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HomeMy WebLinkAbout23-60 Sixth Addendum to the Water Service Agreement Central Weld County Water District 05-24-2023RESOLUTION NO.23-60 A RESOLUTION OF THE BOARD OF TRUSTEES OF THE TOWN OF FIRESTONE, COLORADO, APPROVING THE SIXTH ADDENDUM TO THE WATER SERVICE AGREEMENT BETWEEN THE TOWN OF FIRESTONE AND CENTRAL WELD COUNTY WATER DISTRICT WHEREAS, with the exception of the Fifth Addendum dated May 13, 2010, the substantive terms of all other prior addendums to the parties Water Service Agreement ("Agreement') have expired upon their own terms, such addendums include: the First Addendum to such Agreement dated December 30, 1998, the Second Addendum to such Agreement dated April 9, 2002, the Third Addendum to such Agreement dated July 1, 2003, and the Fourth Addendum to such Agreement dated January 5, 2005; and WHEREAS, the Parties are currently involved in litigation in Case No. 21 CV30465 regarding alleged overcollection of fees paid by the Town; and WHEREAS, on April 7, 2023, the Parties participated in mediation in an attempt to resolve the remaining issues between the Parties; and WHEREAS, upon completion of the April 7, 2023, mediation, the Parties jointly agreed to a Memorandum of Understanding ("MOU") in which the Parties agreed to certain terms for a service agreement which will frilly replace the existing Agreement; and WHEREAS, while the Parties intend to make their best efforts to adopt a new service agreement in a timely manner, the Parties acknowledge that adopting a new service agreement may take several months and may not be completed prior to the scheduled trial date; and WHEREAS, the Parties desire to give immediate effect to the terms that were approved in the MOU by incorporating those terms into the Sixth Addendum to the existing Agreement. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF TRUSTEES OF THE TOWN OF FIRESTONE, COLORADO: The Sixth Addendum to the Water Service Agreement between the Town of Firestone and Central Weld County Water District is approved in substantially the same form as the copy attached hereto and made a part of this resolution, and the Mayor is authorized to execute the Sixth Addendum on behalf of the Town. INTRODUCED, READ, AND ADOPTED this 24th day of May, 2023. Drew Alan Peterson, Mayor APPRO AS TO ,p��S T William P. Hayashi, TcUh Attorney SIXTH ADDENDUM TO AGREEMENT This Sixth Addendum to Agreement, dated NQJ, 2023, is between the Town of Firestone, Colorado ("Town") and Central Weld County Water istrict ("District") and supplements and amends the Water Service Agreement dated May 28, 1974, and the Fifth Addendum to such Agreement dated May 13, 2010 (collectively the "Agreement"). The Town and the District are referred to as the "Parties". WHEREAS, with the exception of the Fifth Addendum dated May 13, 2010, the substantive terms of all other prior addendums to the Agreement have expired upon their own terms, such addendums include: the Addendum to such Agreement dated December 30, 1998, the Second Addendum to such Agreement dated April 9, 2002, the Third Addendum to such Agreement dated July 1, 2003, the Fourth Addendum to such Agreement dated January 5, 2005; and WHEREAS, the Parties are involved in current litigation in Case No. 21CV30465 regarding alleged overcollection of fees paid by the Town; and WHEREAS, on April 7, 2023 the Parties participated in mediation in an attempt to resolve the issues remaining between the Parties; and WHEREAS, at the completion of the April 7, 2023 mediation, the Parties jointly agreed to a Memorandum of Understanding (the "MOU") in which the Parties agreed to certain terms for a service agreement which will fully replace the existing Agreement; and WHEREAS, while the Parties intend to make their best efforts to adopt a new service agreement in a timely manner, the Parties acknowledge that adopting a new service agreement may take several months, and may not be completed prior to the scheduled date for trial in 21CV30465; and WHEREAS, the Parties wish to give immediate effect to the terms that were approved in the MOU by incorporating those terms into this Sixth Addendum to the existing Agreement; Now, therefore, the Parties hereby agree that the Agreement shall be modified as follows: 1. Incorporation. The foregoing recitals are hereby incorporated into this Agreement. 2. Effective Date. The terms of this Sixth Addendum shall be effective as of June 1, 2023. Raw Water Dedication. The Town shall transfer to the District a minimum of 112% percent of the total water metered for treatment and delivery at the Town's master meter(s). 4. Treatment Provider. District will treat raw water from water supplies which are owned or available to the Town at Carter Lake and to which the Town dedicates to District for treatment at the Carter Lake Filter Plant. These sources include the Town's Colorado Big -Thompson water and Windy Gap water. The District may treat other sources of eligible water (NISP) at its future treatment facilities at the Town's request, subject to an amended or separate agreement. 5. Cross Connection. The Town shall install and maintain appropriate back flow prevention devices adjacent to the master meters to prevent water from the Town's water treatment plant from entering District distribution system. 6. Future Annexation of Current Retail Customers. Any and all District tap customer's receiving water treatment services from the District, which are subsequently annexed to the Town of Firestone, will remain customers of the District on a retail customer basis and will be served by the District unless and until the property so served is subject to a recorded subdivision plat within the Town of Firestone. In addition, any currently annexed customers of the Town which originally acquired potable water by acquiring a water tap from the District, which are on properties that have not been the subject of a recorded subdivision plat within the Town of Firestone, the District will take back as a retail customer. Any customers located in the Town that are served by the District will be charged the same rates as all other retail customer of the District. There will be no out -of -District surcharge applied to any customer in the Town. Water Tap Fees. Tap fees will be paid to the District only for new water taps that are relying on dedication of C-BT or Windy Gap raw water. The District will be paid $6,000 per tap for the next 150 Single Family Equivalent taps purchased by the Town after the new service agreement is in effect. This rate shall expire 48 months after the effective date of the new service agreement. For taps purchased beyond number I50 or after 48 months, whichever occurs first, the tap fees paid to the District will match the then -current capital investment fee as duly adopted by the District. The Town shall provide the District with a monthly accounting of water taps issued based on a dedication of C-BT or Windy Gap water in the preceding month. 8. Base Charge. The rate for potable water service by the Town to its customers will be set by the Town. 9. Amendment. Except as modified by this Sixth Addendum, the Agreement shall remain in full force and effect until the parties agree to a new service agreement. TOWN OF FIRESTONE Drew Peterson, Mayor CENTRAL WELD COUNTY WATER DISTRICT President of the Board of Directors