Fire levy divides Poudre Canyon

By Cherry Sokoloski
North Forty News

Storm clouds have settled over Poudre Canyon, and they have nothing to do with the weather.

All was peaceful when the Poudre Canyon Fire Protection District had little money and operated out of a cave in the upper canyon and an undersized facility in the lower canyon. In November 2008, canyon residents passed a mill levy to build new fire and community center facilities in the upper and lower canyon, and since then the district has been in turmoil.

Meetings of the PCFPD board have been disruptive, with sheriff's deputies in attendance to keep the peace. The next PCFPD board meeting is set for April 14, 7 p.m., at the upper canyon community building.

In 2008, voters approved the mill levy increase by a margin of 191 to 80. In 2009, the new levy raised $121,000 for the district, compared with nearly $42,000 in 2008.

Since the mill levy election, there's been controversy about the building project and about how the fire district board operates. Some think that the building plans are too extravagant for canyon needs, and others have made accusations about irregularities in board procedures and in the mill levy election.

Three canyon residents, David LaMothe, Robert "Bob" Smith and Maurice Hubbs, asked the Larimer County Sheriff's Office to investigate the mill levy election, claiming election fraud and making other complaints. The sheriff's office looked into the matter and sent its report to the district attorney. In late March, the DA's office decided there was insufficient evidence to prove the case and to prove criminal intent.

The controversies in the canyon have resulted in a "lack of trust" among canyon residents, according to board member Marybeth Snyder.

Tony Falbo, fire chief for Station 1 in the lower canyon, echoed the sentiment. The infighting, he said, is "sticking a dagger in the very heart of the community" and harming the reputation of the fire department.

"There's a small group of people who are acting as obstructionists," according to Falbo. "Their goal is to block construction of these fire stations. Some of these individuals have never contributed to the community."

Falbo stressed that new facilities are desperately needed in the canyon. Fire Station 1 in the lower canyon is so narrow that the fire truck can't pull out until the ambulance is first removed.

"In a real emergency, when seconds count, we shouldn't be spending them just trying to get out of the garage," Falbo said.

He also noted that new facilities are required to handle updated fire trucks. New equipment could lower the ISO rating for canyon properties, and that could decrease insurance premiums for residents.

"The taxpayers voted 2-to-1 to build two new fire stations and community centers and raise the mills to do these projects," Falbo said. "They see a need for a new, modern facility in our district."

One result of the feuding is that the fire district will hold its first board of directors election in more than a decade on May 4. Four of the five seats on the board are up for election, and eight candidates are running.

The last official election was held in 1998, according to board president Bette Blinde. She explained that in the intervening years, there were only enough candidates to fill the open seats, so in accordance with state law the elections were cancelled.

Mill levy dispute

One of the contentious issues is the amount of the mill levy increase approved by voters in 2008. The ballot asked for a hike of 15.65 mills, bringing the total maximum levy to 21.15 mills.

Some have complained that the ballot language was confusing, leading them to believe that the total mill levy was to be 15.65 mills. However, Blinde said that state law dictated the language that was used.

There were circumstances before the election that could have led to confusion about this issue.

An ad hoc citizens group calling itself Neighbors for a Better Poudre Canyon, who were advocating for passage of the mill levy, published a brochure prior to the election. The brochure stated that the district was asking for a mill levy increase "to 15.65 mills" rather than "of 15.65 mills."

That was an error, said Pamela Handy, who served as treasurer of the group. "There was a lot of confusion on the part of a lot of people" about the amount of the mill levy increase, she said.

However, she added, "to the best of my knowledge, there was not an effort on anyone's part to mislead anyone about what the district was asking for. On the contrary, there was a lot of effort spent to avoid misleading people."

In contrast to the brochure information, Blinde wrote an article for the North Forty News in September 2008 that stated, "The November ballot issue will ask property owners to add 15.65 mills to the current PCFPD 5.5 mill levy." The same information was repeated in a North Forty News article following the election.

Misunderstanding over the mill levy amount was heightened when the board voted, late in 2008, to levy 15.65 mills for the 2008 tax year. A year later, they decided to levy the maximum allowable, 21.15 mills, for the 2009 tax year. Those funds will be collected in 2010.

Board treasurer LeAnn Davis explained that the full allowable levy was not needed the first year because the project was not yet in the construction phase. However, the board decided the entire levy was needed the second year since it hopes to begin construction this summer.

Business, buildings

Some have charged that the fire board has not conducted business in a proper or legal manner. Jarrod Biggs of the Colorado Department of Local Affairs confirmed that oaths of office and bonding were not on file as of Feb. 16 for the current directors, except for Blinde. However, he said, the omission "does not necessarily invalidate the board." In a March 23 e-mail to the North Forty News, Biggs said DOLA had received the necessary oaths and bonds and "for our purposes they are compliant with the filing requirement."

Snyder noted that the fire district is in a transitional phase. "We're going from talking about the annual picnic to handling millions of dollars," she said. "We're having a hard time making those transitions."

Part of the transition, Snyder said, involves being more careful when it comes to following proper board procedure. "There's a manual for special districts listing the Colorado statutes, and I'm trying to help us be more compliant," she said.

For instance, she said, the board has sometimes failed to write meeting minutes and has approved some expenditures after the fact. Also, she claimed, the board voted on which architectural firm to hire but did not vote on the actual contract with that firm.

Snyder said she has had difficulty obtaining board records that she requested and she wants the board to be more transparent in its conduct of business. However, she said, "I see no point in going backwards. We have enough work to do going forward."

Proposed building designs are also in dispute. Some complain that plans for the fire stations/community buildings are too elaborate and expensive. Falbo's answer was, "Absolutely not." Plans have been scaled back, several board members explained, to fit within available funding.

Blinde said the buildings are being designed to "serve the community for the next 50 to 100 years" and will provide flexibility so they can function in a variety of ways.

Board member Snyder said she thinks the board should look at less expensive options, such as a metal building.

Other issues concerning the Poudre Canyon project follow.

• Financing: The fire district has received a grant of $400,000 from DOLA. It has applied for a FEMA grant of $2.8 million and is still in the running for that grant. However, Blinde said, since the FEMA money is still uncertain, the board is negotiating for a $1.1 million "lease/purchase," which is similar to a loan. The lease/purchase would be paid off over 20 years with mill levy revenue.
       Smith, a fire board candidate, complained that Blinde, in a letter to canyon residents shortly before the mill levy election, said the project would require maximum financing of $1 million. He is opposed to the current board entering into a financing agreement before the May election.

• Building schedule: Blinde said the board is trying to finalize the financing by the April meeting so that construction can begin in June. Plans are to build the upper canyon facility first, using half the funds from the lease/purchase. The remainder of the funds will be set aside for the lower canyon facility. The building committee for the lower canyon is still discussing options for that facility, she said.
• Property leases: According to Davis, the treasurer, the fire board has finalized land leases for the new fire/community buildings in both the upper and lower canyon. The leases are set at $1 per year for 99 years, with options for 99-year extensions. The Old Poudre City Corporation owns the upper-canyon site, and the Lower Poudre Canyon Association owns the lower-canyon property. Both property owners are not-for-profit organizations, according to Blinde.
• Hiring of construction manager: Smith complained that it was not proper to hire Bill Sears, a former fire board member and designated election official, as construction manager in November 2008. He was paid $4,000 per month in that position, which he held through August 2009.

Blinde stated that four candidates were considered, and Sears had the necessary construction experience, was familiar with canyon residents and was willing to work full-time "for half the average salary of managers of comparable projects."

She cited a long list of duties that Sears performed during his tenure, including work with the building committees, county agencies, site owners and the architect.

Falbo agreed that Sears was "very active in the process and worth every penny."