HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 07/02/2013 - FIRST READING OF ORDINANCE NO. 095, 2013, AMENDINGDATE: July 2, 2013
STAFF: Karen Cumbo
Rick Richter
AGENDA ITEM SUMMARY
FORT COLLINS CITY COUNCIL 16
SUBJECT
First Reading of Ordinance No. 095, 2013, Amending Ordinance No. 068, 2013, Authorizing the Conveyance of a Non-
exclusive Utility Easement in a Portion of South Shields Street to Public Service Company of Colorado, to Increase
the Easement Term from Fifteen to Twenty Years.
EXECUTIVE SUMMARY
The purpose of this Ordinance is to amend Ordinance No. 068, 2013,extending the period from fifteen to twenty years.
Ordinance No. 068, 2013, authorizing conveyance of a Non-Exclusive Utility Easement to Xcel, was adopted in May,
and follow-up conversations with Xcel (Public Service Company) require this extension.
This easement addresses the location of West Main pipeline at the northwest corner of Harmony Road and Shields
Street and provides for the location in the right of way instead of on private property .The City has agreed to pay for
any relocation of the approximately 2000 feet of line adjacent to the property that may be necessary in the next twenty
years. This is a low-risk option and will be consistent with the location of the pipeline in the Shields Street right of way.
In order to document this agreement between the City and Xcel, staff is recommending a Non-Exclusive Pipeline
Easement within the Shields Street right of way.
BACKGROUND / DISCUSSION
Public Service Company of Colorado (PSCo), an Xcel Energy company, is requesting easements within the Shields
Street right of way to construct, operate, and maintain a high pressure gas pipeline. The proposed project is part of
the larger West Main Natural Gas Pipeline Replacement Project (West Main Project) that encompasses Larimer,
Weld, and Boulder Counties. The project will replace an existing eight-inch gas pipeline that is 83 years old and at the
end of service life with a 16-inch high pressure gas pipeline. The proposed project will traverse the city north to south
and will impact the road surface and traffic along Shields Street, Horsetooth Road, and Timberline Road.
PSCo is authorized in Section 6 of the City Code to construct operate and maintain gas facilities with in the public right
of way. However, in this case, PSCo, in exchange for relocating its proposed gas line from a private easement to the
public right of way, is requesting a pipeline easement that would release it from the obligation to relocate this pipeline
within the proposed easement at its expense.
FINANCIAL / ECONOMIC IMPACTS
The extension of the easement period from fifteen to twenty years is not expected to appreciably affect the likelihood
of City financial responsibility.
ENVIRONMENTAL IMPACTS
The proposed re-alignment for the project will avoid impacts to the private property and place the pipeline with in the
public right of way.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
July 2, 2013 -2- ITEM 16
PUBLIC OUTREACH
Xcel conducted three open houses in the region, and established a West Main project website
(www.xcelenergywestmainpipeline.com) to provide information on the project. The City did not conduct additional
public outreach on this proposed extension.
ATTACHMENTS
1. Location map
ORDINANCE NO. 095, 2013
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING ORDINANCE NO. 068, 2013, AUTHORIZING THE CONVEYANCE
OF A NON-EXCLUSIVE UTILITY EASEMENT IN A PORTION OF
SOUTH SHIELDS STREET TO PUBLIC SERVICE COMPANY OF COLORADO,
TO INCREASE THE EASEMENT TERM FROM FIFTEEN TO TWENTY YEARS
WHEREAS, the City is the owner of the current Shields Street right-of-way lying within the
southwest quarter of Section 34 and the southeast quarter of Section 35, Township 6 North, Range
69 West of the 6th Principal Meridian, County of Larimer, State of Colorado, between Harmony Road
and a point 548 feet north, more or less, of the intersection between Troutman Parkway and Shields
Street (the “City Property”); and
WHEREAS, on May 7, 2013, the City Council adopted Ordinance No. 068, 2013,
authorizing the conveyance of a non-exclusive utility easement to Public Service Company of
Colorado (“PSCo”) (the “Easement”) on a portion of the City Property for the benefit of its West
Main High Pressure Natural Gas Line Replacement Project (the “Project”); and
WHEREAS, Ordinance No. 068 authorized the Easement for the limited term of fifteen
years, after which the natural gas pipeline would be governed by all requirements and limitations
applicable to utility lines, and particularly natural gas pipelines, in City rights-of-way; and
WHEREAS, Xcel has asked that the City extend the term of the Easement to twenty years,
rather than fifteen years; and
WHEREAS, staff has reviewed this request and has not identified any appreciable detriment
to the City that would result from the increased term length; and
WHEREAS, authorization of a longer term of the Easement would be consistent with the
terms that had been negotiated with PSCo, and would allow the Project to proceed as planned; and
WHEREAS, Section 23-111(a) of the City Code provides that the City Council is authorized
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 finds that the City's conveyance to PSCo of the
Easement on the City Property as provided in Ordinance No. 068, 2013, for a term of twenty years,
is in the best interests of the City.
Section 2. That the Mayor is hereby authorized to execute such documents as are
necessary to convey the Easement to PSCo on terms and conditions consistent with Ordinance No.
068, 2013, for a term of twenty years as provided in 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, including, but not limited to, any
necessary changes to the legal descriptions of the Easements, as long as such changes do not
materially increase the size or change the character of the Easements.
Introduced, considered favorably on first reading, and ordered published this 2nd day of July,
A.D. 2013, and to be presented for final passage on the 16th day of July, A.D. 2013.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk
Passed and adopted on final reading on the 16th day of July, A.D. 2013.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk