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HomeMy WebLinkAboutMinutes 07/31/03 SPECIAL MEETING JULY 31,2003 Present: Michael Gallagher Am Menconi Tom Stone Diane Mauriello Jack Ingstad Teak Simonton Chairman Commissioner Commissioner County Attorney County Administrator Clerk to the Board This being a Special Meeting the following items were presented to the Board of County Commissioners for their consideration: Public Hearing, Bair Ranch Open Space Purchase Con't. Chairman Gallagher stated this meeting is a continuation of the last public hearing on the Golden Bair Ranch to contribute $2 million dollars towards a conservation easement on the Mountain Parcel within Eagle County. He stated they tabled the previous hearing to give staff time to look for sources of money and to work on other aspects ofthe purchase ofthe property. He asked the staff to layout possible funding sources. Jack Ingstad, County Administrator, stated staffhas several ideas. He stated they looked at potential savings from capital projects, Cooley Mesa Road will not be done and there is an estimated $275,000 in that account. He stated he believes they can take approximately $456,000 from the general fund. Staff believes they will be receiving approximately $100,000 in sales tax to the end of the year. That is a total of$831,000. There is also $125,000 for the design ofa Road and Bridge shop in Basalt that will not be used this year because there is no location available at this time. That is approximately $950,000.00. There is another capital project of approximately $1,000,000 for a day care facility at Berry Creek that will not be started at this time. He stated there is also $1.6 million in the motor pool account in excess of fund balance requirements. Staff would hope that this Motor Pool money would be replaced at some time. That is the proposals that can be presented at this time. The Board could also reduce the fund balance limits that are now in place. Commissioner Menconi asked about the items Mr. Ingstad first mentioned, i.e. the Cooley Mesa Road design. Mr. Ingstad stated the County has an agreement with the Town of Gypsum that has been in place for four years that the County will re-build Cooley Mesa Road. The Town has been agreeable to let that project slide because there is a new interchange going in at the Airport and it does not seem feasible to continue the project without knowing what the interchange will look like. Commissioner Menconi asked if that was a commitment. Mr. Ingstad answered yes and related at some point that will have to be done. The general fund has approximately $456,000.00 that he would feel comfortable releasing at this time. He stated they did have over $2.5 million yesterday but the Health Insurance claims took most of that with the added claims. Sales tax they are pretty comfortable with as sales tax has been running pretty strong. The projections were conservative. He stated the $125,000 was for the Basalt shop. They cannot start designing the shop ;without a location. Commissioner Menconi stated that is roughly $950,000 and then the million with the day care center. Mr. Ingstad stated that was correct. 1 July 31,2003 Commissioner Stone asked about Cooley Mesa Road as this commitment had been made. He asked would this money have to be replaced in the future to meet the commitment. Would this also be true of the day care situation? Mr. Ingstad stated that this would be the case. All of these items would be carried to the 2004 budget. If that money were to go away, this would mean that capital requests would need to be re- adjusted to a certain degree. He stated that some projects would have to be re-prioritized and possibly delayed for a year. Mr. Ingstad stated that there is $250,000 budgeted for summer flights but Kent Myers doesn't believe the County will have to pay these guaranteed amounts because flights have been fuller than expected. The first year efforts with summer flights has been successful. This is not a guarantee however. Commissioner Stone stated that some of this guarantee would still have to be paid out because it is based on empty seats. Would it not be misleading to say none of that money will be spent. Mr. Ingstad stated that is correct. He expected that $150,000 - $175,000 would be coming back. Commissioner Menconi stated that the County has a budget of $70,000,000 and are expecting to finish the year with $43 million in reserve. He asked if $25 million flows to the general fund in 2004 could it be used to pay for the projects that might have to be postponed. He wondered ifin the past when projects were pushed into the next year did the next year's budget include these amounts. Mr. Ingstad stated that since he had been at the County the sales tax collections have been strong. He stated that there is always additional unspent funds available at the end of the year based on expenses coming in lower than originally budgeted. He has always cautioned the Board to be careful ofthis because the economy can always get worse. The County has been run very conservatively based on this concept. He believes that next year will be the same as this year and that there will be sufficient monies next year to fund the County's needs. Commissioner Stone stated that Mr. Ingstad and Mr. Roeper had targeted the appropriate funds balances. He stated there are fund balances that he would not be in favor of tapping, i.e. retirement, insurance reserve, etc. It would be misleading to draw a connection between the fund balances and the ability for them to be able to access those balances. Mr. Ingstad stated he does not want to give the impression that Eagle County is the exception to the rule. He stated he looked at the Town of Vail and Town of Avon budgets and they are operating in a similar fashion. Chairman Gallagher asked the Commissioners to focus their comments on the wisdom, value and benefit of purchasing the development rights. Commissioner Stone stated that if there is a decision by the Board to move ahead with this expenditure, that specific routes be laid out for going forward. Chairman Gallagher concurred. He stated there appears to be funds available if the Board decides to go forward. Commissioner Stone stated in an effort to pursue this with a positive outcome and in the spirit of full disclosure, he will ask a few more questions. He stated even though he and Mr. Bair are friends and go to church together, his comments are not meant personally. He has a duty as an elected official he has a duty to protect the financial interests of the County. He stated that he was disappointed that members of the public chose to make personal attacks on him. He believes it is necessary that the people of Eagle County know what they are spending their money on. He asked for full disclosure of the transaction details. He asked Mr. Bair what the purchase price of the property is and how that is going to be taken care of, including his brothers property. IfMr. Bair chooses not to tell the public now, the public will have access to this information at a later date through the TD 1000, C.R.S. 39-14-102(4) which the applicant will have to fill out. Tom Macy, Conservation Trust, spoke about the discussion of a public transaction with public funds of $5,000,000. He believes that the transaction between Mr. Bair and his brother is private and he 2 July 31,2003 didn't think it was fair to put Mr. Bair on the spot. He stated that information will be public at the time of closing. Commissioner Stone stated this is a public expenditure of public money and the public deserves to know and make sure that they are not buying a "pig in a poke". There should be nothing hidden in this transaction. Craig Bair, applicant, stated that he could not see where Commissioner Stone was coming from. He didn't know what difference it made. He stated that Commissioner Stone was already aware of that information. Commissioner Stone asked about a statement made about whether or not there would be access maintained to the property. He believed the answer was that Land and Water Conservation fund money could only be spent if a public access is maintained. Mr. Macy stated that Land and Water funds are spent for fee and easement acquisitions for federal purchases. They do not require public access. This particular approval for this project had a caveat that there would be public access on the property somewhere. He stated if they look at the map of the 512 acre river parcel that will be owned in fee title as opposed to an easement, by the BLM. There would be access granted for floaters and eventually there may be a foot bridge to that part of the property that is owned by the BLM. Currently there is no foot or car access to that property. As to the mountain parcel, it is thought by several GOCO board members that public access through a working ranch that has hunting in the fall and agriculture during the summer season, it would not be productive to have the public hiking through it. Part of the issue is not just conservation but also an economic sustainable project. The easements promotes agricultural. There will be access. The specific appropriation from the BLM has a caveat that there will be access from somewhere on the property. Commissioner Stone stated the Board needs to see that. He stated he values and trusts the opinion of the County Attorneys more. He asked that this agreement be made available to the County Attorney's office along with the final draft of the easement. He did not know if the County is complying fully with the letter of the law by not allowing access to the Mountain Parcel. Christine Quinlan, Conservation Trust, stated that this requirement is listed in legislation passed in February of2003. She appreciated Commissioner Stone's concern for Eagle County's spending on this project. She believes that it is a BLM obligation to meet that requirement. Commissioner Stone stated that BLM money is ours as well. He stated he wants to assure that this transaction fully complies with the appropriations. Diane Mauriello, County Attorney, responded the challenge is that her office has not had an opportunity to review legislation or other documents. She stated she would like to have the opportunity to look at everything to make sure the County's interest is protected. She believes that it is still possible to move forward. Commissioner Stone stated that there are a lot of things that would need to be reviewed. He expressed concern about implementation and enforcement of the conservation easement. He stated he was in favor of the expenditure on East and West Brush Creek, had a number of caveats. Eagle County should be a partner to the enforcement. Mr. Macy stated there is the BLM and the Federal Land Trust that would perform an annual review of the easement. There are also GOCO standards going into the project. Commissioner Stone requested that Eagle County be able to enforce this easement in the event that the other entities do not. He also asked whether or not there was any language in the current easement to require continuance ofthe sheep ranch operation. Mr. Macy stated that the easement provides for and promotes agriculture and also allows for outfitting and guest ranching which is standard procedure for other national conservation easements. The conservation fund's primary goal is to blend economic realities with conservation goals. He stated they cannot make Mr. Bair run sheep. They do not want to have an easement that does that. They want to have an easement that allows him to have sustainable economic enterprises, such as guest ranching. There are many guest ranches throughout the west that allows this as a very common way to support the 3 July 31,2003 family. That is very much in line with the goals. The conservation fund primary goal is to blend economic reality with conservation goals. This easement does that. It adheres to very strict federal and state standards. Commissioner Stone stated he keeps hearing and reading that this is a working ranch. He is interested in learning more because keeping this property as a working ranch is one of his primary goals. He'd like to find out more about a possible leeway and how much is there, regarding the closing of this transaction. It is his opinion that this request comes at a very difficult time during the fiscal year. He repeated the wisdom of waiting until the open space tax has been collected and wondered if there is any leeway in the closing time. Mr. Macy stated that this could be continued until October. If this $2,000,000 is approved they would immediately go under contract and finalize the draft easement that the Attorney has a copy of. Mr. Bair has agreed to allow to a phase one closing. Phase one would mean that all of the lands in Eagle County would be acquired. The remaining $1.5 million would be raised during the next year and the second phase, the Garfield County portion, would be acquired. Commissioner Stone suggested that Eagle County's money be contingent upon the entire sale happening at the same time. The reason for this is that the majority of the property that is separate from the River Parcel is the property in Garfield County. If not it would be relying on Mr. Macy's word that he could raise the money. He is worried that Mr. Macy might not be able to accomplish this. He believes that Eagle County money should be the last money in. Just as Mr. Macy has insisted that this Board produce the money immediately. In this same manner, he feels it is entirely reasonable to ask Mr. Macy to insure that the entire transaction take place at the same time. A portion of the agreement is just not good enough and they need for the entire agreement to take place. Mr. Ingstad stated that a gentleman from the last hearing suggested he would loan the County the $2,000,000 to get the County to the collection of the open space tax. He stated he believes that is not a good idea for the County. He asked Mr. Macy ifhis organization able to take a $1.5 million dollar loan in anticipation of fund raising or is that inappropriate. Mr. Macy stated a loan would have to be paid back and it is difficult to raise money to payoff a debt. He stated the condition asked for by Commissioner Stone would effectively kill the transaction. Mr. Ingstad stated ifthe Conservation Trust is so confident they will be able to raise the money, they could accept the loan, meet the condition and the County would own the property. Mr. Macy stated he would rather not raise money to payoff a debt. Commissioner Stone asked what the difference was between a direct debt or an indirect debt. He stated Mr. Macy is making a commitment to the Board today that they will be able to raise the money. Now it appears he is not so confident. Mr. Macy stated they are still confident and are willing to go forward and do it and commit to it. Commissioner Stone asked why are they reticent to complete the entire transaction if they are fully confident. Mr. Macy stated once the easement is purchased the ranch is protected. Borrowing the money would mean that it is protected by a loan and they are trying to raise the money to pay back a loan. He is a professional fund-raiser. In his judgment it is not prudent to approach fund raising in this way. He stated that one way to resolve Commissioner Stone's concern is that there would be sufficient money to buy the Eagle County portion and the view corridor from 1-70. Commissioner Stone stated the land that is in Eagle County is almost entirely out of view from 1- 70. He stated lets not conveniently choose our arguments. He stated his suggestion would be to have the entirety of the transaction take place. That is the only responsible thing to do. Otherwise there is no certainty and there could be no enforcement. There is no way to get the County's $2 million dollars back and there will not be a written guarantee. It would be impossible to enforce. Ms. Quinlan added that the Conservation Fund and the Eagle Valley Land Trust had not been sitting back and waiting to raise funds. She felt that GOCO would be able to re-apply for additional funds of approximately $450,000. She stated going back to GOCO in this upcoming grant cycle in 4 July 31, 2003 August and trying to convince them to give them money for this project for the payback of a loan is probably not something they would be successful at. Another source of money is a federal program is the "grassland reserve program." She stated this is something authorized in the 2003 farm bill. They felt there might be between $200,000 to $500,000 available from that program. Ms. Quinlan stated they need to be able to utilize those funds and coordinate with the NRCS to figure out the amount of acres that are in Garfield County that complies with the objective with the objectives of the grassland program. They would still need to coordinate with Garfield County. There is still the need to raise private money. Mr. Macy stated that in 30 years of doing business he had never failed to complete a fund-raising campaign. When he signs a contract with the Bair family there are going to complete it. That is all there is to it. Commissioner Stone stated that if the Commissioners were to go forward without this contingency, which he would be totally against, Mr. Macy should not expect to come back to the Board to request additional monies. He would then be asking the Board to spend money outside of Eagle County for the land in Garfield County. Ms. Quinlan stated they do not contemplate coming back to Eagle County when the open space money is in place. They could not do it anyway because of Garfield County. Commissioner Stone stated he is very disturbed that on one hand they say they are very confident about raising the money but then when provided with a way to close the entirety of the transaction and they make efforts on their behalf to do that, they are then no confident to do that. He has to question that they will fulfill the agreement with Eagle County not having any enforcement capabilities whatsoever. Chairman Gallagher stated that he had not seen the draft conservation easement. He too was concerned about preserving the working ranch versus turning it into a resort. The limitation on the number of buildings that might be developed there, he has no problem with a rancher making money off his property, but if the resort activity, dude ranch, guest ranch was contemplated in the easement as being second to agricultural activity. He would not want to tie anyone down to sheep, cattle, etc, but agricultural activity. Ms. Quinlan stated that the easement allows for both. It says the future use of the property shall be confined to ranching, agricultural and guest ranching. It enumerates a number of components of guest ranching. She stated there is an acknowledgment that thee property has been used for sheep and cattle ranching. She believes, philosophically the goal is to first and foremost protect a working landscape that will be available for livestock production. Chairman Gallagher stated that he had been contacted by people who are in opposition to spending money on this project. The objection was that the open space could not be seen. He is not offended by houses on ridge1ines. His choice to support this effort has been based on what is not there; the impact of the number of dwelling units etc. Whether or not he can see the spaces is immaterial to him. He believes that the impact on the community is important. However he agrees with Commissioner Stone that the portion of the property that can be seen is in Garfield County and seems to be the most important part ofthe property. Garfield County has chosen not to contribute to this project. He feels the real beneficiary is the State of Colorado. There are many more people who drive past the property who are not residents of Eagle County. He State of Colorado and CDOT spent millions of dollars putting 1-70 through there in as nice agreeable fashion as they can. He could imagine that the State of Colorado could say that GOCO money has been contributed. How much GOCO money is being contributed compared to the money Eagle County is being asked for. And where does the benefit lie. He stated he has no influence over that at all but the Senator is present and lets look at a way for more money for this type ofproject. He believes that responsibility with the public's money goes along with being stewards of the land. Ifthere is support of $2,000,000 there needs to be some guarantee that it is going to happen. He knows there is no guarantee that the money will be raised. He does not doubt their ability of raising money but he realizes they do not control everything in the universe and have a guarantee to raise money. He agrees with Commissioner Stone that if they support this is should be 5 July 31,2003 contingent upon the entire property closing at the same time. The date of closing is up to the Bair's, but he believes that the only way to protect Eagle County money is to be able to go to the people and say this is going to happen, the Garfield County portion will not be developed and will not fall out of the mix. Our $2 million dollars is part of $5 million dollars and not part of $390 million. How and when the efforts will succeed in coming up with the rest ofthat money is entirely up to the fund raisers. How and when they can negotiate with Mr. Bair he doesn't know. He is very interested in seeing this happen but has the responsibility is seeing that the entire property happens. He would add a condition that all of the documents, arrangements, assessments, appraisals, etc. be reviewed by the County staff and approved by this Board. He stated he believes that 99% of the work has been done by GOCO nonetheless, they are asking for $2 million dollars from Eagle County. He wants to be able to tell the citizens that it is only after everything has been reviewed. He stated he believes and will make it a condition that Eagle County should be named as a co-owner in any conservation easement and that it should have the ability to enforce the conservation easement as well. Whether all this can happen before the deadline date he puts in their hands. County staff will work diligently to accomplish all that needs to be done to insure this. Commissioner Menconi asked if they were moving towards a motion. Chairman Gallagher stated he is asking for open discussion and moving towards a motion. Commissioner Menconi asked Mr. Macy to speak to the points. He realizes that Mr. Macy made it clear that if all the funds had to be collected by October 1 S\ it would be a deal breaker for preserving Bair Ranch. He stated Chairman Gallagher brought up a couple of other conditions also. Mr. Macy stated that as a matter of course all documents would be provided to each agency. They have provided the conservation easement and appraisal to County staff. Naturally they will provide everything as they continue through the process. As far as Eagle County being named as an owner he felt this was a reasonable request but will have to approach all the agencies. Dealing with the federal government is not easy. Commissioner Menconi stated one of the struggles that he sees is that if this was postponed until the additional $1.5 million dollars the County would lose the state and federal money. Mr. Macy stated he believed GOCO would hang in there but the BLM money is at risk during the fire season. Chairman Gallagher asked why the BLM money has not already been spent in purchasing the river parcels. Mr. Macy stated the appropriation is for the entire project and the landowner is not willing to sell part of the property. Mr. Macy felt that the contingency that the money is raised before October is not a possibility. The transaction outlines that all of the County money will go for the property in Eagle County plus additional acreage in Garfield County. He stated there will be a closing with the County's money. They are not at risk. They will acquire fee title to the river parcel and a substantial portion of the easement. The remaining acreage will be phase 2. The first closing locks in the second closing. He stated they acquire ranches in phases all the time. They are proposing this purchase in two phases, most of which will be taken down in the first phase. They are acquiring 3,277 acres of easement and 512 acres in fee are all in the fist closing. Chairman Gallagher asked what Mr. Macy can do to guarantee the Commissioners that by a date certain they will have a certain amount of dollars to finish the purchase. Mr. Macy stated he could not make such a guarantee. Chairman Gallagher stated he cannot guarantee the people if Mr. Macy cannot guarantee him. He is looking for something to be able to guarantee that the entire ranch would be purchased or Eagle County's money will not be spent. Mr. Macy stated Eagle County's money will be spent in Eagle County. Chairman Gallagher stated the ranch does not stop in Eagle County. The conservation easement does not stop in Eagle County. Simply the money from Eagle County stops in Eagle County. The effort has been publicly, the support has been publicly around the entirety ofthe conservation easement on this 6 July 31,2003 ranch. It is that that he is willing to search to meet Mr. Macy's deadline of $2 million dollars but he needs additional guarantees that the rest of the proposal is going to happen. What if some creative agreement with the owner encumbers the land. He stated they are asking Eagle County to make a bet. He stated with the County's money he only bets on sure things. Mr. Macy stated one of the members of the audience has requested a five minute break to discuss a new approach to this problem. The Board concurred and took a ten minute break. The Board having reconvened asked Tom Macy ifhe had come to a solution to closing the entire transaction at the same time. Mr. Macy responded an anonymous donor came forward and committed the balance of all monies necessary to close the transaction on the Ranch at one time. Commissioner Menconi asked if the individual or agency for the $1 million dollars is acceptable to your needs. Chairman Gallagher stated if collateralized and acceptable with County Attorney, yes. Mr. Macy stated that "we feel in working with excellent leadership of the Eagle Valley Land Trust, which is indispensable to this going forward, we think we've worked out the funding for a closing that would meet the Bair's deadline prior to October 1 st. So we will have the money without any question. We will have to obviously have to work out arrangements with them and some of their board members who have stepped forward and will be anonymous in terms of their participation. So that one I think we can accept. The other one though that I think we will have difficulty doing and at least for now I do not think that we can accept, we will try as best as we can to work out an arrangement and satisfy you on the easement, but we have an easement that has language from the federal government that adheres to their standards, we also have language in there that lacking a better work "boiler plate" from GOCO that has very strict stipulations that all oftheir easements have and now we have the county suggesting a contingency that you would actually own the easement, I don't know that that is practically going to be possible. We of course as we have already provided you with the first draft and any subsequent drafts it is our practice as we negotiate an easement, each draft is provided to the attorney with the agency we are dealing with in this case the county and we will try to cover any concern you may have, but it is an easement that's going to promote agriculture and guest ranching, and outfitting. It's going to restrict the property to so many home sites and we'll do our best to work with you and your concerns. I don't think we can put you in an ownership position we've got too many agencies here. the property owners and The easement that promotes agriculture, a guest ranch and outfitting. The property will be restricted to so many home sites. They will do the best tow work with the County's concerns. He stated he does not believe they can put the County in an ownership position." Commissioner Stone stated that his interest was not in sole ownership but as a party to the easement or a co-owneras opposed to not having any status whatsoever. "Having a party status so there would be some kind of enforcement." He stated he trusts Eagle County the most because that is who he works for, the people of Eagle County. Chairman Gallagher agreed that co-ownership or partnership would allow status for enforcement. "This commissioner had no illusions of being owners of the easement but rather to have co-ownership, or partnership so that we do have status for enforcement." Mr. Macy stated that they would try to do a few things, name the county as a participant, as a funder, come up with language that they could go back and forth with Diane Mauriello on, and her staff, do everything they can to accommodate, obviously as a major funder of this they want to satisfy the County's concern. He is concerned that after working the next two months then finding out there is something the County does not like and opts out ofthe deal. They do not want to be unnecessarily burdened by review and approval by the County when the plans have already been reviewed and approve by a Federal agency and a State agency that does this and they are very strict. He stated they will work with the County and try very hard to address their concerns with the easement, but they do not 7 July 31,2003 want to get into the situation that a week before the closing the County decided they do not like something, like the five additional home sites on the Bair Ranch. Chairman Gallagher stated they do not believe that they have the inclination nor the right to tell the federal government what they should have in their easement nor GOCO or the State of Colorado what to have in their easement. "If however they would find that it is beneficial for instance, to have pink corner posts on three strand barbed wire fences and that s something that can be added to the easement that is what they are talking about. It is about as likely in his mind that we do that a they have the full opportunity to review and question and deal directly with the federal and state agencies ifthat is appropriate, to deal directly with Mr. Macy's organization and be able to go to the citizens of Eagle County indicating they have reviewed the documentation and find it is beneficial for Eagle County to do it under these conditions." The commissioners are not looking at re-writing the book. Commissioner Stone stated that he thought it would be unreasonable for Eagle County to come in at the last minute and object to it, but he felt there should not be any misinterpretation because the commissioners had had very little to look at. He stated the Commissioners have had very little to look at. Even if the Board decides to move forward, they may be a deal killer in the documents but he would not know that because he has not seen the documents. He does not want Mr. Macy to have the false perceptions that without having seen anything that they are fully okay with that which they hadn't seen. He was not anticipating anything, but wanted to make sure there was no false perception of full commitment. Eagle County has committed to something they did not know about. Chairman Gallagher repeated that ifthis were occurring a year from now, it would have gone through the committee and the Board would have had a chance to review all of the documents. Commissioner Stone stated that as an additional condition, this was suggested by somebody else in the audience if the property owner decides to sell the property in the future, that Eagle County would have the first right of refusal if the property owner decides to sell his property that is in Eagle County, to purchase the property fee simple that is located in Eagle County. This would be an additional way of insuring that the original intent of the easement takes place. Many times when a development approval is granted to a specific applicant there is a trust because the person is known to the board, but when the Board make a development approval in the County, they still need to recognize that the property owner could sell the property to someone else they do not approve of, who may not want to follow with the intent of the previous purchase. This type of first right of refusal should be similar to many condominium associations. Mr. Macy stated that this was an excellent suggestion and assured the board that they would discuss it with the Bair's. He stressed that it was not currently agreed to. He didn't see it necessarily being restricted to Eagle County. "It would be a right that his organization would have as well and it would be assignable. This was common procedure. This right would also be a right that BLM and GOCO would have as well." Commissioner Stone stated that he would rather have Eagle County listed first in line on the right of first refusal. This is based on the fact that very little ofMr. Macy's money is involved, but a lot of Eagle County's money is involved. Ms. Quinlan stated this would have to be reviewed with the BLM. Chairman GaJlagher stated he believes the options laid out by staff are the best places to acquire the funds. He believes the funds that have been laid out are the best place to acquire money for this purchase. He requested that the choice between day care and motor pool fund, in either case money would be needed in next year's budget for either of these projects. Mr. Ingstad explained the particulars ofthe funding options. He related Chairman Gallagher wishes to take $275,000 from the Cooley Mesa project, $456,000 from the general fund balance, $100,000 from the anticipated sales tax increase, and $125,000 from the Road & Bridge ship. Any additional monies that may be coming from other savings will include additional sales tax revenues, expense savings, and expected re-imbursements. The remainder ofthe money will come from the day care proj ect. 8 July 31,2003 Chairman Gallagher stated his recommendation is to leave it to the County Administrator whether it comes from the Road & Bridge shop or out of the money for the day care center. Commissioner Stone reminded the Commissioners of the source of the day care monies. There was anticipation of profit from Miller Ranch sales. The plan was to replace the 1 million using these profits. If the Board still wants to build the daycare center, these funds would have to come from somewhere else. Chairman Gallagher stated that all of the $2 million needs to be reimbursed out of next year's budget, with the exception of the flight guarantee money and the additional sales tax collected. Commissioner Stone feels that next year will be one ofthe most difficult years for the County to come up with a balanced budget. The reason for this is based on health insurance costs spiraling. His research has indicated that this is not a trend but a new reality of costs. He is against doing it from a budgetary standpoint because Eagle County inherited a budgeting policy that has been handed down by former Boards of Commissioners. This is a marked digression from that policy. Only spending money that you take in and not spending money that you won't have until tomorrow. He is concerned that this is a change in policy and will set a dangerous precedent for Eagle County not living within its means. They have benefited from prior Boards that have lived within their means. He feels this would represent reneging on prior commitments. They made a commitment that was a spirited discussion at the time on daycare. One of Chairman Gallagher's primary concerns was a Road and Bridge shop in Basalt. He stated he is concerned about the Cooley Mesa Road project. The $275,000 is the tip of that iceberg. He has learned from former Board's that there is a lot of wisdom in prior policies. He believes the only reason Eagle County is in its current position is because of its conservative fiscal policy. He doesn't see this as an emergency and he will be focused on Eagle County living up to it's commitments next year. Chairman Gallagher stated that he disagreed on one point. While he shares Commissioner Stone's appreciation of their predecessors and this Board's continuation of conservative fiscal policy, he did not see it as a change in policy but as a diversion to policy. He did not believe this would set a precedent. Commissioner Menconi stated he believes that all options laid out by the County Administrator meets with his acceptance. Commissioner Stone stated that he liken this to the vote on Eagle Vail half diamond. He was against the half diamond going in and they could of stopped the half diamond from going in. He was in the minority vote there as well. He stated that the Commissioners will have to answer to the voters of Eagle County and that he would be reminding the voters of the way the other Commissioners had voted on the issue. Commissioner Menconi moved that the Board contribute $2 million dollars towards the acquisition purchase of Bair Ranch Conservation Easement to be located on the Mountain Parcel. Such funds are to be used only on lands allocated within Eagle County, Colorado and such contribution is made with the following conditions: 1. Prior to release of any funds by Eagle County, County staff shall have timely opportunity to thoroughly review and comment on any final agreements, closing documents, and other materials that may be related in connection with the Bair Ranch Conservation Easement. 2. That after review by staff, staff comments and relevant documents will be presented to the Board for final review and approval. The Board deems any final agreements, closing documents, easements and other materials that may be created in connection with the Bair Ranch Conservation Easement unacceptable or in need of revision as written to protect the interests of Eagle County, the Board reserves the right to revise and / or other conditions may be necessary to make such documents acceptable to the Board for approval or alternatively may withdraw its contribution. 3. The contribution of the funds by Eagle County for this transaction are contingent upon the sale of all phases or parcels within or without Eagle County closing simultaneously rather than phased over a one year period of time. 9 July 31,2003 4. Eagle County be named a party to any Conservation Easements placed upon the property with rights to enforce that agreement. 5. Best efforts will be made to allow for first right of refusal by the Bair family in the event of a sale, to Eagle County. Chairman Gallagher seconded the motion. In discussion, Commissioner Stone thanked the Board for allowing him to make amendments to the motion. Ms. Mauriello requested the Board specifically state, prior to voting on the motion, the public purposes that they are moving forward. The Board has heard a great deal of testimony but if there are agriculture purposes, preservation of the character, wildlife preservation, etc., it may be helpful to articulate those. Commissioner Menconi added thanks to the anonymous donors today and is the finest moment he has seen as a County Commissioner, the Bair's, Tom Macy and Christine Quinlan for their tireless work. He stated that there is no doubt that this will benefit Eagle County. It preserves the ranching and agriculture and the character of Eagle County and also preserves lands for wildlife. He stated that he wanted to say to the taxpayers of Eagle County that there is a very healthy reserve. Nearly 50% of all taxes collected are held in reserve each year. He also believes that it is appropriate to re-appropriate funds from one year to the next year. Commissioner Stone stated that Eagle County does not have 50% of taxes collected in reserve. Chairman Gallagher stated the additional public good is preservation of the watershed, riparian areas and the wetlands in the area. He finds they are representative of the vote of the people that supported the open space tax and set in motion the things which hopefully will come to fruition next year. Commissioner Menconi stated that as of July 31, 2003 Eagle County had a current reserve fund balance of $35,042,311 of current reserve funds in the Eagle County budget. Chairman Gallagher called for the question on the motion. Commissioners Menconi and Gallagher voting aye, Commissioner Stone voting no. There being no further business to be brought before the Board this special meeting was adjourned. Attest: Clerk to the Bo 10 July 31,2003