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bocc.con.148.2019 - BOCC
— — — RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS ("BOCC") OF PITKIN COUNTY, COLORADO,APPROVING THE HOME SUPPLY DITCH MODIFICATION AGREEMENT CONTRACT RESOLUTION NO. -2018 # /L6- 60ta RECITALS: 6 &,14-1-AAAk-se ) 1. Pursuant to Section 2.8.4 (Actions) of the Pitkin County Home Rule Charter ("HRC"), all matters not required to be acted upon by ordinance or formal resolution may be acted upon by informal resolution. 2. The Voters of Pitkin County and the Board of County Commissioners of Pitkin County (BOCC) established an Open Space and Trails Fund for the purposes of acquiring, preserving, managing, and maintaining open space and trails assets and resources, and established an Open Space and Trails Board of Trustees (OSTB) to guide the expenditure of those funds. 3. The Open Space and Trails Program (OST) is charged with protecting agriculture, open space, habitat, scenic view planes, water rights and river access. 4. The Emma Open Space Management Plan was adopted in June 2017 to guide the OST staff in improvements and management of the property including creating a crossing over the Home Supply Ditch to link the Rio Grande Trail to the Light Hill Bureau of Land Management (BLM) Area and to link the Schoolhouse and South Lease Areas. 5. The Home Supply Ditch Company requires a Ditch Modification Agreement to make improvements to the ditch and complete the crossing. 6. OST staff, Pitkin County Attorney, and Home Supply Ditch Company have agreed to the form of the Ditch Modification Agreement. 7. The BOCC finds that it is in the best interests of the citizens of Pitkin County to approve this Resolution. NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Pitkin County, Colorado that it approves this Resolution approving the Home Supply Ditch Modification Agreement and authorizes the Chair to sign the Resolution and upon the satisfaction of the County Attorney as to form, execute any other associated documents necessary to complete this matter. IIIH 1111111011111111 11111 1111111 11 11111 111111111113 RECEPTION#:655005, R: $0.00, D: $0.00 DOC CODE: RESOLUTION Pg 1 of 36,04/03/2019 at 11:34:52 AM Janice K.Vos Caudill, Pitkin County, CO INTRODUCED, READ AND ADOPTED ON THE 10TH DAY OF OCTOBER 2018. ATTEST: BOARD OF COUNTY COMMISSIONERS B B . I� BYA, L' ./l By: 40t66(. le ette Jones Patti Clapper, Chair D• •uty County Cl:, k Date: 10--1fo-i e APPROVED AS TO FORM: MANAGER APPROVAL - / Jeattly, Count Jon P- .cock, ounty Manager OPEN SPACE AND TRAILS Gary Tennenbaum, i • 2 DITCH MODIFICATION AGREEMENT This Ditch Modification Agreement ("Agreement"), effective as of the latest date of execution written below, is by and between the Home Supply Ditch Company, a Colorado Non- Profit Corporation (the "Ditch Company") and the Board of County Commissioners of Pitkin County (the "County"). The Ditch Company and the County may be jointly referred to in this Agreement as the "Parties." WHEREAS, The Ditch Company was formed for the purposes of owning, holding title to, operating and maintaining the main line of the existing ditch, headgate, flumes, easements, rights- of-way, intake, spillways, water rights and all other assets of the Ditch Company (the "Ditch System"); WHEREAS, the primary component of the Ditch System is the Home Supply Ditch, an incorporated ditch diverting from the Roaring Fork River in Pitkin County,Colorado(the"Ditch"). The Ditch headgate is located on the south bank of said river at a point on Section 17, Township 8 South, Range 86 West of the 6th P.M., and at an alternate point of diversion located in Tract 63, Section 14, T.8 S., R. 87W. of the 6th P.M. at a point whence Angle Point No. 2 of said Tract 63 bears S.65° 57'48" E. 1400.30 feet; WHEREAS, The Ditch Company owns an easement and right-of-way over the Ditch with the right of ingress and egress to do all that is reasonably necessary to operate, maintain, repair, and replace the Ditch (the "Ditch Easement"). WHEREAS, the County owns certain real property located near Basalt, Colorado, Pitkin County, which is more particularly described in Exhibit A ("County Property"); WHEREAS, the County desires to construct improvements upon a segment of the Ditch that crosses the County Property. These improvements include,but are not limited to,a box culvert and crossing sufficient to allow equipment, vehicles, and pedestrians to cross the Ditch ("Improvements"). The Improvements will help facilitate access to a portion of the County Property; WHEREAS, construction of the Improvements, and the operation, maintenance, repair, and replacement ("OM&R")of the Improvements requires the County to encroach upon the Ditch Easement and modify the ditch structure; WHEREAS, the Ditch Company wishes to protect itself and its property interests in the Ditch System from harm, injury or increased OM&R expenses that may be caused by the Improvements; and WHEREAS,the Ditch Company and the County have agreed on the terms and conditions set forth herein necessary to enable the County to construct and OM&R the Improvements without adversely impacting the Ditch System. NOW THEREFORE, for good and valuable consideration,the receipt and sufficiency of Ditch Modification Agreement Page 2 of 8 which is acknowledged, and the mutual promises and covenants contained in this Agreement, the Parties agree as follows: 1. PURPOSE. The Ditch,Ditch Easement, structures, and water rights are valuable property rights, which must be protected from harm that may result from the County's construction of the Improvements. Construction and installation of the Improvements increases the Company's exposure to liability from parties accessing the Improvements after their construction and installation, including for OM&R of the Improvements. This Agreement establishes contract duties, rights, and remedies for protecting the Ditch Company and the Ditch Company's property rights in the Ditch System. The Improvements must be constructed in a workmanlike manner and ultimately function in a safe and proper manner to accomplish the above stated purposes of this Agreement. The Ditch as modified must be capable of handling up to 94 cubic feet per second (c.f.s.) of flow through the length of the altered Ditch, as that is the amount historically conveyed through the Ditch. 2. APPROVAL OF IMPROVEMENTS AND ANY CHANGES. The Ditch Company and its respective engineers, agents and attorneys have approved the plans to construct improvements upon the Ditch that are shown on the SGM Engineering "Pitkin County Open Space & Trails Emma Open Space Box Culvert" drawings dated October 31, 2017, attached as Exhibit A (the "Plans"). The Plans form a material basis for this Agreement. The Ditch Company reserves the right to review, approve, disapprove, or approve with conditions, any changes, updates, modifications, or revisions to the Plans, regardless of whether such changes are material, substantial, or minor in nature, prior to any construction work relating to the changes. Any such changes'and construction items, once approved, are incorporated within the meaning of "Improvements" as used in, and for the purposes of, this Agreement. Any drawings, engineering, or plans submitted for such changes, once approved, are incorporated within the meaning of"Plans." The Ditch Company shall not unreasonably withhold its approval of any changes,updates,modifications,or revisions,and shall provide the County with its approval or its reasons for denial thereof in writing within thirty(30) days following receipt of the County's written change proposal and request for approval. However,the Ditch Company reserves the right to require restoration, alteration,or remedial efforts as a condition of its approval. In the event the Ditch Company requires assistance from an engineer or an attorney to review any changes, updates, modifications, or revisions to the Improvements depicted in the Plans, the County shall pay the costs of the legal or engineering services within thirty (30) days of being presented with an invoice. The Ditch Company reserves the right to object to any of the Improvements, as installed, and to require remedial action be taken by the County, at the County's expense, including, but not limited to, altering or removing the Improvements, in the event the Improvements interfere in any way with the Ditch Company's operations. 3. TIMELY CONSTRUCTION AND COMPLETION OF THE IMPROVEMENTS. The County must accomplish all work relating to the Improvements, including OM&R, at times that do not interfere with the Ditch's operations and that are outside of the Ditch's historic irrigation season of April 1 through November 25 of each year unless the Ditch Company agrees otherwise in writing, and with no less than forty-five (45) days advance written notice describing in detail the nature of the work to be performed. Ditch Modification Agreement Page 3 of 8 4. PROPER CONSRUCTION OF THE IMPROVEMENTS. The County must accomplish all construction work, including OM&R, relating to the Improvements in accordance with all applicable codes, in a workmanlike manner, in strict conformity with the Plans, and must ensure that the Ditch channel profile, channel slope, carrying capacity(94 c.f s), volume of water flow, velocity of water flow, and amount of water seepage from and through the Ditch will be maintained at values consistent with the values existing prior to construction of the Improvements within the Ditch Easement. To ensure compliance with this Agreement, the County shall include construction of the Improvements within any general performance and completion bond(s) provided pursuant to its permit(s) or any other governmental approvals for its land use activities. Upon completion of any work on the Improvements, including the initial construction and any changes, modifications or repairs thereto, or replacement thereof, the County's professional engineer shall certify in writing to the Ditch Company that the work was accomplished in a workmanlike manner and in strict conformity with the Plans. Upon receipt of such certification, and within a reasonable time period based on the ability to observe the actual performance of the Ditch in the area of the Improvements(as constructed)under a full flow and other various scenarios during the irrigation season, the Ditch Company shall undertake a test and inspection of such work and Improvements, and provide to the County notice of approval of such work; or notice of any construction items that do not substantially comply with the approved Plans or which do not perform as intended under this Agreement. Upon receipt of such notice, the County shall undertake to fully correct such items which do not comply substantially with the approved Plans or intended performance of the Improvements. Upon any such correction, the County shall undergo and comply with the certification and inspection process provided for above as if it was the original construction completion. The Ditch Company is permitted to alter or remove all or any portion of the Improvements and reconstruct such, at the County's sole expense, if such action is reasonably required for the Ditch Company to deliver water in historic time, quantity, quality and manner through the Ditch. 5. ACCESS TO THE IMPROVEMENTS. In addition to the Ditch Company's existing easement rights, the Ditch Company and its agents, engineers and attorneys are granted a right of reasonable ingress and egress on and over the Improvements. 6. MAINTENANCE AND REPAIR OF THE IMPROVEMENTS. The County will OM&R the Improvements. However, the Ditch Company does not waive or relinquish any rights associated with its Ditch Easement. The County will be permitted to use such equipment and vehicles, including heavy equipment and machinery that are reasonable and customary to exercise its OM&R rights under this paragraph. The County further agrees it will be responsible for any and all repairs to the Improvements within the Ditch Easement necessary to avoid or mitigate any damage to the Ditch structure, adjacent property, or property down-gradient, or any malfunction in water delivery through the Ditch, as a result of the Improvements within the Ditch Easement. In the event the County fails to OM&R the Improvements, the Ditch Company will notify the County in writing, which notice will specify with particularity the nature of the failure to Ditch Modification Agreement Page 4 of 8 OM&R. In the event the County, after the notice, fails to remedy the failure to OM&R within twenty-four (24) hours after its receipt of such notice, then the Ditch Company may proceed to cure the failure and the costs of such OM&R performed by the Ditch Company will be reimbursed by the County. The County agrees that it will reimburse the Ditch Company within thirty(30)days for any expenses the Ditch Company incurs for OM&R of the Improvements. Reimbursements made to the Ditch Company after thirty (30) days will include an additional amount equal to eighteen percent (18 %)per annum or one and one-half percent (1.5 %)per month. In the event the County, after receipt of notice of an imminent threat of serious bodily injury, damage to persons or property, or other emergency situation, fails to act promptly to perform the OM&R necessary to address the threat, the Ditch Company may proceed to cure said failure. The costs of any work performed by the Ditch Company in responding to any such emergency will be assessed to and paid by the County in accordance with the process described in paragraph 12. 7. MAINTENANCE AND REPAIR OF THE DITCH SYSTEM. The Ditch Company is responsible for performing OM&R of the Ditch System. The Ditch Company shall perform such OM&R of the Ditch System in a manner consistent with historical practice, including, without limitation, the depositing of any trash or debris removed from the Ditch on the immediately adjacent Ditch banks. In the event the County wants to remove any such trash or debris,the County shall give the Ditch Company advance notice of its intent to do so. Such removal shall be at the County's sole cost. Maintenance of the Ditch System by the Ditch Company, including the use of heavy equipment, may result in damage to the Improvements, in which event the County shall hold the Ditch Company harmless and the Ditch Company shall have no liability for any such damage except in instances where such damage is caused by the willful recklessness of the Ditch Company. 8. TERMINATION. If the Improvements are not constructed by the County within two (2) years of the effective date of this Agreement, then, and in the absence of a written agreement signed by the Ditch Company and the County extending this period, this Agreement will automatically terminate. 9. THE COUNTY'S OBLIGATION TO HOLD HARMLESS AND INSURE. The parties expressly acknowledge that the consent to construct the Improvements is granted for a "recreational purpose" under C.R.S. § 33-41-101, et. seq., and that the Ditch Company is entitled to the benefits, protections, and limitations on liability afforded by Colorado law governing recreational easements, including without limitation C.R.S. § 33-41-101, et seq. and Section 24- 10-114(1). The Ditch Company shall have no obligation to repair, clear or otherwise maintain the improvements, or to insure or indemnify the County or the public for any injury, claim or damage to any person or property, whether alleged to have occurred as a result of use of the Improvements for public travel or otherwise, or due to the condition of the Improvements. By entering into this Agreement, the County agrees to hold harmless the Ditch Company, Ditch Modification Agreement Page 5 of 8 to the full extent allowed under Colorado law, from and against any and all claims, demands, causes of action, damages, losses, liabilities, costs and expenses of any kind or nature (including those involving death, personal injury or property damage and including reasonable attorneys' fees) arising from or incurred in any way in connection with the use or OM&R of the Improvements by anyone, including members of the general public, excepting any such claims or losses which may arise directly from the willful and grossly negligent acts of the Ditch Company, its agents or employees,or other claims as described in C.R.S. § 33-41-104(1). The County further agrees to add the Ditch Company as an additional named insured on its comprehensive general liability insurance policy,which insurance shall be maintained by the County to provide protection for the Ditch Company against liability from claims arising out of the use of the Improvements. Such insurance must be carried in amounts not less than the liability limits specified in C.R.S. § 24-10-114(1), as it may be amended from time to time, and must contain a requirement to provide the Ditch Company with thirty (30) days advance written notice prior to cancellation or termination. Any such termination will result in a termination of the County and public's right to use the Improvements until such time as such insurance is reinstated. The County shall, upon written request from the Ditch Company, provide a certificate of insurance as verification of compliance with these requirements. 10. LIEN WAIVER IN ADVANCE. The County expressly waives, in advance, its (and its contractors' and subcontractors') rights to any lien(s) arising out of the construction of the Improvements within the Ditch easement and to obtain lien waivers, in a form acceptable to the Ditch Company, from all other laborers or materialmen. 11. BREACH / REMEDIES. If either Party initiates litigation to enforce or defend any part of this Agreement, the prevailing Party must be awarded its attorneys' fees and costs incurred therein. This Agreement does not alter the legal rights and liabilities incumbent on any of the Parties under applicable statutes and case law concerning malfunction or failure of the Ditch. 12. REIMBURSEMENT OF COSTS AS PARTIAL CONSIDERATION. As partial consideration for this Agreement and the consent to ditch modification granted, the County will reimburse the Ditch Company for all fees and costs incurred in connection with this matter upon execution of this Agreement, including drafting, review and approval of this Agreement, review of the Plans and engineering, inspections and negotiation of this Agreement. The County will have the continuing responsibility to timely pay all such additional fees and costs incurred by the Ditch Company in connection with this Agreement, including but not limited to legal, engineering, surveying and construction fees and costs. The Ditch Company will document and provide to the County copies of all applicable bills,invoices, statements, etc. for which the Ditch Company seeks reimbursement under this paragraph. The County agrees that it will reimburse the Ditch Company within thirty (30) days of a bill being presented for any fees and costs the Ditch Company incurs in connection with this Agreement. Reimbursements made to the Ditch Company after thirty (30) days will include an additional amount equal to eighteen percent(18 %)per annum or one and one-half percent(1.5%) per month. 13. BINDING AGREEMENT. This Agreement will inure to the benefit of and be binding Ditch Modification Agreement Page 6 of 8 upon the heirs, executors, administrators, successors, and assigns of the Parties. 14. ENTIRE AGREEMENT OF THE PARTIES. This Agreement constitutes the entire agreement between the Parties and supersedes all prior agreements, offers, acceptances and understanding of the Parties with respect to the subject matter hereof. All prior and contemporaneous conversations, negotiations, possible alleged agreements, representations, covenants and warranties concerning the subject matter hereof are merged herein. 15. RECORDATION. Following execution of this Agreement by the Parties, the Ditch Company may cause this Agreement to be recorded in the Pitkin County Clerk and Recorder's Office at the County's expense. 16. RECITALS. The recitals above and attached exhibits are incorporated herein. 17. COUNTERPARTS. This Agreement may be executed in multiple counterpart signatures by the Parties, which taken together will constitute the Agreement between the Parties. Electronically generated (fax, scan, copy, etc.), signed copies of this Consent shall be treated as originals. 'WHEREFORE, the Parties indicate their acceptance of the terms and conditions of this Agreement by affixing their respective signatures as follows. [This space intentionally left blank—signatures follow] Ditch Modification Agreement Page 8 of 8 THE COUNTY: BOARD OF COUNTY COMMISSIONERS OF PITKIN COUNTY, COLORADO By: 6Lt C&C.42,4 /\-- t Y./ STATE OF COLORADO ) SS. COUNTY OF PITKIN Subscribed and sworn to before me this day of Ix AkA.GG,- 2018 by Ck-'‘ C CL-Cee as authorized representative of Pitkin County. Witness my hand and official seal. My Commission expires: /7 NpitiirSiPublic -777777 „ , • Ditch Modification Agreement Pri!!‘..7 of 8 DITCH COMPANY: The home Supply Ditch Company, A Colorado Non-Profit Corporation .-7 Dv: STATE OF COLORADO ) SS. COUNTY OF PITKIN Subscribed and sworn to before me this /t day of fl IL 2018 by filit.40e1 Ji ujas president of the Ditch Company. Witness my hand and official seal. My Commission expires: —71) Notary Public 'Additional signatures follow I CATHERINE B. 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I !i►►it• • i• /\ c9= w 00€ . •• ■ Q CI-x /Wt.�4.►, W Q "; •• •• X J \ Nor ! O. / mow= !G4i!.. • . . • . • • • A4,\/ a •. ° Q c� $140 G►'10i�i�Vii' ♦ ►' ►1• M 4 iiiii"i"i+ii��i�ii r••• \< - p Z . p • 4 am.�� // i�iii Pi4i� 44.i 0417'••• // ¢w.±"3 T ~- _ _ °d CO CY L - - / O M~Q C) I-Q Y 111 - F wooz +V. / j CO W U O / Q--I U I• 2 o Q w3a•-•(wi) �/� 1111111111111011111111111111111111111111111111111111111111111111111111111 CONTRACT RECEPTION#: 655006, R: $0.00, D: $0.00 DOC CODE:AGREEMENT Pg 1 of 34,04/03/2019 at 11:34:53 AM Ii7kc 1 /t /q_{�h�t Janice K.Vos Caudill, Pitkin County, CO # 66 (/l J(�' li DITCH MODIFICATION AGREEMENT This Ditch Modification Agreement ("Agreement"), effective as of the latest date of execution written below, is by and between the Home Supply Ditch Company, a Colorado Non- Profit Corporation (the "Ditch Company") and the Board of County Commissioners of Pitkin County (the "County"). The Ditch Company and the County may be jointly referred to in this Agreement as the "Parties." WHEREAS,The Ditch Company was formed for the purposes of owning,holding title to, operating and maintaining the main line of the existing ditch, headgate, flumes, easements,rights- of-way, intake, spillways, water rights and all other assets of the Ditch Company (the "Ditch System"); WHEREAS, the primary component of the Ditch System is the Home Supply Ditch, an incorporated ditch diverting from the Roaring Fork River in Pitkin County,Colorado(the"Ditch"). The Ditch headgate is located on the south bank of said river at a point on Section 17, Township 8 South, Range 86 West of the 6th P.M., and at an alternate point of diversion located in Tract 63, Section 14, T.8 S., R. 87W. of the 6th P.M. at a point whence Angle Point No. 2 of said Tract 63 bears S.65° 57'48" E. 1400.30 feet; WHEREAS,The Ditch Company owns an easement and right-of-way over the Ditch with the right of ingress and egress to do all that is reasonably necessary to operate, maintain, repair, and replace the Ditch (the "Ditch Easement"). WHEREAS, the County owns certain real property located near Basalt, Colorado, Pitkin County,which is more particularly described in Exhibit A("County Property"); WHEREAS, the County desires to construct improvements upon a segment of the Ditch that crosses the County Property. These improvements include,but are not limited to,a box culvert and crossing sufficient to allow equipment, vehicles, and pedestrians to cross the Ditch ("Improvements"). The Improvements will help facilitate access to a portion of the County Property; WHEREAS, construction of the Improvements, and the operation, maintenance, repair, and replacement("OM&R")of the Improvements requires the County to encroach upon the Ditch Easement and modify the ditch structure; WHEREAS, the Ditch Company wishes to protect itself and its property interests in the Ditch System from harm, injury or increased OM&R expenses that may be caused by the Improvements; and WHEREAS,the Ditch Company and the County have agreed on the terms and conditions set forth herein necessary to enable the County to construct and OM&R the Improvements without adversely impacting the Ditch System. NOW THEREFORE,for good and valuable consideration,the receipt and sufficiency of Ditch Modification Agreement Page 2 of 8 which is acknowledged, and the mutual promises and covenants contained in this Agreement, the Parties agree as follows: 1. PURPOSE. The Ditch, Ditch Easement, structures, and water rights are valuable property rights, which must be protected from harm that may result from the County's construction of the Improvements. Construction and installation of the Improvements increases the Company's exposure to liability from parties accessing the Improvements after their construction and installation, including for OM&R of the Improvements. This Agreement establishes contract duties, rights, and remedies for protecting the Ditch Company and the Ditch Company's property rights in the Ditch System. The Improvements must be constructed in a workmanlike manner and ultimately function in a safe and proper manner to accomplish the above stated purposes of this Agreement. The Ditch as modified must be capable of handling up to 94 cubic feet per second (c.f.s.) of flow through the length of the altered Ditch, as that is the amount historically conveyed through the Ditch. 2. APPROVAL OF IMPROVEMENTS AND ANY CHANGES. The Ditch Company and its respective engineers, agents and attorneys have approved the plans to construct improvements upon the Ditch that are shown on the SGM Engineering "Pitkin County Open Space & Trails Emma Open Space Box Culvert" drawings dated October 31, 2017, attached as Exhibit A (the "Plans"). The Plans form a material basis for this Agreement. The Ditch Company reserves the right to review, approve, disapprove, or approve with conditions, any changes, updates, modifications, or revisions to the Plans, regardless of whether such changes are material, substantial, or minor in nature, prior to any construction work relating to the changes. Any such changes and construction items, once approved, are incorporated within the meaning of "Improvements" as used in, and for the purposes of, this Agreement. Any drawings, engineering, or plans submitted for such changes, once approved, are incorporated within the meaning of"Plans." The Ditch Company shall not unreasonably withhold its approval of any changes,updates,modifications,or revisions,and shall provide the County with its approval or its reasons for denial thereof in writing within thirty(30)days following receipt of the County's written change proposal and request for approval. However,the Ditch Company reserves the right to require restoration, alteration, or remedial efforts as a condition of its approval. In the event the Ditch Company requires assistance from an engineer or an attorney to review any changes, updates, modifications, or revisions to the Improvements depicted in the Plans, the County shall pay the costs of the legal or engineering services within thirty (30) days of being presented with an invoice. The Ditch Company reserves the right to object to any of the Improvements, as installed, and to require remedial action be taken by the County, at the County's expense, including, but not limited to, altering or removing the Improvements, in the event the Improvements interfere in any way with the Ditch Company's operations. 3. TIMELY CONSTRUCTION AND COMPLETION OF THE IMPROVEMENTS. The County must accomplish all work relating to the Improvements, including OM&R, at times that do not interfere with the Ditch's operations and that are outside of the Ditch's historic irrigation season of April 1 through November 25 of each year unless the Ditch Company agrees otherwise in writing, and with no less than forty-five (45) days advance written notice describing in detail the nature of the work to be performed. Ditch Modification Agreement Page 3 of 8 4. PROPER CONSRUCTION OF THE IMPROVEMENTS. The County must accomplish all construction work, including OM&R, relating to the Improvements in accordance with all applicable codes, in a workmanlike manner, in strict conformity with the Plans, and must ensure that the Ditch channel profile, channel slope, carrying capacity(94 c.f.$), volume of water flow, velocity of water flow, and amount of water seepage from and through the Ditch will be maintained at values consistent with the values existing prior to construction of the Improvements within the Ditch Easement. To ensure compliance with this Agreement, the County shall include construction of the Improvements within any general performance and completion bond(s) provided pursuant to its permit(s) or any other governmental approvals for its land use activities. Upon completion of any work on the Improvements, including the initial construction and any changes, modifications or repairs thereto, or replacement thereof, the County's professional engineer shall certify in writing to the Ditch Company that the work was accomplished in a workmanlike manner and in strict conformity with the Plans. Upon receipt of such certification, and within a reasonable time period based on the ability to observe the actual performance of the Ditch in the area of the Improvements(as constructed)under a full flow and other various scenarios during the irrigation season,the Ditch Company shall undertake a test and inspection of such work and Improvements, and provide to the County notice of approval of such work; or notice of any construction items that do not substantially comply with the approved Plans or which do not perform as intended under this Agreement. Upon receipt of such notice, the County shall undertake to fully correct such items which do not comply substantially with the approved Plans or intended performance of the Improvements. Upon any such correction, the County shall undergo and comply with the certification and inspection process provided for above as if it was the original construction completion. The Ditch Company is permitted to alter or remove all or any portion of the Improvements and reconstruct such, at the County's sole expense, if such action is reasonably required for the Ditch Company to deliver water in historic time, quantity, quality and manner through the Ditch. 5. ACCESS TO THE IMPROVEMENTS. In addition to the Ditch Company's existing easement rights, the Ditch Company and its agents, engineers and attorneys are granted a right of reasonable ingress and egress on and over the Improvements. 6. MAINTENANCE AND REPAIR OF THE IMPROVEMENTS. The County will OM&R the Improvements. However, the Ditch Company does not waive or relinquish any rights associated with its Ditch Easement. The County will be permitted to use such equipment and vehicles, including heavy equipment and machinery that are reasonable and customary to exercise its OM&R rights under this paragraph. The County further agrees it will be responsible for any and all repairs to the Improvements within the Ditch Easement necessary to avoid or mitigate any damage to the Ditch structure, adjacent property, or property down-gradient, or any malfunction in water delivery through the Ditch, as a result of the Improvements within the Ditch Easement. In the event the County fails to OM&R the Improvements, the Ditch Company will notify the County in writing, which notice will specify with particularity the nature of the failure to Ditch Modification Agreement Page 4 of 8 OM&R. In the event the County, after the notice, fails to remedy the failure to OM&R within twenty-four (24) hours after its receipt of such notice, then the Ditch Company may proceed to cure the failure and the costs of such OM&R performed by the Ditch Company will be reimbursed by the County. The County agrees that it will reimburse the Ditch Company within thirty(30)days for any expenses the Ditch Company incurs for OM&R of the Improvements. Reimbursements made to the Ditch Company after thirty (30) days will include an additional amount equal to eighteen percent (18 %)per annum or one and one-half percent(1.5 %)per month. In the event the County, after receipt of notice of an imminent threat of serious bodily injury, damage to persons or property, or other emergency situation, fails to act promptly to perform the OM&R necessary to address the threat, the Ditch Company may proceed to cure said failure. The costs of any work performed by the Ditch Company in responding to any such emergency will be assessed to and paid by the County in accordance with the process described in paragraph 12. 7. MAINTENANCE AND REPAIR OF THE DITCH SYSTEM. The Ditch Company is responsible for performing OM&R of the Ditch System. The Ditch Company shall perform such OM&R of the Ditch System in a manner consistent with historical practice, including, without limitation, the depositing of any trash or debris removed from the Ditch on the immediately adjacent Ditch banks. In the event the County wants to remove any such trash or debris,the County shall give the Ditch Company advance notice of its intent to do so. Such removal shall be at the County's sole cost. Maintenance of the Ditch System by the Ditch Company, including the use of heavy equipment, may result in damage to the Improvements, in which event the County shall hold the Ditch Company harmless and the Ditch Company shall have no liability for any such damage except in instances where such damage is caused by the willful recklessness of the Ditch Company. 8. TERMINATION. If the Improvements are not constructed by the County within two (2) years of the effective date of this Agreement, then, and in the absence of a written agreement signed by the Ditch Company and the County extending this period, this Agreement will automatically terminate. 9. THE COUNTY'S OBLIGATION TO HOLD HARMLESS AND INSURE. The parties expressly acknowledge that the consent to construct the Improvements is granted for a "recreational purpose"under C.R.S. § 33-41-101, et. seq., and that the Ditch Company is entitled to the benefits, protections, and limitations on liability afforded by Colorado law governing recreational easements, including without limitation C.R.S. § 33-41-101, et seq. and Section 24- 10-114(1). The Ditch Company shall have no obligation to repair, clear or otherwise maintain the improvements, or to insure or indemnify the County or the public for any injury, claim or damage to any person or property,whether alleged to have occurred as a result of use of the Improvements for public travel or otherwise, or due to the condition of the Improvements. By entering into this Agreement, the County agrees to hold harmless the Ditch Company, Ditch Modification Agreement Page 5 of 8 to the full extent allowed under Colorado law, from and against any and all claims, demands, causes of action, damages, losses, liabilities, costs and expenses of any kind or nature (including those involving death, personal injury or property damage and including reasonable attorneys' fees) arising from or incurred in any way in connection with the use or OM&R of the Improvements by anyone, including members of the general public, excepting any such claims or losses which may arise directly from the willful and grossly negligent acts of the Ditch Company, its agents or employees,or other claims as described in C.R.S. § 33-41-104(1). The County further agrees to add the Ditch Company as an additional named insured on its comprehensive general liability insurance policy,which insurance shall be maintained by the County to provide protection for the Ditch Company against liability from claims arising out of the use of the Improvements. Such insurance must be carried in amounts not less than the liability limits specified in C.R.S. § 24-10-114(1), as it may be amended from time to time, and must contain a requirement to provide the Ditch Company with thirty (30) days advance written notice prior to cancellation or termination. Any such termination will result in a termination of the County and public's right to use the Improvements until such time as such insurance is reinstated. The County shall, upon written request from the Ditch Company, provide a certificate of insurance as verification of compliance with these requirements. 10. LIEN WAIVER IN ADVANCE. The County expressly waives, in advance, its (and its contractors' and subcontractors') rights to any lien(s) arising out of the construction of the Improvements within the Ditch easement and to obtain lien waivers, in a form acceptable to the Ditch Company, from all other laborers or materialmen. 11. BREACH /REMEDIES. If either Party initiates litigation to enforce or defend any part of this Agreement, the prevailing Party must be awarded its attorneys' fees and costs incurred therein. This Agreement does not alter the legal rights and liabilities incumbent on any of the Parties under applicable statutes and case law concerning malfunction or failure of the Ditch. 12. REIMBURSEMENT OF COSTS AS PARTIAL CONSIDERATION. As partial consideration for this Agreement and the consent to ditch modification granted, the County will reimburse the Ditch Company for all fees and costs incurred in connection with this matter upon execution of this Agreement, including drafting, review and approval of this Agreement, review of the Plans and engineering,inspections and negotiation of this Agreement. The County will have the continuing responsibility to timely pay all such additional fees and costs incurred by the Ditch Company in connection with this Agreement, including but not limited to legal, engineering, surveying and construction fees and costs. The Ditch Company will document and provide to the County copies of all applicable bills,invoices, statements, etc. for which the Ditch Company seeks reimbursement under this paragraph. The County agrees that it will reimburse the Ditch Company within thirty (30) days of a bill being presented for any fees and costs the Ditch Company incurs in connection with this Agreement. Reimbursements made to the Ditch Company after thirty (30) days will include an additional amount equal to eighteen percent(18 %)per annum or one and one-half percent(1.5%) per month. 13. BINDING AGREEMENT. This Agreement will inure to the benefit of and be binding Ditch Modification Agreement Page 6 of 8 upon the heirs, executors, administrators, successors, and assigns of the Parties. 14. ENTIRE AGREEMENT OF THE PARTIES. This Agreement constitutes the entire agreement between the Parties and supersedes all prior agreements, offers, acceptances and understanding of the Parties with respect to the subject matter hereof. All prior and contemporaneous conversations, negotiations, possible alleged agreements, representations, covenants and warranties concerning the subject matter hereof are merged herein. 15. RECORDATION. Following execution of this Agreement by the Parties, the Ditch Company may cause this Agreement to be recorded in the Pitkin County Clerk and Recorder's Office at the County's expense. 16. RECITALS. The recitals above and attached exhibits are incorporated herein. 17. COUNTERPARTS. This Agreement may be executed in multiple counterpart signatures by the Parties, which taken together will constitute the Agreement between the Parties. Electronically generated (fax, scan, copy, etc.), signed copies of this Consent shall be treated as originals. WHEREFORE, the Parties indicate their acceptance of the terms and conditions of this Agreement by affixing their respective signatures as follows. [This space intentionally left blank—signatures follow] Ditch Modification Agreement Page 8 of 8 THE COUNTY: BOARD OF COUNTY COMMISSIONERS OF PITKIN COUNTY, COLORADO By: n cjetiecz,v STATE OF COLORADO ) ) SS. COUNTY OF PITKIN ) n Subscribed and sworn to before me this oi$day of`,a vx.,ux, 2018 by ( c jA; C(alto( as authorized representative of Pitkin County. 1 u Witness my hand and official seal. My Commission expires: Avuy-S-( � . C r N t ry blic JANE A. ACHEY NOI„R`! PUi:LIC STAiE O. COL_C`R,,^DO NOTARYO3T67 [MY COMM SSiON E1.. R'. �i;UST 4 2T Ditch Modification Agreement Page 7of8 DITCH COMPANY: The Home Supply Ditch Company, A Colorado Non-Profit Corporation By: 7,--- — }"9. STATE OF COLORADO ) ) SS. COUNTY OF PITKIN ) 11 y by lfl/(h(lre) Jt)1.,,Sas Subscribed and sworn to before me this�7 da of � "� 2018 president of the Ditch Company. Witness my hand and official seal. 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