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HomeMy WebLinkAbout2011-13 IGA with ERWSD Lower Bench at Ford Park, Betty Ford Alpine Gardes, and Donovan Park RESOLUTION NO. 13 x Series of 2011 A RESOLUTION APPROVING AN INTERGOVERNMENTAL AGREEMENT BETWEEN THE TOWN OF VAIL AND THE EAGLE RIVER WATER AND f' SANITATION DISTRICT; AND SETTING FORTH DETAILS IN REGARD THERETO.' WHEREAS, the Town of Vail (the "Town "), in the County of Eagle and State of Colorado is a home rule municipal corporation duly organized and existing under the laws of the State of Colorado and the Town Charter (the "Charter "); WHEREAS, the members of the Town Council of the Town (the "Council ") have been duly elected and qualified; 1 WHEREAS, On June 1, 2006 the Town and the Eagle River Water and Sanitation District (the "ERWSD ") entered into a Cooperative Intergovernmental Agreement (the "Agreement ") pursuant to which the ERWSD financed, constructed and installed various facilities to enable the Town to irrigate the Lower Bench of Ford Park, Betty Ford Alpine Gardens and Donovan Park with treated and untreated water drawn from Gore Creek (the "Project "); WHEREAS, the Agreement obligates the Town to pay the capital costs of the Project and ongoing operations and maintenance costs of the Project through a Raw Water Use Fee ( "Fee ") which is to be established pursuant to an Intergovernmental Agreement upon completion of the Project; and WHEREAS, the Town has paid the ERWSD the amount of $379,657.00 which constitutes the entire capital costs of the Project; 1 WHEREAS, the Town and ERWSD wish to enter into an Intergovernmental Agreement ( "IGA ") as to the ERWSD's provision of water service to the Project and the Town's obligation to pay the Fee for operations and maintenance costs; WHEREAS, the Council's approval of Resolution No. 13, Series 2011, is required to enter into an IGA. NOW THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO THAT: ( Section 1. The Council hereby approves and authorizes the Town Manager to enter into the IGA with the ERWSD outlining the provision of water service to the Project and the raw water use fee and maintenance in substantially the same form as attached hereto as Exhibit A and in a form approved by the Town Attorney. 1. Section 2. This Resolution shall take effect immediately upon its passage. INTRODUCED, PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Vail held this 2 nd day of August, 2011. Resolution No. 13, Series 2011 E z { .• � { [ � � ( ,6 , • ( RcadDe @a { Town Mayor [ ( T [ . [ or|\Don»d on, - [ Town Clerk [ F [ \ ( ( [ [ ( / ( [ ( ( ( ( ( ( � ( ( { ( { \ ( \ ( ( ( { Resolution A. g, Series kH ( ( \ RAW WATER USE AND FEE INTERGOVERNMENTAL AGREEMENT This Raw Water Use and Fee Intergovernmental Agreement ( "Agreement ") is executed as of the day of , 20 , by EAGLE RIVER WATER s AND SANITATION DISTRICT, a quasi - municipal corporation and political subdivision of the State of Colorado ( "District ") and the TOWN OF VAIL, a political subdivision of the State of Colorado ( "Town ") (District and Town being singularly referred to as "Party" and jointly referred to as "Parties "). RECITALS A. WHEREAS, the District is organized and operated pursuant to the provisions of Article 1, Title 32, C.R.S., to provide water and sewer services within the jurisdictional boundaries of the District, which boundaries are located within Eagle County, Colorado; and i B. WHEREAS, the Town is a home rule municipality and political subdivision of the State of Colorado operating pursuant to its home rule charter; and C. WHEREAS, in anticipation of achieving cost savings and environmental benefits, the Parties entered into an Intergovernmental Agreement for the Vail Raw Water Project dated June 1, 2006 (the "Cooperative Agreement ") pursuant to which the District financed, constructed and installed various facilities to enable the Town to irrigate the Lower Bench of Ford Park, Betty Ford Alpine Gardens and Donovan Park with treated water or untreated water drawn from Gore Creek, which facilities include without limitation intake, pumps, controls, valves, irrigation lines and sprinkler heads (the "Project"); and D. WHEREAS, the District has completed the Project, the Town has accepted the Project and the Project is operational; and E. WHEREAS, the Cooperative Agreement obligates the Town to pay the capital costs of the Project and ongoing operations and maintenance costs of the Project through a Raw Water Use Fee ( "Fee "), which Fee is to be established pursuant to an x agreement upon completion of the Project; and F. WHEREAS, the Town has paid the District the amount of $379,657.00, which amount constitutes the entire capital costs of the Project; and G. WHEREAS, the raw water supply to the Project is a District owned water right and is subject to the District's various water rights decrees; and 4 r (00236344.DOC /) t s; } H. WHEREAS, the Parties desire to memorialize their agreement as to the District's provision of water service to the Project and the Town's obligation to pay the Fee for operations and maintenance costs; and I. WHEREAS, pursuant to the provisions of the Colorado Constitution, Article XIV, Section 18(2)(a) and (b) and Section 29 -1 -203, C.R.S., the Parties desire to establish an intergovernmental agreement to provide for assessment and payment of the Fee. r: NOW THEREFORE, IN CONSIDERATION of the above recitals, the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby mutually acknowledged, the Parties agree as follows: AGREEMENT 1. Cooperation The Parties agree to cooperate in the operation of the Project, and provide open communications and be responsive to requests by the other party in order to achieve effective operation of the raw water irrigation Project. 2. Rules and Regulations Service shall be provided subject to the District's Rules and Regulations and policies as amended from time to time. 3. Operations and Maintenance (a) Designation of Water Managers. Each Party shall designate a Water Manager for handling Project operation, maintenance and management issues. (b) Seasonal Start -Up. Town staff will contact the District Water Manager prior to irrigation season each year to coordinate seasonal system start-up. Start-up shall not occur without the approval of the District Water Manager. District personnel will ensure that the raw and domestic meters are operational and calibrated. f (c) Operation and Maintenance Costs. The District will track operation and maintenance costs, including without limitation costs for electricity, parts, labor and replacement equipment. (d) Operation and Maintenance. The District shall operate and maintain the Project from Gore Creek through and to the connection of the raw water pump station to the Town's irrigation system main ( "District's Portion of the Project "). The Town is responsible for the operation and maintenance of the remainder of the irrigation system, including mains, laterals, heads, valves and Maxicom component ( "Town's Portion of the Project "). The Town will maintain a r (00236344.DOC /) 2 7 backup facility connecting the District's domestic system to the Town Portion of the Project. Such back -up facility shall include an air gap and backflow prevention device compliant with applicable laws and District Rules and Regulations and policies. This backup may be required to be connected during water supply emergencies or senior calls on the District's water rights. For the safety of the District's domestic water distribution system, disconnection and reconnection between the raw water supply and the domestic supply will be made only by District personnel. (e) Disconnection from Raw Water Supply. Disconnection from the raw water supply and reconnection to the domestic supply may be required in a water supply emergency or during periods of a senior call on the river, as required by District water rights decrees and determined by the District. For the safety of the District's domestic water distribution system, disconnection and reconnection between" the raw water supply and the domestic supply will be made only by District personnel. Connection or disconnection made by Town personnel or its contractors will be considered system tampering as defined in the District Rules and Regulations. District personnel will notify the Town when disconnection or reconnection occurs. (f) Standard Operations Procedures. The District Water Manager shall promulgate and amend from time to time Standard Operations Procedures in consultation with the Town Water Manager. The Parties shall operate their respective portions of the Project in compliance with the Standard Operations Procedures. The Standard Operations Procedures in effect at the time of this Agreement are attached hereto as Exhibit A . The District Water Manager and the 1 Town Water Manager do not have the authority to amend or waive' the terms of this Agreement and any inconsistency between the terms of this Agreement and the Standard Operations Procedure shall be resolved in favor of the terms of this Agreement. 4. Raw Water Use Fee The District shall assess a Raw Water Use Fee for the Town's use of raw water. The Raw Water Use Fee shall be based on (i) the average amount of raw water drawn from Gore Creek by the Project plus (ii) the District's costs in operating and maintaining the District's Portion of the Project. The usage rate for the Raw Water Use Fee is established at seventy -five cents ($0.75) per 1,000 gallons of water for water service commencing in 2011. This rate is based upon the following annual routine operations and maintenance procedures; seasonal startup, weekly checkups of systems operation, preventive maintenance, winterization and disconnection and reconnection from the Raw Water Supply as needed. The base rate will increase by 3% r (00236344.DOC /{ 3 j e x each year and shall be reviewed every three years by the District. Any maintenance, labor, and or replacement of parts that are deemed above and beyond routine and or t preventive will be billed directly to the Town on a time and material basis. The Raw Water Use Fee is subject to adjustment pursuant to the District's Rules and Regulations and policies. The Raw Water Use Fee shall not be charged during such times as the Town is using domestic water for irrigation purposes, in which case the Town shall be charged pursuant to the District's treated domestic water rates. 5. Meters Each account served by the Project will maintain both a raw water and domestic water service meter. 6. Watering Schedule and Water Right Limitations The Town's system will be operated in a manner that recognizes that water is a limited resource and diversions to the Town Irrigation System affect stream flows in Gore Creek. The Town's Portion of the Project is subject to the District's watering schedule, water supply emergency policies and Water Rights Decree limitations specified in Exhibit B attached hereto and incorporated herein by reference. 7. Interruptible Supply In a water supply emergency or senior call event, it is critical to the District to curtail outdoor water use as quickly as possible. As of the date of this Agreement, the District offers an irrigation rate discount if outdoor use can be shut off remotely by District personnel. Upon installation of such equipment on the Town's Portion of the Project, the District will apply a 10% discount on the raw water rate for those accounts. District will interrupt the Town's irrigation system with this equipment only in the case of a water supply emergency or senior call event, as defined by District'` policy. The District will notify the Town immediately in the case of a water supply emergency or senior call event. 8. Failure to Deliver Operations. In the event that operations are halted due to failure of the District's Portion of the Project, the Town will be billed at the current treated domestic water rates and subjected to the tiered usage structure until the District's Portion of the Project is fixed. 9. Hold Harmless Each Party agrees to hold the other Party harmless from any and all losses, liabilities, damages, or costs, including attorney's fees, which may be incurred as a result of their participation in the Project whether any such loss or liability was caused by the negligence of either of the Parties. 10. Term and Termination The term of this Agreement shall be through the end of the year in which it is entered, and this Agreement shall be automatically renewed for additional one (1) year terms in perpetuity; provided, however, that in the event the Town fails to make an annual appropriation of funds necessary for it to perform its obligations hereunder, the District may terminate this Agreement upon prompt notice to the Town with such termination to be effective as of the last day of the then - current year. {00236344.DOC /) 4' Q The District may also terminate this Agreement or suspend service at its option upon a failure to pay the Raw Water Use Fee in full when due. Additionally, commencing! ' January 1, 2022, either Party may provide written notice to the other Party of its decision to terminate this Agreement for any reason or no reason. Upon the giving of such notice, this Agreement shall terminate 180 days from the date of the notice; provided, however, that if the Town can demonstrate that it will not have recovered its original capital investment of $379,657.00 by the termination date, then the termination date shall be extended by the shorter of three years or the estimated amount of time, based on historic usage, that it will take for the Town to recover its investment. The Town's recovery of its capital investment shall be the difference between the actual fees the Town would have paid for treated irrigation water from the date of completion of the system in 2006 for the Project minus the actual water usage fees paid in connection with irrigating the Project. No consideration shall be given to interest or other time value of money principles. 11. Notices Any formal notice, demand or request pursuant to this Agreement shall be in writing and shall be deemed properly served, given or made, if delivered in person or sent by certified mail return receipt requested to the parties at the addresses listed by the signatures below or as otherwise modified pursuant to this Section. 12. Amendments This Agreement may be amended only by written document signed by the Parties. 13. Severabilitv In the event that any of the terms, covenants or conditions of this Agreement or their application shall be held invalid as to any person, entity or circumstance by any court having competent jurisdiction, the remainder of this Agreement and the application in effect of its terms, covenants or conditions to such persons, entities or circumstances shall not be effected thereby. ` l 14. Waiver The waiver by either party of any breach by the other of any term, covenant or condition contained in this Agreement shall not be deemed to be a waiver of any subsequent breach of the same or other term, covenant, or condition. 15. Entire Agreement. This Agreement embodies the complete agreement between the Parties regarding the subject matter herein and supersedes all prior 1 agreements and understandings, if any. 4 16. Section Headings The section headings in this Agreement are inserted for t convenience and are not intended to indicate completely or accurately the contents of the Sections they introduce, and shall have no bearing on the construction of the Sections they introduce. 17. No Third Party Beneficiaries The Parties to this Agreement do not intend` to benefit any person not a party to this Agreement. No person or entity, other than the (00236344.DOC /) 5 f z' g, i M i Parties to his Agreement, shall have any right, legal or equitable, to enforce any provision of this Agreement. 18. Duly Authorized Signatories By execution of this Agreement, the undersigned each individually represent that he or she is duly authorized to execute and deliver this Agreement and that the subject Party shall be bound by the signatory's execution of this Agreement. 19. Duplicate Original This Agreement may be executed in two or more counterparts, each of which shall be an original, but all of which together shall constitute one and the same instrument. EXECUTED to be effective as of the date first written above. EAGLE RIVER WATER AND SANITATION DISTRICT B General Manager Address: Attest: Secretary TOWN OF VAIL By Mayor Address: {00236344.DOC 6: K z a s Attest: Town Clerk { i- (00236344.DOC /) 7 h 4 q $ P C t k EXHIBIT A EAGLE RIVER WATER & SANITATION DISTRICT STANDARD OPERATIONS PROCEDURES TITLE: Ford and Donovan Park Raw Water Operations LOCATION: Vail FUNCTION: Ford and Donovan Park Operations SCOPE: Summer Irrigation of Vail Parks PROCEDURES: • On May 1 s` of each year we will need to visit the Raw Water pump stations and verify that they are configured for operation. • Town Staff will contact Eagle River Water and Sanitation District Raw Water Resources Operator at 970 - 477 -5472 to coordinate start up for the season. • The Raw Water Resources Operator will schedule initial start-up for the season with Town staff. • The Raw Water Resources Operator will oversee operation and maintenance of the raw water i system and check each station twice per week, or upon request from Town Staff. ` • The Raw Water Resources Operator will notify the Water Division Manager In the event of a' Cameo or Shoshone Call so that the Raw Water systems can be switched back to the potable system water. Switch over may only be made by District personnel. • When water supply to the Town's irrigation system is switched from raw to domestic or from domestic to raw water the Raw Water Resource Operator will notify Town staff of the change. • ERWSD will maintain the check valves in the pump stations and TOV will maintain the backflow preventers within the irrigation systems • The Water Division Manager will be copied on all correspondence and act as a back up contact to the Raw Water Resources Operator and can be reached at 970 - 477 -5471. t I` E fi (00236344.DOC /) 8 s t r EXHIBIT B s (Decree and Judgment) ( Ag b F, b ¢ o. t 1 t . rr f {00236344.DOC /} r t