SUBJECT: CONSENT
Title
A Resolution of the Board of Trustees of the Town of Erie Approving a License Agreement with the Southern Water Supply Project Enterprise, owned by the Northern Colorado Water Conservancy District, for Construction of Water Line in Southern Water Supply Project Easement
Body
DEPARTMENT: Public Works
PRESENTER: Todd Fessenden, Public Works Director
FISCAL SUMMARY:
Cost as Recommended: $75,000
Balance Available: $5,185,000
Budget Line Item Number: 500-70-110-605000-100228
New Appropriation Required: No
STAFF RECOMMENDATION:
Recommendation
Staff recommends that the Board of Trustees approve the Resolution authorizing the Town to enter into License Agreement for Water Line Right of Way
End
SUMMARY AND BACKGROUND OF SUBJECT MATTER:
Background:
The Town requires a right of way to construct, operate and maintain a water line to serve the Rex Ranch development ("Right of Way"). The location of the Right of Way is located within the existing easement for a segment of the Southern Water Supply Project ("SWSP") pipeline which serves Erie and Broomfield. The Allotment Contracts for the SWSP require an Allottee to pay for rights of way at a cost of the greater of the appraised value, or one half of the original cost of the easement with annual interest at 9%, computed since the Allotment Contracts were executed in 1994. In the past, that valuation has been interpreted to compound the interest annually, although it is not explicitly required in the Allotment Contracts.
The cost of the Right of Way would been significantly higher if interest was compounded annually. In contrast, it would cost $75,000 if the Allotment Contracts were interpreted to apply 9% simple interest. Based on this savings, the Town negotiated with the Northern Colorado Water Conservancy District ("NCWCD") and Broomfield to calculate rights of way acquisitions in the affected segment of the SWSP easement using 9% simple interest.
The Town was successful...
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