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14-96C0ORDINANCENO.14-96ANORDINANCEADOPTINGANDAUTHORIZINGEXECUTIONOFANAGREEMENTFORTHESUPPLYOFWATERTOTHEHONDIUSWATERUSERSASSOCIATION.INC.WHEREAS,theTownofEstesParkhasreceivedarequestfromRondiusWaterUsersAssociation,Inc.(“Hondius”)tosupplywatertoHondiusasabulkwateruser;andWHEREAS,theTownhasthecapacitytoprovidesuchserviceanditisintheTown’sinteresttodosoundercertaintermsandconditions;andWHEREAS,theTownisauthorizedbyitsordinancesandapplicablelawtoprovidesuchwaterserviceandenterintoanagreementwithHondiusregardingsuchservices.NOW,THEREFOREBEITORDAINEDBYTHEBOARDOFTRUSTEESOFTHETOWNOFESTESPARK,COLORADO:Section1.TheappropriateofficialsoftheTownofEstesParkareherebyauthorizedanddirectedtoexecuteanagreementbetweentheTownofEstesParkandHondiusWaterUsersAssociation,Inc.intheformattachedheretoasExhibit“A”andincorporatedhereinbythisreference,andthetermsthereofareherebyadoptedbyenactmentofthisOrdinance.Section2.TheappropriateofficialsandpersonneloftheTownofEstesParkareherebyauthorizedtoundertakesuchactionsastheydeemnecessaryandappropriatetocarryoutthetermsofthesaidAgreement.Section3.TheadoptionofthisOrdinanceshalltakeeffectandbeinforcethirty(30)daysafteritsadoptionandpublication.PASSEDANDADOPTEDBYTHEBO4RDOFTRUSTEESOFTHETOWNOFESTESPARK,COLORADOTHISDAYOF____________________,1996.TOWNftSTESARKBY:£L//%MayorATTEST:TownClerkIherebycertifythattheaboveOrdinanpçwasintroducedandreadatameetingoftheBoardofTrusteesonthedayof,kttc_,1996,andpublishedinaniqispaperofgeneralcirculationintheTown6fEsVesPark,Coloradoonthe,2’dayof______________1996.6’‘_____________9twnClerk 00 00AGREEMENTCO\PTHISAGREEMENT(“Agreement”)isenteredintothisQ...—dayof___________________•1996(the“EffectiveDate”),byandbetweentheTOWNOFESTESPARS,aUMunicipalCorporation(the“Town”),andtheHONDIUSWATERUSERSASSOCIATION,INC.(“Hondius”).WITNESSETH:WHEREAS,HondiushasrequestedwaterservicefromtheTown;andWHEREAS,theTownhasagreedtoprovidewaterservicetoHondiusunderthefollowingconditions:NOW,THEREFORE,thepartiesherebyagreeasfollows:1.HondiusanticipatesthatitwillinthenearfutureownaprivatewatersystemwhichiscurrentlyservinghousingandtouristfacilitieswithintheHighDrivearea,LarimerCounty,Colorado.Also,Hondiusmayserveadditionalunitsinthefuture.TheobligationoftheTowntoprovidedeliveryofwatertoHondiusforservicetosuchadditionalunitsisdependentupontheabilityoftheTowntodosogivenitsthenexistingdeliverycapacity.TheTownagreestoprovideHondiuswithwaterasabulkwateruserunderthetermsofthisAgreementtoservepropertiesthatareincludedwithintheMunicipalSubdistrictNorthernColoradoWaterConservancyDistrict,andtheNorthernColoradoWaterConservancyDistrict.2.HondiusshallinstallaservicelineandmastermetervaultconnectingtheHondius’distributionsystemtotheTown’ssystem.Themastermeter,includinglaborcostsoftheTown,shallbeprovidedbytheTownbutpaidforandinstalledbyHondius.TheconnectionofHondius’distributionsystemtotheTown’smaininitiallyshallbethrougha2inchtap.3.TheownersofthepropertytobeinitiallyservedbyHondiuswithwaterunderthetermsandconditionsofthisAgreementhavefiledforinclusionofthepropertywithintheMunicipalSubdistrictNorthernColoradoWaterConservancyDistrictandtheNorthernColoradoWaterConservancyDistrictand,intheeventHondiussubsequentlyaddsunitsforservice,HondiusshallrequiretheownersofsuchadditionalpropertytopromptlyfileanddiligentlypursuetheinclusionofsuchpropertywithintheMunicipalSubdistrict.NorthernColoradoWaterConservancyDistrict.ThepaymentofexpensesofsuchinclusionshallbewithoutcosttoorcontributionfromtheTown.TheinceptionoftheTownwaterserviceisconditioneduponinclusionintheconservancydistricts.4.AtthetimeofconnectionofHondius’distributionsystemtotheTown,thesystemcurrentlyprovidingwatershallbedisconnectedsoastopreventanycross-connectionofbothsystems.5.TheTownshallcharge,andHondiusshallpay,the“bulkwaterrate”forallTownwaterusedbyHondius.Said“bulkwaterrate”shallincludeanyfurtheramendment1EXHIBIT“A”TOORDINANCENO.14—96CONCERNINGAGREEMENTWITHHONDIUSWATERUSERSASSOCIATION,INC. 00•-•;)F’I’ti-s 00AgreementBetweenTownofEstesParkandHondiusWaterUsersAssociation,Inc.orchangeinthe“bulkwaterrate”bytheTown.ThebulkwaterratechargedtoRondiusbytheTownwillbethesameastheratechargedotherbulkwaterusersinthe“BulkWater(A)”ruralcategoryofthe“TownofEstesParkWaterRates1995Through1996”publishedbytheTown,assuchratesinsuchcategorymayhereafterbemodified.TheTownshalluseitsbestgoadfaitheffortstocausethebulkratechargedbytheTowntoHondiustocontinuetobereasonableincomparisontotherateschargedtootherusersofTownwater.6.HondiusandtheTownagreethatHondius’watersystem,incLudingservicelineandmetervault,shallnotbecomeorbemadepartoftheTown’swatersystem.Hondiusshallberesponsibleforallrepairsto,enlargements,andmaintenanceof,itswatersystem.7.ThesupplyingofwatertoHondius’systembytheTownshallbesubjecttoallrules,regulationsandordinancesoftheTownofEstesParkandanyamendmentsthereto,exceptwhereanysuchprovisions,asamended,conflictwiththisAgreement,inwhicheventthisAgreementshallcontrol.TheTownmaysuspendthesupplyofwatertoHondiusonlyundereitherofthefollowingconditions:a.HondiusisindefaultandhasnotcuredsaiddefaultasspecifiedinthisAgreement.b.ByreasonofscarcityintheTown’srawwatersupplyand/orfailureoftheTown’streatmentortransmissionfacilities,theTownhassuspendedthesupplyofwatertootherwaterconsumersoutsideoftheTown’slimits.8.TheconnectionofHondius’waterdistributionsystemtotheTown’ssystemshallbemadeassoonaspracticablefollowingHondius’acquisitionoftheprivatewatersystem.HondiusalsoagreestopayalloftheTown’slegalexpensesinthepreparationandexecutionofthisAgreement.9.IntheeventHondiusdesirestotransferwaterrightstotheTowninlieuofaportionofthewaterrightsurchargewhichisapartofthe“bulkwaterrate”,HondiusshallbeentitledtoapplytotheTown,pursuanttotheprovisionsofSection13.38.050oftheMunicipalCode.Hondiusshall,ifitsoelects,applyforthetransferofitswaterrightswithinfive(5)yearsfromtheEffectiveDate.10.HondiusandtheTowneachagreetoindemnify,holdharmlessanddefendtheotheranditsofficers,agentsandemployeesfromandagainstallactionsfordamages,injuriestopersons,includingdeath,propertydamage,includinglossofuse,andexpenses,includingcourtcostsandreasonableattorney’sfeesarisingoutoforresultingfromtheindemnifyingparty’sactionsand/oromissionsintheperformanceoftheirrespectivedutiesunderthisAgreement2 00 CC>AgreementBetweenTownofEstesParkandHondiusWaterUsersAssociation,Inc.11.TimeisoftheessenceofthisAgreement,andintheeventofanydefaultbyeitherpartyinthetermsandconditionshereof,thenon-defaultingpartyshallgivethedefaultingpartyten(10)daysnoticeinwritingofsaiddefault.Solongasthepartyindefaultpromptlycommencescurativeeffortsanddiligently.pursuessuchcurativeefforts,thepartygivennoticeshallbedeemedtohavecuredsuchdefault.Ifsaiddefaultisnotcuredwithinsaidten(10)dayperiod,oralongerperiodifsuchdefaultcannotreasonablybecuredwithinsaidten(10)dayperiod(andtheTownacknowledgesthatsinceHondiusisanassociationthatisrequiredbyitsbylaws,incertaininstances,toobtaintheconsentofitsmemberspriortoundertakingcertainactions,Hondiusmayneedadditionaltimetocurecertainallegeddefaults),thenon-defaultingpartyshallhavetherighttoanactionforspecificperformanceanddamages,includingattorneyfeesandcostsincurred.TheTownmaynotterminatethisAgreementforadefaultbyHondius,buttheTownmaysuspendwaterservice(onthesamebasisandforthesamereasonstheTowncouldsuspendservicetoaresidentoftheTown)untilsuchtimeasHondiuscuresitsdefault12.Hondiusmay.atanytimeandatHondius’election,terminatethisAgreementby(IInotifyingtheTownofHondius’intenttoterminatethisAgreement;(ii)payingforallwaterusedbyHondiustothedateoftermination;and(iii)disconnectingHondius’systemfromtheTown’ssystem.13.HondiusisacquiringtheprivatewatersystemfromHighDriveWaterDistrictwhichisthecurrentownerofthesystem.ThetransferofassetstoHondiusisthusdependentuponactionbytheDistrict,whichmaypotentiallyinvolvethedissolutionoftheDistrict.Accordingly,theobligationsofHondiusunderthisAgreementshallnotcommenceuntilsuchtimeastheprivatewatersystemassetshavebeenvestedinHondius.14.AnynoticegivenbyonepartytotheotherunderthisAgreementshallbedeemedeffectivefive(5)daysfollowingmailingwithsufficientpostageprepaid,andcertifiedasfollows:TownofEstesHondiusWaterUsersAssociation,Inc.RD.Box1200RO.Box1053EstesPark,CC80517EstesPark,CC80517oratsuchotheraddressasthepartiesmaydesignateinwriting.15.ThisAgreementshallbebindinguponandinuretothebenefitofthepartieshereto,theirrespectiveheirs,personalrepresentatives,successorsandassigns,asthecasemaybe.16.ThisAgreementcontainstheentireagreementbetweenthepartieswithrespecttothetransactioncontemplatedherein,andnorepresentationsarerelieduponthatarenotsetforthherein.ThisAgreementmaybeamendedonlybyagreementinwriting,signedbybothpartieshereto.3 Ca CAgreementBetweenTownofEsteeParkendHondiusWaterUsersAssociation,Inc.0INWITNESSWHEREOF,thepartiesheretohaveexecutedthisAgreementasoftheEffectiveDate.ATTESt-,TownClerkATTESt•SecretaryTOWNOFESTESPARK,aMunicipalCorporatiiHONDIUSWATERUSERSASSOCIATION,E.A.Hartsook,residentINC.Max4 C0