HomeMy WebLinkAbout6175RESOLUTION NO. 6175
A RESOLUTION APPROVING AN AMENDED AGREEMENT
BETWEEN PUEBLO, A MUNICIPAL CORPORATION AND
COLORADO DEVELOPMENTAL RESOURCE CORPORATION
RELATING TO DEVELOPMENT AND SALE OF LANDFILL
GAS
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, COLORADO, that:
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The Amended Agreement dated April 11, 1988 between Pueblo, a
Municipal Corporation and Colorado Developmental Resource
Corporation, a copy of which is attached hereto and incorporated
herein, having been approved as to form by the City Attorney, is
hereby approved.
SECTIUN 2
The President of the City Council is authorized and directed
to execute said Agreement for and on behalf of the City and the
City Cierk is directed to affix the seal of the City thereto and
attest same.
INTRODUCED: April 11, 1988
13V MIC HAEL OCCHIA
Councilman
ATTEST: APPROVED:
erk Pre ident of the City Counci
AMENDED AGREEMENT
THIS AMENDED AGREEMENT entered into this 11th day of April,
1988 by and between PUEBLO, a Municipal Corporation (herein called
"City "), and COLORADO DEVELOPMENTAL RESOURCE CORPORATION, a
Colorado Corporation (herein called "the Company "),
W I T N E S S E T H:
WHEREAS, the City is the owner of property located in Pueblo
County, Colorado, which is known as the Pueblo Solid Waste Land-
fill (herein called "Landfill "), located off the Beulah Highway
No. 76, which property is more specifically described in Appendix
A hereto; and
WHEREAS, the City Council has invited proposals for the
development, recovery and sale of landfill gas at Landfill; and
WHEREAS, the Company has presented a proposal to develop,
recover and market landfill gas and construct facilities at
Landfill; and
WHEREAS, Company and City did enter into an agreement dated
October 27, 1986 relating to landfill gas recovery and Company has
requested that certain provisions of the Agreement be modified and
amended; and
WHEREAS, the parties have agreed to cancel the agreement of
October 27, 1986 and enter into this Amended Agreement (herein
"Agreement ").
NOW, THEREFORE, in consideration of the foregoing and
covenants and conditions set forth hereinbelow, the parties agree
as follows:
1. Landfill Gas Recovery Operation. The City of Pueblo,
is the owner of the Landfill and subject to the conditions set
forth herein, grants to the Company and its independant contrac-
tors the right of entry upon the Landfill and to Company the
exclusive right to: mine and extract landfill gas; to. develop,
construct and operate landfill gas processing, including without
limitation, electrical generation facilities; and to sell landfill
gas, heat, gas, electricity and other products derived from land-
fill gas (herein "Products "), at Landfill (herein "Project ") for a
period of twenty (20) years from Commencement Date or the date of
City's written approval of Company's final engineering design of
the Project, whichever occurs first, unless this Agreement shall
have been extended or terminated as herein provided. The rights
granted herein shall be subject to the continued use of the Land-
fill as a solid waste disposal site and facility, all existing
agreements concerning the Landfill, including without limitation
City's agreements with Zupan Enterprises, Inc. dated February 24,
1974, February 1, 1985 and July 13, 1987, the terms and conditions
of City's Certificate of Designation, and to all easements,
reservations and restrictions of record and public roads. Company
agrees to diligently and in a timely fashion undertake such
development, construction, and operation of the Project and make
payments to City as provided herein.
If Company is not in default hereunder, Company shall have
the option to extend this Agreement for two additional consecutive
five year periods upon the same terms and conditions, except the
option to renew hereby granted, for an annual minimum payment of
$50,000 for the first five year extended period and $75,000 for
the second five year extended period. The option shall be exer-
cised by Company giving written notice to City at least twelve
months prior to the expiration of the original twenty year term or
first five year extended period, whichever is applicable. If
Company shall fail to timely give the required notice to City,
Company shall be deemed to have waived the option to extend hereby
granted and this Agreement shall terminate upon the last day of
the original twenty year period or first five year extended
period, whichever is applicable.
2. Performance Schedule
(a) Within 30 days from date hereof, Company shall
furnish City with a statement of financial resources and a state-
ment of qualifications.
(b) Within 6 months after City notifies Company in
writing that Zupan Enterprises, Inc. or any other operator at the
Landfill including the City (herein "Operator ") has ceased to
receive solid waste for disposal at the Landfill or any designated
portion thereof (herein "Commencement Date "), Company shall submit
to City a Feasibility Analysis, Preliminary Design Report, and
Financing Plan.
I. Feasibility Analysis shall describe Company's
proposed development plan, construction requirements, electrical
generation facilities, contain a marketing analysis, cost analysis
and sufficient other information to determine economic and techni-
cal feasibility of the Project.
II. The Preliminary Design Report shall generally
describe detailed configuration of Project facilities, a prelimi-
nary site plan, engineering design criteria, construction cost
estimate, environmental impact assessment, appropriate test data
and soil studies. The Preliminary Design Report shall also
contain a description of applicable regulatory requirements,
identification of the regulatory agencies, and a timetable for
obtaining all necessary permits, licenses and approvals from any
federal, state or local bodies and agencies with jurisdiction.
III. The Financing Plan shall describe in detailed
manner the Company's plan for financing all stages of construction
and performance necessary for the Project. The Financing Plan
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shall include detailed description of sources of financing and
include letters of intent to commit funds by lenders, descriptions
of collateral, commitments or letters of intent with respect to
purchase of saleable gas or electricity and all other items
sufficient to demonstrate Company's financial ability to fully
perform under this Agreement.
(c) If, on the basis of the Feasibility Analysis,
Preliminary Design Report and Financing Plan, Company believes the
Project to be feasible, it shall request from City authorization
to proceed with engineering design. The City shall review the
documents submitted by Company and, within 60 days after receipt
of the documents, either: (i) authorize Company to proceed with
engineering design, (ii) request revision of the documents and
resubmittal, or (iii) give written notice to Company of City's
intent to terminate the agreement if - the submitted documents in
the opinion of City, do not demonstrate feasibility of the Project
or Company's financial capability to construct the Project and
perform its obligations under this Agreement. If City fails to
otherwise notify the Company within said 60 -day period, authoriza-
tion to proceed shall be deemed to have been given. If City gives
notice to terminate under (iii) above, Company shall have 30 days
after date of such notice to demonstrate, to the reasonable satis-
faction of the City, the Project's feasibility and Company's
financial capability. If Company fails to so demonstrate the
Project's feasibility and Company's financial capability within
such 30 -day period, this Agreement shall terminate without notice.
(d) Unless this Agreement has been terminated by the
City pursuant to subparagraph (c)(iii) above, Company shall
complete and submit its final engineering design for the Project
to City and obtain City's approval thereof pursuant to paragraph
11 hereof within 12 months after Commencement Date. Company shall
thereafter diligently proceed with construction of the Project and
complete same not later than 18 months after Commencement Date.
Company shall begin operation of the Project not later than 24
months after Commencement Date.
(e) Nothing contained herein shall prevent Company from
proceeding with its final engineering design for the Project prior
to Commencement Date.
3. Development, Operation and Marketing Costs It is
understood that Company shall bear all costs of the Project,
including but not limited to developmental, engineering, regula-
tory, operation, marketing and maintenance costs, and all fees and
expenses relating thereto. Company may, subject to and in con-
formity with all applicable laws and regulations and prior
regulatory approval, if required, dispose in a safe and harmless
manner the spoils and residues from its activities, including
mining and extracting landfill gas and development, construction
and operation of Product processing facilities, at Landfill with-
out fee or charge by City other than the payments required herein
but at Company's sole cost and expense.
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4. Annual Payment In consideration for granting the right
to develop, maintain and operate the Project at Landfill, Company
shall annually pay the City a sum equal to fifteen percent (15 %)
of all Gross Sales or a minimum payment of twenty -five thousand
dollars ($25,000), whichever is greater, (herein "Annual
Payment "). Payment of the first Annual Payment shall commence
upon the earlier of (i) Commencement Date; or (ii) the date of
City's written approval of Company's final engineering design of
the Project. Annual Payments shall continue to be payable for
each year subsequent to the first Annual Payment during the
effective period of this Agreement. "Gross Sales" is defined, for
the purpose of this Agreement, as all revenues received from all
sales of Products, and other activities conducted, at or from the
Landfill without deduction for cost of material, labor or other
expenses. City agrees that Company has the right to use, free or
charge, landfill gas and electricity produced by Project which is
required for the operation of the Project. Company's obligation
to pay the Annual Payment to City hereunder is absolute and
unconditional and the Annual Payment shall not be offset, abated,
reduced or withheld for any cause or reason whatsoever.
5. Payment Schedule
(a) The Annual Payment shall be made in monthly
installments of 15% of the previous month's Gross Sales or
$2,083.33, whichever is greater, and shall be made by Company no
later than ten days after the end of the month for which the
installment is payable. The Company shall furnish the City with a
copy of the calculations and the information used in calculating
the monthly installment so paid. On or before April 1 of each
year after the Commencement Date, the Company shall provide the
City with a report certified by the President and Treasurer of
Company which details the actual Gross Sales in the previous
calendar year. All payments shall be made to the City Director of
Finance. The City Manager, or his authorized representative,
shall have access to the books of the Company for the purpose of
auditing or checking to insure that the Annual Payment has been
correctly computed and paid. Upon verification of the report by
City, the Annual Payment shall be adjusted. Any underpayment
discovered shall be due and payable by Company and any overpayment
shall be refunded to Company.
(b) Late Charge on Unpaid Payments. All payments not
paid by Company within 15 days after the same shall become due
shall be subject to a late payment charge in the amount of one and
one -half (1.5) percent of the unpaid payment for each calendar
month, or fraction thereof, until paid. Such late charges shall
constitute additional required payments under this Agreement, and
failure of Company to make such payments to City when due shall be
construed as a violation of Company's obligation to make payments.
6. Annual Payment is Payment in Lieu of Other Fees. So
long as the Company performs its obligations under this Agreement,
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including payment of the Annual Payment, the Company will be
exempt from payment of any additional license fees or charges to
the City relating to operation of the Project at the Landfill, but
payment of the annual fee does not exempt the Company from any
lawful taxation upon its property, from sales and use taxes,
excavation permit fees and building permit charges, or uniform
charges for the construction of underground or overhead facilities
that are generally applicable to contractors performing similar
work.
7. Security Company shall deliver to City a security
deposit in a sum equal to the minimum annual payment to secure
full and faithful performance by the Company of all its obliga-
tions under this Agreement. The security deposit shall be paid
and delivered to City on or before the earlier of (i) Commencement
Date, or (ii) the date of City's written approval of Company's
final engineering design of the Project. The security deposit
shall be returned to Company within 30 days after termination of
this Agreement only if Company has properly performed hereunder.
8. Insurance. The Company shall not commence work at the
Landfill under this Agreement until it has obtained, at its own
expense and without cost to the City, all insurance required under
this paragraph and such insurance has been approved by the City's
Director of Finance. The Company shall maintain such insurance
during the effective period of this Agreement and pay all premiums
or charges therefor as same become due.
Insurance.
A. General Public Liability and Property Damage
The Company shall secure and maintain General Public
Liability and Property Damage Insurance issued to and covering the
liability of the Company with respect to all work performed by it
and all of its subcontractors under the Agreement, to be written
in amounts not less than $150,000 for any injury to one person in
any single occurrence and not less than $400,000 for injury to two
or more persons in any single occurrence, and $400,000 for each
occurrence for property damage. This policy shall have all
necessary endorsements to provide coverage including contractual
coverage but without exclusion for explosion and collapse hazards
and underground hazards. The limits of coverage contained herein
are required minimums; if at any time the limits of liability of
public entities set forth in the Colorado Governmental Immunity
Act ( "Act ") should increase by statutory amendment to an amount or
amounts greater than the limits of coverage provided herein,
Company is requied to increase the limits of coverage to such
greater sum as the Act may provide, or, at Company's option,
Company may terminate this Agreement.
B. Automotive Liability Insurance.
Whenever the work covered by this Agreement shall
involve the use of automotive or vehicular equipment, the Company
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shall secure and maintain during the period of the Agreement
Vehicle and Automotive Liability and Property Damage Insurance.
This insurance shall be written with limits of liability for any
injury to one person in any single occurrence of not less than
$150,000 and for any injury to two or more persons in any single
occurrence of not less than $400,000, and $400,000 for each
occurrence for property damage. This insurance shall meet
requirements of Colorado law, shall include uninsured /underinsured
motorist coverage and shall protect the Company from any and all
claims arising from the use both on and off the Landfill of
automobiles, trucks, tractors, backhoes and similar equipment
whether owned, leased, hired or used by Company.
C. Workmen's Compensation Insurance
The Company shall secure and maintain Workmen's
Compensation Insurance, including Occupational Disease Provisions,
covering the obligations of the Company in accordance with the
provisions of the Workmen's Compensation Act, as amended, of the
State of Colorado.
If any class of employee engaged in hazardous work under
this Agreement at the Landfill is not protected by the Workmen's
Compensation statute, the Company shall provide, and similarly
shall cause each subcontractor to provide, special insurance for
the protection of such employees not otherwise protected.
D. Any Subcontractor Performing Work for the Company
Any subcontractor performing work for the Company under
this Agreement shall provide certificates of insurance protection
to the Company and to the City of Pueblo, Colorado, of the same
type and in the same amounts as required from the Company.
E. The Insurance Coverage
The insurance coverage enumerated in the above subpara-
graphs constitutes the minimum requirements and said enumeration
and shall in no way lessen or limit the liability of the Company
under the terms of this Agreement. The Company shall procure, and
maintain, at its own cost and expense, any additional kinds and
amounts of insurance that, in its own judgment, may be necessary
for its protection in the performance of this Agreement or work on
the Project.
F. Certificates of Insurance
Certificates of insurance for workmen's compensation,
public liability and property damage and automotive liability
shall be filed with the City prior to the execution of this
Agreement and on an annual basis thereafter. Each policy of
insurance shall contain a provision that it shall not thereafter
be cancelled, permitted to expire, or be changed without 30 days
prior written notice to the City.
Q.
9. Licenses. Company agrees to obtain at its expense and
in a timely manner, all licenses, permits, variances and approvals
from all federal, state and local public entities and agencies
with jurisdiction, and which may be required to develop and
operate the Project.
10. Property Taxes and Assessments. Company shall promptly
pay and discharge as they become due and before delinquency, all
real estate taxes, personal property taxes, assessments, charges,
liens, levies or excises, whether general or special, ordinary or
extraordinary, of every name, nature and kind, which may be
levied, charged or imposed, or which may become a lien or charge
against the Landfill or any part thereof, the interest of Company,
any property of Company, or any improvements constructed by
Company.
10.1 Eminent Domain
A. Condemnation. If during the period of this
Agreement, the Landfill, the Project, improvements to the Landfill
or Project or any portion of the Landfill or Project are condemned
or taken by any governmental authority, or by any corporation
having the power of eminent domain, City and Company agree that
any condemnation award shall be equitably apportioned between
them, to reflect their respective interests in the Landfill and
Project.
B. Taking of Project or Landfill; Termination of
Agreement If the whole of the Project or Landfill shall be taken
or condemned as aforesaid, or if such a substantial part thereof
is taken as shall result in the portion of the Project or Landfill
remaining being no longer operable as an economically useful unit
to the conduct of Company's business, then this Agreement shall
terminate as of the effective date of the condemnation. Such
termination shall, however, be without prejudice to the rights of
Company to recover from condemnor compensation and damages caused
by the condemnation or taking.
C. Rights of Mortgagee, or Transferee Any mortgagee,
assignee or transferee of the Company's rights under this
Agreement shall be a proper party to any condemnation proceeding.
All rights of any such mortgagee, assignee or transferee shall
derive exclusively from the rights of the Company herein, and the
agreements between the Company and such mortgagee, assignee or
transferee.
D. Right to Contest Award. In the event either City
or Company shall desire to contest the amount of the award offered
by a condemning authority while the other party is willing to
accept it, the unwilling party may make such contest, including
any litigation necessary or desirable for such purpose, provided
that it shall hold the willing party completely harmless from any
loss caused thereby, including any reductions in the final award,
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all costs and expenses incurred in the contest, and interest at
the rate of ten percent (10 %) per annum on any sums that otherwise
would have been paid to the willing party at an earlier date.
Prior to undertaking such contest, the party making the same shall
furnish to the other an indemnity bond or other security accept-
able to the other in any amount equal to the settlement offered or
obtained plus a reasonable estimate for costs, expenses and loss
of interest, which bond shall be conditioned on the successful
prosecution of such contest and the willing party being protected
from any loss occasioned thereby. In the event that there is any
gain realized by such contest, the gain will be paid solely to the
contesting party and the willing party will have no right to any
part of such gain except as set forth above.
11. City Approval of Construction and Design Prior to
construction of any transmission lines, generating plant, build-
ing, substation or similar structure within the Landfill, the
Company shall furnish to the City the plans for such facilities,
including all architectural, engineering, and landscaping designs
and plans. In addition, the Company shall assess and report on
the impact of its proposed construction on the Landfill and
environment. Such plans and reports may be reviewed by the City
for compliance with all applicable laws, including but not limited
to building and zoning codes, air and water pollution regulations,
and Certificate of Designation requirements, and to insure that
aesthetics and good planning principles have been given due
consideration, and that adverse impact on the environment has been
minimized. City shall within 45 days after receipt of Company's
plans and reports either approve the plans or request reasonable
changes based on the above criteria. If City does not approve the
plans or request changes within the 45 -day period, the plans shall
be deemed approved. The Company shall make reasonable changes at
City's request based on the above criteria. Any review or
approval of plans by City or similar activity conducted by City
under this Agreement is for the separate benefit of City and shall
in no way be construed as a representation that the plans are
adequate for the purpose for which they are intended or in compli-
ance with applicable federal, state or local law or regulation.
Neither Company nor any third party shall be entitled to rely in
any manner on any such review or approval by City. Review and
approval of any plans by City shall not relieve Company from any
of its obligations under this Agreement or under applicable
federal, state or local laws or regulations.
12. Responsibility for Landfill Gas Odor and Migration
Control Systems Company shall assume the responsibility for
control of odor. Company shall install and operate a gas monitor-
ing system for the disposal areas of the Landfill. In the event
of gas migration, Company shall install within the boundaries of
the Landfill control and recovery wells as may be needed.
13. Cooperation with Landfill Operator. Company acknowl-
edges and agrees that this Agreement and the rights and privileges
of Company granted hereunder are secondary and subordinate to the
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use of the Landfill as a solid waste disposal site and facility.
Company shall not, without the prior written approval of City,
construct or install the Project or any portion thereof on areas
of the Landfill which have not been permanently closed by Operator
or City and for which City has not issued written notification of
permanent closure. Company shall fully cooperate and not inter-
fere with the solid waste disposal operations, site reclamation
and monitoring activities conducted by the Operator or City at the
Landfill. It shall be the responsibility of Company to coordinate
its work and activities with the Operator or City to avoid
disruptions, delay or interference with the Operator's or City's
work and activities at the Landfill.
14. Termination If either party shall be in default
hereunder or shall fail or refuse to perform any provisions of
this Agreement required on its part to be performed, the other
party may terminate this Agreement by giving to the defaulting
party 30 days' prior written notice of termination specifying the
default, failure or omission, in which event this Agreement shall
automatically terminate unless the defaulting party shall remedy
the specified default or correct the specified failure or omission
within 30 days after receipt of such notice or, if such default,
failure or omission cannot be remedied by the payment of money
under paragraphs 4 and 5 herein and cannot with due diligence be
wholly remedied within such 30 -day period, unless the defaulting
party shall within said 30 day period actively commence action to
remedy said default, failure or omission and thereafter diligently
pursue such corrective action provided that such default, failure
or omission shall in any event by corrected and remedied within
120 days after notice thereof.
15. Site Conditions and Hazardous Materials.
(a) Company agrees that it has informed itself of the
conditions under which Company's work is to be performed, the
existing site and ground conditions and all other matters
concerning or affecting the Landfill and the Project. To the
extent any subsurface testing, logs or information has been
provided to Company by City, City disclaims the accuracy thereof
and shall not be held responsible for any variance in conditions
or unforeseen conditions encountered during Company's work on the
Project or performance under this Agreement.
(b) City is unaware of the presence of any hazardous
wastes or toxic substances regulated under the Resource Conserva-
tion and Recovery Act ( "RCRA ") and implementing regulations on,
under, or upon the Landfill. Asbestos in potentially friable form
may be located on, under, or upon the Landfill. In the event any
such wastes or asbestos is uncovered or discovered by Company
during the performance of the work and such wastes or asbestos is
required by applicable law, regulation or regulatory order to be
removed, disposed, treated or encased, Company shall be responsi-
ble for proper removal, disposal, treatment or encasement, as the
case may be. Company further agrees to take at its expense all
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actions necessary to protect its employees, the public and all
third parties from exposure to, or the hazards of, any such
hazardous wastes or asbestos.
(c) In the event of any release of hazardous wastes or
asbestos by Company, Company shall at its expense provide for
mitigation and cleanup in accordance with all applicable laws and
regulations and as ordered by the Colorado Department of Health,
and Company shall indemnify and hold City harmless from all fines,
claims, demands and judgments, including costs and attorney fees,
arising therefrom or related in any manner thereto.
16. Indemnification. Company agrees to indemnify and hold
harmless the City, its officers, agents and employees from and
against any and all suits, demands, claims, costs or expenses
(including reasonable attorney fees) which may arise or be
asserted against City, its officers, agents or employees by reason
of any act or omission of Company, its officers, employees,
agents or contractors, whether occurring on or off the Landfill,
or the use of the Landfill by Company, or any activities conducted
on the Landfill by Company or its officers, employees, agents or
contractors, or the construction, maintenance or operation of the
Project, or Company's performance under this Agreement.
16.1 Force Majeure. If either Company or City is rendered
unable by force majeure to carry out its obligation under this
Agreement, other than the obligation to make money payments under
paragraphs 4 and 5 hereof, that party shall give to the other
party prompt written notice of the force majeure with reasonably
full particulars concerning same. Thereupon, the obligations of
the party giving the notice, so far as they are affected by the
force majeure, shall be suspended during, but no longer than, the
continuance of the force majeure. The affected party shall use
its best efforts to diligently remove the force majeure as quickly
as possible.
The term "force majeure" as used herein shall mean a cause or
causes which is not reasonably within the control of the party
claiming suspension including, but not limited to, acts of God,
acts of war, riot, fire, explosion, accident, flood, or sabotage;
unavailability of fuel, power or raw material; judicial, adminis-
trative or governmental laws, regulations, rules, requirements,
orders or actions, including modifications, cancellation,
suspension or revocation of any permit, license, or other
authorization necessary for the operation of the Project as herein
contemplated; injunctions or restraining orders; failure of any
governmental body to issue or grant licenses, permits or other
authorizations necessary for the operation of the Project as
herein contemplated; national defense requirements; labor strikes,
lockouts or injunctions.
In the event that a force majeure suspends the performance of
a party's obligations under this Agreement for a continuous period
of more than nine (9) months, either party may terminate this
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Agreement upon thirty (30) days prior written notice to the other
party.
17. Removal of Improvements Upon abandonment, termination,
or cancellation of this Agreement as provided herein, at City's
option, Company shall within 120 days, at its own expense, remove
all structures and improvements placed on Landfill by or on behalf
of Company, and shall restore the site of the Project to substan-
tially its original condition unless otherwise specified in
writing by the City. If Company fails to remove all such struc-
tures or improvements within such period, they shall become the
property of the City and may be removed and disposed of by the
City and in such event, Company, for a period of 24 months after
abandonment, cancellation or termination of this Agreement shall
be responsible for the full cost of their removal and restoration
of the site of the Project to substantially its original
condition.
18. Contract Obligation This Agreement constitutes a valid
and binding contract between Company and the City of Pueblo. In
the event that the annual fee specified in this Agreement is
declared illegal, for any reason by any court or other proper
authority, the Company shall nevertheless be contractually bound
to pay the City on the same schedule as provided herein.
19. Modifications; Waiver No act or omission of any
employee or agent of the City shall constitute a waiver or
modification of any term of this Agreement, nor estop the City
from enforcing any term of this Agreement. No verbal agreements
or conversations with any agent or employee of the City, either
before or after execution of this Agreement, shall affect or
modify any of the terms or obligations of this Agreement. All
modifications to this Agreement shall be made in writing and shall
become effective only upon approval by Resolution of the City
Council of City.
20. Subcontracts And Subcontractors
A. Subcontractors
1. The Agreement, or any part thereof, shall not be
sublet by Company, except with the written consent of the
City, which consent will not be unreasonably withheld.
2. The Company agrees to be fully responsible to the
City for the acts or omissions of its subcontractors and of
anyone employed directly or indirectly by them.
3. Nothing contained in the contract documents shall
create any contractual relationship between any subcontractor
and the City.
4. The Company agrees to bind every subcontractor (and
every subcontractor of a subcontractor) by the terms of this
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Agreement as far as applicable to his work, unless
specifically noted to the contrary in any subcontract which
shall first be approved in writing by City.
B. Assignment of Contract.
No assignment of this Agreement, any part thereof, or
right thereunder by the Company shall be valid or enforceable
against the City unless the Company has tirst obtained City's
prior written consent thereto. Such written consent by the City
shall not relieve the Company of its obligations under the terms
of this Agreement.
21. Independent Contractor It is expressly agreed and
understood that the Company is, in all respects, an independent
contractor and an independent party for the purposes of this
Agreement, notwithstanding that in certain respects the Company is
bound to follow the directions of the City or an agency thereof.
The Company is in no respect an agent, servant or employee of the
City.
22. Choice of Law. This Agreement shall be interpreted in
accordance with the laws of the State of Colorado.
23. Disputes Notwithstanding any agreement or provision of
law providing for arbitration of disputes, all unresolved claims,
disputes or controversies related to or arising out of this
Agreement or performance hereunder shall be settled in a Colorado
court of competent jurisdiction.
24. In the event Company defaults in the performance of any
of the terms, covenants, agreements or conditions of this Agree-
ment, including but not limited to failure to make payments as
provided herein, and City places enforcement of this Agreement, or
the collection of any amounts due hereunder, or to become due
hereunder, in the hands of an attorney or the City Attorney, or
files suit upon the same, Company agrees to pay City its reason-
able attorney fees and costs incurred.
25. Notice. Notice shall be deemed given when mailed by
first class United States Mail to the City, addressed to:
The City of Pueblo
c/o City Manager
1 City Hall Place
Pueblo, Colorado 81003
and to Company, addressed to:
Colorado Developmental
Resource Corporation
c/o Mr. Jack R. Cohen, President
2323 South Troy St., Suite 112 D
Aurora, Colorado 80014
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or, to such other address as either City or Company shall
designate in writing to the other party.
26. Time of Essence. In the performance of all the terms,
provisions and conditions of this Agreement, time shall be of the
essence.
27. Remedies Cumulative. All of the rights and remedies of
City and Company under this Agreement shall be deemed cumulative
and no one exclusive of the other, or of any other remedy
conferred or allowed by law or equity.
28. City's Right to Enter City reserves the right to enter
at any reasonable time upon the Landfill and any structures or
facilities constructed thereon to inspect the Landfill and such
structures and facilities.
29. Parties Bound. ''his Agreement is binding on and shall
inure to the benefit of the City and Company and their respective
successors and approved assigns.
30. Complete Agreement This Agreement constitutes the
complete understanding and agreement of the parties regarding the
subject matter hereof and supersedes any and all prior oral or
written agreements, understandings, or representations regarding
the subject matter hereof. The Agreement dated October 27, 1986
between City and Company is cancelled and neither party shall have
any rights, remedies or obligations thereunder.
IN WITNESS HEREOF, the parties have caused this Agreement to
be duly approved and executed as of the date first written above.
PUEBLO, A MUNICIPAL CORPORATION
[S E A L]
Pr sident of the City Council
ATTEST:
j
7 y"'4c"i e Ir
COLORADO DEVELOPMENTAL RESOURCE
CORPORATION
President
ATTEST: i
S c re a y
-13-
[S E A L]
TJ 23. 24
APPENDIX "A"
The S 1/2 of the NW 1/4, the N 1/2 of the S 1/2, and the
S 1/2 of the SW 1/4, all in Section 18, Township 21 South,
Range 65 West of the 6th P.M.; and a portion of the E 1/2
of the E 1/2 of Section 13, Township 21 South, Range 66
West of the 6th P.M. being the East 600 feet of the South
2,975 feet of said Section 13; Pueblo County, Colorado,
containing approximately 361 acres, excepting existing
roads and rights of way and subject to easements,
restrictions, reservations and rights of way of record.
City of Pueblo
THOMAS E. JAGGER
City Attorney
127 West, First National Bank Bldg.
MEMORANDUM PUEBLO, COLORADO 81003
TO: Members of the City Council and City Manager
FROM: City Attorney
DATE: March 21, 1988
RE: Landfill Gas Recovery, South Landfill
The City and Colorado Developmental Resource Corporation (Company)
entered into an Agreement October 27, 1986 granting to Company the
right to construct, develop and operate landfill gas recovery and
electrical generating facilities at the South Landfill. The Agree-
ment anticipated that the gas recovery activities and solid waste
disposal activities could take place in conjunction with each other
at the South Landfill and that gas recovery activities would imme-
diately commence on the closed landfill areas of the South Landfill.
However, the Company claims that because of the changes in solid
waste disposal activities and City's subsequent (July 1987) agree-
ment with Zupan Enterprises, Inc., the Company has been unable to
proceed with its development plans and has requested modification to
the Agreement. Company contends that at the time the Agreement was
entered into Company understood that the solid waste landfill
operations at the South Landfill would cease in 1987, the South
Landfill would no longer be used as a solid waste disposal site, and
Company could proceed with its development plans. City disputes
Company's contentions but has indicated a willingness to submit an
Amended Agreement to the City Council.
The Amended Agreement specifically states the Company's right to
conduct landfill gas recovery activities are secondary and subor-
dinate to the use of the South Landfill as a solid waste disposal
site and facility. Company also agrees that it will construct its
gas recovery facilities only on areas of the South Landfill which
have been permanently closed and for which City has issued written
notification of permanent closure. Company's minimum annual payment
starts when City notifies Company of permanent closure and the
20 -year term of the Amended Agreement commence upon such notice.
Company may, however, proceed with its development plans and
engineering prior to any such notice given by the City.
The execution of the Amended Agreement will resolve the present
dispute and protect the City's primary right to continue to use the
South Landfill as a solid waste disposal site and facility.
Thomas E 'Jagger