HomeMy WebLinkAbout1999-057-05/18/1999-AUTHORIZING AN IGA WITH NCWCD FOR PARTICIPATION IN THE PLEASANT VALLEY PIPELINE PROJECT RESOLUTION 99-57
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE MAYOR TO EXECUTE AN INTERGOVERNMENTAL
AGREEMENT WITH THE NORTHERN COLORADO WATER CONSERVANCY DISTRICT
ACTING BY AND THROUGH THE PLEASANT VALLEY PIPELINE WATER ACTIVITY
ENTERPRISE AND THE CITY OF FORT COLLINS WATER UTILITY ENTERPRISE
FOR PARTICIPATION IN THE PLEASANT VALLEY PIPELINE PROJECT
WHEREAS, by Resolution 97-88 the City Council adopted the Revised Water Treatment
Facilities Master Plan; and
WHEREAS, a new raw water transmission pipeline from the Poudre River to the City's
water treatment facility is included as a part of the master plan; and
WHEREAS,the City of Fort Collins,the City of Greeley,and three local water districts have
been exploring the feasibility of sharing the use of the new "Pleasant Valley Pipeline" (PVP) to
avoid duplication of similar pipelines; and
WHEREAS, the parties are now ready to move ahead with the second phase of the project
which will include environmental studies, design, permitting, right-of-way acquisition and related
work; and
WHEREAS,the Northern Colorado Water Conservancy District(NCWCD)has formed the
"PVP Enterprise" to design, construct, own, and operate the pipeline for the City and the other
participants; and
WHEREAS,the terms and conditions upon which the City and NCWCD would pursue Phase
2 of the PVP project are set forth in the "Intergovernmental Agreement for Participation in the
Pleasant Valley Pipeline Project,"a copy ofwhich is attachedhereto as Exhibit"A"and incorporated
herein by reference (the "Agreement").
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT
COLLINS that the Council hereby approves the Agreement and authorizes the Mayor to execute the
Agreement on behalf of the City.
Passed and adopted at a regular meeting of the City Council held this 18th day of May
A.D. 1999.
Mayor
ATTEST:
City Clerk
EXHIBIT A
INTERIM AGREEMENT BETWEEN THE
NORTHERN COLORADO WATER CONSERVANCY DISTRICT,
ACTING BY AND THROUGH THE
PLEASANT VALLEY PIPELINE WATER ACTIVITY ENTERPRISE,
AND
THE CITY OF FORT COLLINS
AND
THE CITY OF FORT COLLINS WATER UTILITY ENTERPRISE
FOR PARTICIPATION IN THE
PLEASANT VALLEY PIPELINE PROJECT
This Agreement is made and entered into as of , 1999, by and between the
Northern Colorado Water Conservancy District (a quasi-municipal entity and political
subdivision of the State of Colorado) (the "District"), acting by and through its Pleasant Valley
Pipeline Water Activity Enterprise (a government-owned business within the meaning of Article
X, Section 20(2)(d), of the Colorado Constitution, organized pursuant to C.R.S. §§ 37-45.1-101
et seq.), whose address is 1250 North Wilson Avenue, Loveland, Colorado 80537 (the "PVP
Enterprise") , and the City of Fort Collins, Colorado, a municipal corporation, whose address is
300 LaPorte Avenue, Fort Collins, Colorado 80521("Participant"), and the City of Fort Collins
Water Utility Enterprise (a government-owned business within the meaning of Article X, Section
20(2)(d), of the Colorado Constitution, organized pursuant to C.R.S. §§ 37-45.1-101 et seq.),
whose address is 700 Wood Street, Fort Collins, Colorado 80521 ("the Participant Enterprise").
Recitals
A. The PVP Enterprise is developing a municipal water supply conveyance system known as
the Pleasant Valley Pipeline Project (the 'Project") to provide raw water to entities
located in the northern and western parts of the District and its Municipal Subdistrict
("Subdistrict').
B. Overall Project costs will be divided among the entities which participate in the Project.
C. The Participant Enterprise is made a party to this Agreement solely for the purpose of
entering into any multi-year fiscal obligation required under this Agreement.
D. The First Phase of the Project consisted of preliminary planning studies necessary to
define the Project and determine its feasibility. The First Phase has been accomplished
and the Project appears to be feasible and of value to the citizens and communities within
the District and the Subdistrict.
E. The District is now pursuing the Second Phase of the Project, which consists of
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environmental studies, design, permitting, right-of-way acquisition and related work. It is
necessary that the District pursue the Second Phase of the Project at this time in order to
be able to complete the Project on the time schedule desired by the participants.
F. Continuance and completion of the Second Phase of the Project on behalf of the
participants will require funding to complete environmental studies, design, permitting,
right-of-way acquisition and related work.
Agreement
1. Participant agrees to participate in completing the Second Phase of the Project to
complete environmental studies, design, permitting, right-of-way acquisition and related
work for the Project. Participation in the Second Phase of the Project in no way obligates
Participant to subsequent phases of the Project or to continue involvement in the Project
in any manner.
2. The "Summer delivery period" shall mean the period from April 1 to October 31,
inclusive, of each year. Flow in the Pleasant Valley Pipeline during the Summer delivery
period is north to south.
3. The "Winter delivery period" shall mean the period from November 1 of each year to
March 31 of the following year, inclusive. Flow in the Pleasant Valley Pipeline during the
Winter delivery period is south to north.
4. "Segment 1" shall be the segment of the pipeline from the Munroe Canal Turnout to the
Greeley Bellvue Turnout, exclusive of the turnout. Participant's flow capacity in Segment
1 during both the Summer delivery period and the Winter delivery period is 60 percent of
the total capacity of Segment 1.
5. "Segment 2" shall be the segment of the pipeline from the Greeley Bellvue Turnout to the
pipeline terminus at the Fort Collins Water Treatment Facility and Soldier Canyon Filter
Plant. Participant's flow capacity in Segment 2 during the Summer delivery period is 60
percent of the total capacity of Segment 2. Participant's flow capacity in Segment 2
during the Winter delivery period is 60 percent of the Segment 2 capacity remaining after
Greeley's 30 MGD share.
6. "Segment 3" shall be the segment of the pipeline from the existing 54-inch Soldier
Canyon outlet from Horsetooth Reservoir to the pipeline terminus at the Fort Collins
Water Treatment Facility and Soldier Canyon Filter Plant. Participant's flow capacity in
Segment 3 during both the Summer delivery period and the Winter delivery period is 0%
of the total capacity of Segment 3.
7. "Segment 4" shall be the Greeley Bellvue Turnout from the junction of Segments 1 and 2
to the Greeley Bellvue Filter plant. Participant's flow capacity in Segment 4 during both
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the Summer delivery period and the Winter delivery period is 0% of the total capacity of
Segment 4.
8. Participant may request a change in allocated flow capacity for any pipeline segment,
which will be implemented by the PVP Enterprise so long as any increased costs of
design, environmental studies, permitting or other matters are paid by the Participant
Enterprise. If a change in Participant's capacity is made, the formula for allocation of
costs among the participants shall be changed accordingly so that all participant's bear
their pro rata share of the costs of the Project after the change.
9. Participant Enterprise agrees to provide to the PVP Enterprise funds for its pro rata share
of the costs necessary to complete the Second Phase of the Project. The PVP Enterprise
estimates that Participant Enterprise's pro rata share of the costs of the Second Phase of
the Project is $500,000 for the 1999 calendar year, and $1,000,000 for the 2000 calendar
year. Participant Enterprise will pay the PVP Enterprise its pro rata share of the 1999
calendar year costs on or before June 15, 1999, and Participant Enterprise will pay the
PVP Enterprise one-half of its pro rata share of the 2000 calendar year costs on or before
January 15, 2000 and the remaining one-half on or before July 15, 2000. These estimated
costs will not be increased or exceeded without the prior written approval of Participant
Enterprise. However, if the Second Phase of the Project cannot be completed within
these estimated costs, the PVP Enterprise is not obligated to complete the Second Phase
of the Project for the benefit of Participant unless sufficient additional pro rata funds as
determined by the PVP Enterprise are provided by Participant Enterprise. In the event
that Participant Enterprise's share of actual costs are less than the amount of funds
provided to the PVP Enterprise by Participant Enterprise, then such excess shall be
refunded to Participant Enterprise, or, at Participant Enterprise's option, credited to
Participant Enterprise's share of the next phase of the Project. Participant Enterprise or
its agent shall have the right to inspect and audit the books and records of the PVP
Enterprise relating to the Project upon reasonable notice to the PVP Enterprise. Attached
hereto as Exhibit A is a table showing the pro rata share of the costs of the Project for
each participant based upon current allocations of capacity in the Project.
10. In the event that Participant Enterprise fails to make any of the payments set forth above
at the specified times, the PVP Enterprise shall have the right to terminate this Agreement
and cease all work on the Project for the benefit of Participant. The PVP Enterprise shall
give Participant and Participant Enterprise ten (10) days' advance written notice of its
intention to terminate this Agreement and cease work on the Project for Participant's
benefit under this paragraph. Participant Enterprise shall have until the end of said 10-
day period in which to make all past due payments in full in order to cure its default
hereunder. Participant Enterprise shall in any event be responsible for its pro rata share of
costs of the Second Phase of the Project actually incurred by the PVP Enterprise as of the
date of termination of this Agreement.
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l 1. The PVP Enterprise agrees to diligently pursue the Second Phase of the Project in good
faith to the extent that funds therefor are provided by the Participant Enterprise under this
Agreement and by other participants under similar agreements. By entering into this
Agreement and accepting payments from Participant Enterprise, the PVP Enterprise does
not obligate itself to, nor does the PVP Enterprise warrant, that it will proceed with
construction of the Project beyond the Second Phase or that it will construct or operate
the Project. At the end of the Second Phase, the PVP Enterprise will determine after
consultation with the participants whether to proceed with the Project. The PVP
Enterprise agrees that, if the participants provide all required funding, if the PVP
Enterprise has the ability, and if the Project is feasible and practical, it will pursue the
construction and operation of the Project if requested to do so by all participants. In the
event that the PVP Enterprise decides not to proceed with the Project, it will so notify
Participant and this Agreement will immediately and automatically terminate upon the
giving of such notice.
12. In the event of termination of this Agreement or of the Project, Participant Enterprise
shall not be entitled to any return of funds paid to the PVP Enterprise for the Project,
unless payments by participants exceed the PVP Enterprise's costs, in which case a pro
rata refund will be made. In the event of such termination, Participant shall be entitled to
receive copies of any work products developed by the PVP Enterprise or its consultants
on behalf of Participant, and PVP Enterprise shall convey to Participant, as a tenant in
common with all other participants, a pro rata interest in all real and personal property
acquired by the PVP Enterprise for the Project with funds provided under this Agreement
or similar agreements with other participants.
13. Participant shall have the right to assign this Agreement and Participant's rights hereunder
to any person or entity that is eligible to receive water deliverable through the Project and
that is financially able to perform this Agreement with the written consent of the PVP
Enterprise, which consent shall not be unreasonably withheld.
14. In the event that this Agreement is terminated for any reason, Participant Enterprise shall
not be entitled to any return of any funds paid to the PVP Enterprise for the Project, and
the PVP Enterprise shall have no further obligations to Participant, except as provided in
Paragraph 12 above.
15. This Agreement is the entire agreement between the PVP Enterprise, Participant and
Participant Enterprise regarding participation in the Project and shall be modified by the
parties only by a duly executed written instrument approved by Participant, Participant
Enterprise and the PVP Enterprise.
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IN WITNESS HERETO THE PARTIES HERETO have executed this Agreement as of the date
and year first above written.
THE CITY OF FORT COLLINS, COLORADO,
A Municipal Corporation
ATTEST: By:
Mayor
City Clerk
APPROVED AS TO FORM:
Deputy City Attorney
CITY OF FORT COLLINS
WATER UTILITY ENTERPRISE,
An Enterprise of the City
ATTEST: By:
President
City Clerk
NORTHERN COLORADO WATER
CONSERVANCY DISTRICT,
ACTING BY AND THROUGH THE PLEASANT
VALLEY PIPELINE WATER
ACTIVITY ENTERPRISE
By:
Name:
Title:
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EXHIBIT A Flow Capacities(Used for allocating segment-specific costs)
PLEASANT VALLEY PIPELINE I Duration
Cost Allocation Participant Flow m Start End No.Days
Medium Flow Condition: 62-Inch Pipe Fort Collins 60 1-Apr 31-Oct 214
Soldier Canyon 40 1-Apr 31-Oct 214
Greeley 30 1-Nov 31-Mar 151
Segment 1 Length(ft): 12,300
Segment 2 Length(ft): 31,100
Estimated Fort Collins Soldier Canyon Gm ley
Item Cost Percent Share Amount Percent Share Amount Percent Share Amount
SEGMENT SPECIFIC COSTS
Segment 1-Munroe Canal to Greeley Tumout
Pipeline Construction $ 4,499,650 60.0% $ 2,699,790 40.0% $ 1,799,860 0.0% $ -
Land and Fight-of-Way $ 520,000 60.0% $ 312,000 40.0% $ 208,000 0.0% $
Segment 1 Total $ 5,019.660 $ 3,011,790 $ 2.007.860 $ -
Segment 2-Greeley Tumout to Soldier Canyon
Pipeline Construction $ 9,385,600 49.5% $ 4,647,506 33.0% $ 3.098,337 17.5% $ 1,639,657
Land and Right-of-Way $ 1,240,000 49.5% $ 614,022 33.0% $ 409,348 17.5% $ 216,629
Segment 2 Total $ 10.625,500 $ 5.261.528 $ 3.507,685 $ 1,856,287
Segment 3-Greeley Connection to Soldier Canyon Outlet $ 110,800 0.0% $ - 0.0% $ - 100.0% $ 110,800
Segment 4-Bellvue Tumout $ 314.300 0.0% $ 0.0% $ - 100.0% $ 314,300
Subtotal(Segment specific costs) S 16,070,250 S 8,273,318 $ 5,515,545 $ 2,281,387
NON-SEGMENT SPECIFIC COSTS
Design,Permitting and Project Management $ 1,410,000 37.7% $ 530,971 37 7% $ 530.971 24.7% $ 348,058
Electrical/SCADA $ 583,000 37.7% $ 219,543 37.7% $ 219,543 24.7% $ 143,913
Construction Services $ 487,000 37.7% $ 183,392 37.7% $ 183,392 24.7% $ 120.216
Subtotal(Non-segmentspecific costs) $ 2,480,000 $ 933,907 $ 933,907 S 612,187
Total Estimated Project Cost S 18,550,250 $ 9,207,225 $ 6,449,452 $ 2,893,574
PREVIOUS COSTS
Predesign/Route Selection $ 209,375 0.25 $ 52,344 0.25 $ 52,344 0.25 $ 52,344
TOTAL ESTIMATED PROJECT COST S 18,759,625 S 9,259,568 $ 6,501.796 S 2,945,917
e.755 625
Notes:
1 Segment specific costs will be those costs which relate only to an individual specific Segment of the Pipeline,
including,but not limited to costs for nghtol-way,pipeline materials and installation,appurtenances,and
electrical and instrumentation facilities.
2 Non-segment specific costs will be those costs which relate to the Pipeline,but cannot be specifically related to an
individual specific Segment of the Pipeline,including,but not limited to permitting,environmental,design,
engineering,administration,and SCADA control system costs.
Examples of Cost Allocation Formulas:
Segment Specific Costs
Segment 1:
Soldier Canyon Share=Osc✓(OFc+DO
Segment 2:
Fort Collins Share=(OFc x tFc)I((OFc x trc)+(OK x tsc)+(Da x to))
Non-Segment Specific Costs
Greeley Share=(Segment 1 CosVTotal Cost)x Segment 1 Share+(Segment 2 Cost/Total Cost)x Segment 2 Share
+(Segment 3 Cost/Total Cost)x Segment 3 Share+(Segment 4 Cost/Total Cost)x Segment 4 Sham
Non-segment specific shares:
Participant Segment 1 I Segment 2 Segment 3 Se ment 4
Fort Collins 50% 33% 0% 0%
Soldier Canyon 50% 33% 0% 0%
Greele 0% 33% 100% 100%
PVPExhibitA.xls%ExhibitA1 Page 1 of 2 6/6199 4:12 PM
EXHIBIT A. continued
PLEASANT VALLEY PIPELINE
Design and Right-of-Way Acquisition Phase Budget Estimate
Previous Estimated 1999 2000 2001
Estimate Cost Allocation Allocation Allocation
Predesion and Route Selection $ 230,000 $ 209,375 $ - $ - $ -
Enoineering Design ICH2M HILL)
Final Design $ 900,000 $ 850,000 $ 200,000 $ 650.000 $ -
Seismic Refraction Surveys(optional) $ - $ 60,000 $ 60,000
Construction Services $ 120,000 $ 125.000 $ $ $ 125,000
Subtotal $ 1,020,000 $ 1,035,000 $ 200,000 $ 710,000 $ 125,000
Land and Riahtof-Way Acquisition
Segment 1:
Appraisals $ 80,000 $ 80,000 $ 40,000 $ 40,000 $ -
Survey/Legal Descriptions $ 60,000 $ 20,000 $ 20,000 $ - $ -
Title Company $ 30.000 $ 5,000 $ 5,000 $ - $ -
Legal Services $ 100.000 $ 100,000 $ 15,000 $ 85,000 $ -
NCWCD Staff(ROW agent) $ 75.000 $ 35,000 $ 17,500 $ 17,500 $ -
Land/Easement Purchase $ 980,000 $ 280,000 $ 70,000 $ 210,000 $
Segment 1 Subtotal $ 1,325,000 $ 520,000 $ 167,500 $ 352,500 $ -
Segmenl 2:
Appraisals $ - $ 160,000 $ 80,000 $ 80,000 $ -
Survey/Legal Descriptions $ - $ 100,000 $ 100,000 $ - $ -
Title Company $ - $ 15,000 $ 15,000 $ - $ -
Legal Services $ - $ 200.000 $ 35,000 $ 165,000 $ -
NCWCD Staff(ROW agent) $ - $ 65,000 $ 32,500 $ 32,500 $ -
Land/Easement Purchase $ $ 700,000 $ 180,000 $ 520,000 $
Segment 2 Subtotal $ - It 1,240,000 $ 442,500 $ 797,500 $
Total Land and Right-of-Way Acquisition $ 1,325,000 $ 1,760,000 $ 610,000 $ 1,150,000 $ -
Permitting and Environmental
Environmental Consultant $ 30.000 $ 100.000 $ 50.000 $ 50.000 $ -
Legal Services $ - $ 50,000 $ 25,000 $ 25.000 $ -
Section 7/NEPA(if needed) $ $ 150,000 $ 75,000 $ 75,000 $
Subtotal $ 30,000 $ 300,000 $ 150,000 $ 150,000 $ -
Protect Management
Legal Services $ 100,000 $ 100,000 $ 33,000 $ 33,000 $ 34,000
NCWCD Staff $ 125,000 $ 100,000 $ 50.000 $ 50,000 $
Subtotal $ 225,000 $ 200,000 $ 83,000 $ 83,000 S 34,000
Construction Services
Construction Manager $ 176,800 $ 176,800 $ - $ - $ 176,800
Construction Inspection(NCWCD Labor) $ 83,200 $ 83,200 $ - $ - $ 83,200
Testing During Construction $ 50,000 $ 50,000 $ - $ $ 50,000
NCWCD Labor $ 52,000 $ 52,000 $ $ $ 52,000
Subtotal $ 36$000 $ 362,000 $ - $ - $ 362,000
Construction
Segment 1 $ 4,306,050 $ 4,499.650 $ - $ - $ 4,499.650
Segment 2 $ 8,861.300 $ 9,385,500 $ - $ $ 9,385,500
Segment 3(Greeley Connection) $ 314,300 $ 110,800 $ - $ - $ 110,800
Segment 4(Bellvue Tumout) $ 110,800 $ 314,300 $ - $ $ 314,300
SCADA/Control $ 583,000 $ 583,000 $ $ $ 583,000
Project Construction $14,175,450 $14,893,250 $ - $ - $ 14,893,250
Total Estimated Project Cost $17,367,450 $18,759,625 $ 1,043,000 $ 2,093,000 $ 15,414,250
Project Contingency Fund(5%/) $ $ 940,000 $ 60,000 $ 110,000 $ 770,000
Total Project Budget $17,367,450 $19,699,625 S 1,103,000 $ 2,203,000 $ 16,184,250
$ 19,699.825
1999 2000 2001 Total
Fort Collins Share: 505,000 1.003,000 8,053,000 $ 9,561,000
Soldier Canyon Share: 399,000 801,000 5,604,000 $ 6,604,000
Greeley Share: 199,000 399,000 2,527,000 $ 3,125,000
$ 1,103,000 $ 2,203,000 $ 16,184,000 $ 19,490,000
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