12-15-2014 ERWSD Third Supplemental Agreement Res. No. 14-16TOWN OF AVON
RESOLUTION NO. 14 -16
SERIES OF 2014
A RESOLUTION APPROVING A THIRD SUPPLEMENTAL WATER
LEASE AGREEMENT WITH THE UPPER EAGLE RIVER WATER
AUTHORITY
WHEREAS, the Upper Eagle River Water Authority (`'Authority ") is a quasi- municipal
corporation established pursuant to an Intergovernmental Agreement dated September 18, 1984,
among the Arrowhead Metropolitan District, the Town of Avon as successor to the Avon
Metropolitan District ( "Avon "), the Beaver Creek Metropolitan District, the Berm Creek
Metropolitan District, the Eagle -Vail Metropolitan District, and the Edwards Metropolitan
District (collectively the "Member Districts "), and the Authority is the owner or lessee of the
water rights and facilities that provide water service by contract to existing and projected
developments within the service area of its Member Districts; and
WHEREAS, pursuant to the Amended and Restated Water Lease dated effective as of
January 1, 1998, between the Authority and the Town, the Town leased to the Authority certain
water and water rights, ditches and ditch rights, wells and groundwater rights, springs and spring
rights, and reservoirs and storage rights described as an undivided 77.7°•a' interest in the water
rights described on Exhibit A attached to the Restated Water Lease; and
WHEREAS, pursuant to the Supplemental Water Lease dated July 14, 2005, the Town
leased to the Authority the remaining 22.3% undivided interest in and to the subject water rights
and the Supplemental Water Lease states that the entire interest in the subject water rights leased
to the Authority by virtue of the Restated Water Lease and the Supplemental Water Lease are
adequate to replace depletions associated with lake evaporation (42.30 acre feet), non - potable
irrigation in the amount of 19.58 acre feet, and potable water service for up to 4,984 equivalent
residential units single family equivalents (SFE); and
WHEREAS, pursuant to the Supplemental Water Lease dated June 25, 2009, the Authority
agreed to increase the number of SFE's that it will serve within the town by 255.55 to account
for additional water requirements of the Confluence Project, increasing the total service from
4,984 SFE's to 5,239.55 SFE's; and
WHEREAS, pursuant to the Second Supplemental Water Lease dated January 26'h, 2010,
the Authority agreed to increase the number of SFE's that it will serve within the town by 15
SFEs to account for additional water requirements of the Eagle River at Avon Project, increasing
the total service from 5,239.55 SFEs to 5,254.55 SFE's; and
WHEREAS, subsequent to the Second Supplemental Water Lease, the Authority and
Wyndham Worldwide Vacation Ownership. (the "Company ") entered into that certain Water
Service Agreement dated April 8, 2013, whereby the Company sought water service for property
in the Town known as the Wyndham development which at full build out will consist of 58 SFE;
and therefore the Authority agreed to service these 58 SFEs at the Wyndham development from
Res. No. 14 -16 Approving Third Supplemental M ater Lease
August 12, 2014 FINAL
Page 1 of 2
35 .8 SFEs under the Town's water lease agreement with UERWA and 22.2 SFE's owned by the
Authority for which cash -in -lieu fees were paid provided certain contingencies were met,
including the dedication of certain water rights to the Authority; and
WHEREAS, the contingencies contemplated in the Water Service Agreement have been
satisfied, and as a result, the Authority and the Town desire to enter into this Agreement whereby
the Authority agrees to increase the number of SFEs that it will serve in the Town by 22.2, to a
total of 5,276.75 SFEs; and
WHEREAS, the Town and the Company entered into an Development Agreement dated
February 26, 2013, under which the Company was obligated to dedicate and convey to the
Authority certain water rights, and said agreement contemplated that should the Authority fail to
provide water service to the Wyndham development for any reason, the water rights dedicated to
the Authority shall be assigned by the Authority to the Tok%n; and
WHEREAS, it is the intent and purpose of this Third Supplemental Water Service
Agreement to increase the maximum number of SFEs to which the Authority will provide water
service within the Town from 5,254.55 SFEs to 5,276.75 SFEs, and insure that the dedicated
water rights for the Wyndham do %clopment are assigned to the Town M the event the Authority
(or any successor entity) fails to provide %water ser, ice to the Wyndham development.
NOW, THEREFORE BE IT RESOLVED BY THE TOWN COUNCIL OF THE
TOWN OF AVON, that the T1 IIRD SUPPLEMENTAL WATER LEASE AGREEMENT
WITH THE UPPER EAGLE RIVER WATER AUTHORITY as hereto attached as Exhibit A is
hereby approved by the Town oI'Avon.
ADOPTED AND APPROVED by the Avon Town Council on August 12, 2014.
BY:
Rich Carroll, Mayor
Res. No. 14 -16 Approi ing Third Supplemental M rater Lease
August 12, 2014 FIN -kL
Page 2 of 2
Attest:
Debbie I loppe, Towrn Jerk
1. Additional Water Service Commitment. The Authority agrees that it will serve an
additional 22.2 SFEs in Avon in addition to the 5,254.55 SFEs that were specified in the
Supplemental Water Service Agreements. These additional 22.2 SFEs will be available to the
Property on the same basis as other users within the Authority's service area to meet the
construction, residential, municipal, irrigation, recreation and other incidental water demands of
the Property. The total number of SFEs in Avon that the Authority agrees to serve now totals
5,276.75 SFEs. The parties' Supplemental Water Service Agreements and the January 1, 1998
Amended and Restated Water Lease and the July 14, 2005 Supplemental Water Lease remain in
full force and effect as supplemented by this Agreement.
2. Customer Charges. Currently all customers within Avon pay directly to the
Authority plant investment fees and treated water storage fees at the time of hook up, and the
monthly service charges of the Authority. Nothing contained In this Agreement shall modify this
arrangement and all customers within Avon shall continue to be directly responsible for the
payment of such fees and charges.
3. Miscellaneous:
(a) This Agreement may not be amended nor any rights hereunder waived
except by an instrument in writing signed by the parties sought to be charged with such
amendment or waiver.
(b) This Agreement shall be interpreted in accordance with and governed by
the laws of the State of Colorado. The forum for resolution of any and all disputes arising
hereunder shall be the District Court in and for Eagle County, State of Colorado.
(c) The paragraph headings herein are inserted for convenience of reference
only and do not define, limit or prescribe the scope of this Agreement.
(d) The parties agree to execute such additional documents as may be
reasonably required to implement the terms of this Agreement.
(e) The terms of this Agreement shall be binding on the parties' successors
and assigns.
(f) Notwithstanding any interpretation of any term or condition to the
contrary, water service to any customer or property within Avon shall be subject to all other
rules, regulations, fees and requirements of the Authority.
EXECUTED as of the date first set forth above.
53769 2
THIRD SUPPLEMENTAL WATER SERVICE AGREEMENT
This Agreement dated this 28`' day of February, 2013, is between the Upper Eagle
Regional Water Authority, a quasi - municipal corporation and political subdivision of the State of
Colorado (the "Authority"), and the Town of Avon (the "Avon "), a municipal corporation.
RECITALS
A. The Authority is a quasi - municipal corporation established pursuant to an
Intergovernmental Agreement dated September 18, 1984, among the Arrowhead Metropolitan
District, Avon as successor to the Avon Metropolitan District, the Beaver Creek Metropolitan
District, the Berry Creek Metropolitan District, the Eagle-Vail Metropolitan District, and the
Edwards Metropolitan District (collectively the "Member Districts "). The Authority is the
owner or lessee of the water rights and facilities that provide water service by contract to existing
and projected developments within the service area of its Member Districts.
B. Pursuant to the Supplemental Water Service Agreement dated June 25, 2009,
between the Authority and the Town, as modified by the Second Supplemental Water Service
Agreement dated September 24, 2009, between the Authority and Avon (the "Supplemental
Water Service Agreements "), the Authority committed to provide water service to a total of
5,254.55 single family equivalent residential units ( "SFEs ") in Avon.
C. By Water Service Agreement dated February 28, 2013, between the Authority and
Wyndham Vacation Resorts, Inc. (the "Company "), the Company sought to obtain water service
for an additional 22.2 SFEs not covered by the Supplemental Water Service Agreements. The
additional 22.2 SFEs are located on property described as Lot 61, Block 22, Benchmark at
Beaver Creek, in Avon (the "Property"), The Authority agreed to service these additional 22.2
SM associated with the Property up to the limits detailed in the Water Service Agreement,
provided certain contingencies were met, including the payment of the required cash in lieu fee.
D. The contingencies contemplated in the Water Service Agreement have been
satisfied. As a result, the Authority and the Town desire to enter into this Agreement whereby
the Authority agrees to increase the number of SFEs that it will serve in Avon by 22.2 SFEs, to a
total of 5,276.75 SFEs.
E. Avon and the Company entered into a Development Agreement for the Property
dated Februar' �bf 96.`r , 2013.
s
F. It is the intent and purpose of this Third Supplemental Water Service Agreement
to increase the maximum number of SFEs to which the Authority will provide water service
within Avon from 5254.55 SM to 5,276.75 SF-Es.
NOW, THEREFORE, in consideration of the premises contained herein and other good
and valuable consideration, the sufficiency of which are hereby acknowledged, the Authority and
the Town agree as follows:
5F69
STATE OF COLORADO
)Ss.
COUNTY OF EAGLE )
The foregoing instrument was acknowledged before me this 2tLi- day of
r6onjaQ. , 2013, by'pamam,; 0 Lzm%As,.A4 as _P�kdE& of the
Upper Eagle Regional Water Authority, a quasi - municipal corporation and political subdivision
of the State of Colorado.
Witness my hand and official seal. My commission expires OZ,0 I. 1-1
CATHERINE LUNDY HAYES
NOTARY PUBLIC
STATE OF COLORADO
'NOTARY iD 20134006102
MY COMMISDYq EXPIRES FEBRUARY 1.2D17
STATE OF COLORADO )
) ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this _day of
`, v "beo,. , 2016 by MM ��hh -e ,�, as of the Town
of Avon .00 «j q I
Witness my hand and official seal. My commission expires.
DEBORAH M HOPPE
NOTARY PUBLIC
STATE OF COLORADO
NOTARY ID 20054028126
MY COMMISSION EXPIRES JULY 18, 2017
5076.9
'��p I �r % 42 � -, M.
Notary Public
UPPER EAGLE REGIONAL WATER AUTHORITY,
a quasi - municipal corporation of the State of Colorado
TUWJ
By:
Name
Title:
59769
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