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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 1 of 5 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 2of5 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. 3 of 5 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. 4of5 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: 5 of 5 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 PVPExhibitA.xls/ExhibitA2 Page 2 of 2 5/6t99 4:12 PM