HomeMy WebLinkAbout2003 Ordinance No. 018•
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ORDINANCE NO. JL
SE RIES OF 2003
BY AU THORITY
CONTRACT NO, Cj-.,1oo3, 0 b iii
COUNC IL BILL NO . 11
INTRODUC ED BY COUNC IL
MEMBER GARRETT
AN ORDINANCE APPROVING AN INTERGOVERNMENTAL AGREEMENT BETWEEN
THE CITY OF ENGLEWOOD , CO LORAD O, AND CEN TENN IAL WATER DISTRI CT FOR
LEASE OF ENG LEWOOD 'S SURPLUS WATER .
WHEREAS, Englewood and Centennial Water Di stric t have had a "Water Supply and
Facilitie s Agree ment" since 1980 by which the City has leased raw water to Centennial; and
WHEREAS , there is a need to create a new agreement to reflect change s in cond itions
and to cl arify the duties and benefits of th e parties , as well as the amount and price of water
whi ch the City of Englewood will supply to Centennial.
NO W, THEREFORE , BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF ENGLEW OOD , COLORADO , THAT:
Section I. City Council of the City ofEnglewood, Co lorado, hereb y adopt , the
lntergoverrunental Agreement with Centennial Water Di strict, which Agreement is on fil e wi th
the Englewood City Clerk.
Section 2, The Mayor and City Clerk are here by authori zed to sign and atte st said
Agree ment for and on behalf of th e City of Engl ewood, Colorado.
Introduced , re ad in full , and pass ed on fir st reading on the 18~ day ofFebru ary, 2003.
Published as a Bill for an Ordinance on the 21" day of February, 2003.
Re ad by title and passed on fin al readin g on th e 3"' day of March , 2003.
Published by title as Ordinance No . __/J:_, Series of 2003 .
I, Loucri shia A. Ellis, City Clerk of the City of Englewood , Colorado , hereby certify that
th e above and foregoingH tru e copy of the Ordinance passed on fi reading and publi shed by
title as Ordinance No . .fJl_, Series of 2003.
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WATER St.:PPL Y AND FACILITIES AGREEMENT
TABLE OF CONTENTS
l. Re ci 1als
2. Pri or Agree ments Rev oke d
3. Sale and Purchase of Water
3.1 Sale and Purchase
3.2 Defini1ion of Surplus Water
3.3 No Englew oo d Obligation to Change Water Right s or Construct Facilities
4. Availability of Surp lus Waler; Compliance With Chaner; Right to Settle Litiga tion
4.1 Ava ilabili1y of Surplus Water
4.2 Englewood Chaner
4.3 Englewood 's Right to Settle Litigation
5 Englew ood to Make Good Faith Effons to Suppl y Surplus Water
6. Non -liabilit y of Engl ewood for Monetary Damag es: No Quali ty Warranly
7. Areas to be Served
7.1 Cen1ennial Serv ice Area
7.2 No Vio lation of Englewood Decrees
7.3 No Liability 10 Third Panic s Within Centen nial Service Area
7.4 No Li abilily Ou ts ide Centenn ial Service Area
8. Pric ing of Water
8.1 Introduction to Pricing of Wa1er
8.2 Definition ofTerrns
8.3
8.-1
8.2.I Offered Wate r
8.2.2 De live red Wa1er
8.2.3 Obli ga1ed Water
8.2.4 Untake n Water
8.2.5 Contract Wa1er
8.2.6 Annual Cont ract Wa1er
8.2.7 Thres hold
8.2.8 Ten-Ye ar ,.\\'erage
All oca1io n of Surp lus Water 10 Ca1 ego rie s
Calcu la11on ofThresho ld During Threshold Init iat ion Peri od
8.-1 .1 Cal cu la1i on or'Thre sho ld
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8.4 .2 Refund of Pa yments During the Thre shold Ini ti atio n Period
8.5 Cal cul ati on of Thre shold Afte r Thre shold In iti ation Period
8.5 .1 Definiti on of Addit io na l Terms
8.5.2 Calc ul atio n of the Thre shold
8.5.3 No Change in Thresh old
8.5.4 Re ducti on in Threshold
8.5 .5 In crease in Thre shold
8.6 Single -'s e Wate r and Reusaole Water
8.7 Purchase Price for Water
8.7 .1 Hi gh-Priced Water
8.7.2 Medi um-Pri ced Water
8.7.3 Low-Pric ed Water
8.7.4 Reuse Ri ghts
8.8 Example Calculation
9. Centennial Payment Obl igations
9.1 Pay ment for Obliga ted Water
9.1.1 Mo nthl y Limits on Amounts of Obligated Water
9.1.2 Deli very Rate Limit s
9.2 Pa yment for No n-Obligated Wa ter
JO . Place and Measu rem ent of Deli veries ; Pumping Costs: Notification
IO . 1 Place of Del ivery and Mea suremen t
10 .2 Pumping Co sts
10.2.1 City Dit ch Pump Stati on
I 0 .2.2 Sou th Pla ne Reser vo ir Pump Stati on
10 .3 Notifica tio n by Engle wood of Amo unts Ava ila ble for Delivery, Response by
Cen tenni al
10.3 .1 Operationa l No tice
10 .3.2 Pl annin g No tice
I I. Measu reme nt Devices, Recordkeeping , Billing and Payment
I I.I Centennia l Measurement De vices and Re co rdk eepi rg
11.2 Engle wood Measurement De vices and Re co rdkeeping
11.3 Annual Acco unting and Calculations
11.4 Reco nciliatio n, Billing and Pa yme nt
12 . Amendment s to 1977 Ranch Creek Lea se
13 . Ph ys ical Facili ti es Lease
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13. l Grant of Lease
13.2 En gle woo d Phys ical Facili ties in Wh ich Ca pa c1t} ls Leased 10 Cente nni al: Us e of
Same
l 3.3 McLellan Re servoir
13.3 . l Determination of Capaci ty of McLel lan Reservo ir
13.3.2 No Reduc tio n in Payment Due 10 Siltatio n
13.3 .3 Remo va l of Silt , or other Reswra tio n of Capacity, Performed by En gle woo d
13.3 .4 Remo va l of Si lt by Centennial
13.3 .5 Redu ction in Storage Capacit y by Causes Othe r Than Siltation
13.3 .6 Drn inage fo r Opera ti ons or Repairs
13.3.7 Loss es fro m Seep ag e, Evaporatio n, Failure of Faciliti es and the Like
13.3 .8 Storage By Either Pan y in Capacity of Other Pany
13.3 .9 Ad diti on of Substances 10 McLella n Reservoir
13.3 .9.I Coordination
13 .3.9 .2
l 3.3 .9.3
13 .3.9 .4
Permits
Recommended Prac ti ces
Fine s, Damages , Fees
13.3 .10 No Efflue nt Direc tl y Into Cit y Ditc h or Mc Lellan Re servoi r
13.3.11 Rec ords. Accou nt ing
13 .3.12 Le ase Pa yment fo r Use of Mc Lei Ian Re servoi r Ca pac ity
13.4 Cit y Dit ch Facil ities
13.4 .l Determination of Ca pacity
13.4.2 Exis ting Ci ty Ditch Agreements wit h Third Panics
13.4.3 Pri orit y 10 Us e of Capacity in Cit y Dit ch Fac ilit ies
13.4.3.l City Dit ch Water Rights and Engl ewoo d Re versionary Capaci ty
13.4.3 .2
13.4 .3.3
13.4.3.4
13.4.3.5
Eng lewood's Boreas Pass No. 2 Ditch Water Right
1948 McLel lan Rese rvoir Storage Right
Pai d Del iveri es Wate r
Other Engle woo d Wate r Ri gh ts and Contract Water
13.4.3 .6 Ce nt en nial Water Righ ts and Contrac t Wate r
13.4.4 Engle woo d "io t 10 Make Add itional Transfers of Ca pac ity In Ci ty Ditch
Facilitie s
13.5 Neva da Ditch
13.5 .1 Nevada Di tch By La ws and Englewood Capac it y
13 .5 .2 Eng le woo d No t 10 Ma ke Addi11onal Transfers of Capacity In Ne vada Ditc h
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13.6 Engle woo d's Nevada Ditch Capacity Delivered a1 Ci 1y Ditch
13.7 Lea se Pay ment fo r Use ofCapaci1y in Ci1y Dit ch Facilities and in Neva da Di tch
13 .8 Payment of An nu al Operat io n and Maintenance CoSIS as Additional Lease
Paymen t
13 .8 .I Ci1 y Ditch Operation and Maintenance Co sts
13.8 .2 Ci 1y Dit ch Pump S1a 1io n and Pipel ine 10 Mclellan Res ervoir and Di sc harge
Fa cili tie s from Mclellan Re servoi r 10 1he South Pl ane Rive r Operation and
Maintena nc e Casi s
l 3.8.3 Ci1y Di1c h Pump S1a1i on Elec1ri cal Pumping Casis
13.8.4 Ne vad a Di1 ch
13.8.5 Bill ing and Pa yment
13.9 Control of Operati ons
13.10 Timel iness of Repai rs
14 . Ci rant of Eas ements to Cen ten nia l
14.l Speci fic In strument
14 .2 Loc ations
14 .3 Term and Type
14 .4 Purpo se and Scope
14 .5 Route Selection
1-1.6 Re aso nable Standards
14.7 Limitation on Obligation to Grant
14 .8 Limit atio n on Loc atio ns and Standards Selections
14 .9 En glewood Rel ocat ion and Re con st ruction
14 .10 Exclusi ons
15 . Engle wood's Op tio n to Pan icipa te in the Con st ruct io n and Us e of New Centennial
Faci litie s
15 . l No11fica ti ons
15.2 Des ign snd Eng lewood Pa 11ic ipa ti on
15.3 Eng le woo d Pay ment s
16 . Capi tol lmpro,ements 10 Ci ty Ditc h Faci li ties
16 .l Impro veme nts 10 City Di1ch and/or En gle wo od City Dit ch Pump S1a11 on
16 .2 Sepa rate New Facilities on Cit y Di tc h
17 . Capi tal Impro ,ement s 10 Ne vad a Di1ch Facilit ies
18. Adju s1men1 of Payme ni s
18.1 CP I Basis for Adju stm enis
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18.2 Approisal Ba si s for Adjustments
18.3 In stru ctio ns 10 Appraiser(s)
18.3 .1 Storage Capacity in Mcl..cllan Reservoir
18 .3 .2 High-Price~ Water
18.3 .3 Medium-Priced Water
I 8.3 .4 Low -Priced Water
18 .3.5 Reuse Rights
18.3 .6 Paid Deli veries Water
18 .3. 7 Lease of Facilities
19. Cen1enniol Righi of First Refusal 10 Purcha se Englewood Water Rights or Raw Water
Focilities
19 . I Engle woo d Raw Water Facilities
I 9.2 Procedures
20. Mutual Cooperation
21. Re version of Leased Water :o Englewood
22. Default and Remedies
23. :-,!otices
24. Ass ignment by Either Pony
25. Binding Effect
26. :--io Third Pany Beneficiaries
27. Ent ire Agreement
:!8. Modificotions in Writing
29 . Se verabili1y
30. App licoble Law
3 1. Headings an d ?lions for Conve ni ence
32. T m and Renew als of Agreement
32 .1 Term of Agreement
3c.2 Initial Term
3c .3 Renewal Options
31.-1 Procedures for Renewal
33 . Cvndem no.1ion
34. Coun1erpam
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LIST OF EXHIBITS
Exhibit A
Pa yments Due from Centennial 10 Engle wood
Exhi bit B
Outs ide City of Engle woo d Water Serv ic e Areas
Exhibit C
Centennia l Service Area
Exhibit D
Example Calculation
Exhibit E
Water Deli very Measurement Po ints
Ex hibit F
General Features
Exhibit G
1995 Engle wood/Cypru s/Denver Agreement Paragraph 3.3.5
Exhibit H
Englew oo d Ph ysica l Fa cilities in which Capaci1y is Leased to Centenn ia l
Exhibit I
Agreem ent betwee n Eng lewoo d and Denver dated October 3, 1995
Exhibi l J
Agreemen l be1wee n Den ver and Litt let on Cemetery As~ociation dated Ma y 23. 1933
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WATERSLl'PLY AND FACILITIES AGREEMENT
This Water Supply and Facilities Agreement ("Agreement") is made effective this I" da y
of January, 2003 , betw een the City of Engl ew ood, a municipal corporation under the laws of the
State of Colorado ("Englewood "), and Centennial Water and Sanitation District, a quasi-
municipal corporation under th e laws of the State of Col orado ("Centennial"),
I.I Englew, ·' and Mission Viejo Company, a California corporation
(''Mission") entered into an agreement dated November 3, 1980, entitled Water Supply
Agreement (Englewood-Highlands Ranch) ("Water Supply Agreement''). Mission's rights and
obligations under the Water Supply Agreement were subsequently transferred to Centennial . The
Water Supply Agreement, in general, provides for the sale of water by Englewood to Centennial ,
and various ancillary and related matters .
1.2 Englewood and Centennial are also parties to a Memorandum of
Understanding dated May 24 , 1990, a second Memorandum of Understanding dated June 7, 1990
and an Englewood-Centen ni al Temporary Agreement dated January 5, 1998 (collectively, with
the Water Supply Agreement, the "Frier Agreements"),
1.3 Englewood and Centennial desire to terminate the Prior Agreements, and
to enter into this Agreement for the sale of water by Englewood to Centennial, the leasing of a
portion of the capacity of certain Englewood water storage and delivery facilities to Centennial,
and various ancillary and related matters .
1.4 Englewood and Centennial are also parties to a Water Lease and
Management Agreement dated August 3, 1977 ("1977 Ranch Creek Lease") which was
originally entered into between Englewood and the City of Thornton . Thornton subsequently
assigned its interests thereil to Centennial. Englewood and Centennial desire to amend
paragraphs 21 and 22 of the 1977 Ranch Creek Lease .
NOW, THEREFORE, in consideration of !he premises and the mutual agreements and
covenants hereinafter contained, th e parties agree as foll ow s:
2. Prior Agreements Re voked . As of !he effective date, the Prior Agreements are
revoked, and are of no funhe r force or effect e.cept for any payments from Centennial to
Englewood which are presently due , which are listed on Exhibit A hereto, and except that there
are presentl y 348 ac re feet of water stored in the 15 .15 percent of the storage capacity of
McLell an Reservoir hereafter referred 10, which water belon gs to Centennial, and there are
presentl y O ac re-feet of water stored in such 15.J 5 percent, which water belongs to Englewood .
Englewood will with dra w its wa ter therefrom as promptly as practical, and if Centennial has
water which it can store in such I 5. I 5 perce nt prior to the wilhdrawal of the Englewood water,
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then lo the ex 1enl of s uch Centennial wa ter. the Eng lewood water shall be booked over to
Cen ten nial .
3. Sale and Purcha se of Water .
3.1 Sale and Purchase. Englewood agrees to se ll al l of its Surp lus Water to
Centennial , and Centennial agrees to purchase some or all of that wate r from Englewood, under
the te rms and co nditions set forth in this Agre ement. The term "Surplus Water" is defi ned in
paragraph 3.2 .
3.2 Definition of Sumlus Wate r. Surplus Water for purposes of th is
Agreement is that water availab le to Englewood under its decrees and contracts whic h, from time
to time, exceeds the amount necessary for the needs of (1) water users within the munici pal
boundaries of Englewood , including those res ul ting from lands annexed into the munic ipal
boundaries of Englewood after the date of thi s Agreement, (2) those persons, areas or entities
other than Centennial which are served by Englewood on the date hereof, which are descri bed on
Exhibit B hereto, and (3) those areas in the vicinity of Englewood's municipal boundaries to
whi ch Eng lew ood elects to provide treated water. provided, however, that Engle wood shall not
sell treated water ou tside the Englewood municipal boundaries to a ''wholesaler", i.e .,
Englewood shall not sell treated wate r outside its municipal boundaries to an entity which does
not itse lf use the water but instead resells the water to the actual users. Periodically throughout
each year ("year" in thi s Agreement means cale ndar year), Englewood shal l determine how
much , if any, Surplus Water it has avai labl e.
3.3 No Englewood ObligatiJn to Change Water !Ughts or Cons tru ct Faciliti"!,
Nothing herein shall obligate Engle wood to bring any proc ee ding to change any water right, or to
build any delivery fac ili ty, or to construct any well. Centennial shall not include any Englewood
water right in an application filed in water coun by Centennial without the prior written consent
of Englewood, which may be withheld without cause.
4. Avai labilitv of Sumlus Water: Compliance With Chaner. Right to Settle
Litig atio n.
4.1 Availabilitv of Surplus Water . Engle wood has Surp lus Water as of the
date he reof, but may not have Surplus Water in the future if Englewood's popu la tion grows as
ant icip ated , or if 1hr.re is se vere and protracted drought, or if other adverse circumstances
develop . Cen ten ni al is given no assurance that Englewo od will co ntinue to have Surplus Water.
Engle wood shall hnve the right. in its reaso nab le discretion. to interrupt, reduce or eli min ate
de!i·,ery of water to Centenn ial under this Agreeme nt whene ver and to th e ex tent Englewood
doe s no l have Surplus Water.
J .2 Enelewood Charter. Thi s Agreement is subject to, and is made in
co nfo rman ce with, the p:ov isi ons of the Englewood City Charter. The benefits and obli gations
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und er this Agree ment shall no1 be modified by any amendment hereafter made 10 th e Englewood
Ci ty Chane r ex cept as ma y oth erwis e be agreed 10 by En gle woo d and Centenni al.
4.3 En ele wood 's Riehl 10 Se11le Li1 iea1ion . Englewood shall ha ve the right , in
senleme nl of li1iga1io n, 10 comm l' ~y co nveyan ce or otherwise minor amounts of the wa ter
ava il able from any of its so urc es of water , and such commitment or conve yance shall 1•01
co ~s1i1 u1e a breac h by En glew ood ol this Agreem ent. Neither shall a judic ial de1enmina1ion
whi ch red uces the amo unt vf wa.1e· uppli ed 10 Centenni al under chis Agreement con s1i1. ·ea
breach by En gle woo d of 1h i~ "-s r, ·ent. Eng lewoo d and Centenn ial each receive a fraction of
the wate r de ri ved fro m the 1940 'lllc Lellan Reservo ir wa1er s10rage right and from the "Basic
Del iveries " and "Paid Del -~nes " under the Senlemenl Agre ement among Englewood , the City
and Co unt y of Denver. actin g by and through its Board of Water Commissioners , and Cyprus
Cl imax Met als Co . dated August 11, I 995. If a commitment of wate r by Englewood from an y of
tho se three sources in senlement of li tiga ti on redu ces the avail ahle water from the particular
source. then the reduction sha ll be shared bet ween Engle·•~ nd and Centennial in the same
prop ortions as the availa ble water fro m 1h01 source ;~ ,i::i re,J ; .e. the commitment shall redu ce
the total wa te r ava ila ble fr om the pa rt ic ular soun::. ~s u ,l,r "l~ai ning water shal l be shared
accordin g 10 the fracu on othe rw ise es rnbli shed for , ;:,c:a tiu n of water from th at source .
5. En el ewood 10 Make Good Fait h Effo rt s 10 Suppl v Surplus Water . Engle wood
agree s to make goo d fai th effo rt s ID suppl y 10 Cen tennial , under 1he 1enms and co ndit io ns of this '
Agreement , that water which is Surplu s Water as defined hereunder .
6. Non -liab ili tv of En el ewoo d fo r M•Jne1arv Dain aees : No Ou alit v Wa m,tv. The
partie s re co~~ize and agree that En_l ewood 's ab'lit y 10 provi de water 10 Ce ntennia l hereunder.
and th e q ual ity of the water pr ov ided , are dependent '"P ~" numerous forces be yond Englewood's
co ntrol , such as. but not limit ed 10, drought : fl ooding ; fire : wind slOnm or other stonm events ; war ;
riot ; deterioration , ph ys ical fa ilure or inadequ acy of storage or deli very facilities: ad verse results
of litigat io n; chang~s in appli cable co nstitut io nal provisio ns , statute s or regulati on s; ava ilable
flo ws prov ided by 1he di tc h outlet ma ni fo ld fr om Ch atfi eld Re servoir and as soci ated piping ;
pollu tion: e:irth quak e: and the like . Und er no ci rcumstan ce s shall Engle wood be li able 10
Centenni al for mone tai:• dam ag es fo r I) failure 10 del iver water 10 Centennial , 2) the qua lity of
the "ater deli vered 10 Ce ntennial. or J) fail ure. inad e~u acy or una vailabilit y of any storage or
de livery fa cilities , whether or no t le ~s ed 10 Centennia l by Eng lewood . Englew ood ma kes no
warr ant y, represent ation or ot her assurance of th e quali ty of the water 10 be deli vered 10
Cent enni al. The wate r deli ,ered wil l e raw unt rea te d wat er. and Cemen r ·ai shall be res pomible
for such tes tin g of quali ty and suc h 1rea1 men 1 as II dee ms ap pro pri ate pri or 10 de liv erin g such
wa ter 10 11 s cu stom ers .
7. Areas 10 be Se rv ed .
7.1 Ce nrenm~I Ser vi ce Area. Cen tenn ia l ·s serv ice area for purp oses of this
Agree ment ("Ce n1en111 al Se rvice Are 3") is shown on Exh1b 11 C he ret o. Ab sent En glewo od's
pri or wnuen co nsent . .-h ich mJ, be w11 hhc ld ,n En gle wood 's ,olc -:;i~crc 1ion. Cente nn ia l shall
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no t de liver water suppli ed 10 Centennial by Engle wood und er 1h1s Agreement ("Englewood
Water ") out si de the Centen nia l Service Area: pro vide d. howe ve r. Englewood Water shall be
deemed IO be deli vered entire ly withi n the Centennial Service Area at any time when the daily
demand fo r water wi th in the Centennia l Service ,>.,:.1 is greater than the daily co ncurre nt supply
of Englewood Water.
7.2 No Vio latio n of Enelew o.,d De cre1·1. Englewood shall delive r to
Centennia l hereunder only wate r 1ha1 ma y lawfu;J1 be use d withi n the Centennia l Serv;ce Area.
If wa ter has been deli vered 10 Centennial in COfP(•'onc e herewith, then Centennial shall bi sole ly
re sponsible fo r any viola ti on or claim ed viola tion or •h~ i ecrees associated wi th such wa ter
which ari se out of use or asse n ed use of suc h wa ter by Centennia l, .nclud1ng paymen t of
En glewood's reason ab le ano me ys fees, com and oth er expenses related 10 the violatio n or
claimed vio lation .
7.3 No Liabili1 v 10 Th ird Panies Wit hin Centennia l Service Area. Centennial
will not enter int o any contruc1 , lease. sa le or other arr angement or ob tain any decree whi~h
entitles or allo ws any perso n or enti ty ~!her than Centennial to make any cla im or demand
against Englewood for deli very or us e of Englewood Wa ter within the Cente nnial Service Area ,
or for failure of deli very oi En glewoo d Water fo r use wi th in the Cente nnial Servi ce Area .
Centennial agrees 10 hold Englewo od harmless from any loss. li ab 'li1y or claim aris;ng from a
cla im or tle man d by any person or ent it y other ,han Centennial relating 10 or aris ing out of the
del ivery or use , or fa ilu re of deli very. of Englewood Water l'or use within the Ce nte nni al Service
Area, including pay men t of Eni :wood 's reaso nab le a11omeys fees , coSlS a;,d expens es inc11rred
in defending the cla im or deman d made by any person ,1r emi1y ot her than Centennial.
7..1 No Liabi li1 v Outsid e Centennial Servi ce Area. Centennia l wi ll not ent er
into an) contract. lea se. sale . or other arrang ement or obt ain any decree wh ich ent itl es or allo ws
any person or entit y inc lud ,ng Centen ni al. to make any cla im or demand agains t Englewood fo r
delivery or use of Englewood Water out side th, Cen ten nia l Ser vice Area, or for fai lure of
del ivery of Engle woo d Water fo r use out side the Centennial Ser vice Area. Centen nial agrees 10
ho ld Englewood harm le ss fr om any loss , li abi lit y or clai m arising fro m a claim or de mand by
any per son or entit y mher tha n Centen ni al relating 10 or arising out of the deli very or use. or
fa ilure of delivery. of Englewood Wa ter for use ou:,ide the Centennial Service Area. incl uding
payment of Engle woo d·, ,easonabl e mome ys fee'.. co sts and expen ses incurred in defend ing the
claim or dem and made by any person or en1 i1v Olher than Centennial.
8.1 Introductio n IO Pri cin e of Water. Surplus Wate r ava ilable in each yea r
will be all oc ated and deli vered JS High-Pri ced Water , Medium -Price d Wnter or Low-Pri ~c d
Water. In Jn nu ary of each vear. the maximum amou nts of Surplus Wate r 1ha1 may be allocated
a.id dei,, ered ,n that veer as Hi eh-Price d Water and as Me dium-Pri ced Wa ter will be determined
in ac co rdance with p~ragraph 8~3. Surplus Water available in tha t year in excess of the
maxim um omou nt s of Hig h-Pric ed Wa ter ,nd :Vledi um-Pri ced Water for that ye ar will be
alloca ted and de livered ,n tha t vee r as Low-Price d waier.
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8.2 Defin ition of Terms . Unless the context clearl y requires otherw ise , the
fo ll owin g 1errn s will ha ve the meanings specified below . The definitions in paragraph s 8.2.1
through 8.2.5 are for vari able quantitie s that accumu late throughout each year, staning over at
zero in the fo llowing year. The definitions in par,graphs 8.2.6 through 8.2 .8 are for single
annual va lue s calculated once each year .
8.2.1 Offered Water: Surplus Water Englewood offers 10 se ll 10
Centennial.
8.2.2 Del ivered Water: Offered Wa·er accepted for delivery by
Centennial and subseque ntl y delivered by Englewood to Centennial up to
the amount accepted.
8.2.3 Obl i2a1ed Water: Offered Water for which Centennial is obligated
to pay .
8.2 .4 Un1aken Water: Obligated Water Centennial declines to take .
8.2.5 Contract Water: The sum of Deli vered Water plus Un taken Water.
Sketches# I and #2 illustrate various relationships between these types of water.
Sketch #1 -Delivered Waler 1011 than Obligated Water
f.-----------------------l► Oltered Water
i Delivered Water
,-----------------+,--► Obligated Waler
1----+ Untaken Water
f.--------------------+ Contract Waler= Obligated Water
Sketch #2 -Delivered Water greater than Obligated Water
f.-----------------------l► Olf ered Wate r
f.-----------------Delivered Water
f.-------------+Obli galed Waler (Unlaken Waler= O)
f.-----------------•-Con1rac1 Waler= De li vered Waler
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8.2.6 Annual Contract Water :
in any ye ar.
The 101al amount of Con tra ct Water
8.2.7 Thre shold: The ma xi mum amount of High-Pri ce d Water in any
year.
8.2.8 Ten-Y ear Average: The average of Annual Contract Water
amounts for the ten pre vious years. The Ten-Year Average fo r the years
2003 through 2012 shall be ba se d on 1he assumption 1ha1 the amount of
Annual Con1rac1 Water during 2002 and the previou s nine ye ars was 150 0
ac re-feel per year.
8.3 Alloca tio n of Surplus Wate r 10 Categories . Two performance cri teria , the
Thre shold and the Ten-Year Av era ge. shall be used 10 allocate Surplus Water each year as High -
Priced Water , Medium-Priced Water or Low-Pri ced Water. All Con tract Wa ter in any year tha t
is less tha n or equal in amount 10 the Thres hold fo r 1ha1 year is High-Priced Water. All Contract
Water in any ye ar that is greater in amount th an the Threshold for that year and less than or equal
in amount 10 the Ten -Year Average for that ye ar is Medium-Priced Water. All Contract Water in
anv vear that is great er in amount than the Thre sho ld for :hat vear and greater in amount than the
· Te-n:Year Avera-ge fortha 1 yea r. is Low-Priced \' 'a1e r. The Threshold ;nd the Ten-Yea r Average
,hall be calculated in accordan ce with paragraphs 8.4 and S.j ,
Sketch #3 illustrate s the concept of three pri ce ca te gori es based on two
performance crit eri a, assuming the amount of Contract Water ~x ceeds the Ten-Year Average. the
Ten-Year Ave rage exceeds the Thre shold . and the Thresho ld is greate rthan zero.
Sketch #3 -Price Categories and Perlormance Criteria
____ A _________ B~ _______ c_on_1_,a_c_1 _w_a_1e_r ___ ,...
Ten-Year Ave rage
Thresho ld
HlrJ h-Prlce d Wate r Med iu m-Price d Wa ter
Center.ma! must pa y for rl gn-P r1 ced Water and
Meo 1um-?nc eo V,'ater up to trie hm11s in
paraoraon 9
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Contract Water here is a ~a riable,
accumulating amounl thr ouohoul the yea r
1snown lrom left 10 nght above). Contrae1
Wat er a1 hme A is High-Priced Waler, at
11me B, Meoium-Pncecl Water , etc.
Low -Pr ice d Wa ter
Centennial may take and pay tor Low-Pncea
Water ancvor wat er 1n excess of paregraph 9
hm1ts . bu ! is not requued 10 do so . Once
aehve1ed . ,1 becomes Con1ract Water and
c::intr,but es 10 fu1ure aMual cak:ula110ns of
ine Thresnold and Tan-Yea r Averag11 .
8.4 Calcu lation of Thre shold Durine Threshold In itiatio n Peri od. For th e
ye ars 2003 through 2015 , unle ss soo ner 1enninated hereunder . ("Thre shold Initiation Period"),
the Threshold shall be detennined as fo ll ows:
8.4 . I Calculation of Thre shold. For 2003, the Threshold will be 1600 acre-feel.
If Annual Contract Water is less than I 600 acre -feel in 2003, then the adj usted Threshold fo r
2003 and the Thre shold for sub sequ ent years shall be calculate d as described in paragraph 8.5 .
For 2004 , the Thre shold will be 1700 acre-feel , but only if Annual
Contract Water in 2003 was 1600 acre-feel or more , and Annua l Contra ct Water in 2004 is 1700
acre -feet or more . If ei1h~r of the 1wo re quirements is not met. then the adjusted Threshold for
200 and the Thre shold fo r subsequen t years shall be calculated as described in paragraph 8.5.
Fo r 2005, the Threshold will be 1800 acre-feet , but only if Ann ual
Comr .ic l W,a er in 2003 was 1600 acre -feel or more . Annua l Co ntract Wa ter in 2004 was 1700
acre f~=1 ,,r more. and Annual Contract Water in 2005 is 1800 acre-feet or more . If any of the
three req Ltreme ms is not me!, then the adjusted Threshold fo r 2005 and the Thres hold for
<t;bse que,lt years shall be calculated as de sc ribed in paragraph 8.5.
Fo r 2006 and subsequen t years through 2015 , the Threshold shall be 1800
acre-feet, if the Threshold for 2005 wa s I 800 acre -feel or more and if, in each of the years 2006
through 20 IS, Annual Contract Water eq uals or exceeds I 800 acre-feel. If either of those
requirements is not met in an y year, then the adju sted Threshold for that year and the Thre shold
for subsequent years shall be ca lculated as described in paragraph 8.5.
During 1003 . 2004 , and 2005 , and fo r a peri od thereafter, the Threshold
rnay be greater than the Ten-Year Average. : le ve nheless Contract Water witt.'n the Threshold
shall be priced as High-Priced Water . Wh ile the Ten -Year-~ ve rag e is lo we r than the Threshold.
there will be no Medium-Priced Water.
8.4.~ Ref und of Pa vments Durine Thres hold Initiation Period. If an
adju st ment 10 the Thre sh old fo r a previou s year is requir ed during the Threshold Initi ation
Peri od , then. within 30 days after the end of the yea r in whi ch the adjustme nt is required,
Eng lewood will re fund 10 Centennial any excess pa yments made by Centennia l for Contract
Water during the previo us year.
8.5 Calcul atio n of Thre sho ld After Th res hold Initiation Period . In January of
the ye ar of 1ennina1ion of the Thres hold Init ia tion Period and in each yea r thereafte r, the
Threi hold for 1ha1 yea r shall be detennined as follows:
8.5.1 Defini tion of .~ddi1i onal Tenns . u nle ss the co nte .,1 clea rl y
requires ot herwis e. the fo li o" ing 1enns wi ll have the me anings specified below :
Ten-Y ea r Min imum : The smallest amount of Annual Contract
Wate r dunng the ten previous vea rs . If the Thres hol d Im11a1ion Peri od prov ided for in paragraph
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8.4 1ermina1es prior 10 20 I 2. 1he Ten-Yea r Minimum shall be based on 1he assump1io n 1ha1 the
amount of Annual Con1rac1 Water during c002 and the pre vious ni ne yea rs was 1500 acre-fee t
per year . The Ten-Year Min1m um ,s used hereunder only 10 increase the Thre shol d .
Threshold Buffer: An amount of hyp ot heti ca l storage ca pacit y
consisting of 15.15 percent of the capaci ty of Mclellan Reservoir. For purposes of Threshold
Buffer accoun ting , 1he 15 .15 percent is set at 900 acre -feel, and shall not va ry with the ph ysic al
sillati on of Mclellan Re ser voir .
Thresho ld Sum : An nual Contract Water fo r the previ o us year plus
Thre shold Buffer Am ou n1 for the previous year . calcu lated in January of each ye ar.
Thre shold Buffer Am ount: The hypothetical amou nt of water
lefl in t~e Thre shold Buffer . The Thres hold Buffer Amoun1 mav nol be less than zero or more
than th e Th res hold Buffer (900 acre-feet). On Januarv 1, 2003, ·t he Thre shold Buffer Amo unt is
ze ,o. ·ih e Thr,•s ho ld Buffer Amount fo r 2004 and su.bs equent yea rs shall be calcula ted as the
Thres hold Sum for the curre nt year less the Thre shold for the pre vious yea r, with a maximum
value of 900 acre-feet and a minimum va lue of O acre-feet.
8.5.2 Calculation of the Thre sho ld . The Thres hold for the current year
shall be calculated as fo llows:
8.5.2.1 No Chanee in Thresho [1 -If the Threshold Su m for 1he
current year is equal to or greater than the T~,reshold fo r the ,,revio us year and the Ten-Year
Minim um is equal 10 or le ss than the Thresno ld fo r the pre vio us ye ar. the Thre shold for the
current year shall be the same as the Thresho ld for th e previous year.
8.5.~.2 Reductio n in Threshold. If 1he Thre shold Sum for the
curre nt yea r is less !hnn 1he Threshold fo r the previous yea r. the Thre shold Sum fo r the current
yea r shall become the Thre shold for the current yea r.
8.5 .2.3 In crease in Thre shold. If the Ten -Yea r Minimum exceeds
the Thre shol d for 1he pre vious year, the Ten-Y eJT Mini mum shal l become the Thre shold for the
current yea r.
8.6 Sinele-Use Water and Reusable Water. Englewo od, in its so le dis cre tion ,
sha ll determine whe1her Offered Water is single -use water or reusable wate r and. if reusabl e
wa ter. whether 10 offer the reuse righ ts 10 Cen1ennial. Single-use wa 1er is that as lo whic ll, under
applicable Colorado water law and Englew ood 's de crees. the re1um flows after a firs t us e belong
10 1he oth er appropnawr s on the stre3m . Reusable wa ter is 1h31 as 10 whi ch. under appli cab le
Colorado water law and Eng\ew ood"s de crees. the r!lu m flows may be re -used 10 exti nctio n bv
Engle wood or its designee. assumrng re1ention of '·dominio n 3nd co n1 ro \."' If the Offered Water
is reusab le wa ter and Engle wood offers the reuse righ 1s to Centenn,a\, Centennial. in its sole
discreiion . sha ll de1ermine whe1her 10 acquire 1he reuse righ1s associa ted wi1h such wa ler. If
Cen1enn ial ele cts 10 acquire such re use righ1s and such wa1cr is delivered 10 Centennial by
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En glewood, all re turn fl ows from the fi rst and sub seq uent uses of such reu sabl e Deli vered Wa ter •
shal I belo ng ro Centen nia l.
When Ce nt ennial inte nds 10 use reu sa ble Deli vered Ware r for which Centennial has not
acq uired re use rights, Eng lewood sha ll have the right 10 de signate whether Centennial uses th at
wa ter or sing le-us e Deli vered Water , to the extent that bo th types of wa ter are avai lable for
Cent en nia l's use. If Ce ntenn ia l inrend s 10 use any Deliv ered Water , whether si ngle -use or
reu sa ble . for re le as e to the South Plane Ri ver ro sa tisfy its augm entation obli ga ti ons under an y
decree fo r an augmentatio n plan , the n Centenn ial sha ll not utilize for tha t purp ose reusable
Deli vered Wat er ~s 10 wh ich Cent enni al has not obtained reu se rights , unl ess no singl e-use
Deli vered Water is 1v aila ble 10 Cente nn ial 10 sa ti sfy its augme ntation req uiremen ts.
3. 7 Purch ase Price fo r Wat er .
8.7.J Hi2h -Pri ce d Wate r. The purchase price for High-Priced Water
shal l be $337 pe r acre-foot.
8.7.2 Medium-Priced Wa ter . The pu rchase price for Med ium-P rice d
Water shall be SI 75 per acre-foo t.
8 .7.3 Low-Priced Water. The purchase pri ce for Lo w-P rice d Water shall
be $99 per acre-foot.
8.7 .4 Reu se Ri2hts . The purchas e price for the reuse rig hts, if any,
associa ted wi th High-Pri ce d Water, Mediu m-Pri ce d Wate r an d Low-
Pri ced Water shall be 33 perce nt of the purchase price set fonh in
paragraphs 8.7.J, 8.7 .2 and 8.7.3, re spectively.
8.8 Example Calculation . Exhibit D here to is an example of hypothetical
annual value s calculate d in accor dance wit h this para graph 8.
9. Cent ennial Pavment Ob li2ati ons. A pon io n of the Surp lus Water availa ble each
year shall be paid for by Centennial , wh ether Centenn ial takes deli very of such wa ter or not. The
re ma inder of the Surp lu s Water availab le each year may be take n by Centennial at its option ,
and. if taken , shall be paid for by Ce nt ennial.
9.1 Pov menl fo r Obli2a 1ed Water. Ce nt en nial is ob liga ted to pay for Offere d
Wa ter rha t is priced as Hig h-P ri ced Water or Medi n1-Pri ce d Water , subje ct to the month ly
limits ("mon th" or "mont hl y" in this Ag ree menr me ans calendar month ) in parag raph 9.1.1 and
subject 10 the de livery ra te limi ts in paragraph 9.U . whether or not Centennial takes de liv ery of
such wa ter. Th is is Obl igated Water . To the ext ent Cen tennial choos es not 10 take de li very of
Ob li ga ted Warer. the difference betwee n Obliga ted V1~1er and the amount of wate r •1ke,i by
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Ce ntenni al is Unt ak en Water. Unt ake n WJ rer is sub sequentl y acco unted fo r as ifCemc,mial had •
take n it and is included as Contrac t Water.
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9.1.I Mon th lv Limits on Amou nt s ofObli2a 1ed Wate r. There are two
sets of monthl y li mits on the amount s of Obligated Water as set forth in Tables I and 2. The
monthl y li mits in Table I wi ll be in effect until the demand fo r treated and untreated wa ter
wi thin Centen ni al's Service Area in any year firs t eq uals or exceeds 20 ,000 acre-fe et per year.
The monthly lim11s in Table 2 wil l be in effect after such demand first eq uals or exceeds 20 ,000
acre-feet per year.
Table I. Mo nthl v Limit s in Acre-Feet Unt il Dem and Equal s or Exce eds 20 .000 acre-fe el/vr:
Jan Feb Mar A r Mav Jun Jul Au2 Se Oc t Nov Dec
~3_9_0~_3_90_~3_90_~75_0_~16_0_5 ~1_9_20~_2_15_0~_16_5_0~1_4_70_ ,_4_80_~45_0_~4_5_0~
Table 2. Month Iv Limits in Acre-Feet After Demand Equ als or Exc eeds 20.000 ac re-feel/vr:
Jan Feb Mar Ar Ma v Jun Jul Au2 Se Oc t Nov
520 520 52 0 1000 2140 25 60 2860 2200 196 0 640 600
If du ri ng any month Centennia l acc epts deli very of water in an amo unt in exc ~ss of the monthl y
limit fo r that month in the appli ca ble table , then . at Centennial's ele cti on , it may appl y th e exces s
amount aga in st the app lic able monthl y limit at any subsequent time in the same year.
9.1.2 Deliverv Rate Limits. When Centennial 's storage ca pacity in
Mc l ell an Re servoi r is nearing full safe ca paci ty as determined in acco rdan ce with this paragraph
9.1.2. the allowab le ra te of deli very (in cfs) of Obligated Water shall not exceed th e deli very rate
shown in Tab le 3 fo r the appropria te month .
En glewood sha ll from time ta time det erm ine the ful l safe capacity of Mclellan
Rese rv oi r ("Full Safe Ca pacity") whic h may be less than actual physi cal capaci ty fo r sa fet y
reasons (suc h as providi ng some storage capac ity to co nta in runoff from thunderstorms).
En glewood shall promp tl y noti fy Centen ni al of its determina tio n of Full Safe Capacity .
Cente nnial's full safe ca pac ity in Mc l ellan Re se rvoir ("Centenn ia l Full Safe Ca pac ity") shall be
65 .15 % of Full Safe Capacity based e n this Agreement and the 1977 Ranch Creek Leas e. The
capac ity adjust ment s fo r the appropriate month from Tabl e 4 ;hall be subtracted from the
Centennial Full Safe Capacity ta determ ine th e amoun t of storage ("Ne ar Full Cond ition'') whi ch
wi ll trig ger the dail y de li very rate limits in Table 3.
When the amo unt of wa ter which Centenrial has in storag e in Mc lell an Re servoi r
equals or excee ds ;'/ea r Full Co nditi on. the dail y del iv ery rate limi ts in Table 3 wi ll appl y. When
the dail y delivery rate li mit s from Table 3 for the appropriate mo nth apply , Cent ennial's
obliga uon to pay fo r wa ter under th is Agreement wi ll be re duce d to payme nt for the amount of
wate r mually deli vered or offe red fo r del i,ery by Englewo od. no t to exceed the daily deli very
ra te lim 11. Whe n the amount of water which Centenn ia l has in storage in Mclellan Reservoi r is
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le ss 1han 1he Nea r Full Condi 11 on, 1h e dail y delive ry ra1e limi1s in Table 3 will nol ap pl y and 1h e
ra 1e of deli very sha ll be as de1erm ined by En glewoo d. in i1s so le di scre 1ion .
When 1he 101a l am ounl of wa 1er in Mc l ella n Re servoir eq ua ls or exceed s Full Safe
Capuc i1y, nei 1her pan y will incre as e 1he amoun1 of wa1er sw red in Mclell an Reservo ir.
Tab le 3. l),,,lv De;,, erv Ra1 e Limi1s in ct's Whe n Ce n1 en nial S1 ora2 e 1s "N ea r Full Cond i1ion ":
Jan I F~:-> ~•r,r . ..f-'·...:"-,:_;_r _,...:Mc..:..:a~v---,...:J..:uc;n_.....,:J-=u"-l -.....,:A.cu::.e,__.;..;:S..:e.c:_4 .=Oc1 'ov
8 __ ,2 _____ l a 17 35 43 48 35 33 IJO ·--iG
Tab le 4 . "Full Safe r:aga ci 1v" AdiL•s1 men1 ,n .-',e re -Fe et:
Jan I Feb I Mar I Aor I Mav I Jun I Jul I Au2 I Sep I Oct I Nov
48 I 48 I 48 I 102 I 210 I ~58 I 288 12 10 I 198 160 I 60
Dec
10
I Dec
I 60
Pa vmen1 for No n-Obl i2a1e d Wa1e r. Cen1ennial is nOI obligated 10 take or
pa y fo r Low -Priced Water or any water in ex cess of the amou nt of Obl igated Water. If
Centenni al chooses to take LO\v-Pric ed Water or water in excess of the amount of Obligated
Water, that wa 1e if deli ve red bec omes pan of Contract Wa1er for purpose s of all sub seque nt
cal c ulations under this Agreement. Eng le wood ma y dispose of Offered Water whi ch Cent ennia l
does not accepl for deli very as Engle woo d de 1ermines in its sole discre1io n.
10. Plac e an d Measureme n1 of Deliveries : Pumoin2 Ca sis: Notificaiio n.
I 0.1 Place of Deli verv and Measure ment. The place of deli very for all
Deli ve red Water shall be Mclellan Reservoi r, exce pt that. at an y 1i me after co mpletion of
Centenni al's propose d South Plane Reservo ir. the panie s may mu tua ll y agree upon deli very to
Cen1ennial's South Plane Rese rvoir . The me asuring po in1s for mea su rement of Delivered Water
.re desc,ibed in T:i ble 5 and depic1ed on fah ibi1 E here to .
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• Table ;; : Water Del ivery and Measurement Summary
Waler Fac ilily where Exi sting Owner-Deliverv deslinatio n:
diversion measurement measurement (entily laking Mclellan So. Platte
structure • occurs device loca tion measurements) ResArvoir Re servoi r
Cily Dilch Cily Dilch Pump Meter on discharge Engle wood X X
Slation pipi ng
..---
Nevada Dit,:h Nevada Ditch Flume Flume between Centennial X X
urnout s1ructure
off ditch and So .
Platte Reservoir
pump stalion
orebav
Last Chance Last Chance Ditch Flume between Cenlenn ial X
Ditch Flume turnout structure
oft ditch ao d South
Platte R&servo ir
I
Dad Clark Dad Clark Gulch Dad Clark Gulch En glewood X
Gulch flows Flume (lorlower down st ream lrom
ll ows) Hig hline Canal
umout slructure
(lor high storm flow s Mas s ba lance cal-Engle woo d X
exc eeding ll ume culatio n ol inllows
measu remen t based on Mclellan
capabililies) Reservo ir water
levels
Hig hli ne Canal Dad Clar k Gulch Meter: meter in-!Eng lewood and X
Flume (Englewood) slalle d in 36 ' pipe Centenn ia l
and Dad Clark under Hwy C-470 .
Gulch Meler Meas ur ement is
(Ce n1 ennial) dille ren ce between
llow read ings lrom
Flume and Met er.
Hig hl ine Canal High line Canal Highline Cana l Eng lewood X
Flume below gate Gale No . 29 + 427'
• • -the re also may be water from other sou rces or other water ri ghts measured at lhese locations
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J 0.2 Pumoi n2 Cost s. Pump ing cos ts incurred by Englewood fo r deli veries of
Cont rac t Water tO Centen ni al under this Agreeme nt shall be bo rne by Engle woo d.
10.2.1 Ci tv Ditc h Pump Station. Engie wood owns and ope ra tes the City
Ditc h Pump Station show n on Exhibi t F hereto . En glewoo d shall bear all cos ts, incl udin g all
operation. mai nte nance . elec trical , repai r an d improveme nt costs, asso ci ated wi th de li ve ry of
Contract Water to Centennia l under thi s Agreemen t usi ng the City Dit ch Pump St atio n.
I 0.2.2 So uth Pl atte Re servo ir Pump Statio n. Ce ntennial ow ns and
opera tes th o South Pl atte Res ervo ir Pump Stati on shown on E.,hibit F hereto. Engle woo d sha ll
pay to Ce nt enn ia l Engle wo od 's propo niona l sha re of operatio n and maintenance cos ts and
electrica l cost s associa ted wi th delivery of Contract Wa ter to Centennial under this Agreement
usin g the Sout h Platt e Reservo ir Pump Station. Englewood's propon iona l sha re of ope ration an d
mai nt ena nce costs and elec tri ca l cos ts fo r deli very of Cont ract Water i,, <!nte nnial und er this
Agreement using the South Platte Re servoi r Pum p Sta ti on sha ll be determi ned by Cent enn ia l
using the same met hodol ogy as described in paragrap hs 13.8.2 and !3.8.3 for determining such
costs for City Dit ch Pump Stati on. Ce n1 en nial shall bi ll Engle wood fo r sues cos ts after the end
· of eac h month. Payment shall be d ue i11 full 45 days fro m date of deli very r•• the invo ice.
Payments past due sha ll bear in1ere s1 at the ra te of 12 perce nt per year, co mpounded quarterly .
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10 .3 No tifica ti on bv En2lewood of .-\mount s Ava ilable for Deli verv: Respon~io t
bv Cen1enn ial. In order to faci lit at e the del ivery of wate r und er thi s Ag reement by Englewood to
Centennial. the panies shall prov ide the fo llo wi ng not ices 10 each ot her .
10 .3.1 Operatio nal No1ice. Englewood shall gi ve Ce nte nn ial reasonable
advance notice. which shall not b•: ess than 24 hours, of th e av ailab ility of Surp lu s Wate r for
deli ve ry under 1his Agreement. Su ch notice may be ora l or 1,1 -,ri1 in~. an i · inclu de , at a
min im um. the quant ity of wat er. rate of deli very of , ,ter , the identity of :1,, .c,· right which is
the so urce of the wa ter and whet her th e wate r is sin2le-use wa ter or reusable wat~r. Centennial
sha ll no ti fy En gle woo d whe th er Cente nni al accepts-or rejects delivery of su ch wa te c wit hin a
reas onab le ti me af1er rece ipt of Eng le wood's notic e. which sh all not be le ss ,~an 12 hours . Such
noti ce may be oral or in writin g.
J0 .3.2 p·,,anin2 "lot ice. :O,o le ss th an 30 da ys befo re the beg innin g of
each month , Englewood sha ll notify Centenn ial of the quan 1ity of Surplus Water En gle wood will
ha ve ava ilable. or atte mpt to have avai lab le. fo r deli very during tha t month. whethe r suc h wa ter
is sin gle-use wa 1er or reusable wale r, an d if reus able wa ler , whe ther Engle wood is offeri ng the
reuse ri ghts to Cen 1e nn ial. Wi1 hin JO days after rt cei pl of Englewoo d's noti ce. Centennia l shall
nail f) Engle woo d of the maximum amount of such w;ite r Centenni s, may accept and whet he r
Cen te nni al may elec t 10 acquire the reu se rig h1s fro m Engle woo d. The notices provided tor in
this paragraph 10.3 .2 are fo r pla nni ng purp oses onl v an d sha ll not bind either pany .
11. ;vfe;is uremen 1 De vic es . Re co rdk eeoin2 . Billin2 and Pavment.
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I I.I Cen ten nial Mea su rement Devices and Re co rdkeep in e. Accu rat e
co n[,nuous-re cording no w measurement dev ices shall be ins[all ed and mai nt ai ned by Cen ten nia l
a[ each of the measu rin g points de scribed in Tab le 5 tha [ are owne d by Ce nt en nia l. Th e re co rd s
of measurement of Deli ve :ed WJ[er during eac h month sha ll be provi ded by Ce ntenni al [O
En glewood wi[hin [e n da ys af[er [he end of each mon[h .
11.2 Enel ewoo d Mea suremen [ De vices and Re co rdkeepi ne. Accu ra[e
co nt in uous-reco rdi ng no w me as urement devices shall be in srnlled and maint aine d by Engl ewoo d
at each of the meas uring po ints described in Table 5 tha t are ow ned by En glewoo d. The re co rds
of measu rement of Deli vered Water durin g eac h month shall be provided by En gle woo d to
Ce nt en nial wit hin te n days aft er the end of each mon[h . Records of deli veries shall include
de liveries made by ·'booko vers " from En gl ew oo d [O Cent ennia l of Engle woo d's wa ter
pre vio usl y S[Ore d in Mclellan Reservoi r.
11 .3 Annual Accou n[in e and Calc u!a[i ons. Englewood shall keep re co rds of
De li vered Wa[er and Ll nt aken Wmer acc ounted fo-as Contract Wa[er whi ch are necessa ry or
usefu l in [he calcula [io n of price s and amou nt s due . includi ng. bu[ no[ limi[ed [O . the Threshol d.
· [he Ten-Y ea r Average . the Ten-Ye ar Min im um , Unwke n \\"a[er , Annual Contract Water .
monthl y deli ve ries. and the li ke . By Janu ary 15 of each year. Englewood shall delive r 10
Centennial an accounti ng of such item s for the previous year and En glewood 's ca lcul ations of
the Thres hold , th e Threshold Bu ffer Amoun t and [he Te n-Ye ar Av erage for th e current year. By
January 31 of eac h ye ar, Centenni al shall notify Englewood of the items 10 which obj ect ion is
made . In [he ab sence of such notificatio n, or as [O ite ms as [O whi ch no objectio n is made , the
acco unting for th e pre vio us year and Eng lewood ·s calcu la ti ons of [he Thre shol d, the Threshold
Bu ffe r Amo unt and the Ten -Ye ar Average fo r the cu n·ent yeor shall be dee med 10 be co rre ct.
11 .-l Rec onc il ia tio n. Biiline and Pavment. Englewood and Centennial shall
reconcile [heir respec ti ve acco unting records after the end of eac h month . Therea fter .
En glewood shall bil l Centennill fo r Contra ct Water under [his Agreem ent during that pre vious
month . Payment shall be due in fu ll 45 days fro m date of de liv ery of [he invoice . Payments pas t
due sha l 1 bea r interes t at [he rate of 12 perce nt per year. compo unded quanerl y. Wi[hin 60 da ys
aft er the end of eac h year , a reconci li ati on shall be made of bi llings fo r tha t yea r, and any
ne cessarv adjus[menl pay ments shall promptl y be made be t"een the pan ies.
I 2. .->.mendments 10 1977 Ranch Creek Lea se. Paragraphs 21 and ::2 of [he i 977
Rari:h Creel.-Lease are re pl aced in thei r enurety by [he fo ll owi ng pro visions and said pa ragrap hs
2 1 and 22 st hereaf[er be of no funh er force or effe ct:
le .I Engle wood agrees [O se ll and Centennia l shall ha,e [he option 10 purchase
all of En glewood·; ··P ai d De liveri es ·• wate r a[ the in i[i al [im e of i[s availabilit } ea ch year as
hereinafter provided . ··Pa·d Deli veries" water is [hat water avail ab le [O En glewood un ,,er
paragraphs 3.3 [h roug h 3., oi [he Se[l(ement Agreement date d Augus t 11. 1995. amo,,g
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Englewood. Cyprus Climax Metal s Co .. and the City and Coun ty of Den ve r. act ing by and
thr ough its Boa rd of Water Co mmi ss ion ers(" 1995 Englewo od/C yprus/Den ver Agreement").
I 1.1 If Cente nnial accepts deli very of Pai d Deliverie s water a1 the initial time
of its availab ili ty each year 10 Eng lewood. then neither the Ten-Year Minimum nor the Ten-Year
Average shall include the Paid De liveri es wa ter taken by Centennial. Centenn ial shall ha ve any
rights 10 reu se of Paid Deli veries water.
12 .3 If Centennial doe s not accep t de li very of Pai d Deliveries wat er at the
init ia l time of its av ailability each year 10 Engle wo od , then Englewood may take and use such
wat er as Englew oo d determine s, including storing suc h wa ter and later including such wa ter in
the Surplus Water Englewood se lls 10 Centennial under this Agree ment. In this event. Paid
Del iveries wate r shall be treated in the same manner as pro vided for other Surplus Water in this
Agreemen: 'nclud ing the inclusion of such Paid Deli veries wate r in the calculation of the Ten-
Year Min .n 1• 'l1 and the Ten-Ye ar Average he re under .
12.4 The price per acre-fool for Paid Deli veries water accepted and taken by
.Centennial under paragraph 12 .2 shall be the sum of I) the amount charged per acre-fool by
Den ve r 10 Engle woo d for delivery of such water. 2) a fixed charge of $20 per acre-foot paid by
Centennial 10 Englewood , and 3) the cos t per acre-foot 10 Englewood of pumping such water
from City Ditch 10 Mcullan Re servoir determined in accordance with the methodo logy
described in paragraph s 13 .8.2 and 13 .8.3 or, if such water is delivered to Centennial through the
High Line Canal, the amount per acre-foot Den ver charges Englewood for delivery of such water
through the High Line Canal or, if such water is delivered 10 Centennial through the Nevada
Dit ch, the amount the Ne vada Ditch Holding Company charges per acre-fool to Englewood fo r
delivery of su ch water through the Neva da Ditch.
12 .5 Engle woo d and Centennial agree 10 coo perate in scheduling deli ve ries of
Pa id Deliveries water 10 Centennial: howe ve r. Engiewood sha ll be responsible fo r scheduling
deli veries with Den ver.
12 .6 Centennial shall comply with paragrap h 3.3.5 of the 1995
Engle wood/Cyprus/Denve r Agreemen1. A co py of paragraph 3.3.5 is anached as Exhibit G
hcr•10.
12. 7 All other pro visions of th e I 977 Ran ch Creek Lease rem ain in full force
and effr :1.
I 3. Ph vsical Facil ities Le as e .
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13 .1 Gram of Le as e . Jn add ition 10 the prol'l sions for sa le and delivery of water
set fo nh abo ve and else where herein , Englew oo d. as lessor, leases 10 Centennial. as lessee , an d
Centennial. as lessee. leases from Englewood , as le sso r, a ponion of the capacity of ce nain •
En gle woo d ph :, ;i cal fac ilities de scribed be low. 10 be used for th e de li very and sm rage of wate r
on the terms and con diti ons more pani cularl y se t fo rth be low ("Facilities Leas e").
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13.2 En2l ewoo d Phv,ical Faci lities in Which Capacitv Is Leased to Centennial:
Us e of Same . The ph ysic al facilities in which ca racity is leas ed by Eng lewood to Centennial
("P hysica l Facilit ies"') are Mclellan Reservoir, City Ditch from the Chatfield Reservoir dit ch
ou tlet manifold dow nstream to the Englewood Cit y Ditch Pump Station. Neva da Ditch from the
Chatfield Reserv oir ditch outlet ;na,,ifo ld down st ream 10 the tumour srrucrure on the ditch at
whi ch wate r is deJi ,•red to Centenni al, the Englewood City Di tc h Pump Station . the Di sc harge
Facility from Mclellan Re se rvoir ro the South Plane Rive r. and rhe pipeline t;-~m Mclella n
Reservoir to the D·scharge Fa ci lity , which is used both to carry wa ter from the City Ditch Pump
Station to Mclellan Re servoir and from Mci..ellan Reservoir to the Di scha rge Fac ility. The
Ph ysical Fac ilities are dep icted on Exhibit H hereto . The le ase d capacity may be used by
Centennial to store and/or carry any wa ter which may legally be stored and/or carried therein.
Englewood shall be so lel y re sponsible for all ne cessary or desirable contacts wi th third panies,
including the United States Ar-ny Corps of Engineers. rel ated to use of the Phys ic al Facilities by
Centennial under this Facilities Lease.
13 .3 Mclellan Re servoir. Englew oo d hereby leases to Cent ennial the
. exclusive rig ht to use 15.15 per cent of the ca pacity of Mclellan Reservoir fo r storage of water ,
su bject to rhe right s of each pan y to use the temporarily unused capacity of the other pany as
provided in paragraph 13.3 .8 below .
I 3.3.1 Determination of Capacitv of Mclellan Reservoir. The panies are
uncena in as to the present actua l capaci ty of Mclellan Reservoir because the ca pacity changes
wi th siltati on, and because minor irregularities in the elevation of the bottom of the reservoir
limit the accuracy of any determinati on of capacity. For purpo ses of determining the in iti al
amount of capacity available to Centenn ial hereunder , the present actual capacity of Mclellan
Reservoir sha ll be deemed to be 5940 acre-feet , and the capac ity initially leased to Centennial is
900 acre-feet Either pa ny , at irs own expense , ma y obt ain a sur vey by a professional eng ineer
or su rve yL; licen sed jn the Stare of Colorad o 10 be tte r de te rmine rhe actual capacity of Mclellan
Re servoir at the maximu m wa rer elevatio n le vel and sh ail pro vi de the results of suc h survey to
the other pan y. Englewoo d shall reasonably determ ine the maximum water elevation le vel
which is b,th safe and pre sents no appreciable risk of damage 10 the ph ysical structures. If either
pany obtai ns such :1 survey and such survey sho ws a different capacity than 5940 acre-feet at the
maximum water elevation le vel determined by Engl ewood. then the panies shall atte mpt to agree
upon a re vi se d cap acity an d a revise d lease pa ym ent fo r Mc Le II an Re servo ir fo r purposes of this
F3cilities Lea se : provided . ho wever , that the ca pacit y av arl able t0 Centennial hereunder shall not
exceed 90 0 acre-feet.
13 .3.2 No . '.eduction in Pa vmenr Due 10 Silr ari on. The charge paid by
Cent enn ia l 10 EnglewocJ fo r us e of Mc l ellan Reser vo ir ca pac 11 y wi ll not be reduced
~ro pon ,on3tely if 1he cap acity ava ilable to Centennia l hereunde r is reduced belo w 900 acre-fee t
,:ue 10 silt ari on .
13.3.3 Remova l of Silt. or or her Re sto ration of Caoacit v. Performed bv
En2 le wood. If En gl ewo od dererm,n es to res tore the storage capac it y of Mc l ellan Reservoi r to
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j940 acre-feel by dr ed ging , enl arg eme nl or 01her me1hods . 1hen Ceniennial shall ha ve lhe o p1i on
of pa ying I 5. I j per ce nl of 1he cos1 !hereof, and of using J j _ 15 pe r ce nt of 1he increase in
ca pa cit y, pursuan l 10 1his Faci litie s Lease . If Engle wood determines so 10 res1ore capac i1 y, ii
shall give no1ice 10 Centenni al, in reasona ble de1ail , of i1s plans for re storing capac i1y, and an
es1ima1e of the ant ic iµa 1ed cos 1 thereof. Cenie nn ial shall ha ve 45 days af1er re ceip! of notice
fro m Engle woo d. 10 exe rcis e i1s op1i on 10 pay 15. I 5 per ce nl of such cos t. Ceniennial shall give
no1ice of 1he exercise of its optio n to En gle woo d. Eng le woo d shall bi ll Centen nial fo r
Cent.e nn ial's 15 .15 perceni of such cos ls . Paymen1 shall be due 45 days from the dale of deli very
of the invoice. Jf Ceniennial does nm exe rcis, i1 s op 1i on as provi de d fo r here in. 1hen all
in creas es i11 ca paci1y result ing from Englew ood's proposed projec1 shall be lon g so lel y 10
Englew ood . E.1gle woo d, in i1s sole dis creti on, may de ci de 10 increa se 1he s1orag e capaci1 y of
Mc Lellan Re ser vL,ir 10 an amount in exc ess of j940 acre-fee t. at Engle wood's ex pen se. if
En glewoo d does so. 1hen Engle wood sha ll ha ve 1he so le righ1 10 use 1he swrage ca pa city in
ex cess of 5940 ac ·,e-fe et.
13 .3.4 Rem ova l of Sill bv Cen1en nial. Ceni en ni al may remo ve si lt 10
restore 1h e cap aci1y of M.Lell an Res ervoir 10 59 40 acre-feel a1 i1 s ow n ini1ia1i ve and al i1s ow n
cos t: pro vi ded . ho wever, 1ha11he capaci 1y ava ilab le 10 Ce111~nnial unde r thi s Fac ilities Lease as a
· re sul l of such silt rem oval shall not exce ed 900 ac re -fee l. If Ce nlenn ia l desires 10 remove silt al
i1s ow n cos t, then Cen1enni al shall give Englewood no1i ce of its prop ose d si ll removal projec 1 in
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reasonable de1ail , in clud ing 1he prop us ed pla ns , specifica1ions. construc ti on con lract, di spo sition t
of 1he remo ved material. name of the co ntract or (o r co ntrac wrs) who wi ll be permitted to bid. a
cos1 estima te by a qu alified profess io na l enginee r, name of an engineer ing firm 10 obse rve the
work , public I iabilit y insuran ce to be pro vided , indemnification of En glewood 10 be provi ded.
and the bond to be ob1ai ned. Englewood shall ha ve 1he ri gh t reas onably exe rcis ed. 10 disapprov e
or req uire altera ti on of all or any pan of 1he proposed ;iii removal projec t inc lud ing the plans .
specifica1io ns. con1rac 1or. bo nd , engi neeri ng fi rm . me1hod of disposi1io n of remove d ma1erial.
public liab i li1 y in suranc e 10 be provi ded. indemnifi ca 1io n of En glewoo d. or any other aspec 1 of
1he pro pose d project. by noti ce 10 Centenn ia l wi 1hin 45 day s after recei pt of Ce n1ennial 's noti ce.
If Engle wood gives such no1i ce . Centennial shall no1 proceed wi1h i1s propos ed si lt remo val
projec l wi1 hou 1 wri11 en app rova l fro m Eng lewo od. If Engle wo od does nOI gi ve suc h no 1ice ,
Ce n1enni al may proceed w11h i1s proposed sill re mova l project Centennia l shall not be ent itled
10 unden ake any ac1 ions 10 res1o re or increase 1he ra paci 1y oi :vlcLell an Rese rvo ir 01her 1han si lt
remo val.
13 .3.j Reduc 1ion in Sw raee Caoac il Y bv Cau ses O1he r Th an Silt a1ion. If
the ca paci1y o f Mc l e lla n Reserv oi r is reduced below j940 acre-feel 01her 1han bv siltaiion . the n
En gle woo d shall proceed. wi 1hi n a reasonab le perio d of 1ime af1 er 1he reduc 1io n. 10 re store lost
capaci 1y 10 Cente nnia l b)' reasonabl e and pract ic al rep ai rs or alt er aii ons to Mclellan Rese rvo ir ,
al Engle woo d's sole cos t. In 1he alt ema1i ve. Eng le woo d ma,· elec 1 ,o tran sfer a ponio n of i1s
ow n capaci 1y in Mc Lei Ia n Re servoir to Centennia l. If Englew oo d re sw res los t cap aci 1y to
Cen1e :1n ial by a ira nsfer of a ponio n of Engl ewood's ow n capaci 1y. 1he n Eng le woo d may
sub se4uen1 ly res10,e lo;t ca parny IO Ceniennial by repairs or al1e ra 1ions IO Mcl ella n Reser voir •
al En glewoo d 's sole cos 1, and the Englew ood capaci1v ~cev ious ly trans ferr ed 10 Ce ntenni al shall
!hen be ret urned to Eng lewood .
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13.3.6 Drainaee for Ooerations or Repairs. If Englewood determines, in
,ts so le disc retion. that it is necessary to drai n wa ter from Mclel lan Reser vo ir to facilitate repai rs
or replace ments or 10 meet sa fet y requirements , or because of pollution or contamination , then
th e pan ies shall share the loss of wa ter in proponion 10 the amo unts of wa ter each ha d in storag e
in Mclel lan Reser voi r prio r 10 the drai nage . Engle wood shall give Centenn ial adva nce no tice , if
possible , of such drainage event.
13.3. 7 Losses from Seepae e. Evaporation. Fail ure of Facili tie s and the
Lik e . Losses of wa ter fr om Mclellan Re servoi r ca used by se epage. eva poration , failure of
facilities. or any ca use beyo nd the reasonab le co ntrol of Englewood shall be borne by the pan ie s
in proponion to the amounts of wate r eac h had in storage in :VlcLella n Reser voir whe n the lo sses
occ urred . En glewood sha ll determ ine evap oration and se epage losses ac co rding to recognized
engineering standards.
13.3.8 Storae e Bv Eit he r Panv in Caoacitv of Other Panv. Eith er pany
may from time 10 tim e ha ve ca paci ty in Mclellan Re servoi r whic h is not occ upi ed by wa te r
stored by that pany ("tempo rarily unu se d ca paci ty''). Eit he r pany may store its wate r in the
• temp ora ri ly unu se d ca pac . the other pan y. Su ch wate r so sto red shall be removed fro m such
temporarily unu se d capachy whe n the other pany wishes to use such te mporarily unused
ca pacity and has wa ter available which it co uld sto re therein . If such wat er cannot be re mov ed in
a timely man ne r fr om such 1emporari l., unused ca pac ity. then such water sha ll be spilled or
booked ov er 10 th e ot her pany at no co st , to the extent 1· othe r pany co uld have deli vered wa ter
into such temp or arily unu sed capacity.
13 .3.9 Addit ion of Subst ances 10 Mclellan Re servoir. Either pany may
add custo mary chem icals . such as co pper sul fat e. 10 the water in Mclellan Reser voir to co ntrol
algae and oth er undesirable aquatic vegetatio n. Th e pany ma ki ng such an addi tio n, however.
agrees as fo ll ows:
13 .3.9 .1 Coo rdinatio n. The pan v making the additio n shall
ascenain fro m the oth er pany that the oth er pany has not added chemi cals with in a perie" ~f
time such that the previously added chemicals may stil l be pre se nt, in so me degree. and thu s
impac t the appropriate ness of a fu nher ad dition of chemica ls . The pan y making the addition
shail also ascenain from th e ot her pa n y any rele ases fr om the reservoir to the South Pl ane Ri ve r
or Ci ty Ditch ·.vhich ma '. be contemplated during the period when the chemical wi ll be prese nt.
to any significant deg ree , in the wate r of the reservoi r. No additio n shall be made if it would
hamper the abil11y of en he r pany 10 make a release from Mclellan Reservo ir 10 the South Plane
Ri ve r or Cit y Ditch .
13.3 .9.2 Perm its . The pany making the addition sha ll strictly follow
all applicab le s1a1u1es and regu latio n~, an d ob tain all neces sar y pe rm its from governmenta l
agencies having or assening jurisdiction over the addiuon, and stric tl y co mply with the te rms of
any permit or permits, and advise the other pany of its act ions and th e schedule for the ad diti on.
The pan y makmg 1he add itio n sha ll bea r the risk that a gove rnmental body ma y insist tha t a
pan,cu lar pe :1rn1 wa s necessary , bu t was not obtaine d. notwit ' tanding a go od fau h belief on the
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pan of the pa n y maki ng the addi tio n that the panicu lar pe nn it was unnece ssa ry or tha t a
suffi cient pe nnit had been obtained.
13 .3.9.3 Recom mended Practi ces. The pany maki ng the additio n
shall stric tl y follow the man ufacturer's reco mm ended prac ti ces fo r use of the chemi cal to be
add ed, in e very respect.
13.3 .9.4 Fines . Damaees. Fees. Th e pany maki ng the addit io n shall
pay all fines or damages , regardle ss of the entity or perso n upon whom the y are levie d, whi ch
result fro m or are related to th e additio n of the chemical , and any a11orne ys fee s, costs and
expen ses of the other party occasi oned there by.
13.3.J0 No Effluent Directl v Into Citv Ditch or Mclella n Reservoir.
With out the pri or wri 11 en co nsent of the Engl ewood City Council , which ma y be withheld
without cause. Centennial shall not discharge efflu ent from a waste water treatment plant directly
into Ci ty Dit ch or Mclellan Re se rvoi r. The fo regoing prohibi tion shall not app ly 10 effiuent
from a wast ewa ter treatment pla nt. which meet s the ap plicable discharge pennit effiuent
limitations , an d which is carrie d to Centennial's South Pla11e Reservoi r and co mmin gled with
. wa ter alread y therei n before its carriag e to Mclellan Reser vo ir.
13 .3 .11 Re co rds. Ac co untine . En glewoo d sha ll keep ac curate dai ly
records of the amount of wa te r which each pan y has in storage in Mc lellan Re servoir.
Centennial shall keep and promptl y su ppl y Englewood wi th accura te daily re co rds of all
deli veries of Centcnnial's water int o Mclell an Re servo ir , and its withdrawa ls fr om sa me ,
including rec ords of th e method of deli very (e.g. pump ing , flow from the High Line Canal, flow
fro m Centen ni:i l we ll s). the de cre e under wh ich the wa ter was de livered, and whether the water
is si ngle-use or reusab le wate r. Eng lewoo d sha ll keep simil ar reco rd s of its deli ve ries into and
with dru wa ls fro m Mclell an Re se rvo ir. Eac h pan y ma y re view the records of the other during
busine ss ho urs.
13 .3.11 Lease Pavment fo r Use of Mcl ell an Re servoir Cao ac itv .
Ce ntenn ia l shall pay Engl ewoo d $2 33,500 per year fo r use of ~lcLe lla n Reservoir capacity
hereunder. The annual payment shall be made in quanerly insta llment s due on the first da y of
Ja nu ary. April , July and October of eac h year . The first payme nt shall be due on the da te of this
Agreement.
13.-1 Ctv Ditch Faci lit ies . Englewood he reby le as es to Centennial the
exclusi ve r.g ht to use all excess ca pacity in the City Dit ch from th e Chat fi eld Re servo ir ditch
outlet manifold downs trea m 10 the Engle wood City Dit ch Pum p Statio n, the Englew oo d City
Ditch Pump S1a11 on . the Di sc harge Faci litv fro m Mc l ella n Reservoir 10 the South Plane Riv er.
"nd the pipeline fro m Mclellan Reservoi r 10 the Dis charge Faci lit y, whic h is used both to ca rry
wate r fr om the City Di tch Pum p Statio n 10 tv,cLell an Resen oir and from Mcl ellan Reservoir to
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the Di scha rge Fac ili ty ("City Ditch Faci lities "). Excess ca paci ty for purposes of thi s Faci lit ies •
Leas e is defi ned as th e ma xi mum carryi ng ca pacit y fro m time 10 ti me of tha t ponion of the Cit y
Dit ch Fa cilit ies Centen ni al ces ires to us e afte r the ca pa ci ty ne eds of others who prese ntl y ha ve
righ ts 10 us e of capac11y in Ci ty Ditch are sa:istied, including but no t limited to Eng lewood and
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• capacity used by En glewood fo r delivery of water 10 Centennial under this Agreement, and the
users of City Ditch as described in paragraph 13 .4.2.
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13.4 .1 De1ennina1ion of :apacitv. Englewood shall determine from time
to lime the max imum carrying capacity of the City Ditch Fac ilities, in its sole and re aso nable
discretion. based up on sa fet y. hydra ulic ca pacit y, an d avoidance of injury to the physical
facilities, and Engle wood 's relationships with third pan ies co ncerning use of capacity of the City
Ditch Facilit ies .
13.4 .2 Exi_s1in2 Cit v Ditch A2reemen1s with Third Panies. Use of the
City Ditch is presentl y subject 1c che rights of co ntract use rs of the City Ditch 1860 priority water
righ t so uth of Harva rd Gulc h ("Contrac t Users"), th e rights of the Ci ty and County of Denver
under an agreement betwee n Den ve r and Englewood dated October 3, 1995 attached hereto as
Exhibit I, and the righ ts of Li11le1on Cemetery und er an agreeme nt dated May 23 , 193..i auached
hereto as Exhibit J (co llecti ve ly the "Existing City Ditch Agree ments "). Th e panics recogni ze
the poss ibilh y that one or more of the Existing City Ditch .-\greeme:11s co uld be terminated
du ring the term of thi s Ag reement. Englewood shall have the so le righ • to deal with and receive
co nsideration fr om the co ntract Users , the Cit y and County of Den ver rn d the Littleton Cemetery
co ncerning any and all aspects of the faisting City Ditch Agreement s. rnc ludin g any and all
aspects of termination thereof. Any capacity in City Ditch that becl.'m •,,; availab le upon
termina tion of any on e or more of th e Existi ng Ci ty Di tch Agre emer,u ~ha ll become
Englewood 's capacity ("Eng le wood Re versio nary Capacity"), subje cc ,::, use by Cen tenni al only
in accordance with the priorities set fo nh in para gra ph 13 .4.3.
13.4.3 Priorit v 10 Us e of Capac it v in Citv Ditch Facilities. Use of
capacit y in the Cit y Ditch Fac ilities shall be in the following order of priori I)·
13.4.3. l Citv Ditch Wa ter Ri 2h1s and En2lewood Re versionarv
Capacitv. City Ditch water rights with priority date of 1860, incl uding Englewood's ow nership
of same and contr act users of sa me ; the one share of Nevada Ditc h water transferred to City
Ditch by the Liuleton Cemetery Association by decree of the Di stri ct Coun for Douglas County
in Case No . 1212 in 1933 ; and wa ter carried by Englewood. fro m any so urce , in Englew ood's
Re ve rsionary Capacity .
13.4 .3.2 En2lewood's Boreas Pas s No. 2 Ditch Water Ri2ht.
Engle wood's tra nsmo untain Boreas Pass 'Jo . 2 Dit ch water righ t wh ich Englewood purchased in
the I 950's . prior to th e 1977 Ranch Creek Lease.
13..J.3.3 1948 Mclell an Reser vo ir S1ora2e Ri2h t. Englewood's
50 % interest and Centennial's 50% intere st sha ll shar e equall y in the ava il able capacity in the
City Ditch Facilities; pro vi ded. howe ve r, that fo r purposes of priority 10 us e available ca pa city,
Eng lewood ma y choose 10 use capac ity in the City Dit ch Fa cil itie s assoc iated with its 50%
interest in the 1948 Mclellan Reser voir storage right to carry ot t er Englewood wate r rights or
contract water ow ned by Englewood. For purpose s of priority 10 use availab le capaci ty,
Centennial's use of capacity in the City Ditch Faci lities associated with its 50 % intere st in the
1948 Mclellan Re servo ir sto r:ige righ t is li mited to the carriage of its 50% interest in the
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Mc l ellan Reservo ir storag e righ t onl y and Cen ten nial ma y use such cap acity 10 carry 01her of ils
wa1er suppl ies onl y un de r 1he pri ori ty ID use avail able ca pacit y provi ded by pa ragraph 13.4 .3 .6.
13 .4 .3.4 Pai d Deli veri es Wa1 er . Paid Deli veri es wa 1er 10 be
de li vere d 10 E ngle wo od during 1he mo nth s of May and Ju ne. unl es s Denver and Engle wood
agree on an ad hoc basis 10 a de livery during so me other peri od of time .
13.4 .3 .5 O1h er En elewo od Wa1er Riehls and Co n1 ra c1 Water . All
Engle woo d wa1 er ri gh ts dec reed fo r di versi on al Ci1 y Dit ch and all of Engle woo d's con1rac1
deli veries of wa 1er prov ided by 01hers , 01her 1han "P aid Del iverie s" waler de sc ribed in para graph
13.4 .3.4 ab ove , inclu sive of any such future wa ler rights and contract wai er .
13 .4 .3 .6 Ce nten nial Water Ri 2h1 s and C n1rac1 Wa1er. All of
Cen1e nnial 's wate r ri 2h1 s decre ed fo r di version a1 Ci1 v Ditch and all of Cen1ennial's contract
de li veri es of wa1 er pr;vided by pe rson s or ent iti es other 1han En~le wood. in c lu si ve of any such
future wa1er rig hts an d co n1 rac1 wa 1er.
13.4 .4 Enelew ood Not to Make Ad ditio nal Tra nsfers of Caoaci tv In Citv
Di1 ch Faci lities . En el ewo od will no! make funher lea ses , as si 2nmen1s or other 1ransfccs of
· ca paci1 y in 1he Ci1y Di1 ch Facilitie s wi1h ou11h e pri or wrinen c;nsenl of Cen1enni al, exc ept as
01herwise pro vi ded in pa rag rap h 13 .4.2. Cen 1enn ial may wi1hh old its consenl in its sole and
rea sonable disc reti on. exc ep t that Ce ntennial will grant its consent to tran sfer s in settle ment of
li1 iga1i on or 1hre a1ened litigat ion wi th thi rd panics , by or against En glew ood , which will nol
mat eri all y affect the vo lu me of wa1 er which Centenn ia l can carry through 1he Ci1 y Ditch
Faci lit ie s.
13.5 Ne vada Di1c h. Ene lewoo d hereb v lea ses 10 Cen ten nia l all of Ene lewood's
capa cit y in 1he Ne vad a Ditc h which re mains af1er sa1isf~c1io n of Engle woo d's needs fo; capa ci ty
in 1he Ne vad a Di1 ch. incl udin g capaci ty use d by Engl ewood fo r de liv ery of waler to Centennial
and wi 1hou 1 reg ard 10 whe1 her En gle woo d uses il s Ne vada Di1c h capaci ty for de li very thro ugh
!he '.'Je vad a Di1ch below 1h e Ne vada Di1c h va lve house (s ee Exhib it F) after deli'"ery throug h 1he
Ch atfiel d Re se rvo ir di1c h ou1 le 1 manifo ld . or us es i1 s Nev ada Ditc h cap aci1y for delivery of water
th ro ugh Ci1v Ditch.
13.5.1 '.'Je vada Ditch Bv La ws and En e lewoo d Ca oaci ty. The leas e of
Eng lewood 's capac Jty in the '.'Je'"ada Ditch co Ce nt enn ia l shall be subje ct co the by la ws of the
Ne vada Di1 ch Holdi ng Com panv. and fo r purp ose s of the byla ws as pre sent ly in fo rce or as
ch anged in th e futu re. shall be deem ed 10 be betwe en En elewoo d and Ce nt ennial. Those bvlaw s
shall ·de term ine En gl ewood's sha re of the capac ily of 1h(1Xe va da Dit ch. ·
13.5 .2 Enel ewoo d \'ot co Ma ke Add i11 onal T ransfe rs of Ca pac ic v In
Neva da Di tch. Engle woo d will nol make fun he r le ases. ass ignme nt s or och er tra nsfers of
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cap aci ty in th e Nevada Dit ch w11h ou1 the pri or wri nen co nse nt of Ceni ennia l. Cente nn ia l may •
w11 hhold its consen t in i1s so le and reas onabh j ud gmen t, e.,c ep c ch a: Centen ni al will gra nt cs
co nsen t co tra nsfers ,n senle menc of li11 ga11 on or th reat ened li1i gat ior1 wi 1h 1hird panies , by or
P·101anas \A GMTS\2003Water Fac1 li11esSupoly,49reemen 1.coc
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agamst Englewood . which wil l not materially affect the vo lume of ·.vate r whi ch Cente nn ial ca n
con vey through the Nevada Ditch.
13 .6 En 2lewoo d's Ne vada Ditch Caoacitv Deli ve red at Citv Ditch. Because of
its own~rship of City Ditch . and its ownership of shares in the Nevada Ditch Holding Company ,
Eng lewoo d has th e right to carry wa ter through the Chatfield Reservoir ditc h outlet manifold,
using capacity in the Chatfie ld Re servo ir ditch outlet manifold al located to its ownership in the
two ditches. The pipi ng system below the Chatfield Reservo ir ditch ou tlet manifold bifurcates
into two pipes. one of which is for City Ditch and one of whic h is fo r ~evada Ditc~ .. Centennial
wi ll not obje ct if Englewood ta kes water transported through the Cha tfield Re servo ir ditch uo,le!
mani fold pursuant to Englewood 's right to use capacity in the Nev ada Ditch through the City
Ditch pipe instead of through the Ne vada Ditch pipe .
13.7 Lease Pa vment for Use ofCaoacitv in Citv Ditch Fa cili ties and in Ne vad a
Ditch . Ce ntenni al shall pay Englewood $35,000 per ye ar. plus annual opera tion and
ma intenance com described in paragraph 13 .S. for use of ca paci ty in the City Dit ch Facilities
and in th e Nevada Ditch hereunder . The annual payment shall be made in quarterly installments
due on the first day of January, April, July and October of ea ch yea r. The firs t annual payment
· shall be due on the date of this Agreeme nt .
I 3.8 Pavment of Annua l Operation and Maintenance Costs as Additional Lease
Pavment . As an additional pa yment under this Facilitie s Lease , Centennial shal l pay Englewood
each ye ar a portion of Englewo od's actual opera tio n and maintenance cos ts for the City Ditch
Facilities and for Nevada Ditch to be determined as fo llow s:
13.8 .l Citv Ditch Operatio n and Ma int enance Costs. Centennial shall pay
to Engl ewoo d a propo11ional sha re of the operat ion and me.intenance cos ts of City Ditch from the
val ve house to the Engl ewoo d Cit y Ditch Pump Station. as reaso nabl y determined by
Engl ewood. Such costs shall include cos ts for personnel, prevent ive maintenance and repair
maintenance . Englewood sh all kee p accurate records of such costs and suc h rec ords wi ll be
availabl e for inspecti on by Centennial during business hours. The proportiona l share of such
costs to be paid by Centennia l shall be determ in ed monthly bv multiplying s uch costs by the ratio
of the vo lu me of wa ter in acre-feet carried by Centenn,al in City Di tch during that month to the
total , olume of wa ter m acre-feet carri ed in Citv Dit ch durin2 that month , as mea sured at th e
flume be low the va lve house. (See Exhibit F) · -
13.8.2 Citv Dn ch Pumo Stillion and Pioeline to Mclellan Re ser vo ir and
Di sc harne Facil ities fr om :Vlc l ella n Reservoi r to the Sout h Pla11e Ri ve r Operation and
Maintenan ce Costs. Cent ennia l sha ll pay to En gle wood a proporti onal share of the ope ra tion and
mai nte nan ce costs of the Cit~ Ditch Pump Station and pi pelin e 10 1· lc l el lan Reserv oi r. exc lud ing
el ec tn cal pumpin g cc st s. and of the operation and ma in ten ance costs of the Di scharg e Facility
from Mc l ellan Re se r,oir to the South Pla11e Rive r. as reasonably determi ned by Englewood .
Su ch costs shall mc lu ce com fo r personne l, preventi,e ma int enance and repair main te na nce .
En glewood shal l keep acc urate rec or ds of such com and such records shall be available for
in spe ction by Ce nt ennial du nng bu s,r ess ho urs . The proportional share of such costs to be pa id
by Centen nial shall be dete ,:11 ned mont hl y by mult1p lv ,ng such co sts by the ratio of the vo lume
P:\a1ana s\A GMTS',200JW a1erF ac1ht1es Suo0lyAgreemen1.aoc
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of wa ter in acre -eet pumpd by Cen 1e r.nial from the Ci 1y Di tch Pump Station 10 Mclellan
Re serv oir during 1h a1 month 10 1he total volume of water in acre-feel pumped from 1he Ci1 y Ditch
Pump Sta tion 10 Mclellan Reser voir during that month. as me asured al the meter on the
di sc harge piping from City Ditch Pump Stat ion.
13 .8.3 Citv Ditch Pumo Stati on Electrical Pumoine Costs. Centennial
shal I pay 10 Engle wood a pro poniona l share of the electric al cos t of pumping wate r at the
Eng le wood City Di tch Pump Station. detennined by multiplying the electrical cos t during the
bi ll ing pe ri od by 1he ratio of the vo lume of wa ler in ocre -feet pumped by Centennial during 1he
bi lling perio d to the tota l volume of wate r in acre -feet pumped during the ~illing period.
13.8.4 Nevada Ditch . Cen tennia l shall pa y to Eng lewoo d any co sts of the
Ne vada Dit ch Ho lding Company exp ressly asse ssed against Eng lewood fo r carriag e of wa ter by
Cen.en ni al, ot her than Contract Water delivered by Eng lewood to Ce nt ennial under this
Agreeme nt. !'ng lewood shall pay all other assessments of the Nevada Dit ch Holding Company
wi :hou1 reimb urstmen t hy Ce ntenn ia l.
13.8.5 Billine and Pavment. Enelew ood shall bi ll Centennial for the
·addi ti onal lease pay ment due under this paragraph 13 .8 -after the end of eac h month. Pa ymen t
shall be due in full 45 days from date of deli very of the invoice. Pavme nts pa st due shall bea r
interest at the rate of 12 percent per year, com pounded quanerly.
13.9 Control of Ooerati on s. En glewood sha ll have com plete and excl us iv e
co ntrol of the operatio n, maint enance and repai r of the Ph ysica l Facilities le ased to Centennia l
hereunder and any alterations . impr ov eme nt s or additions there 10 . an d of replacemen t thereof.
ex cept as expre ss lv pro viced in paragraph 13.3.4 above fo r re mo val of silt fr om Mclellan
Re se rvoi r by Centen nial.
13 .10 Time line ss of Repair :. lf Engle wood fa ils to take pro mpt and reaso nable
steps to repair any of the Ph ysical Facilit ies lea sed 10 Centennia l hereunder in whole or in pan ,
and such fai lure adverse ly affe cts Centennial's wa1er deli very and/or storage po ten tia l. the
pa ni es agree 10 coopera te in all ow ing Centenni al t0 umel y rep air an y of such Physical Facilities ,
follo wing app rova l of the prop os ed repair pla n by En gl ew oo d. which approval may not be
unreas onabl y wi thheld. Engle wo od shall re imbu rs e Cent enni al fo r the costs of such.repai r
wi thin 12 months of the da te of co mplet ion of 1he repair. unle ss otherwise agreed to by
Cen tenn ia l and Englewood .
14 . Gran! of Ea sem en ts 10 Cent en nia l. Engle woo d agrees to grant to Centen nial ,
with out :harge 10 Centen nial. cena in penn ane nt ease ment s 0\'e r. under and across propeny
ow ne d or co nt ro lle d by Eng le woo d ("Cente nni al Ease ments ") upon the fo llow ing tenns and
condi ti ns:
14 .1 Spec ific In stru me nt. Ea ch of 1he Centennial Easements shall be granted in
a sp ecific instrumen t, to be exec ute d aft er a sur veyed le gal desc ription of the easement is
obt ained by Centen ni al. and pno r tO the time of co mm encement of co nstruction by Cent ennial of
an y facdi ues within 1h e easem ent.
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14.2 · Locatio ns . The Centennia l Easements shall be ov er , under and across
propenies owned or co ntrolled by En gle wood su rrounding Mclellan Reservo ir north of Co unt y
Line Road and ac ros s the City Dit ch ri ght of way .
14.3 Term and Tvpe . Th e Centenn ia l Easements shall be permanent an d non -
exclu sive.
14.4 Purpo se and Sc ope . The Centennia l Ea se ments sha ll we for the purpose of
transporting water, and 10 that end Centennial may instal l, maintain , repair. replac e , operate and
remove pipes, pumps and related fac ilities in the ea seme nts .
14.5 Route Sele ct ion. Englewood sha ll have the rig ht reason ably to select the
route of any of the Centen ni al Easement s. so as to avoid the loc ation of. or minimize disruption
of, existing or antic ipmed stre ets . struct ures. pipes . ditches. utilit v fa cilities. or areas to be
developed , and/or to co ncentrate ease ments for va ri o us uu lities in to particular co rridors.
1-1 .6 Rea sona ble Standa rd s. Engle woo d may set reasonable sta ndard s for the
·depth at which pipes mu st be ins1alled. compactio n of earthwork , protection ofCentenn ia l's
pipes or othe r facilities again st anticipated su rface uses , protec tio n of existing struct ure s and
ditches, separation from or protec tion of adjace nt util ities. the repair or replacement of st reets or
other facilities or struct ures through which the pipes must be installed , the timing of construction
so as to minimize disrupt io n of traffic or other ongoi ng activities , and the maintenance and repair
of faci li ties cons tructed by Centennial.
14.7 Limit atio n on Obli2 ati on to Gran!. En glewood shall not be obligated to
gra nt an y ease ment whic h, in the re:isonnble opini on of Engl ewoo d. is likely to necessitate a
re view under Se ction 7 of the End angered Species Ac t or anv simila r or successor legi slat io n.
14 .8 Limita ti on on Loc atio ns and Standards Sele ctions. Englewood sha ll not
select location s of, or st andar ds fo r the use of. the Centennia l Easeme nt s which unre asonably
increase the cos t to Centenni al io r installat ion . maintenance, repair . replacement . operation or
remo va l of CentenniaJ's fa ci lities wi th in the Centennial Ea se men ts.
14 .9 En2le woo d Relo cation and Re co nst ructio n. Engle woo d may reaso nably
rel oc ate any of the Centennial Easement s and rec onst ruct the facil iues therein . at Englew oo d's
so le exp en se and risk. The rel oc ation :i nd/or reconst ruct ion must be ac compli shed without
interrupti on of wa1e r se rvice to the Cen tennia l Ser vic e Area. The re co nst ructed fa ci litie s mu st be
equi valent to those replac ed . Engle woo d shall give Ce ntennial reaso nable advance notice of any
propose d relocation or recon structi on. an d co nsider all wriu en sugges tions of Centennia l
conce rni ng same .
14 . IO Ex cl usio ns. It is not intended by the pan ies tha t the Cente nnia l Easements
wi ll rncl ude easements fo r the use of City Drtch or any len gt h of the City Dit ch ri ght of way. or
the Hi gh Line Cana l. or Mcl ellan Reservo ir to co nvey or store wmer .
P·\d1anas \AGMTS \200 JWa1erFac1llt1esSupplyAgreemeni ooc
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15. En2 /ewoo d's Oo 1io n to Pani cipate ,n the Co ns1ruc1i on a1.' Use of New
Centennial Faci lities. If Ce nt ennial de ci de s 10 co nst ru ct new facilities fo r the transmission of
wate r from Chatfield Reser vo ir or fro m Engle wood 's Unio n Ave nue Pump Station to City Ditch
or Mclellan Re servoir or 10 or throug h any of Engle wood's propen y surrounding Mclellan
Re servoi r nonh 0f Co unt y Lin e Roa d, En glewo od shall ha ve the opti on to panic ipate in the
con st ru ction and use of s uch faci lity or faci liti es in acco rdan ce wi th the following prov isio ns .
15 .1 Notific ati ons. Centennial shall , pri or 10 preparation of final plan s and
s pe ci fications fo r suc h facility or facili ties , provide Eng le woo d wit h co nceptual information
concerni ng the estimated ~us ! sizin g, locat io n Jnd ope rat io n of the facility or facil ities . Within
60 da ys after re ceipt of such onr.eprna / 111fo rrna1ion, .. ng lew oo d sh all notify Centennial in
writ ing that Engle wood is inte res ted in panic ip ati ng in the co nstruct io n and use of the facilit y or
facilities . !f Engle woo d does no t give suc:1 not ice 10 Centennial. En gle woo d shall ha ve no
funh er ri ght s here under IC panicipa1e in '" '1 11,,·!i y or facili tie s.
15 .2 De s12n and En 2/ewq: 1_?;1nicipa1i on. JfEng/e woo d gi ves noti ce that it
desires 10 pa11ic i pa1e in the cons1 ru c1io n and cc e of the facilit y or facilities , Engle wood and
Centenni al shall anrmpl 10 reach ag re ement as 10 the des ig n of the facility or facili ties 10
. ac co mm odate use by both En gle•voo d and Centenn i,.J >.nd the terms of Engl ew ood's
pani ci paiion in and use of the faci lit y, includi ng but ri v , iimited 10 control of operation,
ma int~na ncc a;i d rep air and a/l oca tion of costs of ope ration , maintenance and repair. If no
agreement ca n be re ached bet wee n Eng lewood and Cent ennial wit hin 120 days after
Engle woo d 's notice 10 Centennial of En gl ewood's de si re 10 panicipate in the co ns1ruc1ion and
use of the faci lity or faci lities , Cent en nial sha ll be free 10 procee d with the facili ty or fa cili ties
and Engle woo d shall h.i ve nJ fu nher rights hereunder wi th re spect 10 such facili ty or facilities .
15 .J En2/e wood Pav ments. If Engl ewood panicipa1es in construc ti on and use
of any faci lit y or facilities hereunder. En gl ew ood sha ll with in 60 days of completion of
con stru ction th ereof. pn y its propon io na1e share of the com and e.,pe nses uf con struction of he
fa cilit y or faci li ties based on the rel ati on of the cap aci ty re se:ve d fo r Engl ewood 's use (whe n full
cap aci ty is being used) to the to tal cap aci ty of the faci lit y or faci lities . Cos ts and expenses shall
include all com and ex pens es incl ud ing design . co n~1ru c1 io n. i11 1e res 1 and fi nan ci ng com. If
Eng lewood de sires 10 panicipate in co ns1rur.:,0 n and use of a faci lit y or facil ;tie s but does not
then ha ve payments avai lab le from Centr.nn ia l und er thi s Ag re eme nt wi th whi ch to pa y its
propo n io na1e share of the costs and exr,en ses of co .1struc1i on of the fa ci lit y or faci li ties .
Cent ennia l and Eng lewood agree IO 'JS e t~ei r bes t effons 10 establis h an arrang eme nt by whi ch
Cent ennia l wi ll co nstruc t the fa cili t'., at Ceni~c ":•l's in itial cos t and ex pense . wi th En glewoo d
repayin g 10 Centennial Engle wood's propo monate share of cos ts and ex penses of co nstruct ion of
the facil it y or facil iti es. togethe r wur , intere st thereon 11 the then pre va ilin g int ere st rates on
AAA rated muni cipa l deb1. ou t of pa ymen ts rece iv ed by En gle wood under thi s Agreeme nt in
ex cess of SI 00 .00 0 per year. If a mut ually agreeabl e arr angement ca nno t be established . then
Eng lewoo d may elec t ei ther 10 pa :· its pro portio nate share of the coSIS and ex pen ses of
cons 1ruc1io n of the fac ilit y or f ci lit ies and parti ci pat e in the fac1 /i1 y or facili ties or not 10
parti cipat e in 1he fac ilit y or facil ities
16 . Ca pi1a/ lmoro vemen1 s to Ci1v Dit ch Fa ci li 11es .
P·1a1ana s'1'GMTS\200JW a1erFac 11!11esS ucc lyAgrcemen1 aoc
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16 .1 Jmoroveme n1 s 10 Ci1v Ditch and/o r Enele woo d Citv Di1 ch Pumo Station .
Cenienn ia l may co nstruct impro vem ents 10 City Di1 ch (s uch ~s replac ing 1he Mari:y Gulch
si phon 10 increase its capa ci1y) or lo 1he Engle wood City Du ch Pump S1ati on (s uch as removing
the in take manifold and cons truc1ing a we t well }, at i1s so le cos t and ex pen se, and upon app roval
by Englewood of plans and spec 1fica1 ions fo r such improvements. which approval shall not be
unreaso nab ly withheld . Englew oo d may . during 1he 1erm of 1his Agreement and at its ;ale
dis cre ti o n. ac quire such improvements from Centennia l by reimbursing Centennial for the co sts
and ex penses of co nstruct io n of such improvements . plus CPI adj ustment as de sc ribed in
paragraph 18 .1 be low, les s dep re cia ti on under an agreed up on depre ci ation sc hedule for such
impro vements . Cen 1e nnial shall ha ve the first ri ght to use the increa se d ca pacit y resulting fr om
any such imp rove ment whi ch ha s no 1 been so acqu ired by Englewood . Su ch first right to use
shall not ex1end to any other porti on of the Cit y Ditch or of 1h e Engle woo d Ci ty Ditch Pump
Sta uo n. Fo r example. if Centennial we re to enlarge 1he capaci1 y of a given portion of City Ditch
by IO cf s. and th ere by estab li sh its pn ori 1y nf usage of thi s IO cfs . sa id enlargement by
Cen1 enni al woul d no t entitle Cen1ennia l to any priorit y of usa ge of the Engle wood Cit y Di1ch
Pump St at ion. if such pump stati on capacit y were limi1ing a1 a give n time. Engl ewood shall
operat e such improvements whether owned by Cent en ni al or ac quired by Englewood .
16 .2 ~srate New Fac ilities on Ci1,· Di1 ch. Centennial may cons•:uct sep arate
new facili tie s on Ci1y Ditch which will principally benefi t Cen1en nial (such as a pump siatio n
along City Di1ch be1ween Oatfield Reservo ir and the Engle wood Ci1y Di1 ch Pump Station}, at
its sole co st and expense. ad upon ap pro va l by Engle woo d of plans and specifications for such
facilities . which approval shall nol be unre aso nabl y wi1 hheld . Centennial shall have the first
right to use such facilit y and En glew oo d shall ha ve !he righ 110 use any ex cess capacity in the
fac1li1y. The ava ilab ility of excess capaci ty shall be de1ermined so le ly by Centennial.
Cen 1e nn ia l shall maintai n suc h fa cil i1 y. Engle wood wi ll opera1e such fac ilit y as dire cted by
Cen 1enni al 10 di ve rt and/or pump Ce n1 enn ia l's wa1er 1hroug h such facili ty, consis1en t wilh
Cen 1e nnia1 ·s rights 10 ca paci ties in ihe Ci1 y Ditch and th e En glewoo ~ Cit y Ditch Pump S1a1ion
unde r 1his Agreement .
17. Caoi tal lmp rove me n1s 10 evada Ditch Fac ili11es . Any impro vements 10 Neva da
Dit ch facilities by Centenn ia l will be mad e in ac co rda nce w11 h 1he Neva da Ditch Holding
Co'T!p any bylaws an d subje cl 10 En glewood 's pri or appro va l of plans and spe ci firnion s. which
approva l will no t be unreas o nably wi1hh~ld.
18. Adjus1me n1 of Pav mec,ls. The pa ymen1s by Ce nt enn ia l 10 En glew ood. as set
forth Jbove in parag rap hs 8.7. 12.4 , 13 .3.lc and 13.i. shall be adju sted annuall y as of January J
of each )ear in acco rda nce wit h 1he follcwing provisions. The ar!juste d pay ment s shall be 1he
adj us1ed pay men1s det erm in ed using the CPI Basis for adju stmen1 1. as hereinafter desc ri be d,
un less 1he . .\ppra1sal BaSIS fo r ad j ustmen ls. as I ereinafte r des cribed . is ele cted bv one of 1he
parties .
18.1 CPI Basis fo r .-\dius 1ments. The CPI Basis fo r adju s1ment of payments
sh all mea n an adJ UStment of eac h of the payments se 1 fo rth abov e ei 1he r upward or downward in
proportion 10 changes in 1he Consume r i"rice Index , .-\11 Urban Co nsu mers , Den ver-Boulde r-
P 'c1anas \A GMTS \200 JWa1e rFac1lit1es f :)pty Agreemen t coc
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Greeley Area. All It ems, as published by the U.S. Bureau of Labe r Statist ics (th e Inde x). Th~
Index .is currentl y published for the first ha lf of each year and fo r the seco nd half of each year.
The adjustme nt shall be made as follows : th~ 'nit ial In dex shall b~ the Ind ex fo r the second half
of :!002. Beginning with the ye ar 2004, the pa yments shall be increase d or reduced eac h yur in
propo rt io n to the change in the Index between the second ha lf of the pre vio us year and the
second half of th e yea r prior to the pre vio us year. It is acknow le dged that the Inde x fo r the
seco nd ha lf of each yea r wi ll not be avai la ble until after January of the subsequent yea r, and an
adj us tment between th e pa rtie s to correc t th e interim pa ymen ts shall be mad e within 30 days
after the Index for the re q~isi te second half of the year is published. and there after all pa yments
shall be made pursua nt to th e re vis ions nece ssitated by the newly-publi shed Index . If the
d~scribed Inde x ceases to be publishe d, the parties shall seek to agree upon a reasonable
subst itu te index: and if suc h ag re ement can not be reached. th e subs titute index stall be the mos t
comparab le and recognized cos t of li ving index then bei ng publishe d.
18.2 Aopraisal Ba sis for Adju st ments . Th e Appraisal Basis fo r adju stment of
payments shall mea n an adj ustment of each of the pa ymen ts se t fort h above either upward or
downwa rd 10 the appra ised value of the wate r deli verab le or the leasehold interest under the
terms of this Agreement. The Appraisal Basis for adjustment of payments shall be used ro more
. often than once every 5 years and onl y if on e part y gi ves written n0ti ce to the other part y of the
notifying party 's desire to have an appraisal mad e of water val ue and/or leasehold ·,a lue within
60 day s after not ice from one part y to the oth~r party of the adj usted payme nts fo r the ensuing
peri od as det erm ined us ing the CPI Basis for adjustm en t. If such no tice is given , the parties shall
promptl y therea fte r ca use an ap praisal to be made of the valu es of the wate r deli ve rable and/or
the le asehol d interests under this Agreemen t. The appraisal shall be made by an ap praise r or by
apprai sers who are compete nt and recog nized appraisers of the value of wa ter and/or lea sehol d
int erests and the fees and expen ses of the ap prai sers shall be shar ed equall y by the pan ies . The
parties sha ll seek to agree on a si ngle apprai ser . If the parties cannot agree wi thin 30 da ys upon a
single appra ise r. either part y ma y de signate a competent and recog nized app raiser by no tice to
the Ot her part v ~·1d the oi her party shall. with in 30 days thereafter. desig nate a co mpe te nt and
re co gnizd ap 0 iis er by no ti ce 10 the fi rs, party. Within 30 days afle r the des ignatio n of the
second app,J;,e, 1he 1wo apprai sers so de signat ed shall select a 1hird competent and recognized
app rais er . As soor, as practicabl e afte r th e designation of the sin gle appraiser or of the three
appraisers . the single appra iser or the three appraisers shall subm it 10 the part ie s app raisals of 1he
value s of the water del ivera bl e and/o r the leasehol d interest; hereunder. If there is a si ngle
appraiser agreed upon by the part ies. the apprai sed value s determined by that app raiser shall be
deemed the appra is ed va1u es of the water and/or le aseh old inte rests. If there are thre e appraisers,
the ap prai sed values of wa ter and/o r lea sehold in 1e re sts hereu nder shall be the appraised va lues
fo r any ca tegory of wa1 er and/or lease hold inte re m ag reed up on by an y two of the appra isers or,
1f no IWG of the ap prai se rs agree. 1h e apprai sed va lues of wa 1er and/or lea sehold interests
hereunder sha ll be 1he average of the app raised va lues for anv category of water and/o r leasehol d
int erests of each of the three apprai sers. Pending co mple1ion of the apprai sal. Centennia l shall
make pa yments at 1he pri ces determined using the CP I Ba sis fo r adjustr.ients. Upon com pletion
o: 1he appro isal. Englew oo d shall refund amount s. if an y. paid by Centennia l in ex cess of the
pa)•me nt s determined using the .\ppraisal Basis fo r adju stments . or Centennia l shall pa y th e
add iti ona l amounts, if an v. due to Engl ewood uade r 1he payments determi ned using the
Appra isal Bas ,s fo r adjustments .
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18 .3 lns1ru c1io ns 10 Apora is er(s). The appra is er(s) is in s1ruc1ed 10 value the
fol lowing i1ems on 1he basis of 1heir fai r ma rke1 valu es . Fair markcl valu e, as used in 1his
Agreeme nl. is defi ne d 10 be 1he mos1 pro bab le pri ce paid by a knowledgeable ~uye r 10 a
knowledgeable se ller under cond iti ons in which ne ilher 1he buye r nor 1he seller is opera1i ng
under compulsion or du ress. given a reas onable 1ime fo r the 1ransactio n to be co ncluded .
18.3 .1 S1ora2e Cap ac i:v in Mclellan Re servo ir . The an nual leas e value
fo r the I 5.15 percent of 1he storag e capa cit y in Mc lellan Re servoi r whic h is leased to Centen11ial
is 10 be va lued a1 its fair market value for use fo r mun icipal purposes.
18.3.2 Hieh -Pric ed Waler. The appraiser(s) will calc ul ate th e lease price
per acre-foot of High-Pri ced Waier using the fol lowing equa1i on:
Lease Price for High-Priced Water= (Thre sho ld x Val ue -An nu al Lease Val ue fo r 900 Acre-
Feet of S1orage in Mclellan Re servoir)/Thre shold .
Where :
''Threshold" is the maximum am ount of High-P rice d Wa te r in the current year (i.e .. at the tim e of
th e appraisal) in acre-fee t:
"Va lue ·• is the fair market lta,c or rent al valu e in dollars per acre-foo t for a highly dependable
municipal supply water supply; and
Annu al Lea se Va lue fo r 900 ,",ere-Feet of S1orage in Mclell an Re servoi r is the current ye~c•s
pa vment under pa ra graph I 3.3 .11 , unles s 1here is al so an appra is al in 1he current year of the
annu al lease value fo r storage capac i1y in Mclell an Reservo ir , in whi ch evenl the Annual Lease
Value fo r such 900 acre-feel shall be ihe amou nl calcul ated using the uni1 va lue per acre-foOI fo r
storage capacity in Mclellan Reservoir as determined by 1he appraiser(s) for the current year
using the appra is al me1hod descri bed in paragrap h 18.3 .1.
I 8.3.3 Medium-Pri ce d Wa :e r. Th e apprai ser(s) will de1errn ine 1he uni I
va lue per acre -foo l for Md ium -Pric ed Wa1er or. the basis of its average avail abili1y over a
number of years. wi 1h 1he possib ili1 y of lin k or no avnilab ili 1y in a sing le yea r.
I 8.3 .4 Low-Pri ced Wat er. Th e apprais er(s ) will de1ermi11e the unit va lue
per acre -foo l fo r Low -P ric ed Wa1er on 1h e basis of Its ava ilab ili1 y on a shon 1erm bas is wi1hout
1he abi li1 y IO pla11 for its use mo e than a sho n 1i me in adv ance of i1s ava ;Jabil i1y .
18.3.5 Reus e Ri2h ts. The appra is er (;) will determine the unit va lue per
acre-foo t fo r 1he reu se ri ght s, if any. associat ed wi 1h High -Pri ced Wa ter, Medium-Pn ced Water
and Low -Pri ced Wa1er by (I) re vi ewing Engl •w ood 's decree s 10 de1errni ne which of
En gle wo od 's wa1er ri gh1 s are re usab le and C) revi=w ing recn rds of En glewood 's deli verv <Jf
re usab le wa1er 10 Ce nt en ni al.
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18 .3 .6 Paid Del iv eries Water. The appra iser(s) wi ll detennine the value
of the Paid Deli ve ries Wat · r as the sum of three co mponents :
(I) the amou nt per ac re -foo t charged by De nve r to En gle1•·ood,
pu rsuant to the 1995 En glewo od/Cyp rus/Den ve r Agreement: :in d
(2) the cost pe r acre-foo t to En glewoo d of pump ing suc h water from
City Ditch to Mc Lell an Re ser vo ir. if such wa ter is pumped to McLe ll an
Reservoi r, or the amount charge d per acre-foot to Eng lewood by Den ver
or by the Nevada Ditch Hold ing Com pany, if such wa ter is deli vered to
Ce nt en ni al throu gh the Hig h Line Cana l or the Nevada Dit ch,
respe ctively: an d
(3) a fi xe d cha rge per acre-foot to be pa id by Ce nt ennia l to
En glewood .
The appraiser(s) wi ll onl y determine the value of it em (3), above , i.e .. the fixed cha rge per ac re -
foot to be paid by Ce ntenn ia l 10 Engle wood. Th e appra is er(s) wil l de termine the unit val ue of
the fixed cha rg e by cons ide ri ng the 1995 En glewood/Cyprus/Den ver Agree ment , reco rd s of
· Denver's del ivery to Engle woo d of the Paid Deli veries wa ter, and the reuse rig ht s assoc iated
wi th the Paid De li veries Water.
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18 .3. 7 Leas e of Faciliti es. The ap praiser(s) will detennine a si ngle annual I
le ase value fo r the City Ditch Faci li ties and the Neva da Ditch by re vie wing reco rd s of
Centennial's use of the se fa ~:lities pursua nt to this Agreement, and by re cognizi ng the varia bl e
nature of the avai labilit y of such facilities fo r use by Ce ntenn ial.
19 . Centennial Riehl of Fi m Refusal to Purchas e EMlewood Water Rie ht s or Raw
Wa ter Faci lities . If. at anv time durine th e term of this Aereement. En elewood desires to sell
anv of its II ate r ri2h ts or ~aw water fa;i lit ies , incl udin2 b~t not lim ited to those listed below,
C;ntennia l sha ll h';ve th e right to purcha se such wa ter-righ ts or raw wa ter facilities on the sa me
tenns and co nditi ons as Engl ewoo d sha ll be willing to sell the sa me to any other pan y. The
fore goin g shall not be construed 10 autho rize Engle woo d to sell , or 10 req uire Cen tennia l to
purchas e any wate r rights or wa ter faci li ti es which are ne cessa ry or desirable to ass ure the
deli very of wate r as requi red und er this Agre ement. or to abrogate. li mi t or sroordinate the righ ts
of Centenn ial under th is Agreement if Centennial does not ex erc is e its rig ht of firs t ref usal.
19 .1 En 2le"ood Raw Water Facili ti es. The En2le woo d raw wat er faci lit ies
that are subject 10 this pa ragrap h 19 incl ude . but are no t limite d t;, Mc Lell an Reservoi r, City
Ditch . Engl ewood Cit v Dit ch Pump Statio n, Mc Lellan Reservo ir Discha rge Facility. Bear Creek
Pipeline (fro m Clay Street 10 Englewoc,•fs river rese rvo ir at Uni on Ave nue intak e), any
En p,lewood grou nd wate r wells a1,d app1 nenant faci liti es inte nded to withdraw groundwate r from
the Denv er Bas in. Neva da Ditch. future raw wa ter transmis sion fac ility (from the vicinity of •
Englewood's Unio n Avenue Intake Jr Allen Treat ment Pl an to the vicinity of Mc Lellan
Res ervo ir).
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19 .2 Procedures. In the event En 2lewood desires 10 sel l anv of its water ri2hts
or raw wa ter facili11es. then En gle wood sha ll deli v;r 10 Centennial no11ce of ;Is desire 10 se ll:
whi ch shal l include the fol lowing in fo mm ion:
A. The identit y of the as set to be so ld:
B. The price 10 be recei ved , and the lenns of pay ment of the price:
C. The sta te of title 10 1he asset 10 be co nveyeJ. including any liens or encumbrances:
and
D. Such 01her information or condilions of the sale , if any . which Englewood m3y
choose 10 include.
During a period of 60 days fo llo wi ng the da1e of recei pl of suc h notice ,
Centennial may de live r 10 Englewood no1ice 1h a1 Centenn ial will pu rchase th e asse1 descri bed in
Englewood 's no1ice on the price. 1erms an d 01he r co nd ition s de scribed in En glewood's no1i ce . lf
Centennia l ·s no 1ice is so deli vered. 1hen 1he pani es sh all close 1he purchase of 1he panicular asse t
al a time snd place reaso nably se lected by Engle wood . no sooner than 60 or more 1ha n 90 days
afler 1he date of delivery to Engle wood of Centennial's notice . Appropriate signed conveya nc e
ins1ruments shall be deli vered at closing . 1oge1her with readily available purchase funds and any
. note or other obligation for defe rred paymen1s. ·
lf Ceniennial fails to deli ver 1imely no1ice as above provide d, 1hen for a period of
548 da ys followi ng the expirati on of the 60 day period for Centennial's notice. Eng lewood may
sell the as set fo r a price no less than 95 per ce nl of that sta ted in En glewood 's not ic e to
Ce n1er,nia l. an d upon 1errns no less favorable to Englewood than those sta te d in suc h notice . lf
En gle wood wis hes to se ll for a price which is less th an 95 per ce nt of that stated in such notice to
Cente·mial. or on less favo ra ble 1errns. 1hen Eng lewoo d must re commence th e notice proc ess
de scribed herei n.
20 . Mutual Coooeration. It is anticipa1ed 1ha1 Centennial and Engle woo d will wo rk
together and use thei r best effor.s 10 enter into funher and ancillary agree ments rela ting to the
co ns1ru c11 on. operation and maintenan ce oi facil ities whi ch would enhance the dv ailabi li ty an d
qual i1y of wate r fo r both Engle woo d and Centennial. Howe ver. such funher or ancillary
agreements shall be separate and di stinct fro m 1his Agreement and thi s Agreement sha ll no ! be
cond i11 oned ,n any wav upon the entering into by either pany of any such future or anc ·ll ary
agree me ms .
21 . Rev ersio n of Lease d Water 10 En2lewood. At any time during an y year. by
mu1ual :igreemen t. Ce ntennial may reium 10 Englewoo d water actually deli vered by Englewood
10 Cen tenn ial under this Agreem ent. Englewood shall pay 10 Cen tennia l fo r the wate r retu rned to
Englew oo d 1he sa me price whi ch Centenn ia l paid Eng lewo od for such wate r. If the water so
re1umed to Englew ood is reu sa bl e wa ter. al l rights of ret1se shall al so reve n to Englewood.
01 Default and Remedies . If euher pany shall fail to keep or perform any ag re ement
on us pan 10 be kept and performed according to the terms and provisio ns of this .->.greement and
th~ ot her pany giv es no11 ce specifying 1he pa ni cular defa ult or defa ult s. the pany m defa ult sha ll
ha ve suc h period o f 1ime as provi ded 1n smd no tice. which peri od of lime shall ,n no event be less
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1han 90 days. in whic h to correct such default or defaults. or institute ac ti on reasonably
calcu lated to co rrect such default or defaults . Due to the unique ness of the subje ct matter of this
Ag reeme nl, the inadequacy of legal remedies . 1he extreme difficu lt y whic h may be experienced
in calculating damages . and 1he imp ossibili1y of returning the panics to 1he co ndit ions thal
exis ted at the time this Agreemenl was made, the non-defaul1ing pany shall have the right to
specifi c performance as a remedy. Waiver or failure to gi ve no 1i ce of a panicular default or
defaults , shall not be construe d as condoning any CJ ntinuing or subseque nt default. If either
pany should co ntesl any action purs uan1 to this pi.rag raph in coun, this Agreement shall remai n
in effec1 pending a determination by ihe cou n in said actio n.
Notwit hstanding the foregoing provisions of this paragraph 22, if either pany fails
to pay a liquidated sum of money , then the other pan y ma y giv e the de fa ulting pany wri tten
notice of the default , and ii the default is not corrected within 20 da ys after the date of receipt of
1he notice . 1hen the non-defa:1lting pany ma y, al its election. terminate this Agreement by noti ce
deli ve red to the defaul ring party withi n 30 days after expi ratio n of the 20 day period . A
liq uidated su m means a ,um which is fixed or ca n be readily ca lculated under this Agreement.
and as to which 1here is no dispute 1hat the sum is due . An ex~mple would be a failure to pay a
fixed an nu al le ase pa yment when there is no di spute that the am0unt is due.
The pre"ailing pany on any clai m of breac h or default shall be en Ii tied to recover
from the othe r pany its reasonable attorneys fees , costS and ot her expe nses related to the clairr.
on which it pre vailed.
23 . Notices. Except as 01h erwise expressly pro"id ed in paragraph J0 .3.1, all not l'c es ,
con sen ls or 01 her instruments or commu ni ca tions pro vided fo r under this Agreement shall be in
wri1ing, signed by 1he pany giving 1he same. and shall be deemed properl y given and recei 1ed
when personally gi ven and received , or 1hree business days after mailing . if sent by reg istered or
cenified Uni1ed S1a 1es mail. po stage prepaid . addr essed 10 a pany at its address set fonh below or
such 01her address as such pan y ma y designate by wri1ten no1ice 10 the other pany :
To Englew oor.:
To Centennial:
Director of U11Ji1ies
City of Englew oo d
l000 Englewood Parkway
Englew oo d. CO 801 JO
General Y!a nage r
Centennial Wa1er and Sani 1a1 ion Dis1 rict
62 Wes1 Plaza Drive
Hig hlands Ranch , CO 80 129
24 . Ass i2nmen1 bv Ei1her Panv. Absenl prior writte n consent by Englewood, which
ma y b! w11hhe ld wi 1h ou1 cause. Ce ntenn ial may no1 ~ssig n i1s rights or obliga tio ns hereunder
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except 10 l success or en1i1 y whi ch serves wa te r onl y to the Centennial Servi ce Area described in •
paragraph 7. I. Ab se nl prior wri1ten co nse nt by Centennial. which ma y be withhelrt wi1 hout
cause . Eng lewood ma" not ass ign Its righ1s or ob liga1io ns hereunder pro vided . howe ver , that
En gk wood may ass ign 10 a gove rnment al or quas i-go vern me nial pro vid er of water for municipal
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purposes wh ich ha s suffic ient fi nanci al strength and wate r resources to provide at least as muc h
wa ter 10 Cen tenn ial as Eng lewoo d is reaso nabl y likel y 10 provi de .
25. Bind inQ Effect. The term s and provisio ns of this Agreeme nt shall be bindin~
upon anJ inure to the benefit of the pan;es and their succ esso rs and assigns, pro vide d any
ass ign ment s are made in accorda nce wi th parag raph 24.
26. No Th ird Pa nv Bene fician es. Non e of the terms or pro visions of this .O.greeme nt
shall be deemed to be for the benefit of any perso n or pan y other than Cen tennial and
En glewoo d.
27 . Entire AQreemenl. This Agreem en t cons utute s the entire understanding bet wee n
the panies with respect to the su bjec t mailer ~.e re of and all prior agreements or understandin gs
sha ll be deemed merged he rei n. No repre se n1 011ons, warran tie s or ceni:ications. express or
implied , shall e.,ist as between th e panics e.,cept as stated here in.
18. Mod ific ations in Writ inQ . :-,Jo c.me ndm ent s. ""ivers . or modificatio ns hereof sha ll
be made or dee med to ha ve been made un less in wri ting executed by the pany to be bound
·thereby .
29. Se ,erabilitv . If any pro visio n of th is .-'\g ;e ement shall be invalid. illegal or
unenforceable . 11 shall not affect or impair the enforceab ilit y of any other ?revisions of this
Agree ment. Englewood wi ll vigo rousl y defend any anack on the ability of Englew oo d to deli ver
water under th is Agreement to Centennial for use by Centennial. an d will encourage Centennial
10 joi n in the defe nse. Despite potenti al panicipation in the cas e by Centennial. Englewood shall
ha ve the sole ri Qht 10 se 11le the litiQ atio n. bu t onl v after rea so nable co nsultation with Centenn ial
and rece ipt and -;;o ns1 de ra ti on of C~ntenn i::·; · .• ~ws on se11lement. If an adverse j udi ci al ruling
is rec ei ved. or an ad\'erse senlem en t is 1,,ude. wit h respec t 10 the abili ty of Eng lew oo d to de liver
wat er derived from any En gl ew oo d wa ter rig ht or co nt rac t ri ght purs uant to this Agree ment to
Cen tenn ial fo r use by Cente nni al. then Englew oo d in its ;ole discretio n sha ll determine wnether
to a11empt 10 amend any applicable Englewood decrees or co ntrac ts or tak e oth er steps to
ameliora te the 1mpac1 of the ad,ers e event. Ho weve r, En gl ewood shall reasonabl y co nsuh with
Centen nial co nce rn ing us course of act ion. pr ~r ·o rea cri ng any 11nal co nclusion. If Engle woo d
deci des not to take act io n 10 enab le del iver y to and use by Centennial under the dispu ted water
right or contrac t. then Eng lewoo d may pro vide the wa ter in que stion to others , free of any of the
co nstra ints es ta blis hed by this Agreement : provi ded , ho"e ver. :hat prio r 10 making a fina l
deci sio n 10 pro vide the water to oth ers. Engle " oo d shall rea so nably app ri se Centennia l of the
te rms. condi11ons and ci rcums tan ces under which it will provide the wate r to othe rs. and pro vi de
Cen tenn ia l wu h a 30 dav peno J wit hin which 10 repos e a meth odology whereb y approximately
the same quaa titv of wa ter c~ul d be pro vid ed in stea d 10 Centennial. Engl ewo od shall be und er
no obligation •o .~c ept such a methodology. but shal l afford reaso nab le and carefu l co nsiderati on
to Centenn ,a l's proposal.
30 . .-\ppli cab le LJw . This Agreement shall be interprete d and enforced acco rding to
the laws of the State oi Colo rad o.
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3 1. He adin2s and Caou ons fo r Convenien ce. All head ings and capt ions used in th is
Agreem ent are fo r co nvenie nce onl y and arc of no mea nin g in the interp reta ti on or effect of th is
Agre emen t.
32. Term and Renewals of A2reemen t.
32.1 Term of A2ree men1. The term of thi s A2reemen 1 sha ll include th e Initial
Term and . 1f the renewal o p11 ons he re ina fter speci fied are exerci sed . the Renew al Term s. al l as
here ina fter specified.
32 .2 Initial Term . Th e ·'Jn iual Term ·· of this AQreeme nt shall be 20 vears
commencing January I. c00 3 an d exte ndi ng to midni gh t on Dece-mber 3 1, 2022. ·
32 .3 Renewal Opt io ns. Centennial sha ll ha ve the option to ex ten d the In iti al
Term of th is Agre em ent for up to four additi onal successive 20 -year periods. The First Rene wa l
Term shall commence on Janu ary I. 2023 and ext end unti l mi dn ig ht on Dece mber 31, 2042. The
Se cond Ren ewa l Te rm sha ll comme nce on January I. c043 and shall ex tend until midnight on
Decembe r 31, 2062 . The Third Rene wal Term shall comme nce on Janua ry I , and sh all extend
unt il midnight on December 31, 2082 . The Foo rth Renewa l Term shall co mmence on January I ,
208 3 and shall extend until midn ig ht on De cembe r 3 1. 2102.
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32 .4 Proce du res for Re newal. Centennial shall exercise the options to renew I
the term of thi s Agreement by giving Engle wood notice of the exe rc is e of the option at least one
year before the next Rene wa l Term is to commence . It is rec~gnized that , due to the long term
nature of thi s Agreement. there may be an inad vertent failure of Centennial to gi ve timely notice
of Cente nnial's de sire to extend the term of thi s Agreement. Acc ordingly , if Centennial fa ils to
gi ve notice to Eng lewoo d of it s desire 10 exercise any op tion 10 renew . Ce nt ennial shall , in any
even t. be required to give such notice within 30 days after a notice from Engle wood to
Centenn ial advising Centennial that Centennial has failed to give notice of it s int ent to exercise
its optio n to renew . If. throu gh inadvert ence or otherwis e. neither part v gives a notice , th is
Agreeme nt .hall automa ti ca ll y continu e on a year-to-year basis . If Eng lewood subse qu entl y
giv es notice and Centen nia l foils to exe rcis e it s opti on to renew wi thin 30 days after such notice.
th is Agreement sha ll expire on mi dni ght of De ce mber 31 of the year in whi ch such not ice is
give n by Englewood. p1o v1ded such no tic e is given 10 Cen tennia l at least 30 day s prio r to suc h
December 3 I.
33 . Conde mn ati on. If eithe r part y co mmen ces an eminent domain proceeding to
acquire pro pert v of the other in cluding . but not limited to. property in the nam e of or held by a
ditch compan v in whi ch a part y ho ld s shares. the n the co nd emnee or holde r of the di tch co mp any
shares ma y terminate all or any pan of this Ag re ement JI such ume or times as the con demne e
choos es. by not ic e to the co ndem ner. The term "prc-i-e n y" include s. but is not lim it ed to ,
e:ise ment s. right s of w;i ;-1 , le :i seho lds . CJ.rriage c:ip ac11 y in wat er co nvey ance facil it ies, stor age
rig hts in reservo irs . wa ter rights. ri gh ts to re ceiv e water. and oth er co ntr actua l rights . •
34 . Co untema n s. This Agree ment may be exec ut ed in cou nerpans. all of whi ch
taken together shal l cons11 1u1e one and th e same Agreeme nt.
? \d1anas\AGMTS\200JWa1erFa c1l 1hesSL~Ply.Agreemen1 ooc
33
IN WITNESS WHE REOF , thi s Agreement is exec uted to be effective as of the day and year
first above wrinen .
CITY OF ENGLEWOOD
By: _________ _
Au est:
Cit y Clerk
P·\d1anas \AUMT S\2003Wa1erF aci llllesS upplyAgreemen1.doc
34
CENTENNIAL WATER AND
SA NITATION DISTRJCT
By: _________ _
Chairman
Auest:
Water Supply and Facilities Agreement
Exhibit "A"
Payments Due from Centennial to Englewood
•
•
•
Water Supply and Facilities Agreement
Exhibit "A"
Payments Due from Centennial to Englewood
-From 1/5/98 Agreement: December 2002 delivery of 75 AF @
$37'2/AF = $27 ,900
-Pumping and operational costs for delivery of Centennial's
water using the City Ditch Pump Station :
• October, 2002
■ November, 2002
• December, 2002 (estimate)
Total (estimate)
$1,949.14
4,506.41
5,000 .00
$11,455.55
Water Supply and Facilities Agreement
Exhibit "B"
Outside City of Engle woo d Water Servi ce Areas
The City of Englewood serves II eated water 10 the following areas outside of its
municipal boundaries:
The Chcrrvhills Ra1o ~ho area. rouehl v bounded bv S. Lafavettc Street extended on
the east to ·s. Clarkson St. on the ;;,e;t , and U.S. Highway ·2 85 on the north to E.
Oxford Lane on the sc-•i th : 68 accounts ,
Along S. Clarkson Street from E. Quincy Ave. so uth t0 E. Belleview Ave.: 16
accr.unts ,
E. Radcliff Ave. cas t of S. Clarkson St.: on~ account ,
E. Stanford Ave . cast of S. Clarkson St.: 5 accounts ,
E. Tufts Ave. eas t of S. Clarkson St.: one account ,
Viki ng Dri ve east of S. Clarkson St.: 15 accounts , and
Centennial Acres bounded by W. Belle vi ew Ave. on the north , W. Berry Ave . on
the sout h, S. Irving St. on the cast and S. Lowell Bl vd . on the west: 307 ac count•.
The total count fo r outside ci ty accou nts is 413 .
•
I
•
Area
Legend lewood Waler Served by Eng C'ZZ!Arealobe
to be Served by Engl
I
I
I
W ater Su p p ly and Facilities Agre ement
Exh ibit D
Exampl e Ca lcul ati on
I Values .., i'ne5e Co!ur-is Comou1eo in Jan uar1 of the Current Year. Ba.sea on PreY1011S Valu es I These Columns Mav Not tie Known Unlll End of Year
I I I I I Annua 1
1
1::noofYear Eno of Year
1
1:-,aol'r'ear
10 ye.st 10 year Thresn ok:I Thresnold Recuce Ir crease Contract High Pnce<I i iearu m Pnced Low Prit10
Year Minimum Averaoe Sum Buffe r Amount Thresl'IOICI Thre:snold Thresno!o Warer Water Water Water
1993 t I I I I 1500 I I
1994 I NOT ::S.I AGValu es 1n .liae Ff<!! / j 1500 I I
19!15 I I I I I 1500 I I I
1996 l Yea rs 2003 tnrougn 2015 are assumeo to oe tne Thresnold Jnilialion Penoa. For tnese years , :-I -'15;;00,..+-1 __ +1-----i------j
1997 I ltnetnreshOIClisse1byagreement no1 calculation ,assumingannualcontraawaterl'leacn l,__15'-00~~'--..-----1 -----;
1998 I lofthesevearstaualsoreiceedsco n1rao amounts. I 1500 I • I
I
I r.;~;;;;9a-i--t:-----i:---i--+-11 ----t:---+'----+-----t1-----i1c-';::~~c-+-,1 ---
2001 I I I I I 1500 I I
2002 ' I I I I I I 1500 I I
2003 I 1500 I 1500 I 1500 I O I 0 0 I 1600 l 2000 1 1600 I 0
2004 1 1500 I 1550 I 2000 I 400 0 0 I 1700 1 2200 1 1700 I 0
200 5 t 1500 I 1620 1 2600 900 0 0 I 1800 t 2500 I 1800 I 0
I ii20 1800 0 2006 1500 I 3400 900 I O O I 1800 1 2700 • : 900
I 18'0 1800 ' •o I 3600 900 I O O 1 1800 I 2600 ' ; 760
I 1950 1800 I 150 l JSOO SOO I O O I 1800 1 2500 I 1 550
I 2050 1800 250 I 3400 900 I O I O I 1800 11500 1 I 550
I 2160 1800 360 I JSOO 900 I O O I 1800 t2400 t ; 240
2250 1800 450 I JJOO 900 I O O I 1800 1 2500 1 I 250
2~50 1800 I 550
I 2•80 1800 680
2s•o 1800 ;,o
2590 1800 I 7!0 I 3600 900 I O I O 1800 ! 2700 ' I 110
2610 2400 100 I 3600 900 I 0 I 600 I 2400 i2500 1 l 0
2590 2400 I 100 I 3400 900 I O I o I 2.:00 ,2500 1 t 0
2580 1200 0 I )40Q 90() 2400 l 1,00 0
2<50 800 0 2100 0 (3001 2100 500 ' 0
2270 100 0 aoo o rnom eoo I too o
2040 100 700 100 0 t7COI 100 aoo t 0
1870 •,JI) 1000 800 700 Q 100 11(1() I 0
1700
1570 ~;;;;!-,-;-+-c-';::=--+----c,;,;-----,---,'~~"'~=--+---i'::c---+--=-~ -~----,----+-c-';::=--+-"::~~;-'-~::~...,'-.... :~:~-'--~~---.;
2025 I 100 i.d4Q 2300 900 0 100 1600 1 100 1340 160
202s 1 100 pJr --'2~500;;-..--i-----';ooc;;--,----;o'-----'---i-c---+----'100""--'-, -',,;,co"'--,-"100=--+-----',;;230=--'-----;1=co'--! .
20 27 I 100 1220 I 2300 I 900 I 0 0 100 I 1300 I 100 I 1120 I 80 I
202 8 100 1100 I 2200 I 900 I 0 0 100 I 1800 I 100 I 1000 ' :oo
2029 100 1160 I 2i00 I 900 I 0 0 I 100 I 2000 I 100 I 1050 I 840
2030 100 1280 I 2900 I lO0 I 0 0 100 I 2200 ' 00 1180 I 920
203 1 I aoo I 1490 I 3'00 I 900 I 0 I 700 I eoo I 2100 I 81.() 690 I 51 0
20n I 1100 I 1620 I 3000 I 900 I 0 300 1100 I 1800 , 1100 520 I :ao
1033 I 1300 I 1590 I 2700 I 900 I 0 200 I 1300 I 2600 I 1300 390 I 910
2034 1300 I 1820 I :!500 I 900 I 0 0 1300 I 2700 : 1300 520 i 830
203 5 1300 I 1950 I 3500 I 900 I 0 0 I 1300 I 1500 I 1300 ;;so I 550
2036 iJOO I 2040 )400 I 900 I 0 0 1:100 I 2600 ' 1300 I 740 I 560
1037 I 1300 I 2160 I JSOO I 900 I 0 0 1300 I 2700 1 13,j() 860 I 5'0
203 8 1 1800 I 2300 ' 3500 I 900 I 0 500 I 1800 I i:800 1 1800 500 I 500
:039 : 1800 I 1J00 I 3700 I 900 I 0 0 1800 I 2500 I 1800 I 600 I 100
•
•
' '' i
•~'! c,~u•••• .. -1 \
~ . . I
I I I ,' 1 I • '
I
W~te ; .Su-~ply :~•litie~-Ag.re~~~e ;,t·1
Exhibit E
• -• • ' ' • I
• I
'' ,'.!.,•
'
Water Delivery Measurement Points
1. Cily Ditch Pump Station : Meler on discharge piping
!'\!
2. Nevada Dllch Flume : Flume l.Jetw ee n lumout slruclL1 re off ditch anti So . Pla lle Res . pump statio n forebay
3. Las t Chance Ditch Flume : Fiume l>elween turno ut s·truclure all d il ch and So. Pialle Res.
4. Dad Clark Gulch Flume : Dad Cl ark Gulch downstream from Hlghline Canal twnout slructum
5. Dad C lark Gulch Meler: Meler installed in 36" pipe under Highway C-4 70
6 . Highline Ca nal Gale No. 29 + 427'
N W+I!
s
1,000 2,000
· . . I Challlekl RealfVOII ) :
Legend
----Cenlennlal's Pipelines
-------· Englewood's Piµeiinos
-·-•-·-City Ditch
-• • -• • -Last Chance Ditch
-···-··· Nevada Dlich • -···-···-· Dad Clark Gul ch
M.llcy Goich Wa ■l8Will8'
Trealment Ptanl
General Features
Joseph e . Blak e
Walw Treatment Plant
W+I!
s
1,000 2,000
Feel
.. ,"
• Water Supply and Facilities Agreement
Exhibit "G"
1995 Engle woo d/C yprus/Den ver Agree ment Paragra ph 3.3 .5
I
•
F
31,1
SETTLEMENT AGRE:::MENT
This Ag reeme nt made and entered i nto thi s//_!•da y of ~1995, 'by
and between the CITY AND CO\TNTY OF DENVER , act ing by ·and through
it s BOARD OF WATER COMMISSIONER S ("Denv er"), THE CITY OF
SNGL EWO OD("Eng lewood"), and CY?RUS CLIM!tX METALS COMP.o.NY,
("Cypru s") (collectively, the "parties"),
WIT.NESSETH:
WHE REAS, t h e City of En qle wood own s water rights decre ed in
c.A . 657 and Case No. W-750 -78 ("Cabin-Meadow Creek Water
Rioht s") wh ich divert f r om tributaries o f th e Fraser River in
water Division Numbe r 5 f or municipal use; and
WHEREA S, Denve r own s and operates a wate r co l lection system
which diverts water under its water r i oh ts from the Fraser and
Williams Fork River basins for municipal use; and
WHEREAS, Cypr us , through it s wholly-owned subsidiary, Climax
Molybdenum Compa ny, owns and operates the Hend erson Ore Reduct ion
Pl ant ("Henderson Mill") located in th e Wi lli ams Fork valley,
which processes ore from the Hende rs on Mine. Cyprus needs a fi ~
water supp ly to i nsu r e its a bili ty to process ore at maximum
product ion capacity dur i ng periods of drought; and
WHEREAS, Den ve r and Englewood entered into a Water Exchange
Agreement da ted March 17, 1964 ("1964 Water Ex change Agreement "),
and Denver , Englewood and Cyprus entered i nto a Modification of
the Water Exc h ang e Agreemen t dated September 2 , 1969 ("1969
Modification "), under whi ch Den ve r c arri es Cabin-Meadow Creek
s ystem water t hr ough its water s ystem and del ivers, by trade or
e x c h ange, wa t er to Englewood on the South Platte River for
mu,icipal use wi thi n the Englewood Service Area , a nd also
operates its Williams Fork System to provide water to Cyprus on
the Will i ams Fo rk Ri ve r for use in th e He nde rson Mill.
Englewood , Cyprus and Den v er agr eed to s hare t h e y ield of water
produced by the Cabin -Meadow Cree k Water Rights ; a nd
WHE RE.ll~, Englewood and Cyprus entered into a n agreement
d ated Septembe r 25 , 1 969, as amended on Septembe r 26 , 1969,
whereby En glewood and Cypru s agreed to jointly develop t he Cab i n
Meadow Creek Water Rights and t o share all costs connected w-i th
the development, operation and ma inte~ance o f th e Cabin Meadow
Creek Sy stem; and
l·IHERE/1.S , Eng lewood developed with Cyprus ' as sistance a •
collecticn system ("Cabin-l1eadow Creek System ") by whi ch to
divert and carry wate r di v erted under the Cabin -Meadow Creek
Water Rights; and
•
•
Deriver '! decrees. toJher. wace: from Reusable Sources i s
physically ava:.lable at the t:me of del iv ery, Denver shalJ
deliver suc.'1 water. l: these Reusable Sources are not
av..:.lable, Den ve: shic:l del.:.ve: from storaoe oth er municioallv
decreed sot..:rces a v a.::abl; tc Denver. rh e decerm.1.natiCn o!
wh1ct stcraoe s ou rces are ava:lab!e is within the so le
ciscretion ,;:,": De nve:. Nothinc 1r. this Aoreement shall be
construed c~· c.reat.:nc anv oilicat ion on"' Denve l" tc have
Aeusable Sc~rce s in it i s vs~effi er ~equ!ring Denver to operate
the Rcbe=ts Tun~e! i~ anY ma~~er.
Ne car rv -cve:. Englewood mu st • cake Paid
Del1ve=1es befcre July i c: the yea= of desi~natio~.
::n ;lewooC si":cl: fc:-:e:t any FaiC Ge.liverie s des1on ate C anC
made ava:lable by Der:ver Cu: :1ct :aker: befcre Julv 1. P..r..y
forieiteC ~aid Deli ve=:es s r.c :: je retc1ned by Den vE= for its
sole and exc lu s:ve ~s e. ~~c:ewco~ :s net :eccired cc oav to=
undel:ve.reC ~a1d r:.e.:.:ve=:.e·s.· i":cwe ve=, al: ·FaiC: DellvE=ie s
~e!2gnaceC ty Jenve= coun : a;a:~s: tje amounts set forth i ~
J.:. l.
-·-·-Cenve = Ccera::c ~ c: C.~C ~xctances. Denver mav
operate in -p=io rltY e x chanqes ~r.de= the aecrees in C.~. 36]5;
Case Ne. N-67EJ-7l or Case Ne. W-E CSE-lE ("Exchanoe Decree&")
us in c water incrcduceC intc the South Fl acce Rivei Basin froffi
Encl€woo C's CMC Wate= ~ichcs c= De~ver 's wate= riahts dec=eeC
fr~rn the same so urces cb· t he Nc::fac Tu~nel Cclleicion Svsce~
ir. C .A. l 43C ( "C1K Exchanqes • i . CMC Exchange& may be
per::ormed by Den ver only between May 1 and August 31, and may
be perfor~ed only wh er. calls are be!ng aciin~niste=ed for senior
wacer ri ghts of cc~ers on the Scuch Platte ~iver below the
point (1) at which CNC Exchanqe wace: is delivered intc the
s outh Platte River mair.stem cc sacisfv the callina water rioht
c= cc c cherwise sat:s:y se~icr ciOwnscream water rights.
Denver's diversions and stor ace f=orn the South Placte River
under OK Exc:ianges shall be limited to the lesser of (al 95
cfs or (b l the amoun: cf water called for bv downstream senior
richts on the South Platte ma:nscem during operation of the CMC Exchan~es. Un der the Exci":cnge Decrees, any CMC Exchanges
tc Chatfield Reser·,o.:.r shdl be ooerated unde: an
administrative date of 1976 or 1977 and to Strontia Springs
Rese:vci r under a prio:ity o: 1962.
Enclew oo d, a~d any entity whc i s entitled tc receive t h e Paid
Deii veries cursuant tc a wr!tten contrac: with Enolewood
soec~fi c alli for us e c: the Paid teliveries (''C ontra cf Users
of Paid Deliverie s"i , shall not cl:1 ect in anv forum or manner
to ope.ration of CMC £xchanqe1 l:y ·oenve : in· accordance with
thi s A9reeme~:. fc= pu=pcses c: this paragraph 3.3.5,
centennia! Nate: and Sanita:icn D.:.scrict ("Centennial ") under
che 1977 Le ase Agreeme,n or !960 Nater Supply .l\g reement, shall
not be con1idered a Conc:ac: Us er c:: Paid Deliverie s unless it
•
is en t:i tled under an amendment or new
Paid Deliveries. Before any entity
made a Cont=act Us ". -of Faid Deli verie
to ab:cie by th:s F ra9raph 3.3.5.
greement to receive all •
nc_luding _centennial is ·
tr.at entity must agree
3 .4 Sch edu le of deliver i es. Denver shall make Basic and Paid
r:.eli v eries unoer the proceaures set forth in Exhibit A. Denver
sr.all on ly make avail 3ble Fa1d Del:veries during the period May J
throuch June 30 u:;de= the p=ocedures set forth in Exhib: t A.
En9ie.:;ood is solely respons:bie fe r coordinating any Basic anc: Paic:
Deliv eries to its lessees e r users. Enclewood shall not reouest
Casie or PaiC Del iveri es i: the wa:er is.not needed for muniCipal
pu=poses Cy it or i :s lessees or users.
0 < Point cf Deliverv . Water ces:cnaced bv r:.enver under this
hr:1ci e :~1 snall oe measc=eC and Ce l :vEreC intO the South P:acce
k:ver incc or below eithe= £:rcn::a Sc=:ncs keservoir o= Chat!ielC
F.ese:-voi:, at ='.nc l ewood's recuest. · stream or ditch car!'"i aoe
:csses, :..f any, bet:wee14 c:-:e ·pc1:1 : c: delivery anC any othe=
Ccwns tream pcints of divers1cn ar e LC be aCsc=bed by EnglewocC.
3.E Tvoe of Wate!'. Water Ce l:·Je=ed tc Enclewood under th i s
,t.rticle Ili shall ne decreec for ;ni.:nicic;al use and shali be
l awfully availaCle for stcraae. Denv er mcV deliver to Enc i ewooC
water d~creed either for d~r~ct !lcw or f oi use by exchan~e only
with En~lewood's c or.sent . Excepc as Cescr:bed in this Sec~ior. 3.E,
howeve!', Englewood takes t:le type of wa-cer "as is 11 with respect cc
Denver's decrees. Ncthinc in this Acreement shall be construed tc
require Denver tc change lts decreei.
3. 7 Use of De-iverec Water. 1,ate r delivered to Enclewood
shall be useo cnly ror mi;nic:pal FUrposes within the -Denver
metrcpolitan area anC shall be used consistently with Denver's
decrees.
P.rticle IV
Cvo r~s-Denver P=ovisions
4. j Cabin-!1eadow Creek water. Denver shell have the right to
i;se, reu se, successively use and o ispose of all waters produced by
the CMC Water Rights and CMC System for any municipai use by
Den ver's customers in the Denver metropolitan area consistent with
th e Decree entered in Case No. W-750-76.
4 .2 .•.mo unt cf Water Pr ov ided to the Henderson _11 . While
the Henderson Min e is in operct 1or., r:.enver"s W1il 1 ams Fork Svstem
sha ll be e~ercisec so as to provide up to 3,000 acre feet of water
frcm the Wi ll:ams Fork Rive= and its tr:butaries for diversion and
us e at the Henderson Mill (tile "Cyprus Cr edit"); provided that nc
:no:?:e frequently than once duri:19 any ten consecutive Water Years, •
Denv er may, by Aprrl 20 of t h e Water Year , notify Cyprus that only
I
•
314 44
conditions that exi sted at the tim e of this Agreement , the non-
defaulting pa rty(ies) sha ll have t he right to specific per form ance
as a· remedy. Waiver or fai l ur e to give not i ce of a particul ar
defa~lt or default s und e:-this Section shall not be construed as
condoning any continuing or subsequent de fa ult.
8 .18 Te:-11-.. This Agreement is pe rpetu al, exce pt for the
provi sions concerning · Cyprus which sha ll terminate when the
Hencerson M:ne cea s es operation under Article II.
ATTEST:
.P.PPROVED:
Lega ~nS '.ftvr-_ \__
ATTEST:
,1..,. Secretary
26
CITY AND COUNTY OF DENVER
a cting by a nd throu gh its BOARD
OF WATER COMMISSIONERS
Ey: ~~£t,
P:-esident
REGISTERED !,ND COqNT~RSIGNED
Donal d J. Mares,, A~f~
i L t,
CITY{.) DlGLEWOOD, COLORADO
By: u!!Lam~ H'ayo r
CYPRUS CLIMAX METALS COMPANY
Chatfield Reservoir
Ditch Oullel Manllokt
l
·waier s~~ply·;~d--F~
Exhibit
~ ---· • • • • • ·-I'
' I ,(;
C-470
,. \·,! ':
f
I
,,.
1 .. r
·•-~ .. ,..,.,_ l')
Englewood Physical Facilities in Which Capacity is Leased to Centennial
IZ2Z) Mclellan Rose,voir
Clly Ditch from Chatnekl Reservoir Di lch OuUel Manifold downslream to the City Ditch Pump r 1aUon
Nevada Ditch from Cha lfleld Reservoir Oilch Outlet Manifold t.lownslream lo the turnout structure on
the t.litch al which watur Is delivered lo Centennial
Pipeline from Mclellan Reservoir to the Dlscharye Facillliy, which is used both lo carry water from lhe
--City Ditch Pump StaUon to McleUan Reservoir and from Mclullan Reservoir to lhe Oischargu Facillly
@ City Dilch Pump Sialion
f:j Mcleh.110 RA!mrvnir Olsr.h11rm~ Frt r.ililv .. W+li
s
1,000 2,000
F •
• Water Supply and Facilities Agreement
Exhibit "I"
Agreement between Engle wood and Denver dated October 3, 1995
I
•
CITY DITCB/BIG5 LINE CANAL AGRE.aJiOIT
THIS AGREEMENT i s made and entered i nto as of che~ day ot;:1..J/.,,
1~9:, t-·· and between the City and County of Denver;--acting byand
t h r ou gh i cs Soard of Water Comm iss ion ers, a municipal corporation of
th e Scace o f Ccloradc ("~enve:":, and the Cay o f Eng i ewood, a
mucccipal cor pc:ac ion of the Scace c f Colo rado ("Englewood").
Recitals
A. Enql ew oo d and Denv er w!sh cc arr ang e t'o r delivery of water
t o e ach o f th em !rem a ~ice ~ own ed t y t he o cher. Eng l ewood des i re~
deli veries f :om th e Hi qh Li ~e Cina l, a~d Denv er desires deliveries
fro~ the City Di tch.
E . The H!ch !.in e Canal ("Eich Line") i s o wned and operated b:t'
Denv er . An outiec :=om the High L:~e i s used by Englewood to supply
water to Mclellan Reservoir.
C. Enqlewood o wn s and o~e ra ces th e City Ditch from Chatfield
Reservoir north co Har v ard Gulch tlow-off. Denver owns the City
•
Ditc~ from Harvard Gulch no rth co it s terminus. Englewood uses City I
Di tc:l to convev 1 .. :ace:r for Enale1,;00C' s use tc ~cLellan Reserv oir and
Allen filter Pianc, and also·co supply var ious contract users who ·
dive:: from City Ditch south of Harvard Gulch . Denver use s
del iveries from City Ditch to supply wat~r to parks and to contract
users below Harvard Gulch.
D. Jenv er's rir;hcs to d e liver:.es from City Ditch at Harvard
Gulch and Enolewood's riches co deliveri es from the Hiah Line are
containe d in·a ser i es of·cont :acts, but are due to exoire on November
1 , 19 98. Den ver and Eng l ewood desire cc extend the tenn of their
respective rights co deli veries from City Ditch and the High Line .
Therefore, che parties have agceed _a s follows:
I . HIGH LINE CANAL
1.1 Oel:.veries to Enc i ewood. Whenever Denve r is runninc water
i n c~e Hiah L1n e ac lease as far as che t urnout to McLellan ·
Re se:~oi r; Cen ve r s~a l ! div e r t at the Eioh Lin e divers ion ~am no t
l ess c han 5 cu bi c fe 0 t ~e r second (cfs } ind up cc 60 cfs cf
E:ia !ewood 's .,..acer. £nc le wood ~hall Cece =m1n e t h e amount of its water
co·be diverteC, up to a maximum o f 60 cf s . Den v er s ha ~l continue to
op er ct e che Hi gh Lin e f e r delive:i es co contract us e rs north of
McLellan Reservc i r und er th e 1 879 r.igh Lin e Frlority .
1 .2 No t ic e. De nve: shall cive Enolewood reasonabl e adva nce
no t ice o f ciiec:me when Dec.ver ••ill begin runn1:.g wace= th rough che •
•
•
Hig!". Line. When Den v er r.otifie s t:nc;~ewocd t~at water i s runni n g 1n
t!':e :-::c;r: L:ne, E:ic;lewoc C shall gi v e Denver 48 r.ou:s advance notice o:
the amount of its water co be div erted, 1ncludinc race and duration
of flow. Denver s hall ~ake all :easonable ani practical efforts co
ccm~l y with Engle wood's directions ccncerning commencement t i me, race
and .du rati on of ~!ow. Den ver has the right to ce:~1n ate diversions
of £nql ewo od's water , so long as al l di versions of water into the
H!qn Lin e ~re cer~1naced at the same time.
1.3 Meas ure~ent a~d Ditch Less . En~lewood sr.all bear a dicer.
loss of 16 per cen t '16\1 c: 1cs wacer, diverted at the High Line
diversion dam, as me as~:ed at c~e c;age adjacent co Pl atte Canyon
F.eservoir-, fer de livery co McLellan F.ese:-voir. The deliveries of
Enc i ewood's wccer wi ll be mecsured a: the ccae on Dad Clark Gulc~
beC\..·een ::he Eic;h L.:..r.e a.iC Mc!.e !!ar. ~eser·,,.cl:: Fo r e:-:cm~je, if 150 cfs
is c1 v e:-ce c fer En;l ewc cd at :he C.:ve:s.:..c~ Ccm , 50 .4 c~s shall be
de!:vered c~rc~ct t h e Dad Cl ark ccoe. i:: the event that a~1 v
i m~:ov emencs ar~ made cc the Hi g~ i:,e wh!ct dec:-ease its ~~epage
lesses, the cmo un ;: o! C:.::c!i !css wt!ch £::c.!.ewc c d :n~5t beer s hall be
apF:opr iac ely reduced. ·
. 1.4 Wciver bv Den ve r of Ditch le sses. Notwith s tanding
paragraph ! . .:., Dcr.ver Si:c.ll, cc t h e excer.c legall y 1=erm:.ssible, waive
the 16 1 ccrriaoe loss when De~ve~ !s ccrr~inc Ena l ewooo's wacer in
che ::iah Line alona ,:: cl: water ci iver r ed bv the Hich Lir.e 187 9
p r io ri Cy; ~=oviCed~thac, Denver !snot prCh!Cicec; for :e~sons Ce ycnd ·
i cs control, !=om consc=·.1ct!ng t!le !r..prc vemer.cs p:-opc.sed in parac;raFh
2.!.2. Ena l ewood shall cont inue co bear the 16% carriaae loss
whene v er Den v er i s not d:ve rt:ng under the 1E79 High Line priority
(i.e . the J...~tero Cont=act Run). Whenever the 16% carriaoe los s is
wai ·.:eC, Denve.r' s maxirnu.'?l Ci ve!'s.:..cn and ciel! very rate for ·EnglewooC
sha l l be reduced from 60 cfs cc 50 cfs .
. 5 Wace= Cualitv. Den ver ~ekes no warran:v cs to t h e q~ality
of :h e 1,,,·ate.r ce!1verec to Englewood, end C:nc;lewooc· wil l accept same
11 as is ".
i .E Ma!ntenance Resoons!bilitv. Der.ver shall op erate and
maintain the Hiah Lin e fo r ael1ve.rv of Er.t-0 l ewocd 1 s water to Mclellan
Rese rvoi r. Enc;i ewood s hall FCY a ~roport!onace s har e of operation
anC ffiaincenance costs as descr:bed in paragrcrh i.i . Englewood shall
ma i~tain the present Measur.:..ng: um e at t~e McLel!cn Re servoir
turncut, et ~ngiewood 's s ol e expense.
l.E.l Shut-o ff of Cel.:.ve :1es. ::i en ve:r s ha!l pfrform any
~a1nte~cnce work re~~1r 1n g e1~her a ccmplece or partial shut-off
cf deli veries in t he High Line with the ~t~csc expediency cc
m.:r.imize ...,.a c e: le sses. ~:-<cepc .:..n eme!'g e ncy s:c u:c:on .s, Oenve:
s h a l l nocify Englewcod of all complete er parc1~. s hu toff a.
l ease 4€ hou rs in advance .
!.E .2 .:..n nual !r.scecc:cr,. Representatives of Englewood and
Denver will perform annual Jo inc i nspections of the High Li ne to .
de term i ne ma intenance work :e~u 1:e~ co ccnci n ue co deliver the
races of flow sec forth above: The inspect ion of the Hi;h Li ne
will be limi ted to the reach between the South Platte River
diversion dam and the McLellan Reservoi r turnout. The annual
ins p ec tion shall be made so chat all required maintenance work
will be c ompl eted, co the e~c ent pract ical, prior o Apr il J.
,. 1 Enc i ewood's Share of Hi ch Line Excer.ses. En o l ew ood sh all
Fay a proportion al share of the 6oara's annu a l High Line
a c:'.~1n i scration , o pe ration an d ma intenance expenses(including
de orec1 at ionJ on that por t i on of the canal f r om and includinc the H,ch Li ne d i vers icn dam co McLellan Re servoir (a distance of .16
m1 i es, mor e or le ss ). Denve r will not c~arge En g lewood for High Line
cap i tal costs , Cefined as the ccr.s:rucc:cn cf ne w physical s~ruccures
o : :~:rc vemencs co e x1s:1ng scruc:ure s ch at wll l have a use ful life
cf f:ve vears or mo r e (excep : for cecrec:acion wh i ch shall be i ncluded
:~ c~e:aClon anC ma inter.ance ex~e ns€s anC ca lcul ated under generally
accepcec accour.c in g procedures consistently a~flied). Englewood's
F=cport1onal share of those costs shall be based on the ratio of the
vc l um e of wa ter di verted for Enc i ewood at the Hioh Li ne divers i-o n dam
to the total ~~ounc of water dive r ted by the High Lin e f rom t h e South
Platte River .
J.7 .1 Calculation. The cc mcucacion of Enolewood's share
of coses s hal l b e 1n accordance with the foll owing formula :
Ct~ (16/63.6) x CH x (Q t /QH ).
Where:
16
63. 6 ~
Qt
CK
Lenoch of the Hiah L:ne in mile s from th e Hioh
Line diversi on dam cc the tu rnout fo r McLellan
Rese r voi r on Dad Cl ark Gulch.
Le n ;ch o f High Lin e i~ miles from High Line
di ve rs ion c 2m to i ts t erminus at the Rock y
Mountain Arsenal turnout. This distance may
ch ange in the f ucure ;de~ending on Denv er's
op erati ons.
Total annual nioh Line d i vers ion , i n acre-feet as
mea sured at che ~gag e adjacent to Pl a tt e Can yo n
Reservoi r.
Tot al annu al amcunc of LJ;-;·l ewood water diver t ed
or delivered in to the !!ia:. Line, 1n acre-feet, as
measured a t che gag e adjac ~nt to Pl atte Canyo n
Reservoi r .
The Board's total annual coses for •
•
I
•
Ct
admin1sc:ac 1or •. o perac.1on a nd maintenance o f the
Hi g t Lin e /Cased upon a c :ual mi les o pe:aceC b y
Den ver I .
EnalewooC's proportional s hare of annua l High
Line coses.
II. CITY DITCH
2.1 De liver:e~ to De nv er .
2.1.l Eas i c Deli ve=v . Dur i ng the peri od of Apri l 1
throuch Octccer .: 1, .:nc!us1 ve, Ena l ew o od sha l l deli v e :-co Denver
chrouqh che c,cy Di cch ac Ce nver's req u est u~ cc JO c:s of wacer
at Ea r v arC G;.;l c!". (ff\ec:s u reC at th e Wash::.gccr, F ark :lume ) ("Ec:sic
Del ivery";.
2 .1.2 £~laroemenc cf Eas i c Dei i ver v. Upcn replacement by
Denver cf app:c x 1m ate!y !00 l1neal t eec o f 36 inch diameter
cor=~qated meta! pipe con veying City Di tch water be t ween the
street and alleyway adjacent to the residence at 3018 S . Grant
Street, £n gle•.-·ooC, £nqlewood shall deliver, at Denver 1 s request,
up tc 1; c:s to Har vard Gulch, but no sooner than April i , !997.
Den v er shal l a l so be res~onsible for :rncrovements ,if anv, to the
Cit y Ditch nc:th of a nC ~~cl uC:ng Eampci~n Avenue co enable the
d~li v ery o f I ] cfs co Har vard Gulch. Englewood shall be
r1~spcnsible ~er any ma i ntenance activities necessary to conv e}·
the 13 cfs co Harvard Gulch . Al1 ~urveys , engineering and .ether
scuC:es, and c ons ~ruction in connection with any imprcvements
shall be perfc=~ed ac Oe~ver's sole expense. Englewood shall
c ooperate f u l ly in allc~inq any necess~r y !nvestigacicns and
consc=uctior.. No s uch ccuscructi on, howe ver, s h all be oerfc=med
withcuc the Fr:or writte~ ccnsent of EnglewooC, which shall not
be unreasonaCl y wit hheld . Der.ver shall ccmply with Englewood's
reasc n able d es i gn sta~Cards o r c=iteria i n ma king these
i mprc v emencs. After sac:sfactory ccmplecicn o f such replacement
and i morcve mencs, Enolewood shall deliver 13 cfs to Denver at
Harvard Gulch , from Aprill through Occ o ber 31 of each year .
Denver will all ow Englewo od until April l 1997 to pe r:crm
~aintenance acc:vic:es {:ncluc!ing the remova~ c f s ii t or Cebr:s i
necessary to de l iver the 13 cfs.
2 .1.3 Locat i on o f Otf:e!'" De l i veries . De nv er mav reauire
Englewood tc ael 1v er, c:h:-ou gn t h e Ci:y Ditch, a ny portion ·cf the
13 c~! cc herw1se del iverat l e at Earvard Gu l c~ to any exist!n~
d eli verv scr~cc ure er str ucc u res souch of Har vard Gu l ch f o r
irriga ti on cf E=arks, c pen s~ace, and goif ccu=ses o f Denver or
i ts cusccme=s . Such de l :veries s hall be in addition to the
de l i ver i es whi ch Eno!ewoct is alrea cv reo u i=ed to make to
e xi st:nc cc n c=acc u~ers s o uth of Har ;ard ·Gulch . If Denver
wishes ~o ·uc:l :z e new c!el:ver y s t =uc:u r es, De nver shal l Fay co
Snglewood tr.e full ccst of the ccr.sc=uction of the new delivery •
scruc c ~=es. En9 le ~ocd shall ~e=~==~ c~e co r.sc=uccic~ ~~=:~;
per100s when no 1ncerrupc1on cf flc~ w1!l be necessary.
2.1.4 Inter:uction of Delive:,es. In "emergency
siti..:ac1or.s," Enq i e•,..ooc may cem~orar:ly r educe or eliminate the
del1v er1es of 10 c:s or I] cfs pursuant to paragraph 2.1 .1 or
2.1.2, respeec:ve i y tc Denver ac !;a:varc Gulch (or souc~), so as
co increa se che t:ow ln C::v ~:cch available f o r diversion int o
Eng l ewood's .!Ulen :"il ter pl~n c . An "emergency situation'' is
d ef ined as a casualty, such as en acciCent , mechanical
breaxdcwn, burst ,:pe, flooc, _::eSEnce of a harmful po llut ant
which i s a threat co the healt~ anC safety of Englewood's
residents, earch~uake, fire or winCsto rm, which causes Englewood
co be unable co ma ke full use c~ i:s points of diversion f =c~
che souct Fla~t e ~:ve: c: 2e~r Cree~, c ct e r th an City Diec~. r~
the e vent cf ·cer :~cc:c~ C:;e cc an emeroenc v situac1 0~.
£n;lewood sh · ali :e ascoable and ~raCtiLal actions to
enable it o n resume ~:;.!..i Ce!iver!es to Harvard Gulch or
s uch other.le s Denver mav Cesire. If the reduction o r
elirn.:.nation of ... ries at Ear;,az C Gulch (the reduction) lasts
for less than 24 i. __ rs , Enql ewcod s~all not ow e Denver any
compe~sacion. :or any period of re~uction in excess of 24
hours, Englewood shall pay Cenver fc: the amount of water not
delivered due co the inte=:~Ft!on cc the extent the i ~terruption
la sts more than 24 hours. For exa.rncle, in event of a
inter=uction that lasts ~O hou~s, E~clewood would owe Denver for '
the amcunt of wace= not delive:ed fc~ the last six hours.
Englewood shall pa y Denver for such wate r at Denv er's lowest
then current Outside City :aw water =ate when th e interruption
occurs.
2.1.5 !nt e:=:;cci on :er Ma :nter.ance. Enalewood shall
perfcrm a~y ma1ntc~ance worK re~uir:~g either-a complete or
partial shut-cf! of deliveries in c_i:y Ditch wi th t he utmost
expediency t o minimize water lesses. Engiewocd shall, except :n
emergency situat:cns, noti:y Denver of all ccm~lete or part:al
shuc o :f at l east 48 hours in advance .
2.!.E Wa:~= c ~a!itv. En9 !ewood makes no warranty as cc
che auality or the wace : cel!vered cc Den v{1, and Denver will
acce~t same ''as is 1
'.
2.2 £nclewood's Ooerationa! Resoons::.bilit '.·. Englewo od 5h.:l!
cont~~ue cc cperace a~c ma!~t21n City Dice ~ rrom the Chatfield
Reservoir ouclec wor ks co the r.a=varc Gulc~ blow-of f. Englewood
s hall prcvide water cc meet Den ve r's de!!very obli~ar i ons to the
cresenc conc:act us e:s on City Ditch souch of r.arvard Gulch, but such
deliver:es shall not be in excess of the contract rights co water
which may be ~i verced :;nd er Denve ='s Ci t y Ditch priorities .
2 .2.l . .11J1nt:al Insoec ticr .. Re~resencacives of Englewood •
I
•
and Denver ~ill per!c:m a~nual JC 1nc inspections of City Ditch
co determine ma1 nc~nanc e work reou 1red co continue to delive r
cne races of flow sec torch aoovi. The 1nspeccion wLll be
limic ed co the reach between the valve at the end of the Corps'
Ch at fi eld Dam outlet manifold and piping system and Harvar j
Gulch. Th e annua l in soecc1on sh all be mad e so that all reauired
maintenance work w1ll be com p le ted, co the extent p:acticai,
prior co Aprill.
2.2.2 Littlecon Cemecerv. cnc l e~ood accepts full
respor.sibility ro r performance of uenver 's obligations unde r
ch at certain acreemenc between Denve r and the Littleton Cemecerv
.r..ssoc:ation CaCed May 1~. 193::, ac:ached hereto and marked ·
"Ext:iti t E", so a s to relleve Denver o f a ny l ia bil i:y ....,i ct
:es pec t theretc . Denver has ass 1qn ed a l l 1cs rights and
ctl:qac i on s ~n c e r =~at a q:eem en: :c ~~qlewoo C.
,.~ :enver's Ocerac1cn al Resocns!t!l::v. Denv er 5hall continu e
co o perate ana maintain C1ty D:cc~ no :ch c! Harvard Gulch, and shall
maintain the Harv.arc Gu lch blow -off s t ruc:ure ·at Denver 1 s sole
ex~ense . Denve= shall be solely respc;.sible fe r supply i ng a l l
cont=act users who diver: :rem City Di ec~ nor:h of Harvard Gulch from
th e 10 or 13 cfs co be Frov1CeC he=eunCer. Sn~iewood shall have no
respo r.si bi l ity for operacicn or maintenance of City Ditch north of
Harvard Gulch .
2.4 Fees C~araed to Contract Use=s. Enclewood will be
respo~sible re: charging fees cc contract us ers who divert south c f
r.arvard Gulch, inc ludinc escablishina fees, billinc, and receivinc
and ret a ining payments. -Englewood will maintain nOnnal business -
facilit i es and reccrCs f o r such colleccicns , and annually advi se
Denve r of Faymenc er non -pay-»ie n:. De nv er will set fees, bill,
receive and reta i n pa _ym ent ==cm cont.:act t.:se=s ....-ho divert north of
Harva=d Gulch.
2.5 Rioht o f ~e version or Accuisitio~. Denver retains t h e
r 1chc o f reve.:sion as co an v co ntractual r1cht for which an annual
serv:ce charge i s nee paid by May 21 of any.year. Denve r also
retains the righ t to acauir e anv contractual riaht in the City Di tch.
~xcecc as co thes e ccnc=accs thac take wicer nc =t h of Harvard Gulch ,
any Such re version or acqui si t:on shall :ncrease the amount o f water
whic h Sna lewo od i s oblicated to deliver to Denve r; provide d that,
Denver :t?.:.rn.burses Eng l e•;ood as provi ded i n ~a=ag:aph 2. E; and
prov ld ed furcter , Denv er is re s po ns i ble fo r any imp:o veme nts to the
Ci ;:y Ditch required tc ccnvey s uch water north of the tt::nout of the
cont:ccc use rs wh :ch Denve r accuires bv ourc ~ase or :e version. If
Den ver accu1 :es ccnc :2ct in cheS which no~ di vert south of All en
Fi ice : ?line for de livery nor :h o f the filte= p l ane, then Denve r will
ma ke s uch 1rnprovemencs, i f n e ce ssary, t o preve :'.t t he dimi nut ion of
·h e ex1sc:ng c a i;ac ity !Z Scfs) co Englewood.
2.E Den ver's Share of Citv Ditch Exoenses .
2 .6.1 Reimbursable Exoenses. Denver shall pay a portion
of the annu a l aam1n1strac1on, o oeracion, and ma inten ance
a:q:1:nses I 1n c lud1ng depreciac1on l I "City Dit ch Costs") for the
City Ditch incurred by Englew ood when Englewood delivers water
under th e City Ditch Water Rights for use by Denver . The City
Di tch Water Rights are those rights dec~eed to the Ci t y Ditch
1a.k .a., Placce Water Comp any's Ditch) as evidence d by decree of
ch e Dist!:cc Cour t of Dougla s Councy , ad j udic~ting wace= rights
:~ fc ::ne = Wate r Discrict Ne. E, ence:-ed er. December 10, 188 j .
Th e City Ditch Coses shall exc !ude any a nd all costs assoc i ated
•~ith the pump station located en t he City Ditch whi ch de li vers
wacer from the City Ditch to McLellan Reservoir ("McLellan Pump
Scauon"I and cost s associated with any expansion or
im pr ov ements of t he e xisting t urnout from che Ci ty Ditch which
de l iv ers wace= co Enq lewood 's Allen f i!te ! Plant . The City
D:tc:'l C::sr::s c:r e ~c be dece rm.1ned t y th e s·J.m of t he fol l ow1rn;:
Al cpe rac ion expenses fro m April t ~r ough Octob er,
inclusive, and main tena nce ex~enses that occu r throughou t the
ye ar fo r chat part of t he Ci t y Dice~ no rcj of t he McLe l l an P=p
Scac icn multi p li ed by th e ratio o f the a~nual volume o f water
diverted un der the Ci ty Ditch Water Rights divided by the t o tal
cf -the annual vo l um e of water diver:ed und er the City Ditch
Water Right s p l us the a nnua l volume of all other water Englewood
may deliver cc che Allen Filter Flcnt nor:h of the McLellan Pump
Station; plus
El sixty percent (6 0 %1 of the operation and maintenance
exp enses from April through October, inclusive, fer t he part of
the City Dit ch south o f t h e McLellan Pump Station ; plus
CJ sixty pe r cent (60%) of o r.l y the ma int enance exp ens es
from Novembe r t hrough March , i nclusive, f o r that pa r t of the
City Ditch south of the McLellan Pump Station.
The 60 % represent s the pe rce nta ge of t he c urrent capac ity
(56 c f sl o f the ri ped portion of the City Di tch between Ch atf i eld
ou tlet manifo ld and t he McLellan Pumo Stat ion that the fo r mer
op en ditch could carry through thi s):each (35cfs).
Denv er's portion of the City Ditch Ccsts s hall be determin ed by
cak i ng t he Ci ty Ditch Costs c a lcul ated as d escribed above and
multipli ed by six t y on e percent (61%). This factor shall remai n
con stant e ven after Denver make s imp r ov ements to t he Ci t y Ditch
condu i t ~ur sua n t to paragra ph 2.1.2 . and i nc:eases it s r i gh t to
receive wac er t r.e reb y; pr o v i ded ho wever, that shou ld De nver
suc :eed t o the r ights of any present contract users south of
~arvard Gulch , De nver shall pay si x (6 1 pe:cent of tot al City
Ditch Ccsts for ea ch cn e cubi c feet ~e r second o f wat er co which
Gen ver s ucceeds {fractions of a cfs Co which Denve= succeeds
'
shall be i:ro racedl. .r..n example of a calculation of the City •
Ditch Coses is depicted in Exh1 b1t A.
'
•
2.6.2 Caoital Ccsts. Enalewood shall not charoe Den ve r
for c~~y U1ccn cap1car ccsts teXcepc for ceprec1at1on·wh1ch shall
be incluced 1n operat~on and ma!ntenance exp e ns es and calculated
under generally a ccepted accounting procedures cons ist ent ly
ap pl i edl. Capital cc sts are the co ses for cons tructi on of any
new physical structure o r improvements co existing scruccures
chat will have a useful life of five vears or more. Th e U.S .
. ~.rmy C::::=s cf E:ng ::-:e!=rs fCcq:s/ co es riot ~resently charge
Eng lewooc :er cc scs associated w1ch the r:ght -o f-way for
carriage cf City Diec~ wat er through t he Corp s' Chat!ielc
~eservoir !ac.:!ities. Any :ucure coses a.:sessed by th e Corps
shall be ccnsidered an o~eracicns and ma:ncenanc e expense wh1cr.
canoe c~arqec tc Den ver unde r pa:aqraph 2 .6.l.
2.7 Wa ce: ~!c~:s. ~~;:ewocc ~:!: dlve:c =~ Genver's City Git::~
r=:ricric:es 1., c :ae!' to ob;:a :r. the a :nc1.::-:c c: water necessary fer the
~e l !ver1es co Ce~ver an~ cc the cc~::ac: ~s e ~s oche r than Denver or
Eng lewo od. Denver shall nee contest Englewoc~'s claim of ownership
by ccncrac c or oth erw i se cc divert up cc 3.21 c:s und er the senior
pricr:cy of 30 cfs dec=eed to City Ditcj wich an approFr:acion and
priority dace of November 2E, 1860, as evic:enced by dec=ee of che
. Disc=ict Cou:c of Douglas County, adjuCicac :m; wa•.er rights in former
Water District E, entered on December 10 , 186 3 . l"ngl ewood has che
reversionary r iqht as the co -ca rrier only cc it s C1ty Ditch concrac:s
up co 3.2 1 cfs . Denver does not warrant t!cle co or ~~~ legal or
phys!cal ava:l~bility of cte 3.21 c!s claimed by Englewooa.
2.8 Use cf Imo aired Cacacitv. Tc whacever exc enc the ca=ryinq
capac ity of cne aitch 1s ~mp21red fer reason s be yond the control of
Englewood anc: unc:l th e ditch can be restored by reasonable
dilicer.ce, c:ien th e deliverv race below the ob sc:uction shall be
based upon each party's pro::a ta deliveries of City Ditch water
u:ide:-this .t.qreement. If t :i e i.;71paired c ai:a c:cy is due to failure cc
adequ a:ely ma:ncain the City Di tch souch of Harvard Gulch {such as
removal of s ilt or removal ot debrisJ, then Denver's riohcs co
deli~ery up co 13 cfs shall be paramou~c and En;lewood'i rights co
its wate r seccnd ary until the di tch is restore~.
2.9 Use of C!.tv Ditcr. Excess Ca caciEv. r: E:r:glewocd dece.rrr,i;-,es
the City Ditcn has excess ca~ac1ty, t hen Enqiewood will deliver
Denver's remain1na City Ditch entit l ement; crovided chat such
delive r ~es do noc · in terfere w:ch Englewood'S prior obligations o z:
ince :fere wi:h 1t s (o r its lessee 's) present or :uture use of the Cicv
Ditch. .
2.10 ~tc:rn Dra1 naa e 1~tc Citv Dice~. Water in excess of the
neecs of the !.:Ser s :rom t h e C;.~y Ditch ( "exce ss wace!""l will be
d~'T!ced a: fcllcws: .rdl excess ·...;acer i:1 t:od uc ed o r collected in Citv
DitCh south ct th e turnout 1nto Little Drv C eek •,..iill be du.meed i nCo
Litt l e D:y C:eek. ~xcess wacer 1n croducea c collected in city Diec~
north cf the turnout ir.co Little Dry Creek w 11 be dumped ac the
' .
ca r vard Gulch blow-o ff in tc Genver's sccrm drainage system. •
2:1glewood may nae rede.s:1gr., recons c .:-uct, modify o r change City Di tch
s0 as to inc:ease che cmo unc ct st o rm cra1nage water that presently
collects 1n and 1s carried by City Ditch between Little Dry Creek and
~arvard Gulch without the prior written consent of Denver. Any
mod ification, replacement or reconstr uction of the existing dump
:acilities or co n struction of new dl!Ill o fac1lit1es at Harvard Gulch
s ~all be performed i n accordance w1th 0 pla ns and speci fica ti on s
~:epared b y an e~g in ee: accep ceC by Eo~iewood and Denver as qual i fied
and competent.
rrr. MJSC~tu.m:ous PROVISIONS
.: .l Cc lcul c.t ::in ::: t:':e _:_1,c:.::-.: c: ~:-::;er:ses !nc ur:ed w1c h ;escec:
tc C1cv D:cc~ enc n1on Lin e. De nver enc ~nqJ.ewooo's expe nses
.R1e::e u noer snalJ. con sist o r C:!:ec t l abo :-1 ii.C-t er i als, equipment,
ve hicles, and c ·er!"lead f acim:n:s::cc:cr., toc !s, benefit s and leaves)
necessar v to pe r form t he ac t:vic:es ur.d e= t~is Acreernent. Whatever
cype of Exp e nses c h arged fo r by on e parry may alSo be charged by t he
et her. f or examcle, i: Denve: includes as an administrative exnen se
an amount for pa~roll perso~~e !, Englewood may also, but the arn~unt
and methodology should be cased on the respect ive expenditures of
each party. Each party shall keep reasor.able and consistent =ecorcs
o f :ts hours of direct !abcr and s~oervision, material costs, f:i nce
benefits and oth er payr oll l ev:es ~nc esc:~m ent usage upon whic:0 its '
c osts are based and the me t hodology used by each party to calcu l ate
s uch c h aroes. Such records s hall be ke ct fer at least three calendar
years b eyond th e calencar year during which they wer e incurred, and
s hall be available for ins pec:ion by re~r e sen t aci ves of the oche r
part y du ring al l reascnable business r (;ur !:. Each par ty's docu.-nents
whic~ s how the method o f calc~!at i cn o~ :c sts s hall be simi l arly
a va~laol e fo r inspection.
3.2 Denver's Citv Ditch Wat e . Ricr.cs. Nothing herein shall b e
ccr.strued co arfecc De nver's c wne:-s n'ip o r it s Ci ty Di tch Wate::-
Rigtts (except as provided in Faragraph •. 7).
3.3 Previous Aa re~ments. This Aq reeme~t s uce:sedes the
J..g reemen c of February E:, 15,0 ana any amendments thereto.
J.4 Col or ado La w. Thi s Agre ~men t s hal l b e c on strued und er
Coicracio law.
J.5 Incecrc t i on . Thi s Agreement consc!cuces the enci:e
acr eem e nt between c he ~arcies. I t s up e:sedes any prior agreenents o r
unde :standi ng s between the pa:cies.
3 .6 Succe~sors. !~e ri~~cs o f each ~arty cc re cei v e deli v e=ies
s hall be b1nc1ng upon the successo r.
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3. 7 ~-Charges co each parcy for administration,
oceracicn and maintenanc e e xoense s incurred Curinc each cale~dar year
s~al l oe bil l ed on or be fore.March l, of the succ~eding ye ar anct
pa ym ent shall b e du e 1o1ithin thirty 13 0) d a ys of rec e i pt of bi lling .
3.E Charter Provisions. This Aoreement i s made und er and
con !ormable co provisions of Sections C4 .14 through C4.35 of th e
Char :er of the City and County of Denver a nd th e provisio ns of th e
C1":a=:er c! c :i e C1cy o f Englewood. !i;sofar as applicat:l e, said
Charcer ~rov1s1ons are inccrpor cted h erein and made a part hereof by
er.is refer e nce , and sh a ll supersede any apparently conflictin9
~rcv:sicns otherwis e contai ned in this Agreement.
3. 9 Term of Aareemenc. This Agreement shall be perpetual.
~.!: ~~!ec:ive Ca t e. Th:s Agreement shall be eifect !ve Cfi
Jarn.::ry :, 1996 t or purposes cf calc-..:l at.!.:ig charges and Celiver!es
he re unde r .
ATTEET:
.I :::::~
~ C~-
CITY J.ND COUNTY or DDWER
actino ~v a nd throuah its
BOlJUl ·or ·w;.TER COMMISSIONERS
Ey:~r£C&
Pr'e s1cenc
REGisr7~-D AN D COUNTERSIGNED
Donald . Mare s , Audito r
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,1 ~ L. <---
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P.anning Division
APPROVED :
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CITY o r OIGL<.--WOCD, COLORAD O
Exhibit A
Examp le of Calc ul.::uio n for De term ining Den ver's Pon ion of Ciry Ditch Costs
~ (Example Only)
. Calc;,laijon
Englewood's operat ion c,penscs from Apri l th rough October,
inclusiv e, and annual ma in1enance expenses nonh of Mclellan
P ump S1ation
Englewood 's operauon and maintenance expenses from
April 1hrough Oc1ob er, incl usi ve, south of Mclellan Pump
S ta tion
Englewood's ma in1enance c.penses from No vember 1hrough
March, inclus iv e, so ut h o f Mclell an Pump S1a1 ion
An nuaJ volume of wa1cr div cned under Ci ty Ditch Wa1er Rights
Ann ual volume of all water del iver ed by Englewood 10 Allen
Treaiment Planr 01her 1han City Ditch \l, ,ter Rights
Cirv Ditch Com
SI6~.u oo
S I 0,000
S 5,00 0
8,100 acre-feet
700 acre-feet
I) SJ 60 ,00 0 (8 JO O a.f.) Sl47,272.7J
2)
3)
60% x I 0,000 =
60% X 5,000 =
(8,100 Lf. + 700 Lf.)
De nver's Ponion of Ciry Dit ch Costs
6 I% x SI 56,2 72 .73 = $95 ,326 .37
S 6,000
S-1.QQQ
Sl56 ,272 .73
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lf Den ver were 10 succeed 10 20 inches of Citv Ditch coniracts th en Denver 's costs would
be de1erm ined as follows : •
20 inc hes a 0.521 cfs
38 .4 inche s/cfs
O 52 1 cfs x 6% (i nc rease to Den ver's 6 I% for each cfs) = l .125%
or 6 1% + J .125 % = 64 .125%
64 . I 25'1/, x SI 56 ,2 72.73 a SI 00 ,209 .89 •
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Water Supply and Facilities Agreement
Exhibit''J"
Agreement between Den ve r and Littleton Ce me tery Association dated
May 23 , 1933
., ___ ._:/·
------.="""="=-~-----------
:11., NOJ~I B~ 'I.a JOd \\;
Ag~eement, made th1 s J.L2l_ day of ~-~--'.''', __ ,
bet.;1eea the Ci i:,· and Cv1.:n:.:,· o:~ De:iver I acti::.5 bt and
through it s ~oa:d of dater Coz,,missioners, first party, and
Littleton Cemete!"y A?~oc:.2.tion, a non·•S>rofit corporation, of
7Titne!seth that wj1e:.:-a! the first party o\1n! e.nci
:-ights eY i d e nc ed by one sta:-e c;:' ~ile capital stock of The
Ne \<~:i.s :J .-:.-n F.oldir..g Coopeny anC C.e!ir es to have the point o't
c:v ,~sion of the ~ate r ri&}lts ev i~enced by said Nevada stock
c:'le.nged to the intake of S ' ~d Ci t:,· Ditch and de!ires fur':her to
ta•1 e the ';':'ater evide!lced ·cy said !ievada stock carried in !aid
City Ditch; a:,d,
7Tnerea!, i; i s sati!!actcry to the fir!t pa:t y to
c;~=-:-1 sai:: water ir. t:Ce City Ji tc::. upon the terms and condi-
t i on! hereins.!'ter stated;
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tl:ere!'c:e I i:i con:i:i<!.eration of tb.eir mutual
ag:ee:ents the partiee hereto have agreed with each other a!
fol!ows 1
1 . The second party at its own ex!)ense will se c ure
such change of point of d lv e:s:cn of the water rights repre-
se:,t ed by it s share of !Tevada stock t o the i n take of the City
Di :ch and the first pa:ty '"ill cc-:y such ,,ater in sai d City
Di tch ~o a pci~t in ~he Littleton cemetery.
2, The second pa rty at !ts own ex;,ense will install
'
a beadgate in the eut bank of tho canai. of t hP. City Di tcb and •
a ,iJ ort flume le;,.din& :frcm saic! headgate to a. :hree inch Venturi
t;r!i:-and a short :1 ·Jme leading !rem said weir to a pipe line
----..,,;~rr'.l."°1:i~.-.u.,....,.Ci'"''c.,,--:NO:-:,--d.,.,-..,.,..ol,-----------·---· ·--·
and t bence to a sump where a pump will be installed and the
flater pumped as tb e second party shall determir.!.
3 . The cost of i nstalling saiC headgate, weir,
sump, pum p s.nd their appliances and maintaining the ::e.me
!hall · .. ~ borne by the !econd party.
4 . The first pa~ty shall make no other charge for
ca.rr y 1ng :;a: d wate!" in tbe City Ditch t:lan the usual charge
for c~rr;~in~ a like amount of Cit) :itch v12.te r therein .
The firs t party shall Cav e th e ::-ight to discon~
tinue c ~:::-y ing sai d 1:evada r.a.ter i r.: so.id r i ty T)i tch at a.DY
t i me r.hen tbe carriage thereof shall !nterfere, in the opin ..
ion of th e engineer:: of the first pG:ty , with the carriage of
City Ditcil ·r.ater ic said dit~h a."ld ~tall also have tbe right
to stop such carrio.ge in case the City Ditch i! ever abandoned
e., e. cs=:-!er o'f C~ty Dit~h wate:-,
In Witnes5 Whe~eof, the pa=ties he reto have caus~d
thi~ instrument to be e,c,e:-:ut.ed in tr i plicatf" by the proper of-
fice:-! of ..__..._e pa:t!es beret o a.e of the day of the date hereof.
Littleton Cemetery Association,
Attest: Ey __ ,....,.,;~~-'•"-'c..::="':,,::ap-_"'e"-e"'i..,_ci_e_n_t ____ _
Ap~r .;~ed as to f orm:
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Dale
February 18, 2003
COU NCIL COMMUN ICATI ON
Age nda Item
10 a V
1 STAFF SOURCE
Sub j ect
Cen ten nial Wa ter Supply and
Fac iliti es Agreemen t
INITI ATED BY
Uti lities Depa rtm ent I Stewa rt Fonda, Direc to r of U til iti es
COUN CIL GOAL AN D PRE VIO US COU NCIL ACT ION
Pri o r Water Supply Ag ree m ent w ith Mission Viejo dated November 3, 1980. Centennial Wat er Supply
Tem r orary Ag reement dated December 1, 1997.
RECOM MEN DED ACT ION
TI1 e Englewood Water Bo ard, at the ir January 14, 2003 mee ting, reco mm ende d Cou ncil approva l o f the
Englewood-Cent~nn ial Water Supply and Faci li ti es Agreement.
BACKGRO UND , ANA LYS IS, AND ALTERN ATI VES ID EN TIFIED
The C ity of Englewood has leased its surplus raw w at er to th e Centennial Wa ter District for ove r twenty
ye ars . Th e parties have found it mutu all y beneficia l to rewrite th e agreem ent. The ess ential provisions of
th e new agr ee ment and a comparis on to the old ag ree ment are contain ed in th e exec utive Summary
allached here to.
It sho uld be not ed that the ag reement be comes effec tive Janu ary 1, 2003, an d tha t all provisio ns o f the
ag ree men t are retroa cti ve to that dat e.
FI NANC IAL IMPACT
The valu e of th e water and facili ti es leased is p rese nt ed in th e Execu tive Summary. All unit prices and rental
rates are adjust ed an nu all y on th e ba sis of th e co nsu mer price index o r by app raisa l.
LI ST O F ATTAC HME NT S
Proposed Bill for ar. O rdin ance
Executive Sum mar/
Englewood • Cen tmnial Temporary Ag ree men t