HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 07/19/2016 - FIRST READING OF ORDINANCE NO. 092 , 2016, AUTHORIAgenda 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
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)
Northern
Colorado
Regional
Airport
Crossroads
ÃSubstation
County Road 30
Boyd Lake Avenue
±
Utility Easement to City of Loveland at
Northern Colorado Regional Airport
Location Map
Easement Location
ATTACHMENT 1
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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
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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
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Passed and adopted on final reading on the 16th day of August, A.D. 2016.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk