4B - Valmont Butte t
CITY OF BOtiLDER
CITY COUNCIL AGENDA ITEM
MEETING DATE: July 22, 2008
AGENDA TITLE: Consideration of a motion to accept the summary of the May 15,
2008 City Council Study Session on the update on Fire Training Center Construction at
Wells Site and the update on Valmont Butte and Discussions with Trust for Public Land
about Potential Pro erty Sale.
PRESENTERS:
' Stephanie A. Grainger, Interim City Manager
Paul Fetherston, Deputy City Manager
Jerry Gordan, City Attorney
Bob Eichem, Interim Deputy City Manager/ Finance Director
Larry Danner, Fire Chief
Frank Young, Deputy Fire Chief
Doug Newcomb, Property Agent, Open Space and Mountain Parks
Maureen Rait, Executive Director of Public Works
Bill Boyes, Facilities Maintenance Program Manager
Glenn Magee, Facilities Design & Construction Manager
James Hewat, Historic Preservation Planner
EXECUTIVE SUMYIARY:
At the June 3, 2008 City Council meeting, it was determined that a public hearing and discussion
item involving the Trust for Public Lands (TPL) along with formal council action regarding
potential property sale at Valmont Butte would be scheduled for the~Aug. 5, 2408 City Council
Meeting. It was also determined that the summary of the May 15, 2008 study session would be
scheduled for council review at the July 22, 2008 City Council Meeting so that council has
information prior to consideration of the potential sale item at its Aug. 5, 2008 business meeting. In
I addition, staff will provide information in a Weekly Information Packet (W1P) during July
i addressuig additional questions raised by council at the May 15, 2008 study session.
The purpose of the May 15, 2008 Study Session was to discuss:
• the status of the relocation of the Fire Training Center (FTC) to the We11s site,
• the potential disposition of the 71 acres of the Valmont Butte property,
• cost recovery objectives, and
• City Council interest in potential fixture uses of the Valmont Butte property.
A summary of the May 15, 2008 City Council Study Session Summary is included with this agenda
item as Attachment A.
AGENDA ITEM # PAGE 1
BACKGROUND:
At the June 3, 2008 City Council meeting, it was determined that a public hearing and discussion
item involving TPL along with fozmal council action regarding potential property sale at Valmont
Butte would be scheduled for the Aug. 5, 2008 City Council Meeting. On Aug. 5, staff will
present information including:
1. options for selling the property, retaining the property (or portions of the property),
and an evaluation of the.potential future city uses of the Valmont Butte property,
such as renewable energy projects, including projected one-time and ongoing
expenditures, and
2. grant opportunities related to the stabilization of the mill site and general site
remediation efforts.
The Aug. 5 agenda item will also provide an update on site remcdiation efforts, including prairie
dog management, an update on the analysis of environmental liability associated with the chain of
title as well as information xegarding recent site vandalism.
At the June 3 meeting, it was also determined that the summary of the May 15, 2008 study session
would be scheduled for council review at the July 22, 2008 City Council Meeting so that council
has information prior to consideration of the potential sale item at its Aug. 5, 2008 business
meeting. In addition, staff will provide information in a Weekly Information Packet (WIl') during
July addressing additional questions raised by council at the May 15, 2008 study session including:
a. the criteria used by the Indian tribes to authorize ceremonies and access under the MOU,
b. the site alternatives analysis done for the Wells site and the Valmont Butte site for the Fire
Training Center, and
c. clarifying the expenses occurzed to date related to site remed_iation.
Ni+~XT STEPS:
Formal council action regarding potential property sale at Valmont Butte is scheduled for the Aug.
' S, 2008 City Council Meeting. In addition, staff will provide council with a Weekly Information
Packet memorandum during July to address questions raised by council at the May 15, 2008 study
session.
STAFF RECOMMENDATION:
Staff recommends that City Council accept the May 15, 2008 City Council Study Session Suirunary
included with this agenda item as Attachment A.
Approved By:
Stephanie A. Graiiigcr,
Interim City Manager
1 ATTACHMF,NT A: Summary of the May 15, 2008 Study Session on the update on Fire Training
Center Construction at Wells Site and the update on Valmont Butte and Discussions with Trust for
Public Land about Potential Property Sale.
AGENDA ITEM # 3~ PAGE 2
ATTACHMENT A '
May 15, 2008
City Council Study Session
Update on Fire Training Center Construction at Wells Site and the update on Valmont Butte
and Discussions with 'Trust for Public Land about Potential Property Sale.
Study Session Summary .
PRESENT:
City Council: Mayor Shaun. McGrath, Deputy Mayor Crystal Gray, Suzy Ageton, Matthew
Appelbaum, Macon Cowles, Angelique Espinoza, Susan Osbonre and Ken Wilson.
Staff: Stephanie Grainger, Deputy City Manager; Paul Fetherstou, Deputy City Manager, Jerry
Gordon, City Attorney; l3ob Eichem, Finance Director; Larry Donner, Fixe Chief; Frank Young,
Deputy Fire Chief; Mike Patton, Director of Open Space/Mountain'Parks; Doug Newcomb,
Property Agent, Open Space and Mountain Parks; Maureen Rait, Executive Director of Public
Works; Ned Williams, Director of Public Works for Utilities; Bill Boyes, Acting Facilities and Fleet
Manager; Glenn Magee, Facilities Design & Construction Manager; Kara Mertz, Assistant to the
City Managez; and James Hewat, Historic Preservation Planner.
ABSENT:
City Council: Lisa Morael
PURPOSE:
The purpose of the May 15, 2008 Study Session was to discuss:
• the status of the relocation of the Fire Training Center (FTC) to the Wells site,
• the potential disposition of the 71 acres of the Valmont Butte property,
• cost recovery objectives, and
• City Council interest in potential future uses of the Valmont Butte property.
OVERVIEW:
i
Stephanie Grainger indicated that the last time staff checked in with council on Valmont Butte was
~ I at a study session in January 2007 and at that time council gave staff feedback on proceeding with
discussions and negotiations with Trust for Public Lands (TPL) about the potential sale of the
property. The Deputy City Manager noted that the May 15 study session provides the opportunity
to discuss the remediation of the site, the appraised value of the property and the status of the
negotiations with TPL. She noted that the appraisal report has been made public in order to be
transparent and open in these negotiations and that normally, appraisal information is not shared _
until such time as a contract has been made.
AGENDA ITEM # ~ PAGE 3
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While this is not a new topic, the Deputy City Manager indicated'that the specifics about the project
may be newer to some council members since there had not been acheck-in with council since the
election. As a result, background information and the history for how we got to where we are in the
process have been included in the study session materials and would be highlighted in the staff
presentation.
The Deputy City Manager also introduced the various staff in attendance available to address
council's questions. She noted that the study session questions had been consolidated and a revised
list of questions provided for council consideration. Frank Young, Deputy Fire Chief, presented
information on the FTC and Doug Newcomb presented information on Valmont Butte.
CITY COUNCIL DISCUSSION:
City Council was asked the following questions at the study session and staff has summarized the
comments received and additional questions asked by council below:
1. What questions does council have about proceeding with the development of the Fiure
Training Center at the Wells property?
Council asked clarifying questions related to projected expenditures and revenues and project scope
of the Fire Training Center that were addressed by the Finance Director, Fire Chief and Deputy
Chief. Council requested that staff distribute information on the site alternatives analysis done for
the Wells site and the Valmont Butte site for the Fire Training Center. There was general council
support for proceeding with the project and council expressed support for this investment in public
safety training.
2. What questions does council have about the appraisal report? Is there any supplemental
information that council would like to see in the f nal appraisal report?
Council did not rcqu.est supplemental information for the appraisal. However, council asked about
the appraisal process and when and how the appraised values become the sales price. Relative to
~ timing, questions were.raised about the appraisal objection period and the upcoming council recess
and if an extension could be mutually agreed upon.
3. Does council have any concerns about proceeding with negotiating the sale of the 71 acres
to TP 1,? If so, does council want to consider an alternative land sale (involving either less or
snore acreage) and/or alternative uses for the land?
There was general council interest in further understanding Tl'L's specific plans and potential uses
for the site. Council expressed concerns about proceeding with the sale, given the inability to
recover costs in the short term. There was general council interest in potentially retaining the
property and examining the feasibility of city uses such as renewable energy and composting.
There was general interest in the future use of Valmont Butte remaining compatible with what is
currently there (i.e., no existing operational use). Council also requested that staff evaluate
potential city Utility uses that were low impact and aff rmed that a biosolids use would not be
supported.
AGENDA ITEM # 3~ PAGE 4
Council provided a context for the additional analysis needed by indicating the importance of
taking "a measure twice" to ensure.that any issues associated with Valmont Butte are carefully
considered and also requested that staff provide information on its evaluation of state and federal
. funding opportunities, including grant availability, for site remediation work. Council also
requested that. staff analyze environmental liability associated with the "chain of title:"
4. Council guidance provided at the Jan. 30, 2007 study session indicated that an objective was
for the city to recover all the money it has invested in the Valmont site. Ts this still a council
objective?
Council expressed an interest in recovering costs and noted that market conditions could change
over time. ,
5. Since it appears that the original purchase price plus city costs to-date cannot be recovered
under any scenario, what feedback does council have for staff about how to proceed?
As noted, there was general council interest in further understanding TPL's specific plans and
~ potential uses for the site and for staff examining potential city uses.
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6. If a sale goes forward, should the old mill on the property be sold or retained by the city? At
the Jan. 30, 2007 study session, council generally supported including the historic mill and
surrounding buildings in the sale. of the property. However, council requested that the
appraisals to be completed with and without the mill included. Is it council's objective to
include the mill in the sale?
In the context of exploring options related to city uses, council requested information on grants for
historic preservation in order to understand potential funding availability for stabilizing the mill.
7. At the Jan. 30, 2007 study session, council generally supported landmarking the mill, but
wanted to understand what effect that landmarking the mill would have on the market value
of the property. Does council want staff to pursue local landmarking and state and/or
national Historic Register designation for the mill and some portion of the surrounding site
prior to the sale of the property?
The council concerns about cost recovery focused discussion on the exploration of potential city
uses and maintenance of the site in recognition that market conditions could change over time.
~ 8. What additional information does the council need in order to make final decisions with
regards to the future of the Valmont Butte site?
Council requested information to understand the criteria used by'the Indian tribes to authorize
ceremonies and access under the MOU.
Council requested background information on the site alternatives analysis done for the Wells site
and the Valmont Butte site for the Fire Training Center.
AGENDA ITElYI # 31~ PAGE 5
Council requested that the expenses occurred to date related to site remediation be clarified relative
to asbestos removal expenditures.
Council requested that staff determine the value/price of 10 acres in the vicinity of 63rd (for
composting).
I
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AGENDA ITEM # ~ A PAGE 6
Boulder City Council
Study Session
Thursday, May 15, 2008
6:00 - 9:00 p.m.
Update on Fire Training Center Construction
at Wells Site
Update on Valmont Butte and Discussions with Trust
for Public Land about Potential Property Sale
West Boulder Senior Center
909 Arapahoe
Submit Written Comments to City Council
' ATTN: Alisa Lewis, City Clerk
1777 Broadway, 2nd Floor
P.O. Box 791 Boulder, CO 8030G
or Fax to 303-441-4478
or E-mail: council(~bouldercolorado,aov
1
MEMO [tA N D l~~I
TO: Mayor and Members of the City Council
FROM: Frank W. Bnmo, City Manager
Jerry Gordon, City Attorney
David Gchr, Deputy City Attorney
Stephanie Grainger, Deputy City Manager
Larry Donner, Fire Chief
Frank Young, lleputy Fire Chief
Bob Eichem, Finance Director
Doug Newcomb, Property Agent, Open Space and Mountain Parks
Maureen Rait, Executive Director of Public Works
Bill Boyes, Acting Facilities and Fleet Manager
Glenn Magee, Facilities Design & Construction Manager
James Hewat, Historic Preservation Planner
DATE: May 15, 2008
SUBJECT: Study Session: Update on Fire Training Center Construction at Wells Site.
Update on Valmont Butte and Discussions with Trust for Public Land about
Potential Property Sale
PtiRPOSP::
This memorandum describes recent developments and the current status of the city's Valmont Butte
site and the relocation of the Fire Training Center (FT'C) to the Wells site.
For the new FTC: City Council approved the conveyance of a property interest in the form of a 30-
year restrictive covenant and authorized the city manager to enter into an Intergovernmental
Agreement (IGA) with Boulder County. The construction of the FTC project will require planning
approvals. Toward that end, Concept Review is scheduled for Planning Board consideration in July
2008. Site Review is tentatively scheduled for Planning Board consideration in September 2008.
Construction is expected to begin in February 2009 with completion anticipated in November 2009.
The Valmont Butte site: The Trust for Public Land (TPL) and the city have entered into an option
agreement providing TPL an option to purchase 7l acres of the Valmont Butte property if an
agreement can be reached on certain items. Those include a sales price and issues related to
environmental liability. An appraisal has been done on the property and information from the
appraisal is included in this memorandum. The complete draft appraisal report can be found at
~a-~:vw.valmontbutte.net
The May 15, 2008 Study Session will provide the opportunity to discuss:
• the status of the development of the FTC at the Wells site,
• the potential disposition of the 71 acres of the Valmont Rutte property,
• cost recovery objectives, and
• City Council interest in potential future uses of the Valmont Butte property.
5T'tiDY SESSION Qt1F,S1'IOVS:
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1. What questions does council have about proceeding with the development of the Fire
Training Center at the Wells properly?
2. What questions does council have about the appraisal report? Is there any supplemental
information that council would like to see in the final appraisal report?
3. Does council have any concerns about proceeding with the sale of the 71 acres to 'I'PL? If
so, does council want to consider an alternative land sale (involving either less or more
acreage) and/or alternative uses for the land?
4. Council guidance provided at the Jan. 30, 2007 study session indicated that an objective was
for the city to recover all the money it has invested in the Valmont site. Is this still a council
objective?
S. Since it appears that the original purchase price plus city costs to-date cannot be recovered
under any scenario, what feedback does council have for staff about how to proceed?
6. If a sale goes forward, should the old mill on the property be sold or retained by the city? At
the Jan. 30, 2007 study session, council generally supported including the historic mil] and
surrounding buildings in the sale of the property. However, council requested that the
appraisals to be completed with and without the mill included. Is it council's objective to
include the mill in the sale?
7. At the Jan. 30, 2007 study session, council generally supported landmarking the mill, but
wanted to understand that effect that landmarking the mill would have on the market value
of the property. Does council want stafTto pursue local landmarking and state and/or
national Historic Register designation for the mill and some portion of the surrounding site
prior to the sale of the property?
8. What additional information does the council need in order to make final decisions with
regard to the future of the Valmont Butte site?
BACKGROUND:
The city purchased the 101-acre Valmont Butte property in 2000 for $2,S7S,000. The purchase
money came from three city funds: Open Space and Mountain Parks (OSMP), Public
Works/Utilities and the General Fund.
At its Aug. 16, 2005 meeting, council directed that the Valmont Butte property not be used as a site
for a new fire training center or a biosolids composting Facility.
On Feb. 21, 2006, council approved building a new fire training center on the Wells site, located at
63~`i Street and the Diagonal Highway, on land that was purchased in the 19SOs by the Water Utility
Fund. Council also directed that the Valmont Butte property be offered for sale to Trust for Public
Land (TPL). Council also directed staff to sell the Fire and Public Works/Utilities portions of the
Valmont Butte property and try to recover their purchase money. In addition, it was determined
that the Water Utility Fund should be reimbursed for the value of the Wells site, which will house
the FTC. Additional history about the Valmont Butte property is included as Attachment A.
COMMUNITY SUSTAINABILITY ASSESSMENTS AND IMPACTS:
4
• Economic: Adequate training facilities for firefighters are essential and will facilitate an
effective public safety response that is needed to support the community and its local economy.
A one-year, city-specific temporary sales tax for fire training expired at the end of 2007,
reducing the sales tax rate in Boulder by 0.15 percent. The cost projections used at the time the
rate of the one-year temporary sales tax was determined contemplated adequate funding for the
completion of the first phase of the project by 2010. Otherwise funding may be inadequate due
to construction cost increases.
• F,nvironmental: Details associated with prairie dog management and remediation work at the
Valmont Butte site are included in Attachment C. Relative to the FTC and LF,ED (Leadership
in Energy and Environmental Design) standards, the city adopted (2001) a policy that all new
construction and significant renovations of city facilities be certified to the LEED-NC (New
Construction) Silver Standard. This policy was reinforced with the subsequent acceptance of
the 2005 1~acilifies and Asset Management (FAM) Master Plan. With regard to the application
of LEED/Silver to the proposed FTC Project, one of the criteria for the selection of the design
team (for architectural and engineering services) was their experience with LEED certification.
Also, the projected budget for the administration building includes a 3% premium (over typical
construction costs) has been factored in to obtain LEF,D/Silver certification. The budget
for consultant fees also reflects the costs of obtaining LEED/Silver certification.
• Social: Work at the Valmont site may implicate cultural and historical preservation issues.
Adequate training facilities and trained firefighters enable a public safety response that impacts
the quality of life in the Boulder community and supports all residents and businesses. Details
regarding the historic resources at the Valmont Butte site are included in Attachment B.
P.AR7' I. UPDATE ON FIRF, TRAINING CENTER (FTC) CONSTRtC'I'ION A'T WI?I,[,S
SITE:
Roth+Shcpard and TCA Architects were selected to lead the design of the FTC. Roth+Shepard
have a great deal of public sector experience, including the design of I3ouldcr's Public Safety
Building. TCA has an extensive background in facility design for fire departments and fire training
centers. The architect design team also includes the services of YRG, sustainability consultants,
who are doing the LEED (Leadership in Energy and Environmental Design} certification work.
The administration building of the F"fC will be designed and built to a LEED/Silver rating in
accordance with city policy. Consultants from Walsh Environmental have surveyed the Wells site
and have prepared a wildlife and wetlands plan. Conceptual building design and site plans are
complete. "The project was reviewed by the Downtown Design Review Board in November 2007
and received favorable comments.
A community meeting was held Nov. 8, 2007 at Heatherwood Elementary School and
approximately 25 people attended. Responses from those in attendance regarding Iocating the F'I'C.
at this site were generally positive. However, a significant concern expressed had to do with the
potential use of 5151 Street for access to the FTC. There was some concern expressed about the
impacts that events at the Boulder Reservoir and the users of the proposed facility might have on the
Valhalla neighborhood. A petition containing 57 signatures was presented at the meeting
requesting the city to address the "deterioration of the environment and living conditions of the
Boulder Reservoir neighbors and 51" Street residents." The city was specifically asked to address
traffic, parking and public safety issues by only allowing access to the FTC from the Diagonal
5
! lighway and by closing the S l St Street gated access to the Boulder Reservoir to vehicles. The city
was requested to expand free parking areas at the reservoir and to provide access to reservoir
restroom facilities for runners and cyclists.
Staff is currently working to resolve the vehicular access and emergency egress issues. Two
general access desilrns and one emergency egress design have been evaluated:
1) General access via 63rd Street near the water treatment plant;
2) General access via 51St Street through the Boulder Reservoir; and
3) Emergency egress to the Diagonal Highway.
The Diagonal is designed as a limited access facility and is under the jurisdiction of the Colorado
Department of Transportation (CDOT). Driveway access and general access is not permitted for
any proposed new public or private facility. However, staff, in coordmation with Boulder County, is
hopeful that CDOT will allow emergency egress from the FTC to the Diagonal Highway. This
would result in access into the FTC from S lst Street (through the Boulder Reservoir entrance gate),
but vehicles would exit the FTC onto the Diagonal Highway for emergency response.
The Boulder County Transportation Director, has confirmed support to advocate in partnership that
CDO`I' allow emergency egress from the FTC on the lliagonal. Information compiled to date
demonstrates that emergency egress would occur, on average, approximately six times each year.
Design approaches being considered minimize the "footprint" to manage impacts and costs.
Information about the emergency egress challenges, especially when major special events are
occurring at the Reservoir, is also being compiled for discussions with CDOT'.
Staff is coordinating with Parks and Recreation to investigate potential options for the 51St street
access which may include elimination of.'the need for a new access drive off S.ls` and result in
improvements to the existing reservoir access road which couh~ mitigate potential conflicts between
FTC and Reservoir traffic circulation and improve reservoir vehicular circulation and parking.
Fire Training Center Fiscal impacts:
The total current estimated costs for Phase I to design and construct the FTC are $6,195,000 and
include the following elements:
Site llevelo ment and Infrastructure $2,]25,000
Administration Buildin _ $1,420,000
Burn Buildin $ 5$2,000
Trainin .Tower $ 503,000
Trainin r Pro s / FF&1? $ 309,000
Dcsi n Fecs, Processin fees $ 784,000
Project Mann Dement $ 157,000
Pro~cct C;ontin .encv $ 3].5,000
'T'otal Pro'ected Costs of Phase I $6,195,000
6
Funding for the k°I'C comes from two sources:
1. Revenue from the 2002 through 2004 county sales tax collection -approximately $4. I
million; and
2. Revenue from a temporary city sales tax approved by voters in November 2006 and in effect
from January -December 2007 -approximately $3.6 million.
The City Council authorized the city manager to enter into an Intergovernmental Agreement (IGA)
between Boulder County and the city on Sept. 4, 2007 for the release of sales tax funds for the fire
training center and the conveyance of property, in the form of a 30-year restrictive covenant, upon
completion of the county funded facilities at the Wells site. The county fire training sales tax
proceeds have been transferred to the city.
Land Planning $ 75,400
Architectural Design $142,000
Engineering $ 4,000
Project Management $ 20,000
Wetland/Wildlife Study $ 5,900
Smoke Study $ 15,000
Expenditures to date $262,300
When the funding scenarios for the I~"I'C were originally presented, it was projected that the funds
available to build the FTC (from the various sources of revenue) would be adequate to cover
inflationary costs of l0 percent annually. 1f this occurred the contract cost would need to be locked
in during 2009. It was also discussed that if the project is delayed beyond 2009 and inflation rates
reach 10 percent annually the k
I'C would need to be scaled back because available revenues would
be inadequate.
Actual revenues collected and available for this project have been very close to the original
projections. Therefore, a major financial unknown at this time is how much construction costs will
increase each year. If inflation for conshuction material remains below 10 percent then there will
be adequate funds to complete Phase I, and if they are greater than 10 percent, the project would
need to be modified. If there are excess funds available, the ballot language for the money collected
via the cities .15 percent sales tax in 2007 states the funds can be used for Phase it of the FTC or for
fire apparatus.
As was mentioned earlier, the Wells site was purchased by the Water utility Fund in the 1950s.
The City
Attorney has determined that the Water Utility Fund should be reimbursed for the value of
the property it owns at the Wells site that will house the FTC. At the Feb. 21, 2006 City Council
meeting, staff was directed to sell the entire Valmont Butte property and recover the purchase
money, in particular the $1,000,000 from the General Fund that could be used to reimburse the
Water Lltility Fund for the Wells site property. If the sale of the Valmont Butte property has not
occurred by the time the land needs to be purchased from the Water Fund the general fund the
previous council authorized to pay the Water Fund back through a lease purchase at a market rate of
interest.
7
Estimates are that the land needed for the FTC at the Wells site will range from $750,000 to
$1,250,000. In the 2008 general fund budget, $130,000 is budgeted to begin the lease purchase if
the Valmont Butte property has not sold. When the actual purchase price and if the lease purchase
method is used an adjustment to the actual payment will be made. If the Valmont land is sold after
the lease purchase begins the proceeds from the sale can be used to pay off the lease purchase.
Other Issues/Impacts:
During the public process to determine a new site for the FTC, concern was raised about potential
smoke impacts on Wells property neighbors, including Celestial Seasonings. The city contracted
with the National Center for Atmospheric Research (NCAR} to analyze these potential impacts and
NCAR staff concluded that "even high concentrations seen close to the release point (50 meters
downwind) are at the Lower end of the range (200-20,000 µg/m3) for the limit of detection of
several of the key odor-causing components of smoke." Meetings have been held with Celestial
Seasonings staff to review the smoke report data and other issues, and company representatives
have witnessed live burns at the Lee 1-IilI facility.
Fire Training Center Next Steps:
The FTC project has been submitted to the city planning process. Concept Review is scheduled for
Planning Roard consideration in July 2008. Site Review is tentatively scheduled for Planning
Board consideration in September 2008. Construction is expected to begin in hebruary 2009 with
completion anticipated in November 2009.
The Fire Department will continue to work with Parks and Recreation and the planning consultant
on access issues through Boulder Reservoir. Access from the site onto the Diagonal highway is
more desirable and staff' is scheduled to meet with CDOT Region 4 representatives in June.
City staff also continue to work with Celestial Seasonings staff and are meeting with other
businesses in Gunbarrel located in the vicinity of where the FTC will be constructed.
Question for City Council:
What questions does council have about proceeding with the development of the Fire Training
Censer at the Wells property?
8
PART IL UPDATE ON VALMONT BUT"I'F; AND DISCUSSIONS WITII TIIE TRUST
FOR PUBLIC LAND ABOUT POTENTIAL, PROPF,RTY SALE:
City Council held a study session about Valmont Butte on Jan. 30, 2007 and provided the following
general guidance regarding the sale of the property:
• Proceed with a purchase option from TPL for approximately 71 acres.
• Sale price options for the property should reflect options that would include and exclude the
mill site from the sale.
• Council members expressed support for landmarking the mill site, but the cost-impact of
such an action on the sale price would need to be determined.
• Council members generally did not support making the mill operational.
• if other potential buyers are interested in the property, council members suggested that these
buyers be referred to TPL. '
Saleable Acreage:
The Valmont Butte property was 101 acres when purchased. The acreage available for sale is
approximately 71 acres. Two portions of the original Valmont Butte property located at the
intersection of Valmont and Butte Mill roads near the entrance to Western Disposal have been sold.
In November 2004, council authorized the sale of about two acres to Boulder County to
accommodate safety improvements that have since been completed at that intersection. The
remaining acreage there had only nominal market value. Council approved the disposition of the
remaining 0.491 acres to Western Disposal at its May 29, 2007 meeting.
Two parts of the main body of the property are also excluded from this estimate of saleable acreage.
Not considered available for sale is the 27-acre OSMP portion of the Valmont Butte. Additionally,
an approximate half-acre area around an existing rent generating microwave antennae facility is
excluded from the sale.
The Utilities/Wastewater Fund paid $1.3 million for 36 acres, the General Fund paid $1.0 million
for 38 acres, and OSMP paid $300,000 from the Open Space Fund for 27 acres. The General Fund
and the Public Works/LJtilities portion of the property total 74 acres and cost $2.3 million.
Excluding the land areas identified above, the best estimate of the Valmont Butte's saleable area is
71 acres, including the Valmont Mill.
The Trust for Public Land:
The Trust Cor Public Land (TPL) and the city have entered into an option agreement. That
agreement provides TPL with an option to purchase 71 acres of the Valmont Butte property if
agreement between the parties can be achieved on certain items, including the sales price: and
environmental liability.
The Valmont Butte Heritage Alliance (VBHA) and the Native American Rights Fund (NARF) are
involved with TPL and have participated in the development of the option agreement. VBHA is a
501(3)c corporation. Its board includes representatives of Indian tribes, the Valmont Cemetery and
Valmont area residents. NARF and other organisations such as the Colorado Commission on Indian
Affairs are monitoring the progress of this potential transaction. Like the city, these parties have
9
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been awaiting the results of the appraisal and subsequent discussion of a sales price, before
determining the feasibility of a transaction.
The Valmont Mill:
The terms of any sale to TPL will be affected by a city decision about whether or not to include the
mill area in the sale of the property. Sale terms will also be impacted by a decision about whether or
not to preserve the Valmont Mill.
The historic value of the floatation mill was recognized during the city's internal Community
Environmental Assessment Process (CEAP) that was done at the time the site was being considered
for use as a F`I'C and biosolids composting facility. Historic Boulder has recommended the mill be
preserved. The future of the mill and its possible preservation have significant implications for the
sale of the property. Including the Valmont Mill area in a sale agreement would mean any
preservation of the mill would be worked out with TPL• (or another party) as the owner or contract
purchaser. Buying land to preserve mining history is within TPL's mission and it has had successful
experiences preserving other historic features. Therefore, it is reasonable to expect that satisfactory
arrangements could be made with TPL. Including the mill area in a sale (not having to take steps to
legally exclude the mill area) reduces land survey and subdivision costs by about $2,000. Including
the mill area in a sale to a party committed to the preservation of the mill, would provide more time
to determine the scope ol'the mill's preservation.
Excluding the Mill area from the sale would require a determination of the boundary of the area that
would be retained by the city. The boundary area would have to be determined and described in
legal terms before a sale could be completed.
If the city decides to retain ownership of the mill portion of the site, it will have to deal with
buildings that arc in serious need of attention. A condition assessment of the buildings was
completed in recent years and it is anticipated that approximately $142,000 would be needed to
stabilize (not rehabilitate) three or four of the buildings. Also, the mill portion of the site (by itself)
has very little market value unless the area can later be used or modified. So, excluding it from the
sale and restricting development on the mill portion of the site could mean that if the mill site is sold
later, it will have to be sold at a much reduced price as compared to the per acre price of the
remaining portion of the property.
One approach would be to negotiate a contract to sell the property that contains an option for
inclusion or exclusion of the Valmont Mill. Then the final decision could he made before closing
based upon further understanding of TPL's interest in preserving the Mill area. Another possibility
would be to enter into a contract for the sale of the entire property that imposes a duty to protect the
Mill. Still another approach might include leasing the Mill area as an alternative to selling it. All of
these options will have financial impacts on the piuchase price (see Appraisal section below).
Additional information regarding the historic resources at the Valmont Butte site is included in
Attachment B.
Valmont Butte Site Remediation:
The city is pursuing remediation for the Valmont Butte site pursuant to the covenant agreement
between the city and the Colorado Department of Public Health and Environment (CDPHE). 1'he
10
site remediation plan approved by CDPHE involves three phases of work that are being managed by
Facilities & Asset Management (FAM). Phase I work included the removal of hazardous or
potentially hazardous materials stored on the site. It has been completed at an approximate cost of
$169,000.
Phases II and III involve removing prairie dogs currently ]wing in that area and capping the tailings
ponds. Staff is complying with the city's Urban Wildlife Management Plan (i.TVVMP) and city
ordinance protocol in relocating all of the prairie dogs on the tailings pond cap. However, the city
was notified on Wednesday, April 30, 2008 by Walsh Environmental Scientists that the prairie dog
population on the Valmont Butte site has significantly decreased in size since last year. This could
be an indicator of plague. Boulder County Public Health has been notified, and has visited the site
to take samples to test for the plague. The site has been posted to warn of the possible plague
infection. More specific information about each phase of the work is contained in Attachment C.
The total estimated cost for remediation of the site is $997,000. Approximately $169,000 of this
amount has been spent removing hazardous waste {Phase I}, $141,000 has been spent to date on
wildlife assessments, barrier construction and relocation planning (Phase II) and $27,000 has been
spent on cap restoration design (Phase lII). "I'he remaining Phase II and Phase III work will cost
approximately $660,000. The original budget amount for the project was established in February
2006 at $850,000.
TPL has indicated. a desire for a more permanent cap. If the city were to provide that higher level
of remediation work, the estimated total monetary investment would increase by over
$1,900,000.
Staff met with representatives from the Rocky Mountain Peace and Justice Center (RMPJC) on
Nov. 27, 2007 to understand their concerns about Valmont Butte and environmental issues. A
subsequent investigation included a detailed records search by city staff. A response to the RMPJC
was issued on Dec. 21, 2007. That letter and associated documents and records are available for
review at w-ww.valmontbutte.net
Tailings Dam:
An old dam is located on the Valmont Butte site. It is called the "St..Joe'I'ailing Dam." It
originally helped to contain water in the tailings ponds. The dam still exists, although currently
there is no water for it to contain.
On April 14, 2008, after a routine inspection, the Colorado Department of Natural Resources,
Division of Water Resources issued a report about this old dam. Z-he report concludes that under
same unlikely storm circumstances, water might accumulate and the dam might fail. This could
cause property damage although no loss of life would be anticipated.
The report concludes that an extreme storm event (100-year) would not fill the primary tailings
pond or encroach upon the dam. The potential unsafe condition - if it ever occurs -would come to
exist when multiple and serious storm events occur in some close proximity. Suggested remediation
includes the installation of an outlet to allow better drainage of normal storm zunoff and to permit
controlled drainage of water that might accumulate during serious multiptc; storm events. A
preliminary look that this approach suggests implementation would not be particularly difficult or
complex. However, a more detailed analysis will be completed.
11
l
Draft Appraisal:
At the January 31, 2007 City Council Study Session, staff was requested to obtain an appraisal of
the fair market value of the Valmont Butte property. Council requested that the appraisal address
two options related to the mill. One option would estimate the impact on the fair market value if the
mill were to be designated a historical landmark before sale and the second option would estimate
the impact on the fair market value if the mill was not included in the sale of the property.
The complete draft appraisal report is available for review at www.valmontbutte.net Council
feedback is requested on the draft appraisal. If supplemental information is needed, staff will
follow up on that request before the appraisal becomes final. If additional appraisal work is not
requested, the draft appraisal will become final.
ESTIMATED FAIR MARKET VALUES
All 71 acres
without landmarking $2,560,000
with landmarking $2,430,000
East 35 acres only $1,280,000
West 35 acres only w/ mill
without landmarking $1,280,000
with landmarking $'1.150,000
Unfortunately, sufficient fair market sales data from which to extract the quantity of the negative
affect on value from landmarking, is not available. City real estate staff's opinion is that the
negative effect is more than simply the loss of the utility of the land under and near the landmarked
buildings. It is equal to the value of the land under and near the landmarked buildings plus the
prospective purchaser's determination of how much Iess it would pay considering the cost and
effort needed to secure the landmarked buildings. The quantity of how much less can be better
estimated after negotiation with the prospective purchaser. At this time, the projected loss from
landmarking is estimated as follows:
3 acres x ($2,560,000 / 71 acres) $20,000 = $128,169.OU (rounded to $130,000, being the
estimated value reduction related to landmarking the mill buildings}.
Cost Analysis:
As mentioned earlier, the entire Valmont Butte property was purchased for $2,575,000. The
purchase price for the 71 acres (that are now being considered as available for sale) was $2.3
million. The costs to remediate the site to date are $337,000. The remaining Phase II cost to
construct a barrier and relocate wildlife will be $40,000 and the remaining Phase lII costs related to
capping the tailings ponds (per the original agreement with CDPHE) will be $620,000. The total
estimated amount of money the city has invested in the 71 saleable acres of the Valmont Butte
property is shown in the following table.
12
INVESTMENT IN THE PROPERTY
Invested to date: $2,637,000
(Purchase price + remediation to
date)
Remaining Expenses $ 660,000
(complete CDPHE II & ill plans)
Total Monetary Investment $3,297,000
* Not included in the above investment in the property are staff time and the estimated future costs
for stabilization of the historic mill of $142,000 including: $111,000 for the historic mill; $31,000
for ancillary facilities and an estimated $1,000,000 for the purchase of the Wells property.
By subtracting the total monetary investment in the property from the estimated fair market values
of the previously stated sale alternatives, the proceeds from the sale alternatives can be estimated
and are shown below. Note: Future sales costs such as subdivision, title insurance, survey, etc. are
not included.
ESTIMATED NET PROCEEDS FROM THE SALE ALTERNATIVES
Acreage
Sell all 71 acres retained
with mill landmarked - 5867,000 0
without mill landmarked - S737,000 0
sell west portion only including mill
with mill landmarked - 52,147,000 35
Without mill landmarked - 52,017,000 35
sell east onion onl - 52,017,000 35
As indicated above, there is no sale alternative that would recover all the money invested in the 71
saleable acres of the Valmont Butte property as was once hoped for. The cost of the planned
environmental cleanup and wildlife protection work has grown to a level that even a sale of the
entire property will not recover all the money invested. If the entire 71 acres were to be sold, the
estimated monetary loss would be $867,000 if the mill is landmarked before the sale or $737,000 if
the mil] is not landmarked before the sale.
I f only the west 35 acres including the mill were sold, the monetary loss would be $2,147,000 if the
mill is landmarked before the sale and $2,017,000 if the mill was not landmarked before the sale.
The city would still own the east 3S acres which is worth about $1,280,000.
if only the east 3S acres were sold, the estimated monetary loss is $2,U 17,000 but the city would still
own the west 3S acres with the mill which is worth about $1,280,000 if the mill is not landmarked
and $1,150,000 if it is landmarked.
The cost of retaining the mill is high because the 71 acre sire of the property allows for two 3S acre
building sites. 3S acres is the minimum acreage for au unsubdividcd building lot in Boulder County.
If the area around the mill is not sold then the property's acreage drops below 7l acres and there is
only one building site (say 68 acres) instead of two building sites. Each building site is worth
13
i
$1,280,000, so, it costs approximately one building site or $1,280,000 to exclude the mill from the
sale. However, there is a small adjustment needed because purchasers generally pay an additional
10% more fora 68 acre home site than fora 35 acre home site. The loss from excluding 2+ acres
around the mill from the sale of the entire property is estimated to be about $1,000,000.
The option agreement provides TPL an option to purchase 71 acres of the Valmont Butte property.
However, the option is conditioned in various ways. One condition is that the parties must reach
agreement on the sales price and environmental liability. The agreement requires an appraisal be
obtained jointly by the City and TPL at a shared expense to help the parties agree to a sales price.
Both parties have sixty days from the time the appraisal is issued to object to the appraised values
becoming the sales price, subject to council's later approval of the entire sales agreement. Sixty
days from the date the appraisal was issued is June 23, 2008.
Based on council feedback at the study session, staff will return to council for direction on
finalizing the appraisal and to finalize the negotiation of certain items with TPL. Presently, TPI, is
working with historic Boulder, the Native American Rights Fund (NARF), the Valmont Butte
Heritage Alliance (VBHA) and the Valmont community about preserving the Valmont Mill and
other cultural resources, and about practical matters like shared access roads and parking. TPL has
also commc;nced with fundraising efforts.
Future Use of the Land:
According to the City Attorney, the city could sell the land subject to use restrictive covenants.
These covenants would be intended to assure that future land uses preserve the character of the
property. Commercial uses, including gaming, would be prohibited.
There is some legal question as to the enforceability of restrictive covenants against property held
by Indian tribes. Indian Iands acquired and held in trust by the federal government are probably
not subject to prior restrictive use covenants. While this scenario is not anticipated, Council should
be aware of the issue.
To date, Council's over-arching goal has been to have the future use of Valmont Butte stay
compatible with what is currently there (i.c., no existing operational use). The Valmont Butte
property is zoned General Industrial by Boulder County. Land Use code Article 4-100 Toning
Districts identifies the following permitted uses in General Industrial districts:
Agricultural uses, 4 animal units per acre, agricultural business uses, indoor and outdoor
recreation, professional office and industrial user such as mining uses, carpentry,
machine and building contracting shops, warehouses, recycling, outdoor storage and
product storage.
Prior uses of the property include ore milling, luxury log home production, construction offices,
material storage and other uses consistent with the zoning. If Council is interested in considering
other uses beyond those proposed by "I'PL, such as future use of the ]and by the city for potential
renewable energy projects or for other city needs, additional information may be needed to inform a
final decision with regard to the future of the Valmont site.
14
Valmont Butte Next Steps:
1. Staff will follow up on appraisal work if Council determines that supplemental
information is warranted.
2. Accept or reject the appraised values becoming the sales price. If accepted by bath
parties, then further negotiation on the remaining issues could result in a sale contract for
Council's consideration later this year. Tf rejected by either party, then further
negotiation of the issues would include the price and could result in a sales contract for
Council's consideration later this year or negotiations could fail to result in a contract for
Council's consideration.
3. Steps to be taken during 2008 involving site remediation efforts, including prairie dog
management, are outlined in Attachment C.
Questions for City Council:
What questions does council have about the appraisal report? Is there airy supplemental
information that cvwzcil would like tv see in the final appraisal report?
Does council have any concerns about proceeding with the sale of the 71 acres tolPL.`> If'sv, does
council want to consider an alternative land sale (involving either less or more acreage) and/or
alternative uses for the land?
Council guidance provided at the Jan. 30, 2007 study session indicated that an objective was for the
city to recover all the money it laas invested in the Valmont site. Ls this still a council objective?
Since it appears that the original purchase price plus city costs to-date cannot be recovered under
any scenario, what feedback does council have for staff about how to proceed?
If a sale goes for~rvard, should the old mill vn the property fie sold or retained by the city? At the
Jan. 3U 2007 study session, council generally supported including the historic mill and surrounding
buildings in the sale of the property. However, council requested that the appraisals to be
completed with and without the mill included. L~• it council s objective to include the mill in the
sale?
At the Jan. 30, 2007 study session, council generally supported landmarking the mill, but wanted to
understand that effect that landrnarking the mill would have on the market value of the property.
Does council want staff to pursue Local landmarking and state and/or national Historic Register
designation for the mill and some portion of the surrounding site prior to the sale of the property?
What additional injorrnution dues the council need in order tv make final decisions with regard to
the future of the Valmvrtt Btttte site?
l5
Attachment A
Valmont Butte site timeline of activities
For more information and extensive documentation, visit ww~;~.valmontbutte.net
2000
• Aug. 15 -Site purchase approved by City Council
• Aug. 28 -City purchase of Valmont Butte site completed
• Sept. 5 -City Council meeting -discussion about proposed uses for the site
• Sept. 18 - Phase I Environmental Site Assessment for Valmont Butte Property
2001
• July 13 - RMC Consultant's site survey determined that the main mill building and adjacent
water system pump hquse are eligible for the National Register of Ilistoric Places
• Aug. 7 Asbestos abatement for Valmont Butte mill building completed
2002
• City contracted with RTW Engineers for the analysis and design of a Biosolids Recycling
Center (BRC) at the Valmont Butte site
2003
• June City installed three groundwater monitoring wells
• Aug. 18 - An overview of the BRC project was presented to WRAB
• September. Terracon Environmental Engineers performed a Limited Intrusive
Environmental Site assessment
• Uct. 1 -Public Meeting 1: Informing citizens and soliciting public input regarding the
proposed BRC. Fire Department staff provided information nn the proposed Fire Training
Center (FTC)
• Nov. 12 -Public Meeting 2: Discuss Q&A from Meeting 1, provide the community with an
updated project schedule and articulate steps the community could take to stay involved with
the project
• December - ERO Resources Corporation conducted an assessment of the natural areas and
features of the Valmont Butte property
• Dec. 15 update nn Valmont Butte presented to WRAB
1G
2004
• January -Site feasibility plan for PTC drafted
• Jan. 16 - RMC Consultants, assisted by a Northern Arapaho Indian tribal monitor,
documented, mapped and recorded American Indian use and archaeological materials
• February -Site feasibility plan for FTC updated
• February -FRO Resources Corporation updated assessment of the natural areas and
features of the Valmont Butte property to reflect the F'I'C
• Feb. 18 -Archaeological material was viewed and interpreted by representatives of nine
American Indian tribes and the presidents of the Medicine Wheel Coalition and the United
Tribes of Colorado
• Feb. 19 --Consultation meeting between American Indian tribes and the city of Boulder
• March -Community Review Group (CRG) Meeting(s)
• April 15 -Information Item to City Council from staff on history and status of Valmont
Butte site proposals
• April 17 -City Council site tour
• April --CRG Meeting(s)
• April EPA representative site tour
• .May -CRG Meeting(s)
• June 8 -City Council site tour
• July -Concept Study on FTC to address CRG comments
• August --EPA began Valmont Butte Site Reassessment
• September- IRO Resources Corporation updated assessment to incorporate additional site
analysis
• September - "Traffic Study prepared by Fox Higgins Transportation Group to evaluate the
potential traffic impacts of proposed site improvements
• November -City Council authorized the sale of two acres of the site to Boulder County
2005
• January --EPA released results of site reassessment
• April Formal American Indian consultation
• March 4 --Community and finvironmental Assessment Process (CF,AP) document issued
• March -Final meeting with CRG to discuss LEAP document
• April 17 -Formal consultation with several American Indian tribes concerning the CEAP
document
• May 31 --City Council study session with city staff included a briefing on the Valmont
Butte proposals, the status of efforts to address public issues and concerns and the next
steps in the process leading up to a Council decision
• June 14 -Five-board public meeting was held to gather community input for the boards that
would consider the proposals at their separate meetings
• 3une 16 -City Council Study Session summary accepted
• July 7 -lnformation Item to City Council in response to Council questions about Valmont
Butte site development
• July 18 -Five-board public meeting continued
• Aug. 16 -City Council held a public hearing and determined not to pursue a BRC and
directed staff to return with alternative sites to locate a 1•°I'C
• Dec. 16 Valmont Butte Remediation initiated
17
L
2006
• January -Valmont Butte Prairie Dogs were tested for uranium
• February -Valmont Butte Prairie Dogs deemed appropriate for relocation by CDPIIE
• Feb. 21 -City Council selected the Wells site (near the 63r`' Street Water Treatment Plant)
as the location for the FTC and directed that the Valmont Butte property be offered for sale
to Trust for Public Land or another buyer
• May 4 CDPHE accepts city remediation plan
• July 7 -Information Item to City Council on plan for remediation and prairie dog removal at
Valmont Butte
• July 20 -Information Item to City Council on the status of the sale of Valmont Butte
• Nov. 17 Phase 1 of remediation work begins
2007
• Jan. 30 -City Council Study Session on Valmont Butte site '
• April 9 -City Council Sttidy Session summary accepted
• I`eb. 2 - Phase I of remediation work completed
• May, 29 -City Council authorised the disposition of 0.491 acres to Western Disposal
• Sept. 13 -Information Item to City Council providing an update on Valmont Butte and F"I'C
at Wells site
• Nov. 9 -Phase II remediation work begins
• Dec. 21 -City issues letter to Rocky Mountain Peace and Justice Center in response to
concerns about Valmont Butte site
2008
• March 13 -Information Item to Ciry Council on the status of FTC development at Wells
site.
• April 30 -city notified by Walsh Environmental Scientists that the prairie dog population on
the Valmont Butte site has significantly decreased in size since last year. Boulder County
Public Ilealth was notified, visited the site to take samples to test for the plague and posted
sigms on the property that warn of possible plague infection.
18
Attachment B
Valmont Butte Historic Resources
Designation of Historic Resources at the Valmont Butte
A 2001 Historic Resource survey of the Valmont Butte site detennincd that that a number of
resources an the properly are eligible for listing in the National Register of Historic Places. These
include the main flotation mill building and adjacent water pump house. The flotation mill at
Valmont is recognized as being one of only several still in existence in the United States. The site
is also eligible for listing in the State Register of Historic Places and as a local (county) landmark.
Policy 2.34 Leadership in Historic Pf-erervativn: City and County Owned Resources, of the Boulder
Valley Comprehensive Plan states that, "The city and county will evaluate their publicly owned
properties to determine their historic, architectural archaeological or cultural significance. Eligible
resources will be protected through local designation. Secondary buildings that are part and
convey the cultural significance of a site ...should be retained/preserved as well."
Condition Assessment and Historic Assessment of the Mill Site
Hansen/Handley & Associates completed a preliminary condition assessment of the mill site in the
fall of 2006. The assessment focused on the two structures determined to be eligible for listing in
the National Register of Historic Places (NRHP). Specific facilities include: the Valmont Mill
including the Ore Mixing Bin, and the southernmost Pump I--louse with the Water Clock. In
addition, the report also evaluated the water reservoir. The condition of these facilities is
summarized in an excerpt from the report:
'7he Valnzonl Mill's structure is in ~°eznar•kahly good condition considering that it has not
had aweather-tight shell for many years. There are three areas that need attention for
basic stabilization: the leaking roof,' the bowed area of the east wall, plus wall and window
covering to keep out weather and vandals. "
Hansen/Handley & Associates provided cost estimates for the work necessary to stabilize these
facilities. The estimated cost to complete the most critical work to stabilize the Valmont Mill and
the Ore Mixing Bin is $106,000. The work includes repairing the roof and siding, replacing rotted
framing, grading soils around the exterior to provide drainage away from strictures and providing
additionat roof framing. This work is considered first priority. Additional stabilization work on the
ancillary structures are second priority with an estimated additional cost of $29,300. Total
stabilization costs are estimated at $135,300.
The consultant also identified in the report the following three options for potential use of Valmont
Mill:
l) stabilizing the buildings as a short term solution;
2) using the mill as an operating mill; and
3) turning the mill into artist studios.
The fallowing map identifies the buildings eligible for historic designation.
19
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Lll
Attachment C
Valmont Butte Site Remediation
Phase I: Removed hazardous materials located outside the tailings ponds in the form of storage
drams, PCB Transformers, contaminated and radioactive soils and other miscellaneous items.
Staff contracted with Terracon to develop a scope of work for the removal of the materials and
to monitor the waste removal done by Stoller, an environmental waste management contractor.
A specific health and safety plan was required for this phase of the project. It is planned that
radioactive and contaminated soils located outside the tailing pond areas will be moved to the
primary tailing pond area and will be spread and covered as part of the Phase III cap restoration
work. The actual costs for Phase I work are approximately $169,000. Information for this
phase of the work is available for public viewing at the I'AM Office, 1720 13`h St. The name of
the publication is: Final Report Vabnont Butte -Hazardous and Industrial Waste Removal and
Disposal, dated Februmy 2, 2007.
Phase II: Inventory, sample and remove approximately 50 prairie dogs ftom the primary
and secondary tailings pond areas as required by the covenant agreement with CDPHE
(Note: This estimate is based on an April 2008 inventory conducted by Walsh. Previous
inventories were conducted in March 2006 by Roe F,nvironmental Services indicating that
approximate]y 300+ prairie; dogs would need to be relocated and in March 2007 by Walsh
indicating that approximately 150 prairie dogs would need to be relocated. Walsh attributes
the reduction in population to environmental conditions in 2007 and due to a possible plague
outbreak in 2008. A barrier to prevent prairie dogs and other burrowing animals from
entering the area was constructed in December 2007. If prairie dogs cannot be relocated,
then lethal control may be necessary to remove all the prairie dogs from the cap areas. T'he
estimated cost for this phase of the work is $181,000. The cost was originally higher than
the current estimate due to several factors, specifically, the number of prairie dog relocations
necessary has been reduced significantly, anticipation that the majority of the prairie dogs
can be relocated on the Valmont site, and the type of mitigation fence has been changed to
heavy-grade vinyl rather than steel due tv the recent increases in steel prices. The vinyl
fence has afive-year warranty and cost approximately $11.18 per linear foot to install vs.
$28 per linear foot for the steel Fence. The total length of mitigation fence installed was
approximately 4,7001inear feet. After prairie dog removal, the empty buI70WS will be filled.
Phase III: After the prairie dogs are removed and prairie dog mounds are leveled, a separate
contractor will move contaminated and radioactive soils ]ocated outside the tailings ponds
area to the primary tailings pond and restore the cap. In addition, two diems of low-level
radioactive mixed waste will also be moved to the primary tailings pond and spread prior to
capping. The tailings ponds were originally covered by a cap consisting of a layer of inert,
clean fill material. This cap has eroded and has been disturbed by prairie dogs and must be
restored. Estimated cost for this phase is $647,000. The cost of this phase has increased
significantly due to city-owned soil at the airport being removed to support airport
development opportunities prior to cap restoration work and due to increased fuel prices
associated with transporting a large quantity of capping material to the site. Approximately
27,000 cubic yards of clean fill material to cap the tailings ponds will need to be imported
by the contractor. The city has contracted with '1'eiracon to prepare the Limited Impact
Special tJse .Review application for submission to Boulder County. In addition, Tenacon
has prepared the specifications for this phase of the work. "The city has postponed submittal
of the Impact Special tlse Review application until after the terms of the sale agreement
with TPL are finalised.
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Prairie Dog Management
Sample results for the suspected outbreak of plague arc expected the week of May 12`h. FAM
will coordinate with Boulder County Public Health to complete any mitigation activities
necessary. After mitigation is complete, any remaining prairie dogs must be removed from the
tailings ponds areas before the majority of remediation on the site can occur. The city will
follow the city's Urban Wildlife Management Plan (UWMP) and city ordinance protocol (the
"six steps") in determining the removal method of the prairie dogs i.e., relocation is the
preferred alternative. "1'he prairie dog removal process is expected to commence in July 2008.
Since March 2007, staff have contacted interested parties and placed notices in the newspaper
requesting public help in finding an approved relocation site. To date, no suitable relocation site
except Valmont Butte has been identif ed. in an effort to minimize lethal controls, staff
contracted with Walsh to determine the number of prairie dogs to be relocated from the tailings
pond caps and if any opportunity exists to relocate them in other areas of the Valmont Butte site.
Walsh estimates indicate that approximately SO prairie dogs will need to be relocated as of April
2008. This number is approximate since the number of young prairie dogs that survive depends
largely on environmental conditions (breeding season is between March and June) and due to
the suspected outbreak of plague. Staff will attempt to relocate as many prairie dogs as possible
to areas outside the tailings pond caps on the Valmont Butte site. However, limited use of lethal
controls maybe necessary if all prairie dogs cannot be relocated on site or off site.
Valmont Remediatian Timeline for 2008
May: Sample results to determine if plague is present. Begin any mitigation
activities as determined by Boulder County Public Health.
Re-issue the RFP for relocation of the prairie dogs.
Contractor selection for prairie dog removal. Contractor and Walsh submit
relocation plan to Colorado Division of Wildlife for prairie dog relocation.
Jun.-Jul.: Complete mitigation if plague is confirmed. Obtain approvals and remove
prairie dogs from the tailings pond cap areas. Fill in empty burrows.
Submit Limited Impact Special Use Review application per the sale
agreement.
Issue the RFP for installing additional cap materials.
Aug.-Oct.: Capping contractor completes installing cap materials.
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WEEKLY INFORMATION PACKF,'I'
MEMORANDUM
TO: Mayor McGrath and City Council
FROM: Stephanie A. Grainger, Interim City Manager
Paul Fetherston, Deputy City Manager
Kara Mertz, Assistant to the City Manager
Mike Patton, Director of Open Space & Mountain Parks
Doug Newcomb, Property Agent, Open Space & Mountain Parks
Maureen Rait, Cxecutive Director of Public Works
Joe Castro, Facilities & Fleet Manager
Bill Boyes, Facilities Maintenance Program Manager
DATE: July 31, 2008
SUBJECT: Information Item: Follow up to City Council questions at the May 15,
2008 study session regarding the update on the Fire T"raining Center construction at the
Wells site and the update on Valmont Butte
EXECUTIVE St1MMARY: At the June 3, 2008 City Council meeting, it was
determined that a public hearing and discussion item involving the Trust for Public
Lands (TPL), along with formal council action regarding potential property sale at
Valmont Butte, would be scheduled for the Aug. 5, 2008 City Council meeting. Council
supported reviewing the summary of the May 15, 2008 study session, regarding the
update on the Fire Training Center constriction at the Wells site as well as the update on
Valmont Butte and discussions with Trust for Public Land about a potential property sale,
in advance of the Aug. 5, 2008 meeting. The Study Session summary was accepted at
the July 22, 2008 City Council meeting. In addition, information has been provided in
this Weekly Information Packet (WIP) item in response to questions raised by council at
the May 1 S, 2008 study session, including:
• criteria used by the Indian tribes to authorize ceremonies and access under the
MOl J,
• site alternatives analysis done for the Wells site and the Valmont Butte site for the
Wire Training Center, and
• clarifying the expenses incurred to date related to site remediation.
COMMUNITY SUSTAINABILITY ASSESSMENTS AND IMPACTS:
1?nvironmental: Staff is working with "The Colorado Department of Public Health &
Environment (CDP1-IE), as the regulating agency, per the covenant agreement, to
appropriately manage the Valmont Butte site. Staff is complying with the city's Urban
Wildlife Management Plan (tJWMP) and city ordinance protocol for prairie dog
management.
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Social: Remediation work at the Valmont site may implicate cultural and historical
preservation issues. Memorandums of Understanding (MOUs) between the United
Tribes of Colorado (UTC) and the city affirm the significance of the working
relationship.
Economic: The Valmont Butte property was 101 acres when purchased. The
Utilitiesi Wastewater Fund paid $1.3 million for 36 acres, the General Fund paid $1.0
million for 38 acres, and OSMP paid $300,000 from the Open Space kund for 27 acres.
Valmont Butte's saleable area is 71 acres, including the Valmont MiII. "The purchase
price for the 71 acres (that are now being considered as available for sale) was $2.3
million.
OTHER IMPACTS:
`The city could sell the land at Valmont Butte subject to use restrictive covenants. These
covenants would be intended to assure that future land uses preserve the character of the
property. To date, the council's goal has been to have the future use of Valmont Butte
stay compatible with what is currently there (i.e., no existing operational use). A
preliminary assessment of the impacts of alternative uses will be included in the Aug. 5,
2008 agenda item.
BACKGROUND:
A City Council Study Session was held on May 15, 2008 and included an update on the
Fire Training Center construction at the Wells Site and an update on discussions with
TPL about a potential property sale at Valmont Butte. The appraisal report was made
public in advance of the May 15 Study Session in order to be transparent and open in
these negotiations. Normally, appraisal information is not shared until such time as a
contract has been made. 1 he City Council accepted the summary of the May 15 study
session at its July 22, 2008 meeting.
At the June 3, 2008 City Council meeting, it was determined that a public hearing and
discussion item involving TPL along with formal council action regarding potential
property sale at Valmont Butte would be scheduled for the Aug. 5, 2008 City Council
meeting. At the June 3 meeting, staff also agreed to prepare a Weekly Information
Packet (WIP) during July addressing additional questions raised by council at the May
15, 2008 study session including:
• criteria used by the Indian tribes to authorise ceremonies and access under the
MOtJ,
• site alternatives analysis done for the Wells site and the Valmont Butte site for the
hire "Training Center, and
• clarifying the expenses incurred to date related to site remediation.
2
RESPONSE TO COUNCIL QUESTIONS:
United Tribes of Colorado
At the May 15, 2008, City Council Study Session, Council requested information about
the criteria used by the United Tribes of Colorado (UTC) to authorize ceremonies at
Valmont Butte under the Memorandum of Understanding (MOU). The t.JTC is a
committee which includes one representative from each of several Indian tribes.
Each individual member of the tribes participating in the MOU has ceremonial access to
the Valmont Butte site under the MUU, but must schedule their use with Upen Space &
Mountain Parks (OSMP}. Uther persons requesting authorization to access Valmont
Butte under the MOtI have been required by the participating tribes to meet one the
following criteria:
• If the person has a tribal membership card, then they have been approved.
• Any person suspected of holding ceremonies for financial gain has been
disapproved.
• Successful completion of an interview with tribal representatives of the
participating tribes, the substance of which is unknown to city staff.
The tJTC and the city first came together in the 1990's over the additional development
at the federal campus located at 345 Broadway when the U.S. Forest Service and the
National Oceanic and Atmospheric Administration (NOAA) proposed an expansion of
the campus which resulted in a significant community response. The federal agencies
were required to consult with Indian tribes. Representatives of several Indian nations
were brought to Boulder for the consultation with the Department of Commerce (DoC).
The UTC's objection to the proposal, the discovery of a medicine wheel and citizen
concern about proposed building locations provided an opportunity for city intervention.
Funds from OS~VIP were used to acquire a conservation easement and the DoC scaled
back its proposal. The planned construction of a new U.S. Forest Service facility was
eliminated from this site and the location of the NOAH building was set back from
Broadway to west of the Anderson ditch, behind a screening row of trees.
The working relationship between the U"I'C and the city, established as a result of the
NOAA project, has continued. The city has consulted with the tJTC about preserving
cultural resources that may exist on the land purchased by the city. Several consultations
have been held in Boulder with the UTC. The official representatives were chosen by
formal actions of each of the tribes' government. The most respected medicine
men, elders and occasionally presidents of the tribes have participated in consultations.
All the tribal representatives are reservation-based Indians that value preserving their
traditional culture. Uses under all MOUs with the city are required to be consistent
with the traditional values and the ceremonies of federally recognised Indian tribes.
3
Valmont Butte and Wells Property -Site Analysis
At the May 15, 2008 study session, background information was also requested about the
analysis of the Wells site and the Valmont Butte site for the Fire Training Center (1~°1'C).
The Boulder Regional F"1'C was originally planned to be located at Valmont Butte. On
Aug. 16, 2005, City Council directed staff to look for alternative sites to locate the 1`I'C.
On Feb. 21, 2006, City Council selected the Wells site (near the 63~~ St1•eet Water
`T'reatment Plant) as the location for the new FTC. Council further directed staff to sell
the Valmont Butte property and work to recover the original purchase price.
The City Council considered four policy options for the FTC on Feb. 21, 2006. The
policy options were:
l . Continue training at the current Lee Elill site
2. 'Train fire fighters in another community
3. Build a FTC on the Valmont Butte site
4. Build a FTC on the Wells Property site
Background information about the comprehensive alternative site analysis and the
specific site analysis for the Valmont Butte and Wells property are included in the Feb.
21, 2006 agenda item:
httpa/~~•~~~~~~.bouldercolorado.goo/tilesiClerk/Agenclasi2U06,'022106l513.pd1'
The comprehensive alternative site analysis is included in the Community and
Environmental Assessment Process (CL;AP) document for Valmont Butte and
is available on the city's Wcb site at wtvw.valmontbutte.net
The approved minutes for the Feb. 21, 2006 Ciry Council meeting reflect the following:
Councilmember Ageton moved, seconded by McGrath, to accept the staff
recommendation to build the Fire Training Center at the Wells property. As part of this
motion, council directs a•taff to extend outreach to the commercial operations near the
site in an atternpt to mitigate any concerns that they have. The motion carried, 6: 3,
Corrncilmemhers Eldridge, Ruzzin and Schultheis opposed.
Councilmember Gr°ay moved, seconded by Stoakes, tv direct staff to work with the `T'rust
forYublic Land and the Valrnvnt Butte Heritage Alliance and other interested parties to
purchase the Valmont site. Councilmember Ruzzin offered a friendly amendment to add
the following:
1. bringforth a ballot initiative to put a 1 year 0.15% sales tax on the November
2006 ballot dedicated to funding Ahasc 1 of the Fire Training Center; and
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2. purchase the Wellr site,from the Utilities Fund, sell the General Fund portion ~f
Valmont Butte and when the sale of the general fund potion is finalized, retire
remaining debt; and
3. request that Boulder County help fund the Phase li construction; and to
~l. direct the City Mana~rer•, the Director of Public Works and the Water Resources
Advisory Board to investigate incorporating the eastern 36 acres of Valmont
Butte in the sale.
The friendly amendments were accepted and vote was taken on the main motion as
amended. The motion carried, 8:1, Cvunc.•ilmember Eldridge opposed.
Site Remediation Expenses
The city has undertaken remediation for the Valmont Butte site pursuant to the covenant
agreement between the city and the Colorado Department of Public Health and
Environment (CDPHE). The site remediation plan approved by CDPHI involves three
phases of work that are being managed by the city's Facilities & Asset iVlanagement
(FAM} workgroup. Phase I work included the removal of hazardous or potentially
hazardous materials stored on the site. It has been completed at an approximate cost of
$169,000.
Phases II and III involve removing prairie dogs currently living in that area and re-
capping the tailings ponds. Staff is complying with the city's Urban Wildlife
1Vlanagemcnt Plan (UWMP) and city ordinance protocol in attempting to relocate some of
the prairie dogs that are on the tailings pond cap and surrounding areas.
The total estimated cost for remediation of the site as of the May 15, 2008 study session
was reported as $997,000. With increased sampling efforts, additional barrier fencing,
legal fees, environmental monitoring costs, and grant applications, the total estimated
cost for remediation of the site is now $1,127,000. Approxirnatcly $169,000 of this
amount has been spent removing hazardous waste (Phase I), $148,000 has been spent to
date on wildlife assessments, bamer construction and relocation planning (Phase II} and
$27,000 has been spent on cap restoration design (Phase Iii). The remaining Phase II and
Phase III work will cost approximately $783,500. `I he original budget amount for the
project was established in Febi7iary 2006 at $850,000.
Also included in the costs to date totals is the cost ofthe Phase I environmental
assessment ($8,000), costs for a preservation study ($1,400), the city's 50 percent share
of the appraisal ($5,500) and the costs for the asbestos abatement of the mill building
($88,796) that staff erroneously reported at the May 15, 2008 study session as being
included in the total expendihires to date, but in actual tact the costs presented were for
the remediation expenses only.
5
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The following chart summarizes the expense incurred to date and projected remediation
costs for the Vatmont Butte site:
Total Valmont Butte Expenses
7/29/2008
Item Cost
Purchase of Land: 102 Acres $ 2,575,000
Recording Fees 100
Certificate of Taxes Due 40
50% of Closing Services Fee 68
Land Purchase + Closing Costs $ 2,575,208
Phase 1 Environmental Assessment $ 8,000
Preservation Study 1,400
Appraisal 5,500
Asbestos Abatement of Mill 88,796
$ 103,696
Subtotal $ 2,678,904
Remediation Costs to Date 344,000
Total Spent as of 7/23/08 on ALL 102 Acres $ 3,022,904
Less Costs for OSMP Land: 31 Acres (300,000)
Total Invested on 71 Acre Parcel to Date $ 2,722,904
Projected Remediation Costs on 71 Acre
Parcel $ 783,500
Estimated Total Investment on 71 Acre
Parcel at Time of Potential Sale to TPL $ 3,50G,404
Please contact Maureen Rait at 303- 441-3227 or raitmca?bouldercolorado.~ if there
are ducstions regarding this memorandum. Additional information about Valmont Butte
is available on the city's Web site at www.valmontbutte.net
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