Timothy V. Corrigan District 1 Dougies 8, Monger District 2 Cari Hormacinski Districts Thomas A, Sutvan ‘County ttsnager ROUTT COUNTY BOARD OF COUNTY COMMISSIONERS Box 773698 - Steamboat Springs, Colorado 80477° Phone: 970-879-0108 - Fax: 970-879-3992 April 24, 2018 Re: City of Steamboat Springs Road and Bridge Fund Payments Dear Ms, Hor, We are aware of the overpayment of Road and Bridge Fund monies to the City of Sisamboat Springs from the County and the letters that have passed between your Office and the City. We have engaged withthe City and believe the problem san be resolved most efficiently without further action by your Office. Thus, we eepectfilly request that you give County staff an oppottunity to do so, Furthermore, we do not believe that engaging yout attomeys to work cn this ‘matter Would be a productive use of your resources and respectflly request that Zou allovy us two weeks to reach a resolution before needlessly spending more County money on attorney fees, Thank you in advance for your consideration. if Sincerely, Ce: Kim Weber, City of Steamboat Springs; Dan StmadDN ROUTT COUNTY Patrick Karschner | Chief Deputy Patrick Gavin Deputy Treasurer Katrina spivey Deputy/Bookkeeper Aida Rife ‘Administration OFFICE OF ROUTT COUNTY TREASURER BRITA HORN, Treasurer P.O. Box 770907 Steamboat Springs, Colorado 80477 (970) 870-5555, fax (970) 870-5426 Email treasuren@co.routt.co.us Web Site: httpv/www.co.routt.co.us/ Via Hand Delivery Board of Commissioners Routt County 522 Lincoln Avenue PO Box 773598 Steamboat Springs, CO 80477 Date: April 25, 2018 Dear Mr, Monger, Ms. Hermacinski and Mr. Corrigan: Your April 24" letter asks me to stop performing the duties of the office to which I was elected and to delegate these duties to unelected county staff. The Colorado Constitution does not permit this. Whether the request comes from you or someone else, I can’t—and won’t—stop doing my job. Your request reveals an understanding of republican (small “r”) government that differs radically from the approach that the Colorado Constitution adopts. The Colorado Constitution designates County Treasurers as independent officials of the State of Colorado, Treasurers are not subordinate to or just an adjunct administrative offshoot of County Boards of Commissioners. There's a reason for this independence. It isn’t efficiency. ‘The checks and balances that the Colorado and U.S. Constitutions establish don’t aim for efficiency: “The doctrine of the separation of powers was adopted by the Convention of 1787 not to promote efficiency but to preclude the exercise of | arbitrary power.” Myers v, U.S., 272 USS. 52, 85 (1926), Giving separate authority and abuse that concentrated power invites to separate officials promotes accountability and avoids the potential arbitrariness It separates tax-collection and payment issues from polities, And it prevents politically-sensitive commissioners from cutting back-room, sweetheart deals with well-connected taxpayers that aren’t available to others and from just ignoring the law altogether.Board of Commissioners Routt County \pril 25, 2018 age 2 of 2 We covered the same ground less than two years ago in Peabody Coal Co.’s bankruptey, Then, the commissioners sought to allow Peabody to avoid paying interest on its taxes that any other taxpayer ‘would have to pay. To try to cut this sweetheart deal, the commissioners tried to strong-arm and elbow out the Treasurer to usurp the Treasurer’s duties for itself—just as it is doing now. My letter to you then, also expresses my sentiments now: 1 aspire to serve and represent our residents by leading with intention and consistency, and believe that I have done so. I would like to work with you to serve the interests of Routt County as a whole. But I cannot do so when you attempt to compromise the independence of my office and my ability to perform my duties Letter, B. Hom to BCC, July 8, 2016 (attached). Please let me know what authority the commissioners have authority to “resolve” Steamboat’s tax-payment issue, Without such authority, any “efficient resolution” that county staff or the commissioners might reach with Steamboat is likely for naught, Your letter implies that the county foresees a “resolution” that allows Steamboat to forego or avoid this repayment. I'd be happy to discuss with Steamboat a sensible resolution that follows the law. Although I'd really like to be wrong about this, the commissioner's past actions and its request that I stop doing my job suggests that it has omething else in mind. No. Sincerely, a— Brita Hon Routt County Treasurer City of Steamboat Springs Director of Financial Services Kim Weber City of Steamboat Springs Staff Attorney Jennifer Bock Citizens of Routt CountySteamboat Springs 33 City Attorney’s Office April 23, 2018 Brita Horn Routt County Treasurer 522 Lincoln Avenue PO Box 770907 ‘Steamboat Springs, CO 80487 RE: April 15, 2018 Road and Bridge Fund payment Claim for Recoupment. Dear Ms. Horn: ‘The City isin receipt of your letter of April 16, 2018 regarding your office’s decision to withhold the road {and bridge fund payment due to the City on April 15, 2018. The City wishes to seek reconsideration of. this decision or to appeal ttf reconsideration is not granted. ‘The April 16 letter provides no authority forthe proposition that your office may act independently of the Board of County Commissioners to pursue recoupment or to disregard your statutory obligation to make the April 15 payment. Nor does the letter identify the procedures applicable to such an action. Consequently, itis not clear to the City whether or in what manner the City might seek reconsideration of this decision or appeal it to another body. The City requests clarification on this point. To the extent such a procedure is available, please consider this letter to be a request for reconsideration and a notice of appeal, in addition to the question of your authority, the grounds for reconsideration and/or appeal are as follows: 1) Your office's decision to withhold the April 15 payment was made without due process of law. The City received no prior notice of the decision and was not provided an opportunity to ‘comment. 2) The calculation of the amount of your office's claim for recoupment is erroneous due to an inaccurate statement as to the Gross Assessed Value of real property in the City of Steamboat Springs in the year 2013. Your calculations are based on a Gross Assessed Valuation of {$569,938,833, The correct Gross Assessed Valuation amount is $596,938,833. This error increased the total sum of claimed overpayments by $11,232, The City requests that your office reduce the recoupment claim by this amount. Please see the attached spreadsheet for more detail 197 10th Street, P.O. Box 775088, Steamboat Springs, Colorado 80477-5088 (970) 879-2060 * Fax (970) 879-8851 * www.steamboatsorings.net3). The April 16 letter does not cite any authority for the assessment of statutory interest on the Fecoupment claim. Nor is the City aware of any such authority. The City requests clarification as to the basis for the interest assessment and that you reduce the claim by the amount of the interest assessed. 4), The six year statute of limitations set forth at C.R.S. 13-80-103.5 and cited in the April 16 letter applies only in the case of claims based on contract, Pound v. Fletter, 39 P.ad 1241 (Colo.App. 2001). The City requests clarification as to whether your office considers there to be a Contractual basis for the recoupment claim. If not, the City requests that your office recalculate the amount of the claim using the two year statute applicable to actions against municipal ‘corporations, which is set forth in C.R.S, 13-80-102(1)(h). Please contact me with any questions or comments regarding this matter. sincerely, Bree snnifer Bock Staff Attorney Cc: Steamboat Springs City Council Dan Foote, City Attorney Gary Suiter, City Manager kim Weber, Director of Financial Services Erick Knaus, County AttorneyBTS $ SeSrO'eZZ$ LivOR'LZZS %GBI90'0 —OBO'ear ‘eer § OE'ELZ'Z $ OBO'LHL'IyY $ 3002 —S00z zaree'z $ ae'vEs'ez $ gE'saB'sTZ Ss HOSISO'O —ogL‘UEE'eyy $ ONZ'yLY'S $ OzO'SH ‘esr $ L00z 900. STESL —$, LB'SZe'ePe $ eS OLO'GHZS HOSED —GFF'9ES'VD —§ IZE'SOI'EL $ OLL'LHO'DG $ 300Z ——-L00z gveis's $ ee'tLe'0se $ ezest'sye$ woOLETO ——Lza'ZES'z99$ .ZeS"eOL'SL $ eG0'LOR'aL9 $ 300 800 SE'GES'LL $ vO'LEL‘09 $ GOTEL'sHZ Ss HGEEZT'O ——LSE'GHL'e9B $ OI'SLL'Ly$ ‘HOP'veS's0e $ OZ 6nd G9'e9H'LL $ go'eEe'ser $ GE'ELJ'ePZS %SLEZ0 —isTiyese —$ OUB'SEE'US$ ZeO'LUS'OIE $ LLOZ Loz. (oozez't) § — sousieyia ‘99'S07'@O! $ seinseely Aunog Aq peyeynoje9 yunowy Zus'9EL'vy $ gos'esl'e69 § Z0Z LOZ Ozz'oze'sy $ oes'ear'z69 $ 810z —Zh0% Opz'soe'ee $ ees'eee'ses $ r0Z = eL0z $ S GOLEe'ssZ $ se'eGL'zve $ WOLLEV' —_—9E6'OPF'tgo $ srzeu'ssz $ Le9s1'eez $ %S99E0'0 —OL8'zrs'zs9 seess'sl § sgoze'sre $ OzeaL'leZ $ KO9I~0'0 —_Ee0'seL'zg9 8 8 $ PEC $ veSee'NSs asOEr'zeZ $ KOELHOO —y9R'ZZL'SS § —LL'IZI'ee $ soz pl0z ssezs'eae $b} LeL'8ez $ %996e00 —oLe'rrz'809$ 08'e09'eE $ g10z shoe So'vPs'ese § HTPH'LEZS SZ __ZLe‘ePe'rOD_$ Gar'sZO'Ly $ OPaeLe'Sve $ LLOz _910z sousroyig — Ajo ep Aq AAOTHIN ANTI woReNeA wOReRIeA 180, pled Jee, XE] Posy WNOWY FRXIOK%IS ABYIOKOG possessy AiIDIN Pessossy 411 —_possassy X possosse jon ‘ssoig Ag SLOB/LLY 4899M why q paredadd: Supung aBpug @ peou sBuuds weoquieers yo Aug[ * ROUTT COUNTY OFFICE OF ROUTT COUNTY TREASURER BRITA HORN, Treasurer P.O, Box 770907 Steamboat Springs, Colorado 80477 (970) 870-5555, fax (970) 870-5426 Email treasurerf@co.routt.co.us Web Site: hitp/www.co.routt.co.us/ Patrick Karschner Chief Dept 1a Fenail ‘ me Via Email and Mail Delivery Tennifer Bock, Esq, City of Steamboat City Attomey’s Office trick Gavin Deputy Treasurer J Ss pepity/tookeceper | 137 10th Street, P.O, Box 775088 Steamboat Springs, CO 80477 Aida Rite ‘Administration | | j | | | | April 26, 2018 Re: Response to informal appeal of decision to recoup over-payments to Steamboat from Routt County Road and Bridge Fund. Dear Ms. Bock: I write to respond your letter of April 23, 2018. | | A county treasurer does not need permission from a Board of County | Commissioners to perform the duties of her office, or to act independently of county commissioners. As a matter of structure and design, county treasurers are not subservient fo or a mere administrative office of a county. The Colorado Constitution establishes the office of county treasurer as an independent office of the State of Colorado. Colo, Const. Art. 14, § 8. Asmy letter of April 16" states, the county treasurer (not the Board of County Commissioners) has the duty to pay the city of the amounts to which they are entitled out of the county road and bridge fund, CRS. § 43-2-202(3) ‘The lawful authority of state officers is not limited to the specific authority that a specific statute confers, It also includes all duties and powers conferred by ‘common law. Colorado State Bd. of Pharmacy v. Hallett, 296 P. 540, 541 (Colo. 1931); CARS. § 2-4-211 (“The common law of England . .. shall be considered as of full force until repealed by legislative authority.”), Recoupment is a common-law remedy to recover funds. Because your letter does not dispute that Steamboat was overpaid or provide any valid basis for Steamboat to retain these funds, Steamboat has received all of the process that due process requires. I understand that the Finance Director Dan Strnad and Chief Deputy Treasurer Patrick Karschner have corrected the error that resulted from a “6” being transposed with a “9,” so we agree on the amount at issue and how to calculate itJennifer Bock, Esq. City of Steamboat Springs April 26, 2018 Page 2 of 2 Colorado applies the six-year statute of limitations to municipalities to recover liquidated debts, rather than the two-year municipality-specifie statute. Fishburn v. City of Colorado Springs, 919 P.2d 847 (Colo. App. 1995) (applying C.R.S. § 13-80-1035 rather than C.R.S. § 13-80-102(1)(h)). The six year-statue does not apply just to contracts, By jts terms it applies to a “liquidated debt or an vidated, determinable amount of money.” C.R.S. § 13-80-103.5(1)(a). An amount is “liquidated” or “determinable” if the amount due is ascertainable by reference to an agreement or by simple computation, See Portercare Adventist Health System v. Lego, 286 P.3d 525, 529 (Colo. 2012). Here, we've both calculated the same amount overpaid through a simple calculation. Even if the two-year statute somehow applied here in substance, the longer, six-year statute trumps it. RTD v. Voss, 890 P.2d 663, 668 (Colo. 1995) (applying statute with longer limitations period to claim against public entity instead of § 13-80-102(1)(h) to claim asserted against public entity) (“[Blecause statutes of limitations are in derogation of a presumptively valid claim, a longer period of limitations should prevail where two statutes are arguably applicable.”), Statutes of limitation technically only apply to a claim that is asserted in court. Nonetheless, my office has, in good faith, limited its recoupment efforts to the past six years to the fiscal impact ‘on Steamboat. This motive also undergirded our reliance Colorado provisions that set an 8% statutory interest rate in the absence of an agreement, rather than the 1% monthly interest that our offices charges for overdue taxes. See C.R.S. §§ 512-101, 5-12-102, and 39-10-104.5. Our office has not adopted specific procedures to address recoupment of any overpayment. As you requested, we have considered your letter as an informal appeal or review of our recoupment decision, For the reasons that this letter contains, we find no grounds that our decision was incorrect. ‘Therefore, we deny Steamboat’s “appeal.” If you have any further questions, please contact me, Sincerely, a Brita Horn Routt County Treasurer cc: City of Steamboat Springs Director of Financial Services Kim Weber Routt County Board of Commissioners Citizens of Routt County