City Council Minutes 1993 01 19 - Laserfiche WebLink

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light of the outcome of the election and the passage of Amendment 1. The Northern District has re-evaluated some aspects of the project and has asked other people whether they would be interested in participating. The District adopted a policy change that would allow participants to potentially meet their obligations to the District by payments from sources other than tax levies, in order to comply with the Amendment 1 requirements. He stated that the District is moving forward with the project and Amendment 1 is not going to prohibit the Project from moving forward. Because of its contract with the City of Broomfield for the base capacity in this pipeline, it needs to move forward on a fairly stringent time line. He stated that the District has established a deadline of January 31, 1993, for potential participants to execute some kind of an agreement committing to participation with appropriate contingencies in this project. He explained that they have been negotiating with the District and their attorneys to arrive at a proposed contract structure to recommend to Council. Shimmin stated that if the participants have agreed by January 31, 1993, then the Northern District Board will make decisions at their February 12, 1993, meeting concerning the alignment of the pipeline. He explained that if the alignment goes east, the costs go up for Louisville to the point where it's probably not affordable. If it stays west, the costs are affordable. He stated that after the decision on February 12, 1993, it will move into final design. This summer bid documents will be prepared and by December 1, 1993, they're anticipating a bid opening. The contract will be awarded and construction will take place during 1994 and 1995. He went on to review the agreement (SEE ATTACHED). He explained that the District, itself, is not promising that the project can be built for the numbers that are in the estimates. It has the right to terminate the project at any point, if certain events occur, which are described in paragraph 8. He stated that in paragraph 14 there is a provision that contemplates, subsequent to this agreement, the execution of another contract, which is referred to as the allotment contract. He explained that this is an interim agreement that will get the City from here to the decision to go ahead with construction. Once that decision is made, then the City would need to execute a supplemental allotment contract, which will govern the City's obligation to pay the ongoing costs of operating and maintaining the pipeline after it's built. Shimmin stated that he's worked with the District to work this out in a flexible way. That agreement hasn't yet been negotiated, but he contemplates that it will be negotiated between now and August 1, 1993. Because of some Amendment 1 potential concerns, that even though it may be negotiated by August 1, that it would not have to be executed until the time the City moves forward with construction to allow time for any elections that might have to occur under Amendment 1. Shimmin pointed out the risk factors involved: 1.) Between the time when the first set of contingencies are fulfilled and bid opening, that the project is simply 3