This agreement is entered into effective the eighth day of March,
2004, by and among the Central Grand Valley Sanitation District (“CGVSD”),
the Orchard Mesa Sanitation District (“OMSD”), Mesa County
(“County”) and the City of Grand Junction (“City”).
The two districts may be referred to jointly in this agreement as
the “Districts.”
(2004 Intergovernmental Agreement (MCA 2004-028))
(a) On November 4, 1970, CGVSD entered into an agreement (“CGVSD
agreement”) for the construction of sanitary sewer lines within
the boundaries of that District and for the treatment of such effluent
by the City of Grand Junction. The CGVSD agreement has been modified
on several occasions.
(b) On November 19, 1975, OMSD entered into an agreement (“OMSD
agreement”) for the construction of sanitary sewer lines within
the boundaries of that District and for the treatment of such effluent
by the City of Grand Junction. The OMSD agreement has been modified
on several occasions.
(c) The parties now desire to enter into this new intergovernmental agreement
which will (except as otherwise specifically provided herein) supersede
the CGVSD agreement, as modified, and the OMSD agreement, as modified.
This intergovernmental agreement will govern the relationship of the
parties from and after the effective date of this agreement.
Now, therefore, in consideration of the recitals above and the
covenants below, the parties agree as follows in this chapter.
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(2004 Intergovernmental Agreement (MCA 2004-028))
The City and Mesa County have entered into a joint policy making
agreement for the Persigo sewer system signed October 13, 1998 (“Persigo
agreement”). The parties acknowledge that the Persigo agreement
controls the relationship between the City and the County regarding
the operation, management and control of the Persigo sewer system
as that system is defined in the Persigo agreement. Nothing in this
intergovernmental agreement is intended to modify or supersede the
Persigo agreement and if a conflict exists, then the provisions of
the Persigo agreement will prevail.
(2004 Intergovernmental Agreement (MCA 2004-028) § 1)
CGVSD has constructed and currently owns, operates and maintains approximately 95 miles of lines, most of which are located within its boundaries. In addition to all lines within its boundaries, CGVSD owns discharge lines that carry effluent from the District to City lines. Those discharge lines are commonly referred to as the 29 Road and the 29 3/8 Road lines. CGVSD currently serves several out-of-District customers through a verbal understanding with Fruitvale Sanitation District. In addition, certain properties in WestPark Subdivision and Eastbury Subdivision are within the CGVSD boundaries but are serviced by Fruitvale Sanitation District. All properties within the District boundaries are also within the Persigo system 201 service area (“201 service area”). Except as otherwise provided herein and by the terms of the total service agreement (“TSA”), Chapter
45.16 GJMC, which is incorporated herein by this reference, CGVSD will continue to own, operate and maintain all of its current lines and will own any lines that are constructed in the future by the District, whether located within or outside of the District boundaries. All such lines and any facilities attached to or used in connection with such lines (including lift stations) are referred to in this agreement as the “CGVSD lines.”
(2004 Intergovernmental Agreement (MCA 2004-028) § 2)
OMSD has constructed and currently owns, operates and maintains
approximately 46 miles of lines, most of which are located within
its boundaries. In addition to all lines within its boundaries, OMSD
owns the B Road Line which services the Valle Vista subdivision and
certain other properties between that subdivision and the District
boundaries. The District also owns certain major lateral lines that
carry effluent from the District and discharge the effluent to City
lines. All properties serviced by OMSD are also within the 201 service
area. Except as otherwise provided for herein or by the terms of the
TSA, OMSD will continue to own, operate and maintain all of its current
lines and will own any lines which are constructed in the future by
the District and which connect to OMSD lines or which are located
within the OMSD boundaries. All such lines and any facilities attached
to or used in connection with such lines (including lift stations)
are referred to in this agreement as the “OMSD lines.”
(2004 Intergovernmental Agreement (MCA 2004-028) § 3)
OMSD is responsible for the proper construction and maintenance
of all of the OMSD lines and CGVSD is responsible for the proper construction
and maintenance of all of the CGVSD lines. All such construction shall
comply with all rules and regulations of each respective District
and with all local, County and State laws and regulations. In addition,
such construction shall at a minimum meet the standard construction
specifications as adopted from time to time by the City. The Districts’
standards may exceed those of the City.
(2004 Intergovernmental Agreement (MCA 2004-028) § 4)
All sanitary sewer lines, and any facilities attached to or
used in connection with such lines (including lift stations) which
are not CGVSD lines or OMSD lines (and excluding any lines which belong
to the Fruitvale Sanitation District) will be referred to in this
agreement as the “City lines.” The Districts acknowledge
that they do not have any ownership interest in such City lines and
the City lines are under the control of the City, either by virtue
of actual ownership or by virtue of agreements with other parties.
The City is responsible for the maintenance of the City lines.
(2004 Intergovernmental Agreement (MCA 2004-028) § 5)
The Districts will continue to discharge their effluent into
the City lines at the currently existing locations. If additional
discharge points are required in the future, then the City will negotiate
with the respective District regarding the terms and locations of
such additional discharge points. In addition, the City will continue
to treat all District effluent at the Persigo plant.
(2004 Intergovernmental Agreement (MCA 2004-028) § 6)
All rates for treatment and for maintenance and operation of
all parts of the Persigo system, except for the OMSD lines and the
CGVSD lines, shall be established pursuant to the Persigo agreement
and shall be assessed uniformly to all users of the Persigo system,
including District users (“Persigo rate”). Effective as
of January 1, 2004, and as of the date of the signing of this agreement,
the Persigo rate is $13.23 each month for one EQU. For purposes of
determining the charges to be paid by the Districts’ customers,
the Persigo rate shall be reduced by 27.2 percent for all District
customers; this number will be referred to as the “District
rate.” The District rate as of the date of the signing of this
agreement is $9.63 for one EQU. “EQU” is defined by the
City’s code. When the City changes the Persigo rate from time
to time, the District rate shall be adjusted to continue to be equal
to 72.8 percent of the Persigo rate.
(2004 Intergovernmental Agreement (MCA 2004-028) § 7)
In addition to the District rate, each District may assess or
charge such additional amounts to its customers as may be determined
from time to time by the Board of each District; provided, however,
from and after the date of this agreement each District shall assess
or charge monthly service fees to its customers (including the District
rate) which equals or exceeds the Persigo rate. Each District may
establish its own procedures for setting rates, fees, tolls and charges
to be assessed against its customers for services. In addition, each
District may incur such debt, enter into such contracts and establish
such ad valorem taxes as each Board may determine is needed or proper
for the administration of its services.
(2004 Intergovernmental Agreement (MCA 2004-028) § 8)
(a) In addition to the Persigo rate, the City, pursuant to the Persigo
agreement, shall continue to assess to and require the payment of
a plant investment fee (“PIF”) to each new tap into the
Persigo system. This PIF shall be charged by each District for new
taps into the District system. Such PIF shall be uniform throughout
the Persigo system and shall be paid at the time of physical connection
to either the Districts’ systems or the Persigo system (“tap”).
In addition to the City PIF, each District may establish its own tap
fee or system development charge in such amounts and payable under
such terms as determined by each District’s respective Board.
All such fees or system development charges assessed by the Districts
shall be retained by the respective District and shall be used in
accordance with the rules and regulations of such District.
(b) Each District shall require that each new customer of such District,
and with respect to each new tap into the District’s or the
Persigo system, shall pay to and be assessed by the City the then
current PIF, in addition to any other lawful charges assessed or charged
by the City as manager of the Persigo system.
(2004 Intergovernmental Agreement (MCA 2004-028) § 9)
(a) Except as provided in the TSA, each District shall be responsible
for the operation, maintenance and control of its respective lines.
Each District shall monitor its lines to locate areas of inflow and/or
infiltration (“I & I”) into the respective District
lines and shall take such steps and make such capital expenditures
as are reasonably required to reduce such I & I. All costs
for the operation, maintenance and capital expenditures of the District
lines will be paid by the respective District, except as provided
in the TSA.
(b) In addition, each District shall police its own lines to minimize
the discharge of substances which may be detrimental to the treatment
process employed at the Persigo plant, including oils, acids or other
such materials. Each District shall continue to enforce and abide
by the City’s and U.S. E.P.A.’s pretreatment rules and
regulations. The City may perform such inspections of the District
lines as it deems appropriate to fulfill its duties and responsibilities,
including identification and location of any source of any illegal
or other discharges into the Persigo system that could cause an “upset”
or which violates any permit or other City requirement.
(2004 Intergovernmental Agreement (MCA 2004-028) § 10)
(a) The Districts shall continue to delegate to the City, and the City
hereby accepts such continued delegation, the administrative, managerial
and enforcement authority concerning pretreatment programs as applied
to industrial and other users of the Persigo system. The City shall
continue to act as the agent for each District in pretreatment matters
to the extent necessary to allow regulatory and health-related control
by the City over industrial and nonresidential users within each respective
District. It is the intent of the parties that the City shall continue
to exercise such pretreatment authority throughout the Persigo sewer
system as may be reasonably required to comply with all federal and
State grant and discharge permit requirements applicable to the Persigo
sewer system.
(b) As the manager of the Persigo system, the City agrees to hold the
Districts harmless from any and all liability whatsoever which may
result either directly or indirectly from the City’s acts or
omissions arising from or related to the administrative, managerial
or enforcement authority concerning pretreatment programs.
(c) The City may pay any costs, expenses, penalties or fines, whether
administrative or otherwise, from the revenues and assets of the Persigo
system without having to adjust for revenues or assets derived directly
or indirectly from the Districts.
(2004 Intergovernmental Agreement (MCA 2004-028) § 11)
The City shall continue to collect the District rate from the
District customers. The parties have determined that a portion of
the District rate that is collected by the City should be returned
to each respective District under the following provisions:
(a) Unrestricted Capital Funds.
In each fiscal year for
the City, beginning in 2004, the City shall propose a budget item
to the City Council and Board of County Commissioners (acting jointly
as “co-owners”) in the amount of $154,070 which shall
be referred to as the “unrestricted capital funds.”
(1) Of said $154,070, on or before March 1st of each calendar year, beginning
with the 2004 calendar year, and through the 2012 calendar year, the
City will pay to CGVSD the sum of $110,670.
(2) Similarly, on or before March 1st of each calendar year, beginning
with the 2004 calendar year, and finishing on or before March 1, 2015,
the City will pay to OMSD the sum of $43,400.
(3) The Districts will be entitled to rely on the amount of such distributions
in the preparation of their annual budgets, subject only to the final
appropriations decision of the co-owners of the Persigo system.
(4) Unrestricted capital funds shall only be used for repairs to existing
capital systems or for capital improvements of the respective District
lines. Permissible capital improvements shall not include the construction
of new line extensions that shall continue to be solely funded by
developers under each District’s rules and regulations that
exist as of the date of this agreement.
(5) If unrestricted capital funds are not spent within the two calendar
years following the year of distribution, the City may withhold the
future distribution of unrestricted capital funds until such time
as the City is assured that previously distributed unrestricted capital
funds have been used only in accordance with this section and as otherwise
provided in this agreement.
(b) Restricted Capital Funds.
In addition to the unrestricted capital funds, in each City fiscal year beginning in 2004, the City shall propose a budget item to the co-owners in the amount of $200,930 (referred to as the “restricted capital funds”), which, if approved, shall be distributed to the Districts as described in this subsection
(b).
(1) CGVSD shall receive an amount not to exceed $144,330 annually to
be paid on or before March 1st beginning on or before March 1, 2004,
and continuing through March 1, 2012.
(2) Similarly, OMSD shall be entitled to receive an amount not to exceed
$56,600 annually to be paid on or before March 1st beginning on or
before March 1, 2004, and continuing through March 1, 2012.
(3) In order to receive such annual restricted capital funds, each District
hereby warrants and promises to expend the funds only on capital improvements
to the existing District lines or in the construction of new or replacement
collector lines that are not funded by developers under the line extension
policy of each District as such policies exist as of the date of this
agreement.
(4) In addition, each District shall match District funds dollar-for-dollar
with the restricted capital funds. The matching District funds shall
not include amounts received through the unrestricted capital fund
distributions.
(5) Each District shall submit to the City by August 1st of each year
(beginning in 2004) its plans for capital improvements to be funded
with the restricted capital funds. Such plans may be for any number
of future years. If the District plan includes capital improvements
as described in this agreement to increase capacity, replace aging
lines, construct new or replacement collector lines that are not funded
by developers, maintain or repair existing lines or to reduce or cure
inflow and infiltration, then the City shall disburse to such District
its share of the restricted capital funds up to the allocated amount.
(6) The District is not required to spend all of the restricted capital
funds in the year received; restricted capital funds may be accrued
for up to three years following the year of distribution for the funding
of capital projects.
(7) Such funds shall be accounted for separately in the District’s
accounting and records. The District will maintain and submit such
records as the City may reasonably require to reflect the proper use
or aggregation of such funds. If upon the eventual dissolution of
each District (as described below) any funds remain in the restricted
capital fund account, then any plan of dissolution shall show a return
to the City of such unused funds unless the City otherwise consents
in writing to the funds being used for capital improvements.
(2004 Intergovernmental Agreement (MCA 2004-028) § 12)
The provisions of this section shall apply only to CGVSD.
(a) Customer Billing.
The City shall continue to bill all
District customers on a monthly basis. Included in the billing is
the monthly District rate and the additional District charges. The
District shall continue to be responsible for the collection of all
delinquent accounts. The City shall continue to provide to the District
on a monthly basis information on delinquent accounts.
(b) Emergency Call Outs.
The District and the City currently
have a separate agreement for emergency call out services. The terms
of that separate agreement shall remain in effect and may be modified
from time to time as provided in that agreement.
(c) Line Cleaning.
The District is responsible for cleaning
and televising its own lines and for paying the costs thereof.
(2004 Intergovernmental Agreement (MCA 2004-028) § 13)
The provisions of this section shall apply only to OMSD.
(a) Customer Billing.
The District shall continue to be
responsible for billing its customers for all monthly sewer charges,
including District rate charges and City rate charges.
(1) The City shall continue to send to the District a single bill for
all sewer charges payable to the City for customers serviced by the
District based on the City’s standard EQU calculation. The bill
is to be received by the District by the fifteenth of each month and
the District shall pay the bill to the City by the last business day
of each month. If not paid by the last business day of the month,
the bill shall be delinquent and shall accrue interest at the rate
of nine percent per annum until paid. It will be the sole responsibility
of the District to bill its customers.
(2) The City shall not send bills to any of the individual customers
of the District, except for industrial and similar nonresidential
pretreatment charges. If there are any customers within the District
that require pretreatment, all pretreatment charges shall be billed
separately by the City.
(3) The amount to be billed and collected by OMSD for its single-family
customers shall be the District rate less eight percent, which represents
the savings to the City in customer billing costs. OMSD customers
other than single-family residents shall continue to be charged at
the District rate for such customers less the per customer reduction
for the billing charge at the rate calculated for single-family residents.
The reduction effective January 1, 2004, is $0.77.
(b) Customer List.
At least once each calendar year, the
District shall provide to the City, at no cost to the City, the District’s
current customer and address list.
(c) New Connects and Disconnects.
Each month the District
will provide to the City a list of new connects and disconnects.
(d) Emergency Call Outs.
The District and the City currently
have a separate agreement for emergency call out services. The terms
of that separate agreement shall remain in effect and may be modified
from time to time as provided in that agreement.
(e) Line Cleaning.
The District is responsible for cleaning
and televising its own lines and for paying the costs thereof.
(f) District System Expansion.
(1) All of the area serviced by OMSD is within the 201 service area.
No future amendment of the 201 boundary on Orchard Mesa between 30
Road and 32 Road shall be permitted without the express approval of
the City, the County and OMSD.
(2) The District shall not allow the connection to any District line
or any City line with regard to any property on Orchard Mesa east
of 30 Road except those properties the owner of which holds a paper
tap issued by the District in exchange for granting easements for
the construction of the Valle Vista line extension; each of such properties
is listed by parcel number on Exhibit “B” at the end of
this section.
(3) Prior to construction, the District shall submit to the City all
plans for extensions or enlargements of any District line for engineering
review and to determine if the terms of this agreement, and the Persigo
agreement, are being complied with. If the design meets City engineering
standards and applicable regulations and agreements, the City shall
approve the submittal within 10 City working days; if the City issues
its approval, no further concurrence from the City shall be required.
If the City does not respond to a submittal within said 10 working
days, concurrence shall be presumed.
Exhibit B
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Paper taps have been issued to the following properties. These
taps stay with the property. For parcel #2943-331-00-087, if this
property is divided into different parcels, then taps for up to four
parcels may be issued.
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# of Taps
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Address
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Parcel Number
|
Current Owner
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4
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155 31 Road
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2943-331-00-087
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Rooks
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1
|
3124 A1/2 Rd.
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2943-342-00-076
|
Peale
|
1
|
3130 A1/2 Rd
|
2943-342-00-104
|
Traudt
|
1
|
3094 C. Rd
|
2943-214-00-065
|
A & G Partnership LLP
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(2004 Intergovernmental Agreement (MCA 2004-028) § 14)
On or before the general election to be held in November of
2015, the Board of Directors of OMSD shall take such steps as are
required by statute to take to the voters of the District a plan and
proposal to dissolve the District.
(a) In preparation for such vote, the OMSD Board shall pass a resolution
endorsing such dissolution and shall recommend to its qualified electors
that the plan be adopted and that the electors vote in favor of the
dissolution.
(b) The District’s plan of dissolution shall call for the transfer
of all District lines and sewer related assets (including sewer lines,
lift stations, taps, fittings, records, video tapes, easements and
rights-of-way) to the City of Grand Junction, Colorado, for the benefit
of the Persigo 201 sewer system, free and clear of any liens or encumbrances,
and without cost or expense to the City.
(c) The plan shall call for the final dissolution of the District and
the transfer of all District lines and the District’s sewer
related assets to the City within one year of the date of the election.
(d) If the election is unsuccessful, the TSA, Chapter 45.2 GJMC, shall
become effective as of the following June 1st. In addition, the Board
shall forthwith after the November 2015 election ratify and approve
the TSA, without changes.
(e) The conduct of the affairs of the District from and after the failure
of the election shall be consistent with the intent of the parties
to transfer effective control to the City, as provided in the TSA.
(f) In any plan of dissolution to be voted upon by the qualified electors
of the District, the plan shall provide for the distribution of cash
reserves under the following guidelines: the Board may elect to waive
all or part of the monthly sewer service charges to its customers
for a period of up to six months, and to use the cash reserves to
pay for all costs of the operation of the district (including payments
of the Persigo rate to the City). After completion of the dissolution,
any remaining cash reserves shall be accounted for separately by the
City and spent exclusively on capital improvements to the district
system.
(2004 Intergovernmental Agreement (MCA 2004-028) § 15)
On or before the general election to be held in November of
2012, the Board of Directors of CGVSD shall take such steps as are
required by statute to take to the voters of the District the Board’s
plan and proposal to dissolve the District.
(a) In preparation for such vote, the CGVSD Board shall pass a resolution
endorsing such dissolution and shall recommend to its qualified electors
that the plan be adopted and that the electors vote in favor of the
dissolution.
(b) The District’s plan of dissolution shall call for the transfer
of all District lines and sewer related assets (including sewer lines,
lift stations, taps, fittings, records, video tapes, easements and
rights-of-way) to the City of Grand Junction, Colorado, for the benefit
of the Persigo 201 sewer system, free and clear of any liens or encumbrances,
and without cost or expense to the City.
(c) The plan shall call for the final dissolution of the District and
the transfer of all District lines and the District’s sewer
related assets to the City within six months of the date of the election
or when the TSA is effective, whichever is sooner.
(d) If the election is unsuccessful, the Directors shall again endorse and refer the question of dissolution to its voters within 25 months of the date of the first such vote. If the second election is also unsuccessful, the TSA, Chapter
45.16 GJMC shall become effective as of the next June 1st. In addition, the Board shall forthwith ratify and approve the TSA.
(e) The conduct of the affairs of the District from and after the failure
of the second election shall be consistent with the intent of the
parties to transfer effective control to the City, as provided in
the TSA.
(f) In any plan of dissolution to be voted upon by the qualified electors
of the District, the plan shall provide for the distribution of cash
reserves under the following guidelines: the Board may elect to waive
all or part of the monthly sewer service charges to its customers
for a period of up to six months, and to use the cash reserves to
pay for all costs of the operation of the district (including payments
of the Persigo rate to the City). After completion of the dissolution,
any remaining cash reserves shall be accounted for separately by the
City and spent exclusively on capital improvements to the district
system.
(2004 Intergovernmental Agreement (MCA 2004-028) § 16)
No party shall be liable to any other party for any damages
for failure to deliver or receive sanitary sewer discharges if such
failure is due to war or civil strife, broken lines, accidents, fires,
strikes, lockouts or other such occurrences beyond the reasonable
control of such entity. Nothing in this agreement is intended to waive
any of the rights and privileges of the Colorado Governmental Immunity
Act.
(2004 Intergovernmental Agreement (MCA 2004-028) § 17)
This agreement shall continue with respect to each District
until the respective District is dissolved.
(2004 Intergovernmental Agreement (MCA 2004-028) § 18)
(a) This agreement may be enforced by either party through a suit for
specific performance or for damages or for both. The prevailing party
in any such proceeding may be awarded attorney fees and costs at the
discretion of the Court.
(b) Upon the giving of 30 days’ written notice and the failure
of the receiving party to comply with each and every term hereof,
or with other applicable laws or regulations, the party giving the
notice may terminate this agreement with a subsequent writing given
within 60 days of the initial notice. The remedy of termination is
cumulative to other remedies of the parties, including the remedies
described above.
(c) The failure of the City/County Joint Persigo Board to make the payments to each District as required herein shall be deemed a default and upon proper notice and right to cure as provided in subsection
(b) of this section, each District may elect to terminate this agreement.
(2004 Intergovernmental Agreement (MCA 2004-028) § 19)
The terms and provisions of the City’s code, the sewer
regulations, as both are amended from time to time, are incorporated
herein by this reference as though fully set forth herein.
(2004 Intergovernmental Agreement (MCA 2004-028) § 20)
This agreement shall become effective upon approval of the City
Council, the County Commissioners and the Boards of Directors of each
District.
(2004 Intergovernmental Agreement (MCA 2004-028) § 21)