HomeMy WebLinkAbout08497ORDINANCE NO. 8497
AN ORDINANCE APPROVING AN INTERGOVERNMENTAL
AGREEMENT BETWEEN THE CITY OF PUEBLO, A
MUNICIPAL CORPORATION, AND THE BOARD OF WATER
WORKS OF PUEBLO RELATING TO THE INSTALLATION
OF A PIPELINE TO DELIVER WATER FROM ST. CHARLES
RESERVOIR NUMBER 2 TO LAKE MINNEQUA,
AUTHORIZING THE PRESIDENT OF CITY COUNCIL TO
EXECUTE SAME, AND BUDGETING AND APPROPRIATING
$1,106,500 THEREFORE
WHEREAS, the City of Pueblo, a Municipal Corporation (”City”), and the Board of
Water Works of Pueblo, Colorado, (“Board”), are both political subdivisions of the State
of Colorado within the meaning of Section 29-1-202(2), C.R.S. ; and
WHEREAS, the City and the Board desire to enter into an Intergovernmental
Agreement to clarify each party’s responsibilities for the installation of a pipeline to
deliver water from St. Charles Reservoir Number 2 to Lake Minnequa in order to provide
for enhanced water quality in Lake Minnequa (“Project”) , and
WHEREAS, the Board has the necessary labor and equipment required for the
installation of the water pipeline related to said Project.
BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
An Intergovernmental Agreement (“Agreement’) between the City of Pueblo, a
Municipal Corporation and Board of Water Works of Pueblo for the Project, a copy of
which is attached hereto, having been approved as to form by the City Attorney, is
hereby approved.
SECTION 2.
The President of City Council is hereby authorized to execute and deliver said
Agreement in the name of and on behalf of the City of Pueblo, a Municipal Corporation,
and the City Clerk shall affix the seal of the City thereto and attest the same.
SECTION 3.
Funds in the amount of $1,106,500 are hereby budgeted and appropriated for
said Project from the City of Pueblo Stormwater Utility Enterprise Fund for expenditure
in accordance with the terms of the Agreement.
INTRODUCED: July 9, 2012
BY: Steve Nawrocki
COUNCIL PERSON
PASSED AND APPROVED: Ju;y 23, 2012
Background Paper for Proposed
ORDINANCE
DATE: JULY 9, 2012 AGENDA ITEM # S-2
DEPARTMENT: PLANNING AND COMMUNITY DEVELOPMENT
JERRY M. PACHECO, DIRECTOR
TITLE
AN ORDINANCE APPROVING AN INTERGOVERNMENTAL AGREEMENT
BETWEEN THE CITY OF PUEBLO, A MUNICIPAL CORPORATION, AND THE
BOARD OF WATER WORKS OF PUEBLO RELATING TO THE INSTALLATION OF A
PIPELINE TO DELIVER WATER FROM ST. CHARLES RESERVOIR NUMBER 2 TO
LAKE MINNEQUA, AUTHORIZING THE PRESIDENT OF CITY COUNCIL TO
EXECUTE SAME, AND BUDGETING AND APPROPRIATING $1,106,500
THEREFORE
ISSUE
Should City Council approve an Intergovernmental Agreement between the City of
Pueblo and the Board of Water Works of Pueblo relating to the installation of a pipeline
to deliver water from St. Charles Reservoir Number 2 to Lake Minnequa, authorize the
President of City Council to execute same, and budget and appropriate $1,106,500
therefore?
RECOMMENDATION
Approval of the Ordinance.
BACKGROUND
The Intergovernmental Agreement (IGA) provides for the Board of Water Works
(BOWW) to design and provide all labor and materials to install an underground water
pipeline from St. Charles Reservoir No. 2 to Lake Minnequa. The construction of the
pipeline will be completed at a cost of no more than $1,100,000.00 including materials
and any third party costs incurred by the BOWW. Following approval of the design by
the City on or before October 1, 2012, the BOWW will commence with the installation
of the pipeline, using Board personnel and equipment, to the extent available, to do so.
Installation of the pipeline shall be complete on or before June 1, 2013. Once
completed, the pipeline will be the property of the City and the City will be responsible
for all maintenance, repairs, and replacement for the pipeline.
The pipeline will supply water provided by the Lower Arkansas Valley Water
Conservancy District to Lake Minnequa pursuant to an Intergovernmental Agreement
with the City dated December 12, 2007. The pipeline will aid the City with its
stormwater management plan and enhance use of Lake Minnequa for open space,
recreation, and piscatorial purposes.
FINANCIAL IMPACT
The City will reimburse the BOWW for all materials and third party costs reasonably
incurred by the Board in installing the pipeline. The City will reimburse the BOWW for
materials and third party costs, plus an annual administration charge equal to 0.375% of
the amount of reimbursement of costs incurred but not yet paid to the Board. The
Board shall be paid the entire reimbursement amount by City in thirty-six (36)
approximately equal monthly payments over a period of three (3) years. The
reimbursement cost including the administrative charge is estimated to be $30,732.53
per month from the City’s Stormwater Utility Enterprise. After the Project is completed,
reimbursement payments will be adjusted, if necessary, based upon the actual material
and third party costs reasonably incurred. Funds in the amount of $1,106,500 for the
project will be budgeted and appropriated from the City’s Stormwater Utility Enterprise.
INTERGOVERNMENTAL AGREEMENT
This Intergovernmental Agreement ( "Agreement ") is entered into as of this 23rd day of
July, 2012 between Pueblo, a Municipal Corporation ( "City "), for the use and benefit of its
stormwater utility enterprise, (hereinafter "Enterprise ") and the Board of Water Works of Pueblo,
Colorado, (hereinafter "Board "), both of which are political subdivisions of the State of Colorado
within the meaning of Section 29 -1- 202(2), C.R.S. The City and Board may be referred to
herein collectively as the "Parties" or each individually as a "Party."
WHEREAS, the City Council of City established Enterprise as a stormwater utility
enterprise pursuant to its home rule powers under Article XX of the Colorado Constitution, §37-
45.1 -102, C.R.S., and Section 16 -12 -4 of the Pueblo Municipal Code; and
WHEREAS, the Board, pursuant to Article 15 of the City Charter operates the Pueblo
water utility enterprise; and
WHEREAS, the City requires the installation of a pipeline to deliver water from St.
Charles Reservoir Number 2 to Lake Minnequa in order to provide for enhanced water quality in
Lake Minnequa; and
WHEREAS, the Board has the necessary labor and equipment to install a water pipeline;
and
WHEREAS, the installation of the pipeline will aid the City with its stormwater
management plan and enhance use of Lake Minnequa for open space, recreation and piscatorial
purposes; and
WHEREAS, the Board and the Lower Arkansas Valley Water Conservancy District have
previously agreed to supply water for Lake Minnequa pursuant to an Intergovernmental
Agreement with the City dated December 12, 2007; and
WHEREAS, the Board and City have previously entered into an Intergovernmental
Agreement dated November 10, 2003 concerning billing and collection of stormwater fees by the
Board on behalf of the Enterprise ( "Stormwater IGA "); and
WHEREAS, additional cooperation between the City and the Board on the Lake
Minnequa Project will benefit residents of Pueblo and recipients of services provided by
Enterprise.
NOW, THEREFORE, in consideration of the foregoing recitals, and the provisions of
this Agreement to be performed by the Parties, City and Board agree as follows:
1. The Board shall design and provide all labor and materials to install an underground
water pipeline from St. Charles Reservoir No. 2 to Lake Minnequa in accordance with a
final design approved in writing by City. Said design shall be prepared so that
construction will not require expenditure of more than One Million One Hundred
Thousand Dollars ($1,100,000.00) for materials and third party costs incurred by the
Board ( "Design Cost Estimate ") and must be finalized and approved by the City on or
before October 1, 2012 Thereafter, Board shall commence and diligently prosecute the
installation of the pipeline, using Board personnel and equipment, to the extent available,
to do so.
2. The City shall reimburse Board for all materials and third party costs reasonably incurred
by the Board in installing the pipeline, consistent with the terms set forth in sections 4
and 5 of this Agreement. Material costs shall include, but are not limited to, cost of pipe,
pipe weights, pipe end connections, manholes /access points, bedding materials,
stabilization rock, tracer water and backfill material not available on site. Third party
costs shall include, but are not limited to, the costs of contracts with third parties to
perform or provide horizontal bores, installation of inlet /outlet structures, barricading,
asphalt replacement, curb and gutter replacement, sidewalk replacement, re- vegetation of
City's right of way, construction easements and third party property to the extent
disturbed, design for connection to reservoir outlet structure, dewatering systems, permit
costs, if any, and equipment rental costs for machinery and specialty construction items
required for installation that are not owned by the Board.
3. The City has acquired, and shall acquire any additional, necessary easements for the
installation and long term maintenance of the pipeline. The location for the pipeline shall
be surveyed and staked by the City. The cost associated with connecting the pipeline to
St. Charles Reservoir No. 2 dam shall be negotiated and paid to the dam owner by the
City prior to commencement of installation of the pipeline.
4. Installation of the pipeline shall be complete on or before June 1, 2013. In the event the
project cannot be completed through no fault of the Board by June 1, 2013, the Board
may ask consent for an extension, which extension will not be unreasonably withheld.
The Board shall be reimbursed by City, over a thirty -six month period for materials and
third party costs, as provided in section 2 above, plus an annual administration charge
equal to 0.375% of the amount of reimbursement of costs incurred but not yet paid to the
Board. The monthly amount of the administration charge shall be calculated by prorating
the annual administrative charge of 0.375% over twelve (12) months and applying the
resultant percentage (i.e., 0.03125 %) to the amount then outstanding at the end of each
month. The Board shall be paid the entire reimbursement amount by City in thirty -six
(36) approximately equal monthly payments over a period of three (3) years. The first
payment shall be made by City on the first day of the month following Board's payment
for delivery of the pipe for the project and subsequent monthly payments shall be made
on the first day of each month. After project completion, reimbursement payments will
be adjusted, if necessary, based upon the actual material and third party costs reasonably
incurred.
5. The City hereby authorizes the Board to withhold and set off the monthly reimbursement
amount each month, as provided in section 4 above, from the stormwater collections
account funds otherwise payable by Board to the Enterprise pursuant to the Stormwater
IGA. The remainder of the stormwater collection account funds after such set off shall
continue to be paid to City in accordance with the Stormwater IGA.
6. Once completed, the pipeline shall be the property of the City and City shall be
responsible for all maintenance, repairs and replacement for the pipeline. If the pipeline
operates under pressure rather than gravity flow, if requested by City, the Board shall
provide labor and equipment for any routine repair or maintenance but the City shall pay
for all materials and third party charges for said repairs or maintenance. An invoice will
be provided to City for any reimbursable maintenance charges for which City agrees to
pay said charges within 30 days of receiving the invoice.
7. In the event that either party defaults in the performance of any of its obligations under
this Agreement, in addition to any and all other remedies provided in law or equity, each
party shall have the right of specific performance against the other. In the event of
litigation, the prevailing party shall be entitled to its litigation costs, including reasonable
attorney's fees.
8. This agreement is subject to force majeure. Performance of the terms of this agreement
on the part of the Board shall be excused for such period of time as Board's ability to
install the pipeline is interrupted by storm, flood or other act of God, by fire, war,
rebellion, insurrection, sabotage, riot, strike, civil disobedience, or any other condition
reasonably beyond control of the Board.
9. All notices, requests, consents, claims, demands, waivers and other communications
hereunder shall be in writing and shall be deemed to have been given and served: (a) on
the day when delivered by hand, or (b) on the day when received by the addressee if sent
by a nationally recognized overnight courier (receipt requested). Such communications
must be sent to the respective parties at the following addresses:
To City of Pueblo: City Manager
City of Pueblo
200 S. Main Street
Pueblo, CO 81003
with a copy to:
City Attorney
503 N. Main Street, Suite 203
Pueblo, CO 81003
To Board Executive Director
Board of Water Works of Pueblo, Colorado
319 W. 4 Street
P.O. Box 400
Pueblo, CO 81002 -0400
or to such other addresses as either Party may direct by written notice to the other Party.
10. This agreement shall be governed by and construed in accordance with the laws of the
State of Colorado.
11. No term or condition of this agreement shall be construed or interpreted as a waiver,
express or implied, of any of the immunities, rights, protections or other provisions
available to the Parties under and pursuant to the Colorado Governmental Immunity Act,
Section 24 -10 -101, et seq., C.R.S., as now or hereafter modified.
12. This agreement constitutes the entire agreement between the parties. City and the Board
acknowledge and agree that no other statement, representations or agreements, except
those set forth herein, apply to the terms and conditions of this agreement. This
agreement may only be modified or amended pursuant to a writing that is signed by both
Parties.
13. This agreement shall be binding upon, and shall inure to the benefit of the parties hereto
and their respective successors and assigns, provided however, that none of the rights or
obligations hereunder shall be assigned to any other person or entity without the prior
written consent of the other Party hereto.
14. The term of this agreement shall be five years commencing on the date first above
written and terminating July 22, 2017. The maintenance provisions contained in
paragraph 6 may be continued for another five years upon the written notice of the City
provided to the Board on or before the termination of this agreement.
IN WITNESS WHEREOF, the parties have executed this agreement as of the day first above
written.
CITY OF PUEBLO, A unici sal Corporation
BY: Aka/ . / 1/
Presi . e • of e y Council
ATTEST:
City Jerk
BOARD OF WATER WORKS OF
PUEBLO, COLORADO
BY: r �a
ATTEST:
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