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Home My WebLink About20120289.tiff INTERGOVERNMENTAL AGREEMENT FOR PAYMENT OF BONUS AMOUNTS FOR CERTAIN REPORTED OIL AND GAS EMPLOYEES RESIDING WITHIN MUNICIPAL BOUNDARIES THIS INTERGOVERNMENTAL AGREEMENT is made and entered into effective as of the 17`h day of January, 2012, A.D. between the COUNTY OF WELD, a political subdivision of the State of Colorado, whose address is 915 10th Street, P. O. Box 758, Greeley, CO 80632, hereinafter referred to as "Weld County," and the CITY OF EVANS, a municipal corporation of the State of Colorado, with address of 1100 37th Street, Evans, CO 80620, hereinafter referred to as"Municipality." WITNESSETH: WHEREAS, the Colorado Department of Local Affairs ("DOLA") distributes revenue derived from energy and mineral extraction statewide, with revenues coming from State Severance Tax receipts and Federal Mineral Lease non-bonus payments, and WHEREAS, on October 26, 2011, the Board of County Commissioners entered into an agreement with William Jerke to assist in ensuring that the maximum number of oil and gas employees residing within unincorporated Weld County and the various municipalities within Weld County are reported to the State of Colorado, and WHEREAS, generally, the terms of the agreement with Mr. Jerke call for the payment of a base amount of $20,000 plus for all reported oil and gas employees residing within Weld County over 2,045 (residing in unincorporated Weld County), a bonus amount of 5% of the State of Colorado Severance Tax Direct Distribution payment per employee (maximum $50), and 5% of the Federal Mineral Lease Distribution per employee (maximum $50), paid to Mr. Jerke upon the receipt of said State and Federal sums by the County (said distributions being collectively referred to herein as "Distributions"), and WHEREAS, Municipality recognizes that it will benefit financially from the payment of the $20,000 by County, because the work performed by Mr. Jerke will most likely result in increased Distributions to it by DOLA, and WHEREAS, Municipality offers, through this IGA, to share in the cost of the agreement with Mr. Jerke by paying a pro rata share of the additional base of$10,000 (the increase of the base from $10,000 to $20,000) dependent upon the municipalities percentage of the 2,045 employees counted in 2011 (as shown on the attached Exhibit"A"), plus the bonus amount for all reported oil and gas employees residing within their municipality in 2012 over the number of employees reported for their municipality for 2011, and WHEREAS, in accordance with Section 29-1-203, C.R.S., political subdivisions may cooperate or contract with one another to provide any function, service or facility lawfully authorized to beach of the corporations or contracting entities. ayv n+! Ord 1/44, , )— c2O/3 Gh5 �1 00-0O . 2012-0289 1 -31- 1a- Page 1 of 3 e UGY,3 WITNESSETH: NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein,the parties hereto agree as follows: 1. PAYMENT BY MUNICIPALITY OF BONUS AMOUNTS FOR CERTAIN REPORTED OIL AND GAS EMPLOYEES RESIDING WITHIN MUNICIPALITY'S BOUNDARIES: Municipality agrees to pay to County a pro rata share of the additional base of$10,000 (the increase of the base from $10,000 to $20,000) dependent upon the municipalities percentage of the 2,045 employees counted in 2011 (as shown on the attached Exhibit "A"), plus the bonus amount for all reported oil and gas employees residing within their municipality in 2012 over the number of employees reported for their municipality for 2011. The term "bonus amount" shall be the amount of 5% of the State of Colorado severance tax direct distribution payment per employee (maximum $50), and 5% of the federal mineral lease distribution per employee (maximum $50). Payment shall be made by Municipality to County at the end of the quarter when the Distributions are received. 2. TERM: The term of this IGA shall be from January 1, 2012, to and until December 31, 2012. 3. ENTIRE AGREEMENT: This writing constitutes the entire IGA between the parties hereto with respect to the subject matter herein, and shall be binding upon said parties, their officers, employees, agents and assigns and shall inure to the benefit of the respective survivors, heirs, personal representatives, successors and assigns of said parties. 4. NO WAIVER OF IMMUNITY: No portion of this IGA shall be deemed to constitute a waiver of any immunities the parties or their officers or employees may possess, nor shall any portion of this IGA be deemed to have created a duty of care which did not previously exist with respect to any person not a party to this IGA. 5. NO THIRD PARTY BENEFICIARY ENFORCEMENT: It is expressly understood and agreed that the enforcement of the terms and conditions of this IGA, and all rights of action relating to such enforcement, shall be strictly reserved to the undersigned parties and nothing in this IGA shall give or allow any claim or right of action whatsoever by any other person not included in this IGA. It is the express intention of the undersigned parties that any entity other than the undersigned parties receiving services or benefits under this IGA shall be an incidental beneficiary only. Page 2 of 3 Signed by the parties this day of , 2012. • - ----,„ COUNTY OF WELD, a political Clerk to the Board subdivision of the State of Colorado r t �� P „6, �` By: (7 _ it p 1 c to the Board Sean P. Conway, Chairman ::i :\ ,,,,lime+ri,,,,, Board of County Commissioners of the L_y_ 0 k.***F,FIi9,, County of Weld JAN 3 0 2012 F • .N= ATTEST: _ i SEAL :CITY OF EVANS, a municipal cjporation of the State of Colorado :kzi� •ORP•.O s� 1 By: (O By: / 77,,y_r_.> Kim Betz, City Clerk L hziger, Mayor i Page 3 of 3 cVC/cQ - (7-1V OFFICE OF BOARD OF COMMISSIONERS 1 8 6 1 - 2 0 1 1 PHONE: 970-336-7204 FAX: 970-352-0242 11500 O O STREET 0 N T Y W E L. ) P.O. BOX 758 GREELEY, COLORADO 80632 November 14,2011 The Honorable Lyle Achziger City of Evans 1100 37th Street Evans,Colorado 80620 Re: Oil and Gas Employee Counts Dear Mayor Achziger and Evans Council Members: As you are aware, the Colorado Department of Local Affairs(DOLA)distributes revenue derived from energy and mineral extraction statewide. The revenues come from State Severance Tax receipts and Federal Mineral Lease non-bonus payments. Under state law,DOLA sets the distribution formula for the allocation of funds. One of the key factors in the distribution formula is the number of oil and gas employees residing in your community. The amount received per oil and gas employee residing in the unincorporated area of the county or the municipalities within Weld County was$1,912.75 in 2009,$722.25 in 2010,and$1,116.74 in 2011. In 2009,Weld County and the municipalities within the county received a total of$3,752,806.04 for employees under the formula,in 2010 they received$938,929.48, and in 2011 they received$2,280,382.93. Overall in 2011,the county or the municipalities within Weld County received over$5.5 million from the severance tax and Federal Mineral Leasing revenues. Needless to say,it is very important to Weld County and the municipalities within Weld County that all eligible oil and gas employees residing within their communities are reported to the state each year. To assist in ensuring the maximum . eligible employees are reported,the Board of Weld County Commissioners,on October 24,2011,entered into a contract with Bill Jerke to assist in this effort. In 2011, Mr. Jerke was engaged by Weld County to do the same work and Mr.Jerke was successful in getting 2,045 employees within Weld County reported. In 2011,municipalities benefiting from this agreement participated by sharing in the cost of Mr.Jerke's agreement. The terms for the contract signed October 24, 2011, with Mr. Jerke call for an increased contract base amount of $20,000. For all reported oil and gas employees residing within Weld County over the 2011 base count of2,045,a bonus amount of five percent (5%) of the State of Colorado Severance Tax Direct Distribution payment per employee (maximum$50),and 5%of the Federal Mineral Lease Distribution per employee(maximum$50),will be paid to Mr.Jerke upon the receipt of said State and Federal sums by the County. lf,for any reason,the State does not pay the anticipated Severance Tax Direct Distribution,the County will not be obligated to pay the State bonus to Mr.Jerke. Weld County and all municipalities within Weld County will benefit financially from this effort. Weld County is proposing to once again pay $10,000 of the base amount which has increased to $20,000. We are asking each municipality benefiting from the effort to share in the cost of the contract by paying a prorate share of the additional base of$10,000(increasing from$10,000 to$20,000)based upon the municipalities percentage of the 2,045 employees counted in 2011,plus the bonus amount for all reported oil and gas employees residing within their municipality over the number of employees reported for their municipality for 2011. The attached sheet shows the number of reported employees for each municipality in 2011 and the pro-rated share of the$10,000 additional amount of the base. The Board of Weld County Commissioners believes this is the most efficient way to maximize the number of reported employees and an equitable way to share the costs for the additional base amount of$10,000 and bonus reporting. CITY OF EVANS NOVEMBER 14,2011 PAGE 2 If your municipality is agreeable to participating in this effort for 2012,and the terms proposed are acceptable to you, please have your Mayor or Administrator contact Monica Mika, Director of Finance and Administration, at 970-356-4000 Extension 4210, or Barbara Kirkmeyer, Chair of the Board of Weld County Commissioners at 970-336-7204. Very truly yours, BOARD OF COUNTY COMMISSIONERS r Barbara Kirkm�,Chair S�nwa �e ou as Rad er David E.Long illiam F.Garcia cc: Aden Hogan,Administrator Monica Mika Don Warden JERKE 2012 CONTRACT BASE ALLOCATION TO MUNICIPALITIES COLORADO EMPLOYEE RESIDENCY REPORT-NUMBER OF EMPLOYEES MUNCIPALITY Original Prorata Share of Total Share of 2011 Percent $10.000 Base $10.000 Allocation $20.000 Base AULT 15 0.007335 $ - $ 73.35 $ 73.35 DACONO 21 0.010269 $ - $ 102.69 $ 102.69 EATON 35 0.017115 $ - $ 171.15 $ 171.15 ERIE 10 0.00489 $ - $ 48.90 $ 48.90 EVANS 286 0.139853 $ - $ 1,398.53 $ 1,398.53 FIRESTONE 17 0.008313 $ - $ 83.13 $ 83.13 FORT LUPTON 123 0.060147 S - $ 601.47 $ 601.47 FREDERICK 24 0.011736 $ $ 117.36 $ 117.36 GARDEN CITY 5 0.002445 $ - $ 24.45 $ 24.45 GILCREST 22 0.010758 $ - S 107.58 $ 107.58 GREELEY 733 0.358435 $ - $ 3,584.35 $ 3,584.35 GROVER 1 0.000489 S - $ 4.89 $ 4.89 HUDSON 15 0.007335 $ - S 73.35 $ 73.35 JOHNSTOWN 57 0.027873 $ - 5 278.73 $ 278.73 KEENSEBURG 14 0.006846 $ - $ 68.46 $ 68.46 KERSEY 32 0.015648 $ - 5 156.48 $ 156.48 LA SALLE 38 0.018582 5 - $ 185.82 S 185.82 LOCHBUIE 26 0.012714 $ - S 127.14 $ 127.14 MEAD 9 0.004401 $ - $ 44.01 $ 44.01 MILLIKEN 43 0.021027 $ - $ 210.27 $ 210.27 NUNN 5 0.002445 $ - $ 24.45 $ 24.45 PIERCE 7 0.003423 $ - $ 34.23 $ 34.23 PLATTEVILLE 46 0.022494 $ - $ 224.94 $ 224.94 RAYMER 0 0 $ - $ - $ - SEVERANCE 10 0.00489 5 - $ 48.90 $ 48.90 WINDSOR 49 0.023961 $ - $ 239.61 $ 239.61 BRIGHTON 0 0 $ - $ - $ - NORTHGLEN 0 0 $ - $ - $ - LONGMONT 0 0 $ - $ - $ - BERTHOUD 0 0 $ - $ - $ - UNINCORPORATED WELD COUNTY 402 0.196577 $ 10,000.00 $ 1,965.77 $ 11,965.77 TOTAL 2045 1 $ 10,000.00 $ 10,000.00 $ 20,000.00 Hello