HomeMy WebLinkAbout07869ORDINANCE NO. 7869
AN ORDINANCE APPROVING AN INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY
OF PUEBLO, A MUNICIPAL CORPORATION AND THE PINE DRIVE WATER DISTRICT
CONCERNING PROVISION OF WATER FOR SPECIFIED FACILITIES AT PUEBLO MOUNTAIN
PARK, AND APPROPRIATING FUNDS THEREFOR
BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1
The Intergovernmental Agreement by and between the Pine Drive Water District and
Pueblo, a Municipal Corporation, dated August 25, 2008, concerning the provision of water for
specified facilities at Pueblo Mountain Park (the "Agreement "), 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 the City Council is authorized to execute the Agreement in the name of the
City and the City Clerk is directed to affix the seal of the City thereto and attest same.
SECTION 3
Funds in the amount of $40,000 are hereby authorized to be transferred from unexpended
general fund reserves and are budgeted and appropriated to meet the City's capital expenditures
and fees required to be paid under the Agreement.
SECTION 4_
This Ordinance shall become effective upon final passage and approval.
INTRODUCED Auaust 11. 2008
BY Vera Ortegon
Councilperson
APPROVE �.
A STi D lay,
� CLERK
PASSED AND APPROVED: August 25, 2008
* - 7 8 ro y
Background Paper for Proposed
ORDINANCE
AGENDA ITEM # 3
DATE: August 11, 2008
DEPARTMENT: City Manager and Law Department
TITLE
AN ORDINANCE APPROVING AN INTERGOVERNMENTAL AGREEMENT
BETWEEN THE CITY OF PUEBLO, A MUNICIPAL CORPORATION AND THE
PINE DRIVE WATER DISTRICT CONCERNING PROVISION OF WATER FOR
SPECIFIED FACILITIES AT PUEBLO MOUNTAIN PARK, AND APPROPRIATING
FUNDS THEREFOR
ISSUE
Does the City wish to enter into an agreement with the Pine Drive Water District to
provide water services to the Horseshoe Lodge and Pavilion at Pueblo Mountain
Park?
RECOMMENDATION
Staff recommends approval of the ordinance.
BACKGROUND
Pueblo Mountain Park does not have a water supply at times, including during the
fall and winter months when the Park's water intake at South Creek goes dry. The
Mountain Park Environmental Center(the "Center "), which managesthe Horseshoe
Lodge and Pavilion under a management agreement with the City, desires to
operate those facilities during the fall and winter months and would like to have
water service during that period. The management agreement between the City
and Center provides that the Center may use the water service at the Park in its
present condition, "as -is," and provides that the City has no obligation to provide
any substitute or additional water supply.
The Center has requested, and Council has directed staff to pursue, an agreement
with the Pine Drive Water District ( "District ") to obtain District water service. The
Agreement before Council is the result of discussions between staff and District
representatives.
Under the Agreement, District will provide water service to the Horseshoe Lodge
and Pavilion as extraterritorial use, subject to (a) City purchasing a water tap from
the District for $15,000, (b) City making a one -time payment of $5,000 to defer
District's technical and legal expenses, (c) City designing and connecting to District's
main at City's expense pursuant to plans to be approved by District, and (d) City
making monthly payments for special water service at the current specified rates
and in the future at rates established from time to time by the District.
FINANCIAL IMPACT
Initial capital and service costs are estimated to be less than $40,000. Thereafter,
routine annual expenses are estimated to not exceed $2,500 per year.
-2-
INTERGOVERNMENTAL AGREEMENT BY AND BETWEEN
THE PINE DRIVE WATER DISTRICT AND THE CITY OF PUEBLO
THIS INTERGOVERNMENTAL AGREEMENT ( "Agreement ") is entered into this 25th
day of August, 2008 by and between the Pine Drive Water District (the "District ") and Pueblo, a
Municipal Corporation ( "City" or "Pueblo "). Together, these parties maybe referred to herein as the
"Parties."
RECITALS
A. This Agreement is entered into pursuant to C.R.S. §29 -1 -201 through 203. Each of
the Parties is a political subdivision of the State of Colorado and government within the meaning of
C.R.S. §29 -1 -202. Pueblo is a home rule city organized and existing under and by virtue of Article
XX of the Colorado Constitution. District is a water district originally organized under C.R. S. §32-
4 -101, et seq., with all of the powers and authority granted to it under the Special District Act, C.R. S.
§32 -1 -101, et sue., including the authority to provide extraterritorial services pursuant to C.R.S.
§32- 1- 1001(1)(k).
B. This Agreement is also based on principles of comity and the desire for cooperation
between the Parties.
C. Pueblo owns, maintains and operates Pueblo Mountain Park ( "Park "), consisting of
approximately 608 acres. The Park is open to the public and serves, without discrimination, the
recreational needs of both residents of the City and persons residing in the vicinity of the Park,
including residents of the District.
D. Pueblo desires to secure improved water service to the buildings known as Horseshoe
Lodge and the Pavilion located within the Park by connecting those facilities to District's water
system.
E. District is willing to provide extraterritorial water service to the Horseshoe Lodge and
Pavilion at the Park on the terms and conditions set forth in this Agreement, which the Parties believe
serves the public interest without burdening District's residents and water system users.
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing recitals and the mutual promises and
covenants contained herein and other good and valuable consideration, the Parties agree as follows:
1. District agrees to grant to City a water tap under the terms and conditions set forth
herein. The City shall pay an initial tap fee of $15,000.00. Additionally, City agrees to make a one-
time non - refundable payment of $5,000.00 to District to reimburse District for a portion of its costs
and expenses associated within negotiation and implementation of this Agreement. Both the tap fee
and one -time payment will be paid by City within thirty (30) days after execution and approval ofthis
Agreement by both Parties.
2. District agrees that, after payment by City of the fees specified in Section 1 of this
Agreement, pursuant to the District's authority under §32- 1- 1001(1)(k), C.R.S., it will authorize and
provide extraterritorial water service to the Park's Horseshoe Lodge and Pavilion via the water tap.
Connection to the District's system and service shall be in accordance with the terms of this
Agreement and the District's Rules and Regulations as same may be amended from time to time.
3. City shall be permitted to connect a single 1 -1/2" tap to the District's 4" main located
north - northeast of the Horseshoe Lodge with a nominal 1" water meter. City's service line from the
meter to the Lodge and Pavilion shall be 1 -1/2" nominal diameter. Prior to undertaking physical
connection, plans therefore shall be submitted to District's Manager for approval. All costs for design
and installation of the tap, meter and service lines shall be borne by City.
4. (a) From and after the date of connection to District's system, City shall pay
monthly water service charges at District's "Special Use Category, Double Use" scheduled rate, plus
an initial Equitable Monthly Payment ( "EMP ") of $60.00. Thereafter, for all calendar years after
2008, City shall pay the adjusted monthly water service charges adopted and amended from time to
time by District's Board as Schedule B to the District's Rules and Regulations, plus the ENV, adjusted
annually as provided below.
(b) Commencing January 15, 2010, and on January 15 of each year thereafter, the
EMP shall be adjusted by the percentage change in the total property tax revenue received by the
District from the Treasurer of Pueblo County for District imposed ad valorem taxes during the most
recent twelve (12) month period from the total property tax revenue received within the immediately
preceding twelve(12) month period, rounded to the nearest cent. District shall promptly notify City
of each annual adjustment in the END and, upon request of City, provide the information upon which
the adjustment was calculated. The revised EMT shall thereafter apply until the next annual
adjustment. Should the property tax received by the District decrease in any year, there shall be no
change in the EMT based thereon.
[Remainder of page intentionally left blank]
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(c) The rate schedule for 2008 is as follows:
In the event the meter for the Horseshoe Lodge and the Pavilion reads less than 6,000 gallons
usage in any month, City will pay the Double Use scheduled amount for 0 - 6,000 gallons usage plus
the equitable monthly payment of $60.00.
5. Use of District water at the Horseshoe Lodge and Pavilion shall be limited to domestic
use and fire protection; District water shall not be used for lawn irrigation or agriculture within the
Park.
6. District shall have the authority to temporarily limit the use and amount of water
supplied through the tap granted to the City as provided in the District's Rules and Regulations
during times of drought, or in the event that the District reasonably determines, after notice and an
opportunity to be heard is afforded to the City, that supplying water through the tap granted to the
City would materially and adversely affect the water supply to other water customers of the District
which are within the District boundaries.
7. City's Park property is and shall remain exempt from all ad valorem taxes. In the event
District assesses special assessment on users located within the District, City shall be exempt
therefrom, but shall be contractually obligated hereunder to make payment to the District of a
payment -in -lieu of the special assessment in an equitable amount comparable to the assessments to
users located within the District.
8. City's use of the District's water shall be subject to District's Rules and Regulations, as
amended from time to time, except to the extent inconsistent with the terms of this Agreement.
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WATER RATE DOUBLE USE SCHEDULE
0 - 6,000 GALLONS USAGE
USAGE ABOVE 6,000 GALLONS
ADDITIONAL COSTS*
2008
$55.00 per double use
6,001 - 7,000 $2.50
2009
$56.00 per double use
7,001 - 8,000 $2.50
2010
$57.00 per double use
8,001-9000 $2.50
2011
$58.00 per double use
9,001 - 10,000 $2.50
2012
$59.00 per double use
10,001 - $15.00 per each 1,000 gallons
2013
$60.00 per double use
*Example of usage for one month in 2008 of 9,400 gallons would be $55.00 + 10.00 = $65.00 +
Equitable Monthly Payment of $60.00, for a total of $125.00.
In the event the meter for the Horseshoe Lodge and the Pavilion reads less than 6,000 gallons
usage in any month, City will pay the Double Use scheduled amount for 0 - 6,000 gallons usage plus
the equitable monthly payment of $60.00.
5. Use of District water at the Horseshoe Lodge and Pavilion shall be limited to domestic
use and fire protection; District water shall not be used for lawn irrigation or agriculture within the
Park.
6. District shall have the authority to temporarily limit the use and amount of water
supplied through the tap granted to the City as provided in the District's Rules and Regulations
during times of drought, or in the event that the District reasonably determines, after notice and an
opportunity to be heard is afforded to the City, that supplying water through the tap granted to the
City would materially and adversely affect the water supply to other water customers of the District
which are within the District boundaries.
7. City's Park property is and shall remain exempt from all ad valorem taxes. In the event
District assesses special assessment on users located within the District, City shall be exempt
therefrom, but shall be contractually obligated hereunder to make payment to the District of a
payment -in -lieu of the special assessment in an equitable amount comparable to the assessments to
users located within the District.
8. City's use of the District's water shall be subject to District's Rules and Regulations, as
amended from time to time, except to the extent inconsistent with the terms of this Agreement.
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9. Upon connection to the District's system, and for so long as the Lodge and Pavilion
are served by District water, the plumbing systems of the Lodge and Pavilion shall be disconnected
from the Park's existing water system; provided, however, that the Parties may modify this
requirement provided (a) the District's Board consents thereto, which consent may be withheld in the
Board's sole and absolute discretion, and (b) service for the Park's existing system may be provided
without risk of contamination to District's system.
10. (a) City has filed an Application for Surface Water Rights and Approval of Plan
for Augmentation, Including Exchange in the District Court, Water Division No. 2, Case No. 2007
CW 126 ( "Water Case "). In the event City proceeds with said Water Case, District agrees to
stipulate to a decree in the Water Case granting the water rights sought, provided that it contain a
limitation upon diversion from South Creek to no more than 45 gallons per minute in order to prevent
injury to District. District also agrees that, at the request of City, it will support an application by
Pueblo to the State Water Engineer to approve a Substitute Supply Plan applicable until the Water
Court enters a decree in the Water Case. City may, in City's sole discretion, dismiss or withdraw the
Water Case at any time prior to decree.
(b) In the event City acquires two shares in Mountain View Water and Ditch, Inc.,
and is able to use water from the Hollyrood Wells described in the Water Case for City's
augmentation purposes, as set forth in the Water Case, City agrees to make available to District, for
District's use, up to one (1) acre foot of water if and when available at the well -heads of the
Hollyrood Wells to augment any out -of- priority diversions by District from South Creek and any
wells in South Creek alluvium.
11. The water tap granted to the City under this Agreement shall not be transferred nor
assigned by City without the written consent of District; provided, however, that nothing in this
section is intended to limit the use or management of the Park, the Horseshoe Lodge or Pavilion by
any lessee of City, or any operator or manager functioning pursuant to management agreement with
City, including but not limited to the Mountain Park Environmental Center. Any such lessee,
operator or manager may use the District water within the Horseshoe Lodge and Pavilion as
permitted by this Agreement, but shall not change the use thereof without approval of the District.
Should the City enter into any management agreement, lease, operation agreement or any other
contract allowing the management of the Park, Horseshoe Lodge, or Pavilion by a third party, the
City shall remain liable for and responsible for all of the terms and conditions of this Agreement
including payment of any fees as set forth herein. Any transfer or assignment of the tap granted to
the City by the District except as set forth in this Section shall be void and shall be grounds for the
District to terminate the tap and the City's rights under this Agreement. In the event the City should
discontinue use of water delivered through the tap granted to the City for twelve (12) consecutive
months or longer, the District may terminate the tap for non -use, and the City's rights under this
Agreement.
12. Nothing in this Agreement shall be construed as a waiver of any immunity from
damages or limitation on damages available to the Parties including sovereign immunity and any
limitations on liability provided in the Colorado Governmental Immunity Act, C.R.S. §24 -10 -101 et
seq (2007), including any future amendment thereto.
13. All notices and other communications that are required or permitted to be given to the
Parties under this Agreement shall be sufficient in all respects if given in writing and delivered in
person, by overnight courier, or by certified mail, postage prepaid, return receipt requested, to the
receiving party at the following address:
If to District, to: Pine Drive Water District
P. O. Box 35
Beulah, CO 80123 -0035
(719) 485 -3434
If to City, to: Pueblo City Manager
1 City Hall Place
Pueblo, CO 81002
(719) 553 -2655
14. Any obligation for water delivery hereunder, by either Party, shall be subject to force
majeure, including, without limitation, the following, and any other matters similar or dissimilar
thereto if beyond the control of such Party: damage to or destruction of conveyance facilities, senior
water calls, administration of water rights, flood, drought, fire, acts of God, unavoidable casualties,
labor disputes or governmental regulations. Notice of force majeure shall be given as soon as
practicable after the force majeure event.
15. This Agreement is intended to describe the rights and responsibilities of and between
the Parties and is not intended to, and shall not be deemed to confer any rights upon any persons or
entities not named as parties, nor to limit in any ways the powers and responsibilities of the Parties or
any other entity not a party hereto.
16. This Agreement shall be governed under and controlled by the laws of the State of
Colorado. Venue for any lawsuit between Parties concerning this Agreement shall be in the District
Court for Pueblo County.
17. This Agreement constitutes the entire agreement of the Parties concerning the subject
matter and supersedes all prior representations, negotiations or other communications related thereto.
This Agreement may be amended only in writing, which writing must be signed by all parties in order
to be effective.
18. This Agreement shall be binding upon and inure to the benefit of the Parties hereto,
—5—
their successors or assigns, as limited by Section 11 above
19. Each party hereto represents that its representative signing below is authorized to
execute this Agreement on its behalf.
20. This Agreement may be executed in multiple counterparts, each of which shall be
deemed to be an original, but all of which shall constitute one and the same Agreement.
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the year and day
first above written.
CITY OF PUEBLO,
a Municipal Corp ion
By
President of the.City Council
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PINE DRIVE WATER DISTRICTT
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