HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 07/16/2019 - FIRST READING OF ORDINANCE NO. 097, 2019, APPROVINAgenda Item 9
Item # 9 Page 1
AGENDA ITEM SUMMARY July 16, 2019
City Council
STAFF
Matt Zoccali, Environmental Regulatory Affairs Manager
Judy Schmidt, Legal
SUBJECT
First Reading of Ordinance No. 097, 2019, Approving and Authorizing Execution of the Second Amendment to
Permanent Easement dated April 27, 2006, to Public Service Company of Colorado Related to the Northside
Aztlan/Poudre River Site.
EXECUTIVE SUMMARY
The purpose of this item is to amend an existing easement located on City property that includes the Northside
Aztlan/United Way parcel, 226 Willow Street, and a portion of the Gustav Swanson Natural Area (the “City
Property”), sometimes referred to as the Aztlan/Poudre River EPA Removal Action Site, at 112 Willow Street.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
BACKGROUND / DISCUSSION
Site History
• Poudre Valley Gas Company produced manufactured gas from coal and possibly oil at a former gas plant
site south of the site. The gas plant closed approximately 1926.
• Various industrial facilities such as a municipal power plant, petroleum bulk plants, petroleum retail
facilities, and automotive repair facilities operated at locations adjacent to the site from as early as the
1930s
• A municipal solid waste landfill was located on the site. Little information is available about the contents of
the landfill, and the exact dates the landfill operated are not known. However, aerial photographs
reviewed indicate the landfill was in operation by 1941.
o The landfill was not gated, nor was the waste monitored for content prior to disposal.
o Open burning of wastes was conducted at the landfill until the early 1960s, when it was closed and
covered with one to three feet of silty clay
o This landfill was operated variously by private parties and by the City of Fort Collins.
Environmental Concerns at the location
• Potential exposure to a variety of materials associated with the former landfill, including asbestos-
contaminated soils and asbestos-containing debris
• Coal-tar and chlorinated solvent contamination that poses health risks when released into the environment
Poudre River Superfund Site
In September 2002, an oily sheen was observed and reported near the south bank of the Cache La Poudre
River nearest the site. Further investigation revealed a non-aqueous phase liquid (NAPL) “plume” and
Agenda Item 9
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associated concentrations of organic compounds exceeded water quality criteria and other ecological
screening values. The plume originated on former gas plant property (located on what is now the Schrader
property) and extended out under Willow Street and the parking lot of Northside Aztlan Community Center to
the Cache La Poudre River (Attachment 1).
In November 2004, a Removal Action under the Federal Comprehensive Environmental Response,
Compensation, and Liability Act (CERCLA) was initiated by the EPA to address contamination associated with
the manufactured gas plant activities. Removal action goals, along with other legal obligations, were defined
and documented in an Administrative Order on Consent (AOC). The City of Fort Collins, PSCo, EPA, and
Schrader Oil were identified as stakeholders and PSCo and Schrader Oil were identified as responsible
parties, liable for cleanup of the site. The Removal Action was intended to:
• Prevent migration of NAPL into the riverbed.
• Prevent discharge of NAPL to surface water.
• Protect future on-site workers and recreational users.
• Allow future development consistent with these objectives.
Voluntary Cleanup and Redevelopment Program
In addition to the Removal Action, and to facilitate the construction of the Northside Aztlan Community Center,
Handball Court, and Skatepark, the City also entered into an agreement with the CDPHE Voluntary Cleanup
and Redevelopment Program (VCUP). In 2005-2006, the City gathered and submitted environmental
information related to the property and specified a land use for the location (e.g., community recreation center
and related facilities). In January 2007, the City received approval, in the form of a No Action Determination,
from CDPHE and redeveloped the location. The No Action Determination states that as long as the steps are
followed,”…it is the opinion of the Colorado Department Public Health and Environment that no further action is
required to assure that this property, when used for the purposes identified… is protective of existing and
proposed uses and does not pose an unacceptable risk to human health or the environment at the site. Some
of these required steps include:
• Site improvements limited to specific locations.
• Site-specific Health and Safety and Material Management Plan developed and implemented.
• Installation, maintenance, monitoring, and reporting for a vapor mitigation system and active sub-slab
methane detections system on the Northside Aztlan Community Center building.
City of Fort Collins Required Actions
The City of Fort Collins must comply with the “City-required Actions” found in several legal documents and
requirements, including an Administrative Order on Consent, an Environmental Covenant, and the Colorado
Department of Public Health and Environment (CDPHE) Regulated Asbestos-Contaminated Soils regulation.
The response phase of this project has closed, with EPA making a determination that the Responsible Parties
have fulfilled their obligations under the AOC (Attachment 2). As the project has moved into “post-closure”,
the City, as the landowner, must continue to implement administrative and engineering controls to manage the
location. Staff has already developed and implemented the following items to meet its legal obligations and to
protect the public health and the environment:
• Land Use/Development Review, Utilities infrastructure, and CityWorks mapping systems have all been
“flagged” to highlight that the area presents a specific set of required actions for any land disturbing
activities
• City Utilities, Parks, Natural Areas, and Forestry Staff received initial and on going refresher training for
appropriate actions when conducting work in the area
• In internal Work Order system (web-based) has been designed and implemented to ensure that regulatory
staff are brought into the loop for any redevelopment, excavation, or landscaping projects being planned at
or adjacent to the site.
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• City staff participates in routine stakeholder meetings with the EPA and Responsible Parties
Kayak Park and River District Masterplan
The City of Fort Collins’ Downtown River District Master Plan outlines proposed City projects along the Poudre
River in downtown Fort Collins. Proposed Master Plan activities near the site are in progress and have the
potential to impact the Removal Action remedy. Activities include the following:
• A new whitewater play park which includes the removal of the existing Coy Diversion ditch and regrading
of the River bed and banks.
• A new pedestrian bridge crossing the river which has includes regrading of the Riverbank.
• New river put-in and take-out areas which are likely to involve regrading of the Riverbank.
• Riverbank stabilization improvements which involve regrading of the Riverbank.
Due to the potential of these projects to impact the remedy or related site conditions, the City and PSCo have
agreed that a select number of monitoring wells and vaults along the river remain in place and not be
abandoned at this time. Leaving these components in place will allow for future observation of site conditions
relative to the remedy, if deemed prudent due to implementation of City projects. If the evaluation of a City
project indicates potential to impact the remedy, as determined by stakeholders, then wells will be gauged prior
to and after implementation of the City work. The gauging step is intended to evaluate if City projects have
impacted the remedy or site conditions in the vicinity of the barrier wall, and whether any follow up actions are
recommended. If the evaluation of a City project does not indicate a potential impact to the remedy, as
determined by stakeholders, during that time period, then wells will be abandoned after September 2020.
A cross-department team has been convened and continued to meet to define and implement all additional
steps that may be needed to ensure continued compliance with legal obligations and protection of the public
health and environment at the location.
CITY FINANCIAL IMPACTS
As part of the easement modification, the City is assuming ownership of a small structure, previously housing
an on-site water treatment facility, as well as a number of groundwater monitoring wells.
City Parks Department staff inspected the small building and decided it was in good shape and will be an ideal
location for storage of landscaping equipment. Financial impacts to assuming ownership of the structure
include incremental costs for maintenance, potential renovation for any intended use other than storage for
City equipment. Building use other than equipment storage (i.e., remote work station/office) is not
recommended and could potentially incur high costs for vapor mitigation to ensure vapors from the historic
landfill are not impacting the indoor air quality and human health for City employees occupying the structure.
By assuming ownership of groundwater monitoring wells, the City may realize cost-savings if future monitoring
activities are needed (i.e., new wells will not have to be drilled). Financial impact related to assuming
ownership of the monitoring wells includes well inspection, maintaining covers and locks, periodic registration
updates (if needed), and well closure costs.
ATTACHMENTS
1. CERCLA Site Map (PDF)
2. Appropriate Next Steps (PDF)
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APPENDIXG
Based on information EPA has evaluated to date, EPA believes that, for an owner of
property within the coal tar plume at the Poudre River Site (as described in Appendix F), the
following would be appropriate reasonable steps with respect to the coal tar contamination found
at the property. Additional reasonable steps may become necessary if site conditions change or
new infonnation is discovered which necessitates further reasonable steps.
1. Minimize subsurface excavati.ons to the extent possible.
• Provide above-ground, rather than underground, parking facilities.
• Use caissons, piers, pilings, and/or at-grade slab building foundations.
• Where practicable and consistent with good engineering practices,
minimize burial depths of tanks, piping, foundations, and other
improvements.
• During the design of underground utility installations, the design or
construction of new structures or demolition of an existing structure, take
into account the potential presence of the contamination that has been
delineated and, to the extent practicable and consistent with good
engineering practices, minimize excavation volumes.
• Where practicable and consistent with good engineering practices, adopt
as a preference for sewer line maintenance and repair the application of an
in situ liner as opposed to removing and replacing the sewer line.
• Where practicable and consistent with good engineering practices,
incorporate into new or replacement utility improvements design
measures, such as protective sleeving, choice of materials and other
features intended to minimize the need for future replacement or repair
due to effects of subsurface contaminants.
2. Monitor for NAPL in areas in which you are performing work during any excavation.
• Use the attached plume map to identify areas where excavations may
expose NAPL.
• Sample soil and water encountered during excavations, as well as air
within work area during excavation and restoration. You are not required
to characterize the extent of any contamination, but should be
characterizing the soil and water accessed or moved during excavation, as
well as the air within and above the excavation.
• Properly characterize any materials that are to be removed from the
excavation prior to appropriate disposal.
I
3. Protect workers, bystanders and building occupants.
• Where NAPL is encountered or monitoring results indicate the presence of
NAPL at levels exceeding health based standards, require workers to wear
appropriate personal protective equipment and/or undertake engineering
controls to accomplish the same level of worker and bystander protection.
• Provide training for workers on visual identification ofNAPL as well as
ATTACHMENT 2
on the appropriate use of personal protective equipment.
• Where NAPL is present below or immediately adjacent to a proposed
building, use building vapor monitoring, vapor intrusion systems and/or
vapor venting systems, as appropriate.
4. Prevent preferential pathways that may be created by underground work.
• Use the attached plume map to identify areas where excavations may
encounter NAPL.
• Seek professional assistance to design excavations in the identified areas
that will not change pathway and/or rate of flow of the NAPL plume.
5. Properly dispose of contaminated materials that must be removed from the excavation
in order to implement the work being performed.
• Properly characterize any materials that are to be removed from the
excavation.
• Identify and use properly licensed facilities for the disposal of the
contaminated materials that must be removed from the excavation.
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ORDINANCE NO. 097, 2019
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROVING AND AUTHORIZING EXECUTION OF THE SECOND AMENDMENT TO
PERMANENT EASEMENT DATED APRIL 27, 2006, TO PUBLIC SERVICE COMPANY
OF COLORADO RELATED TO THE NORTHSIDE AZTLAN/POUDRE RIVER SITE
WHEREAS, in November of 2004, a removal action was initiated by the United States
Environmental Protection Agency (“EPA”) to address environmental contamination caused by
activities of a historic manufactured gas plant located hear the Northside Aztlan/United Way
parcel, 226 Willow Street, and a portion of the Gustav Swanson Natural Area (the “City
Property”); and
WHEREAS, the City, Public Service Company of Colorado (PSCo, DBA Xcel Energy),
EPA, and Schrader Oil were identified as stakeholders and PSCo and Schrader Oil were
identified as responsible parties, liable for cleanup of the contamination, including contamination
in the Poudre River and on the City Property; and
WHEREAS, by adoption of Ordinance No. 146, 2004, City Council found that
conveyance of an easement on the City Property to PSCo at no cost to implement the removal
action and associated activities along the Poudre River was in the best interest of the City in view
of the anticipated benefits to the City and the general public of the environmental cleanup
activities to be conducted thereunder in the River and on the City Property and authorized the
Mayor to execute the Permanent Easement Agreement; and
WHEREAS, the City and PSCo (as Grantee) entered into a Permanent Easement
Agreement dated April 27, 2006, granting PSCo an easement as described therein (the
“Easement”) over and across the City Property, which Agreement was recorded in the real
property records of the Larimer County Clerk and Recorder on May 3, 2006, at Reception
Number 2006-0032893; and
WHEREAS, the City and PSCo amended the Permanent Easement Agreement on July 5,
2011 to modify the location of the telecommunications line and related easement area by
execution of an Amendment to Permanent Easement Agreement recorded in the real property
records of the Larimer County Clerk and Recorder on August 24, 2011, at Reception Number
20110051428; and
WHEREAS, references to the Permanent Easement Agreement hereinafter set forth shall
mean the Permanent Easement as amended by the Amendment to Permanent Easement
Agreement; and
WHEREAS, the removal action has been completed and PSCo has prepared and
delivered to the EPA the Poudre River Removal Action Final Closure Report dated May 25,
2016, and a revised Closure Report dated March 31, 2017 (“Closure Report”); and
-2-
WHEREAS, on August 30, 2017, EPA notified the City and PSCo that in accordance
with Section XXIX of the Administrative Order on Consent for Removal Action, CERCLA
Docket No. CERCLA-08-2005-0003 (“AOC”) the work required under the AOC has been fully
performed; and
WHEREAS, the parties desire to modify the Permanent Easement Agreement to reflect
that the removal action has been completed and to remove certain provisions that are now
obsolete; and
WHEREAS, the vertical wall installed by PSCo as part of the removal action will remain
in place indefinitely and PSCo is also voluntarily retaining certain monitoring wells and vaults
along the Poudre River until approximately 2020 to monitor, if necessary, for potential changes
in site conditions; and
WHEREAS, the Permanent Easement contains an “Exhibit B” that describes the
Easement Area and the parties desire to replace Exhibit B with a revised description of the
Easement Area to remove certain areas of City Property; and
WHEREAS, City Code Section 23-111 provides that the City Council is authorized to
sell, convey or otherwise dispose of real property owned by the City, provided the Council first
finds by ordinance that any sale or disposition of real property owned by the City is in the best
interest of the City Fort Collins.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the City Council hereby makes any and all determinations and
findings contained in the recitals set forth above and further finds that further modification of the
Permanent Easement Agreement to delete obsolete provisions and revise the description of the
Easement Area is in the best interests of the City.
Section 2. That the Mayor is hereby authorized to execute the Second Amendment to
Permanent Easement Agreement attached hereto as Exhibit “A,” and incorporated herein with
such modifications as the City Manager, in consultation with the City Attorney, determines to be
necessary or appropriate to protect the interests of the City and the purposes of this Ordinance.
Introduced, considered favorably on first reading, and ordered published this 16th day of
July, A.D. 2019, and to be presented for final passage on the 20th day of August, A.D. 2019.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
-3-
Passed and adopted on final reading on the 20th day of August, A.D. 2019.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
SECOND AMENDMENT TO PERMANENT EASEMENT AGREEMENT
THIS SECOND AMENDMENT TO PERMANENT EASEMENT AGREEMENT (“Second
Amendment”) is made and entered into this __ day of _____, 2019, by and among THE CITY
OF FORT COLLINS, COLORADO, a municipal corporation, 300 LaPorte Avenue, Fort
Collins, Colorado, 80521 (the “Grantor”) and PUBLIC SERVICE COMPANY OF COLORADO
a Colorado corporation d/b/a XCEL ENERGY (the “ Grantee”). Grantor and Grantee are
collectively referred to as the “parties.”
RECITALS AND PURPOSES
WHEREAS, Grantor and Grantee entered into a Permanent Easement dated April 27, 2006,
for Grantee to implement a removal action and associated activities along the Poudre River. The
Permanent Easement was recorded in the real property records of the Larimer County Clerk and
Recorder on May 3, 2006, at Reception Number 2006-0032893; and
WHEREAS, Grantor and Grantee amended the Permanent Easement on July 5, 2011, to
modify the location of the telecommunications line and related easement area. The Amendment
to Permanent Easement Agreement was recorded in the real property records of the Larimer
County Clerk and Recorder on August 24, 2011, at Reception Number 20110051428; and
WHEREAS, references to the Permanent Easement hereinafter set forth shall mean the
Permanent Easement as amended by the Amendment to Permanent Easement Agreement; and
WHEREAS, the removal action has been completed and Grantee has prepared and
delivered to the U.S. Environmental Protection Agency (“EPA”) the Poudre River Removal Action
Final Closure Report (“Closure Report”) dated May 25, 2016. Grantee prepared and delivered to
EPA a revised Closure Report dated March 31, 2017; and
WHEREAS, on August 30, 2017, EPA notified Grantee and Grantor that in accordance
with Section XXIX of the Administrative Order on Consent for Removal Action, CERCLA Docket
No. CERCLA-08-2005-0003 (“AOC”) the work required under the AOC has been fully
performed; and
WHEREAS, the parties desire to modify the Permanent Easement to reflect that the
removal action has been completed and to remove certain provisions of the Permanent Easement
that are now obsolete; and
WHEREAS, the vertical wall installed by Grantee as part of the removal action will remain
in place indefinitely. Grantee is also voluntarily retaining certain monitoring wells and vaults
along the Poudre River until approximately 2020 to monitor, if necessary, for potential changes in
site conditions; and
EXHIBIT A
WHEREAS, the Permanent Easement contains an Exhibit B that describes the Easement
Area. The parties desire to replace Exhibit B with a revised description of the Easement Area to
remove certain areas of City Property.
NOW, THEREFORE, in consideration of the foregoing and the benefits to be derived
therefrom, the Permanent Easement is hereby modified as follows:
1. All defined terms and conventions referenced herein shall be interpreted as defined
in the Permanent Easement.
2. Paragraph 1.1 of the Permanent Easement is deleted in its entirety and replaced with
the following:
“Grant of Easement and Right of Way to the Grantee. The Grantor hereby
grants, bargains, conveys, delivers, transfers and sells to the Grantee and its
successors and assigns a nonexclusive, perpetual easement (the "Permanent
Easement") over and through that portion of the City Property more particularly
described and depicted on Exhibit B (Revised) attached hereto and
incorporated herein by reference (referred to herein as the "Easement Area"),
for the remaining monitoring wells, vaults, and vertical wall (the
"Improvements") over and within the Easement Area, subject to the terms,
conditions and restrictions set forth herein.”
3. Paragraph 1.3(A) of the Permanent Easement is deleted in its entirety and replaced
with the following:
“Grantee shall have the right to use the Easement Area for purposes of monitoring,
repairing or closing the Improvements, or for removing those Improvements that
present a safety hazard. Grantee shall also have the right to access City Property
outside of the Easement Area to meet its obligations under this Second
Amendment, provided that any such activities are conducted so as to have the
minimum impacts reasonably possible. Except in the event of an emergency, the
Grantee shall not install any fixtures or appurtenances, or other additional
improvement of any kind, without prior written notification to the Grantor. In the
event of an emergency, the Grantee shall notify the Grantor of the emergency and
related installation of improvements as soon as reasonably practicable. The
Grantor’s approval of this Easement Agreement or its approval in the future of
any schedule is not and shall not be construed as an endorsement of or approval
by the Grantor of the technical or practical sufficiency of the Improvements.”
4. Paragraph 1.3(C) of the Permanent Easement is deleted in its entirety and replaced
with the following:
“The Grantee shall have the right of vehicular and non-vehicular access across the
City Property as necessary to access the Easement Area to perform any obligations
under this Second Amendment, subject to Grantee's obligation to fully restore
the City Property in the event of any damage thereto. Except in the event of
an emergency, vehicular access across the City Property shall be limited to
existing paved roads and surfaces, to the extent practicable. For ingress and egress
across the City Property to and from the Easement Area, the Grantee shall
primarily use the permanent vehicular access, as described on Exhibit C, attached
hereto and incorporated herein by this reference.”
5. Paragraph 1.3(D) of the Permanent Easement is deleted in its entirety.
6. Paragraph 1.3(G) of the Permanent Easement is deleted in its entirety and replaced
with the following:
“The parties acknowledge and agree that all activities by the Grantee on the
Easement Area, and any access across the City Property shall be carried out in a
manner and on a schedule reasonably expected to minimize disturbance to and
preserve the improvements on and the natural or improved features and intended
purposes of, the City Property. Grantee shall be responsible for repairing or
removing any Improvements installed by Grantee in the Easement Area that present
a safety hazard. In the event damage has resulted from the maintenance, repair,
removal or presence of the Improvements, or Grantee's activities on the Easement
Area or the City Property, the Grantee agrees to make such repairs or take such
other action, promptly and at its own expense, as may be necessary to restore the
same to a condition consistent with the Grantor's standards for work on Grantor's
similarly managed properties in place at the time the need for restoration is
ascertained, as reasonably determined by mutual agreement of the parties. The
parties acknowledge that sensitive vegetation, habitat or other natural conditions,
or specific conditions required for safe public use of the City Property, may
require special effort by the Grantee to protect, restore, or replace in the event
they are disturbed by the activities of the Grantee.”
7. Paragraphs 1.4(A) and (B) of the Permanent Easement are deleted in their entirety
and replaced with the following:
“A. An authorized representative of the Grantee and the Grantor will meet or
otherwise confer on an as-needed basis to discuss proposed City projects that may
potentially impact the Improvements, including but not limited to the City of Fort
Collins’ Downtown River District Master Plan, 2014. The Grantor will initiate and
coordinate such meetings.
B. To the extent practicable, the parties shall provide the following information to
each other, as applicable, during any such meeting:
1. Schedule and location of proposed and planned City projects;
2. Any sampling events or other activities proposed by Grantee (“site
visit”); and
3. Observations of site conditions.
8. The contacts and addresses for Grantee in Section 7 of the Permanent Easement are
deleted and replaced with the following:
For Grantee:
Manager, Waste and Remediation
Xcel Energy Services Inc.
1800 Larimer St., Suite 1300
Denver, CO 80202
With a copy to:
Assistant General Counsel (Environmental)
Xcel Energy Services Inc.
1800 Larimer St., Suite 1100
Denver, CO 80202
and:
Director, Real Estate Services
Xcel Energy Services Inc.
414 Nicollet Mall
Minneapolis, MN 55402
9. The Permanent Easement shall remain in full force and effect and unmodified
except as expressly set forth in this Second Amendment.
IN WITNESS WHEREOF, the parties here to have executed this Second Amendment the day and
year first written above.
CITY OF FORT COLLINS, COLORADO
a municipal corporation
By: ______________________________
Wade O. Troxell, Mayor
ATTEST:
_______________________
City Clerk
APPROVED AS TO FORM:
_______________________
Assistant City Attorney
PUBLIC SERVICE COMPANY OF COLORADO,
a Colorado corporation d/b/a XCEL ENERGY
By: ______________________________________
EXHIBIT B
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POUDRE RIVER SITE
ADMINISTRATIVE ORDER OF CONSENT
lARIMER COUNTY. COLORADO
AppemdlxF
Plume Mapn..aleral Extent of Contamination
October 2004
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TOD No. S05-0310-018 m
ATTACHMENT 1