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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 03/19/2013 - RESOLUTION 2013-022 DIRECTING THAT THE PROCEEDS FRDATE: March 19, 2013 STAFF: Mark Jackson, Mark Sears AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 21 SUBJECT Resolution 2013-022 Directing that the Proceeds from the Public Service Company of Colorado Pipeline Project Be Used for Trails and Natural Areas. EXECUTIVE SUMMARY Public Service Company of Colorado (PSCo) is constructing a high pressure gas pipeline through Fort Collins. PSCo has agreed to pay the City $2 million as mitigation for the project impacts and as compensation for easements across four natural areas. Adoption of the Resolution directs the $2 million PSCo payment shall be used only for trails and natural areas BACKGROUND / DISCUSSION At the February 5, 2013 Council meeting, Council unanimously approved four ordinances conveying easements to PSCo on four natural areas needed for the pipeline project. PSCo agreed to pay the City 2 million dollars as mitigation for overall project impacts and as compensation for the value of the natural area easements. PSCo did not place restrictions on the use of the $2 million. The City has been conducting a paved trail study over the past several months and the information from the study is being used to develop a Paved Trail Master Plan. Staff estimates the cost to build out the paved trail system is $24 million for 30.7 miles of trail. It will take 50 years to complete the trail system at current Conservation Trust funding levels ($470,000 annually), reduced to 25 years if a trail capital expansion fee is created. Utilizing some or all of the PSCo funds for trails will help to complete key sections of this highly valued community asset. The Natural Areas Department (NAD) has a significant number of land conservation and restoration projects in process. Using some or all of the PSCo funds for natural areas acquisition, conservation or restoration will enable the NAD to pursue projects that would otherwise have to be delayed, bypassed or reduced in scope. FINANCIAL / ECONOMIC IMPACTS Expenditure of the PSCo funds on trails or natural areas has beneficial economic impacts by providing trail construction or natural area restoration work. By spending the funding on trails and natural areas, the funds will not be available for other purposes. ENVIRONMENTAL IMPACTS Trails are located, designed and constructed to avoid and minimize environmental impacts. Acquisition, conservation or restoration of natural areas enhances the environmental quality of the community. STAFF RECOMMENDATION Staff recommends adoption of the Resolution. ATTACHMENTS 1. Agenda Item Summary regarding the conveyance of natural area easements to Public Service Company of Colorado, January 15, 2013 (w/o attachments) 2. Land Conservation and Stewardship Board minutes, January 7, 2013 COPY COPY COPY COPY ATTACHMENT 1 DATE: January 15, 2013 STAFF: Daylan Figgs, John Stokes, Mark Jackson AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 15 SUBJECT Items Relating to Public Service Company of Colorado’s Request for Utility Easements and Temporary Construction Easements Across Four Natural Areas Owned by the Natural Areas Department to Construct, Operate, and Maintain Approximately 2.6 Miles of High Pressure Gas Pipeline. A. First Reading of Ordinance No. 008, 2013, Authorizing the Conveyance of a Non-Exclusive Utility Easement and a Temporary Construction Easement on Coyote Ridge Natural Area to Public Service Company of Colorado. B. First Reading of Ordinance No. 009, 2013, Authorizing the Conveyance of an Exclusive Utility Easement, a Non-Exclusive Utility Easement, and a Temporary Construction Easement on Colina Mariposa Natural Area to Public Service Company of Colorado. C. First Reading of Ordinance No. 010, 2013, Authorizing the Conveyance of a Non-Exclusive Utility Easement and a Temporary Construction Easement on Hazaleus Natural Area to Public Service Company of Colorado. D. First Reading of Ordinance No. 011, 2013, Authorizing the Conveyance of Two Non-Exclusive Utility Easements on Kingfisher Point Natural Area to Public Service Company of Colorado. EXECUTIVE SUMMARY Public Service Company of Colorado (PSCo), an Xcel Energy company, is requesting easements within four Natural Areas owned by the City of Fort Collins Natural Areas Department (NAD) to construct, operate, and maintain approximately 2.6 miles of 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. As proposed, approximately 2.6 miles of the gas transmission pipeline will require new easements to cross four City Natural Areas: Coyote Ridge, Colina Mariposa, Hazaleus, and Kingfisher Point. Existing easements for the gas pipeline are located within Kingfisher Point and portions of Coyote Ridge. The portion of the pipeline to be constructed within NAD properties will affect approximately 31 acres. All areas impacted by the proposed project will be restored as outlined in NAD’s Resource Protection Standards. Existing vegetation not otherwise avoided by boring is dominated by non-native grasslands that have low resource value. Restoration of the alignment will utilize only native grasses and forbs. PSCo recognizes the impacts this project will have on the City of Fort Collins streets and traffic and on the Natural Areas. PSCo is offering $2,000,000 as mitigation for the impacts and as compensation for the easements across the four natural areas. Additionally, PSCo is offering “in kind” projects and services as additional compensation valued by PSCo at approximately $650,000. If the Natural Area easements are not granted, PSCo will construct the pipeline in the street right-of-way which would have greater impacts on traffic, on the street infrastructure and on the ease and safety of future maintenance work due to the proximity to other utilities in the street right-of-way. The $2,000,000 in mitigation funds, which includes $172,652 in compensation to Natural Areas, may be used to fund the construction of a 10 foot wide concrete regional trail along the east side of Shields Street from Fossil Creek Drive south towards Loveland across natural areas that are being disturbed due to the gas line project or the City Council may decide to use the funds for other purposes. If Council decides to use the funds for other purposes, Natural Areas would legally need to receive the $172,652 in compensation. COPY COPY COPY COPY January 15, 2013 -2- ITEM 15 BACKGROUND / DISCUSSION In late 2011, PSCo approached NAD to discuss the West Main Project and the need to replace an existing natural gas pipeline located within several City-owned Natural Areas. This discussion also revealed several major streets within the City would be impacted by the project. As such, City staff from several departments worked with PSCo to discuss the proposed alignment and to discuss alternative alignments that minimized impacts to the City. The proposed Project is an important part of PSCo’s service plan to upgrade the existing natural gas transmission system along the northern Colorado Front Range with new natural gas pipelines that meet current safety, service, capacity, and reliability requirements while also meeting the increasing demand for natural gas in Larimer County. The existing 83-year old natural gas pipeline has reached the end of its service life, requires safety upgrades, and cannot reliably meet the growing system demands to deliver natural gas. A component of the review process is to evaluate potential impacts to natural and cultural resources found within the Natural Areas along the proposed route. In addition, NAD requested PSCo evaluate alternate routes that avoided or minimized impacts to Natural Areas. A summary of the natural resource surveys and alternate route analysis is provided below. Biological and Vegetation Resources Four separate field surveys were conducted within the Natural Areas to understand the natural resource values within the proposed and alternate alignments. The survey area for the project is a 1000-foot wide strip centered on the proposed alignment. The initial site survey was conducted between March 22 and April 1, 2012, with a follow-up survey on April 13, 2012. The purpose of this survey was to perform a general reconnaissance of the land to be affected by the project, both within and outside of the Natural Areas. Each Natural Area along the route was surveyed. At the request of NAD, a second survey (June 18, 2012) occurred within Coyote Ridge and Cathy Fromme Prairie to conduct a formal wetland delineation of the area. Additionally, a general biological survey was conducted to help identify alternate pipeline alignments that reduced impacts to natural resources. The third field survey was conducted (August 3-9, 2012) to determine if habitat suitable for threatened and endangered species was found within or near any alignment. Species considered for this survey included Ute ladies’ tresses (Spiranthes diluvialis Sheviak), Colorado butterfly plant (Guara neomexicana ssp. coloradensis) and the Preble’s meadow jumping mouse (Zapus hudsonius preblei). No species or suitable habitat was found within the survey area. The U.S. Fish and Wildlife Service concurred with PSCo’s determination that federally listed species are unlikely to be adversely affected by the project. The fourth survey (September 25 and October 6, 2012) was conducted to delineate wetlands on the remaining Natural Areas in the project area. Five basic vegetation types were identified in the surveys: native mixed grass prairie; agricultural lands; riparian, palustrine emergent wetlands, and disturbed/developed lands. Native grasslands were limited along the alignments and described as low-quality patches of native grass species often interspersed or surrounded by development. The vast majority of grasslands within the alignment are dominated by non-native species, predominately smooth brome (Bromus inermis). Wetlands are found along drainages crossed by the proposed alignment. PSCo intends to avoid impacts to the wetlands by boring beneath the wetlands. Surface disturbance from the bores will occur in the upland areas dominated by non-native grasses. The U.S Department of Army, Corps of Engineers reviewed the project in accordance with Section 404 of the Clean Water Act and determined that a Department of Army permit would not be required for the project. COPY COPY COPY COPY January 15, 2013 -3- ITEM 15 Cultural Resource Surveys A file search was conducted by the Colorado Historic Society’s Office of Archaeology and Historic Preservation (OAHP) to evaluate known cultural resources within one mile of the proposed and alternate routes. The OAHP database contains records of all cultural resources investigations that have been conducted. The Class I survey revealed one potentially eligible site located within 500 feet of the proposed alignment. This site is the Colorado Central Railroad (5LR173.1) located on the eastern side of Shields Street in the County-owned Long View Open Space. This site is not within the proposed alignment and will not be impacted by the project. If any previously unknown historic or prehistoric site or artifact is discovered during construction activities, all land altering activities will be suspended until such time that appropriate measures can be taken to ensure compliance with the National Historic Preservation Act. Alternative Alignment Analysis Several alternatives to the proposed alignment were evaluated as outlined in the Natural Area and Conserved Lands Easement Policy (Easement Policy). Each is summarized below: Taft Hill Road. The project was initially proposed to enter into the City along Taft Hill Road and cross portions of Coyote Ridge and Cathy Fromme Prairie and would require approximately one mile of new gas pipeline to be constructed across Cathy Fromme Prairie to connect with the existing valve stations located along Shields Street. This connection would also have resulted in a new above ground valve set or regulator station within Cathy Fromme Prairie. Cathy Fromme Prairie. The project was initially proposed to cross the eastern portion of Cathy Fromme Prairie just to the west of Shields Street. PSCo proposed to construct the gas pipeline by boring under a large portion of the property. However, upon completion of biological, geotechnical, cultural and utility surveys and an engineering feasibility assessment, the decision was made to avoid this site and construct the gas pipeline within the existing Shields Street alignment. The assessment indicated that it was not feasible to bore underneath Cathy Fromme without extensive surface grading and subsequent impacts to native vegetation, and the removal of several mature trees on the north side of Fossil Creek. Long View Farm Open Space. In consideration of a possible trail construction project following the gas pipeline project, NAD requested that PSCo evaluate crossing Long View Farm east of Shields Street as opposed to crossing Coyote Ridge located west of Shields Street. This would place the gas pipeline project in the same location as the proposed alignment for a planned regional trail. This alignment was not feasible due to lack of available space caused by the Union Pacific Railroad rights-of-way and Platte River Power Authority’s buried transmission line and related induced current hazards. U.S. 287. This alternative was eliminated primarily based on the fact it is more than one mile from the existing natural gas pipeline and would require considerable additional connection facilities (new gas pipelines and regulator stations). Parallel Union Pacific Railroad near Timberline Road. This alternative would have minimized impacts to the streets by avoiding Timberline Road by aligning the natural gas pipeline parallel and adjacent to the Union Pacific right-of-way west from Horsetooth to Prospect Road, although it would not have reduced impacts to the natural areas. This alternative was eliminated based on the proximity of other utilities which precluded the siting of the natural gas pipeline immediately west of the existing railroad, and the railroad right-of-way occupies the undeveloped portion immediately east of the existing railroad. Natural gas pipelines are prohibited within the railroad right-of-way. Based on the alternative route evaluation, the current proposed alignment was selected and will cross Coyote Ridge (1 mile), Colina Mariposa (1 mile), Hazaleus (0.62 mile) and Kingfisher Point (0.56 mile in right-of-way adjacent to Kingfisher and 0.16 mile within Kingfisher). The easement request and impacts to natural resources are discussed below for each Natural Area: COPY COPY COPY COPY January 15, 2013 -4- ITEM 15 Coyote Ridge Natural Area Existing Easements PSCo has an existing easement (dated May 31, 1929) in the northeast quarter of Section 27, T6N, R69W (see Attachment 2). This easement is considered a “blanket” easement in that it allows for parallel pipelines to be constructed anywhere within this quarter section for the transportation of oil and gas. As discussed in the Easement Policy, properties owned by the City are often subject to easements granted by prior owners. In these circumstances, the Policy directs staff to work with the easement owner to try and establish terms and conditions or specific project plans consistent with the terms of the Policy in connection with any such prior easements or rights-of-way. Though PSCo does not require a new easement to cross this portion of Coyote Ridge, PSCo has worked with NAD staff to reduce the size of the easement necessary to construct and maintain the gas pipeline (50-foot wide) and to replace the existing easement with a new easement that is more consistent with City standards. Also, PSCo conducted all the required surveys to help establish two alignment alternatives. The preferred alignment shown in Attachment 2 is in the general location of the current gas pipeline. However, this alignment is within the buffer areas of two mammal dens and two raptor nests. If the dens and/or nests are occupied during the construction period, PSCo will consult with NAD to determine if the best approach is to move to an alternative alignment outside of the buffer zones, construct during allowable timeframes (outside of nesting or denning seasons), or bore beneath the den and nest area, staying outside of the buffer zones. Once the pipeline is constructed, the legal description describing the new 50-foot utility easement alignment, which will be within the existing blanket easement, will be prepared, and PSCo will then vacate or terminate the existing blanket easement. New Easements PSCo is requesting a new 50-foot wide non-exclusive utility easement (6.035 acres) and one temporary construction easement over three locations as shown in Attachment 2. The locations of the temporary construction easements include a 25-foot wide area paralleling the permanent easement (3.018 acres), and two 60,000 square foot areas (2.674 acres total) to support the boring operation and for equipment and material storage. The proposed permanent easement is located adjacent to and paralleling the existing Shields Street rights-of-way and is outside of the anticipated future roadway. Shields Street will be widened to an arterial 4-lane street according to the 2010-2011 update of the Master Street Plan. The proposed easement is located within a wheat field and no native vegetation exists. All topsoil will be removed prior to construction, stored on site, and replaced after project completion. The site will return to agricultural activities until restored to native grasslands by NAD in the future. Colina Mariposa Natural Area Existing lease PSCo leases land from the City for the existing “Shaft” valve set (See Attachment 3). The lease was entered into in 1993 by the previous owner of the property, and features an annual term with the ability for PSCo to perpetually renew the lease as long as they pay the lease payment on time. New Easements PSCo is requesting one permanent exclusive utility easement for the area of the “Shaft” valve set to replace the existing lease (0.135 acre), one 50-foot wide permanent non-exclusive easement (6.033 acres), and one temporary construction easement over six locations as shown in Attachment 3. The temporary construction easement includes a 25-foot wide area paralleling the permanent non-exclusive easement (2.924 acres), five small areas totaling approximately 0.177 acres to allow for construction access, and a 28,576 square foot (0.656 acre) area to support boring operations and for material and equipment storage. The proposed permanent non-exclusive easement is located adjacent to the existing Platte River Power Authority easement and underground transmission line. Vegetation within the easements consists of non-native grasses dominated by smooth brome. Few scattered low quality patches of native mixed grass occur within the area. Two wetlands were delineated within the easement alignment on this property. PSCo will bore underneath the wetlands to avoid impacts to this sensitive habitat. Upland COPY COPY COPY COPY January 15, 2013 -5- ITEM 15 areas impacted by the project will be restored to native grasslands as outlined in the General Resource Protection Standards. Hazaleus Natural Area New Easements PSCo is requesting a 50-foot wide permanent non-exclusive utility easement (3.811 acres), one 25-foot wide temporary easement across the western boundary of Hazaleus and one temporary construction easement over five locations as shown in Attachment 4. The temporary construction easements consist of a 25-foot wide area paralleling the permanent non-exclusive easement (1.905 acres), a 60,000 square foot area (1.337 acre) and a 95,800 square foot area (2.199 acre) to support boring operations and for equipment and material storage, and three small areas totaling approximately 0.09 acres for temporary construction access. The proposed permanent easement is located adjacent to the existing rights-of-way paralleling Shields Street and is outside of the future roadway as described in the 2010-2011 update of the Master Street Plan. The proposed easements are located within an upland non-native plant community dominated by smooth brome. Two delineated wetlands are located within the easement alignment. PSCo will bore underneath the delineated wetlands and avoid impacts to these sensitive habitats. The project site does occur within the 1/4 mile buffer area of a red-tailed hawk nest. If the nest is occupied, construction activity will not occur in the buffer area between March 1 and July 15. Uplands impacted by the project will be restored as outlined in the General Resource Protection Standards. Kingfisher Point Natural Area Existing Easements and Right of Way The existing gas pipeline is found within an existing undeveloped road right-of-way and a license area across Kingfisher Point that was in place when the City purchased the property (see Attachment 5). The intent of the project is for the gas pipeline to remain in the same general alignment. However, PSCo must obtain approval from the Army Corps of Engineers and the City Floodplain Administer to cross an existing levee along the Cache La Poudre River. If approval is not obtained, the proposed alignment must be routed around the levee and the easement alignment modified. NAD plans to seek the vacation of the existing old road right-of-way across Kingfisher Point, which contains three utility lines. One is a PSCo buried electrical line, and the remaining two are City of Fort Collins buried utility lines. PSCo has no object to such vacation. The existing License agreement will be terminated as well, once the new easements are in place. Vegetation within the gas pipeline alignment is a mixture of non-native and native dominated grasslands and grass/shrubland mix. Construction of the pipeline will utilize two methods: open trenching within the existing road right-of-way paralleling Timberline Road from the levee south to the Kingfisher property boundary; and boring beneath the existing undeveloped road right-of-way from the levee north and underneath the Cache la Poudre River to the north bank. The use of boring will avoid disturbance to the restored grassland on Kingfisher Point, the Poudre River Trail, and riparian and riverine habitat along the Cache la Poudre. Open trenching will impact native grasslands and shrublands that occur within the existing right-of-way adjacent to Timberline Road. Impacts to the site will be restored using native grasses and shrubs as outlined in the General Resource Protection Standards. Also, Timberline Road is identified to be widened to an arterial 4-lane road according to the 2010-2011 update of the Master Street Plan. The restored site will be impacted if Timberline is widened as planned. New Easements Two 50-foot wide permanent non-exclusive utility easements will be required once the existing right of way is vacated and the License Agreement is terminated. One easement will be for the gas pipeline constructed as part of the West Main Project and the second will be for PSCo’s existing underground electrical line. Though PSCo does not require new easements to cross this portion of Kingfisher Point, PSCo has worked with NAD staff to replace outdated and less desirable agreements with contemporary easement agreements that are more consistent with City standards. COPY COPY COPY COPY January 15, 2013 -6- ITEM 15 FINANCIAL / ECONOMIC IMPACTS PSCo recognizes the impacts this project will have on the City of Fort Collins streets and traffic and on the Natural Areas. PSCo is offering $2,000,000 as mitigation for the impacts and as compensation for the easements across the four Natural Areas. The value of the total compensation for the easements is $172,672, broken down as follows: easements value appraised at $83,557 (permanent easement valued on average at $5,515/ac; temporary at $880/ac); Ecosystem Impact Fees were calculated to be $23,155; and the Restoration Maintenance Fees were calculated to be $65,940. As outlined in the Easement Policy, PSCo has provided $7,500 to reimburse NAD for staff time and expense to administer the easement process. Staff continues to track time spent on this project and will be reimbursed for any additional time. As such, the total compensation value to NAD may need to be adjusted upward to cover additional staff time and expense to administer the easement process. The $2,000,000 in mitigation funds, which includes $172,652 in compensation to Natural Areas, may be used to fund the construction of a 10-foot wide concrete regional trail along the east side of Shields Street from Fossil Creek Drive south to Loveland across Natural Areas that are being disturbed due to the gas line project or for other uses as determined by City Council. Additionally, PSCo is offering the following “in kind” projects and services as additional mitigation valued by PSCo at approximately $650,000: • $155,200 - Value of an existing utility easement across Meadow Springs Ranch that PSCo will Quit Claim to the City. • $60,000 – PSCo provided surveys, engineered plan and profile, and geotechnical information to the City for future trail planning and design. • $120,000 – PSCo will attempt to acquire rights-of-way for the regional trail across private properties south of Fossil Creek. This value includes the staff time to obtain and the anticipated cost to acquire the easements. • $317,000- PSCo will terminate or vacate the existing blanket easement across Coyote Ridge and existing defined license area across Kingfisher Point in exchange for the defined easements across the properties. PSCo has identified the value added to the City by removing substantial encumbrances to the title of NAD property. ENVIRONMENTAL IMPACTS The proposed alignment for the project was selected based on the mitigation hierarchy to avoid, minimize and mitigate impacts to natural resources. Several alignment alternatives were evaluated based on engineering feasibility and anticipated impacts from the project. The current alignment was selected as it avoids several impacts relative to alternate alignments. Site specific surveys were conducted to better understand vegetation and wildlife resources within and near the proposed alignment. This information was used to refine the site selection, establish timing limitations if needed, and to help identify key natural resources to avoid. This information was used to identify areas where construction techniques such as boring can be used to avoid impacts. Some impacts from a project of this scope and scale are inevitable, and PSCo will be compensating the City for the lost Ecosystem Goods and Services from the project. All areas impacted by the proposed project will be restored as outlined in NAD’s General Resource Protection Standards. Existing vegetation not otherwise avoided by boring is dominated by non-native grasslands that have low resource value. Restoration of the alignment will utilize only native grasses and forbs. If approved by City Council the 10-foot wide concrete regional trail will be constructed across Hazaleus and Colina Mariposa Natural Areas within the area disturbed by the gas line project, which will eliminate the disturbance of constructing the trail in the future. STAFF RECOMMENDATION Staff recommends adoption of the Ordinances on First Reading. COPY COPY COPY COPY January 15, 2013 -7- ITEM 15 BOARD / COMMISSION RECOMMENDATION The West Main Project was discussed with the Land Conservation and Stewardship Board (LCSB) during the October 10, 2012, September 12, 2012, and August 10, 2012 meetings (see Attachment 7). NAD staff will request a formal recommendation from the LCSB to City Council at its January 9, 2013 meeting. The recommendation and minutes from this meeting will be provided to Council in the Read-Before packet provided for the January 15, 2013 City Council meeting. PUBLIC OUTREACH Three open houses were held in Larimer County to share the overall plan with the public. A total of 3,409 property owners within 750 feet of the preferred and alternate pipeline routes within Fort Collins were notified of the meetings. Open houses were held as follows: • February 29, 2012 at the Walt Clark Middle School in Loveland from 4 to 7 pm. • March 8, 2012 at the Fort Collins Marriott in Fort Collins from 4 to 7 pm • October 25, 2012 at the Lincoln Center in Fort Collins from 4 to 7 pm A Meeting Summary Report for each open house is provided as Attachment 6. In addition, a West Main project website (www.xcelenergywestmainpipeline.com) was created to provide updated information on the project and related open houses. ATTACHMENTS 1. Project Location Map 2. Coyote Ridge NA PSCo Existing and New Easements Location Map 3. Colina Mariposa NA Shaft Valve Set and New Easements Location Map 4. Hazaleus NA New Easements Location Map 5. Kingfisher Point NA ROW Vacation, License, and New Easements Location Map 6. Meeting Summary Reports 7. Land Conservation and Stewardship Board minutes MINUTES CITY OF FORT COLLINS LAND CONSERVATION & STEWARDSHIP BOARD Regular Meeting DATE: Wednesday, January 9, 2013 LOCATION: 215 N Mason Street, Conference Room 1-A TIME: 6:00 p.m. For Reference: Trudy Haines, Chair - 225-2760 Aislinn Kottwitz, Council Liaison - 692-9915 Mark Sears, Staff Liaison - 416-2096 Board Members Present - K-Lynn Cameron, S. Kathryn Grimes, Michelle Grooms, Trudy Haines, Linda Knowlton, Kent Leier, Scott Quayle, Edward Reifsnyder, Linda Stanley Board Members Excused – All members present Staff Present – John Stokes, Mark Sears, Daylan Figgs, Kristin Powell, Tawnya Ernst Guests – Craig Foreman (Parks Planning), Stephanie Phippen (Tetra Tech), Randy Blank (Xcel), Dan Tekavec (Xcel), Todd Anderson ________________________________________________________________________ I. Xcel Gas Line Easements – Recommendation to Council Introductions: Randy Blank – Xcel Energy, Project Manager, West Main Pipeline Project Stephanie Phippen – Tetra Tech Dan Tekavec – Xcel Energy, ROW Project Manager Todd Anderson – Area Manager for Northern, CO Daylan Figgs: Tonight I’m going to give another project update and ask for an official recommendation on the easements from the Board, there are a series of recommendations for permanent and temporary easements across four Natural Areas, I will provide some brief background information on the project and then discuss the easements property by property. The West Main Project is designed to replace an existing 8” gas pipeline with a 16” high pressure gas pipeline. Public service has roughly .9 miles of existing easements in place ATTACHMENT 2 Land Conservation & Stewardship Board Wednesday, January 09, 2013 Page 2 of 5 and they are requesting about 2.6 miles of new easements across Natural Areas property. The purpose of the easements is to build, operate, and maintain the pipeline. In previous meeting we have discussed the biological and vegetation resources along the line. I will revisit those details again tonight, discuss the cultural resources, and show the alternative analysis conducted. I will show how we have worked to avoid and minimize impacts to the natural and cultural resources. There are two categories for minimizing impacts timing limitations around nests and den sites and boring under sensitive areas such as wetlands and riparian areas. The project enters the Natural Areas at Coyote Ridge runs parallel to Shields Street to Horsetooth, crossing Coyote Ridge, Colina Mariposa, and Hazaleus working its way north to Kingfisher Point Natural Area. Coyote Ridge (Daylan): There is a blanket easement that allows for oil and gas pipelines to be anywhere within the easement location. There are a few raptor nests and mammal dens in the area of the blanket easement. We will continue to monitor and make adjustments to the alignment as we know the status of the biological resources in the area. We will make our decision based on the timing of the project. The request on Coyote Ridge includes 1) redefine and issue a 50’ easement for the pipeline; 2) public service has agree to vacate the blanket easement and replace it with a 50’ easement; 3) a 25’ temporary easement that parallels the permanent easement; and 4) temporary use areas for storage. Colina Mariposa (Daylan): Xcel is asking for a 50’ permanent easement and a 25’ temporary easement. The wetland on Colina Mariposa will be bore under and come out in the upland which is a grassland dominated by smooth brome. There are several temporary access easements being requested. In the south portion of the site there is an existing valve set that is currently allowed under a lease and we would prefer to replace lease with an exclusive easement. Michelle Grooms: What is the difference between the two? Daylan Figgs: They function roughly the same way but the easement will be less of an administrative process. Hazaleus NA (Daylan): Smooth brome dominated property, asking for a 50’pernanent easement, a 25’ temporary easement, and a series of temporary access easements and temporary use areas. The wetlands on Hazaleus will be bored underneath. Near the old farmstead there is a raptor nest that will initiate the need for timing restrictions assuming the nest is occupied. Kathryn Grimes: Will boring be done 24 hours a day or just during day light? Randy Blank: We will try and work during the day. I don’t anticipate needing to do night work in this area. In town we might have to but not in this area. Michelle Grooms: Does the boring cause significant vibrations on the surface of the ground? Randy Blank: There might be a little vibration but generally we are deep enough to not cause significant vibrations. Land Conservation & Stewardship Board Wednesday, January 09, 2013 Page 3 of 5 Mark Sears: You would be able to hear the boring machinery. Daylan Figgs: We will avoid the area during nesting. The areas being impacted by project will be restored by Public Service. Kathryn Grimes: Will there be above ground structures in the yellow squares (on map)? Daylan Figgs: No above ground structures will be associated with the project on our areas. There will be some above ground markers that mark the pipeline. The existing valve set will remain in place. Linda Stanley: Has anything changed from previous presentations? Daylan Figgs: There has been a little fine tuning but nothing has changed. Kingfisher Point Natural Area: There are existing easements across the property. There is an existing right-of-way that Xcel will stay within along Timberline, there is an old right-of-way crossing Kingfisher that predates our ownership, Public service has an electric line in it, the gas line will go in it, and there is a sewer and water line in it as well. We want to vacate the right-of-way and issue two easements one for the new gas line and one for the buried electric line. There is a license agreement for where the current gas line exists and we will vacate that as well. We are going to narrow these blanket type easements. We want to vacate the right-of-way so we can control who comes through the property. We may have to adjust the location of the easements depending on if Xcel gets approval to bore under the levee. Mitigation (Daylan) – Cash payment to the City of $2 million, mitigates impacts to the Natural Areas and the City as a whole. There are also in-kind payments. Trudy Haines: Very nice mitigation, thank you. Does that include the restoration or is restoration on top? Daylan Figgs: The initial restoration is in addition to the mitigation contribution. Kathryn Grimes: Who does the physical restoration? Randy Blank: We will probably use Erosion Control of Colorado. Daylan Figgs: Part of the in-kind contributions includes vacating a utility easement across Meadow Spring Ranch. Michelle Grooms: Where is the $2 million going? Daylan Figgs: It was based on the initial idea of building a trail across Colina Mariposa, Hazaleaus to Loveland but it is up to City Council to make the decision. Daylan Figgs: Our easement policy sets the amount of money we charge for easements. Xcel paid an upfront administration fee of $7,500; the value of the easements / easements fee is $83, 557; the restoration and maintenance fee is $65, 940; Ecosystem Impact Fee is $23, 155. Our total compensation at a minimum is $172, 672. Kathryn Grimes: Is this the final? Daylan Figgs: It will go up a little more because of the administration fee. Mark Sears: The $2 million won’t go up, depending on what Council decides to do with the $2 million, $172K will have to come to Natural Areas. Michelle Grooms: What are the other impacts that bring the mitigation price tag to $2 million? Land Conservation & Stewardship Board Wednesday, January 09, 2013 Page 4 of 5 Daylan Figgs: Based on a couple of things including traffic impacts. There is also a significant cost saving by staying in the natural areas. The savings is about $2 million. Part of the mitigation is recognizing the savings Public Service is getting by going through the Natural Areas. Linda Stanley: Which is why I think a lot of the money should go to Natural Areas. Mark Sears: That is why we suggested it as a recommendation you might want to make. Trudy Haines: It is not clear in the memo that the cost saving is due to going through the Natural Areas. How much will the trail cost? Daylan Figgs: Approximately $2.2 million Mark Sears: If it goes all the way to 57 th Street it will be quite a bit more. Part of completing the trail might become Loveland’s responsibility. Daylan Figgs: We want the board to consider a recommendation to council addressing the easement we just covered. Linda Knowlton: It does not include our opinion about what to do with the $2 million mitigation dollars. Daylan Figgs: If there is a suggestion you would like to make I would encourage it. John Stokes: The AIS to Council includes a staff recommendation for the expenditure. Trudy Haines: Important to point out to council that the savings incurred are because the pipeline is going through the NAs and not through streets. Our opinion is that the program and the people should benefit from that because there is a cost when we go through a NA. Linda Stanley: Moved that the Land Conservation and Stewardship Board recommend that City Council authorize the following utility easements for the Xcel Energy West Main Pipeline Project: • A non-exclusive utility easement and a temporary construction easement on Coyote Ridge Natural Area to Public Service Company of Colorado. • An exclusive utility easement, a non-exclusive utility easement, and a temporary construction easement on Colina Mariposa Natural Area to Public Services Company of Colorado. • A non-exclusive utility easement and a temporary construction easement on Hazaleus Natural Area to Public Service Company of Colorado. • Two non-exclusive utility easements on Kingfisher Point Natural Area to Public Service Company of Colorado With the addition that we also recommend that Council approve the spending of the $2,000,000 in mitigation funds offered by PSCo on the construction of the 10’ wide concrete regional trail along the east side of Shields Street from Fossil Creek Drive south towards Loveland as far as the funds will allow. Trudy will explain in a Memo to Council the rational due to the cost saving incurred because of the use of Natural Areas. Linda Knowlton: Second Land Conservation & Stewardship Board Wednesday, January 09, 2013 Page 5 of 5 Discussion: Linda Stanley: I would like to say that the whole process has been pretty painless because Xcel has been willing to work with the City and Daylan. I think you all have done a great job and good work. Dan Tekavec: I would like to complement the process as well. We feel we have had good quality discussions about the project and good negotiations. Kathryn Grimes: I appreciate that Xcel has listened to what we had to say. Randy Blank: When you say we are saving money by going into NA that is true, but as Xcel Energy Public Service Company we want to do things as safely as we can, we want to put the pipeline in the safest location possible. Once the pipeline goes in, it will be in operation for a long time and being out of harms-way outside of the road right-of-way is the better place for it. There is benefit there as well. We are motivated more by safety than cost savings. Ed Reifsnyder: What is the estimated life expectancy of the pipeline? Randy Blank: The one that is there now was put in in 1929, 83 – 84 years ago and that was prior to the technology that we have today. With today’s technology it could legitimately last forever but there is outside damage that could affect it. Vote: The LCSB unanimously approved the motion. RESOLUTION 2013-022 OF THE COUNCIL OF THE CITY OF FORT COLLINS DIRECTING THAT THE PROCEEDS FROM THE PUBLIC SERVICE COMPANY OF COLORADO PIPELINE PROJECT BE USED FOR TRAILS AND NATURAL AREAS WHEREAS, on February 5, 2013, the City Council adopted Ordinance Nos. 008, 009, 010 and 011, 2013, authorizing the conveyance of easements across four City-owned Natural Areas Department properties (the “Easements”) to Public Service Company of Colorado (PSCo) as part of PSCo’s West Main Natural Gas Pipeline Replacement Project (the “Project”); and WHEREAS, PSCo has agreed to pay the City $2,000,000 as compensation for the Easements and mitigation for the impacts of the Project on the City’s natural areas (the “PSCo Payment”); and WHEREAS, City staff is requesting that the City Council restrict the uses of the PSCo Payment to trail construction or natural areas purposes or both; and WHEREAS, using the PSCo Payment for trails would allow key sections of the City’s trail system to be completed sooner than currently estimated; and WHEREAS, using the PSCo Payment for natural areas would enable the Natural Areas Department to pursue projects that would otherwise have to be delayed, bypassed, or reduced in scope; and WHEREAS, the City Council believes it is in the best interests of the City that the PSCo Payment be used for trails or natural areas. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the $2,000,000 payment from PSCo shall be spent only on trails or natural areas or both. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 19th day of March A.D. 2013. Mayor ATTEST: City Clerk