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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 09/02/2014 - ROUTINE DEEDSAgenda Item 13 Item # 13 Page 1 AGENDA ITEM SUMMARY September 2, 2014 City Council STAFF Ellen Switzer, Utilities Financial Operations Manager SUBJECT Routine Deeds EXECUTIVE SUMMARY The purpose of this item is for Council to accept two quit claim deeds from Poudre Valley Rural Electric Association Inc. conveying the rights to a total of 110 electric easements within the boundaries of Phase Three and Four of the Southwest Annexation. A. Quit Claim Deed 1, from Poudre Valley Rural Electric Association Inc., conveying 57 easements to the City of Fort Collins. B. Quit Claim Deed 2, from Poudre Valley Rural Electric Association Inc., conveying 53 easements to the City of Fort Collins STAFF RECOMMENDATION Staff recommends acceptance of the two quit claim deeds. BACKGROUND / DISCUSSION Fort Collins Utilities is in the process of providing electric service in Phase Four of the Southwest Annexation and rebuilding existing systems previously transferred from Poudre Valley Rural Electric Association in Phase 3 of the Southwest Annexation. The electric systems are constructed in easements previously obtained by PVREA. The two quit claim deeds transfer the easement rights from PVREA to the City of Fort Collins. A total of 110 easements are conveyed by the two quit claim deeds. All easements are located within the Southwest Annexation (Attachment 1). FINANCIAL / ECONOMIC IMPACTS There is no cost associated with the two deeds, however, Fort Collins Utilities is obligated by state statute to purchase the electric system owned by PVREA within annexed areas. In addition, for a period of ten years after the system is transferred to the City, the Utilities must pay PVREA 25% of the electric operating revenue from the customers transferred from PVREA as well as 5% of revenues from any new customers that are added within the annexation following the transfer of service from PVREA. ENVIRONMENTAL IMPACTS Since the electric lines are already in existence within the easements, no new environmental impacts are anticipated. ATTACHMENTS 1. Southwest Annexation Phasing (PDF)