RFCA - R-2008-71 REQUEST FOR COUNCIL ACTION

RESOLUTION: 2008-71

SUBJECT: Amendment to an intergovernmental agreement with the Town of Morrison and the Mount Carbon Metropolitan District

RECOMMENDATION: Approval

FUNDING SOURCE: N/A

SUMMARY AND BACKGROUND OF SUBJECT MATTER: In 2003, City Council approved an intergovernmental agreement (IGA) with the Town of Morrison and the Mount Carbon Metropolitan District as a part of resolving the bankruptcy of the District. The IGA bound the District to the provisions of an Amended and Restated Service Plan and allowed the bankruptcy plan to become effective.

At the time of the 2003 agreement it was anticipated that the District would be the long-term provider of water service to the portion of the Rooney Valley within the District's boundaries. The District, Town and City have recently received a preliminary development proposal for most of the property within the District's boundaries. As a part of the development proposal, the District and Town have negotiated an agreement for providing water and sewer service based on current information. The current water and sewer service plan differs from the plan contemplated in 2003 due to the high cost and uncertainty concerning the ability to transport and store the water that is available to the District. This change requires amendment of the 2003 IGA.

The 2003 plan anticipated that the District would provide permanent water service to properties within its boundaries. Under the current proposal, the Town will provide necessary water rights and the District will expand the Town's water and wastewater treatment plants, install water distribution and wastewater collection pipelines and then deed the treatment, distribution and collection facilities to the Town for ownership, operation and maintenance. The current plan results in the Town being the long-term water provider rather than the District. The Town and District have negotiated a separate agreement to effect the utility service change from what was anticipated in 2003. The 2003 IGA must also be amended because it contains provisions inconsistent with the new utility service agreement between the District and the Town.

The proposed IGA amendment predominantly affects land that is not located within Lakewood. In 2003, the District included approximately 899 acres within Lakewood. Since that time, most of those properties have been excluded from the District leaving only approximately 71 acres within Lakewood and the District. Of the 71 acres within Lakewood, approximately 58 acres is owned and currently being mined by the Robinson Brick Company. Mining is expected to continue for many years. It is not currently known whether the remaining 14 acres in Lakewood and the District, which is approximately 2% of the total land area within the District, will be served by Mount Carbon or will be excluded from Mount Carbon at a future date.

RESOLUTION ADOPTION DATE: October 27, 2008

ORIGINATED BY: Department of Public Works

STAFF PERSON RESPONSIBLE: Jay N. Hutchison, Director of Public Works, 303-987-7901

DOCUMENTS ATTACHED: Resolution 2008-71
Proposed 2008 Intergovernmental Agreement Amendment
2003 Intergovernmental Agreement

SUBMITTED BY:
Jay N. Hutchison, Director Department of Public Works

REVIEWED BY:

Joni Inman, Director, Mayor and City Manager's Office
Michael J. Rock, City Manager