE OF AP ROVAL
Glenn Vaad
Minutes, June 21, 2004 2004-1697
Page 5 BC0016
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