TC Res. No. 2010-20 Approving the Encroachment Agreement with Holy Cross EnergyTOWN OF AVON
RESOLUTION NO. 10 -20
Series of 2010
A RESOLUTION APPROVING THE ENCROACHMENT AGREEMENT WITH HOLY
CROSS ENERGY FOR IMPROVEMENTS RELATED TO THE AVON COMMUNITY
HEAT RECOVERY PROJECT, TRACT H, BLOCK 2, BENCHMARK AT BEAVER
CREEK
WHEREAS, the Town of Avon is currently constructing the Avon Community Heat Recovery
Project; and
WHEREAS, the Town of Avon has a right to use Tract H, Block 2, Benchmark at Beaver
Creek, known as the Avon Wastewater Treatment Facility, to construct a utility building known
as the Heat Pump Building; and
WHEREAS, the Town of Avon entered into an Intergovernmental Agreement with the Eagle
River Water and Sanitation District for the funding, construction, maintenance, and operation of
the Heat Recovery Project; and
WHEREAS, Holy Cross Energy is the owner of a 25 -foot right of way easement along the
northern property boundary of Tract H; and
WHEREAS, Holy Cross Energy requires the execution of the Encroachment Agreement,
attached hereto as Exhibit A, to permit the construction of the Heat Pump building beneath the
overhead power lines.
NOW, THEREFORE BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN
OF AVON, that the Town Council of the Town of Avon hereby approves the Encroachment
Agreement by and between Holy Cross Energy, the Town of Avon, and Eagle River Water and
Sanitation District, attached as Exhibit A.
ADOPTE effl 8, 2010.
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TOWN COUNCIL
S TOW OF AVON, COLORADO
�O�ORADD �'
Ronald C. Wolfe, Mayo
ST:
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P y Kenny, TIo4 Clerk
Patty McKenny
From: Patty McKenny
Sent: Monday, November 01, 2010 10:01 AM
To: Jeffrey Schneider
Subject: Holy Cross Encroachment Agreement:)
I'm missing the agreement do you have the original or copy for me?
Thanks.
114tiy.41chei#i#y
Assistant Town Manager- Management Services
Town of Avon, Heart of the Valley
w.970.748.4035
email: pmckenny @avon.org
website: www.avon.org
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11
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• Memo
To: Honorable Mayor and Town Council
Thru: Larry Brooks, Town Manager
Legal Review: Eric Heil, Town Attorney
Approved by: Sally Vecchio, Assistant Town Manager
From: Justin Hildreth, P.E., Town Engineer
Jeffrey Schneider, P.E., Project Engineer
Date: September 21, 2010
Initials
t
Re: Resolution No. 10 -20, Series of 2010, A Resolution Approving the
Encroachment Agreement with Holy Cross Energy for Improvements Related
to the Avon Community Heat Recovery Project, Tract H, Block 2, Benchmark at
Beaver Creek
Summary: The Avon Community Heat Recovery project will utilize the heat energy in treated
wastewater effluent from the Avon Waste Water Treatment Facility (WWTF) to heat the Recreation
Center swimming pools and eventually provide snowmelt energy for Main Street. The project
consists of installing pumps, heat exchangers, process piping, and other new equipment in a
building at the Avon WWTF and trenching heat supply and return lines to another new building to be
located immediately east of the Recreation Center. The project is partially funded by a grant from the
Governor's Energy Office through the Colorado Department of Local Affairs (DOLA) and is being
• conducted in partnership with the Eagle River Water and Sanitation District ( ERWSD). The Heat
Pump Building, located on the WWTF site, is constructed beneath existing Holy Cross Energy
(HCE) overhead power lines. HCE owns a 25 -foot wide easement for the lines along the property
line. Resolution 10 -20, attached as Exhibit A, allows the Town to encroach into the easement for
construction and operation of the Heat Recovery system. HCE has agreed to the construction, the
Encroachment Agreement is merely a housekeeping item to ensure that all parties are in agreement
regarding the encroachment.
Previous Council Action: Town Council approved the grant agreement with DOLA at the April 28,
2009 regular meeting. The intergovernmental agreement between ERWSD and Town of Avon
(TOA) was approved at the May 26, 2009 regular Council meeting. The Design Services Contract
was awarded to Camp, Dresser, and McKee, Inc. (CDM) at the June 23, 2009 regular Council
meeting. Previous project updates were given to Council at the November 10, 2009 and February 9,
2010 meetings. The construction contract was awarded to GE Johnson Construction Company
(GEJCC) on April 13, 2010. Change Order 01 to the construction contract was approved by Town
Council at the July 13, 2010 meeting.
Discussion: Two buildings are being constructed as part of the Avon Community Heat Recovery
project: the Heat Distribution Building and Heat Pump Building. The buildings are located adjacent
to the Recreation Center and on the Avon WWTF site, respectively. In order to meet the
requirements of the property owner ( ERWSD), the Heat Pump building was forced to within five feet
of the WWTF perimeter fence. This area is within an easement owned by HCE for its overhead
lines, known as a 25 -foot right of way easement.
The Encroachment Agreement is a three -party agreement with the Town, HCE, and ERWSD, the
• property owner. It acknowledges that the Town constructed a building beneath existing power lines
t
Resolution 10 -20
September 28, 2010
Page 2 of 2 •
and indemnifies HCE. ERWSD is approving the agreement concurrently. Due to site constraints,
no other feasible location was available at the WWTF site that would have allowed for vehicle
circulation, staging, and future plant expansion.
Financial Implications: There are no financial implications associated with the execution of
Resolution 10 -20, Series of 2010.
Recommendation: Staff recommends approval of Resolution No. 10 -20, Series of 2010, A
Resolution Approving the Encroachment Agreement with Holy Cross Energy for Improvements
Related to the Avon Community Heat Recovery Project, Tract H, Block 2, Benchmark at Beaver
Creek.
Proposed Motion: Move to approve Resolution No. 10 -20, Series of 2010, A Resolution Approving
the Encroachment Agreement with Holy Cross Energy for Improvements Related to the Avon
Community Heat Recovery Project, Tract H, Block 2, Benchmark at Beaver Creek.
Town Manager Comments:
Attachments: Attachment A — Resolution 10 -20, Series of 2010, A Resolution Approving the •
Encroachment Agreement with Holy Cross Energy for Improvements Related to the Avon
Community Heat Recovery Project, Tract H, Block 2, Benchmark at Beaver Creek
1�
• Page 2
ATTACHMENT A
TOWN OF AVON
RESOLUTION NO. 10 -20
Series of 2010
A RESOLUTION APPROVING THE ENCROACHMENT AGREEMENT WITH HOLY
CROSS ENERGY FOR IMPROVEMENTS RELATED TO THE AVON COMMUNITY
HEAT RECOVERY PROJECT, TRACT H, BLOCK 2, BENCHMARK AT BEAVER
CREEK
WHEREAS, the Town of Avon is currently constructing the Avon Community Heat Recovery
Project; and
WHEREAS, the Town of Avon has a right to use Tract H, Block 2, Benchmark at Beaver
Creek, known as the Avon Wastewater Treatment Facility, to construct a utility building known
as the Heat Pump Building; and
WHEREAS, the Town of Avon entered into an Intergovernmental Agreement with the Eagle
River Water and Sanitation District for the funding, construction, maintenance, and operation of
the Heat Recovery Project; and
WHEREAS, Holy Cross Energy is the owner of a 25 -foot right of way easement along the
northern property boundary of Tract H; and
• WHEREAS, Holy Cross Energy requires the execution of the Encroachment Agreement,
attached hereto as Exhibit A, to permit the construction of the Heat Pump building beneath the
overhead power lines.
NOW, THEREFORE BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN
OF AVON, that the Town Council of the Town of Avon hereby approves the Encroachment
Agreement by and between Holy Cross Energy, the Town of Avon, and Eagle River Water and
Sanitation District, attached as Exhibit A.
ADOPTED September 28, 2010.
ATTEST:
Patty McKenny, Town Clerk
•
TOWN COUNCIL
TOWN OF AVON, COLORADO
Ronald C. Wolfe, Mayor
EXHIBIT A
ENCROACHMENT AGREEMENT •
THIS AGREEMENT, is made and entered into this day of by and between
TOWN OF AVON ( "Avonj AND EAGLE RIVER WATER AND SANITATION DISTRICT, a quasi - municipal corporation, (the
"Owner") and Holy Cross Energy (hereinafter referred to as "Holy Cross").
WHEREAS, Avon is planning improvements upon a piece of property owned by the Owner described as: A part of Sections
11 and 12, Township 5 South, Range 82 West of the 6" P.M., a/k /a Tracts N, H and O, Benchmark at Beaver Creek Block 2
as more fully described in that particular Warranty Deed recorded by Reception No. 604193 in the records of the Eagle
County Clerk and Recorder's Office, Eagle, Colorado, (hereinafter the "Property"); and
WHEREAS, Avon has the right to use that property under an agreement called "Intergovernmental Agreement Regarding
Heat Recovery Project" dated May 28, 2009; and
WHEREAS, there is a 25' foot Holy Cross right -of -way easement across the property (hereinafter the "Easement's as more
fully described in the easement recorded by Reception No. 157490 in the records of the Eagle County Clerk and Recorder's
Office, Eagle, Colorado, and
WHEREAS, certain existing improvements and proposed improvements (collectively "Improvementsl encroach upon the
Easement in an area shown as "AREA OF ENCROACHMENT" on attached Exhibit A.
NOW, THEREFORE, in consideration of the covenants and promises herein, the parties hereby agree as follows:
1. Holy Cross shall permit the Avon Community Heat Recovery Building to encroach upon the Easement.
2. Avon and the Owner accept any and all risks associated with the proximity of the Improvements to the current and
future high voltage electric power lines.
3. Avon and the Owner warrant that it now has and shall continue to maintain adequate hazard insurance for the
protection of all structures, facilities or other property of whatsoever character owned by Avon or the Owner within or
adjacent to the Easement.
4. Holy Cross shall never be liable to Avon or the Owner for damages to the Improvements arising out of its use of the
Easement to install, repair and maintain its electric facilities.
5. The Avon and the Owner shall indemnify Holy Cross from any increase in the cost of construction of any new utility
lines or in the cost of any repairs to Holy Cross's utility lines, such increase, if any, due to the encroachment of the
Improvements into the Easement.
6. This Agreement shall be binding upon, and shall inure to the benefit of, the parties hereto, their heirs, successors and •
assigns, and shall be deemed to run with the Property and the Easement herein described, until such time as the
Easement is relinquished or abandoned by Holy Cross, or the encroachment is permanently removed. This Agreement
shall be recorded against the Property in Eagle County, Colorado.
IN WITNESS WHEREOF the parties hereto have caused this Agreement to be executed as of the day and year
first above written.
HOLY CROSS ENERGY EAGLE RIVER WATER AND SANITATION,
a quasi municipal corporation
By: By_
Richard D. Brinkley, General Manager of (Vice) Chairman of the Board
Electric Operations and Engineering
STATE OF )
ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this day of , 20
by as (Vice) Chairman of the Board of EAGLE RIVER WATER AND
SANITATION, a quasi municipal corporation.
WITNESS my hand and official seal.
My commission expires:
Notary Public
Address:
W 1O #10- 20992:50- 63:Avon Waste Heat Recovery:8 /24/10 10-20992 Encroachment Agreement Avon -Eagle Bs Page 1 of 2 •
•
•
•
TOWN OF AVON
By:,
STATE OF )
ss.
COUNTY OF )
Mayor
The foregoing instrument was acknowledged before me this day of 20
by as Mayor of the TOWN OF AVON.
WITNESS my hand and official seal.
My commission expires:
Notary Public
Address:
STATE OF 1
ss.
COUNTY OF 1
The foregoing instrument was acknowledged before me this day of 20
by Richard D. Brinkley, General Manager of Electric Operations and Engineering of Holy Cross Energy, a Colorado
Corporation.
WITNESS my hand and official seal.
My commission expires:
Notary Public
Address:
W 1O#10- 20992:50- 63:Avon Waste Heat Recovery:8 /24/10 10-20992 Encroachment Agreement Avon -Eagle SS Page 2 of 2
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Holy Cross Energy NO FTTOL SCALE Date Section 11,12 Township 5 South Range 82 West of the 6th P.M. Eagle County EXHIBIT A
Glenwood Springs, Colorado AP CATIONS 08/26/10 Job Name: AVON WASTE HEAT RECOVERY W/O #: 20992