Loading...
HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 01/18/2022 - SECOND READING OF ORDINANCE NO. 006, 2022, AUTHORI Agenda Item 6 Item # 6 Page 1 AGENDA ITEM SUMMARY January 18, 2022 City Council STAFF Greg Oakes, Project Manager Kurt Friesen, Director of Park Planning & Development Ingrid Decker, Legal SUBJECT Second Reading of Ordinance No. 006, 2022, Authorizing Conveyance of an Easement on City Right-of-Way to Hartshorn Waterworks, LLC to Relocate Irrigation Lines Off Traverse Park. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on January 4, 2022, authorizes the conveyance to Hartshorn Waterworks, LLC (“Hartshorn”) of an easement in a City-owned right-of-way for relocated irrigation lines. The City is developing Traverse Park. Hartshorn owns certain irrigation lines that traverse the park site and provide non-potable water to the surrounding neighborhood. Pursuant to a November 16, 2021, agreement that addresses various aspects of the park site, the City and Hartshorn agreed to the relocation of these irrigation lines from the park site and into the City -owned right-of-way contingent upon (1) the City granting Hartshorn an easement for the relocated irrigation lines and (2) the City entering into certain agreements with the owners of the lots adjacent to the right-of-way. The City would not convey the proposed easement to Hartshorn until the City has acquired these agreements from the adjacent lot owners. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary, January 4, 2022 (w/o attachments) (PDF) 2. Ordinance No. 006, 2022 (PDF) Agenda Item 5 Item # 5 Page 1 AGENDA ITEM SUMMARY January 4, 2022 City Council STAFF Greg Oakes, Project Manager Kurt Friesen, Director of Park Planning & Development Ingrid Decker, Legal SUBJECT First Reading of Ordinance No. 006, 2022, Authorizing Conveyance of an Easement on City Right-of-Way to Hartshorn Waterworks, LLC to Relocate Irrigation Lines Off Traverse Park. EXECUTIVE SUMMARY The purpose of this item is to authorize the conveyance to Hartshorn Waterworks, LLC (“Hartshorn”) of an easement in a City-owned right-of-way for relocated irrigation lines. The City is developing Traverse Park. Hartshorn owns certain irrigation lines that traverse the park site and provide non-potable water to the surrounding neighborhood. Pursuant to a November 16, 2021, agreement that addresses various aspects of the park site, the City and Hartshorn agreed to the relocation of these irrigation lines from the park site and into the City-owned right-of-way contingent upon (1) the City granting Hartshorn an easement for the relocated irrigation lines and (2) the City entering into certain agreements with the owners of the lots adjacent to the right- of-way. The City would not convey the proposed easement to Hartshorn until the City has acquired these agreements from the adjacent lot owners. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION Traverse Park is located at 775 Greenfields Drive adjacent to East Vine Drive and is situated within the Trail Head Subdivision. This new 5.6-acre neighborhood park was opened to the public on November 18, 2021 and has been very well received by the surrounding neighborhoods and the greater community. Hartshorn owns a nearby irrigation well that provides non-potable water to the neighborhood immediately surrounding the park. The City initially planned to irrigate the park with water from the well and enter into a January 23, 2018, water service agreement with Hartshorn (Water Agreement). However, the City subsequently determined that groundwater from the well is not a viable irrigation water supply for the park due to water quality issues with the groundwater and its effect on grass, shrub, and tree growth. The City is instead irrigating the park with water from the East Larimer County Water District and has decided to discontinue purchasing water under the Water Agreement. During the planning and design phase, the City identified that Hartshorn has existing irrigation lines within the park site. These irrigation lines create long-term issues for the park site as an encumbrance, in part, because irrigation lines periodically require maintenance that may disrupt the park. There were also questions raised regarding the location of these irrigation lines with respect to the locations of easements. In working with Hartshorn, subsequent investigations identified that Hartshorn’s irrigation lines could be relocated off the park site and into an adjacent City-owned right-of-way. Such a relocation leaves Hartshorn and its City-resident customers whole and benefits the City by not having Hartshorn’s lines be located on the park site. (Attachment ATTACHMENT 1 COPY Agenda Item 5 Item # 5 Page 2 1) To address these and related issues associated with the park site, including early termination of the water agreement, the City and Hartshorn negotiated over several months and subsequently entered into a November 16, 2021, agreement. (Attachment 2) The settlement agreement is contingent upon the City, on or before February 18, 2022: (1) granting Hartshorn a permanent easement for the relocated lines, and (2) entering into agreements with the residential lot owners (4 total) adjacent to the easement area agreeing that if the City’s adjacent right of way is ever formally vacated by the City, the title to such property that would be vested in the adjacent lot owner will be subject to Hartshorn's easement. The City will not convey the proposed easement to Hartshorn if the City cannot acquire these agreements from the adjacent lot owners. CITY FINANCIAL IMPACTS Under the settlement agreement, the City has agreed to pay the total costs to relocate the irrigation lines. The cost of this work is approximately $21,000 and will be performed by Korby Landscape, an on-call landscape contractor for the City. Termination of the water agreement, which would otherwise run through December 31, 2030, will eliminate uncertainty and potential financial liability for the City to Hartshorn’s claim the City is obligated to continue purchasing water under the water agreement. Under the water agreement, the City has previously been purchasing irrigation water for the park at about $6,000 per year. Early in the negotiations, Hartshorn indicated its position that it was entitled to a termination fee of $30,000 to offset its claimed loss of anticipated income. The settlement agreement results in the City not paying any termination fee to Hartshorn and in Hartshorn releasing and waiving any legal claims it may have against the City under the water agreement. ATTACHMENTS 1. Proposed Irrigation Relocation (PDF) 2. Hartshorn Waterworks Agreement (PDF) COPY -1- ORDINANCE NO. 006, 2022 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING CONVEYANCE OF AN EASEMENT ON CITY RIGHT-OF-WAY TO HARTSHORN WATERWORKS, LLC TO RELOCATE IRRIGATION LINES OFF TRAVERSE PARK WHEREAS, the City is the owner of a parcel of land in northeast Fort Collins called Traverse Park (the “Property”); and WHEREAS, the City purchased the majority of the Property in 2005 from the developer of the Trail Head subdivision and allowed the developer to install irrigation lines and irrigate grass on the Property while the subdivision was being developed, so that the Property could serve as a neighborhood amenity until the park could be developed; and WHEREAS, the City purchased the remaining portion of the Property in 2016 with some irrigation lines already installed on it as well; and WHEREAS, some of these irrigation lines, owned by Hartshorn Waterworks, LLC (“Hartshorn”), also provide non-potable irrigation water to the surrounding neighborhood; and WHEREAS, recently, during the planning and design phase for development of Traverse Park, City staff realized that the irrigation lines were not all within designated easements, and that their location would interfere with development and future maintenance of the park; and WHEREAS, City staff is recommending that Hartshorn’s irrigation lines be abandoned in- place on the Property and that new irrigation lines be installed in a tree lawn area that is part of the City-owned road right-of-way for Roaring Creek Drive so that Hartshorn can continue to provide irrigation water to the surrounding neighborhood using the new lines; and WHEREAS, to accomplish this, because the irrigation lines are privately owned, the City would have to grant Hartshorn an easement to place the lines on public property; and WHEREAS the proposed easement is more particularly described on Exhibit “A”, attached and incorporated herein by this reference (the “Easement”); and WHEREAS, as part of a larger proposed settlement with Hartshorn regarding termination by the City of a water services agreement with Hartshorn (the “Water Agreement”), as set forth in an agreement dated November 16, 2021 (the “Settlement Agreement”), Hartshorn would abandon its rights to the irrigation lines currently located on the Property once the Easement is in place and the new irrigation lines installed; and WHEREAS, under the Settlement Agreement the City would install the new irrigation lines in the Easement at a cost of approximately $21,000; and WHEREAS, under Colorado law, if a public road right-of-way is vacated, ownership of the land vests in the adjacent property owners; and -2- WHEREAS, while it is very unlikely the City would ever vacate the public rights-of-way in the Trail Head neighborhood, the City intends to protect Hartshorn’s rights in the proposed Easement within the right-of-way by seeking agreements from the owners of four properties adjacent to the Easement that if the right-of-way is ever vacated, they would take title to the land subject to Hartshorn’s rights in the Easement; and WHEREAS, the City would not convey the Easement until an agreement from each of the adjacent property owners has been secured; and WHEREAS, City staff is recommending that the City not charge Hartshorn for the Easement because: (1) the Easement, totaling approximately 1,535 square feet, is smaller in area than the current area on the Property encumbered by the irrigation lines that Hartshorn will abandon (approximately 6,756 square feet), providing a net benefit to the City; and (2) conveyance of the Easement described herein, subject to City Council approval, is part of the Settlement Agreement that provides various benefits to the City including savings of approximately $30,000 from termination of the Water Agreement; and WHEREAS, City staff has determined that the value to the City of this solution exceeds the value of the Easement, and the Council agrees with this conclusion; and WHEREAS, Section 23-111(a) of the City Code authorizes the City council to sell, convey or otherwise dispose of any and all interests in real property owned in the name of 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 conveyance of the Easement as described herein is in the best interests of the City. Section 3. That, following the City’s receipt of executed agreements from the owner of each property adjacent to the location of the proposed Easement, the Mayor is authorized to execute such documents as are necessary to convey the Easement to Hartshorn 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 or effectuate the purposes of this Ordinance, including and necessary changes to the legal description of the Easement, as long as such changes do not materially increase the size or change the purpose of the interests to be conveyed. -3- Introduced, considered favorably on first reading, and ordered published this 4th day of January, A.D. 2022 and to be presented for final passage on the 18th day of January, A.D. 2022. __________________________________ Mayor ATTEST: _____________________________ Interim City Clerk Passed and adopted on final reading on this 18th day of January, A.D. 2022. __________________________________ Mayor ATTEST: _____________________________ City Clerk EXHIBIT A EXHIBIT A EXHIBIT A