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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 04/06/2004 - SECOND READING OF ORDINANCE NO. 034, 2004, AUTHORI ITEM NUMBER: 8 AGENDA ITEM SUMMARY DATE: April 6, 2004 FORT COLLINS CITY COUNCIL STAFF: Mark Sears SUBJECT Second Reading of Ordinance No. 034, 2004, Authorizing the Sublease to Larimer County of Portions of the Fossil Creek Reservoir Property Leased by the City from North Poudre Irrigation Company. RECOMMENDATION Staff and the Natural Resources Advisory Board recommend adoption of the Ordinance on Second Reading. EXECUTIVE SUMMARY The Natural Areas Program holds a lease on 810 acres of land and surface water rights from North Poudre Irrigation Company for Fossil Creek Reservoir. This Ordinance, which was unanimously adopted on First Reading on March 16, 2004, approves a sublease of all or a portion of that leased property to Larimer County. The sublease will allow Larimer County Open Lands to lease,operate, maintain and manage a 150' strip (approximately 25 acres) along the south shore of the reservoir adjacent to Fossil Creek Reservoir Regional Open Space(FCRROS). FCRROS is jointly owned by the City and County,but it will be operated by Larimer County. Larimer County has completed the design of the public improvements for FCRROS,which will be constructed this spring/summer/fall and the site opened to the public late this year. ORDINANCE NO. 034, 2004 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE SUBLEASE TO LARIMER COUNTY OF PORTIONS OF THE FOSSIL CREEK RESERVOIR PROPERTY LEASED BY THE CITY FROM NORTH POUDRE IRRIGATION COMPANY WHEREAS,pursuant to the terms of a Lease Agreement, dated October 21, 2001, the City leases from North Poudre Irrigation Company the surface rights to Fossil Creek Reservoir, and certain adjacent property(collectively the "Leased Property"); and WHEREAS, on January 16, 2001, the City Council adopted on second reading Ordinance No. 3, 2001, authorizing an intergovernmental agreement between the City and Latimer County related to the joint acquisition and ownership of seven properties in the Fossil Creek Reservoir area totaling 833 acres, for an estimated total purchase price of$7.7 million, along with certain other related action; and WHEREAS, in January 2001, the City and Latimer County also entered into an intergovernmental agreement concerning the Fossil Creek Reservoir Area Properties (the "IGA"), consistent with Ordinance No. 3, 2001; and WHEREAS,on April 1,2003,the City Council approved Resolution 2003-046,authorizing the amendment of the IGA to modify certain cost sharing provisions, and an amended and restated IGA, consistent with Resolution 2003-046, was finalized by the parties; and WHEREAS,the IGA provides that certain of the properties acquired by the City and County will be managed by Latimer County as part of the Fossil Creek Reservoir Regional Open Space;and WHEREAS,City staff has determined that it will be to the mutual advantage of the City and the County for the City to sublease to the County substantial portions of the Leased Property, for day-to-day operation and management by the County, in a manner consistent with the City's tease obligations, as part of the Fossil Creek Reservoir Regional Open Space; and WHEREAS, the County has agreed to pay$2,500 to the City in exchange for the proposed sublease; and WHEREAS, City staff has negotiated with the County a Sublease Agreement, a draft of which, dated February 13, 2004, is on file in the office of the City Clerk and available for public inspection (the "Lease Agreement"); and WHEREAS, the Board of North Poudre Irrigation Company reviewed the Sublease Agreement at its meeting of February 4,2004,and authorized the sublease pursuant to its terms;and WHEREAS, the sublease to the County of the Leased Property is beneficial in that it will generate revenue and provide for ongoing use and care of the Property, and is consistent with the general intent of the parties to the IGA,which contemplated that the County would lease the Leased Property directly; and WHEREAS,pursuant to Section 23-111 of the Code of the City of Fort Collins,the Council is authorized to lease any and all interests in real property owned in the name of the City for other than utility purposes, provided that Council first finds by ordinance that the lease 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 Council hereby finds that the sublease of a portion of the Leased Property at Fossil Creek Reservoir to the County as provided herein is in the best interests of Fort Collins. Section 2. That the City Manager is hereby authorized to execute a sublease agreement in substantially the same form of the Sublease Agreement described herein, together with such additional terms and conditions as the City Manager, in consultation with the City Attorney, determines to be necessary and appropriate to protect the interests of the City,not inconsistent with the terms of this Ordinance. Introduced, considered favorably on first reading, and ordered published this 16th day of March, A.D. 2004, and to be presented for final passage on the 6th day of April, :D. 2004. Mayor ATTEST: 4L�Clerfree City Clerk ` Passed and adopted on final reading this 6th day of April, A.D. 2004. Mayor ATTEST: City Clerk ITEM NUMBER: 16 AGENDA ITEM SUMMARY DATE: March 16, 2004 FORT COLLINS CITY COUNCIL STAFF: Mark Sears SUBJECT First Reading of Ordinance No.034,2004,Authorizing the Sublease to Larimer County of Portions of the Fossil Creek Reservoir Property Leased by the City from North Poudre Irrigation Company. RECOMMENDATION copy Staff and the Natural Resources Advisory Board recommend adoption of the Ordinance on First Reading. EXECUTIVE SUMMARY The Natural Areas Program holds a lease on 810 acres of land and surface water rights from North Poudre Irrigation Company fo ossi R it. hi r ' ance approves a sublease of all or a portion of that leased pr rty to met o e lease will allow Larimer County Open Lands to lease, operate, mai m ge 150'stri approximately 25 acres) along the south shore of the reservoir adjac to Fos Cree eservoir egional Open Space (FCRROS). FCRROS is jointly owned by the City and County, but it will be operated by Larimer County. Larimer County has completed the design of the public improvements for FCRROS, which will be constructed this spring/summer/fall and the site opened to the public late this year. BACKGROUND In January 2001, the City and unt d o g ental Agreement ("IGA") with the County on the proposed F ROS, ich w 1 en in April, 2003. The IGA calls for the County to lease the rec onal ' is f th Fossil C k Reservoir from North Poudre Irrigation Company, and the ex a was e s ared equ y etween the City and the County. Certain County Commissioners wished to have boating rights as a part of the lease and with North Poudre Irrigation not willing to allow boating on the reservoir, the County Commissioners did not approve the lease. At that point the City stepped in and proceeded with the lease to avoid losing the conservation of the 810 acres. The City has been paying the full amount of the lease since that time, which started out at$40,000 per year and is currently$44,000 per year. March 16, 2004 -2- Item No. 16 The County needs this sublease to be able to build, operate and maintain three wildlife observation areas at water's edge, and maintain the land along the south shore of the reservoir adjacent to the FCRROS. County Commissioners have indicated that they are willing to pay$2,500 per year for the sublease. Although the IGA states that the County would share equally in the cost of the reservoir lease, City staff and the NRAB are comfortable with the City subleasing the 150' strip(approximately 25 acres) for$2,500, since the County will be managing and maintaining the FCRROS. The NRAB considered this ite *6,eb e ' g, recommended adoption of the Ordinance.