HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 06/06/2006 - FIRST READING OF ORDINANCE NO. 091, 2006, APPROPRI ITEM NUMBER: 17
AGENDA ITEM SUMMARY DATE: June 6, 2006
FORT COLLINS CITY COUNCIL STAFF: Ken Mannon
Steve Seefeld
SUBJECT
First Reading of Ordinance No. 091, 2006, Appropriating Unanticipated Revenue in the Capital
Projects Fund-Willow Street Environmental Remediation Project and Northside Aztlan Community
Center Replacement Project to be Used for Environmental Site Mitigation in the Vicinity of Willow
Street.
RECOMMENDATION
Staff recommends adoption of this Ordinance on First Reading.
EXECUTIVE SUMMARY
This Ordinance appropriates $200,000 in unanticipated revenue in the Capital Projects Fund -
Willow Street Environmental Remediation capital project, in the form of a payment from Public
Service Company of Colorado, and up to $50,000 in the Northside Aztlan Community Center
Replacement Project in the form of a payment from Schrader Oil Company of Colorado. The
payment will help offset some of the City's costs in complying with Environmental Protection
Agency requirements to mitigate contamination and take reasonable steps required in connection
with contamination that passes across and under Willow Street and the Northside Aztlan Community
Center site. The payment from Schrader is designated for design and construction of a passive vapor
barrier/venting system for the Northside Aztlan Community Center.
BACKGROUND
The Environmental Protection Agency ("EPA"), Region VIII, negotiated with Xcel Energy's
Colorado subsidiary, Public Service Company of Colorado ("PSCo"), to plan and design
environmental clean-up activities to remove contaminated sediment and bedrock and to operate on
the site to intercept future subsurface contamination approaching the Poudre River. The
contamination has been determined to have originated from the Poudre Valley Gas manufactured
gas plant that once operated on property south of Willow Street and now owned by Schrader Oil
Company ("Schrader"). The contamination passes across and under City-owned property, and
enters the Poudre River.
The EPA, PSCo, Schrader and the City of Fort Collins entered into an Administrative Order on
Consent ("AOC") in November 2004, which was intended to allocate responsibility for cleanup
costs and outline the parties' future responsibilities and commitments related to the environmental
condition of the River,the City's Northside Aztlan Community Center property and the general area.
June 6, 2006 -2- Item No. 17
The AOC includes language intended to protect the City from certain claims for cost recovery or
contribution,and from being required to contribute to the initial costs of the environmental cleanup,
other than through the cooperation and property access on affected City property. It also requires
that all parties owning property affected by the identified contamination, record against the title of
their respective properties, an environmental covenant limiting activities and use of the properties
so as to avoid any disruption of the identified contamination that will remain in place after the
remediation activities.
The AOC required PSCo to a the City the amount of$200 000 which was a negotiated amount
q PY Y g
intended to offset some of the City's costs to take reasonable steps required in the AOC to manage
and mitigate environmental conditions across and under Willow Street, the Northside Aztlan
Community Center property and in this vicinity. These reasonable steps will be required for projects
such as the new Community Center, utilities and street improvements in Willow Street, and other
City facilities in and around the area of contamination. The City has the discretion to use these
funds as it determines appropriate. Staff is recommending that the funds be set aside in anticipation
of environmental costs expected to be incurred in the Willow Street area. If the funds are reserved
for the purposes noted above,the rate of depletion of the funds will depend upon the conditions the
City encounters as it proceeds with projects in the area.
In addition,the AOC required Schrader to pay to the City the sum of$1 per square foot of building
footprint, up to a maximum of $50,000, for design and construction of a passive vapor
barrier/venting system for the Northside Aztlan Community Center. The AOC required that the
system be designed and constructed in accordance with specifications set out in the Appendix K to
the AOC; those specifications have been incorporated into the design of the system.
ORDINANCE NO. 091, 2006
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING UNANTICIPATED REVENUE IN THE
CAPITAL PROJECTS FUND WILLOW STREET ENVIRONMENTAL
REMEDIATION PROJECT AND NORTHSIDE AZTLAN COMMUNITY
CENTER REPLACEMENT PROJECT TO BE USED FOR ENVIRONMENTAL
SITE MITIGATION IN THE VICINITY OF WILLOW STREET
WHEREAS, subsurface contamination has been identified, originating from the site of a
former manufactured gas plant (Poudre Valley Gas), that once operated on property south of
Willow Street and now owned by Schrader Oil Company; and
WHEREAS, the aforementioned contamination passes across and under City-owned
property, including the Northside Aztlan Community Center site, and in the general vicinity of
Willow Street, and enters the Poudre River; and
WHEREAS, the Environmental Protection Agency (the "EPA"), Region VIII, has
negotiated with Xcel Energy's subsidiary, Public Service Company of Colorado ("PSCo"), to
plan and design environmental cleanup activities to remove contaminated sediment and bedrock
and to operate on the site into the future ; and
WHEREAS, the EPA together with PSCo, Schrader Oil Company and the City of Fort
Collins entered into an Administrative Order on Consent (an "AOC") in November, 2004, with
the intent to allocate responsibility for cleanup costs and outline the parties' future
responsibilities and commitments related to the environmental condition of the river, the City's
Northside Aztlan Community Center, an the general area; and
WHEREAS, in accordance with the terms of the AOC, PSCo paid the City the sum of
$200,000, which is a negotiated amount intended to offset some of the City's costs to take
reasonable steps required in the AOC to manage and mitigate environmental conditions across
and under Willow Street and the Northside Aztlan Community Center property; and
WHEREAS, additionally, the terms of the AOC require Schrader Oil Company to pay
the City the sum of $1 per square foot of the building footprint for the Northside Aztlan
Community Center replacement building, up to a maximum of $50,000, for design and
construction of a passive vapor barrier/venting system for the new Northside Aztlan Community
Center ; and
WHEREAS, Article V, Section 9, of the Charter of the City of Fort Collins permits the
City Council to make supplemental appropriations by ordinance at any time during the fiscal
year, provided that the total amount of such supplemental appropriations, in combination with all
previous appropriations for that fiscal year, does not exceed the current estimate of actual and
anticipated revenues to be received during the fiscal year; and
WHEREAS, City staff has determined that the appropriation of the payments from PSCo
($200,000) and Schrader Oil Company ($50,000), as described herein, will not cause the total
amount appropriated in the Capital Projects Fund Willow Street Environmental Remediation
Project and the Northside Aztlan Community Center Replacement Project to exceed the current
estimate of actual and anticipated revenues to be received during the fiscal year; and
WHEREAS, it is the desire of the Council to appropriate the sum of$200,000, paid to the
City by PSCo, in the Capital Project Fund Willow Street Environmental Remediation Project to
be used for environmental site mitigation in the vicinity of Willow Street, and the sum of
$50,000, to be paid to the City by Schrader Oil Company, in the Capital Projects Fund Northside
Aztlan Community Center Replacement Project to be used for design and construction of a
passive vapor barrier/venting system for the replacement Northside Aztlan Community Center.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That there is hereby appropriated for expenditure from unanticipated revenue
in the Capital Projects Fund Willow Street Environmental Remediation Project, the sum of TWO
HUNDRED THOUSAND DOLLARS ($200,000) to be used for environmental site mitigation in
the vicinity of Willow Street.
Section 2. That there is hereby appropriated for expenditure from unanticipated revenue
in the Capital Projects Fund Northside Aztlan Community Center Replacement Project, the sum
of FIFTY THOUSAND DOLLARS ($50,000) to be used for design and construction of a
passive vapor barrier/venting system for the replacement Northside Aztlan Community Center.
Introduced and considered favorably on first reading and ordered published this 6th day
of June, A.D. 2006, and to be presented for final passage on the 18th day of July, A.D. 2006.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading this 18th day of July, A.D. 2006.
Mayor
City Clerk