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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 7/6/2021 - SECOND READING OF ORDINANCE NO. 083, 2021, AUTHORI Agenda Item 6 Item # 6 Page 1 AGENDA ITEM SUMMARY July 6, 2021 City Council STAFF Keith Hanson, Real Estate Manager Ryan Malarky, Legal SUBJECT Second Reading of Ordinance No. 083, 2021, Authorizing the Conveyance of a Wastewater Easement on Larimer County Landfill Property to Larimer County. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on June 15, 2021, conveys a wastewater easement to Larimer County on the Larimer County Landfill property, which is co-owned by Larimer County (25%); the City of Loveland (25%); and the City of Fort Collins (50%). The easement is necessary for the construction of the future Larimer County Behavioral Health Facility on County -owned property directly to the south of the landfill. Approval by all three municipalities is required for the conveyance of the easement, because all three have an ownership interest in the property. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary, June 15, 2021 (w/o attachments) (PDF) 2. Ordinance No. 083, 2021 (PDF) Agenda Item 8 Item # 8 Page 1 AGENDA ITEM SUMMARY June 15, 2021 City Council STAFF Keith Hanson, Real Estate Manager Ryan Malarky, Legal SUBJECT First Reading of Ordinance No. 083, 2021, Authorizing the Conveyance of a Wastewater Easement on Larimer County Landfill Property to Larimer County. EXECUTIVE SUMMARY The purpose of this item is to convey a wastewater easement to Larimer County on the Larimer County Landfill property, which is co-owned by Larimer County (25%); the City of Loveland (25%); and the City of Fort Collins (50%). The easement is necessary for the construction of the future Larimer County Behavioral Health Facility on County-owned property directly to the south of the landfill. Approval by all three municipalities is required for the conveyance of the easement, because all three have an ownership interest in the property. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION The proposed conveyance of the easement to Larimer County would allow the County to install wastewater piping improvements to serve the future Behavioral Health Facility the County is constructing on County-owned land at the northwest corner of Taft Hill Road and Trilby Road in unincorporated Larimer County. Staff is recommending the easement be conveyed to the County at no cost. Although the easement area is roughly one acre in total size, because it will be used for underground pipes and is adjacent to Taft Hill Road, there is no adverse effect to the utility of the landfill property, and therefore the fair market value of the easement is minimal. Underground easements that do not impact the utility of the property (i.e., do not run through the middle of the property restricting what can be built) are generally valued at a small fraction of the overall value per square foot of the property. Staff estimates the fair market value of the easement at approximately $9,000, which would make the City’s 50% share $4,500. However, staff recommends no financial compensation be due to the City because the conveyance of the easement serves a bona fide public purpose and meets all five criteria as outlined in Section 23-114 of the City Code. Section 23-114 requires that any conveyance of City real property interests be for an amount equal to or greater than fair market value, except where Council determines that such conveyance serves a bona fide public purpose consistent with specific criteria. The easement will be used for further construction of the new Behavioral Health Facility, which will be a regional facility intended to make services more accessible and affordable to residents within Larimer County, including residents in the City of Fort Collins. Additionally, this action supports Council’s goal of collaborating with other agencies to address poverty issues and other identified high-priority human service needs, and to make homelessness rare, short-lived and non-recurring. The financial support the City will be providing by a below-market disposition of the easement will be leveraged with other funding provided by the County for the construction of the new facility. There is no direct financial benefit to any private person or entity ATTACHMENT 1 Agenda Item 8 Item # 8 Page 2 by conveying the easement, and conveyance of the property for less than fair market value will not interfere with current City projects, work programs, workload schedules or divert resources needed for primary City functions and responsibilities. CITY FINANCIAL IMPACTS The only financial impact to the City would be the waiver of $4,500 in fair market value for the City’s partial ownership of the property to be burdened by the easement for Larimer County. Larimer County is responsible for all construction and maintenance costs associated with the wastewater improvements. BOARD / COMMISSION RECOMMENDATION Representatives from Larimer County and the City of Loveland have approved the easement as to form and will be seeking approval of the easement from their Board of County Commissioners and City Manager, respectively. Approval by all three municipalities is required for the conveyance and recording of the easement. ATTACHMENTS 1. Location Map (PDF) -1- ORDINANCE NO. 083, 2021 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE CONVEYANCE OF A WASTEWATER EASEMENT ON LARIMER COUNTY LANDFILL PROPERTY TO LARIMER COUNTY WHEREAS, the City of Fort Collins (the “City”), the City of Loveland (“Loveland”) and Larimer County (the “County”) jointly own the property located in Fort Colins known as the Larimer County Landfill and managed by the County (the “Property”); and WHEREAS, the City owns a 50% interest in the Property, Loveland owns a 25% interest, and the County owns a 25% interest; and WHEREAS, the County has requested an easement to install a new wastewater service line to serve the future Larimer County Behavioral Health Facility (the “Facility”), a 58,000 square foot mental health crisis center the County plans to construct on land it owns south of the Property at the northwest corner of Taft Hill Road and Trilby Road in unincorporated Larimer County; and WHEREAS, the proposed easement is 30 feet wide, approximately 1.022 acres in size and runs in a north-south direction along the eastern edge of the Property, the location of the proposed easement being described more particularly on Exhibit “A”, attached and incorporated herein by this reference (the “Easement”); and WHEREAS, the City, the County and Loveland are parties to an Intergovernmental Agreement Related to Corrective Measures at the Landfill, dated December 29, 2020, which established a framework for their mutual commitments and responsibilities related to remediation of environmental contamination at and from the Landfill; and WHEREAS, the parties have negotiated mutually agreeable terms in an Easement agreement to address said environmental conditions, including that construction be conducted in compliance with all federal, state and local environmental permitting requirements, and that the County will be solely responsible for any increased costs of environmental remediation work required by the IGA that result from the County’s construction, operation and existence of the wastewater service line in the Easement; and WHEREAS, the approximate fair market value of the Easement based on the City’s 50% ownership interest in the Property is approximately $4,500; and WHEREAS, City staff is recommending that the City not charge the County for the Easement as the conveyance of the property interest serves a bona fide public purpose under Section 23-114 of the City Code because: • The use to which the Easement will be put promotes the health, safety and general welfare and benefits a significant segment of the citizens of Fort Collins by assisting in the construction of the Facility, which is intended to make mental health services more accessible and affordable for residents within Larimer County, including residents within the City; -2- • The Council supports the goal of collaborating within other agencies to address poverty issues and other identified high-priority human service needs, including mental health care, which may make homelessness rare, short-lived and non-recurring; • The financial support provided by the City through the below-market disposition of the Easement will be leveraged by Loveland also granting the easement for no charge and by the County funding the construction of the Facility; • The conveyance of the Easement will not result in any direct financial benefit to any private person or entity; and • Conveying the Easement for less than fair market value will not interfere with current City projects or programs, hinder workload schedules or divert resources needed for primary City functions or responsibilities; and WHEREAS, although the County is a part owner of the Property, the City’s consent to the Easement is necessary for installation of the proposed wastewater service line because the line is not for the benefit of the Landfill but instead is an encumbrance on the City’ interest in the Property; and WHEREAS, Section 23-111(a) of the City Code authorizes the City Council to sell, convey or otherwise dispose of any interest in real property owned by the City, provided that the City Council first finds, by ordinance, that such sale or other disposition is in the best interests of the City. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That the City Council hereby finds that the City’s conveyance of the Easement to the County as provided herein serves a bona fid public purpose and is in the best interests of the City. Section 3. That the Mayor is hereby authorized to execute such documents as are necessary to convey the Easement to the County on terms and conditions consistent with this Ordinance, together with such additional terms and conditions as the City Manager, in consultation with the City Attorney, determines are necessary or appropriate to protect the interests of the City, including but not limited to, any necessary changes to the legal description of the Easement, as long as such changes do not materially increase the size or change the character of the interests to be conveyed. -3- Introduced, considered favorably on first reading, and ordered published this 15th day of June, A.D. 2021, and to be presented for final passage on the 6th day of July, A.D. 2021. __________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on this 6th day of July, A.D. 2021. __________________________________ Mayor ATTEST: _____________________________ City Clerk EXHIBIT A EXHIBIT A EXHIBIT A