HomeMy WebLinkAbout2006 Ordinance No. 023•
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ORDINANCE NO&-
SERIES OF W06
BY AUTHORITY
CONT,IAC:UIO. S'I-~
e-,J, ,'fi ,'t-ll-J.-).oe>I.
COUNCIL BILL NO . 7
INTRODUCED BY COUNCIL
MEMBER WOODWARD
AN ORDINANCE AUTHORIZING ENTERING AN INTERGOVERNMENTAL
AGREEMENT BETWEEN . :E SOUTH ARAPAHOE SANITATIOS DISTRICT.
SOUTHGATE SANITATIC I DISTRICT AND HIE CITY OF ENGLEWOOD
PERTAINING TO REIMBURSEMENT OF OVER CHARGED SANITATION FEES BY
SOUTH ARAPAHOE SANITATION DISTRICT TO THE SOUTHGATE SANITATION
DISTRICT CUSTOMERS.
WHEREAS. the City of Englewood Utilities Dcpanmcnt hns : -~ncc tor agreements with
the South Arapahoe Sanitation District and Southgate Sanitation il ;1 trk t: and
WHEREAS , as pan of tho se agreements the City bills cu Sl•J ,n<rs for the Districts' annual
maintenance fees along with the City's treatment fees and remitfi the ma intenance fees to
the Districts: and
WHEREAS, several house s on the border between the districts r . ...-c 111correctly designated
and billed for South Arapahoe Sanitation Dictrict fees instead of the Southgate Sanitation
Di strict fees: and
WHEREAS , the City of Englewood. South Arapahoe Sanitation Di strict and So •. ,,gate
Sanitation District have reached an agreement whereby the chnrges collected for South
Arapahoe Sanitation District are to be refunded by South Arapahoe Sanitation District to the
Southgate Sanitation District customers. with interest; and
WHEREAS, South Arapahoe Sanitation District will depo sit the funds with the City and
ttlt· City, PS the billing pany. will administer the refund process :
NOW . THEREFORE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
ENG LEWOOD . COLORADO. AS FOLLl)WS :
~.J. The City Co uncil of the City r~ Englewood. Colorado hereby authorizes
entering in to an Intergovernmental Agreemc 11t between the South Arapahoe Sanitation
District, Southgate Sanitation District and the City of Englewood pe ,o,ining to the
reimbursement of over charged Sanitation Fees by South Arapahoe Sanitation Di strict to the
Southgate Sanitation District customers. attached hereto as Attachment I. a copy of Exhibit
A to the i\greement is available in the Office of the Englewood City Clerk.
~-The Mayor is authorized to execute and the City Clerk to attest and seal the
Intergovernmental Agret,nent for and on behalf of the City of Englewood. Colorado.
Introduced . read in full. and passed on first reading on the 19th ~ay of June. 2006 .
9 b I
Published as a Bill for an Ordinance on the 23 rd day of June. 2006 .
Read by title and passed on final reading on the 10th day of Jul y. 2006 .
Published by title as Ordinance N~. Series of 2 6, on the 14th day of July. 2006.
I, Louc rishia A. Ellis, City Clerk of the City of Englewood, Colorado , hereby certify that
!he above and foregoing is,'tJrUe copy of 1he Ordinance passed on final reading and published
by 1i1le as Ordinance No~ Se ries of 2006.
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AGREEMENT
THIS AGREEMENT entered into with an effective date of April 17, 2006, by and
between the SOUTH ARAPAHOE SANITATION DISTRICT, a Colorado special district
(hereinafter "SASD"), the CITY OF ENGLEWOOD, a Colorado municipal corporation
(hereinafter the "City"), and SOUTHGATE SANITATION DISTRICT, a Colorado special
district (hereinafter "Southgate") (collectively, the "Parties").
WITNESSETH:
WHEREAS , SASD and the City have an arrangement whereby the City bills and collects
SASD annual customer service charges , and remits the collected amounts to SASD at specified
times throughout the year; and
WHEREAS, the City has , from the years 1994 through 2005 , inclusive , inadvertently
collected SAS!) se1vice charges from the residential properties listed on the attached Exhibit A
(the "Properties"; which are not located within SASD's boundaries , and are in fact located
within the Southgate Sanitation District ("Southgate"); and
WHERE '.-1.S, the City has a simil ar arrangement for the billing and collection of
Southgate's annual service charges, and has not billed or collected the Southgate charges from
the Properties; and
WHEREAS, Southgate's annual serv.ice charge is considerably less that SASD 's service
charge because SASD does not have an ad valorem tax and reli es on tl1e service charge for its
operating revenue, with the result that the owners of the Properties have been substa1tially
overcharged for sewer services during the time above-referenced; and
WHEREAS, the Parties wish to resolve this matter so that a) the owners of the Properties
are refunded the amounts overcharged, b) Southgate is reimbursed for its uncollected service
charges from the Properties, and c) any remaining funds are utilized for the benefit of customers
of Southgate; and
WHEREAS, SASD has calculated the amount of the refund due the owners of each of
the Properties and lo Southgate, and in total, including interest based upon the rates earned by
SASD on the overcharges during tl1e times in question, which amounts are also included in the
attached Exhibit A; and
WHEREAS, the City and Southgate have reviewed Exhibit A and consulted their own
records and agree that SASD's calculations are accurate and based upon appropriate assumptions
and principles.
NOW, THEREFORE, in consideration of the facts set forth above and the mutual
covenants, terms, and conditions set forth below, the Parties to this Agreement agree as follows:
r age I of 5
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I . SASD to Pay Southgate: SASD has delivered a check to Southgate on or about
April I R, 2006, in the amount of four thousand, eight hundred fifty-eight and ninety-seven one-•
hundredths dollars ($4,858.97) in full and final settlement of all amounts due SouL'1gate in
connection with this matter .
2. SASD to Deposit Funds: SASD has delivered a check to the City on or about
April 18, 2006, in the amount offifty-one thousand , five hundred fifty-seven and twenty-one one
hundredths dollars ($5 1,557.2 1), representing the total amount to be refunded to the owners of
the Properties, including interest thereon thr ough April 17, 2006 (the "Funds"}, in tru st, to be
disbursed by the City in accordance with the terms hereof.
3. City to Implement Reimbursement: Subj_cct to the terms and conditions set
forth in this Agreement, the City shall, at its own sole cost and expense, implement an d
admini ste r all aspects of the disbursement of the Funds to the owners of the Properties. Sue :,
implementation and administration shall include without limitation the following duties and
tasks:
a. Detem1ination of the correct allocation of the refund due for each of the
Properties among the current and former owners thereof.
b. Individual , dire ct notifi cation to all current and past owners of any of the
Properties at the last known servi ce and/or billing address of each owner within the time period
set forth above that the Funds are availa ble and the procedure and requirements to obtain
reimbursement , including approp riate proof of ownership and the initial date of own ership . TI1e •
City shall have no obligation to search for or otherwise determ ine the current maili 1g ,1d dre , .. of
any former owner of any of the Properties.
c. Publi cation of such notice by any reasonable means . It is agreed that
publicatio n wi ll be the only means of notification of former owners of any of the Properties,
other than mailing to the last known address as above provided.
d. Detennin at ion of an appropriate reimburs ement protocol, including
without limitation pro vision for obtaining a release of claiins for the protection of the City an d
SASD prior to the iss uance of any check or other di~burseinen t of any' Funds. Such protocol
shall be su bmit!, ,; to and approved by SASD and Southgate prior to implementation.
e. Disbursement of Funds in accordance with the approved protocol.
f. Maint enance of accounts showing the disposition of the Funds, and
reporting the status of the accounts to SASD and Southgate no less often than monthly .
g. Keeping SASD and Southgate apprised of any issues and concerns that
arise during the implementation of the reimbursement protoco l, or in connection with the City's
duties hereunder.
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4 . Additional Interest: Immediately upon receipt of the Funds, the City shall
deposit and hold the Funds in an interest-bearing account and a proportionate share of the
interest earned thereon shall be added to the amount of each reimbursement check paid pursuant
to this Agreement, as of the date of such check.
5. Termination of Reimbursement Program and Disposition of Undistributed
Funds: The City shall hold the Funds and reimburse eligible parties pursuant to the approved
reimbursement protocol until a date one year from the date of publication of notice as provided
in subsection 3 .c. above, after which time the City shall tum over any remaining funds to the
State of Colorado in accor,•·~ce with the provisions of the Unclaimed Property Act, C.R.S. § 38-
13-101, el seq.
6 . Enforcement/Remedies/Venue: The terms and conditions of this Agreement
may be enfo rced through judicial action brought in a col'rt of competent jurisdiction. Available
remedies include specific performance, although the respective Parties each expressly waive any
right to consequential, exemplary or punitive damages against the other f..,"!ies individually and
collectively. The prevailing party to any judicial action brought shall be entitled to recover
reasonable attorney's fees and court costs from the other party. Venue for any judicial action
shall be exclusively in District Court for Arapahoe County, Colorado .
7 . Settlement of Claims: Through the Parties' performance of the tenns set forth
herein, ail claims any Party may have against any other PRrty with respect to the overcharge of
the Properties and the failure to collect and remit Southgate's sewer charge are hereby stipulated
to be settled, and eaci Party ag rees hereby to release, acquit, and forever discharge any and all
such claims upon full and faithful perfonnance of the terms of this Agreement.
8. Parties' Liabilities : Nothing in this Agreement shall be construed or interpreted
as a waiver of any provision of the Colorado Governmental Immunity Act, sections 24-10-101 el
se q., of the Colorado Revised Statutes.
9 . Integration; Amendments: 111is Agreement is intended as ti1e complete
integration of all understandings between the Parties . No prior or contemporaneous addition,
deletion or other amendment hereto shall have any force or effect whatsoever, unless embodied
herein in writing. 1'!o subsequent addition, deletion, or other amendment hereto shall have any
force or effect unless embodied in a written arnendatory agreement executed by the Parties.
10 . Third-Pnrty Beneficiary : It is the intent of the Parties that no third party
beneficiary interest is created in this Agreeme1 ,t ..n d specifically that no former or current owner
of any of the Prop erties shall have standing to enforce this Agreement.
11. Financial Obligations: Notwiti1sta11ding the fact that the City's perfo rmance
obligations will persist through more than one fiscal year, all of the costs except incidental
bookkeeping and administrative costs are anticipated to be complete within 20 06. This
Agreement is not intended to create a multiple-fiscal year direct or indirect debt or fi nancial
obligation of any Party .
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12 . No Personal Liability : No elected official, director, officer, agent or employe e •
of the City nor any elected official , director, officer, or agent of SASD or Southgate shall be
charged personally or held contractually liable by or tc any other party under any term or
provision of this Agreement or because of any breach thereof or because of its or their execution,
approval or attempted execution of this Agreement.
13 . Pnragraph Headings : The paragraph headings are inserted herein only as a
matter of convenience and for reference and in no way arc intended to be a part of this
Agreement or to define, limit or describe the scope or intent of this Agreement or the particular
paragraphs hereof to which they refer .
14 . Legal Authority : The persons signing and executing this Agreement on behalfof
each oithe Parties, do hereby state and affirm that they have been fully lluthorized to execute this
Agreemcn: on behalf of the Party they represent, and to validly and legally bind the Party they
represent, to all the terms, performances, and provisions herein set forth .
15. Counterparts: This Agreement may be executed in three (3) counterparts, each
of which shall be deemed to be an original, but all of which shall together constitute one and the
same document.
(The remainder of the page deliberately left blank. Signature block starts on next page.)
Paae 4 of S
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IN WITNESS WHEREOF, each of the Parties has executed this Agreement to be
effective on the date above written.
ATTEST:
Paul Schwarzweller
Title : Secretary
ATTJJ:ST:
By : _________ _
CityClerk ".'. Loucrishia A. Ellis
ATTEST:
Title :
G:SASD :060206-SASD ilNG IGA
SOUTH ARAPAHOE
SANITATION DISTRICT
By : ________ _
Steven Daldegan
P,esident, Board of Directors
CITY OF ENGLEWOOD
By : _________ _
Mayor -Olga Wolosyn
SOUTHGATE
SANITATION DISTRICT
By : _________ _
President, Board of Directors
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COUNCIL COMMUNICATION
Date:
June 19, 2006
Initiated By :
I Agenda Item:
11 a i
Utilities Depar tment
I Subject:
Southgate/$. Arapahoe Ag reement for Reimbursement
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Staff Source :
Ste wa rt Fonda, Directo r of Utilities
COUNCIL GOAL AND PREVIOUS COUNCIL ACTION
None.
RECOMMENDED ACTION
The Engl ewood Water and Sewe r Boa rd , at th ei r April 11 , 2006 m eet ing, recommended Council
approval of th e Agreement for Reimburs ement of So uthgate Property Owners.
BACKGROUND, ANALYSIS, AND ALTERNATIVES IDENTIFIED
In the early 1990's a cle ri ca l error ca us ed 82 acr ·•.mis that were in Southgate to be coded as being
in the South Arapahoe Sanitation District. As a ,. ,ult, So uthgate residents incmred the South
Arapahoe Sanitation District's mainten ance c harge s, w hich we re substantially higher than
Sou thgate', charges .
Th is si tu ation was discovered w hen a ho meowner observed th at his property ta x notice listed his
resid ence in Southgate, but Englewood's bill stated he was in the South Arapa hoe Sanitati on
District. He call ed Englewood and brought it to the attenti on o f the Utilities D epartment.
The Utilities D epa rtm ent reviewed all th e accounts 111 the affected subdivision to in sure that the
codes are correct. N o ti ces w ith instruc ti o ns w ill be se nt to th e affected property residents o n
obtaining refu nds .
FINANCIAL IMPACT
It is tl,e goa l of all involved parties to resolve this matter so the owner/res id ents of th e properties
are refunded the ove rc harge amounts and Sou th ga te Sanitation D istrict is reimbursed for its
un coll ected service cha rg es. After D ece mber 2007, any remaini ng unclaimed funds w ill b e utilized
fu r the benefit of So uthgate customers.
The South Arapahoe Sanitation District has ca lculated the amount of the refunds due the owners of
the prope;ties, includin g in te rest rates based on rates earned by South Arapahoe during the time
period. Th e City of Englewood, So uth ga te and So uth A rapahoe have consu lted their records and all
concur with the amoLnts noted.
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LIST OF ATTACHMENTS • Agreement
Bill for Ord inance
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