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HomeMy WebLinkAbout20163313.tiffRECEIVED OCT 172016 WELD COUNTY COMMISSIONERS BOARD OF COUNTY COMMISSIONERS Pass Around Request BOCC STAFF USE Date Set: Time: RE: BOCC Agenda Item -Approve Road Maintenance Agreement and Accept Payment for 70 Ranch, LLC DEPARTMENT: WELD COUNTY PUBLIC WORKS DATE: October 17, 2016 PERSON REQUESTING: Janet Lundquist Extension: 3726 Brief description of the issue: (please select one) ❑ Informational only X Action needed The Public Works Department and the County Attorney's Office have been working with 70 Ranch on a voluntary Maintenance Agreement. The attached agreement has been approved by all reviewers. The Road Maintenance Agreement is for CR 388, beginning at the northwest corner of Section 19, Township 5N, Range 63W at the junction of CR 61, and heading southeast approximately one mile. In accordance with the Maintenance Agreement the Department of Public Works received the proportional share for year one in the amount of $9,530.55 in the form of a company check (Compass Bank 3323, for the above -mentioned Road Maintenance Agreement. If a Work Session is required, recommended length of time needed for discussion: 15 min If a Work Session is required, In addition to yourself and the board, who should attend? Jay McDonald, Evan Pinkham, Esther Gesick, Tisa Juanicorena & Frank Haug What options exist for the Board? (Include consequences, impacts, costs, etc. of options) Option A: Have this BOCC Hearing item be placed on the next available agenda as part of the Consent Agenda. Option B: Have this BOCC Hearing item be placed on the next available agenda as part of the Regular Agenda. Recommendations: Option A: Have this BOCC Hearing item be placed on the next available agenda as part of the Consent Agenda. Mike Freeman, Chair Sean P. Conway, Pro-Tem Julie Cozad Barbara Kirkmeyer Steve Moreno BOARD CHAIR USE Results/Outcomes: Approve Schedule Other Recommendation Work Session Comments: rnr itot/ 2016-3313 swami 4pnk /G7 -a'I- oZdNo E60a73 70 RANCH, LLC 3323 REFERENCE NO. CHECK DATE DESCRIPTION CR38 8 RdMai n t 9/14/16 CHECK NO. 3323 INVOICE DATE 9/8/16 INVOICE AMOUNT DISCOUNT TAKEN PAYEE 9,530.55 Weld County Public Works DISCOUNTS TAKEN AMOUNT PAID 9,530.55 CHECK AMOUNT $9,530.55 70 RANCH, LLC 8301 E. Prentice Ave. Suite 100 Greenwood Village, CO 80111 Nine Thousand Five Hundred Thirty and 55/100 Dollars CHECK NO. 3323 PAY TO THE ORDER Weld County Public Works OF: 1111 H Street PO Box 758 Greeley, CO 80632-0458 u_.....___..�_ COMPASS BANK 82-531/1070 topy DATE AMOUNT Sep 14, 2016 3323 ********$9,530.55 AUTHORIZED SIGNATURE 7.11 Security features included. Details on back. J fek*v s(EscA cole ROAD MAINTENANCE AGREEMENT THIS ROAD MAINTENANCE AGREEMENT (this "Agreement") is made effective theo2`r"day of f . 2016 ("Effective Date") by and between the COUNTY OF WELD, a political subdivision of the State of Colorado ("County"), and 70 RANCH LLC, a Colorado limited liability corporation ("70 Ranch"). County and 70 Ranch are herein referred to as each a "Party" and collectively the "Parties." RECITALS Whereas the Parties understand that Weld County Road 388, beginning at the northwest corner of Section 19, Township 05 North, Range 63 West, at the junction of County Road 61. and heading southeast approximately one (1) mile as depicted on Exhibit A (the "Subject Roads"). which is incorporated by reference herein, may require maintenance as a result of traffic associated with activities and operations of 70 Ranch and their lease holders, and A. Whereas 70 Ranch has historically engaged in farming and grazing activities. and B. Whereas 70 Ranch is subject to oil and gas leases that were executed by prior owners of the ranch, and C. Whereas, pursuant to these pre-existing leases, 70 Ranch is obligated by law to provide access over the surface of its property to oil and gas lessees and their operators so they can access their oil and gas lease interests, and D. Whereas, these oil and gas lessees and their operators have noticeably increased light and heavy vehicle traffic on the Subject Roads beyond 70 Ranch's historic use as a result of their operations. and E. Whereas, in the spirit of cooperation with Weld County and with the understanding that it is under no legal obligation to do so, 70 Ranch is nevertheless freely willing to voluntarily enter into this Agreement in anticipation of the addition of new parties to this Agreement or the execution of similar Road Maintenance Agreements with the oil and gas lessees and operators on the ranch whose vehicle traffic has burdened the Subject Roads beyond the 70 Ranch's historic background use, and F. Whereas the Parties agree that it is in their mutual interests that periodic maintenance of the Subject Roads be administered and performed by the County, and that 70 Ranch will contribute payment to the County for road maintenance on the Subject Roads in accordance with this Agreement. AGREEMENT For good and valuable consideration, including the mutual promises and covenants set forth herein, the Parties agree as follows: 1. Administration and Performance of Road Maintenance. The Subject Roads are, and will remain, a public road and, therefore, the County shall continue administering and performing road maintenance and repair activities on the Subject Roads, as set forth in more detail in this Agreement on Exhibit B attached hereto (the "Road Maintenance"), which is incorporated by reference 4248413 Pages: 1 of 11 10/26/2016 12:32 PM R Fee:$0.00 Carly Koppes Clerk and Recorder Weld County. CO 1111 1 oz 0 /5 herein. The County will be responsible for administering and performing all of the Road Maintenance required as agreed upon and pursuant to this Agreement. The rights and obligations created by and under this Agreement shall apply only to the Subject Roads and will have no effect on the Parties' use and maintenance on any other public roads. 2. Commencement of Work. After execution of this Agreement by the Parties, the County shall continue and/or commence executing the maintenance plan as set forth in this Agreement and as depicted on Exhibit B. 3. Maintenance and Repair Standards. All road maintenance and repairs will be in accordance with the Weld County Code and the Weld County Engineering and Construction Criteria Guidelines. 4. Costs and Contributions for Road Maintenance. A. Contribution Percentages. The contribution calculations are set forth in more detail in this Agreement on Exhibit C attached hereto (the "Proportional Shares") and incorporated herein by reference. The County will be responsible for administering and performing all of the annual traffic counts and other data for determining the calculations required as agreed upon and pursuant to this Agreement. B. Contribution Billing. The County has identified the baseline of traffic and the proportional shares included in Exhibit C. The 70 Ranch proportional share represents traffic impact on the Subject Roads related to oil and gas lessees and operators above the 70 Ranch's historic baseline traffic levels. The proportional shares are subject to adjustment as either this Agreement is amended to incorporate new parties, or similar Road Maintenance Agreements for the Subject Roads are executed with oil and gas lessees and operators on the Ranch. All Parties' contributions are due in full to the county annually on or before March 31St of each year. All Party's contributions are due in full to the county annually in March. The County will update the maintenance schedule which the County feels necessary for the upkeep of the subject roads on a yearly basis along with the costs included within Exhibit B and proportional shares within Exhibit C by January 31St annually. If there are funds remaining from the previous year's contribution, these funds shall be applied to the following year's costs." Or "If there are remaining funds at the end of the term, those funds shall be returned to 70 Ranch. If the cost of repair exceeds the contributions of the applicable term, the costs may be increased to a not to exceed amount of 20% of initial costs. The County will provide a quarterly status of the monies expended (as a quarterly true -up bill) to all Parties of this agreement. An annual audit of expended funds for Subject Roads will be made available by the County upon request from the other Parties. C. County Contributions. County shall contribute 73% of the cost for Road Maintenance of the Subject Roads, being an approximate annual amount of $28,344.55 as determined by the estimated total cost of the annual Road Maintenance. The County shall supply all permits authorizations and easements ("Approvals"), personnel. materials, and equipment as necessary to perform County Activities as set forth in more detail in this Agreement on Exhibit B attached hereto. The percentage of contribution will be reviewed annually based on the previous year's usage rates. 4248413 Pages: 2 of 11 10/26/2016 12:32 PM R Fee:$0.00 Carly Koppes. Clerk and Recorder Weld County, CO 1111 ���.r�'I �i� ��i�E� �'�h'�reII)1IP, Ivo. lily), 11 111 D. 70 Ranch Contributions. 70 Ranch shall contribute 27% of the cost to the County for Road Maintenance of the Subject Roads, being an approximate annual amount of $9,530.55 as determined by the estimated total cost of the annual Road Maintenance for the term. 70 Ranch will be responsible for an amount not to exceed $10,483.60 annually as determined by the estimated total cost of Road Maintenance for the Term of this Agreement and summarized on Exhibit B. In -kind contributions of goods or services by 70 Ranch in support of maintenance of the Subject Roads may upon mutual agreement of the Parties be credited toward 70 Ranch's annual contribution. The percentage of contribution will be reviewed annually based on the previous year's usage rates. 5. Provision of Maintenance. The Parties agree that, subject to adjustment as provided in paragraph 4(b), all Road Maintenance for the Subject Roads will be mutually agreed upon by 70 Ranch (27%), and County (73%) and that all contributions made for Road Maintenance, as described in Section 4. correlate with the respective level of the Parties' use of the Subject Roads. The percentage of contribution will be reviewed annually based on the previous year's usage rates. If the Parties cannot agree on any aspect of the Road Maintenance required for the Subject Roads. then the Parties will resolve the disagreement in accordance with Section 6. A. Consultation. On or before the anniversary of the Effective Date, 70 Ranch and County will engage in a follow-up onsite inspection to collectively inspect the Subject Roads to determine the extent and type of repairs, if any, which will be necessary to maintain the road for the following year. After the consultation. if all Parties agree in accordance with Section 7, the Parties may review this Agreement on a year to year basis and establish an annual cost estimate based on the contribution percentages dictated by traffic volumes. At the end of the three year period. the Parties may renew this Agreement on a year to year basis and establish an annual cost estimate based on the consultation for the renewal period. If the Parties agree to renew the Agreement, they shall continue to comply with the consultation requirement in this Section 5 (A) for each renewal period. 7. Term of Agreement, New Parties and Termination. This Agreement shall remain in effect for a period of three (3) years from the Effective Date ("Term"), and may be renewed thereafter on a year to year basis by mutual written consent of all Parties. The County agrees to require the execution of a Road Maintenance Agreement as a condition precedent for the approval of any discretional Weld County permit or application within the boundaries of the 70 Ranch by an oil and gas lessee or other operator using the Subject Roads ("New Party"). A New Party can execute either a separate Road Maintenance Agreement with the County for the Subject Roads under the same criteria as those contained in this Agreement to determine its proportional share, or be made a Party to this Agreement by mutual consent of all of the existing Parties. In either event, (a) Exhibit C of this Agreement would be revised to reflect or include the New Party's proportional share, (b) the new Party will pay a pro rata share of its proportional share for the initial contract year and its full proportional share for each year thereafter, (c) 70 Ranch's proportional share identified in this Agreement will be reduced by the new Party's proportional share, and (d) the pro rata amount paid by the new Party for the initial contract will be credited against the proportional share paid by 70 Ranch for that year. . Any Party may terminate their involvement in this or a separate Agreement related to the Subject Roads by giving ninety days advance written notice of such termination to the Parties of this Agreement. A termination shall become effective on the following anniversary date of this Agreement. The proportional shares of the remaining Parties shall thereafter be adjusted to reflect the termination of the Party based upon 4248413 Pages: 3 of 11 10/26/2016 12:32 PM R Fee:$0 00 Carly Koppes Clerk and Recorder Weld County, CO III 3 traffic counts or other mutually -acceptable criteria. regardless of the status of the other Parties. Prior to termination, the terminating Party shall be required to satisfy all of its obligations under this Agreement accrued to the end of the current term. 8. General Provisions. A. Binding Effect. All of the covenants, conditions and terms of this Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors. B. Notices. Unless otherwise provided in this Agreement, any notice or other correspondence required or permitted by this Agreement shall be deemed to have been properly given and delivered when made in writing and hand delivered to the Party to whom directed, or when sent by certified mail with all necessary postage or charges fully prepaid, or when sent by electronic facsimile transmission, with written confirmation of delivery of transmission, and addressed or delivered to: County of Weld Attn: Janet Lundquist. Support Services Manager 1111 H Street Greeley. Colorado 80632 Phone: 970-304-6496 70 Ranch. LLC. Attn: Ron VonLembke 8301 E. Prentice Ave.. Suite 120 Greenwood Village. CO 80111 Phone: 303-659-5000 Any Party may change its address for the purpose of notices or communication by furnishing notice thereof to the other Party in the manner provided in this Section. C. Entire Agreement. This Agreement, along with Exhibit A, Exhibit B. and Exhibit C attached hereto and made a part hereof. contains the entire Agreement between the Parties, and it shall supersede all prior discussions or negotiations between them. This Agreement may be modified only in writing signed by the Parties. D. Governing Law. This Agreement shall be governed by and interpreted in accordance with the laws of the State of Colorado. Jurisdiction and venue shall be in the Denver District Court. County of Denver, in and for the State of Colorado. E. Extension or Modification. Any amendments or modifications to this agreement shall be in writing signed by both parties. Independent Contractor. Parties agree that they are independent contractors and that parties' officers, agents or employees will not become employees of the other. Each party shall be solely responsible for its acts and those of its agents and employees for all acts performed pursuant to this Agreement. 4248413 Pages: 4 of 11 10/26/2016 12:32 PM R Fee:$0.00 Ca-ly K000es Clerk and Recorder, Weld County CO Ilk 11111 G. Interruptions. No party to this Agreement shall be liable to the other for delays in delivery or failure to deliver or otherwise to perform any obligation under this Agreement. where such failure is due to any cause beyond its reasonable control, including but not limited to Acts of God, fires, strikes. war, flood, earthquakes or Governmental actions. H. Severability. If any term or condition of this Agreement shall be held to be invalid, illegal. or unenforceable by a court of competent jurisdiction, this Agreement shall be construed and enforced without such provision, to the extent that this Agreement is then capable of execution within the original intent of the parties. Governmental Immunity. 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. J. Fund Availability. Financial obligations of the County payable after the current fiscal year are contingent upon funds for that purpose being appropriated, budgeted and otherwise made available. Execution of this Agreement by County does not create an obligation on the part of County to expend funds not otherwise appropriated in each succeeding year. K. Acknowledgment. Parties acknowledge that each has read this Agreement, understands it and agrees to be bound by its terms. All parties further agree that this Agreement, with the attached Exhibits [*] and [*]. is the complete and exclusive statement of agreement between the parties and supersedes all proposals or prior agreements, oral or written. and any other communications between the parties relating to the subject matter of this Agreement. [Remainder of Blank Intentionally Left Blank] 4248413 Pages: 5 of 11 10/26/2016 12:32 PM R Fee:$0.00 Carly IKoppel. Clerk and Recorder, ``��11``Weld County LL■ 1111 rail" � ti Y���r����iy� N This i �ilco l' IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the Effective Date. COUNTY OF WELD By: Jay 70 RANCH, LLC. By: Direct • of Public Robert A. Lembke, Manager Attest: By: - Ron vonLembke, Chief of Staff 4248413 Pages: 6 of 11 10/26/2016 12:32 PM R Fee:$0.00 Carly Koppes, Clerk and Recorder, Weld County, CO lrratil iti 1IF+ 1.1iirMk i WY 11111 6 Chairman, Board of County Commissioners TT EST: WELD BY: N2201,�o ;� �4 moo/ e- 33 /3 Exhibit A: Subject Roads Attached to and by reference made a part of that certain Road Maintenance Agreement dated . 2016, by and between the COUNTY OF WELD, a political subdivision of the State of Colorado ("County") and 70 RANCH, LLC. a Colorado limited liability corporation ("70 Ranch") covering the following: Weld County Road 388, beginning at the Northwest corner of Section 19. Township 05 North. Range 63 West. at the junction of County Road 61, and heading southeast approximately one (1) mile, before terminating at the western section line of Section 19 -5N -63W. 20 21 22 1 23 74 21 22 :' ' 24 1 6 W 06N63W 30 '":, :'. ' rJ ' 1.47.I.111.1. =� . l; t 25 29 27 .1-26---- 31 32 16 M t. w ;_ s 32 33 h 34 35 36 2 1 6 5 4 '' 1 r' -5 4 7 8 9 10 'i 12 7 12 8 18 17 1 't 14 13 18 4 17 16 15 33 cRa� c 24 19 64W �J �i�am ", an . ...... tialt.,..,,,, 19 20 21 I 22 23 - 23 24 0,3 2 � - - -, _ ec 30 28 26 25 30 "Th ••_ 29 28 27 26 25 3 1 -j3-1\ 35 36 31 32 33 34 I 35 r":t '2 R, ti l 'r- I 5 I 4 3 2 1 6 4 1 N. , 3 I 2 t 1H 6 04 7 8 9 10%\..- 11 12 7 8 04N 9 I 64W 10 11 1 12 4248413 Pages: 7 of 11 10/26/2016 12:32 PM R Fee:$0.00 Carly Koppes, Clerk and Recorder, Weld County CO Ill Piir :11Triti I$'I l xvi Iith F +i'Ih 1I II 1 Exhibit B: Maintenance Plan 1. Road Conditions. The County has conducted an onsite inspection to determine the current condition of the Subject Roads. At the conclusion of this inspection, all Parties mutually agreed to a summary of the overall condition of the Subject Roads and the Parties have used the summary as a baseline to determine the repair and maintenance costs for the Term of this Agreement detailed herein (the "Maintenance Plan"). Weld County Cost Estimate for CR 388 Mag Chloride / Road With Gravel Improvements Estimated 1st year cost for 1 mile of full depth with Gravel Improvements One Full Depth Application: Estimated 2" need to add equals to1000 tons/mile, This includes: Gravel, Loading and Hauling Water/Chemicals, This includes: Water, Chemical and Hauling Road Prep/Work, This includes: Reclaiming, Grading, Compacting, Mobilization and Flagging Total Full Depth Application w/ Gravel Improvements Topical Application on Full Depth Water/Chemicals, This includes: Water, Chemical and Hauling Road Prep/Work, This includes: Reclaiming, Grading, Compacting, Mobilization Topical Application TOTAL FULL DEPTH + GRAVEL IMPROVEMENTS + TOPICAL, 1st Application Estimated 1st year cost for 1 mile of Topical Treatment X 2 Applications. Water/Chemicals, This includes Water, Chemical and Hauling Road Prep/Work, this includes: Grading, Compacting and Mobilization TOTAL Estimated 1st year cost for 1 mile of Maintenance X 6 Water and Water Hauling Road Prep/Work TOTAL TOTAL FOR 1ST YEAR MAINTENANCE PER MILE $14,776.20 $5,348.04 $2,919.28 $27,585.74 $3,204.56 $1,337.66 $4,542.22 $32,127.96 $6,409.12 $2,693.32 $9,102.44 $4,278.24 $3,188.64 $7,466.88 $48,697.28 4248413 Pages: 8 of 11 10/26/2016 12:32 PM R Fee:$0.00 Carly Koppes. Clerk and Recorder; Weld County, CO VIII Kira R ifif iN:Ili 'ill It' W1it;«CM1�� �i������ III 1 Estimated 2nd year cost for 1 mile of full depth One Full Depth Application: Water/Chemicals, This includes: Water, Chemical and Hauling Road Prep/Work, This includes: Reclaiming, Grading, Compacting, Mobilization and Flagging Total Full Depth Application Topical Application on Full Depth Water/Chemicals, This includes: Water, Chemical and Hauling Road Prep/Work, This includes: Reclaiming, Grading, Compacting, Mobilization Topical Application TOTAL FULL DEPTH + TOPICAL, 1st Application Estimated 2nd year cost for 1 mile of Topical Treatment X 2 Applications. Water/Chemicals, This includes Water, Chemical and Hauling Road Prep/Work, this includes: Grading, Compacting and Mobilization TOTAL Estimated 2nd year cost for 1 mile of Maintenance X 6 Water and Water Hauling Road Prep/Work TOTAL TOTAL FOR 2nd YEAR MAINTENANCE PER MILE $5,348.04 $2,586.64 $7,934.68 $3,131.00 $137.66 $3,268.66 $11,203.34 $5,189.12 $2,693.32 $7,882.44 $4,278.24 $3,188.64 $7,466.88 $26,552.66 Estimated 3rd year cost for 1 mile of full depth w/ NO Gravel Improvements One Full Depth Application: Water/Chemicals, This includes: Water, Chemical and Hauling Road Prep/Work, This includes: Reclaiming, Grading, Compacting, Mobilization and Flagging Total Full Depth Application 4248413 Pages: 9 of 11 10/26/2016 12:32 PM R Fee:$0.00 Carly Koppes. Clerk and Recorder, Weld County, CO VIIIrjtitiVT TNiii WIT OgilhAVill Il i II III $5,644.56 $5,697.32 $11,341.88 Topical Application on Full Depth Water/Chemicals, This includes: Water, Chemical and Hauling Road Prep/Work, This includes: Reclaiming, Grading, Compacting, Mobilization Topical Application TOTAL FULL DEPTH + TOPICAL, 1st Application Estimated 3rd year cost for 1 mile of Topical Treatment X 2 Applications. Water/Chemicals, This includes Water, Chemical and Hauling Road Prep/Work, this includes: Grading, Compacting and Mobilization TOTAL Estimated 3rd year cost for 1 mile of Maintenance X 6 Water and Water Hauling Road Prep/Work TOTAL TOTAL FOR 3rd YEAR MAINTENANCE PER MILE 4248413 Pages: 10 of 11 10/26/2016 12:32 PM R Fee:$0.00 Carly Koppes. Clerk and Recorder, Weld County, CO ���� l ��1►��1��'I tkb � S«Cf� hJ� ;'�� w M 14 11111 $3,204.56 $1,346.66 $4,551.22 $15,893.31 $5,189.12 $2,095.72 $7,284.84 $4,278.24 $3,188.64 $7,466.88 $30,645.03 Exhibit C: Proportional Shares The County has conducted traffic counts on the Subject Roads to develop baseline traffic historically and currently. Annually, the county will complete additional traffic counts to determine each of the Parties proportional shares of generated traffic. The following summary establishes the baseline traffic from 2011 and the current proportional share based upon a traffic count taken in 2014. All Parties mutually agreed to a summary as a baseline to determine the repair and maintenance costs for the Term of this Agreement detailed herein (the "Proportional Shares"). Cost Sharing: AADT to ESAL Date: 3/17/2016 Project: 70 Ranch CR 388 Designed by: Janet Lundquist Vehicle Classification Background Existing Vehicle Existing Proposed Vehicle Total Trips/Day % Trips/Day % Trips/Day Passenger Vehicles (Class 1-3) 104 81% 188 29% 293 Single Units (Class 4-7) 18 14% 194 30% 212 Combo Units (Class 8-13) 7 5% 266 41% 273 Totals 129 100% 648 100% 778 Vehicle Classification Total Vehicle ESAL ESAL ESAL ESAL yo Factor Existing Proposed Total Passenger Vehicles (Class 1-3) 38% 0.003 0.31 0.56 0.88 Single Units (Class 4-7) 27% 0.249 4.48 48.31 52.82 Combo Units (Class 8-13) 35% 1.087 7.61 289.14 296.81 Totals 100% - 12.40 338.01 350.51 5/7/2008 Annual 2% Background 10/1/2015 Passenger Vehicles (Class 1-3) 91 13 104 188 Single Units (Class 4-7; 16 2 18 194 Combo Units (Class 8-13) 6 1 7 266 Overall Proportional Share 96% Background Share 4% Total _ 100% Final Contributions 70 Ranch Proportional Share 27% County's Proportional Share 73% Total 100% 4248413 Pages: 11 of 11 10/26/2016 12:32 PM R Fee:$0.00 $O.O a County, CO Carly Koppes, Clerk and Reoorder, I11 W itr11 Wu 3t J niiI1 'NNAIIis t 11111 Hello