Metro board completes its takeover of COA
Those for and against the move differ over its long-term effect.
By MIKE SPENCE
The Pueblo West View
The Pueblo West Metropolitan District board of directors completed the takeover of the Committee of Architecture at its May 12 meeting.
Board members approved a resolution to assume the responsibilities of declarant in all tracts of Pueblo West. In so doing, the metro board became the oversight body for the COA.
Pueblo West's covenants - the rules on how Pueblo West buildings can look or be built, situated or maintained - are interpreted and enforced by the COA.
The vote was 4-1 with board members Jeff Sloan, Stan Hren, William Vickers and Steven Abel voting for the resolution. Board member John Van Auken voted against the resolution.
While some board members felt the move would ensure covenants in Pueblo West are enforced beyond buildout, others have disputed that, saying that decision would be up to the residents in each individual tract.
Van Auken told board members on several occasions that the metro board can't exceed the authority granted the COA in the original declaration of reservations (covenants). Enforcement of covenants beyond build out, issuing fines, creating an appeals board are items that must be voted on by the property owners in each tract.
Another benefit touted in the takeover was that the COA would be guaranteed funding. But critics said now that the COA is part of the metro district budget, it would fall under the TABOR rules and that any money spent on the COA would mean cuts in other departments.
Under the previous rules, set up early in Pueblo West's formation, the COA loses the power to enforce covenants in each tract where buildout reached 90 percent.
The May 12 vote ended a process that began in late November when the metro board voted to dismiss the board members of Triark, Inc. (the body that had oversight over the COA), and replace those individuals with themselves.
The board sought to disband Triark because, its creation was in violation of the original agreement between the metro district and McCulloch Properties, signed in 1992, Vickers said.
Under that agreement, the metro board was to serve as the oversight body in the operations of the COA.
"Metro shall have the right to remove and approve the members of the (COA) . . . and in general direct its affairs," the agreement said.
The agreement was "proprietary and binding upon the metro district and upon the present metro district board of directors and all metro district board of directors as constituted from time to time in the future."
In addition, the metro district agreed not to change the terms of the contract with McCulloch Properties.
"Metro shall not take any action or omit to take any action which . . . would have the effect of violating . . . the agreement," the contract said.
The non-profit Triark was created in 1996 to serve as a legal buffer between the COA and the metro board. Triark's duties had been oversight of the COA, including the appointment of COA members.
Metro board members, specifically Hren, Vickers and Abel, had been unhappy with the performance of the COA and also with the fact that it had to approve supplemental funding totaling $125,000 to keep the COA in operation throughout 2008.
COA had traditionally been funded by land sales. But land sales have been sparse recently, with only one sale recorded in 2008. One sale is pending for 2009.
Metro board members also felt they had little control over the COA, although they often heard complaints from residents about COA actions. Triark served not only as a legal buffer, but as a roadblock to metro board control over the COA, Vickers said.
Critics slammed the metro board's move for its abruptness - Triark board members were not informed beforehand that they were going to be dismissed. Critics also blasted the move because they felt it would put the metro board in legal jeopardy for decisions made by the COA.
The metro board's takeover of Triark sparked the first talk of a recall effort. That effort is now in full swing, with petitions having been filed and a recall election likely will be held in mid-summer.
However, board members pointed out that the COA had often boasted that it had never lost a court case. They also plan to create an appeals process that likely will reduce the number of legal challenges to COA decisions. In the past, residents unhappy with COA decisions could appeal to the COA or take their complaints to court.
The metro board was advised by the metro district's legal counsel in 2004 that Triark was unnecessary and that it could disband Triark and take over control of the COA, but chose not to do so.
Current board members said a state law that took effect in 2007 made Triark unnecessary.
Tom Mullans, the district's attorney, supported that interpretation, saying 2007 law says covenant enforcement can be funded by the same community which is subject to the covenants.
Metro board members had been serving as the Triark board since late November. On May 12, they adjourned the metro board meeting, convened the Triark board, then went through a process of electing Triark officers.
Once that was complete, the Triark board (metro board members) voted to cede the role of the declarant to the metro board and adjourned the Triark board meeting. Again the vote was 4-1 with Van Auken casting the dissenting vote.
At that time, the metro board reconvened its meeting and approved the resolution assuming the duties of declarant.
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