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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 08/16/2016 - SECOND READING OF ORDINANCE NO. 092, 2016, AUTHORIAgenda Item 6 Item # 6 Page 1 AGENDA ITEM SUMMARY August 16, 2016 City Council STAFF Helen Matson, Real Estate Services Manager Jason Licon, Airport Director SUBJECT Second Reading of Ordinance No. 092, 2016, Authorizing the Conveyance of a Permanent Utility Easement and a Temporary Construction Easement on City Property at the Northern Colorado Regional Airport to the City of Loveland. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on July 19, 2016, authorizes the conveyance of a permanent utility easement and a temporary construction easement to the City of Loveland at the Northern Colorado Regional Airport. The City of Fort Collins and the City of Loveland each own a 50% interest in the Airport property. The City of Loveland is extending its electrical service to this area. The proposed permanent easement area borders Boyd Lake Avenue and County Road 30 and the temporary construction easement is along the easement on County Road 30. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary, July 19, 2016 (PDF) 2. Ordinance No. 092, 2016 (PDF) Agenda Item 9 Item # 9 Page 1 AGENDA ITEM SUMMARY July 19, 2016 City Council STAFF Helen Matson, Real Estate Services Manager Jason Licon, Airport Director SUBJECT First Reading of Ordinance No. 092, 2016, Authorizing the Conveyance of a Permanent Utility Easement and a Temporary Construction Easement on City Property at the Northern Colorado Regional Airport to the City of Loveland. EXECUTIVE SUMMARY The purpose of this item is to authorize the conveyance of a permanent utility easement and a temporary construction easement to the City of Loveland at the Northern Colorado Regional Airport. The City of Fort Collins and the City of Loveland each own a 50% interest in the Airport property. The City of Loveland is extending its electrical service to this area. The proposed permanent easement area borders Boyd Lake Avenue and County Road 30 and the temporary construction easement is along the easement on County Road 30. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION The City of Fort Collins and the City of Loveland jointly own the property known as the Northern Colorado Regional Airport. The City of Loveland is planning to install an underground electrical utility line from its Crossroads Substation on Boyd Lake Road heading north to County Road 30. At County Road 30, its plan is to take the underground utility line east to Interstate 25. The new underground utility service is being done to serve the growing development in the area. Normally these utilities would be placed in the road right-of-way; however, neither Boyd Lake Avenue nor County Road 30 has been built to their ultimate widths. Until the roads are built to their ultimate widths, utilities need to be placed in privately owned property. Due to this, Loveland has requested an underground utility easement from the City of Fort Collins along both Boyd Lake Road and County Road 30, on the Airport property. In addition, the City of Loveland is requesting a 6-foot temporary construction easement on the south side of the easement that is proposed to run along County Road 30. CITY FINANCIAL IMPACTS In accordance with Sec. 23-114 of the Municipal Code, any conveyance of City real property must be for an amount equal to or greater than the fair market value. The estimated market value of the City's 50% ownership in the requested easements is $21,200. The installation of this underground electrical line benefits the City in many ways. Currently the area electrical is provided by overhead utility lines. The new line will be placed underground and the existing poles that are no longer needed will be removed. The location of the poles to be removed are in the area of the flight way. It ATTACHMENT 1 Agenda Item 9 Item # 9 Page 2 has been a policy of the City to have utility service changed to underground and as many poles removed as possible. The new underground electric service will improve reliability of the power service in the area. The Airport receives its power from the City of Loveland. This new service will provide a loop back to the Airport to improve redundant service to the Airport and will improve the ability to improve our distribution system in the future. This will be a benefit to the citizens of Fort Collins. The City of Loveland will be responsible for all costs of installing the underground utility lines and will continue to be responsible for all future maintenance and repair of the line. Along with these responsibilities the City of Loveland will be responsible to restore the temporary construction easement to a condition similar as when granted. ATTACHMENTS 1. Location map (PDF) -1- ORDINANCE NO. 092, 2016 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE CONVEYANCE OF A UTILITY EASEMENT AND A TEMPORARY CONSTRUCTION EASEMENT ON CITY PROPERTY AT THE NORTHERN COLORADO REGIONAL AIRPORT TO THE CITY OF LOVELAND WHEREAS, the City of Fort Collins and the City of Loveland (“Loveland”) jointly own property located in Loveland known as the Northern Colorado Regional Airport (the “Property”); and WHEREAS, Loveland plans to install a new underground electrical line to serve development in the area of the Property, and wishes to place the line in a new easement on the Property adjacent to both Boyd Lake Road and County Road 30; and WHEREAS, the location of the proposed easement is described on Exhibit “A”, attached and incorporated herein by reference (the “Easement”); and WHEREAS, Loveland is also requesting a temporary construction easement adjacent to the Easement along County Road 30, as described and shown on pages 4 through 6 of Exhibit A (the “TCE”); and WHEREAS, the approximate fair market value of the City’s 50% ownership interest in the Easement and TCE areas is $21,200; and WHEREAS, staff is recommending that the City not charge Loveland for the Easement and TCE as the conveyance of these interests serves a bona fide public purpose under Section 23-114 of the City Code because:  The use to which the Easement will be put promotes safety and general welfare and benefits the citizens of Fort Collins by (1) allowing existing overhead lines and power poles to be removed from the Property so they will no longer be in the flight way; and (2) providing options for the Airport to improve its electrical service in the future;  The Council supports the undergrounding of electric utilities through adoption of the Electric Service Standards and annual appropriation of funds for the undergrounding of City utilities, and the use to which the Easement will be put supports this City Council policy;  The financial support provided by the City through the below-market disposition of the Easement and TCE will be leveraged by Loveland with other funding or assistance;  The conveyance of the Easement and TCE will not result in any direct financial benefit to any private person or entity; and -2-  Conveying the Easement and TCE for less than fair market value will not interfere with current City projects or programs, hinder workload schedules or divert resources needed for primary City functions or responsibilities; and WHEREAS, Section 23-111(a) of the City Code authorizes the City Council to sell, convey or otherwise dispose of any interest in real property owned by 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 makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That the City Council hereby finds that the City’s conveyance of the Easement and TCE to Loveland as provided herein serves a bona fide public purpose and is in the best interests of the City. Section 3. That the Mayor is hereby authorized to execute such documents as are necessary to convey the Easement and TCE to Loveland on terms and conditions consistent with 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 Easement or TCE, as long as such changes do not materially increase the size or change the character of the interests to be conveyed. Introduced, considered favorably on first reading, and ordered published this 19th day of July, A.D. 2016, and to be presented for final passage on the 16th day of August, A.D. 2016. __________________________________ Mayor ATTEST: _______________________________ City Clerk -3- Passed and adopted on final reading on the 16th day of August, A.D. 2016. __________________________________ Mayor ATTEST: _______________________________ City Clerk