HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 09/05/2017 - FIRST READING OF ORDINANCE NO. 126, 2017 AUTHORIZIAgenda Item 19
Item # 19 Page 1
AGENDA ITEM SUMMARY September 5, 2017
City Council
STAFF
Dan Gulley, Real Estate Specialist II
Tracy Ochsner, Assistant Operations Services Director
Ryan Malarky, Legal
SUBJECT
First Reading of Ordinance No. 126, 2017 Authorizing the Conveyance of a Permanent Utility Easement and a
Temporary Construction Easement on City Property Located at 625 9th Street to Public Service Company of
Colorado.
EXECUTIVE SUMMARY
The purpose of this item is to authorize the conveyance of easements to Public Service Company of Colorado
d/b/a Xcel Energy. The easements are needed relating to the Xcel Energy project to provide Compressed
Natural Gas for City vehicles, to the City Streets Department, located at 625 9th Street in Fort Collins.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
BACKGROUND / DISCUSSION
In the near future, the City Streets Department will have a Natural Gas fueling site for City vehicles, as
approved in the 2017-2018 Budget. The City entered into a Distribution Extension Agreement with Xcel Energy
to install the high pressure gas line. The easements are a necessary piece to complete the project. The
property to be encumbered by the easement is subject to a 2012 Lease Purchase Agreement between the City
and U.S. Bank National Association. The 2012 Lease Purchase Agreement allows the City to grant utility
easements if they do not materially interfere with or impair the property. This is not an issue with the proposed
gas line.
The Permanent Easement is for a high pressure transmission gas line and the actual site will be 47.89 feet X
42.37 feet. The Temporary Easement is approximately 75 feet X 300 feet allowing construction crews ample
staging area to work and install the pipeline. The Temporary Easement shall terminate upon completion of
restoration of the area or in any event no later than one year from commencement of work.
The commencement of work is anticipated to be the first week of October 2017. Once the crews are on site it
is anticipated to take approximately two weeks for Xcel Energy to complete its construction.
CITY FINANCIAL IMPACTS
The City has paid $288,975 for the construction cost in the Distribution Extension Agreement. The cost of
easements are included as part of the agreement between the City and Xcel; no further financial impacts are
expected.
Agenda Item 19
Item # 19 Page 2
ATTACHMENTS
1. Location map (PDF)
2. Xcel Energy Agreement (PDF)
CITY OF FORT COLLINS STREETS DEPARTMENT
LARIMER COUNTY SHOPS
REDWOOD ST.
E VINE DR
XCEL EASEMENT ENERGY LOCATION PERMANENT MAP
Location of Permanent Easement ±
Attachment 1
* Confidential Information - Required Field (to be filled out by the customer)
Revision February 7, 2017
1
DISTRIBUTION EXTENSION AGREEMENT
CONTRACT NO. 570682
This Distribution Main Extension Agreement, “Extension Agreement”, is between Public Service Company of
Colorado, a Colorado corporation, d.b.a. XCEL ENERGY, hereinafter referred to as “Company” and The City of
Fort Collins, a Municipality hereinafter referred to as “Applicant”. The Applicant has requested the Company
construct and install the necessary Gas Distribution Main Extension, hereinafter referred to as “Extension”, to
Plan to serve 625 9th Street in the City of Fort Collins in the County of Larimer in the State of Colorado. This
Extension Agreement is subject to the Company’s Distribution Extension Policy, as stated in the Company’s
tariffs, available for inspection at the Colorado Public Utilities Commission and on the Company’s website, and
such policy and tariffs are incorporated herein by this reference. Any capitalized term in this Extension
Agreement that is not expressly defined herein shall have the meaning set forth in our policy and tariffs.
The Company has completed the engineering design and cost estimate to provide the Extension based
upon the information Applicant has provided and the service requirements that you have requested. The
estimated total Construction Cost to provide the requested Extension is $288,975.00. Based upon the information
provided, the Company’s design for the Extension includes 1 meters and/or 45,000
Dekatherms of annual energy consumption for Gas service. Your potentially awardable Construction Allowance
for such number of meters, and/or volumes for Gas service, based on the rate schedule as applicable for the Gas
service for which the Extension is being constructed, is $0.00. The Applicant shall pay the Company the
following Construction Payment of $288,975.00 before approval of this Extension Agreement and
commencement of construction. If the terms and conditions for award of a one-time Construction Allowance, as
discussed further below, have been satisfied; the Construction Payment to be submitted should be reduced by the
Construction Allowance amount above with the Company’s approval.
The Company will not approve this Extension Agreement unless and until the following three
requirements have been satisfied: 1) execution and return to Company of this Extension Agreement by Applicant,
and of any other Enclosures that are applicable; 2) receipt by Company of the applicable Construction Payment;
and 3) receipt of one-line diagrams, load information and any other necessary information requested by the
Company in order to calculate the appropriate equipment needed to determine the Company’s estimate of the
Applicant’s load. The Construction Payment quoted above shall be effective for sixty (60) days from the
Extension Agreement Origination Date set forth below. Should this Extension Agreement not be returned to, and
accepted by, the Company within those 60 days the Construction Costs may be re-estimated and this Extension
Agreement may be terminated and replaced with a new Extension Agreement.
A Construction Allowance will be calculated and awarded to Applicant as provided by this Extension
Agreement and the Company’s aforementioned policy and tariffs. Construction Allowance will be awarded in a
one-time payment if the Company estimates a Permanent Service will be physically connected (ie. a permanent
meter will be set) within one year from the execution of this Extension Agreement. Unless and until a one-time
Construction Allowance payment is awarded by the Company, Construction Allowances will be calculated and
awarded on a per-meter and/or demand basis, when new permanent meters are set, in conformance with the
aforementioned policies and tariffs.
Applicant may be entitled to Refunds, at a later date, up-to the Construction Payment amount Applicant is
providing the Company with this Extension Agreement. Any possible Refunds will be made in accordance with
the terms and conditions of the Company’s tariffs. Refunds, if applicable, will be derived from the allocation of
Participation Fees from new applicants participating in this Extension. Participation fees, if applicable, will be
assessed by the Company from the new Applicant’s Construction Payment and based on project specifics.
In no event will a Construction Allowance be made after ten (10) years from the Extension Completion
Date, as determined from the Company’s records. However, if this Extension relates to a Natural Gas Vehicle
Fueling Station or an Electric Vehicle Charging Station, no Construction Allowance will be awardable after five
(5) years from such Extension Completion Date.
ATTACHMENT 2
* Confidential Information - Required Field (to be filled out by the customer)
Revision February 7, 2017
2
CONTRACT NO. 570682
Additional payments greater than this estimated Construction Payment may be required if customer associated
delays, obstructions, permit fees, or design changes in the field are encountered which are not included
in the original job or Construction Cost estimate. The Construction Cost stated above does not include special
items such as but not limited to frost or rock conditions. In the event the Company encounters any special items
during construction, the Company shall bill Applicant for such special items as a non-refundable contribution in
aid of construction.
This Extension Agreement does not include any Construction Cost of Service Lateral Extensions. Any
costs and payments with respect to Service Lateral Extensions will be calculated and contracted separately from
this Extension Agreement.
Applicant may not assign this Extension Agreement without the prior written consent of the Company.
Applicant agrees to execute the Company's standard right-of-way agreement granting, free of charge to
Company, any rights-of-way upon, over or under Applicant’s property that may be required for Company to
accomplish the objective of this Extension Agreement, to obtain such other rights-of-way, free of charge and on
other terms satisfactory to Company, from other parties as may be required. Applicant recognizes the Company’s
ability to perform under this Extension Agreement is contingent upon the obtaining any other rights-of-way from
other parties if required. The Company shall not be required to expend more than commercially reasonable
efforts to assist in the acquisition of any third party right-of-way.
If there is a possibility that other utilities or facilities will be installed jointly with the Extension,
Applicant must personally contact the local telephone company, the local cable TV company and/or any other
utility company to arrange for the installation and payment of any costs of their facilities.
If there is a possibility that the Extension will be constructed during frost conditions, Applicant shall
execute a Frost Agreement and return such with this Extension Agreement. Should Applicant not do so,
Applicant’s project may be delayed until frost conditions have ceased and there is no further chance of
encountering frost. Please refer to the Frost Agreement for terms and conditions of that service.
Upon the acceptance of the terms and conditions of this Extension Agreement, Applicant must return all
applicable documents to Public Service Company of Colorado, at the address shown below. The Company is
unable to accept checks with any sort of lien waiver because our tariffs do not allow it, and Applicant agrees that
any attempt to create a lien waiver in such a manner (including by any printed or stamped lien waiver on a check)
shall be ineffective and void. After an executed original of this Extension Agreement, all applicable
documentation and the Construction Payment is received and accepted by the Company and all other prerequisites
have been satisfied, a work order will be issued and released to construction so the Extension can be scheduled.
The Company’s current lead-time to begin construction after receiving the extension payment and signed
documents is approximately 15 weeks. You will be notified of which week the Applicant’s construction is
scheduled to begin. If you have any questions regarding this project, please call the Company representative at
303-571-3610.
The Company looks forward to being your energy provider.
Sincerely,
Michael Noone
Xcel Energy Gas Engineer
Extension Agreement Origination Date: April 21, 2017
Mailing address: Public Service Company of Colorado
1123 W 3rd Ave
Denver, CO 80231
* Confidential Information - Required Field (to be filled out by the customer)
Revision February 7, 2017
3
CONTRACT NO. 570682
Enclosures for this Distribution Extension Agreement are indicated below:
Contingency List Frost Agreement
Concurrence Drawing Customer Dug Trench Agreement
Non-refundable Quote Letter (if included, the amount on Extension Agreement(s) and Non-
refundable Quote Letter must be added for total cost of job.)
Applicant has reviewed and approved the terms and conditions of this Construction Agreement and accepts the
cost of $288,975.00 and this amount will be paid to Public Service Company of Colorado in full prior to the job
being scheduled for a construction date. Applicant understands additional charges may arise, and they will be
notified if this occurs. Applicant will send an original signed copy of this Construction Agreement with any
applicable agreements/documents.
Customer Account Number _53-11621445_________________________(10-13 Digit Number to use when
making payments)
Applicant: The City of Fort Collins a Municipality
*Signature: *Date: ___________________________________
*Print Name: *Title: ___________________________________
*Mailing address: ____________________________
___________________________________________
___________________________________________
*Phone: ____________________________________
Company Representative
Date: ____________________________
Name:
Milt Rasberry
Title: Director Design and Construction
Signature: _____________________________
* Confidential Information - Required Field (to be filled out by the customer)
Revision February 7, 2017
4
Xcel Energy New Payment Options for Customer Requested Projects
We’re pleased to offer additional payment options to you. Xcel Energy is looking for ways to make our partnership
with you even more convenient. Additional payment options have been suggested by many of our customers and
this tip sheet will get you started.
How to get started
Now that you’ve contacted us and worked with your local designer, here are your next steps:
Review, sign and date the contract, and return it to your designer.
Xcel Energy will then create a new billing account for this project and mail you an invoice with the amount
due.
Upon receipt of this bill statement, you are now able to use the Customer Number on the quote letter to
submit payment.
Allow 2 business days after making payment (5 business days when mailing) before contacting your
designer to confirm payment has been received and to schedule the project.
What’s changed/Things to know
If you want to send your payment overnight via Fed Ex, UPS or USPS, send the payment to the following
address:
Xcel Energy Attn: Remittance Processing
414 Nicollet Mall - # Fl
Minneapolis, MN 55401-1993
Check payment is no longer your only option. See payment options below for details
An invoice will allow for clearer documentation for payment
Your invoice will have a unique account number that is different from your electric/gas account number.
Your payment must be made using the unique account number to ensure proper processing
A tip about making payments: If you have more than one bill from Xcel Energy, please make a separate
payment for each individual bill. This will allow us to properly apply the payment to your project…and
avoid any unnecessary delays.
Payment options
Credit/Debit Card Payment
You can pay with a credit or debit card via three methods:
1. By phone – call our partner, BillMatrix, at 1-888-747-1523. You may also call us at 1-800-895-4999.
2. Online - visit our website for a link to BillMatrix and enter the necessary information for the transaction.
3. Mobile device – visit our website for a link to BillMatrix and enter the necessary information for the
transaction.
The charge appears as XCEL ENERGY PAYMENT on your card statement. Please note that a $3.45
transaction fee applies. Xcel Energy does not benefit from this fee. The maximum payment allowed for each
credit/debit card transaction is $3,000.
Pay By Phone – Make your payment at no charge by phone from your checking or savings account by calling us
at 1-800-895-4999.
My Account/eBill™ – Register at XcelEnergy.com to view/pay your bill and access account information.
Pay Stations – Pay your bill in-person at a location near you. Visit our website for pay station locations. Please
note that a $1.50 transaction fee applies. Xcel Energy does not benefit from this fee
Pay By Mail – Return the bill stub with your check payment in the provided remittance envelope. Apply proper
postage. Do not combine this payment with any other Xcel Energy bill payment.
Any payment reference number you receive will assist us in confirming your payment. If applicable, please
provide this reference number to your Xcel Energy designer. Your designer will use this information to confirm
your payment and schedule your project.
Xcel Energy
-1-
ORDINANCE NO. 126, 2017
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE CONVEYANCE OF A PERMANENT UTILITY EASEMENT
AND A TEMPORARY CONSTRUCTION EASEMENT ON CITY PROPERTY
LOCATED AT 625 9
TH
STREET TO PUBLIC SERVICE COMPANY OF COLORADO
WHEREAS, the City of Fort Collins owns property located at 625 9
th
Street, Fort Collins,
Colorado 80524, upon which is located the City’s Streets Department (the “Property”); and
WHEREAS, the Property is subject to a Lease Purchase Agreement between the City and
U.S. Bank National Association dated October 18, 2012 (the “Bank Agreement”); and
WHEREAS, the City has entered into a Distribution Extension Agreement with Public
Service Company of Colorado d/b/a Xcel Energy (“PSCo”) for the installation of a high pressure
natural gas pipeline to serve a natural gas fueling site on the Property for City vehicles; and
WHEREAS, it is necessary to grant PSCo a permanent utility easement for the gas
pipeline and a temporary construction easement to allow PSCo to install the pipeline; and
WHEREAS, the location of the proposed permanent utility easement is more particularly
described in Exhibit “A”, attached and incorporated herein by reference (the “Permanent
Easement”); and
WHEREAS, the location of the proposed temporary construction easement is more
particularly described in Exhibit “B”, attached and incorporated herein by this reference (the
“Temporary Easement”); and
WHEREAS, staff is recommending that the City not charge PSCo for the easements
because the easements are for the City’s benefit so that it may receive service from PSCo, and
the value of the easements is incorporated into the negotiated arrangements for the installation of
the gas pipeline in the Distribution Extension Agreement; 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; and
WHEREAS, the Bank Agreement allows the City to grant utility easements on the
Property as long as the City Manager certifies that such easement will not materially interfere
with or materially impair the Property.
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.
-2-
Section 2. That the City Council hereby finds that the City’s conveyance of the
Permanent Easement and Temporary Easement to PSCo as provided herein serves a bona fide
public purpose, will not materially interfere with or materially impair the Property, and is in the
best interests of the City.
Section 3. That the City Manager is hereby authorized to execute a certification to
U.S. Bank National Association as required by the Bank Agreement.
Section 4. That the Mayor is hereby authorized to execute such documents as are
necessary to convey the Permanent Easement and Temporary Easement to PSCo 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 easements, 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 5th day of
September, A.D. 2017, and to be presented for final passage on the 19th day of September, A.D.
2017.
__________________________________
Mayor
ATTEST:
_______________________________
Chief Deputy City Clerk
Passed and adopted on final reading on the 19th day of September, A.D. 2017.
__________________________________
Mayor
ATTEST:
_______________________________
Interim City Clerk
EXHIBIT A
EXHIBIT B