HomeMy WebLinkAbout20131318.tiffRESOLUTION
RE: APPROVE AGREEMENT FOR LEASE OF STORAGE OF RURAL DITCH WATER AT
HOKESTRA GRAVEL PIT AND AUTHORIZE CHAIR TO SIGN - VARRA
COMPANIES, INC.
WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to
Colorado statute and the Weld County Home Rule Charter, is vested with the authority of
administering the affairs of Weld County, Colorado, and
WHEREAS, the Board has been presented with an Agreement for Lease of Storage of
Rural Ditch Water at Hokestra Gravel Pit between the County of Weld, State of Colorado, by
and through the Board of County Commissioners of Weld County, on behalf of the Department
of Public Works, and Varra Companies, Inc., commencing April 1, 2013, and ending March 31,
2014, with further terms and conditions being as stated in said agreement, and
WHEREAS, after review, the Board deems it advisable to approve said agreement, a
copy of which is attached hereto and incorporated herein by reference.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of
Weld County, Colorado, that the Agreement for Lease of Storage of Rural Ditch Water at
Hokestra Gravel Pit between the County of Weld, State of Colorado, by and through the Board
of County Commissioners of Weld County, on behalf of the Department of Public Works, and
Varra Companies, Inc., be, and hereby is, approved.
BE IT FURTHER RESOLVED by the Board that the Chair be, and hereby is, authorized
to sign said agreement.
The above and foregoing Resolution was, on motion duly made and seconded, adopted
by the following vote on the 3rd day of June, A.D., 2013, nunc pro tunc April 1, 2013.
BOARD OF COUNTY COMMISSIONERS
WELD CQt3Al FY COLORADO
ATTES
Weld County Clerk to the Board
C
BY:
Deputy
AP
(C
to the Boar
n y ttorney
ate of signature: JUN 12 2013
0160) Mit
William
. Garcia, Chair
ougl:s Radem-cher, Pro-Tem
EXCUSED
Barbara Kirkmeyer
oh 'RN (dev(?),4
2013-1318
EG0068
MEMORANDUM
TO: Clerk to the Board DATE: May 30, 2013
FROM: Clay Kimmi, Public Works Department
SUBJECT: BOCC Agenda
Renewal of Agreement (Doc # 2012-1328)
Agreement with Varra Companies, Inc. to store and release rural ditch water for County's
Hokestra Gravel Pit water rights obligations in the amount of $32,000.
See the attached approved Work Session Cover Letter for more detail.
Three duplicate, signed agreements are attached. Please returned two original signed agreements
to Public Works.
M:\Francie\AGENDA memos\AgendaClayKimmi. docx
2013-1318
BOARD OF COUNTY COMMISSIONERS
WORK SESSION COVER LETTER
Department/Office Public Works Date: May 16, 2013
Person requesting work session: Clay Kimmi Extension: 3741
Has your commissioner coordinator/elected official approved the work session?
Recommended length of time needed for discussion: 15 minutes
In addition to yourself and the board, who should attend? David Bauer , Bruce Baker, Stephanie Aries
Brief description of the issue:
Weld County has had an agreement with Varra Companies for at least the last 10 years to store and release our Rural
Ditch irrigation water to satisfy the County's water rights obligations regarding the exposed groundwater at the
Hokestra Pit. Varna has the ability to divert our Rural Ditch shares into their storage reservoirs. They also have the
ability to return augmentation water to the Saint Vrain River on our behalf. The agreement is signed on a year to
year basis. This agreement is for the renewal of the previous agreement.
For the period of April 1, 2013 to March 31, 2014, the County has to retum approximately 215 ac -ft of water to the
Saint Vrain River for augmentation purposes. Varra has agreed to store and release our water according to the
release schedule approved by the Division of Water Resources in our Hokestra substitute water supply plan. For the
2013 agreement period, Varra has agreed to store and release the water based on a fee of $150 per ac -ft
(approximately $32,000). Varra's normal rate charged to other mining companies is $500 per ac -ft. The $150 per
ac -ft price is up from $75 per ac -ft in 2012. The price increase is based on the cost of electricity used to pump our
water from Varra's storage facility into a ditch that returns water to the St. Vrain River. The price also includes
Varra's time to provide the water rights accounting to the State Engineer's Office and Clear Water Solutions.
The payment would be due in April 2014. The $32,000 can be included in the 2014 water rights budget. Due to the
installation of a slurry wall at the Hokestra Pit, this is the last year that the Storage Agreement should be needed. In
2014, Weld County should have the capability to store the Rural Ditch Water in our own storage reservoir and return
it to the St. Vrain River.
Varra has historically been very responsive to our needs regarding the storage and release of our augmentation
water. This agreement has been reviewed by Stephanie Aries to ensure that it is compatible with similar
agreements that County has entered into. Varra has reviewed and accepted the agreement.
Options for the board:
1. Sign the agreement with Varra.
2. Don't sign the agreement with Varra and look for another entity to store and release our water.
Recommendation to the board:
Sign the agreement to renew it with Varra so that the County can meet the requirements of the State Engineer's
Office approved substitute water supply plan.
Approve
Recommendation
William F. Garcia, Chair
Douglas Rademacher, Pro-Tem
Sean P. Conway
Mike Freeman
Barbara Kirkmeyer
Schedule
Work Session
Other
4
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AGREEMENT
THIS AGREEMENT is made and entered into this 2,44 day of May, 2013, by
and between WELD COUNTY, (hereafter "COUNTY") and VARRA COMPANIES,
INC. (hereinafter "VARRA").
WITNESSETH:
WHEREAS, County owns water rights in the Rural Ditch and is required to make
augmentation deliveries to augment depletions associated with mining at the Hokestra
Gravel Pit located in a portion of the NW1/4 of Section 2, T2N, R68W of the 6th P.M.,
Weld County, Colorado; and
WHEREAS, Varra owns and operates several lined gravel pits along in the Saint
Vrain River Basin including but not limited to the 112 Pit, Dakolios East, Von Ohlen
Reservoir, and others (hereafter "VARRA RESERVOIRS"); and
WHEREAS, water is collected in the Varra Reservoirs in sufficient quantity to
satisfy County's augmentation obligation; and
WHEREAS, the Varra Reservoirs can be utilized to deliver water for the County
to the Saint Vrain River throughout the year; and
WHEREAS, the parties desire to enter into an agreement to facilitate the use of
the Varra Reservoirs to store and deliver water for the County.
NOW, THEREFORE, in consideration of the mutual promises and covenants of
the parties hereto, IT IS HEREBY AGREED AS FOLLOWS:
1. VARRA agrees to store up to 215.03 acre feet of water associated with the
County's shares in the Rural Ditch. The water is measured via a saddle weir on
Varra's reservoir outlet works.
2. The schedule of storage of water for the County and the delivery of the same is
set forth in the following table:
Rural Ditch
Historic
Water that
Weld County
Accr, &
is
Excess
End of Month
Releases
Depl. for
Immediately
Credit
Storage
from Storage
Rural Ditch
Returned to
Diverted to
Balance in
for
Month
Shares
the River
Storage
Storage
Augmentation
(ac -ft)
(ac -ft)
(ac -ft)
(ac -ft)
(ac -ft)
(A)
(8)
(C)
(D)
(E)
Apr -13
-6.66
0.00
15.72
6.66
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d0/3-/918
May -13
23.98
0.00
23.98
39.15
0.00
Jun -13
51.76
0.00
51.76
89.38
0.00
Jul -13
82.56
0.00
82.56
168.96
0.00
Aug -13
47.96
0.00
47.96
213.53
0.00
Sep -13
13.93
5.15
8.78
219.74
0.00
Oct -13
-4.10
0.00
190.63
27.34
Nov -13
-10.00
0.00
159.47
30.27
Dec -13
-9.71
0.00
130.53
28.39
Jan -14
-9.32
0.00
103.99
26.09
Feb -14
-8.92
0.00
80.72
22.85
Mar -14
-8.55
0.00
57.19
23.02
Total
162.9
5.2
215.03
WA
164.62
3. In consideration for the operations contemplated in this Agreement, the County
shall pay to Varra $150.00 per acre-foot for each acre foot of water delivered
from the Varra Reservoirs for the County's benefit up to a monthly maximum
delivery of 82.56 acre feet. The payment shall be due by April 15, 2014 based on
the amounts delivered from the Varra Reservoirs for the County's benefit.
4. Varra will provide monthly accounting to County to show the timing and amount
of water released by Varra from the Varra Reservoirs for the County's benefit.
5. If Varra determines it may not be able or cannot make the deliveries required by
this Agreement due to matters beyond its control, it shall notify the County
immediately in writing so the County can make alternative arrangements.
6. The term of this Agreement shall commence April 1, 2013 and shall terminate
March 31, 2014.
7. Financial obligations of County payable after the current fiscal year are
contingent upon funds for that purpose being appropriated, budgeted, and
otherwise made available. By execution of this Agreement, County does not
warrant that the funds will be available to fund this Agreement beyond the current
fiscal year.
8. No term or condition of this contract shall be construed or interpreted as a waiver,
express or implied, of any of the immunities, rights, benefits, protections or other
provisions of the Colorado Governmental Immunity Act §§24-10-101 et seq., as
applicable now or hereafter amended.
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9. Varra shall strictly comply with all applicable federal and State laws, rules, and
regulations in effect or hereafter established, including without limitation, laws
applicable to discrimination and unfair employment practices.
10. Colorado law, rules, and regulations established pursuant thereto, shall be applied
in the interpretation, execution, and enforcement of this Agreement. Any
provision included or incorporated herein by reference which conflicts with said
laws, rules and/or regulations shall be null and void.
11. It is expressly understood and agreed that the enforcement of the terms and
conditions of this Agreement, and all rights of action relating to such
enforcement, shall be strictly reserved to the undersigned parties and nothing in
this Agreement shall give or allow any claim or right of action whatsoever by any
other person not included in this Agreement. It is the express intention of the
undersigned parties that any entity other than the undersigned parties receiving
services or benefits under this Agreement shall be an incidental beneficiary only.
12. In the event of a dispute between County and Varra, concerning this Agreement,
the parties agree that Weld County shall not be liable to or responsible for the
payment of attorney fees and/or legal costs incurred by or on behalf of Varra.
13. This Agreement shall not be valid until it has been approved by the Board of
County Commissioners of Weld County, Colorado or its designee.
14. This document represents the complete agreement of the parties hereto and no
oral modification shall be recognized. Any amendments or additions shall be
made in writing signed by the parties.
15. This Agreement is binding upon the parties, their successors and assigns.
IN WITNESS WHEREOF, VARRA has and WELD has, by the authority of its
Board of Directors, caused this Agreement to be executed by their President on the date
and year written below.
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VARRA COMPANIES, INC
By: Aq-u r- roar -
Name: Garrett Varra Date
Title: Vide President
Lea'
entilae)
Attest:
Secretar
By:
Name: stopher Varra Date:
By: a4 " ?COI, S—.? 9 -.?01?
Name: Garrett
By: a --
Name: Peter Varra
5-z�1-7,0/3
ATTEST:
Weld County Clerk to the Board
BY:
Deputy Clerk to "e Board
Date:
-21-2013
Date:
BOARD OF COUNTY
COMMISSIONERS
WELD COUNTY, COLORADO
William Ig" Garcia, Chair
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JUN 0 3 2013
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