Loading...
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: �i