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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 09/19/2017 - SECOND READING OF ORDINANCE NO. 126, 2017 AUTHORIZAgenda Item 10 Item # 10 Page 1 AGENDA ITEM SUMMARY September 19, 2017 City Council STAFF Dan Gulley, Real Estate Specialist II Tracy Ochsner, Assistant Operations Services Director Ryan Malarky, Legal SUBJECT Second 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 This Ordinance, unanimously adopted on First Reading on September 5, 2017, authorizes 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 Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary, September 5, 2017 (w/o attachments) (PDF) 2. Ordinance No. 126, 2017 (PDF) Agenda 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. ATTACHMENT 1 Agenda Item 19 Item # 19 Page 2 ATTACHMENTS 1. Location map (PDF) 2. Xcel Energy Agreement (PDF) -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 9TH STREET TO PUBLIC SERVICE COMPANY OF COLORADO WHEREAS, the City of Fort Collins owns property located at 625 9th 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