HomeMy WebLinkAbout20142107.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 date set forth below, between the COUNTY OF WELD, a political subdivision of the State
of Colorado, whose address is P. O. Box 758, 1150 O Street, Greeley, CO 80632, hereinafter
referred to as "Weld County," and the TOWN OF GILCREST, a municipal corporation of the
State of Colorado, with address of 304 8th Street, P.O. Box 128, Gilcrest, CO 80623, 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 18, 2013, 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 4,353 (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 prorate 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 4,353
employees counted in 2013 (as shown on the attached Exhibit "A"), plus the bonus amount for
all reported oil and gas employees residing within their municipality in 2014 over the number of
employees reported for their municipality for 2013 , 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 a
prorate 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 4,353
employees counted in 2013 (as shown on the attached Exhibit "A"), plus the
bonus amount for all reported oil and gas employees residing within their
municipality in 2014 over the number of employees reported for their
municipality for 2013. 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, 2014, to and until
December 31, 2014.
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.
Signed by the parties this/ I3ay of 0'a/it , 2014.
ATTEST:dith4) ad.o% COUNTY OF WELD, a political
Weld County Clerk to the Bo A s 11a ��nLdivision of the
, 422S of Colorado
By: lib ' 3
De uty Clerk to the Board n ,r ���� ouglas R: u emac er, Chairman
5 Board of County Commissioners of the
OF.OIt .., County of Weld
JUL 1 42014
O
ATTEST: SEAL i TOWN OF GILCREST, a municipal
' • , • corporation of the State of Colorado
COLOR.: I )111
By: ��� / � G'�ls� Tr:
ReL.,rt A.alk-io ,n, Town Cle ` effNelson, M yor
Lail Gderthai. ,
2C/* a io7
•
EXHIBIT"A"
JERKE 2014 CONTRACT BASE ALLOCATION TO MUNICIPALITIES
COLORADO EMPLOYEE RESIDENCY REPORT- NUMBER OF EMPLOYEES
MUNCIPALITY Base Prorata Share of Total Share of
2013 Percent 10,000 110000 520,000 Base
AULT 26 0.005973 $ - $ 59.73 $ 59.73
DACONO 42 0.009649 $ - $ 96.49 $ 96.49
EATON 87 0.019986 $ - $ 199.86 $ 199.86
ERIE 17 0.003905 $ - $ 39.05 $ 39.05
EVANS 577 0.132552 $ - $ 1,325.52 $ 1,325.52
FIRESTONE 57 0.013094 $ - $ 130.94 $ 130.94
FORT LUPTON 261 0.059959 $ - $ 599.59 $ 599.59
FREDERICK 63 0.014473 $ - $ 144.73 $ 144.73
GARDEN CITY 4 0.000919 $ - $ 9.19 $ 9.19
GILCREST 46 0.010567 $ - $ 105.67 $ 105.67
GREELEY 1569 0.360441 $ - $ 3,604.41 $ 3,604.41
GROVER 13 0.002986 $ - $ 29.86 $ 29.86
HUDSON 29 0.006662 $ - $ 66.62 $ 66.62
JOHNSTOWN 159 0.036527 $ - $ 365.27 $ 365.27
KEENSEBURG 23 0.005284 $ - $ 52.84 $ 52.84
KERSEY 65 0.014932 $ - $ 149.32 $ 149.32
LA SALLE 92 0.021135 $ - $ 211.35 $ 211.35
LOCHBUIE 75 0.017229 $ - $ 172.29 $ 172.29
MEAD 27 0.006203 $ - $ 62.03 $ 62.03
MILLIKEN 101 0.023202 $ - $ 232.02 $ 232.02
NUNN 6 0.001378 $ - $ 13.78 $ 13.78
PIERCE 17 0.003905 $ - S 39.05 $ 39.05
PLATTEVILLE 89 0.020446 $ - $ 204.46 $ 204.46
RAYMER 0 0 $ - $ - $ -
SEVERANCE 36 0.00827 $ - $ 82.70 $ 82.70
WINDSOR 131 0.030094 $ - $ 300.94 $ 300.94
BRIGHTON 0 0 $ - $ - $ -
NORTHGLEN 0 0 $ - $ - $ -
LONGMONT 0 0 $ - $ - $ -
BERTHOUD 0 0 $ - $ - $ -
UNINCORPORATED WELD COUNTY 741 0.170227 $ 10,000.00 $ 1,702.27 $ 11,702.27
TOTAL 4353 1 $ 10,000.00 $ 10,000.00 $ 20,000.00
AGREEMENT FOR PROFESSIONAL SERVICES
THIS AGREEMENT is made by and between the County of Weld, State of Colorado,
whose address is 915 10th Street, Greeley, Colorado, 80631 ("County"),and William H.Jerke,
whose address is 22911 WCR 39, LaSalle, Colorado 80645, ("Contractor").
'WHEREAS, County desires to retain Contractor as an independent contractor to perform
services as more particularly set forth below; and
WHEREAS, Contractor has the time available to timely perform the services, and is
willing to perform the services according to the terms of this Agreement.
NOW THEREFORE,in consideration of the mutual promises and covenants contained
herein, the parties hereto agree as follows:
1. Engagement of Contractor. County hereby retains Contractor, and Contractor
hereby accepts engagement by County upon the terms and conditions set forth in this
Agreement.
2. Term. The term of this Agreement shall be from January 1, 2014,through and until
11 September 1, 2014.
3. Services to be Performed. Contractor agrees to perform the following Services:
a. Contractor shall solicit and encourage oil and gas service companies
performing services for oil and gas operators working within Weld County
during 2013 to report their employees' home addresses to those operators.
The operators will then be encouraged by the Contractor to report such
information, along with information regarding their own employees' home
addresses, to the Colorado Department of Revenue,for 2014 reporting
purposes. The number reported for 2013 was 4,353. Contractor shall have
access to Weld County GIS and the Weld County Clerk to the Board records
to accomplish his work in providing the Services contemplated herein.
4. Compensation.
a Contractor shall be paid the sum of$20,000 for the base number of 4,353 oil
and gas employees residing within Weld County,paid monthly on the 15th day
of the month, for five months($4,000/month), starting in January, 2014.
b. For all reported oil and gas employees' home addresses located within Weld
County as recognized by the Colorado Department of Local Affairs over
4,353,a bonus amount of 5% of the State of Colorado Severance Tax Direct
Distribution payment per employee(maximum$50), and 5%of the Federal
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2013-3485
Mineral Lease Distribution per employee (maximum$50), paid to Contractor
upon the receipt of said State and Federal sums by County. If,for any reason,
the State does not pay the anticipated Severance Tax Direct Distribution,
County will not be obligated to pay the State bonus to Contractor.
c. County anticipates entering into intergovernmental agreements with
municipalities located within Weld County to then receive a portion of the
State and Federal distributions referred to in subsection b.,above. My
amounts so received by County shall be retained by County and no amount
from the receipt of such distributions shall be due and owing to Contractor.
d, Contractor shall receive no compensation from County other than what is
stated herein.
5. Additional Work. In the event the County shall require changes in the scope,
character, or complexity of the work to be performed, and said changes cause an
increase or decrease in the time required or the costs to the Contractor for
performance, an equitable adjustment in fees and completion time shall be negotiated
between the parties and this Agreement shall be modified accordingly by a
supplemental Agreement. Any claims by the Contractor for adjustment hereunder
must be made in writing prior to performance of any work covered in the anticipated
supplemental Agreement. My change in work made without such prior supplemental
Agreement shall be deemed covered in the compensation and time provisions of this
Agreement
6. Independent Contractor. Contractor agrees that Contractor is an independent
contractor and that neither Contractor nor Contractor's agents or employees are, or
shall be deemed to be,agents or employees of the County for any purpose.
Contractor shall have no authorization,express or implied, to bind the County to any
agreement, liability, or understanding. The parties agree that Contractor will not
become an employee of County, nor is Contractor entitled to any employee benefits
from County as a result of the execution of this Agreement.
7. Warranty. Contractor warrants that the Services performed under this Agreement
will be performed in a manner consistent with the professional standards governing
such Services and the provisions of this Agreement.
8. Reports County Property. All reports and other tangible materials produced in
connection with the performance of this Agreement, whether or not such materials are
in completed form, shall at all times be considered the property of the County.
Contractor shall not make use of such material for purposes other than in connection
with this Agreement without prior written approval of County.
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9, Insurance and Indemnification. Contractor shall defend and indemnify County, its
officers and agents,from and against loss or liability arising from Contractor's acts,
errors or omissions in seeking to perform its obligations under this Agreement.
Contractor shall provide necessary workers' compensation insurance at Contractor's
own cost and expense.
10. Termination. Either party may terminate this Agreement at any time without notice
upon a material breach of the terms of this Agreement; however, in the event of early
termination, Contractor shall be paid any amounts then due and owing as identified in
Paragraph 4, above.
11. Non-Assignment. Contractor may not assign or transfer this Agreement, any interest
therein or claim thereunder, without the prior written approval of County.
12. Time of Essence. Time is of the essence in each and all of the provisions of this
Agreement.
13. Interruptions.Neither 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.
14. Notices. Any notice required to be given under this Agreement shall be in writing
and shall be mailed or delivered to the other party at that party's address as stated
above.
15. Compliance. This Agreement and the provision of services hereunder shall be
subject to the laws of Colorado and be in accordance with the policies,procedures,
and practices of County.
16. Non-Exclusive Agreement. This Agreement is nonexclusive and County may
engage or use other contractors or persons to perform services of the same or similar
nature.
17. Certification. Contractor certifies that Contractor is not an illegal immigrant,and
further, Contractor represents, warrants, and agrees that it has verified that Contractor
does not employ any illegal aliens. If it is discovered that Contractor is an illegal
immigrant, employs illegal aliens or subcontracts with illegal aliens, County can
terminate this Agreement and Contractor may be held liable for damages.
18. Entire Agreement/Modifications. This Agreement contains the entire agreement
between the parties with respect to the subject matter contained in this Agreement.
This instrument supersedes all prior negotiation,representation,and understanding or
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agreements with respect to the subject matter contained in this Agreement. This
Agreement may be changed or supplemented only by a written instrument signed by
both parties.
19. Funding Contingency. No portion of this Agreement shall be deemed to create an
obligation on the part of County to expend funds not otherwise appropriated or
budgeted for,
20. No Conflict. No employee of Contractor nor any member of Contractor's family
shall serve on a County Board, committee or hold any such position which either by
rule, practice or action nominates,recommends, supervises Contractor's operations,
or authorizes funding to Contractor.
21. Severability. If any term or condition of this Agreement shall be held to be invalid,
illegal, or unenforceable, 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.
22. Governmental Immunity. No portion of this Agreement shall be deemed to
constitute a waiver of any immunities the parties or their officers or employees may
possess.
23. No Third Party Beneficiary. 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.
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IN WITNESS WHEREOF,the parties have executed this Agreement as of the date and
year written below.
CON IRACTOR:
William II. 7erke
ATTEST: ~ a'^'-1-° ° `g' BOARD OF COUNTY
CLERIC TO THE BOARD COMMISSIONERSOF WELD COUNTY
By:
fl&cia,C
`' I /ij•� DEC 18 2013
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TDIf'A' OF
Gil crest////
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COLORADO
Leaning Toward the Future
304 8th Street •PO Box 128 •Gilerest, Colorado 80623 •(970) 737-2426 •(970) 737-2427—FAX
July 2, 2014
ecell
Weld County Attorney's Office
Attn: Bob Choate ,U„
- 2074 g
1150 O Street
Greeley, CO 80632
Bob,
Please find enclosed two copies of the signed 2014 IGA for Payment of Bonus Amounts for Certain
Reported Oil and Gas Employees Residing within Municipal Boundaries that was approved on January 13,
2014.
Thank you for your help.
Respectfully Submitted,
GitS111Lt {jQ�s
Gail Odenbaugh
Town Clerk/Treasurer
Enclosure
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