SUBJECT:
Title
A Resolution of the Town Council of the Town of Erie Approving a Professional Services Agreement with Alameda Mineral Advisors
Department
DEPARTMENT: Environmental Services
Presenter
PRESENTER(S): David Frank, Director of Environmental Services
Time
TIME ESTIMATE: 30 minutes
end
For time estimate: please put 0 for Consent items.
Fiscal
FISCAL SUMMARY:
Approving the Agreement with Alameda Mineral Advisors has no upfront cost to the Town. Alameda is only compensated if the Town Council approves a sale or lease of its mineral estate, with a 7.5% commission of the final transaction value. The Town avoids any financial risk until Council agrees to a transaction, if/when that occurs. Any future revenue will flow to the General Fund or another designated fund as determined by the Town Council.
Policy
POLICY ISSUES:
This item supports the Town Council’s priority for fiscal responsibility. It gives the Town a competitive valuation of its mineral estate, strengthens negotiations, and ensures any future transaction, if any, reflects real market value. Alameda’s experience in the DJ Basin improves transparency in the process. Their work includes title verification, market analysis, valuation modeling, and competitive bid management, which provides the public with clear information about potential revenue opportunities. This supports open decision making during future hearings or resolutions involving mineral assets.
Recommendation
STAFF RECOMMENDATION:
Approve the Resolution authorizing the Town to enter into a Professional Services Agreement with Alameda Mineral Advisors for the purpose of evaluating the potential value of certain mineral rights owned by the Town of Erie, to solicit bids, and to advise the Town in negotiations involving potential sale, lease, or conveyance of those assets.
Body
SUMMARY/KEY POINTS
• The Town of Erie owns extensive mineral rights attached to certain parcels within the Town’s Municipal Boundary.
• The Town needs an independent valuation to understand the true market value of its position.
• Alameda provides ownership verification, market analysis, valuation modeling, and competitive bid management. Their work ensures the Town receives accurate information and multiple offers, not a single-operator proposal.
• Alameda only receives payment if Council approves a sale or lease; a 7.5% commission of the final transaction value, including any non-cash consideration.
• The Town Council retains full authority. Any proposed sale, lease, or conveyance must first be approved by the Town Council in a public meeting or hearing.
BACKGROUND OF SUBJECT MATTER:
If proposed new oil and gas production includes parcels where the Town of Erie is the owner of mineral rights, to fulfil its fiduciary obligation to the residents of Erie the Town Council should determine the maximum value of those mineral rights and seek just compensation for those mineral rights. Alameda Mineral Advisors is uniquely qualified to evaluate, advise, and represent the Town in negotiations regarding potential sale, lease, and/or conveyance of the mineral rights due to their familiarity with operations in the DJ Basin and prior experience in negotiating favorable lease and/or sale terms for other private mineral owners in the region.
Accepting any bids or proposals first requires a Resolution be passed by the Town Council in a public meeting (in the case of a Lease Agreement) or a Public Hearing and adoption of an Ordinance by the Town Council (in the case of a Sale or other Conveyance Agreement). This ensures ample opportunity for communication, engagement, and input from Erie residents should any bid or proposal be considered by the Council. While Alameda Mineral Advisors expects 7.5% of any aggregate value negotiated on behalf of the Town as payment, should no agreement be reached and accepted by the Town Council in public meeting or Public Hearing, the Town will pay nothing for the services rendered.
priorities
attachments
ATTACHMENT(S):
1. Resolution 25-218
2. Professional Services Agreement with Alameda Mineral Advisors
3. Alameda Mineral Advisors Mineral Valuation Representation Proposal