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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 10/05/2004 - ITEMS RELATING TO THE EPA-SUPERVISED ENVIRONMENTAL ITEM NUMBER: 8 A-B AGENDA ITEM SUMMARY DATE: October 5, 2004 FORT COLLINS CITY COUNCIL STAFF: Greg Byrne SUBJECT Items Relating to the EPA-supervised Environmental Remediation at the Poudre River and Northside Aztlan Community Center Property. RECOMMENDATION Staff recommends adoption of the Ordinances on Second Reading. EXECUTIVE SUMMARY A. Second Reading of Ordinance No. 146, 2004, Authorizing the Conveyance of Permanent, Non-Exclusive Easement Interests to Public Service Company of Colorado and the United States Environmental Protection Agency for Environmental Remediation Activities and Facilities on the Northside Aztlan Community Center Property. B. Second Reading of Ordinance No. 147, 2004, Authorizing the Conveyance of an Easement on the Gustav Swanson Natural Area to North Weld County Water District for Relocation of a Water Line From Its Existing Location on the Natural Area Ordinance No. 146,2004,which was unanimously adopted on First Reading on September 21,2004, conveys permanent easements to Public Service Company of Colorado and the U.S.Environmental Protection Agency. This provides an area for construction and operation of remediation structures and equipment. Ordinance No. 147,2004,which was also unanimously adopted on First Reading on September 21, 2004,provides an easement across a City-owned natural area, allowing realignment of the existing North Weld County Water District water line. ORDINANCE NO. 146, 2004 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE CONVEYANCE OF PERMANENT, NON-EXCLUSIVE EASEMENT INTERESTS TO PUBLIC SERVICE COMPANY OF COLORADO AND THE UNITED STATES ENVIRONMENTAL PROTECTION AGENCY FOR ENVIRONMENTAL REMEDIATION ACTIVITIES AND FACILITIES ON THE NORTHSIDE AZTLAN COMMUNITY CENTER PROPERTY WHEREAS, the City of Fort Collins (the "City") is the owner of various properties to the north, south and under the Poudre River between College Avenue and Linden Street, including Gustav Swanson Natural Area (the "Natural Area") to the north of the River, and the Northside Aztlan Center property, including the property on which the United Way Building is situated (collectively referred to as the "Aztlan Property") to the south of the River; and WHEREAS, pursuant to various licenses to enter granted by the City Manager under the authority granted to him in Resolution 2003-119, on November 4, 2003, Public Service Company of Colorado ("PSCo") and the United States Environmental Protection Agency ("EPA") have conducted extensive investigation of a seep of a black, oily substance characterized as coal tar in the Poudre River in the vicinity of the Aztlan Property identified by the City in late 2002, and the source and extent of related contamination, and have carried out certain initial remediation of the contamination; and WHEREAS, in light of the investigations and remedial activities completed to date, PSCo and EPA are in the process of developing a remedial action plan to be carried out in the Poudre River and on adjacent Aztlan Property; and WHEREAS, the detailed plans for the investigation and remediation work to be completed, including necessary backfill and restoration of the affected area upon completion of that work, as currently anticipated, are expected to include a 700 foot vertical wall in the south bank of the Poudre River, a small treatment building in which water collected in the wall structure will be treated, and other minor structures to support the operation and maintenance of these facilities and ongoing monitoring of the area; and WHEREAS, in order to install, operate, maintain and access the remedial facilities, PSCo has requested a permanent nonexclusive easement on and under the Aztlan Property, in the location generally described and shown on Exhibit "A", attached hereto and incorporated herein by this reference (the "PSCo Easement"); and WHEREAS, in order to allow for ongoing monitoring and supervision of the activities of PSCo, and to provide for such access as may be needed to ensure proper implementation of the remediation work, EPA has requested that the City grant to EPA an easement for such activities on the Aztlan Property(the"EPA Easement"); and WHEREAS, prior to execution of final easements, the remedial action plan and restoration plan will be subject to review and approval by the City Manager in order to ensure that no avoidable adverse impacts upon the Natural Area or Aztlan Property or other City improvements will result from the activities on those properties; and WHEREAS, City staff has made an approximate value finding for the easements, and has found the value of the easements to total approximately$705,000; and WHEREAS, in view of the anticipated benefits to the City and to the general public of the environmental cleanup activities that are proposed to occur in the river and near and on the Aztlan Property, which will be facilitated by the easements authorized hereunder, City staff has recommended that the City not require the payment of consideration for the easements authorized hereunder; and WHEREAS, as a condition of the PSCo Easement and the EPA Easement, completion of a restoration plan satisfactory to the City will be required after installation of the remediation facilities; and WHEREAS, Section 23-111 of the City Code provides that the City Council is authorized to sell, convey, or otherwise dispose of real property owned by the City, provided the Council first finds by ordinance that any sale or other disposition of real property owned by the City is in the best interest of the City of Fort Collins. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the conveyance of the PSCo Easement and the Permanent Easement, as set forth herein, will be in the best interest of the City of Fort Collins. Section 2. That the Mayor is hereby authorized to execute deeds conveying the PSCo Easement and the EPA Easement, subject to such additional terms and conditions not inconsistent with this Ordinance as the City Manager, in consultation with the City Attorney, determines to be necessary or appropriate to protect the interests of the City, provided that the remedial action plan, restoration plan and related settlement terns are acceptable to the City Manager. Introduced, considered favorably on first reading, and ordered published this 21st day of September, A.D. 2004, and to be presented for final passage on the 5th day of October, A.D. 2004. e-7;0 - , Mayor ATTEST: ILA City Clerk Passed and adopted on final reading this 5th day of October, A.D. 2004. Mayor ATTEST: City Clerk ORDINANCE NO. 147, 2004 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE CONVEYANCE OF NON-EXCLUSIVE EASEMENT INTERESTS FOR THE RELOCATION OF A WATERLINE BY THE NORTH WELD COUNTY WATER DISTRICT TO A NEW LOCATION ON THE GUSTAV SWANSON NATURAL AREA WHEREAS, the City of Fort Collins owns certain real property located in the city and in Larimer County, Colorado, known as the Gustav Swanson Natural Area (the "Natural Area Property"); and WHEREAS, the main water transmission line of the North Weld County Water District ("North Weld") is located within the south bank of the Cache La Poudre River along the City's Northside Aztlan Community Center property(the "Aztlan Property"), and in its current location turns north to cross the river and the Natural Area Property; and WHEREAS, the existing North Weld waterline was in place on the Natural Area Property when the City acquired it, and appears to have been located in an existing easement (the "Existing Easement"), although the exact details of the prior grant are unclear; and WHEREAS, in connection with the proposed implementation of environmental cleanup activities in the river and on the Aztlan Property, North Weld has been asked to relocate its existing waterline from its current location along the south bank of the Cache La Poudre River to a location further south on the Aztlan Property, and to shift the river crossing of the waterline further downstream from its current location; and WHEREAS, in order to install the waterline in the new location, North Weld has requested a nonexclusive temporary construction easement for three months and a 30-foot wide permanent nonexclusive easement on and under the Natural Area Property, in the location on the Natural Area Property described and shown on Exhibit "A", attached hereto, consisting of 5 pages and incorporated herein by this reference (the "Temporary Construction Easement" and the "Permanent Easement", respectively); and WHEREAS, in exchange for the grant of the Temporary Construction Easement and the Permanent Easement, North Weld has agreed to vacate the Existing Easement no later than 30 days after completion of the relocation of the waterline; and WHEREAS, on September 21, 2004, the City Council adopted on second reading Ordinance No. 140, 2004, authorizing temporary and permanent easements on the Aztlan Property for the relocation of the waterline; and WHEREAS, City staff has reviewed the location of the proposed Temporary Construction Easement and Permanent Easement, and has determined that the new waterline location will not significantly impact or impair the natural resource values or natural areas program use of the Natural Area Property; and WHEREAS, City staff has made an approximate value finding for the easements, and has found the value of the easements to total approximately$185,000; and WHEREAS, in view of the anticipated benefits to the City and to the general public of the environmental cleanup activities that are proposed to occur in the river and near and on the Aztlan Property, which will be facilitated by the relocation of the waterline easements authorized hereunder, City staff has recommended that the City not require the payment of consideration for the easements authorized hereunder; and WHEREAS, as a condition of the Temporary Construction Easement and the Permanent Easement, regarding, reseeding and other restoration of the areas disturbed by the installation of the waterline will be required; and WHEREAS, Section 23-111 of the City Code provides that the City Council is authorized to sell, convey, or otherwise dispose of real property owned by the City, provided the Council first finds by ordinance that any sale or other disposition of real property owned by the City is in the best interest of the City of Fort Collins. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the conveyance of the Temporary Construction Easement and the Permanent Easement, as set forth herein, will be in the best interest of the City of Fort Collins. Section 2. That the Mayor is hereby authorized to execute the Temporary Easement Agreement and the Permanent Easement Agreement, together with such additional terms and conditions not inconsistent with this Ordinance as the City Manager, in consultation with the City Attorney, determines to be necessary or appropriate to protect the interests of the City. Introduced, considered favorably on first reading, and ordered published this 21 st day of September, A.D. 2004, and to be presented for final passage on the 5th day of October, A.D. 2004. Mayor ATTEST: City Clerk Passed and adopted on final reading this 5th day of October, A.D. 2004. Mayor ATTEST: City Clerk ITEM NUMBER: 9 A-C AGENDA ITEM SUMMARY DATE: September 21, 2004 FORT COLLINS CITY COUNCIL STAFF: Greg Byrne SUBJECT Items Relating to the EPA-supe se Pe on t v' n the Poudre River and Northside Aztlan Community Center Pr erty. RECOMMENDATION Staff recommends adoption of the Ordinances. Staff recommends granting the easements without compensation. FINANCIAL IMPACT Staff is recommending that th ity not ff arge n IL on a easement,in order to facilitate the environmental cleanup wo in and ng t dre River he approximate value finding for all of the easements, if the City a to a nsati r them, is an estimated total of $968,285. EXECUTIVE SUMMARY A. First Reading of Ordinance No. 146,2004,Authorizing the Conveyance of Permanent,Non- Exclusive Easement Interests to Public Service Company of Colorado and the United States Environmental Protection A ency for Environmental Remediation Activities and Facilities on the Northside Aztla om y to ro ri B. First Reading of Ordin e N 20 thorizin a Conveyance of an Easement on the Gustav Swanson Natura Area to o eld County Water District for Relocation of a Water Line From Its Existing Location on the Natural Area C. Second Reading of Ordinance No.140,2004,Authorizing the Conveyance of Nonexclusive Easement Interests for the Relocation of a Waterline by the North Weld County Water District to a New Location on the Northside Aztlan Community Center Property. As discussed at the September 7 City Council meeting,when Ordinance No. 140,2004 was adopted on First Reading,the cooperation with other stakeholders in the cleanup of the contamination under the Northside Aztlan Center site will require several Council actions, including a variety of easements. September 21, 2004 -2- Item No. 9 A-C Item A would convey permanent easements to Public Service Company of Colorado and the U.S. Environmental Protection Agency. This provides an area for construction and operation of remediation structures and equipment. Item B provides an easement across a City-owned natural area,allowing realignment of the existing North Weld County Water District water line. Item Cis Second Reading of Ordi c No. 20 uth ' 'n easement across the Northside Aztlan Center site for the real men o at s e o d unty Water District water line. Ordinance No. 140, 2004 wa dopted anim 1 first ding on September 7, 2004. BACKGROUND On September 7,staff introduced the City Council to the broad outline of a remediation plan for the contamination reaching the Poudre River from the decommissioned coal gasification plant on the south side of Willow Street. The City of Fort Collins participated in the cleanup of one of the gas holders in 1996, as part of the railroad relocation project. A black,oily substance charCaion s al t h le Y lic Service Company site, and has created a plume of conta er the o e nter property, and has entered the Poudre River. The conth d ughnd cracks in the bedrock and emerged in the river bottom,where it is carried downstream by the current. In low flow conditions, the material may be seen lying on the river bottom; it releases an oily sheen on the water surface. In order to prevent the contamination from continuing to enter the river,and to clean the groundwater under the site, the Environmental Protection Agency, working with Public Service Company, has made significant progress in developing a remediation plan. As currently planned, the cleanup involves two basic elements: • Excavate contamina allu an c P dre River channel,dispose of the contamination at appro faci y eco ct the river channel. This work must take place durin w on o , so the er bed will be accessible for the excavation work. As happened last year during investigation, the low flow water will be pumped and piped around the construction area, and released downstream back into the Poudre River. • Install a barrier wall on the south bank of the river to intercept contaminated ground water. The barrier wall,about 600 feet in length,will be below grade,with a system of pipes to bring contaminated ground water to the surface, where it will be treated and released to the Poudre River. Prior to construction of a permanent building for the treatment equipment, EPA and PSCo propose to operate in a temporary facility for a year,monitoring the volume and condition of inflows and outflows. Then, a permanent facility will be designed and installed. At this point, it is anticipated that this building will be smaller than a garage. September 21, 2004 -3- Item No. 9 A-C This work,as currently planned,is generally shown on the pages immediately following this Agenda Item Summary. To carry out the remediation plan,PSCo and EPA employees will require continuous access to the site to operate and maintain the facilities,and to monitor the condition of water flowing into and out of the systems. Specific legal descriptions of the location of facilities to be installed will be available for Second Reading of Ordinanc o. 64604* Ift The bank of the Poudre River ill bedP14W co ction. On the south side of the Poudre River, where the barrier wall is to be installed,the existing bank of the river is steep and characterized by riprap,non-native vegetation, and refuse from the old city dump. The dump, operated in the early part of the 20th century, was located right up to the bank of the river. This steep bank is to be excavated and laid back to a 2:1 slope, with a bench permitting the installation of the barrier wall and water treatment facility. PSCo will be responsible for restoring the bank with vegetation as part of the project. City staff members from CLRS, Utilities, and CPES are cooperating with EDAW (a subcontractor working on the project for PSCo) on th s, . On the north side of the Po a Rive ome P n oft soil and bedrock will disturb the river bank in the Gustav Swanso atura a. d the investigation phase revealed smaller amounts in the bedrock there. The bank on the north side of the river is in better condition, not as steep, and the contamination is less extensive. Nevertheless, some bank disturbance and restoration will be inevitable. As this AIS goes to print, the NRAB has not yet reviewed the easements or restoration plan. The NRAB is scheduled to consider this item at its September 15 meeting,prior to the Council meeting, and staff will report to the Council regarding the NRAB discussion and recommendations in the Council's "Read Before" packet to 1, J. At the last meeting,Council a ed whet r or n t installati of the new water line through the old city dump site was trading ob a er. Up view of the known information about the contamination, staff does not believe this will result. The water line will be relatively shallow compared to the contamination, and the water table. Staff does not expect that any coal tar will be encountered during the relocation. Nor does staff expect the new water line to provide a preferential pathway for the contamination to escape the area. In order to prevent such outcomes, the EPA will have on-site monitoring during the construction, as will the City. This will provide immediate response if coal tar is found to be present. It should be noted that the construction will likely be through non-hazardous debris from the old dump. Some material will probably need to be hauled to the Larimer County Landfill, and be replaced with engineered fill around the water line. September 21, 2004 -4- Item No. 9 A-C As noted on September 7,the City of Fort Collins is expected to become a party to an Administrative Order on Consent(AOC),along with EPA,Public Service Company,and Schrader Oil. Negotiations continue among the parties, and although there are still a number of issues under discussion, staff remains hopeful that a mutually agreeable resolution can be reached for presentation to the City Council in the near future. Assuming those discussions proceed as hoped, staff expects to present a related ordinance for first reading on October 5th. Staff recognizes that there are cosgAAW be its a ate t ' remediation program. On the cost side of the ledger, the Cit f Fo ins e g u d convey property interests at no cost;to accept certain future li itations the pro y;to accept disturbance to a City- owned natural area; to particip wi a ' ni ' n ount of aff and in-kind contributions; and to bear certain risk of future incremental costs in City capital projects. On the benefit side, the contamination under City property at the Northside Aztlan Center is now well defined, and there is an active program to remediate the most pressing environmental damage, release of the contamination to the Poudre River. Staff has also been able to reach a much higher level of comfort about City plans to reconstruct the Northside Aztlan Community Center on the site. Significantly,EPA has taken the position that based on current information, the City has a defense to liability as a"contiguous property owner". While the other parties involved have not conceded that this defense applies, they e t ' s th t cost of the remedial action or assist in repaying EPA's resp a costs, the e o tng settlement discussions. On balance, staff concludes tha City op n in ems proposed is in the public's interest, assuming that the negotiation of an overall resolution proceeds as hoped.