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Home My WebLink About20121328 RESOLUTION 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 1,2012,and ending March 31, 2013,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 30th day of May,A.D.,2012,nunc pro tunc April 1,2012. BOARD OF COUNTY COMMISSIONERS WELD COUNTY,COLORADO ATTEST: Sean P. onway air Weld County Clerk to the Board L� illiam F.Garcia, - em BY: Deputy Cle+!to the Boa;i:,(1' ( 0ry�tt'XCUSED faara Kirkmeyer APP A J� m: C1' , � '' F cam` avid E.Long . p ounty ttorney {q q l'k4 CJWY Douglas/Rademac r Date of signature: 1,1- -/a PU) 2012-1328 `�..3(-ID- U '<)a'1 3 EG0066 L MEMORANDUM TO: Esther Gesick, Clerk to the Board DATE: May 24, 2012 G p_V__ T Y� FROM: Clay Kimmi, P.E., CFM, Public Works SUBJECT: Lease Agreement for Varra Companies to Store and Release Rural Ditch Water for County's Hokestra Gravel Pit Water Rights Obligations Please place the attached agreement on the BOCC Agenda. The attached agreement was presented at a work session with the BOCC on May 2, 2012. The agreement is between Weld County and Varra Companies for the storage the County's Rural Ditch Shares in the Varra 112 Pit. Varra releases the stored water for Weld County pursuant to an augmentation replacement schedule approved by the Colorado Division of Water Resources. The agreement is a renewal of a previous agreement between the County and Varra. At the conclusion of the work session, the BOCC authorized Public Works to proceed with obtaining the signatures from Varra Companies. I will plan on attending the BOCC hearing to answer any questions that the Board may have regarding this agreement. Once the agreements have been signed, please send one of them back to me so that I can provide it to Varra Companies. Page 1 of I M.\Clay\Water Rights\Hoekstra\Vain Lease Memo to Clerk to the Hoard 5-24-12.docx AGREEMENT THIS AGREEMENT is made and entered into this /© h day of May, 2012, by and between the County of Weld, a body politic of the State of Colorado, by and through the Board of County Commissioners of the County of Weld, State of Colorado, whose address is 1150 "O" Street, Greeley, Colorado, 80631„ (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 the St. Vrain River in order to augment water which is depleted in the course of COUNTY'S mining activities at the Hokestra Gravel Pit, located in a portion of the NW1/4 of Section 2, Township 2 North (T2N), Range 68 West (R68W) of the Sixth Principle Meridian (6th P.M.), Weld County, Colorado (hereinafter "COUNTY PREMISES"); and WHEREAS, SAND LAND, INC. AND SAND LAND PROPERTIES, LLC. owns and controls, and VARRA manages and operates a portion of the S1/2 of Section 2, Township 2 North, (T2N), Range 68 West (R68W) of the Sixth Principle Meridian (6th P.M.), Weld County, Colorado which includes a lined gravel pit known as the "112 Pit" (hereinafter "VARRA PREMISES"); and WHEREAS, water is collected in VARRA'S 112 Pit in sufficient quantity to satisfy COUNTY'S augmentation obligation, and WHEREAS, VARRA is willing to sell to COUNTY and COUNTY is willing to purchase from VARRA the water needed to meet COUNTY'S required augmentation obligation, and WHEREAS, VARRA'S 112 Pit can be utilized to deliver water to the Saint Vrain River on behalf of COUNTY throughout the year via an earthen ditch, which is located on the VARRA PREMISES to the point where the ditch crosses under Weld County Road 24.5, at which point the ditch is located on COUNTY PREMISES where it runs along the eastern edge of the COUNTY PREMISES, (the precise route of the transfer of water is described on Exhibit 1, a copy of which is attached hereto and made a part hereof by this reference); and WHEREAS, the parties desire to enter into an agreement to facilitate the use of VARRA'S 112 Pit 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 155.49 acre feet of water associated with the COUNTY'S shares in the Rural Ditch and to lease an additional 11.4 acre feet of VARRA'S Rural Ditch water stored in the 112 Pit to the COUNTY. The water is measured via a saddle weir on VARRA'S reservoir outlet works located on the VARRA PREMISES. 1 2. The schedule of storage of water for the County and the delivery of the same is set forth in the following table: Historic Accr. & Rural Ditch Excess Depl.for Water that is Credit Releases Rural Immediately Diverted from 112 Pit Additional Ditch Returned to to Storage for Rural Ditch Month Shares the River in 112 Pit Augmentation Lease Total (ac-ft) (ac-ft) (ac-ft) (ac-ft) (ac-ft) (A) (B) (CZ Apr-12 -6.66 5.35 11.4 May-12 23.98 10.98 13.00 0.00 Jun-12 51.76 11.67 40.09 0.00 Jul-12 82.56 13.52 69.04 0.00 Aug-12 47.96 14.59 33.37 0.00 Sep-12 13.93 13.93 0.45 Oct-12 -4.10 18.52 Nov-12 -10.00 23.05 Dec-12 -9.71 22.09 Jan-13 -9.32 20.78 Feb-13 -8.92 18.73 Mar-13 -8.55 19.05 Total 162.9 64.7 155.49 128.02 11.4 3 In consideration of the delivery of water by VARRA as contemplated in this Agreement, COUNTY shall pay to VARRA $75.00 per acre-foot for each acre foot of water delivered from the 112 Pit for COUNTY'S benefit up to a maximum delivery of 166.89 acre feet. The payment shall be due by April 15, 2013 based on the amounts delivered from VARRA'S 112 Pit for COUNTY'S benefit. 4. VARRA will provide monthly accounting to COUNTY or to its designated representative to show the timing and amount of water released by VARRA from its 112 Pit for COUNTY'S benefit. 5. If VARRA determines it may not be able to, or cannot make the deliveries required by this Agreement due to matters beyond its control, it shall notify COUNTY immediately in writing so that COUNTY can make alternative arrangements. 6. The term of this Agreement shall commence April 1, 2012, and shall terminate March 31, 2013. 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 2 execution of this Agreement, COUNTY does not warrant that 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. 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, and 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. SAND LAND, INC. AND SAND LAND PROPERTIES, LLC have reviewed this Agreement and hereby consent to and approve of the Agreement. 15. 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. 16. This Agreement is binding upon the parties, their successors and assigns. IN WITNESS WHEREOF, VARRA and COUNTY, by the authority of its Board of Directors, caused this Agreement to be executed by their President on the date and year written below. 3 . r VARRA COMPANIES, INC By: &11.) i &at- Name: Cie.r1CThl/, rCC 17e- Title SAND LAND, INC. By: , IL-- Name: /i eg • C Title SAND LAND PROPERTIES, LLC By: �l,„,,& afra- Na e: t45evait lVufrA Title COUNTY OF WELD, a body corporate and politic of the STATE OF COLORADO, by and through the BOARD OF COUNTY COMMISSIONERS OF THE COUNTY OF ATTEST:� J WELD Deputy Clerk to the Board ,'N' a aV'o _ 1861 ( 14;2 , c---9--, p De.f y Clerk to th- : i . `r. Sean P. Conway, Chairman °U 1`1`a MAY 3 0 201 _.:L.-_--c- -27°/02-/3‘)$ 4 Hello