Board told seller’s counsel negotiated changes to reserves contract; indemnity and damages-cap were modified

Summary

Staff informed directors that seller’s counsel and the district’s general counsel reviewed redlines to a reserves contract; the key changes involve extending indemnity from one to two years and adjusting the damages cap above industry norms. Staff asked the board to review the redlines before the next meeting.

Pueblo West staff told board members that a reserves contract returned from seller’s counsel includes material redlines and that legal counsel and the seller had reached an agreement on the revisions.

Staff said the primary substantive edits were changes to the indemnity provisions (extended from one year to two) and to the damages cap, which staff described as being adjusted above the typical industry range cited in the packet. Staff said those revisions and several minor redlines were reviewed by both seller’s counsel and the district’s general counsel and that staff wanted the board to be aware of the changes before the contract returns for formal consideration at the next meeting.

No formal motion or vote occurred during the work session; staff said the item will appear on the upcoming board meeting agenda with the redlines and counsel’s input for directors to consider.