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HomeMy WebLinkAbout1983-126-08/02/1983-AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AMENDED AGREEMENT WITH BALLER LIVESTOCK COMPANY FOR TH RESOLUTION 83-126 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AMENDED AGREEMENT WITH BALLER LIVESTOCK COMPANY FOR THE PURCHASE OF STORAGE CAPACITY IN THE MEADOW CREEK RESERVOIR WHEREAS, on November 9, 1982, the Council of the City of Fort Collins did, by Resolution 82-156, authorize the City Manager to enter into an agreement with Baller Livestock Company for the purpose of purchasing 1,200 acre feet of storage capacity in the Meadow Creek Reservoir, and WHEREAS, pursuant to said Resolution, an agreement was entered into between the City and Baller Livestock Company as aforementioned, which agreement contained, in Paragraph 4(F) thereof a contingency that the City shall receive the statement of the Colorado State Engineer to the effect that the said reservoir is properly constructed and that the plans and specifications and construction have been approved by the State Engineer and that there are no known impediments to the present or future storage of water in the reservoir to its full and decreed capacity, and WHEREAS, subsequent to the execution of said agreement, it has been discovered that the discharge capacity owned by Baller Livestock Company is 42 57% rather than 42 85% as originally contemplated, and WHEREAS, subsequent to the execution of said agreement, it has been determined that the State Engineer cannot certify as to the construction of the reservoir nor as to the plans and specifications therefor, and WHEREAS, the state engineer has given his written certification that he has removed all operational restrictions on the reservoir and that, at the present time, there are no known impediments that would require storage restrictions to be placed on the reservoir, and WHEREAS, as a result of the failure of Baller Livestock Company to produce the required written statement from the State Engineer as provided in the aforesaid agreement, Baller Livestock Company has submitted an offer to the City to reduce the purchase price of the said storage capacity in Meadow Creek Reservoir from $829,400 to $745,000, and WHEREAS, it is the finding of the Council of the City-of Fort Collins that the aforesaid reduction in the purchase price of the storage capacity in the Meadow Creek Reservoir is reasonable and that it is in the best interest of the citizens of the City of Fort Collins that the said contract be amended accordingly by reduction of the purchase price of the said storage capacity from $829,400 to $745,000 and by acceptance by the City of the written statement of the State Engineer as it has been presented to the City with waiver by the City of those conditions of Paragraph 4(F) of the agreement which have not been met pursuant to the State Engineer's letter NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the City Manager be and he hereby is authorized to execute an amended agreement between the City and Baller Livestock Company for the purpose of purchasing 1,200 acre feet of storage capacity in the Meadow Creek Reservoir in Jackson County, Colorado for the sum of $745,000 and with acceptance of the letter of the State Engineer as presently in the possession of the City with waiver of (1) any additional obligation of Baller Livestock Company to produce further statements from the State Engineer and (2) the obligation of Baller Livestock Company to furnish an easement across property of the State Land Board, and with amendment of the discharge capacity of Baller Livestock Company to 42 57% Passed and adopted at a regular meeting of the City Council held this 19th day of July, A D 1983 ,. f � E_ `�S1P2ai Mayor ATTEST city clerk 13 -2-