HomeMy WebLinkAbout1996-04-09 WSB AGENDA1.
2 .
3 •
4.
5.
6.
AGENDA
ENGLEWOOD WATER AND SEWER BOARD
APRIL 9, 1996
5:00 p.m.
** COMMUNITY ROOM **
MINUTES OF THE MARCH 12, 1996 WATER & SEWER
BOARD. (ATT. 1)
ARTICLE FROM "HIGHLANDER" DATED 10-12-95.
"RANCH HAS PLENTY OF WATER FOR DEVELOPMENT"
(ATT. 2)
SERVICE POLICIES FOR CITY OF ENGLEWOOD
UTILITIES DEPT. -JOHN BOCK AND TOM BRENNAN.
(ATT. 3)
PRELIMINARY DESIGN PROPOSAL FROM CDM. (ATT. 4)
PROPOSAL TO LEASE DITCH AND MANIFOLD CAPACITY
IN THE LAST CHANCE DITCH AND NEVADA DITCH TO
CENTENNIAL. (ATT. 5)
OTHER.
WATER AND SEWER BOARD
MINUTES
MARCH 12, 1996
ATT.
The meeting was called to order at 5:03 p.m.
Chairman Fullerton declared a quorum present.
Members present:
Members absent;
Also present:
Fullerton, Habenicht, Higday
Neumann, Otis, Resley,
Vobejda, Wiggins
Burns
Stewart Fonda, Director of
Utilities
John Bock, Mgr. Of Admin.
Bill McCormick, Operations
Supt.
1) MINUTES OF THE FEBRUARY 13, 1996 MEETING.
The Englewood Water and Sewer Board Minutes from the
February 13, 1996 meeting were approved as amended.
Mr. Vobejda moved;
Ms. Neumann seconded:
Ayes:
Nays:
Members absent;
Motion carried.
To approve the February 13,
1996 Englewood Water and Sewer
Board Minutes as amended.
Fullerton, Habenicht, Higday
Neumann, Otis, Resley,
Vobe j da, Wiggins
None
Burns
I
2) SOUTHGATE SUPPLEMENT #128.
The Board received a copy of Southgate Supplement #128 for
inclusion of approximately 87.89 acres into the Southgate
Sanitation District.
The current zoning per Douglas County is ER/DEO (Estate
Residential/Design Enhancement overlay), with an approved
lotting plan for 151 single-family dwelling units. Service
to the site will be provided by a gravity sewer system
flowing northerly through Carriage Club Filings No. 2 and
No. 3 and ultimately to Lincoln Avenue. U.S. Home
Corporation is the owner. The site is located at
approximately County Line Rd. and Lincoln.
Mr. Otis moved;
Ms. Neumann seconded:
Ayes:
Nays:
Members absent;
Motion carried.
To recommend Council approval
of Southgate Supplement #128.
Fullerton, Habenicht, Higday
Neumann, Otis, Resley,
Vobejda, Wiggins
None
Burns
3. S. ENGLEWOOD SAN. DISTRICT -COLLECTION OF TAP FEES.
The Board received a copy of a memo to Dan Brotzman, City
Attorney from Nancy Reid, Assistant City Attorney. Nancy
Reid noted that if Englewood does contract with South
Englewood Sanitation District #1 to collect their tap fees,
it would need to be one in which South Englewood Sanitation
District was the party ultimately responsible if the City
failed in a good faith effort to collect the fees. Ms. Reid
also noted the recent ruling of 12-2-4 E.M.C.; that if
sanitation fees and charges are not paid, the charges become
a lien which is enforceable by action at law to enforce the
lien including assessment to the County Treasurer.
4. STEWART FONDA -AWWA SECTION DIRECTOR.
A copy of an article from the AWWA newspaper, "Mainstream"
was distributed. It announces that Stewart Fonda was one of
five section directors elected to the one-year position of
vice-president.
5. BENEFICIAL REUSE ARTICLE.
An article appeared in the Denver Post announcing that
sludge from the Bi-city Wastewater Treatment Plant will be
used on wheat fields in northeast Colorado in a pilot
project. The farm will be closing on March 15, 1996.
6. SENATE BILL #4
Stu discussed the defeat of Senate Bi ll #4.
recommended that letters of appreciation be
Tom Blickensterfer and Representative Wayne
them for their help and participation.
7. FUNDING FOR WATER SYSTEM IMPROVEMENTS.
The Board
sent to Senator
Knox thanking
Stu discussed and reviewed financing alternatives and the
bond funding for the proposed improvements to the City's
water treatment and distr i bution system. Stu outlined the
short-term interim and long-term financing plan.
The meeting adjourned at 5:25 p.m.
The next Water and Sewer Board meeting will be April 9, 1996
at 5:00 p.m. in Conference Room A.
Respectfully submitted,
Cathy Burrage
Recording Secretary
The Board called for a motion regarding the rate increase
for Allen Filter Plant improvements. The proposed increases
in water services charges are 9.0% on July 1, 1996, 9.0% on
January 1, 1997, 8.0% on January 1, 1998 and 8.0% on January
1, 1999.
Alex moved;
Ms. Neuamnn seconded:
Ayes:
Nays:
Members absent;
Motion carried.
To recommend Council approval
of the proposed resolution
which increases water rates to
fund a major capital
improvement program.
Fullerton, Habenicht, Higday
Neumann, Otis, Resley,
Vobejda, Wiggins
None
Burns
The Executive Session portion of the Water and sewer Board
meeting was adjourned at 6:50 p.m.
PUBLIC :MEETING
MARCH 12, 1996
5 :30 P .M.
WITH THE ENGLEWOOD WATER AND SEWER BOARD
WATER RATE INCREASE
A public meeting was held , as advertised , to discuss the proposed water rate increase.
The following Englewood citizens were present:
Karl and Jan Kerge -4790 S. Lipan
David Hansen -4511 S. Galapago
F . and B. Miller -4540 S . Inca Dr.
Stan Lange -3535 S. Clarkson St., #405
Scott McClurks -3270 S. Lafayette
Mac Wade -2903 W . Layton Ave .
Don Roth -2830 S . Sherman St.
The following Englewood employees and representatives were present :
Michael Zafer -Camp Dresser & McKee
Bill McCormick, Allen Filter Plant
Stu Fonda, Director of Utilities
John Bock, Customer Service -Utilities
Steve Smith -Landmark, Inc .
Carl Houck -Camp Dresser & McKee
Stu Fonda and Carl Houck outlined the proposed rate increase for Allen Plant
improvements which includes new flock-sedimentation system, filter upgrades , disinfection
improvements, iron and manganese control system, raw water deliver system and other
misc . improvements .
A question and answer session followed . Citizen response was favorable . Only one
citizen voiced an objection regarding being on fixed income with a rate increase pending.
The public meeting was declared closed at 6 :45 p.m.
('\(
~
~
<(
Ranch has plenty of water for development
Editor's note: Tn< following is part of a
series of arcic!es on ~ .. :acer in Douglas
Cour.~. O!lrer anicles in rhe saies appear
on page 6r\.
Bv Pete Lewis
Highlander Editor /0--11-'q~
H'ghlands Ranch's rapid growth and
dev<lopment may be associated with numer-
ous problems. but running out of water is
one worry residents won't have .10 face,
according to officials with Centennjal \Vater
and Sanitation District.
'"Highlands Ranch is a planned commu-
nitv and water always has been pan of the
pion."' said Paul Grundemann, assistant gen-
eral manager for Centennial Water and
Sanitation District.
C'ntennial Water and Sanitation District
is responsible for supplying Highlands
Ranch's water and treating its waste water.
•The district employs about 35 employees.
from operations personal who maintain the
distric:'s wells and 1rea1menl facilities 10 a
ti::am of waler resource engine!:rs responsi-
ble for acquiring rights 10 additional waler.
Providing adequa1e wa1er for the long
run always has been a priority for Mission
Viejo Co., Highlands Ranch ·s developer,
said Centennial General Manager John
Hendrick. Hendrick shou Id know. He was
one of the water consul1an1s Mission Viejo
hired in 1978 lo assess the water potential of
lhe area and develop i1s wa1er facilities plan.
"Before Mission exercised its opt ion on
the. property and before they inves1ed their
money in development, they wanted 10
make sure there would be enough waler 10
comple1e lhe project," Hendrick said.
One of the a11rac1ive aspects of 1he prop-
eny was its pro.,imity to the Plate River and
the fact that ii came wi1h existing surface
water rights, Hendrick said.
Highlands Ranch is one of the few
Douglas County community's with a water
ponfolio consisting of both ground and sur-
face water.
Wat<r rights are complicated and depen-
dent on availability, seniority and other fac-
tors. In a typical ye:u Centennial has the
rights 10 about 10,000 10 11,000 acre feel of
surface water. Grundemann said.
An acre foot is a standard unit of mea-
surement that equals the amoun1 of water
required to cover an acre of land 10 a depth
of one foot. !1 is about 325,851 gallons.
[n addition lo surface water which
Centennial pumps from the Plate River, the
district has the right to pump 17,500 acre
feot of ground water each year.
Cenlennial has about 20 wells drilled
throughout Highlands Ranch. About 12 of
these wells are in service. As the communi-
ty develops, Ccotennial installs pumps in
existing wel!s or drills additional wells to
rnee: the need.
Centennial's long-term plan calls for
more than 40 operaling wells when
Highlands Ranch is complete.
In a typical year. surface water accounts
for about 2/3 of Highlands Ranch's water.
consumption, Grundemann said. During
"wet" years like 1995 when surface wa1er is
plentiful and therefore inexpensive,
Grundemann said 75 10 SO percent of the
community's water will be surface water.
"My operational plan is to use surface
water, which is renewable, first and mini-
mize our use of ground water, which isn't,"
Grundemann said.
This year, Highlands Ranch has drawn
about 5,000 acre feet of surface water and
used another 1,000 acre feel of ground
water, Grundemann said. Grundemann said
he expects the community will use 7,500 10
8,000 acre feet of water in 1995.
Highlands Ranch is about 1/3 complete
with about 11,000 homes occupied. The
community is planed for 36,000 residential
unites as well as parks, schools, churches
and commercial development, parks which
also use water.
Every residential unit gets one 3/-1-inch
water tap . Other users are measured in units
of single-family equivalents. A commercial
project, for example, may require a 1ap with
the capacity of 18 single-family equivalents.
At buildout, Centennial plans 10 have
waiec capacity for 5.!,000 single-familv
equi valents. Hendrick said. ·
A residential unit uses an average of 1/2-
acre foo t of wa1er per year, Grunde:nann
said . Wi1h 36,000 planned residential units.
Highlands Ranch's annual residentia.I wat~r
consumption should be about 18,000 acre
feet. Total water consur.iption is anticipated
10 be about 25,500 acre feel per year ar
-buildout, Grundemann said.
Wi1h annual ri ts 10 17,500 acre feet oj
ground water and 1 , 00 10 11,000 acre ice:
of surface water. Hendric k is confident !Fie
community wi ll not ou12row its water siiP..
ply . However, Centennial sttll3CiiVeiiJ,u_r-
s.ues additional surface water acquisitions,
Hendrick said.
Cen1e nnial's storage c:pabili1y is another
COmpon~nt lO its WJ[Cf :?TSCnll. C~nten:iial
is pennined 10 store ~.000 acre feel oi w::<e
in McClellan Reservoi r. Centennial leases
213 of the reservoir across Countv line
Road between Broadway and Sa~la Fe
See WATER, page 3 . .\
--;?
SERVICE LINE AND STOP BOX
REPAIR, MAINTENANCE AND OWNERSHIP
RESPONSIBILITIES
A IT. 3
SHOULD THE CITY ASSIST THE RESIDENT IN MAINTAINING THEIR
SERVICE LINE?
1. Leaking -
What the Code states:
The resident owns the entire service line. The City
may, at its option, but is not obligated to, repair the
portion in the public right-of-way.
What the Utilities Department is currently doing:
When a service line leaks in the public right-of-way,
we will repair it. When a service line leaks on
private property, we tell the homeowner that it is
their responsibility. We perform none of these
services for customer classes other than single family
residential.
Options:
A.
B.
Resident responsible for the entire length of
service line.
City is responsible for the entire length of
service line.
City is responsible for the section located in the
public right-of-way and resident is responsible
for the section located on their property.
2. Frozen Lines -
What the Code states:
The resident owns the entire service line. The City
may, at its option, but is not obligated to, thaw the
portion in the public right-of-way. The Code makes
special provisions for thawing service lines on private
property in terms of cost recovery.
What the Utilities Department is currently doing:
When a service line freezes in the public right-of-way,
we will thaw it, either with a welder or a hotsy. When
a service line freezes on private property, we are not
obligated to thaw it, but have been assisting whenever
a service line was frozen. We perform none of these
services for customer classes other than single family
residential.
Options:
A. Resident responsible for thawing. ® City will assist thawing.
3. Lead/Galvanized Line -
What the Code states:
The city Code does not specifically address situations
involving the repair, replacement, or failure of lead
or galvanized service lines other than those generally
listed above for leaking and freezing. Our current
standard is type "K" copper pipe.
What the Utilities Department is doing:
If the resident replaces the portion on private
property with copper, the City will replace the portion
in the street at no cost to the customer. When the
City installs a meter pit, if the service line is lead
or galvanized steel, we will replace it with copper at
no cost to the customer from the street to the property
line. From the curb stop to the house, the customer
must replace.
Options:
A. City will, if mandated, force resident to replace
entire service line.
~ City will replace entire service line. 0 Split responsibility at property line if resident
replaces their side of the service line.
D. City will replace section in the public right-of-
way.
City will replace section of service line in
public right-of-way when doing a meter pit
installation.
4. Poor Flow Characteristics -
What the Code states:
The City Code does not specifically address this issue
other than to state that the service line is the
property and responsibility of the property owner.
What the Utilities Department is doing:
The City does not repair, replace or maintain service
pipes that are partially blocked. If a property owner
agrees, the City will excavate the service line at the
curb stop so the property owner can hire their own
plumber to clean the service line. The City back-fills
the excavation. This service is offered in the
southern part of Englewood where there are problems,
caused by the City's use many years ago of a certain
treatment chemical.
Options:
A. Resident responsible for entire service line.
B. City is responsible for entire service line.
fC) City/Owner split responsibility at the property
'-:.} line.
WHO SHOULD BE RESPONSIBLE FOR MAINTAINING THE CURB STOP
VALVE ON THE RESIDENT'S SERVICE LINE?
Curb stops are the only means to shut off the service line
without excavating the main line. Service lines are shut
off for three reasons: failure to pay an outstanding water
bill, resident's inside shut-off valve is not functional, or
the City is doing main line cleaning. The curb stop valve
is located at the property line.
What the Code states:
The City Code clearly makes the repair and maintenance
of the curb stop the property owner's responsibility.
What the Utilities Department is doing:
The City does not repair broken or defective curb stops
except in the case where the valve fails when a Water
Department employee operates it for routing maintenance
purposes i.e. water meter maintenance, etc. If the
valve fails when a City employee operates it to turn
off water because the account is delinquent, the City
will not pay for the repair.
tions:
The resident is responsible.
The City is responsible.
CONCRETE REPAIR AND REPLACEMENT
What the City Code states:
The City Code does not address this question.
What the Utilities Department is currently doing:
The Water Department tries to avoid concrete removal
and replacement. If a curb stop has been covered with
concrete during a concrete or paving district, the
Water Division will remove the concrete, repair the
curb stop and replace the concrete. If the concrete is
damaged due to a water main break, the Water Department
will pay for the repair.
During water meter installations, the Water Department
will try to avoid concrete. If we must remove concrete
to install the meter pit, we have generally replaced
the concrete. If the concrete is City owned concrete,
we will replace it. If the concrete is private
concrete, we have hesitated, but do replace it within
reason. The City does not replace extraordinary
landscaping.
In 1987, when the Council passed the ordinance
requiring the transfer of flat rate water customers to
meter upon the sale of the property, the Council
directed the Water Department to install meter pits
where they are necessary in an effort to keep the cost
of meter installations relatively equal for all
customers. The question posed here is -should
replacement of private concrete and extraordinary
landscaping be considered part of the replacement
costs?
PRIVATE IRRIGATION SYSTEMS:
What the City Code states:
The City Code does not address this question.
What the Utilities Department is doing:
The Water Department tries to avoid all but the most
simple repairs. If a private sprinkler system is in
the way of a meter pit installation, we are asking the
customer to move it before we do our work. We have
paid to move some of them, but we are now leaning
towards having the customer do it.
EXHIBIT A TO AGREEMENT
BETWEEN
OWNER AND ENGINEER
FOR
STUDY AND REPORT
AND
PROFESSIONAL DESIGN BIDDING AND CONSTRUCTION SERVICES
FURTHER DESCRIPTION OF ENGINEERING SERVICES
AND RELATED MATTERS
This is an exhibit attached to and made a part of the Agreement dated 19___,
between City of Englewood (OWNER) and Camp Dresser & McKee Inc. (ENGINEER) for
professional services.
1. The Basic Services of ENGINEER as described in Section 2 of said Agreement are amended
and supplemented as follows:
1.1 Preliminary Design, C ontracts No . L N o . 2, and N o . 3
1.1.1 Contract Description
Contract No. 1-Union Avenue Pump Station. Replace potassium
permanganate feeder; possible relocation of PAC feeder from Allen WTP , or a
new feeder; installation of turbidity monitoring; possible installation of roe
monitoring; connection of signals from feeders and monitoring into existing
SCADA system.
Contract No . 2-Allen WTP Upgrade . Install flocculation /sedimentation
facilities; revise raw water delivery system to provide for a new covered flow
equalization basin; modify raw water delivery piping and inlet controls from
Union Avenue force main and City Ditch; provide for low-lift pump station
from 80 MG reservoir to City Ditch; upgrade North Filter No. 1 and replace
media in all three South filters ; modify chlorine contact basin to provide better
flow pattern and longer detention time ; upgrade disinfection system; repair
concrete roof a nd other deterioration on chlorine contact basin .
Contract No . 3 -Backwash Basin Modifications. Modify 14 MG reservoir to
accommodate flow equalization basin, backwash basin, and possibly portion of
floc /sed basin.
Contract No. 4 -Solids Handling Facilities. Modifications to existing solids
handling system at Allen WTP , subject to results of Residuals Stud y described
subsequently.
404\MWICHPEIEXHIBIT.A 0413/96 mlj Page 1 off (o
1.1.2 Preliminary Design Report (Design Memoranda)
Perform an evaluation of chemical feed requirements and monitoring and
SCAD A requirements at the Union Avenue Pump Station for inclusion in
Contract No. 1.
Perform an evaluation of possible alternatives for accomplishing flash mixing,
flocculation, and sedimentation. Perform an evaluation to detennine the most
cost-effective and operationally-beneficial system for inclusion in Contract
No. 2. Evaluate raw water delivery system alternatives, including piping, City
Ditch connections, and a new equalization basin. Evaluate modifications
required to the 14 MG reservoir to accommodate the flow equalization basin,
floe / sed basin, and a revised backwash basin. Detennine volume of waste
residuals that will be produced. Evaluate filter modifications and upgrades.
Evaluate disinfection facility modifications, to include better detention/ contact
time; upgrade of the chlorination system, including chlorine gas scrubbing vs. a
new replacement hypochlorine system; evaluate roof and other concrete repairs
required for the .chlorine contact basin.
Preliminary design investigation will be performed in close cooperation and
communication with Allen WTP staff, to include initial scoping and kickoff
meetings , facility inspections, evaluation of alternatives, workshops to review
preliminary alternatives and conclusions, preparation of preliminary cost
estimates, design memoranda, review in workshops, and finalization of design
memoranda for Contracts No . 1, No . 2, and No. 3. Representatives of CDPH&E
Drinking Water Section will be encouraged to attend workshops and review
design memoranda .
1.1.3 C ontract No. 1 -Final Design , Bidding, Construction, and Operational Services.
As s oon as the design memorandum for Contract No. 1 is complete and
approved by the OWNER, prepare final construction documents and cost
estimates at 70 percent complete and 100 percent complete s tages. Provide for
possible furnishing of an equipment purchase specification for prepurchase of
potassium permanganate feeder to meet operational delivery requirements.
Perform design, bidding, construction, and operational services as provided in
this Agreement for Contract No . 1. Submit contract documents to CDPH&E
Drinking Water Section for rev iew and approval.
1.1.4 Contract N o. 2 -Final Design and Bidding Services
As soon as the design memoranda associated with Contract No . 2 are complete
and approved by the OWNER, prepare final construction documents and cost
estimates at the 70 percent complete and 100 percent complete stages. Perform
design and bidding services as provided in this Agreement for Contract No . 2.
Submit contract d ocuments to CDPH&E Drinking Water Section for review and
approv a l. Construction and operational phase services will be determined and
authorized subsequently as a special service as provided under Section 3 of this
Agreement.
404\MW\CHPEIEXHIBIT.A 04/3196 ml j Page 2 oft ~
1.1.5
1.1.6
Contract No. 3 -Final Design, Bidding, Construction, and Operational Services
As soon as the design memorandum for Contract No. 3 is complete and
approved by the OWNER, prepare final construction documents and cost
estimates at the 70 percent complete and 100 percent complete stages. Perform
design, bidding, construction, and operational services as provided in this
Agreement for Contract No. 3. Submit contract documents to CDPH&E
Drinking Water Section for review and approval.
Residuals Assistance and Study
As soon as this Agreement is authorized, meet with Allen WTP staff and
CDPH&E personnel to assist in issuance of the necessary permitting for the
OWNER to dispose of air-dried residuals accumulated on the drying pad at the
Allen WTP during the summer of 1996 . Disposal will be the same method as
accomplished in 1994 at the City golf course (residuals incorporated into
landscaping berms).
As soon as the Preliminary Design Report for Contracts No. 2 and No. 3 (<Jr 1.1.2
above) is complete, perform a residuals study to include handling and
processing of waste residuals from the floe / sed process, waste solids from the
filter backwash, and other miscellaneous waste solids. It is currently envisioned
that this study will investigate discharge of sedimentation basin sludge directly
to the reduced-sized backwash basin, or alternatively, to separate basins to
allow for liquid /solid separation prior to return of solids to the backwash basin
or directly to a dewatering facility. It may also be necessary to install a small
lamella plate settler unit in the solids handling flow scheme to achieve better
liquid / solids separation. It is envisioned that solids processing will involve
year-round solids dewatering in a new solids processing building into which the
existing belt filter press will be relocated. Solids processing will be for both
solids separated continuously on a regular intermittent or seasonal basis from
the sedimentation basin underflow and backwash basin solids removed by
dredging during the summer months. Ultimate disposal of solids is envisioned
to proceed as currently practiced (disposal to berms at golf course).
1.1.7 Contract No. 4 -Final Design and Bidding Services
As soon as the Residuals Study is complete , prepare final construction
documents and cost estimates at the 70 percent complete and 100 percent
complete stages. Perform design and bidding services as provided in this
Agreement for Contract No . 4. Submit documents to CDPH&E Drinking Water
Section for review and approval. Construction and operational phase services
will be determined and authorized subsequently as a special service as provided
under Section 3 of this Agreement.
2. The responsibilities of OWNER as described in Section 4 of said Agreement are amended and
supplemented as follows:
404\MW\CHPE\EXHIBIT.A 0413196 mlj Page 3 of/;~
3. The time periods for the p erformance of ENGINEER's services as set forth in Section 5 of said
Agreement are amended and supplemented as shown on the attached schedule.
4. The method of payment for services rendered by ENGINEER shall be as set forth below:
4.1 For the Basic Services performed, the OWNER agrees to pay the ENGINEER fees not to
exceed $ based upon the following elements:
4.1.1 The portion of the total fees attributable to each component of the project is as
follows:
Preliminary Design, Contract Nos. 1, 2, and 3 $ ____ _
Design, Bi d ding, Construction, and Operational Phase
Services, Contract No. 1 $ ____ _
Design an d Bidding Phase Services, Contract No. 2 $ ____ _
Design, Bidding, Construction, and Operational Phase
Services, Contract No. 3 $ ____ _
Residuals Assistance and Study $ ____ _
Design and Bidding Phase Services, Contract No. 4 $ ____ _
Construction and Operational Phase Services, Contract No. 2 $ ____ _
Construction and Operational Phase Services, Contract No. 4 $ ____ _
Total $=====
4.1.2 For work done by the ENGINEER, services will be billed based on an amount
equal to ENGINEER's Direct Labor Costs times a factor of 3.1 for services
rendered by principals and employees engaged directly on the Project, plus out-
of-pocket expenses incurred in connection with these services, plus payment for
work done by subconsultants (outside professionals) at cost to ENGINEER plus
five percent.
4.1.3 Direct Labor Cost used as a basis for payment means salaries and wages paid to
all ENGINEER's personnel engaged directly on the Project, including, but not
limited to : engineers, architects, surveyors, designers, draftsmen, specification
writers, estimators, other technical and business personnel; but does not include
indirect payroll related costs or fringe benefits. Direct Labor Cost ranges
currently in effect are shown in Exhibit C.
4.1.4 Out-of-pocket expenses mean the actual expenses incurred (except where
specifica ll y provided otherwise) by ENGINEER, directly or indirectly, in
connection with the Project, such as expenses for: airfare, automobile rental if
required, mileage charges, parking, tolls, taxi, meals, lodging, telephone,
printing and reproduction costs, and other miscellaneous costs incurred for this
Project. The charge for inhouse computer program and word processor usage
will be at ENGINEER's regular rates.
404\MW\CHPEIEXHIBIT.A 04/3196 mlj Page 4 off {e
4.1.5 Work completed by ENGINEER as previously agreed upon to by ENGINEER
and OWNER which, if requested by the OWNER to be redesigned or
repackaged, shall be authorized and paid for in accordance with Sections 3 and
6, respectively, of this Agreement.
4.2 For Special Services performed, a top limit fee will be negotiated based on the same
method of payment for Basic Services as indicated in paragraph 4.1 above.
5. OWNER has established the following special provisions and/ or other considerations or
requirements in respect of the Agreement:
5.1 ENGINEER shall furnish to OWNER a bound set of calculations associated with the
preparation of Contract Documents for each construction contract and the Residuals
Study developed under this Agreement.
6. Modifications and additions to STANDARD FORM OF AGREEMENT .
6.1 The Basic Services of ENGINEER as described in Section 2 of said Agreement are
amended and supplemented as follows:
6.1.1 Add the following sections to paragraph 2.4.2.1, visits to site b y Resident Project
Representative, after the sentence "In addition, ENGINEER shall provide ...
observation of such work.":
"For Contracts No . 1 and No. 3, the Resident Project Representative shall only be
onsite for periodic visits and for what is believed by the ENGINEER to be critical
construction periods."
6.2 The General Consi derations as described in Section 8 of said Agreement are amended
and supplemented as follows :
6.2.1. Delete paragraph 8.2, Reuse of Documents , and replace with the following:
"8 .2 Reuse of Documents. All documents including Drawings and Specifications
provided or furnished by ENGINEER (and ENGINEER's independent
professional associates, subcontractors, and consultants) pursuant to this
Agreement are instruments of service and OWNER shall retain an ownership
and property interest therein. OWNER may make and retain copies for
information and reference; however, such documents are not intended or
represented to be suitable for reuse by OWNER or others. Any reuse without
written v erification or adaption by ENGINEER for the specific purpose intended
will be at O WNER's sole risk and without liability or legal exposure to
ENGINEER, or to ENGINEER's independent professional associates ,
subcontractors, or consultants, and OWNER shall hold harmless ENGINEER and
ENGINEER's independent professional associates, subcontractors, and
consultants from all claims, damages, losses, and expenses including attorneys '
fees arising out of or resulting therefrom. Any such verification or adaptation
will entitle ENGINEER to further compensation at rates to be agreed upon by
OWNER and ENGINEER."
404\MWICHPE\EXHIBIT.A 04/3196 mlj Page S of J ~
6.2.2 Paragraph 8.3. Delete paragraph and replace with: "This Agreement is to be
governed by the law of the location of the OWNER, which is City of Englewood ,
Arapahoe County, Colorado, and shall be venue for any legal actions under this
Agreement."
404\MWICHPE\EXHIBIT.A 0413196 ml j Page 6 otJ {e_
.. , .. ~ ,. ~~w ~ A TT. s
PROPOSAL TO LEASE DITCH AND MANIFOLD CAPACITY IN
THE LAST CHANCE DITCH AND NEV ADA DITCH TO
THE CENTENNIAL WATER AND SANITATION DISTRICT
For the past year, representatives of the Last Chance Ditch Company, Nevada Ditch Company,
Division of Wildlife, City of Englewood, City of Aurora, Denver Water, Kiowa Resources, and
Centennial Water and Sanitation District (the Parties) have discussed the future potential uses of
capac ity through the outlet manifold of Chatfield Reservoir and in the Last Chance and Nevada
Ditches. The discussions were brought about as a result of condemnation actions filed by
Centennial and Kiowa against the Last Chance and Nevada ditch companies (Ditch Companies).
The d iscussions led to a much clearer understanding between the Parties of the antic i pated use
of these facilities. The ultimate goal of the discussion was to determine whether excess capacity
exists in the ditches which can be leased or sold without impairing the uses and capacity of
ex isting shareholders .
After thoroughly discussing the expected operational use patterns and rates of the parties , it was
determined by the Ditch Companies that it is possible to fashion an operating agreement that
would allow the lease of capacity in the ditches. Because capacity in the manifold is fixed, and
capacity in the ditches can be enlarged, the lease of capacity needs to address both facilit ies .
The following definitions are supplied to simplify discussion of terms of the operating agreement.
Active Shareholders are defined as those shareholders who use the ditch as a source of irrigation
water and who have not transferred their water rights to alternate points of diversion .
Other Shareholders are defined as those shareholders who continue to pay the assessments of the
Ditch Companies but have transferred their water rights to alternate points of diversion. The
Other Shareholders have indicated that they have a continuing need to use capacity in the ditches
for future water supply options.
. ~v'Y11
The Active Capacity of the ditch is the amount of capacity necessary to ee+iver the Active
Shareholder's prorata entitlement of the individual ditches' water rights plus carry the ditch losses
left from previous transfers . For purposes of this proposal, the Active Capacity of the Last Chance
Ditch is around 8 cfs and the Active Capacity of the Nevada Ditch is around 10 cfs.
Physical Capacity is defined as that amount of water which can be safely carried in the ditch.
Physical Capacity may be equal to or greater than Active Capacity but may not exceed the Manifold
Capacity.
Manifold Capacity is defined by the contracts between the Ditch Companies and the U. S. Army
Corps of Engineers. The Last Chance Ditch Company contract specifies construction of a 48"
outlet from Corps facilities to Last Chance Ditch Company facilites . While no rate of flow is
specified , it was assumed during these discussions that the capacity of this outlet was 40 cfs.
Hydraulic calculations were performed to verify that 40 cfs could be delivered through the Last
Chance Ditch outlet. The Nevada Ditch Company contract specifically sets out a delivery flow rate
of 40 cfs to Nevada Ditch Company facilites. It was assumed that Actf'ote Capacity could be
enlarged to handle the allocated Manifold Capacity. P¥1(J
Excess Capacity was defined as the difference between Active Capacity and Manifold Capacity.
When the active shareholders permanently cease to use capacity in the ditches, Excess Capacity
will equal Manifold Capacity.
It is recommended that the Ditch Companies enter into separate operating agreements that
encompass the following provisions :
1) Priority of Use:
a) The Active Shareholders have the first right to use the Active Capacity of the
ditch.
b) The use of Excess Capac i ty is divided prorata between all shareholders. Jf ~
c) Excess Capacity not used by shareholders can be leased to other parties/n
order for shareholders to use excess capacity beyond their prorata entitlement , the
shareholder must enter into an operating agreement with the ditch company.
d) If any party enlarges the Physical Capacity so that additional Excess Capacity is
created in the ditch , such enlargement shall be shared per the provisions i n 1'J,.,,_),
~). above. b .r c.
~l~ .
e) The D+ten Co111patlit!s are willing to discuss the possibility of allowing operat i ng
agreement holders the r i ght to exclusive use of all or a portion of the Excess
Capacity depending on the timing of the use .
2) Shareholders and holders of operating agreements may contract with other shareh9lders ,
for the exc l usive use of the shareholders' prorata entitlement. l,i\"""-h\. 1u p.:r...c .t.:i..r. 171?t.-uJ,."':J a...._Y•~L•:\ . .:.-.d-.
3) The term of the operating agreement shall be 20 years , with the option of renewal of
additional 20 year terms. ~ ~pflvtJ. ~ (ht Ol 's
4) Ditch improvements necessary to facilitate use o/the ditch shall be paid for by the
holder of the operating agreement. All improvements will l~ecome the property of the Ditch
Companies .
5) Additional operating agreements with the Corps or any other agency shall not i nterfere
or jeopardize the uses of the ditch made by the shareholders . Any agreements will be subject to
approval by the Ditch Companies .
6) The Ditch Companies will wttfcooperate with those who hold o.perating agreeme~ts
regarding any permits or approvals requ i red for use of Ditch Company facilities or for any
enlargements or improvements.
7) Operating agreement holders will coordinate with the Ditch Company on scheduling of
diversions .
8) There will be a minimum annual payment determined by .each ditch company as
consideration for the operating agreement. When water is diverted through ditch company
facilit ies , the operating agreement holder will pay for a corresponding portion of operation and
maint~nance costs , based on the percentage of water carried . O&M payments will be credited
toward the minimum annual payment.
Lea.se Agreement between Centennial Water and Sanitation District ("CWSD") and the Last
Chance Ditch Company No. 2 ("Ditch Company").
1. Lease: Centennial offers to lease the right to the first priority use of excess
capacity in the Chatfield outlet facilities and the Last Chance Ditch up to the maximum
hydraulic flow rate available. "Excess capacity" is defined as the capacity in outlet
facilities and/or the ditch not in use at any point in time by Ditch Company
shareholders.
2. Payments:
(a) Excess capacity -minimum annual payment of Sl0 ,000 or one third of the
previous year's O&M expenses, whichever is more, as consideration for the
operating agreement. The minimum annual payment amount (initially
$10,000) will be adjusted every five years based upon the consumer price
index or suitable substitute.
(b) O&M --CWSD pay its share based on the percentage of water carried. O&M
payments credited toward the minimum annual payment.
3. CWSD Improvements : CWSD will pay for any turnouts or other capital
improvements for delivery of CWSD water. CWSD will have right to enlarge the ditch
and the hydraulic capacity of the Chatfield outlet facilities at its cost. Shareholders will
have a 6-0 day option to pay a pro-rata share of the expense for such enlargement
and will thereby retain a pro-rata priority of use of the enlarged capacity. For any
enlarged capacity whose shareholder's option is not exercised, CWSD will be entitled
to exclusive use of such enlarged capacity, subject to right of Ditch Company
shareholders to use capacity not used by CWSD. Agreements, plans , and specifications
for CWSD capital improvements to be approved by Ditch Company prior to construction.
All improvements will become property of the Ditch Company.
4. Scheciulin~ of Diversions: CWSD will coordinate with Ditch Company management
on scheduling of diversions. Operational details will be addressed in the lease
agreement. At no time will use by CWSD jeopardize the uses of the ditch made by the
other shareholders.
5. Pennits and Approvals: The Ditch Company and its shareholders will cooperate with
CWSD regarding pennits or approvals required for CWSD's use of the Ditch Company
facilities or for any enlargements or improvements proposed by CWSD. Any new
pennits or approvals required for CWSD to use capacity in Last Chance Ditch facilities
will be at CWSD 's sole expense and responsibility.
DRAFf CONCEPTUAL OPERATING AGREEMENT (2/9/96)
Page Two
6. Lease Term: Perpetual.
7. Initiation of A~ment: This agreement becomes effective only upon Centennial' s
agreement of initiation which may be later in time than the time of agreement
execution by all parties. Centennial's initiation is likely to await the final approvals
for related pipeline/pump station and storage projects.
8. Termination: This agreement can be terminated by Centennial at any time.
951114/da
CENTENNIAL
W A TER AND SANITATION DISTRICT
March 5 , 1996
Mr. Larry Dirks
Mr. Stew a rt H. Fonda
Mr. Jerry Foster
Mr. Thomas J. Griswold
Mr. Charles M . Mac Lean
Mr. Bruce Wolfe
RE: Draft Lease Agreement for Last Chance or Nevada Ditch Excess Capacity
Gentlemen :
Following up on our meeting of February 15 , 1996 , enclosed is a draft of the lease agreement
proposed by Centennial to lease excess capacity from the ditch companies. We have anempted
to include all of the items agreed upon at our February 15 meeting as well as several of the
guidelines proposed in the negotiation meetings from last fall .
A couple of new ideas also are incorporated in this draft. These new concepts are as follows:
Section 3. 2 .1. and 3 . 2 . 3 : After further consideration, it appeared that the group
had overlooked the seemingly unfair situation of Centennial proposing an
enlargement project and having the entire enlarged capacity subscribed by
shareholders exercising their rights during the five year post project option
period. We felt a limit to this situation is reasonable and we are proposing that
for enlargement projects proposed by Centennial , the participation by others is
limited to 50 3 of the total enlarged capacity .
Section 3 . 3 .1: Centennial pays a $10 , 000 annual fee during the period between
lease execution and activation of initial term .
We 'd like to get your comments on this proposal in a week or two and will be calling to set up
a meeting to finalize the agreement . We appreciate your time to analyze our proposal.
Sincerely,
~~
William R . McLoud, P .E.
Water Resources Manager
96305 /ds
Enclosure
cc: Charles N. Woodruff, Esq.
fi 2 West P la z a Dr ive • H ig hl a nd s Ra nc h, Colora do 8 01 26 • (303) 79 1-0430 • FAX (303) 791-3290
CENTENNIAL DRAFT: 03/05/96
LEASE AGREEMENT
THIS LEASE AGREEMENT is entered into as of the day
of , 1996, between the LAST CHANCS DITCH
COMPANY NO. 2 ("Ditch Company"), a mutual ditch company organized
under the laws of Colorado, Lessor, whose address is c / o Jerry-
Foster, Registered Agent, Denver Water Department, 16 00 Wesc 12th
Avenue, Denver, Colorado 80254, and CENTENNIAL WATSR AND
SA.J.'HTATION DISTRICT ("Centennial") , a quasi-municipal corporation
organized under the laws of Colorado, Lessee, whose address is
62 West Plaza Drive, Highlands Ranch, Colorado 80126.
I. RECITALS.
1.1 The Ditch Company owns what is known as the Last
Chance Ditch, which diverts water from the South ?latte River
through the Chatfield Reservoir Outlet Manifold owned and operated
by the U.S. Army Corps of Engineers. The decreed point of
di version for the Last Chance Ditch is the Chatfield Reservoir
Outlet Manifold, which intersects the centerline of the dam at a
point whence the SW Corner of Section 1, Township 6 South, Range 69
West, of the 6th P.M., Jefferson County, bears North 49° West a
distance of 4070 feet. The ditch and diversion facilities below
Chatfield Dam are located in Jefferson and Arapahoe Councies in:
SEX and NEX of Sec. 36, TSS, R69W; NWX, Sec. 31, TSS, R68W; NWX and
SWX of Sec. 30, TSS, R68W; SWX and SEX, Sec. 19, TSS, R68W, all of
the 6th P.M.
1.2 The owner of each share of the Ditch Company owns
the right to use a pro rata share of the Excess Capacity of the
Last Chance Ditch to carry water other than water diverted under
the irrigation water rights decreed to the Last Chance Ditch.
There currently are 239.0162 shares of Ditch Company stock
outstanding. Centennial currently owns 0.4 share of Ditch Company
stock. The Ditch Company has authority to enter into long-term
agreements leasing to shareholders or non-shareholders the right to
use all or any portion of the Excess Capacity, including any
Enlargement Capacity as defined herein.
1.3 Centennial desires to lease the Excess Capacity of
the Last Chance Ditch, including any Enlargement Capacity, that may
hereafter exist. The Ditch Company desi ase to Centennial
Excess Capacity. inc argement Capacity, subject to the
terms of this Lease Agreement. The parties have reached agreement
for the lease of Excess Capacity, including Enlargement Capacity,
on the terms set forth in this Lease Agreement.
II. DEFINITIONS.
2. 1 Last Chance Ditch. References herein to t:-ie Last
Chance Ditch mean the ditch, pipeline, valves, and all associated
facilities that the Ditch Company owns or has a right to use for
delivery of wate:-through the ditch, including real property
incerests (excluding water rights ) and contract rights pursuant to
existing and future agreements with the U.S. Army Corps of
Engineers. References in this Lease Agreement to "the ditch" mean
the Last Chance Ditch as defined in this Section 2.1.
2.2 Active Caoacitv. The Active Capacity of the Last
Chance Ditch is the amount of capacity actually used from time to
time to carry irrigation water for shareholders who have not
changed the water rights represented by their shares to new or
alternate points of diversion. The Active Capacity of the Last
Chance Ditch on the date of this Lease Agreement is about 8 cfs
during the irrigation season.
2. 3 Phvsical Caoacity. The Physical Capacity of the
Last Chance Ditch is the amount of water that can be safely carried
in the ditch currently or as it may be modified in the future. The
Physical Capacity may not exceed the hydraulic capacity of the
Chatfield Reservoir Outlet Manifold as operated by the U.S. Army
Corps of Engineers to deliver water into the Last Chance Ditch.
The Physical Capacity of the Last Chance Ditch on the date of this
Lease Agreement is about 40 cfs.
2.4 Excess Caoacity. The Excess Capacity of the Last
Chance Ditch is the amount by which Physical Capacity exceeds
Active Capacity at any time. Excess Capacity includes any unused
capacity in the ditch that exists at any time, and includes
Enlargement Capacity as defined herein. The Excess Capacity of the
Last Chance Ditch on the date of this Lease Agreement is about 32
cfs during the Irrigation Season as defined herein, assuming full
use of the Active Capacity throughout the Irrigation Season, and is
about 40 cfs outside the Irrigation Season.
2.5 Enlarqement Caoacitv. The Enlargement Capacity of
the Last Chance Ditch is any increase in the Physical Capacity
resulting from modification of the ditch, modification of the
Chatfield Reservoir Outlet Manifold, or modification of the
operation of either by agreement with the Ditch Company or the U.S.
Army Corps of Engineers.
2
2. 6 Irrigation Season. The Irrigation Season during
which water may be diverted through the Last Chance Ditch f o r
irrigation purposes is the period April 15 through October 31 of
each year.
2. 7 Initial Term. The Initial Term of this Lease
Agreement is the twent y (20 ) y ear period commencing upon
Centennial's written Notice of Initiation pursuant to Section 3.7.l
herein.
2.8 Renewal Term. A Renewal Term of this Lease
Agreement is any twenty ( 2 0 ) year term during which this Lease
Agreement is in effect following the Initial Term, pursuant to
Section 3.7 .2 herein.
III. LEASE.
3.1 Lease of Excess Capacity to Centennial. During the
Initial Term and any Renewal Term of this Lease Agreement,
Centennial shall have the exclusive right to use for carriage of
wate::::-all Excess Capacity, including Centennial' s share of any
Enlargement Capacity pursuant to Section 3.2 herein; provided, that
other sha · '""o use oursuant to seoarate (
an Exce inc_u ing \
eing used by Centennial. :::)
3.2 Enlargement Capacity Created Bv Centennial. During
the Initial Term and any Renewal Term of this Lease Agreement,
Centennial shall have the right at its own cost to increase the
Physical Capacity of the Last Chance Ditch by any action resulting
in Enlargement Capacity as defined in Section 2. 5 herein. Such
Enlargement Capacity will become the property of the Ditch Company
and, subject to Sections 3.2.1 and 3.2.3 below, will become part of
the Excess Capacity leased to Centennial.
3. 2 .1 If Centennial desires to increase the
Physical Capacity of the Last Chance Ditch, Centennial shall
deliver to the Ditch Company a Notice of Intent to Enlarge
with a written description of its preliminary plans to
increase the Physical Capacity of the ditch. The other
shareholders of the Ditch Company shall have 180 days from the
date of such notice to decide whether to participate in such
proposed enlargement and to deliver to Centennial a wr itt en
Notice of Participation. Other shareholders giving Notice of
Participation shall become Participating Shareholders upon
execution of an Enlargement Project Participation Agreement
with Centennial. Participating Shareholders shall be entitled
to share pro rata, based on their percentage of stock
ownership, collectively up to fifty percent (50%") of the
3
Enlargement Capacity. Centennial's lease of Excess Capacity
shall automatically include fifty percent (50%) of the
Enlargement Capacity, plus any portion of the remaining 50% of
Enlargement Capacity not participated in by other
shareholders.
3.2.2 Centennial's final plans and
speciricacions for any such enlargement, modifications or
other actions to increase the Physical Capacity of the ditch
shall be submitted in writing to the Ditch Company with a
written, dated Request for Approval. Final plans and
specifications must be approved by the Ditch Company before
Centennial commences the construction or other actions to
increase the Physical Capacity. If the Ditch Company has not
made a decision on Centennial's Request for Approval within
ninety (90 ) days after receipt thereof, the Ditch Company's
approval shall be deemed given.
3. 2. 3 If Participating Shareholders have not
executed Enlargement Project Participation Agreements
totalling fifty percent ( 50%) of the Enlargement Capacity,
other shareholders shall have a rive (5 ) year option to
participate Q£Q rata in a collective share up to the remainder
of fifty percent (50%) of the Enlargement Capacity upon
payment of that share of the total actual costs incurred in
creating the Enlargement Capacity. Such option shall be
exercised within five (5) years after the date of the Ditch
Company's approval of Centennial' s final plans and
specifications for the enlargement, and shall be exercised by
written Notice of Participation and payment to Centennial of
that pro rata share of the total actual costs for the
enlargement.
3.3 Pavments By Centennial.
3.3.l Pavments Prior to Commencement of Initial
Term. Centennial shall pay the Ditch Company upon execution
of this Lease Agreement Ten Thousand Dollars ($10,000.00 ), and
shall pay $10,000.00 annually on or before the anniversary
date of this Lease Agreement until commencement of the Initial
Term.
3.3.2 Minimum Annual Pavments. During the
Initial Term and Renewal Terms of this Lease Agreement,
Centennial shall pay to the Ditch Company annually the greater
of (a) Ten Thousand Dollars ($10,000.00), or (b) one-third of
the total operatio~ and maintenance costs actually incurred by
the Ditch Company in the preceding calendar year . Said
$10,000.00 component of the payment shall be adjusted upward
4
or downward every five years during the Ini c. ial Term and
Renewal Terms in proportion to the changes in the Consume~
Price Index, All Urban Consumers, Denver, Colorado
Metropolitan Area, All Items ("CPI") during the preceaing
five-year period. If the U.S. Bureau of Labor Statistics
discontinues issuance of the CPI, then the 9ayment adjustments
shall be made using the most comparable and recognized cost of
living index then being published.
3.3.3 Centennial Share of Ooeration and
Maintenance Costs. Centennial shall pay the same 9ercentage
of the 09eration and maintenance costs actually incu~red by
the Ditch Company each year as the 9ercentage which
Centennial's water carried in the ditch comprises of the total
water carried in the ditch during that year. Such ope~ation
and maintenance payments by Centennial shall be credited
against the minimum annual payments that Centennial is
obligated to pay pursuant to Section 3.3.2 above.
3.4 Schedulino of Centennial's Diversions. Centennial
will coordinate with Ditch Company management in the scheduling of
diversions of Centennial's water. Centennial will give the Ditch
Company written notice by mail, hand-delivery or facsimile of its
requested diversion schedule, and of changes therein, as far in
advance as reasonably possible. Upon notification from Centennial,
the Ditch Company will cause Centennial's water to be diverted as
close as reasonably possible to the time schedule, amount and rate
of deli very requested by Centennial. Di version of Centennial' s
water using the Excess Capacity leased to Centennial shall not at
any time interfere with water diversions by other shareholders.
3.5 Centennial Modifications of Ditch Facilities.
Centennial shall be entitled to construct and install such
modifications to the Last Chance Ditch, including turnouts and
pipeline crossings of the ditch and the Ditch Company's easements,
as are necessary for deli very of Centennial' s water from the
Chatfield Reservoir Outlet Manifold through portions of the ditch
to Centennial's proposed South Platte Lake and to its existing and
future water supply system. South Platte Lake is proposed to be
constructed in [$g§~li;#''!f§g@:;Jj fq§§@$$p#@ii;i#J ::. Centennial' s plans and
specifications for ··such .modlf'ICafiOri·s ·sliall be submitted in writing
to the Ditch Company and must be approved by the Ditch Company
before commencement of construction. If the Ditch Company has not
decided whether to approve such plans and specifications within
ninety (90) days after submission by Centennial, the Ditch
Company's approval shall be deemed given. All such modifications
shall become the property of the Ditch Company.
s
3.6 Permits and Aoorovals. The Ditch Company and its
shareholders will cooperate with Centennial regarding all permits
or approvals that may be required for Centennial to use Ditch
Company facilities pursuant to this Lease Agreement or for any
enlargements, improvements or modifications proposed by Centennial,
including those referred to in Section 3.5 above. Centennial shall
be solely responsible for obtaining and complying with all such
permits and approvals, including payment of all costs.
3.7 Term of Lease.
3. 7 .1 Initial Term. The Initial Term of this
Lease Agreement shall comme~ce on the date of Centennial's
Notice of Initiation, which may not be earlier than and may be
later than, the date as of which both parties have executed
this Lease Agreement. Upon delivery to the Ditch Company, the
Notice of Initiation shall be appended to this Lease
Agreement. Centennial's Notice of Initiation probably will
not be given until after the permits and approvals referred to
in Section 3.6 herein have been obtained . The Initial Term
shall expire twenty (20 ) years after the date of Centennial's
Nocice of Initiation.
3.7.2 Renewal Terms. Centennial shall have the
option to renew this Lease Agreement for up to four (4)
successive twenty (20) year Renewal Terms following the
Initial Term. The option shall be exercisable by delivery to
the Ditch Company of Centennial's written Notice of Renewal on
or before the expiration of the Initial Term or any succeeding
Renewal Term. Provided, that the Ditch Company may reduce the
amount of Excess Capacity that is leased, at the end of the
Initial Term or at the end of any Renewal Term, if the other
shareholders of the Ditch Company need to use Excess Capacity
to supply their own uses. Centennial' s lease of Excess
Capacity may be reduced only to the extent that there is an
irreconcilable conflict between Centennial' s use of Excess
Capacity and other shareholders' need to use Excess Capacity
to fulfill their own water supply requirements; provided, that
Centennial's lease of Excess Capacity shall not be reduced
below fifty percent (50~) of the Enlargement Capacity. The
Ditch Company shall give Centennial written Notice of
Reduction not later than five (5) years prior to the end of
the Initial Term or any Renewal Term, and such reduction shall
become effective five (5) years after the date of such Notice
of Reduction.
3.7.3
terminate this
writ ten Notice
Termination By Centennial. Centennial may
Lease Agreement at any time by delivering
of Termination to the Ditch Company with
6
payment to the Ditch Company of a termination penalty of two
times the most recent minimum annual payment made pursuant to
Section 3.3.2 herein.
3.8 Notices. All notices provided for herein shall be
addressed to and delivered to the parties at their addresses set
forth in the first paragraph of this Lease Agreement.
IN WITNESS WHEREOF, this Lease Agreement is executed as
of the day and year first above written.
LAST CHANCE DITCH COMP.~
NO. 2
ATTEST:
7
CENTENNIAL WATER AND SANITATION
DISTRICT
ATTEST:
CENTENNIAL DRAFT: 03/05/96
LEASE AGREEMENT
THIS LEASE AGREEMENT is entered into as of the day
of , 1996, between the NEVADA DITC~ HOLDING
COMPA.l.\fY ("Ditch Company") , a mutual ditch company organized under
the laws of Colorado, Lessor, whose address is c /o Jerry Foste~,
Registered Agent, Denver Water Department, 1600 West 12th Avenue,
Denver, Colorado 80254, and CENTENNIAL WATER Al'JD SA.l.'JIT.~TI ON
DISTRICT ("Centennial"), a quasi-municipal corporacion organized
under the laws of Colorado, Lessee, whose address is 62 West ?laza
Drive, Highlands Ranch, Colorado 80126.
I. RECITALS.
1.1 The Ditch Company owns what is known as the Nevada
Ditch, which diverts water from the South Platte River through the
Chatfield Reservoir Outlet Manifold owned and operated by the U.S.
Army Corps of Engineers. The decreed point of diversion for the
Nevada Ditch is the Chatfield Reservoir Outlet Manifold, which
intersects the centerline of the dam at a point whence the SW.
Corner of Section 1, Township 6 South, Range 69 West, of the 6th
P.M., Jefferson County, bears North 49° West a distance of 4070
feet. The ditch and diversion facilities below Chatfield Dam are
located in Jefferson and Arapahoe Counties in: NWX, Sec. 6, T6S,
R68W; SWX and SEX and NEX, Sec. 31, TSS, R68W; SEX and NEX, Sec.
30, TSS, R68W; SEX and NEX,. Sec. 19, TSS, R68W; SEX of Sec. 18,
TSS, R68W; SWX and SEX, Sec. 17, TSS, R68W, all of the 6th P.M.
1.2 The owner of each share of the Ditch Company owns
the right to use a pro rata share of the Excess Capacity of the
Nevada Ditch to carry water other than water diverted under the
irrigation water rights decreed to the Nevada Ditch. There
currently are 260 shares of Ditch Company stock outstanding. The
Ditch Company has authority to enter into long-term agreements ·
leasing to shareholders or non-shareholders the right to use all or.
any portion of the Excess Capacity, including any Enlargement
Capacity as defined herein.
1.3 Centennial desires to lease the Excess Capacity of
the Nevada Ditch, including any Enlargement Capacity, that may
hereafter exist. The Ditch Company desires to lease to Centennia]__-
Excess Capacity, including Enlargement Capacity, subject to tne
terms of this Lease Agreement. The parties have reached agreement
for the lease of Excess Capacity, including Enlargement Capacity,
on the terms set forth in this Lease Agreement.
'
II. DEFINITIONS.
2.1 Nevada Ditch. References herein to the Nevada Ditch
mean the ditch, pipeline, valves, and all associated facilities
that the Ditch Company owns or has a right to use for delivery of
water through the ditch, including real property interests
(excluding water rights ) and contract rights pursuant to existing
and future agreements with the U.S. Army Corps of Engineers.
References in this Lease Agreement to "the ditch" mean the Nevada
Ditch as defined in this Section 2.1.
2.2 Active Caoacitv. The Active Capacity of the Nevada
Ditch is the amount of capacity pctually used from time to time to~
carry irrigatiqg_water for shareholders who have not changed the
water rights represented by their shares to new or alternate points
of diversion. The Active Capacity of the Nevada Ditc~ on the date
of this Lease Agreement is about 10 cfs during the irrigation
season.
2. 3 Phvsical Caoacitv. The Physical Capacity of the
Nevada Ditch is the amount of water that can be safely carried in
the ditch currently or as it may be modified in the future. The
Physical Capacity may not exceed the hydraulic capacity of the ·
Chatfield Reservoir Outlet Manifold as operated by the U.S. Army'
Corps of Engineers to deliver water into the Nevada Ditch. The
Physical Capacity of the Nevada Ditch on the date of t~is Lease
Agreement is about 40 cfs.
2.4 Excess Capacity. The Excess Capacity of the Nevada
Ditc b which PilySical Capacity exceeds Active_
Capacity at any time. Excess _ ~ooes aft}' unused capacity
in the ditch that exists at any time, and includes Enlargement
Capacity as defined herein. The Excess Capacity of the Nevada
Ditch on the date of this Lease Agreement is about 30 cf s during
the Irrigation Season as defined herein, assuming full use of the
Active Capacity throughout the Irrigation Season, and is about 40
cfs outside the Irrigation Season.
2.5 Enlarqement Caoacitv. The Enlargement Capacity of
the Nevada Ditch is any increase in the Physical Capacity resulting
from modification of the ditch, modification of the Chatfield
Reservoir Outlet Manifold, or modification of the operation of
either by agreement with the Ditch Company or the U.S. Army Corps
of Engineers.
2. 6 Irrigation Season. The Irrigation Season during
which water may be diverted through the Nevada Ditch for irrigation
purposes is the period April 15 through October 31 of each year.
2
' .
2. 7 Initial Term. The Initial Term of this Lease
Agreement is the twenty (20) year period commencing upon
Centennial's written Notice of Initiation pursuant to Section 3.7.l
herein.
2.8 Renewal Term. A Renewal Term of
Agreement is any twenty (20) year term during which
Agreement is in ef feet following the Initial Term,
Section 3.7.2 herein.
III. LEASE.
this Lease
this Lease
pursuant to
3.1 Lease of 2xcess Caoacitv to Centennial. During the
Initial Term and any Renewal Term of this Lease Agreement,
Centennial shall have the exclusive right to use for carriage of
water all Excess Capacity, including Centennial' s share of any
Enlargement Capacity pursuant to Section 3.2 herein; provided, that
other shareholders shall be entitled to use, pursuant to separate
agreements with the Ditch Company, any Excess Capacity, including
Enlargement Capacity, that is not being used by Centennial.
3.2 Enlaraement Caoacitv Created Bv Centennial. During
the Initial Term and any Renewal Term of this Lease Agreement,
Centennial shall have the right at its own cost to increase the
Physical Capacity of the Nevada Ditch by any action resulting in
Enlargement Capacity as defined in Section 2. 5 herein. Such
Enlargement Capacity will become the property of the Ditch Company
and, subject to Sections 3.2.l and 3.2.3 below, will become part of
the Excess Capacity leased to Centennial.
3. 2 .1 If Centennial desires to increase the
Physical Capacity of the Nevada Ditch, Centennial shall
deliver to the Ditch Company a Notice of Intent to Enlarge
with a written description of its preliminary plans to
increase the Physical Capacity of the ditch. The other
shareholders of the Ditch Company shall have 180 days from the
date of such notice to decide whether to participate in such
proposed enlargement and to deliver to Centennial a written
Notice of Participation. Other shareholders giving Notice of
Participation shall become Participating Shareholders upon
execution of an Enlargement Project Participation Agreement
with Centennial. Participating Shareholders shall be entitled
to share pro rata, based on their percentage of stock
ownership, collectively up to fifty percent (50%) of the
Enlargement Capacity. Centennial's lease of Excess Capacity
shall automatically include fifty percent (50%) of the
Enlargement Capacity, plus any portion of the remaining 50% of
Enlargement Capacity not participated in by other
shareholders.
3
\ .
3.2.2 Centennial's final plans and
specifications for any such enlargement, modifications or
other actions to increase the Physical Capacity of the ditch
shal l be submitted in writing to the Ditch Company with a
written, dated Requ est for Approval. Final plans and
specifications must be approved by the Ditch Company before
Centennia l commences t h e construction or ot h ec:-actions to
increase the Physical Capacity. If the Ditch Company has not
made a decision on Centennial's Request for Approval within
ninet y (9 0) days after receipt thereof, the Ditch Company's
approval shall be deemed given.
3. 2. 3 If Participating Shareholders have not
executed Enlargement Project Participation Agreements
totalling fifty percent ( 50%) of the Enlargement Capacity ,
other shareholders shall have a rive ( 5 ) year option to
participate QKQ rata in a collecti v e share up to the remainder
of fifty percent (50%) of the Enlargement Capacity upon
payment of that share of the total act u al costs incurred in
creating the Enlargement Capacity. Such opt i on shall be
exercised within five (5 ) years after the date of the Ditch
Company's approval of Centennial's final plans and
specifications for the enlargement, and shall be exercised by
written Notice of Participation and payment to Centennial of
that pro rata share of the total actual costs for the
enlargement.
3.3 Pavments Bv Centennial.
3 .3.1 Pavments Prior to Commencement of Initial
Term . Centennial shall pay the Ditch Company upon execution
of this Lease Agreement Ten Thousand Dollars ($10,000.00 ), and
shall pay $10,000.00 annually on or before the anniversary
date of this Lease Agreement until commencement of the Initial
Term.
3.3.2 Minimum Annual Pavments. During the
Initial Term and Renewal Terms of this Lease Agreement,
Centennial shall pay to the Ditch Company annually the greater
of (a ) Ten Thousand Dollars ($10,000.00 ), or (b ) one-third of
the total operation and maintenance costs actually incurred by
the Ditch Company in the preceding calendar year. Said
$10,000.00 component of the payment shal l be adjusted upward
or downward every five years during the Initial Term and
Renewal Terms in proportion to the changes in the Consumer
Price Index, All Urban Consumers, Denver, Colorado
Metropolitan Area, All Items ("CPI") during the preceding
five-year period. If the U.S. Bureau of Labor Statistics
discontinues issuance of the CPI, then the payment adjustments
4
'
shall be made using the most comparable and recognized cost of
living index then being published.
3.3.3 Centennial Share of Ooe rati on and
Maintenance Costs. Centennial shall pay the same percentage
of the operation and maintenance costs actually incurred by
the Ditch Company each year as the percentage which
Centennial 's water carried in the ditch comprises of the total -
water carried in the ditch during that year. Such operation
and maintenance payments by Centennial shall be credited
against the minimum annual payments that Centennial is
obligated to pay pursuant to Section 3.3.2 above .
3.4 Scheduling of Centennial's Diversions. Centennial
will coordinate with Ditch Company management in the scheduling of
diversions of Centennial's water. Centennial will give the Ditch
Company written notice by mail, hand-delivery or facsimile of its
requested diversion schedule, and of changes therein, as far in
advance as reasonably possible. Upon notification from Centennial,
the Ditch Company will cause Centennial's water to be diverted as
close as reasonably possible to the time schedule, amount and rate
of delivery requested by Centennial . Diversion of Centennial' s .
water using the Excess Capacity leased to Centennial shall not at ·
any time interfere with water diversions by other shareholders.
3.5 Centennial Modifications of Ditch Facilities.
Centennial shall be entitled to construct and install such
modifications to the Nevada Ditch, including turnouts and pipeline
crossings of the ditch and the Ditch Company's easements , as are
necessary for delivery of Centennial's water from the Chatfield
Reservoir Outlet Manifold through portions of the ditch to
Centennial's proposed South Platte Lake and to its existing and
future water supply system. South Platte Lake is proposed to be
constructed in Cw#§§#f;:::+@a?f.I:4?§91.fu$ptj$ggJ. Centennial' s plans and
specifications IOr··5·1ich .. modI:EICa"tI6iis···5hail be submitted in writing
to the Ditch Company and must be approved by the Ditch Company
before commencement of construction. If the Ditch Company has not
decided whether to approve such plans and specifications within
ninety (90) days after submission by Centennial, the Ditch
Company's approval shall be deemed given. All such modifications
shall become the property of the Ditch Company.
3.6 Permits and Approvals. The Ditch Company and its
shareholders will cooperate with Centennial regarding all permits
or approvals that may be required for Centennial to use Ditch
Company facilities pursuant to this Lease Agreement or for any
enlargements, improvements or modifications proposed by Centennial,
including those referred to in Section 3 .5 above. Centennial shall
5
' .. .
be solely responsible for obtaining and complying with all such
permits and approvals, including payment of all costs.
3.7 Term of Lease.
3. 7. 1 Initial Term. The Initial Term of this
Lease Agreement shall commence on the date of Centennial's
Notice of Initiation, which may not be earlier than and may be
later than, the date as of which both parties have executed
this Lease Agreement. Upon delivery to the Ditch Company, the
Notice of Initiation shall be appended to this Lease
Agreement. Centennial's Notice of Initiation probably will
not be given until after the permits and approvals referred to
in Section 3.6 herein have been obtained. The Initial Term
shall expire twenty (20 ) years after the date of Centennial's
Notice of Initiation.
3.7.2 Renewal Terms. Centennial shall have the
option to renew this Lease Agreement for up to four ( 4 )
successive twenty (20 ) year Renewal Terms following the
Initial Term. The option shall be exercisable by delivery to
the Ditch Company of Centennial's written Notice of Renewal on
or before the expiration of the Initial Term or any succeeding
Renewal Term. Provided, that the Ditch Company may reduce the
amount of Excess Capacity that is leased, at the end of the
Initial Term or at the end of any Renewal Term, if the other
shareholders of the Ditch Company need to use Excess Capacity
to supply their own uses. Centennial' s lease of Excess
Capacity may be reduced only to the extent that there is an
irreconcilable conflict between Centennial' s use of Excess
Capacity and other shareholders' need to use Excess Capacity
to fulfill their own water supply requirements; provided, that
Centennial's lease of Excess Capacity shall not be reduced
below fifty percent (50%) of the Enlargement Capacity. The
Ditch Company shall give Centennial written Notice of
Reduction not later than five (5) years prior to the end of
the Initial Term or any Renewal Term, and such reduction shall
become effective five (5) years after the date of such Notice
of Reduction.
3. 7. 3 Termination By Centennial. Centennial may
terminate this Lease Agreement at any time by delivering
written Notice of Termination to the Ditch Company with
payment to the Ditch Company of a termination penalty of two
times the most recent minimum annual payment made pursuant to
Section 3.3.2 herein .
6
3.8 Notices. All notices provided for herein shall be
addressed to and delivered to the parties at their addresses set
forth in the first paragraph of this Lease Agreement.
IN WITNESS WHEREOF, this Lease Agreement is executed as
of the day and year first above written.
NEVADA DITCH HOLDING COMPANY
ATTEST:
7
CENTENNIAL WATER AND SANITAT ION
DISTRICT
By~~~~~~~~~~~~~~~-
' President
ATTEST:
SERVICE LINE AND STOP BOX
REPAIR, MAINTENANCE AND OWNERSHIP
RESPONSIBILITIES
SHOULD THE CITY ASSIST THE RESIDENT IN MAINTAINING THEIR
SERVICE LINE?
1. Leaking -
What the Code states:
The resident owns the entire service line. The City
may, at its option, but is not obligated to, repair the
portion in the public right-of-way.
What the Utilities Department is currently doing:
When a service line leaks in the public right-of-way,
we will repair it. When a service line leaks on
private property, we tell the homeowner that it is
their responsibility. We perform none of these
services for customer classes other than single family
residential.
Options:
A.
B.
Resident responsible for the entire length of
service line.
City is responsible for the entire length of
service line.
city is responsible for the section located in the
public right-of-way and resident is responsible
for the section located on their property.
2. Frozen Lines -
What the Code states:
The resident owns the entire service line. The City
may, at its option, but is not obligated to, thaw the
portion in the public right-of-way. The Code makes
special provisions for thawing service lines on private
property in terms of cost recovery.
What the Utilities Department is currently doing:
When a service line freezes in the public right-of-way,
we will thaw it, either with a welder or a hotsy. When
a service line freezes on private property, we are not
obligated to thaw it, but have been assisting whenever
a service line was frozen. We perform none of these
services for customer classes other than single family
residential.
Options:
A. Resident responsible for thawing. ® City will assist thawing.
3. Lead/Galvanized Line -
What the Code states:
The City Code does not specifically address situations
involving the repair, replacement, or failure of lead
or galvanized service lines other than those generally
listed above for leaking and freezing. Our current
standard is type "K" copper pipe.
What the Utilities Department is doing:
If the resident replaces the portion on private
property with copper, the City will replace the portion
in the street at no cost to the customer. When the
City installs a meter pit, if the service line is lead
or galvanized steel, we will replace it with copper at
no cost to the customer from the street to the property
line. From the curb stop to the house, the customer
must replace.
Options:
A. City will, if mandated, force resident to replace
entire service line.
~ City will replace entire service line. 0 Split responsibility at property line if resident
replaces their side of the service line.
D. City will replace section in the public right-of-
way. @ City will replace section of service line in
public right-of-way when doing a meter pit
installation.
4. Poor Flow Characteristics -
What the Code states:
The City Code does not specifically address this issue
other than to state that the service line is the
property and responsibility of the property owner.
What the Utilities Department is doing:
The City does not repair, replace or maintain service
pipes that are partially blocked. If a property owner
agrees, the City will excavate the service line at the
curb stop so the property owner can hire their own
plumber to clean the service line. The City back-fills
the excavation. This service is offered in the
southern part of Englewood where there are problems,
caused by the City's use many years ago of a certain
treatment chemical.
Options:
A. Resident responsible for entire service line.
B. City is responsible for entire service line.
~ City/Owner split responsibility at the property
line.
WHO SHOULD BE RESPONSIBLE FOR MAINTAINING THE CURB STOP
VALVE ON THE RESIDENT'S SERVICE LINE?
curb stops are the only means to shut off the service line
without excavating the main line. Service lines are shut
off for three reasons: failure to pay an outstanding water
bill, resident's inside shut-off valve is not functional, or
the City is doing main line cleaning. The curb stop valve
is located at the property line.
What the Code states:
The City Code clearly makes the repair and maintenance
of the curb stop the property owner's responsibility.
What the Utilities Department is doing:
The City does not repair broken or defective curb stops
except in the case where the valve fails when a Water
Department employee operates it for routing maintenance
purposes i.e. water meter maintenance, etc. If the
valve fails when a City employee operates it to turn
off water because the account is delinquent, the City
will not pay for the repair.
tions:
The resident is responsible.
The City is responsible.
CONCRETE REPAIR AND REPLACEMENT
What the City Code states:
The City Code does not address this question.
What the Utilities Department is currently doing:
The Water Department tries to avoid concrete removal
and replacement. If a curb stop has been covered with
concrete during a concrete or paving district, the
Water Division will remove the concrete, repair the
curb stop and replace the concrete. If the concrete is
damaged due to a water main break, the Water Department
will pay for the repair.
During water meter installations, the Water Department
will try to avoid concrete. If we must remove concrete
to install the meter pit, we have generally replaced
the concrete. If the concrete is City owned concrete,
we will replace it. If the concrete is private
concrete, we have hesitated, but do replace it within
reason. The City does not replace extraordinary
landscaping.
In 1987, when the Council passed the ordinance
requiring the transfer of flat rate water customers to
meter upon the sale of the property, the Council
directed the Water Department to install meter pits
where they are necessary in an effort to keep the cost
of meter installations relatively equal for all
customers. The question posed here is -should
replacement of private concrete and extraordinary
landscaping be considered part of the replacement
costs?
PRIVATE IRRIGATION SYSTEMS:
What the City Code states:
The city Code does not address this question.
What the Utilities Department is doing:
The Water Department tries to avoid all but the most
simple repairs. If a private sprinkler system is in
the way of a meter pit installation, we are asking the
customer to move it before we do our work. We have
paid to move some of them, but we are now leaning
towards having the customer do it.
(J
~
L
QJ
-"" (.)
0
J
l'-
C\J
Lii
lD
¢
!<)
0
ci:i
0
lO en
' l!)
0
'-¢
0
I u
Cf)
I
¢
0
¢
/
3:
L
I
¢
0
¢
/
Cf)
Conllact No. 1 • Union Ave. PIS
River Intake Modifications
Chem Feed: KMN04 • PAC?
Monitoring: Turbidity, Temp, PH; Provisions
for Particle Counter, TOC
Preliminary Design
Final Design
Bidding
Construction
Contlact No. 2 -Allen WTP Upgrade
Raw Water Delivery
Floc/Sed
Backwash Basin Bypass
Filter Modifications
Disinfection Modifications
Building Modifications
Preliminary Design
Final Design
Bidding
Construction
Corlllact No. 3. Backw8ltl Baaln McdlcalDi18
Final Design
Bidding
Construction
R11ld11all Sludy
Golf Course Permitting
Residuals Study
Conlract No. 4 -Sold8 Handling
Final Design
Bidding
Construction
CDM Camp Dresser & McKe e
1996 -
I
..... .,... -i .,... -:e I CD ~ c ~ ;::, ;::, ~ .., ..,
--
--.,... ... ... I .,...
.! -.8 .,...
i ... i E .,...
I J I .,... ! :e ~ ~ ~
c;c c
·-0 0 +-·-+-c+-o~ <V
+-a a. _2 E 0 E
::> 0 c 0
(J)U LL u
~,~,
c;c c
·-0 0 +-·-+-c +-
o~ <V
+-a -a. _2 E g E -::> 0 ·-0
(J)i ,~ r
1997 ..
-.! ..... ..... ... I .,... ! j .,... .,...
~ CD ~ c ~ ;::, ;::, :& .., ..,
1998
-.,... -I ... .,... ...
I .,...
~ .8 .....
i -... .,... i ~ I ..... .,... i j ..... -~ :e I CD ~ ~ ~ c ~ ;::, ;::, cl z .., ..,
0 c c
0 0 +-·-c +-+-
o~ <V
+-a. -0. (J) E gE ..0
::::> 0 ·-0 CJ) u LLU
~, ~ -So uth Fl ter IV odific ptlons
0 '-0 0 +-·-:;:: c +-
o~ <V
+-a. a. (J) -
..0 E 0 E c ::> 0 0
CJ) u LL u
~, ~,
Englewood, Co .
Allen WTP Upgrade Modifications
Schedule