HomeMy WebLinkAbout1995-081-06/20/1995-EASEMENT AGREEMENT JOE WRIGHT RESERVOIR SELF-INSURANCE COVERAGE US FOREST SERVICE RESOLUTION 95-81
OF THE COUNCIL OF THE CITY OF FORT COLLINS
CERTIFYING SELF-INSURANCE COVERAGE MEETING THE
REQUIREMENTS OF SECTION IV OF THE WATER FACILITY
EASEMENT AGREEMENT BETWEEN THE UNITED STATES FOREST SERVICE
AND THE CITY OF FORT COLLINS FOR THE JOE WRIGHT RESERVOIR
WHEREAS, on January 6, 1995,the City of Fort Collins (the "City") and the United States
Forest Service (the "Forest Service") entered into a Water Facility Easement agreement (the
"Easement Agreement") pursuant to which the Forest Service granted to the City an easement for
a term of fifty(50) years permitting the City to continue to operate and maintain on Forest Service
land the City's Joe Wright Reservoir(the "Reservoir"); and
WHEREAS, the City had previously operated and maintained the Reservoir on Forest
Service land pursuant to a special use permit which has expired, making it necessary for the City to
enter into the Easement Agreement; and
WHEREAS, as a condition to the Forest Service granting the City an easement for the
Reservoir, the Forest Service has required in Section IV of the Easement Agreement that the City
maintain ten million dollars ($10,000,000) worth of insurance coverage acceptable to the Forest
Service for any and all injury,loss, or damage caused by the City's negligent use or occupancy of the
easement for the Reservoir and also to agree, except as otherwise provided by the law of the State
of Colorado,that the City be strictly liable to the Forest Service for all injury,loss,or damage caused
by the City's use or occupancy of the easement for the Reservoir, without regard to the City's
negligence provided, however, that such liability shall not exceed one million dollars ($1,000,000);
and
WHEREAS, Paragraph C of Section IV provides that the City may satisfy its insurance
requirements under the Easement Agreement by either purchasing such insurance coverage from a
third-party insurer or by certifying to the Forest Service that the City has satisfied the insurance
requirements of Section IV of the Easement Agreement through self-insurance; and
WHEREAS, as authorized by C.R.S. §24-10-115 of the Colorado Governmental Immunity
Act,the Council adopted on January 5, 1988, Resolution 88-1 establishing a self-insurance program
and a self-insurance fund for the City; and
WHEREAS,Section Z.a.ofKesolution 88-1 provides that the City's self-insurance funntsh-<dl
be used to cover expenditures from the fund for civil claims not to exceed $150,000 to any one
person for claims arising out of a single incident or occurrence or$400,000 in total payment to all
persons for claims arising out of a single incident or occurrence(the "Expenditure Limitations"); and
WHEREAS, in order to satisfy the insurance coverage requirements of Section IV of the
Easement Agreement, it is necessary to amend Section 2.a. of Resolution 88-1 with respect to the
Expenditure Limitations; and
WHEREAS, it is in the best interest of the City to contractually agree to the insurance
coverage obligations set forth in Section IV of the Easement Agreement in order to secure the
easement needed from the Forest Service for the City's continued operation of the Reservoir, which
constitutes an essential and integral part of the City's water supply system; and
WHEREAS, the Easement Agreement requires the City to provide to the Forest Service
within one hundred eighty days (180)of the execution of the Easement Agreement, certification that
the City meets the insurance coverage requirements of Section IV of the Easement Agreement.
NOW,THEREFORE,BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That Section 2.a. of Resolution 88-1 is hereby amended to increase the
Expenditure Limitations to ten million dollars ($10,000,000) for the sole and exclusive purpose of
satisfying the self-insurance requirements of Section IV of the Easement Agreement.
Section 2. That in the event the unreserved funds of the City's self-insurance fund
established by Resolution 88-1 are insufficient to satisfy any judgment obtained against the City as
described in Section IV of the Easement Agreement, such additional funds as may be necessary to
satisfy the judgment shall be the responsibility and obligation of the City's Water and Wastewater
Department's Enterprise Fund.
Section 3. That except as provided in Section 1 above,this Resolution shall not increase
the Expenditure Limitations for any other civil claims against the City, it being the intent of the City
Council to keep in full force and effect the Expenditure Limitations for such claims.
Section 4. That by this Resolution it is hereby certified that the City is self-insured for
the purpose of satisfying the insurance coverage requirements of Section IV of the Easement
Agreement.
Section 5. That this certification of self-insurance shall not be amended or deleted
without thirty (30) days prior written notice to the Forest Service supervisor for the Arapaho and
Roosevelt National Forests.
Passed and adopted at a regular meeting of the Council e ity of Fort ins Id this
20th day of June, A.D., 1995.
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