HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/03/2009 - SECOND READING OF ORDINANCE NO. 110, 2009, AUTHORI DATE: November 3, 2009 AGENDA ITEM SUMMARY
STAFF: Helen Matson _
T COLLINS CITY COUNCIL
Susie Gordon
Second Reading of Ordinance No. 110, 2009, Authorizing the Conveyance of a Utility Easement on a Portion of the
Larimer County Landfill to Poudre Valley Rural Electric Association, Inc.
EXECUTIVE SUMMARY
Larimer County has entered into a Landfill Gas Purchase Agreement with Timberline Energy, LLC for the County's
Landfill Gas Project. The goal of this project is to create a complete landfill gas recovery system for the Landfill.
Under this Agreement, Timberline will operate a facility at the Landfill to collect the methane gas. Once collected,
Timberline will sell the gas, to be used to generate electricity, and carbon credits to a commercial user in the area.
Timberline needs electric service for its landfill gas facility,to be provided by Poudre Valley Rural Electric Association,
Inc. This Ordinance, unanimously adopted on First Reading on October 20,,2009, authorizes the conveyance of an
easement to. REA to lay an electrical line underground at the Larimer County Landfill.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on Second Reading.
ATTACHMENTS
1. Copy of First Reading Agenda Item Summary-October 20, 2009.
(w/o original attachments)
ATTACHMENT 1
ITEM NUMBER: 19 _
AGENDA ITEM SUMMARY DATE: October 20, 2009
FORT COLLINS CITY COUNCIL , STAFF: Helen Matson
Susie Gordon
SUBJECT
First Reading of Ordinance Noll%:MO?09�-- on zing t e Conveyance of a Utility Easement on
a Portion of the Larimer County Landfill to Poudre Valley Rural�Electric Association, Inc.
RECOMMENDATION
Staff recommends the adoption of the Ordinance on First Reading..
FINANCIAL IMPACT
��
All installation and maintenance/ costs asssoociatteed with easementthis� will be paid for by Poudre
Valley Rural Electric, Inc. ("REA"). REA's custome�Timb rline Energy, LLC has agreed to pay
the City $1,000 for the easement J L
EXECUTIVE SUMMARY
Larimer County has been working for a few years on a project to reduce its carbon emissions from
the Landfill. Larimer County has developed a cooperative partnership with Timberline Energy,LLC
("Timberline")to recover landfill gas. Last year,these parties entered into a Landfill Gas Purchase
Agreement. Under this Agreemen'Timber�l ne will�instalh(at itTe'xpense) a landfill gas recovery
h
system. Timberline will then sel ecovered mane gad carbon credits to a commercial
energy user.
Larimer County will receive a complete landfill gas recovery system at no cost to Landfill customers
and will also receive a small amount of monthly revenue and a small percentage of the credit and
gas sales. This revenue will be directly reinvested into the solid waste program at the Landfill.
In order to construct the gas recovery facility and operate the gas recovery system,Timberline needs
electrical power to the site. Timberline is getting its electrical service from REA. REA has
requested a utility easement to lay the electrical line underground to the facility.
BACKGROUND n- - I ))- 7
%.e�)/
The Larimer County Landfill is located of 5887 South Taft Hill Road. The southern half is owned
solely by Larimer County. Ownership of the northern half of the property is divided three ways:
October 20, 2009 -2- Item No. 19
City of Fort Collins has 50%ownership; City of Loveland has 25%ownership;and Larimer County
has the remaining 25%ownership. Under an Intergovernmental Agreement between the City of Fort
Collins,the City of Loveland,and Larimer County,Larimer County is the operating manager of the
Landfill.
As the operating manger of the Landfill, Larimer County entered into a Landfill Gas Purchase
Agreement with Timberline for the County's Landfill Gas Project. The goal of this project is to
create a complete landfill gas recovery system for the Landfill. Currently, the Landfill vents the
methane gas directly into the atmosphere. Under this Agreement,Timberline will operate a facility
at the Landfill to collect the methaTne gas!Onoe�coll�ected—NTimbZrl'ine will sell the gas, to be used
to generate electricity, and carbon credits toa comm� Iercial usekin the area.
The location of the gas recovery and eq'uipm�ent is iri U north half of Section 9, of which
the City has 50%ownership. Timberline needs electric service for its landfill gas facility. REA is
installing the electrical line to the new facility. In order to install this electrical line, REA has
requested an easement from all three owners. The new electrical line will be installed underground.
ATTACHMENTS
1. Location map
ORDINANCE NO. 110, 2009
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE CONVEYANCE OF A
UTILITY EASEMENT ON A PORTION OF THE LARIMER COUNTY
LANDFILL TO POUDRE VALLEY RURAL ELECTRIC ASSOCIATION, INC.
WHEREAS, the City is a partial owner, along with the City of Loveland ("Loveland")
and Latimer County ("County"), of property known as the Latimer County Landfill ("Property")
located in the North % of Section 9, Township 6 North, Range 69 west of the 6`h P.M.; and
WHEREAS, pursuant to an intergovernmental agreement between the City, County and
Loveland dated November 21, 1974, the County is responsible for the operation of the landfill on
the Property; and
WHEREAS, the County and Timberline Energy, LLC ("Timberline") entered into a
Landfill Gas Purchase Agreement dated January 16, 2008 ("Agreement'); and
WHEREAS, under the Agreement, in exchange for certain payments to the County,
Timberline is permitted to construct a landfill gas facility and associated gas recovery system
(the "Facility") on the Property in order to capture methane gas from the landfill and sell it to a
buyer; and
WHEREAS, Timberline has contracted with Poudre Valley Rural Electric Association,
Inc. ("REA") to provide electrical service for the Facility; and
WHEREAS, REA has requested from the owners of the Property an underground utility
easement on, under and across the Property as shown on Exhibit "A", attached and incorporated
herein by this reference (the "Easement'), to install an electrical power line to the Facility; and
WHEREAS, Timberline has agreed to pay$1,000 to the City for the Easement; 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 by the City,
provided the City Council first finds, by ordinance, that such sale or other disposition is in the
best interests of the City; and
WHEREAS,) the Facility will improve local air quality by reducing the quantity of
methane vented into the atmosphere by the landfill.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows;
Section 1. That the conveyance of the Easement to REA, as set forth herein, is in the
best interests of the City.
Section 2. That the Mayor is hereby authorized to execute such documents as are
necessary for the City, County and Loveland to convey the Easement on terms and conditions
consistent with this Ordinance, along with such additional terms and conditions as the City
Manager, in consultation with the City Attorney, determines to be 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 Easement.
Introduced, considered favorably on first reading, and ordered published this 20th day of
October, A.D. 2009, and to be presented for final passage on t 3rd day of November, A.D.
2009.
May
ATTEST:
City Clerk
Passed and adopted on final reading on the 3rd day of November, A.D. 2009.
Mayor
ATTEST:
City Clerk