Erie Town Council Special Meeting - October 7, 2025

The Erie Town Council held a special meeting on October 7, 2025, beginning at 6:00 PM. The meeting included public comments, a special district review and policy discussion, a presentation on the Draft Resilience Action Plan, and an update from Black Hills Energy regarding a potential franchise agreement. The meeting concluded with an executive session on litigation. No formal votes were taken on the agenda items; direction was given to staff for future action.

Public Comments & Testimony

• Jason Manley (Director, Erie Highlands District One) and Ashraf Sheikh (resident, 159 Piney Creek Lane) both requested that the Town Council use its Title 32 powers to appoint Josh Mom (or Josh Mall, per later speaker) to a vacant board seat in Erie Highlands Metro District One. They described a 2-2 deadlock since June 2025, inability to conduct business, and a recall petition with over 300 signatures accepted on September 17, 2025. They argued the deadlock is causing dysfunction and delaying budget approvals. The Council did not take immediate action but noted the issue was relevant to the subsequent special district policy discussion.

Discussion: Special District Review & Policy (Item 25-517)

• Staff and guest presenters: Sarah (staff), Melissa Wiley (staff), and Melissa Buck (guest expert in municipal finance) provided an overview of metropolitan districts, their purpose (financing infrastructure for new development), and typical structures. Key points included:
  • Metro districts are created under Title 32, are developer-initiated, and eventually transition to resident-controlled boards.
  • Erie’s current policy caps the mill levy at 55 mills (10 for operations, 45 for debt) and limits developer rate of return to 12–15%.
  • Comparison with peer communities: Fort Collins (restrictive), Boulder (no residential metro districts), Aurora (permissive), Commerce City (recently allowed with strong oversight).
  • Council members discussed potential changes: lowering the mill levy cap, adjusting the point system (which awards points for affordable housing, sustainability, etc.), requiring earlier resident board control, and capping developer reimbursements (e.g., 80% as in Commerce City).
  • Staff will return with options, including a focus on mill levy limits and the point system, and will incorporate survey results and stakeholder input.
• No vote was taken; direction was given to staff to prepare policy alternatives for future consideration.

Discussion: Draft Resilience Action Plan (Item 25-245)

• Presenters: Erica Thorley (Sustainability Manager), Emma Marino (Sustainability Specialist), and three CU Boulder Master's of the Environment students (Stephanie Correa Diaz, Sean Lee, Adam Morata).
• The plan identifies key hazards: ozone non-attainment (since 2004), drought, extreme heat (projected 35–80 days above 95°F by end of century, up from 8 days in 1971–2000), flooding (25% of one census block in 100-year floodplain), and wildfire (moderate likelihood, 58% above U.S. average). Social vulnerability is highest in Central Erie (15% low-income, 34% housing cost-burdened, 33% people of color).
• Community engagement: 8 events, 900+ interactions, top hazards identified by residents were drought, wildfire, extreme heat; top priorities were ecosystems, land use/transportation, water conservation.
• The plan is organized into three chapters: Resilient Infrastructure, Land Management, and Community. Each strategy includes co-benefits.
• Council members provided feedback: desire for an updated draft before November 4 meeting, interest in e-bike sharing, coordination with regional utilities on data center impacts, and consideration of a regular update cycle (e.g., every 5 years).
• No vote; plan will return in final draft form in early November after incorporating council input.

Discussion: Black Hills Energy Presentation (Item 25-539)

• Presenter: Tom Henley (Black Hills Energy) with Utilities Director Todd Fessenden.
• Black Hills serves about 3,000–3,500 natural gas customers in eastern Erie (growing area). The company does not have a franchise agreement; Excel Energy holds one at 3%.
• A franchise agreement would provide the town with a 3% fee on natural gas bills (estimated $50,000–55,000 annually) and establish clear rules for right-of-way use, relocation costs, and coordination.
• Henley presented survey results from 51 Erie respondents (part of a larger 5,000-customer survey): 88% want choice of energy type; 70% oppose state policies phasing out natural gas; 80% oppose paying for neighbors’ conversion to electric appliances; 93% were unaware of PUC proceedings on such fees.
• Council discussed benefits: certainty in operations, leverage in disputes, and consistency with Excel’s agreement. Some raised concerns about cost to ratepayers (the fee is added to bills) and differences between Black Hills’ proposed agreement and Excel’s (Black Hills’ is shorter).
• Staff will bring a franchise agreement for consideration in January 2026, after review by the town attorney.

Executive Session

• Council moved into executive session at approximately 8:30 PM to receive legal advice and discuss strategy regarding the Stratus/Redtail Ranch litigation, under C.R.S. §§ 24-6-402(4)(b) and (4)(e). No action was reported.

Key Outcomes

• Special District Policy: Staff to develop options for policy amendments (including mill levy caps, point system adjustments, resident control requirements) and present to council at a future meeting.
• Resilience Action Plan: Staff will incorporate council feedback, provide an updated draft before November 4, and return the final draft in early November. A second phase with CU students in 2026 will focus on implementation.
• Black Hills Energy Franchise: Staff to finalize a draft franchise agreement for council consideration in January 2026, with comparisons to Excel’s agreement.
• Erie Highlands Metro District: No immediate action; the issue is being addressed through the special district policy review.