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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 12/17/2019 - SECOND READING OF ORDINANCE NO. 147, 2019, AUTHORIAgenda Item 5 Item # 5 Page 1 AGENDA ITEM SUMMARY December 17, 2019 City Council STAFF Kerri Allison, Real Estate Specialist II Theresa Connor, Water Engineering Field Operations Mgr Ingrid Decker, Legal SUBJECT Second Reading of Ordinance No. 147, 2019, Authorizing the Exchange of Stormwater Easements Between the City of Fort Collins and John C. Graham and Ginger L. Graham. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on December 3, 2019, authorizes an exchange of stormwater easements across portions of property generally located north of the North Lemay and East Vine intersection. A stormwater easement from the City of Fort Collins will be conveyed to John C. Graham and Ginger L. Graham (consisting of 5,749 square feet located on City property) and a stormwater easement from John C. Graham and Ginger L. Graham will be conveyed to the City of Fort Collins (consisting of 34,885 square feet) and a temporary construction easement (consisting of 22,235 square feet) would be exchanged. As consideration for the easements on the Graham property the City would convey the easement across City property and the Stormwater Utility would agree to apply the balance of the difference between the value of the two easements to Stormwater Plant Investment Fees (PIF) and monthly stormwater fees for a hay barn built by the Grahams within the City limits, instead of additional cash consideration. The City’s receipt of the easements across the Graham property is consideration for the easement across City property and the credited stormwater fees. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary, December 3, 2019 (w/o attachments) (PDF) 2. Ordinance No. 147, 2019 (PDF) Agenda Item 8 Item # 8 Page 1 AGENDA ITEM SUMMARY December 3, 2019 City Council STAFF Kerri Allison, Real Estate Specialist II Theresa Connor, Water Engineering Field Operations Mgr Ingrid Decker, Legal SUBJECT First Reading of Ordinance No. 147, 2019, Authorizing the Exchange of Stormwater Easements Between the City of Fort Collins and John C. Graham and Ginger L. Graham. EXECUTIVE SUMMARY The purpose of this item is to authorize an exchange of stormwater easements across portions of property located in the Southwest Quarter of Section 6, Township 7 North, Range 68 West of the 6th P.M: a stormwater easement from the City of Fort Collins to John C. Graham and Ginger L. Graham (consisting of 5,749 square feet located on City property) and a stormwater easement from John C. Graham and Ginger L. Graham to the City of Fort Collins (consisting of 34,885 square feet) and a temporary construction easement (consisting of 22,235 square feet) would be exchanged. As consideration for the easements on the Graham property the City would convey the easement across City property and the Stormwater Utility would agree to apply the balance of the difference between the value of the two easements to Stormwater Plant Investment Fees (PIF) and monthly stormwater fees for a hay barn built by the Grahams within the City limits, instead of additional cash consideration. The City’s receipt of the easements across the Graham property is consideration for the easement across City property and the credited stormwater fees. STAFF RECOMMENDATION Staff recommends approval of the Ordinance on First Reading. BACKGROUND / DISCUSSION The Grahams requested a stormwater easement from the City in order to facilitate their desire to bring flow from the Lindenmeir Channel to the NECCO Channel and eliminate existing overland flow on their property. The City needs a permanent easement and a temporary construction easement from the Grahams for the construction of the NECCO A4 lateral, which is designed to eliminate a failing pump station that was placed on the property as a temporary structure in the 1980s. The A4 lateral will remove the pump station and allow more efficient drainage from the north and west. The value of the easement the City would grant to the Grahams is approximately $2,150, while the value of the easements from the Grahams to the City is approximately $26,700, a difference of $24,550. The Grahams have obtained a building permit for a hay barn on their eastern pasture that triggers a stormwater Plant Investment Fee (PIF) of $4,722.11 and approximately $82.20 per month in stormwater fees at current rates. Rather than the City paying cash for the difference in value between the easements, the Grahams have asked that the City credit the difference to the stormwater PIF and fees as consideration for the easements they are granting to the City until the total difference of $24,550 has been reached. The value of the easement being provided by the Grahams to the City adequately covers the value of the easement the City is proposing granting to the Grahams, as well as the value of the stormwater PIF and monthly fees for almost 20 years. The ATTACHMENT 1 Agenda Item 8 Item # 8 Page 2 Stormwater Utility’s agreement to credit the monthly stormwater fees would apply only while the property the barn is on is owned by a member of the Graham family or an entity controlled by a member of the Graham family, and is only for the hay barn permitted under Building Permit #B1903339. Future improvements on the property within the City may result in other stormwater fees that would not be affected by this arrangement. The Utilities department has been working closely with the Grahams to assure the easements and project goals align. CITY FINANCIAL IMPACTS Because the value of the easements the City is receiving from the Grahams exceeds the value of the easement the Grahams are receiving from the City, City staff is recommending that the City not charge the Grahams for their easement from the City. ATTACHMENTS 1. Location map (PDF) -1- ORDINANCE NO. 147, 2019 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE EXCHANGE OF STORMWATER EASEMENTS BETWEEN THE CITY OF FORT COLLINS AND JOHN C. GRAHAM AND GINGER L. GRAHAM WHEREAS, the City is the owner of a parcel of land located in in the Southwest Quarter of Section 6, Township 7 North, Range 68 West of the 6th P.M., Larimer County, Colorado, as more particularly described on Exhibit “A”, attached and incorporated herein by reference (the “City Property”); and WHEREAS, John C. Graham and Ginger L. Graham (the “Grahams”) are the owners of several parcels of land located in the Southwest Quarter of Section 6, Township 7 North, Range 68 West of the 6th P.M., Larimer County, Colorado, as more particularly described on Exhibit “B”, attached and incorporated herein by reference (the “Graham Property”); and; WHEREAS, the City has requested a drainage and utility easement (consisting of 34,885 square feet), as well as a temporary construction easement (consisting of 22,235 square feet) (the “City Easements”), on and across a portion of the Graham Property to facilitate the construction of the NECCO A4 lateral, which is designed to eliminate a failing pump station that was placed on the property as a temporary structure in the 1980s; and WHEREAS, the new A4 lateral will remove the pump station and allow more efficient drainage from the north and west; and WHEREAS, the proposed City Easements are more particularly described and shown on Exhibits “C” and “D”, attached and incorporated herein by reference; and WHEREAS, the Grahams have requested a drainage easement (consisting of 5,749 square feet) on and across the City Property to bring flow from the Lindenmeir Channel to the NECCO Channel and eliminate existing overland flow on their property (the “Graham Easement”); and WHEREAS, the proposed Graham Easement is more particularly described and shown on Exhibit “E”, attached and incorporated herein by reference; and WHEREAS, the value of the City Easements (approximately $26,700) exceeds the value of the Graham Easement (approximately $2,150) by $24,550; and WHEREAS, the Grahams have obtained a City building permit for a hay barn (Building Permit #B1903339) on their eastern pasture, a parcel of land identified in the records of the Larimer County Assessor as Parcel No. 80706400001 (the “Barn Parcel”), which triggers a stormwater PIF of $4,722.11 and approximately $82.20 per month in City stormwater fees at current rates; and WHEREAS, as additional consideration for the easements they are granting to the City the Grahams have asked that the City credit the difference in value between the easements, which the City would otherwise owe to the Grahams, to the PIF and stormwater fees until the difference in -2- values has been reached or the Barn Parcel is transferred to someone other than a Graham family member or a legal entity controlled by a Graham family member, whichever comes first; and WHEREAS, the credit would apply only to the fees triggered by construction of the barn, and not additional fees for future development activities on the Barn Parcel or other property owned by the Grahams; and WHEREAS, Article XII, Section 6 of the City Charter allows the Council to approve the proposed fee-credit arrangement so long as the Council determines that it provides a betterment to the stormwater utility or serves another specific utility purpose that is beneficial to the ratepayers of such utility; 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 any and all determinations and findings contained in the recitals set forth above. Section 2. That the City Council hereby finds that the conveyance of the Graham Easement, on the terms and conditions described herein, is in the best interests of the City. Section 3. That the City Council hereby recognizes that the value of the easements the City is receiving from the Grahams exceeds the value of the easement the Grahams are receiving from the City; therefore, the PIF and stormwater fees triggered by Building Permit #B1903339 are to be treated as additional consideration for the Graham’s conveyance of the City Easements so long as the Grahams own the Barn Parcel and the City Council hereby finds that such arrangement provides a betterment to the stormwater utility. Section 4. That the Mayor is hereby authorized to execute such documents as are necessary to convey the Graham Easement to the Grahams 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 description of the easement, as long as such changes do not materially increase the size or change the character of the interest to be conveyed. Section 5. That the City Manager is hereby authorized to execute such documents as are necessary to accept the City Easements from the Grahams, and to document the credit of the PIF and stormwater fees as additional consideration for the City Easements, on terms and conditions consistent with this Ordinance, together with such additional terms and conditions as -3- the City Manager, in consultation with the City Attorney, determines are necessary or appropriate to protect the interests of the City. Introduced, considered favorably on first reading, and ordered published this 3rd day of December, A.D. 2019, and to be presented for final passage on the 17th day of December, A.D. 2019. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 17th day of December, A.D. 2019. __________________________________ Mayor ATTEST: _______________________________ City Clerk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