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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. r ATTEST: (� if City Clerk