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HomeMy WebLinkAbout09278ORDINANCE NO. 9278 AN ORDINANCE APPROVING AN INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION, ACTING BY AND THROUGH ITS STREET REPAIR UTILITY ENTERPRISE AND THE BOARD OF WATER WORKS OF PUEBLO, COLORADO, RELATING TO BILLING AND REMITTANCE PROCESSING SERVICES BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. The Intergovernmental Agreement dated May 14, 2018 between Pueblo, a Colorado municipal corporation acting by and through its Street Repair Utility Enterprise, and the Board of Water Works of Pueblo, Colorado, relating to the billing and remittance processing services, a copy of which is attached hereto (“IGA”), having been approved as to form by the City Attorney, is hereby approved. The President of the City Council is authorized to execute and deliver the IGA in the name of the City and the acting City Clerk is directed to affix the seal of the City thereto and attest same. SECTION 2. The officers and staff of the City are authorized and directed to perform any and all acts consistent with this Ordinance and the attached IGA which are necessary or desirable to implement the transactions described therein. SECTION 3. This Ordinance shall become effective immediately upon final passage. INTRODUCED: April 23, 2018 BY: Ed Brown MEMBER OF CITY COUNCIL APPROVED: PRESIDENT OF CITY COUNCIL ATTESTED BY: ACTING CITY CLERK PASSED AND APPROVED: May 14, 2018_ City Clerk’s Office Item # R-10 Background Paper for Proposed Ordinance COUNCIL MEETING DATE: April 23, 2018 TO: President Christopher A. Nicoll and Members of City Council CC: Sam Azad, City Manager VIA: Brenda Armijo, Acting City Clerk FROM: Jeff Bailey, Acting Public Works Director SUBJECT: AN ORDINANCE APPROVING AN INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION, ACTING BY AND THROUGH ITS STREET REPAIR UTILITY ENTERPRISE AND THE BOARD OF WATER WORKS OF PUEBLO, COLORADO, RELATING TO BILLING AND REMITTANCE PROCESSING SERVICES SUMMARY: Attached is an Ordinance which approves an Intergovernmental Agreement (“IGA”) between the City of Pueblo’s Street Repair Utility Enterprise (“Street Utility”) and the Board of Water Works of Pueblo (“Pueblo Water”) pertaining to billing and remittance processing services. PREVIOUS COUNCIL ACTION: City Council established the Street Repair Enterprise on December 26, 2017 when it adopted Ordinance No. 9217. BACKGROUND: Pueblo Water currently provides billing and remittance processing services for the City’s Wastewater and Stormwater Enterprises, and it is the intent with this IGA to have the Pueblo Water extend those services to include the Street Utility. FINANCIAL IMPLICATIONS: The City will reimburse Pueblo Water for the cost of programming its billing system for the Street Utility charges. The City will also pay a monthly fee of $6,250 commencing the first month in which the Street Utility billings are first made. st Beginning January 1, 2019, and on the 1 of January for each year thereafter the monthly fee will be adjusted based on the percentage increase of the Street Utility fee, if any, over the previous year. BOARD/COMMISSION RECOMMENDATION: Not applicable. STAKEHOLDER PROCESS: Not applicable. ALTERNATIVES: The City could solicit other firms to provide billing and remittance processing services and have an independent billing sent to City citizens. RECOMMENDATION: Approval of the Ordinance. Attachments: Proposed IGA Intergovernmental Agreement This intergovernmental agreement is entered into pursuant to Sections 29-1-201 through 203, C.R.S. between the City of Pueblo, a municipal corporation, acting by and through its Street Repair Utility Enterprise (hereinafter City) established as a home rule city pursuant to the Charter for the City of Pueblo, Colorado (City Charter) and the Board of Water Works of Pueblo, Colorado (hereinafter Pueblo Water), established pursuant to Article 15 of the City Charter, both of which are political subdivisions of the State of Colorado within the meaning of Section 29-1-202(2), C.R.S. Whereas, the City owns and operates a street repair utility enterprise (hereinafter Street Utility), and Whereas, Pueblo Water, pursuant to Article 15 of the City Charter operates the water utility enterprise of the City of Pueblo, and Whereas, the City desires to contract with Pueblo Water for billing and remittance processing services for its Street Utility, and Whereas, Pueblo Water desires to contract with the City to provide billing and remittance process services only in situations where the Street Utility bills will be addressed to Pueblo Water customers so that the City Street Utility billing information can be added to the Pueblo Water billing statement, and Whereas, Pueblo Water, subject to the conditions of this agreement, is willing to provide these services. Now, Therefore, in consideration of the payments to be made by the City to Pueblo Water, and the provisions of this agreement to be performed by the parties, City and Pueblo Water agree as follows: 1. Pueblo Water will bill Street Utility charges to all Pueblo Water customers who receive Street Utility services, at rates and charges established by the City at the next regular billing cycle after the City provides Pueblo Water with the name, address, parcel number and amount to be billed. Pueblo Water will bill Street Utility charges if the Street Utility customer is also a Pueblo Water Customer. The City may request that Pueblo Water also bill Street Utility charges to property owners or tenants who are not Pueblo Water customers. Bills to these property owners or tenants will also be billed at rates established by the City. 2. Initially, Pueblo Water will commence Street Utility billing within three months of the City providing Pueblo Water with the name, address, parcel number, and the amount to be billed. Thereafter, for new or additional Street Utility customers, Pueblo Water will bill Street Utility charges to water customers of Pueblo Water and to Street Utility customers, excluding Street Utility customers who are not customers of Pueblo Water, at the next regular billing cycle after the City provides Pueblo Water with the 1 name, address, parcel number, and the amount to be billed, provided the information is received by Pueblo Water no less than 21 days prior to the date to be billed. The City agrees to provide Pueblo Water with advanced written notice of at least forty-five (45) days, of any change to the Pueblo Municipal Code with regard to Street Utility billing that would affect customer billing. 3. Billing for Street Utility service will be coordinated with the cycle billing process utilized by Pueblo Water for its water service to the various customers that it serves. Pueblo Water cycle bills its customers, on average, utilizing a 30-day basis, processing bills nearly every business day. 4. Pueblo Water, at its option, after consultation with the City,will design the format for the bills and will show on the format a separate charge for Street Utility. 5. Other than referring Street Utility customers to the City, Pueblo Water will have no duty nor authority to respond to inquiries or complaints concerning Street Utility bills and will also have no authority to negotiate with customers concerning such rates and charges. The billing format will contain appropriate telephone numbers by which Street Utility customers may inquire of the City about its rates and charges for service. 6. Pueblo Water will maintain a separate liability account for Street Utility collections. Upon the tenth calendar day of each month, Pueblo Water will remit and pay to the City all Street Utility charges billed and collected prior to the close of Pueblo Water's billing cycle for the preceding month, after first deducting Pueblo Water's monthly charge for providing billing services to the City. Pueblo Water will provide to the City monthly accounts receivable reports which summarize billing information, outstanding receivables and aging criteria for delinquent Street Utility accounts. 7. Pueblo Water will have no responsibility nor obligation to undertake debt collections on behalf of the City for Street Utility charges once reasonable collection efforts as determined by Pueblo Water, in its sole discretion, have been completed. 8. Within thirty days of receiving an invoice, the City will reimburse Pueblo Water for the cost of programming Pueblo Water's billing system to include Street Utility charges. The City will also pay to Pueblo Water a monthly fee of Six Thousand Two Hundred Fifty Dollars ($6,250) (hereinafter Monthly Fee), commencing the month in which Street Utility billings are first made, for the billing, receipt of payments and remittance processing services rendered by Pueblo Water for Street Utility billing. Pueblo Water will be entitled to and will deduct the Monthly Fee from the sums of money collected by Pueblo Water before sending the Street Utility collections to the City each month. Beginning January 1, 2019, and on the 1st of January for each year thereafter for the term of this agreement, the Monthly Fee will be adjusted based upon the percentage increase, if any, over the previous calendar year in Pueblo Water's water rates for its general customers for treated water. Pueblo Water will give to the City written notice of any rate increase pursuant to this paragraph before such increase will be effective. 2 9. It is agreed that during the term of this agreement Pueblo Water and any persons hired by or contracting with Pueblo Water are exempt from the Pavement Impact Fee detailed in section 12-6-4.1 of the Pueblo Municipal Code (Pavement Fee). Should the City collect the Pavement Fee at any time during the term of this agreement from Pueblo Water or any person hired by or contracting with Pueblo Water, Pueblo Water will be entitled to and will deduct the amount of the Pavement Fee paid from the sums of money collected by Pueblo Water before sending the Street Utility collections to the City. 10. It is agreed that Pueblo Water may rely on the information provided by the City in its billing services and in the performance of Pueblo Water's billing services. Pueblo Water will not be liable to the City for damages relating to any billing error caused by the City's failure to provide Pueblo Water with the correct billing information. 11. In the event Pueblo Water is made a party defendant in any dispute or action filed against the City or Pueblo Water by any third party involving the Street Utility and/or charges for such Street Utility, the City will defend Pueblo Water at City's expense or pay the costs and attorney's fees reasonably expended by Pueblo Water in its own defense of such actions unless such dispute or action resulted from the sole negligence of Pueblo Water. 12. 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 will have the right of specific performance against the other. In the event of litigation, the prevailing party will be entitled to its litigation costs, including reasonable attorney's fees. 13. This agreement is subject to force majeure. Performance of the terms of this agreement on the part of Pueblo Water will be excused for such period of time as Pueblo Water's ability to perform the billing function with its computer equipment and software is interrupted by storm, flood or other act of God, by fire, war, rebellion, insurrection, sabotage, riot, strike, civil disobedience, or any other condition beyond reasonable control of Pueblo Water. 14. Both the City and Pueblo Water will disclose to each other certain information regarding their customers in order to accomplish the purposes of this agreement. Both parties consider such information to be unique and valuable assets and to be proprietary. Neither the City nor Pueblo Water will disclose such information to third parties. Such prohibition of disclosure includes, but is not limited to, providing the names, addresses, payment histories, personal identification information, such as social security numbers, banking information, driver's licenses, and other personal information. The City also agrees that it will not disclose such information to City departments other than the finance department and the Street Utility. Such limitation of disclosure will not apply to information that is disclosed to a customer through the billing process, or upon request of a customer, or required to collect 3 delinquent charges, or that is required to be disclosed by law, a court or a governmental agency from whom lawful subpoenas have been issued. The parties acknowledge that they are public entities subject to the provisions of the Colorado Open Records Act. Prohibition of disclosure will not apply to information required to be disclosed pursuant to the Colorado Open Records Act. Both parties agree to take all reasonable precautions, including the establishment of appropriate procedures and safe filing systems to safeguard the information being provided by each party to the other. 15. The term of this agreement will commence on May 14, 2018 and end December 31, 2018, and will automatically renew for successive one (1) year terms, unless terminated by either party upon prior written notice given to the other party at least one hundred (180) days before the proposed date of termination. References in this agreement to the term include the original term and any renewal terms pursuant to this paragraph. At the request of either party, Pueblo Water and City will meet and discuss this agreement and whether it would be appropriate to amend or modify any provision hereof. 16. All notices to be given with respect to this agreement will be in writing. Each notice will be sent by registered or certified mail, postage prepaid and return receipt requested, to the party to be notified at the address set forth herein, or at such other address as either party may from time to time designate in writing. Every notice will be deemed to have been given at the time it will be deposited in the United States mail in the manner prescribed herein. Nothing contained herein will be construed to preclude personal service of any notice in the manner prescribed for personal service of a summons or other legal process. All notices required to be given to Pueblo Water hereunder will be delivered to: Executive Director Board of Water Works of Pueblo, Colorado 319 W. 4th Street P. 0. Box 400 Pueblo, CO 81002-0400 Or at such other address as Pueblo Water may direct by written notice to the City, mailed by registered or certified mail. All notices required to be given to the City hereunder will be delivered to: City Manager (or Mayor when applicable) City of Pueblo One City Hall Place, 2nd Floor Pueblo, CO 81003 4 with a copy delivered to: City Attorney City of Pueblo One City Hall Place, 3rd Floor Pueblo, CO 81003 or at such other address as the City may direct by written notice forwarded to Pueblo Water by registered or certified mail. 17. This agreement will be governed by and construed in accordance with the laws of the State of Colorado. 18. All financial obligations of the City under this agreement after the current fiscal year are contingent upon funds for that purpose being appropriated, budgeted and otherwise made available. This provision will not however preclude Pueblo Water from deducting its Monthly Fee and any Pavement Fee from the Street Utility collections prior to submitting said collections to the City each month as provided in this agreement. 19. No term or condition of this agreement will be construed or interpreted as a waiver, express or implied, of any of the immunities, rights, protections or other provisions for 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. 20. This agreement constitutes the entire agreement between the parties. City and Pueblo Water acknowledge and agree that no other statement, representations or agreements, except those outlined 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 all parties hereto. 21. This agreement will be binding upon, and will inure to the benefit of, the parties hereto and their respective successors and assigns, provided however, that none of the rights or obligations hereunder will be assigned to any other person or entity without the prior written consent of the other parties hereto. IN WITNESS WHEREOF, the parties have executed this agreement on the 14th day of May, 2018. 5 CITY OF PUEBLO BY: Christopher A. Nicoll President of the City Council ATTEST: Couvyt.10eXQ_nCLO Brenda Armijo Acting City Clerk BOARD OF WATER WORKS OF PUEBLO, C•LORADO B 4 xecutive Director ATTEST: OftitiatiL9 od9 6