City Attorney's Office
Reference: Amendment to First Amended & Restated Beebe Draw Wastewater Service Agreement.
To: Mayor Gregory Mills and Members of City Council
Through: The City Attorney's Office
Prepared By: Lena McClelland, Acting City Attorney
Date Prepared: May 13, 2021
PURPOSE
To consider a resolution approving an amendment to the First Amended and Restated Beebe Draw Wastewater Service Agreement (the "2009 WSA").
STRATEGIC FOCUS AREA
Supportive, Sustainable Infrastructure
Strong Regional Relationships and Partnerships
BACKGROUND
In 2009 the City of Brighton, Town of Lochbuie, and the South Beebe Draw Metro District ("SBDMD") entered into the 2009 WSA (which amended a 1997 agreement) that outlined the relationship of the parties in expanding the Town's wastewater treatment plant ("WWTP"). The WWTP serves properties within the Beebe Draw. The WSA established a 5 voting member and 1 non-voting member Sewer Board (3 from Lochbuie, 2 from Brighton, and 1 non-voting member from SBDMD) as the governing body of the Lochbuie Regional Wastewater Treatment Plant.
In 2007, SBDMD issued notes to pay for the WTTP expansion and pursuant to the 2009 WSA the Town and the City were obligated to collect Plant Investment Fees (PIFs) and remit them to an escrow account. The 2007 notes have since been paid off.
On April 29, 2021, the Sewer Board met and Lochbuie presented a request for the Board to amend the 2009 WSA. Lochbuie has requested that the 2009 WSA be amended so that PIFs collected by Brighton and Lochbuie would be paid directly to Lochbuie and deposited into a segregated account instead of an escrow account. Additionally, since the 2007 notes have been paid off, all references to the 2007 notes would be removed.
If the proposed amendment is approved, the PIFs will be remitted directly to Lochbuie. The intent is to eliminate the logistical hoops that occur when reimbursement is needed for WWTP improvement projects that are allowed under the 2009 ...
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