Rocky mineral rights deal passes in 4-3 vote in spite of opposition

Saturday, June 20, the Town of Erie made an announcement that Councilmember Brian O’Connor had reconsidered the mineral rights deal and was bringing the motion back to a vote on June 23. On June 16, the vote failed in a 3-3 tie, with Councilmember Dan Hoback absent and O’Connor opposing the deal. 

Tonight, 47 residents spoke in public comment regarding the deal, with 35 in opposition. Residents also submitted over 428 pages of comments online, with analyses showing over 90% of the letters submitted in opposition. Those efforts also included a letter to the council with 227 signatures requesting that council vote no. O’Connor appeared to hesitate in his closing speech, but his position was clear in his verbiage throughout the meeting.

Consistent with previous votes, which had been controversial among residents (such as Redtail Ranch, pride flag policy and Executive Session transparency), the council chose to vote 4-3 in favor of Erie selling its mineral rights. Councilmembers Anil Pesamarelli, Emily Baer, and Dan Hoback voted against, while Mayor Andrew Moore,  Mayor Pro Tem Brandon Bell, and Councilmembers O’Connor and John Mortellaro were in favor.

While supporters emphasized the purported safety measures and fiduciary benefits, the opposition scrutinized the processes of the deal itself, raising legal and ethical concerns that have escalated over the past months.

These include violation of town procurement policies when hiring the consultant firm Alameda Mineral Advisors, improper use of confidential Executive Session meetings, possible violations of Alameda’s contract with the town, and lobbying from Alameda CEO Matthew Owens for residents to contact O’Connor and ask him to reconsider his no vote.

Mayor Moore stated that town staff in charge of the procurement process did not follow town guidelines, and that none of the councilmembers were aware of this breach of policy. Hoback stated it differently. “As for not following the town procurement process, to my knowledge, that process was never passed to town staff. Town council was in complete control of the vendor selection process.”

He continued to say, “This deal, since the beginning, has had valuations all over the place.”

Bell spoke for over 24 minutes, as he did at the June 16 meeting. His comments focused on the inevitability of the Draco Pad, the estimated 30 to 44 million dollars of the deal and advice to his critics, whose comments he characterized as “not even worthy of discussion.”

The evening ran long, but after three hours, the council voted 4-3 in favor of selling the mineral rights. Selling mineral or water rights is a permanent, high-stakes financial decision, and one that should not be taken lightly.