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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 09/16/2014 - SECOND READING OF ORDINANCE NO. 123, 2014, AUTHORIAgenda Item 11 Item # 11 Page 1 AGENDA ITEM SUMMARY September 16, 2014 City Council STAFF Lindsay Kuntz, Real Estate Specialist Helen Matson, Real Estate Services Manager SUBJECT Second Reading of Ordinance No. 123, 2014, Authorizing the Conveyance of a Waterline Easement, Access Easement, and Temporary Construction Easement on City property to the City of Greeley. EXECUTIVE SUMMARY This Ordinance, adopted on September 2, 2014, by a vote of 5-1 (Nays: Overbeck; Poppaw absent) authorizes the conveyance of easements to the City of Greeley across the City property known as the City Ditch. The City of Greeley is acquiring necessary easements for its Greeley Bellvue Pipeline Project. Greeley has requested easements for its project across a strip of property owned by the City’s Utility Department extending south from the Poudre River. The property lies outside City limits and is the location of the City Ditch. The Larimer County Canal No. 2 Irrigating Company utilizes this ditch through an existing easement agreement with the City. The easements requested by Greeley include a .19 acre (8,265 square feet) permanent waterline easement, a .133 acre (5,808 square feet) temporary construction easement, and an access easement across the existing ditch access road. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. BACKGROUND / DISCUSSION This request was presented to the Water Board and Land Conservation and Stewardship Board in 2010 when Greeley originally made this request to the City. Due to the City of Greeley’s intent to use eminent domain to acquire these easements and that the conditions of the request had not changed from the 2010 request, the item was not taken back to the Boards for consideration prior to being presented to City Council. The City of Greeley notified the City of its intent to use eminent domain if an agreement was not reached by September 5, 2014. After discussions with Greeley staff, they agreed to delay their action until October 1, 2014. City staff believes it is in the City’s best interest to convey the interests by negotiated agreement instead of through the courts in order to retain specific terms and conditions. These terms and conditions include the City of Greeley completing construction in compliance with the City’s Natural Resources General Resource Protection Standards, no above-ground improvements, and mitigation measures. ATTACHMENTS 1. First Reading Agenda Item Summary, September 2, 2014 (w/o attachments) (PDF) 2. Location maps (PDF) 3. Ordinance No. 123, 2014 (PDF) Agenda Item 18 Item # 18 Page 1 AGENDA ITEM SUMMARY September 2, 2014 City Council STAFF Lindsay Kuntz, Real Estate Specialist Jon Haukaas, Water Engr Field Operations Mgr Helen Matson, Real Estate Services Manager SUBJECT Items Relating to the Greeley Bellvue Pipeline on City Property. EXECUTIVE SUMMARY A. First Reading of Ordinance No. 123, 2014, Authorizing the Conveyance of a Waterline Easement, Access Easement, and Temporary Construction Easement on City property to the City of Greeley. B. Resolution 2014-081, Authorizing the City Manager to Enter Into a Shared Location Agreement for the Greeley Bellvue Pipeline to Cross a City Utility Easement. The purpose of this item is to authorize the conveyance of easements to the City of Greeley (“Greeley”) across the City Property known as the City Ditch and authorize a shared location agreement for Greeley to cross a City utility easement. The City of Greeley is acquiring necessary easements for its Greeley Bellvue Pipeline Project (the “Project”). Greeley has requested easements for their Project across a strip of property owned by the City’s Utility Department extending south from the Poudre River. The property lies outside City limits and is the location of the City Ditch. The Larimer County Canal No. 2 Irrigating Company utilizes this ditch through an existing easement agreement with the City. The easements requested by Greeley include a .19 acre (8,265 square feet) permanent waterline easement, a .133 acre (5,808 square feet) temporary construction easement, and an access easement across the existing ditch access road. Greeley also plans to install its pipeline across an existing utility easement containing a 27-inch waterline owned by the City. In order to protect the City’s easement interest and existing utility improvements, Greeley has agreed to enter into a Shared Location Agreement regarding this crossing. The requested easements and agreement were presented and approved by the City’s Water Board at their December 2010 meeting. They were also presented to the Land Conservation and Stewardship Board meeting on December 8, 2010. These items were previously presented to Council in June 2011, but the items were withdrawn due to concerns from citizens and City Council, including that Greeley had not yet obtained authorization from the U.S. Army Corps of Engineers for the Project and had not reached agreement with a neighboring property owner. Since that time, Greeley has obtained authorization from the U.S. Army Corps of Engineers but has not yet reached an agreement with the neighboring property owner. Greeley has agreed to pay the City for the value of the easements as well as City Real Estate staff time. Because Greeley wants to begin construction on this section of the Project soon, it has indicated that it will use eminent domain if necessary to acquire the requested property interests from the City. If Greeley acquires the requested easements through an eminent domain action, the City will not get the benefit of the terms and conditions of those easements that City staff previously negotiated with Greeley. ATTACHMENT 1 Agenda Item 18 Item # 18 Page 2 STAFF RECOMMENDATION Staff recommends adoption of the Resolution and Ordinance on First Reading. BACKGROUND / DISCUSSION Overall Project Description The Project involves the installation of about 30 miles of a 60-inch diameter pipeline and is designed to transport water from its Bellvue water treatment plant located northwest of Fort Collins to the City of Greeley water customers. Final design of the Northern Segment has been completed and Greeley will soon solicit bids for project construction. Greeley has procured 86 percent of the lineal footage of the pipeline easements needed for the project and is in negotiations with property owners for the remaining needed easements. An Executive Summary provided by the City of Greeley for the Project is attached (Attachment 4). Brief History As background, Greeley began delivering drinking water from its Bellvue Water Treatment Plant in 1907. Greeley constructed the original transmission line out of handcrafted wooden stave pipe. Two, and sometimes three, parallel steel or concrete pipelines provide current transmission capacity. Existing transmission capacity will soon constrain Greeley’s ability to service its customers from the Bellvue Water Treatment Plant due to increasing drinking water demand. The Project adds capacity to this transmission system for the first time in 50 years. Unfortunately, the existing 50-year-old transmission line easements are not large enough and were not intended to accommodate the additional line in many places. Greeley identified its preferred route corridor for the new transmission line through an extensive analysis that determined it minimized disruption of properties and the public at large, had moderate environmental impacts, operated on gravity, and ranked the best in terms of cost. Larimer County approved the location and extent of the preferred route corridor. In 2004, Greeley approached the City with a request to install a new water transmission line from the Bellvue Filter Plant to Greeley with a route going through Fort Collins. In an effort to allow plenty of time for review and collaboration, this request was made well in advance of the State Statue regulated 60-day Site Advisory Review time limit. A Technical Advisory Committee of City staff was formed and met on a monthly basis with representatives of the project for a year to discuss the pros and cons of several possible route alternatives. City staff from various departments including Natural Resources, Planning, Engineering, and the Utilities departments worked closely with the project engineers to analyze any potential impacts to properties in Fort Collins. The initial investigation focused on land use, environmental factors, impacts to existing structures, historic structures, natural areas, etc. All parties collaborated to ensure that the location of the proposed waterline would have the least amount of negative impacts and maximize opportunities for the City. All potential environmental impacts that were noted were planned to be avoided or temporary only. The proposed routes were then narrowed to one unanimous decision. The final “Location, Character, and Extent” report was submitted on April 15, 2005. City staff formed a Technical Advisory Committee and worked with Greeley staff to review the project per Colorado Revised Statute 31-23-209, using the Site Advisory Review process. This statute limits the City‘s regulatory review to the location, character, and extent of the proposal. A number of public open houses were held by Greeley, to which all impacted property owners and adjacent property owners were invited. The Project was taken before the Planning and Zoning Board per State statute and approved. Agenda Item 18 Item # 18 Page 3 In 2006, the Fort Collins City Council passed Ordinance No. 135, 2006, which authorized the conveyance of easements on City property located in east Fort Collins near Timberline Road for the Project. In 2008, the City Council also passed Ordinance No. 102, 2008, authorizing easements for the Project on City property located at 1000 North College Avenue. These easements were then conveyed and Greeley has since installed the waterline improvements in these easement areas. Current Easement Request The Northern Segment is one of the last portions of the Project and involves the installation of the waterline improvements from Shields Street north of Fort Collins west to the Bellvue Filter Plant. City staff and Greeley staff began meeting in October 2010 to discuss the currently requested easements and the crossing of the City’s utility line. The water pipeline as it crosses the City’s property and adjacent properties will be constructed within a steel casing that will be bored approximately 6 feet underneath the City Property. This section of boring will run for approximately 700 feet and will be constructed by hand. The purpose of the hand boring is to minimize surface disturbances not only to City-owned facilities, but also to neighboring properties with significant natural and cultural resources. In February 2011, the City Leadership Team presented City staff with a question concerning the number of surface protrusions planned for Greeley’s Project. City staff explained the conditions that would require the installation of these features, as well as whether they would be installed within the area of the City’s easements. Greeley does not plan to install any above-ground facilities within the requested easement area. Blue marker posts are typically installed at property lines and fences and other locations to minimize obstructions in the properties. Greeley will work with property owners to determine the best location to place these markers. Greeley would consider using a natural color to paint any markers, if requested by an owner. Most of marker locations will be established during construction of the pipeline. Damage to vegetation will be limited to surface grading necessary for vehicle access across the ditch. The pipeline will also cross a nearby 27-inch water pipeline owned by the Utilities Department. Greeley plans to cross below this pipeline with a minimum of 12 inches of clearance between the two pipes. Greeley will work with the Utilities Department to determine what safety precautions need to be made when crossing this pipe. All work will be performed under the guidelines of the City’s General Resource Protection Standards for Easements or Rights of Way on City of Fort Collins Natural areas and Open Lands. Property owned by the Natural Area Program will not be affected by the requested easements. Eminent Domain On July 23, 2014, Greeley sent a letter to the City reiterating its offer to purchase the requested easements from the City and stating that if the City did not accept Greeley’s offer by September 5, 2014, Greeley would proceed to acquire the property interests by exercise of its power of eminent domain. However, on further discussion, Greeley was understanding of the timing of the City’s Council agenda process and agreed to refrain from filing an eminent domain action until later in September so that City staff could bring this item to the City Council seeking approval to convey the requested easements. Additional Issues As noted in the executive summary, various concerns have been raised by some Laporte area residents as well as Fort Collins citizens about the northern segment of the pipeline. Many of the concerns are addressed in the attached letter dated April 25, 2011, from Greeley City Manager, Roy Otto, to City of Fort Collins City Manager, Darin Atteberry. This Agenda Item Summary addresses several of the concerns from the perspective of City staff. Agenda Item 18 Item # 18 Page 4 Save the Poudre, a conservation group focused on Poudre River issues, has previously raised a concern about potential Poudre River water depletions associated with the new pipeline. Although the primary purpose of the pipeline is to deliver Greeley’s existing water rights portfolio, there is the potential for additional future diversions that could be accommodated by the pipeline. These potential new diversions could reduce the flow between the Greeley pipeline diversion near the mouth of the Poudre canyon and the Larimer and Weld headgate, which is located close to Taft Hill Road. In addition to these diversions, other proposed projects also would have the potential to reduce flows at certain times in this reach of the Poudre River. These potential new depletions to the Poudre River, and their potential environmental impacts, were examined by the U.S. Army Corps of Engineers. Greeley received written verification in July 2014 from the U.S. Army Corps of Engineers that construction of the Northern Segment of the Bellvue Pipeline Project has been authorized pursuant to Nationwide Permit 12 (utility lines). A copy of this written verification is attached (Attachment 6). Greeley is tunneling by hand for 700 feet on the neighboring property and an adjoining parcel to avoid surface damages to important natural and cultural resources. Moreover, as noted in Roy Otto’s letter, Greeley participated in an extensive planning process with Larimer County, the entity with land planning jurisdiction in this area. Another issue that has been concerns the City’s ownership of the City Ditch. The ownership issue has been reviewed by City staff and discussed with a neighboring owner, Ms. Brinks, over the course of the past several years. The City acquired the property in 1883 through its eminent domain powers as the location for the original City ditch which was used to convey water from the Poudre River to the City’s original waterworks near Bingham Hill Road in 1883. The City became “seized in fee of the lands and real estate” by order of the Court in the eminent domain case. The condemnation order was recorded in 1892, in Book 87, page 556 of the real property records of Larimer County. When Ms. Brinks’ husband Jim acquired the Brinks property in 1977, the deed to Mr. Brinks referenced the City’s ownership, describing the property with the following exception: “except tract to City of Fort Collins by deed recorded in Book 87 at 556.” The City has continued to use the property for the location of the City Ditch since the late 1800’s. After the City’s early use of the ditch, the City leased the property for over 100 years to the Larimer No. 2 Irrigation Company, and in 2010 granted an easement to Larimer No. 2 for continued use of the City Ditch as the location for the Larimer No. 2. FINANCIAL / ECONOMIC IMPACTS Greeley has agreed to pay the following amounts for the easements: • Permanent Easement - $2,845.00 • Temporary Construction Easement - $200.00 • Access Easement - $500.00 • Staff time to process the request The value for the easements was calculated using $15,000 per acre. This value was determined by using comparable market data. ENVIRONMENTAL IMPACTS A Technical Advisory Committee of City staff was formed and met on a monthly basis with representatives of the project for a year to discuss the pros and cons of several possible route alternatives. City staff from various departments including Natural Resources, Planning, Engineering, and the Utilities departments worked closely with the project engineers to analyze any potential impacts to properties in Fort Collins. Agenda Item 18 Item # 18 Page 5 The initial investigation focused on land use, environmental factors, impacts to existing structures, historic structures, natural areas, etc. All parties collaborated to ensure that the location of the proposed waterline would have the least amount of negative impacts and maximize opportunities for the City. All potential environmental impacts that were noted were planned to be avoided or temporary only. The proposed routes were then narrowed to one unanimous decision. The final “Location, Character, and Extent” report was submitted on April 15, 2005. City staff formed a Technical Advisory Committee and worked with Greeley staff to review the project per Colorado Revised Statute 31-23-209, using the Site Advisory Review process. This statute limits the City‘s regulatory review to the location, character, and extent of the proposal. A number of public open houses were held by Greeley, to which all impacted property owners and adjacent property owners were invited. Damage to vegetation will be limited to surface grading necessary for vehicle access across the ditch. The pipeline will also cross a nearby 27-inch water pipeline owned by the Utilities Department. Greeley plans to cross below this pipeline with a minimum of 12 inches of clearance between the two pipes. Greeley will work with the Utilities Department to determine what safety precautions need to be made when crossing this pipe. All work will be performed under the guidelines of the City’s General Resource Protection Standards for Easements or Rights of Way on City of Fort Collins Natural areas and Open Lands. Property owned by the Natural Area Program will not be affected by the requested easements. BOARD / COMMISSION RECOMMENDATION At its December 6, 2010 meeting, the Water Board unanimously voted to recommend approval of the requested easements. At its December 8, 2010, meeting, the Land Conservation and Stewardship Board unanimously voted to recommend approval of the requested easements. PUBLIC OUTREACH A number of public open houses were held by Greeley, to which all impacted property owners and adjacent property owners were invited. ATTACHMENTS 1. Location Map (PDF) 2. Water Board Minutes - December 6 2010 (PDF) 3. LCSB Board Minutes - December 8 2010 (PDF) 4. Greeley Bellvue Pipeline Project Summary (PDF) 5. April 2011 Greeley City Manager Letter (PDF) 6. US Army Corps of Engineers Letter (PDF) Location Map: Page 1 of 4 ATTACHMENT 2 Location Map: Page 2 of 4 Location Map: Page 3 of 4 City of Greeley Bellvue Pipeline Project Location Map Detail - Approximate location of requested easements - Approximate location of utility line crossing Location Map: Page 4 of 4 - 1 - ORDINANCE NO. 123, 2014 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE CONVEYANCE OF A WATERLINE EASEMENT, ACCESS EASEMENT, AND TEMPORARY CONSTRUCTION EASEMENT ON CITY PROPERTY TO THE CITY OF GREELEY WHEREAS, the City owns a certain parcel of real property located in Larimer County, Colorado, known as the City Ditch (the “City Property”); and WHEREAS, the Larimer County Canal No. 2 Irrigating Company (the “Canal Company”) uses the City Property through an existing easement agreement with the City; and WHEREAS, the City of Greeley (“Greeley”) is in the process of acquiring the necessary easements for its Bellvue Waterline Project, which will transport water from Greeley’s Bellvue Water Treatment Plant to Greeley water customers (the “Project”); and WHEREAS, as part of the Project, Greeley has asked the City to convey to it a permanent waterline easement (the “Permanent Easement”) and a temporary construction easement (the “TCE”) on the City Property, as described on Exhibit “A”, attached and incorporated herein by reference; and WHEREAS, Greeley has also asked the City to convey an access easement on the existing ditch access road, to the extent that the ditch access road is on property owned by the City, in the location depicted on Exhibit “B”, attached and incorporated herein by reference (the “Access Easement”); WHEREAS, the Permanent Easement is .19 acres in size and the TCE is .133 acres in size; and WHEREAS, the Permanent Easement, TCE and Access Easement are collectively referred to hereafter as the “Easements”; and WHEREAS, City staff has evaluated whether the Easements would interfere with use of the City Property by the City or the Canal Company, and has determined that the Easements would not result in any such interference; and WHEREAS, City staff has not identified any negative impacts to the City or the City’s Water Utility that would result from the grant of the requested Easements or the Project; and WHEREAS, as consideration for the Easements, Greeley has agreed to pay the City compensation of $3,545 for the value of the Easements, and to pay the cost of City staff time required for the review, approval and processing of the Easements; and WHEREAS, City staff has negotiated easement agreements with Greeley (the “Easement Agreements”) providing for City review and approval of construction plans for the portions of the Project on the City Property; avoidance of surface and other potential impacts from the - 2 - construction and operation of the improvements; and restoration of the Easement areas in accordance with the Natural Areas Resource Protection Standards; and WHEREAS, the three draft Easement Agreements are attached as Exhibits “C-1”, “C-2” and “C-3”, and incorporated herein by reference; and WHEREAS, on December 6, 2010, the proposed Easements were presented to the Water Board for consideration, and the Water Board voted unanimously to recommend approval of the Easements; and WHEREAS, on December 8, 2010, the proposed Easements were presented to the Land Conservation and Stewardship Board for consideration, and the Land Conservation and Stewardship Board voted unanimously to recommend approval of the Easements; and WHEREAS, Section 23-111of the City Code states 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 and, with respect to real property that is a part of the City’s water or utility systems, that the disposition will not materially impair the viability of the particular utility system as a whole and will be for the benefit of the citizens of the City; and WHEREAS, Greeley has indicated that, if necessary, it will use eminent domain to acquire the Easements; and WHEREAS, the City Council believes it is in the best interests of the City and will benefit the citizens of the City to convey the Easements on negotiated terms rather than have the court in an eminent domain action grant Greeley the Easements on terms that may not be as desirable to the City. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the conveyance of the Easements to Greeley as provided herein will not materially impair the viability of the City’s water utility system as a whole, will be for the benefit of the citizens of the City, and 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 Easements to Greeley, on terms and conditions consistent with this Ordinance and in a form substantially the same as the Easement Agreements, 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. - 3 - Introduced, considered favorably on first reading, and ordered published this 2nd day of September, A.D. 2014, and to be presented for final passage on the 16th day of September, A.D. 2014. __________________________________ Mayor ATTEST: _______________________________ Chief Deputy City Clerk Passed and adopted on final reading on the 16th day of September, A.D. 2014. __________________________________ Mayor ATTEST: _______________________________ City Clerk Exhibit “A” Exhibit “A” Exhibit “A” Exhibit “A” Exhibit “A” Exhibit “A” Exhibit “B” Access Easement (To Permanent Pipeline Easement) Exhibit B (To Permanent Pipeline Easement) (To Permanent Pipeline Easement) (To Temporary Construction Easement) (To Temporary Construction Easement) Exhibit A (To Permanent Access Easement) (To Permanent Access Easement)