HomeMy WebLinkAbout20110571 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 I`) day of Fe bRui4t2q, 2011, 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 FORT LUPTON, a
municipal corporation of the State of Colorado, with its principal office located at 130 S.
McKinley, P.O. Box 148, Fort Lupton, CO 80621, 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 December 29, 2010, 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 $10,000 plus for all reported oil and gas employees residing within Weld
County over 1,630 (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 $10,000 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 the bonus amount for all reported oil and gas employees residing
within Municipality's boundaries over the average number of employees reported for their
municipality for 2009 and 2010, 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 each of the corporations or contracting entities.
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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 the
bonus amount for all reported oil and gas employees residing within
Municipality's boundaries over the average number of oil and gas employees
reported for Municipality for 2009 and 2010. 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). The average number of oil and gas
employees reported for Municipality for 2009 and 2010 was 130. 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, 2011, to and until
December 31,2011.
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.
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Signed by the parties this day of , 2011.
ATTEST: zf14.. COUNTY OF WELD, a political
Weld County Clerk to the Board subdivision of the
State of Colorado
By: a't d1YtU By:
Deputy C rk to the Board arbara Kir eyer, C air
Board of County Commissioners of the
County of Weld
FEB 2G2011
ATTEST: CITY OF FORT LUPTON, a municipal
corpor i n of the State of Colorado
By: Glit. t- art., By: N -�^ CaL0—'
Barbara Rodgers, Town Cler Tom Holton, Mayor
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WELD COUNTY ATTORNEY'S OFFICE
915 TENTH STREET
P.O. BOX 758
GREELEY CO 80632
WEBSITE: www.co.weld.co.us
PHONE: (970) 336-7235
FAX: (970) 352-0242
COLORADO
January 28, 2011
Tom Holton, Mayor
City of Ft. Lupton
130 S. McKinley
P.O. Box 148,
Fort Lupton, CO 80621
Re: IGA for Payment of Bonus Amounts
for Certain Reported Oil And Gas
Employees
Dear Mayor Holton:
As you may recall,previously this month the Board of County Commissioners sent to you a
letter describing how Weld County has contracted 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. The
County has paid Mr.Jerke the sum of$10,000, and will also pay him 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) for all
employees residing in the unincorporated area of Weld. The letter asks that your municipality
contribute to defraying the$10,000 payment by paying to Weld County a similar amount per
employee who is identified as residing within your municipality. A copy of the letter is
enclosed. Also enclosed is the intergovernmental agreement described in the letter.
If you are agreeable to contributing as described, I ask that you sign the enclosed agreement and
send it to me at the following address: Bruce T. Barker, Weld County Attorney,P.O. Box 758,
915 10th Street, Greeley, CO 80632.
Please feel free to call me at(970) 356-4000,ext. 4390, if you have any questions.
Siti ]y,
Bruce T. Barker
Weld County Attorney
Enc.
1 8 6 1 2 0 1 1 OFFICE OF BOARD OF COMMISSIONERS
PHONE: 970-336-7204
- FAX: 970-352-0242
915 10Th STREET
WELD_-COUNTY P.O. BOX 758
GREELEY, COLORADO 80632
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January 5, 2011 i4 ,EIVN y r '4'4'4'14
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Mayor Tommy Holton � ' F s+ r #x,; Y
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City of Fort Lupton 196$ ' z •; q� ' �"T6 t f '-'�
130 South McKinley • 4., :£ ,
Fioti
Fort Lupton, Colorado 80621
Dear Mayor Holton and City Council Member°, 1 i,"4'fr ° > '.
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. The funds are first allocated as an aggregate by county into a "county
pool,"and then there is a "subcounty pool"which allocates the funds between the county and the
municipalities within the county. For the"county pool"of funds, DOLA has set a weight of 40%for
the Colorado Employee Residence Report, 30% for mining and well permits, and 30% for mineral
production. The"subcounty pool"distribution is 34%for population of the unincorporated citizens
and municipal population, 33% for the Colorado Employee Residence Report, and 33% for road
miles of the county and municipalities within the county. 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 and $722.25 in 2010. In 2009, Weld County and the municipalities within
the county received a total of $3,752,806.04 for employees through the formula, and in 2010, a
total of$938,929.48 was received.
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 insuring the maximum eligible employees are reported,the Board of Weld County
Commissioners entered into a contract with Bill Jerke to assist in this effort on December 29, 2010.
In 2009, Mr. Jerke was engaged by eight Weld County municipalities to do the same work, and he
was successful in reporting 1,962 employees within Weld County. In 2010, Mr. Jerke was not
engaged by any of the Weld County entities and the number of employees was down due to a
decreased effort and the downturn in the drilling activity in the county caused by economic factors
and oil and gas prices.
The terms for the contract with Mr. Jerke call for a contract base amount of $10,000.00. For all
reported oil and gas employees residing within Weld County, over the base number of 1,630, 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 payment, per
employee(maximum $50), will be paid to Mr. Jerke upon the receipt of said State and Federal sums
by the County. If, 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. The figure of
1,630 employees was derived by averaging the number of employees reported in 2009 (1,962)and
in 2010 (1,300).
Weld County and all of the municipalities within Weld County will benefit financially from this effort.
Weld County is proposing to pay the entire $10,000.00 base amount. We are asking each
municipality benefiting from the effort to share in the cost of the contract by paying the bonus
amount for all reported oil and gas employees residing within the respective municipality over the
average number of employees reported for their municipality for 2009 and 2010. The attached
sheet indicates the average number of reported employees for each municipality and the county for
2009 and 2010. The Board of Weld County Commissioners believes this is the most efficient way to
maximize the number of reported employees and is an equitable way to share the costs for the
bonus reporting.
If your municipality is agreeable to participating in this effort for the year 2011, 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 970-356-4000 Extension 4200.
Very truly yours,
BOARD OF COUNTY COMMISSIONERS
Barbara Kirkmeyer, Chair
Sean P. Conway, Pro-Tem William F. Garcia
David E. Long Douglas Rademacher
cc: Mike Konefal, Administrator
COLORADO EMPLOYEE RESIDENCY REPORT- NUMBER OF EMPLOYEES
MUNCIPALITY
2009 2010 AVERAGE
AULT 10 5 8
DACONO 13 10 12
EATON 34 22 28
ERIE 5 6 6
EVANS 266 174 220
FIRESTONE 15 9 12
FORT LUPTON 158 101 130
FREDERICK 33 11 22
GARDEN CITY 5 2 4
GILCREST 16 16 16
GREELEY 662 435 548
GROVER 0 1 1
HUDSON 22 13 18
JOHNSTOWN 49 31 40
KEENSEBURG 20 15 18
KERSEY 26 15 21
LA SALLE 39 20 30
LOCHBUIE 21 18 20
MEAD 8 5 7
MILLIKEN 40 27 34
NUNN 0 0 0
PIERCE 5 4
PLATTEVILLE 49 33 41
RAYMER 0 0 0
SEVERANCE 7 4 6
WINDSOR 34 24 29
BRIGHTON 2 0 1
NORTHGLEN 0 0 0 -
LONGMONT 0 0 0 .
BERTHOUD 0 0 0
UNINCORPORATED WELD COUNTY 423 3L0 161.
TOTAL 1962 1300 1630
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