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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 10/20/2020 - SECOND READING OF ORDINANCE NO. 123, 2020, AUTHORI Agenda Item 5 Item # 5 Page 1 AGENDA ITEM SUMMARY October 20, 2020 City Council STAFF Tawnya Ernst, Real Estate Specialist III Ingrid Decker, Legal SUBJECT Second Reading of Ordinance No. 123, 2020, Authorizing the Conveyance of a Permanent Waterline Easement and a Temporary Construction Easement on Meadow Springs Ranch to the Northern Colorado Water Association. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on October 6, 2020, authorizes the conveyance of a permanent waterline easement and a temporary construction easement to the Northern Colorado Water Association (NCWA) on Utilities’ Meadow Springs Ranch. The proposed easement area will traverse Meadow Springs Ranch (MSR) over an alignment that City staff previously worked on, and agreed to, with NCWA in 2009. The primary purpose of the pipeline is to provide a redundant transmission main to assist in providing a reliable water supply to NCWA’s existing and future customers. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary, October 6, 2020 (w/o attachments) (PDF) 2. Ordinance No. 123, 2020 (PDF) Agenda Item 14 Item # 14 Page 1 AGENDA ITEM SUMMARY October 6, 2020 City Council STAFF Tawnya Ernst, Real Estate Specialist III Ingrid Decker, Legal SUBJECT First Reading of Ordinance No. 123, 2020, Authorizing the Conveyance of a Permanent Waterline Easement and a Temporary Construction Easement on Meadow Springs Ranch to the Northern Colorado Water Association. EXECUTIVE SUMMARY The purpose of this item is to authorize the conveyance of a permanent waterline easement and a temporary construction easement to the Northern Colorado Water Association (NCWA) on Utilities’ Meadow Springs Ranch. The proposed easement area will traverse Meadow Springs Ranch (MSR) over an alignment that City staff previously worked on, and agreed to, with NCWA in 2009. The primary purpose of the pipeline is to provide a redundant transmission main to assist in providing a reliable water supply to NCWA’s existing and future customers. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION Northern Colorado Water Association, a Colorado nonprofit corporation, provides potable water service to roughly 1,500 rural customers in northern Larimer County. NCWA approached the City initially in 2009 with a request to install a 12-inch waterline that will connect between NCWA’s three existing water storage tanks near its well fields west of Carr, Colorado and its existing distribution system near Buckeye, Colorado. NCWA’s tanks are located in an easement on MSR. NCWA’s existing transmission mains (6”/8”) were constructed in 1962 and 1963 and run primarily south across MSR from the tanks south to their connection with the existing distribution system near CR 76 and CR 7. Most notably, these pipes feed most of NCWA’s system and cross several floodplains. In the event a flood renders either of these pipes inoperable (broken, washed out at floodplain crossing, etc.), potable water service would be lost for most of NCWA’s members until adequate repairs could be made. The proposed pipeline is approximately 11 miles in length, and its primary purpose is to provide a redundant transmission main to improve reliability to NCWA’s membership. The pipeline will cross City property for approximately 1.5 miles. As the City owns the lands surrounding its tanks, NCWA would need to cross City property regardless of the alignment of any new pipeline. The proposed alignment was selected to provide said redundancy through a southwesterly route. As part of the Analysis of Alternatives, a third pipeline along the existing general southerly route was considered but was rejected as it simply replicated the risks the existing pipelines are subject to. Due to funding constraints, the project languished for more than a decade. Earlier this year, NCWA staff informed City personnel that they intended to refocus their efforts in obtaining the alignment/easement from the City as ATTACHMENT 1 Agenda Item 14 Item # 14 Page 2 described in 2009 that would accommodate construction of the new water main. NCWA has requested a 30’- wide permanent easement and a 30’-wide construction easement. Construction is proposed to be completed with a trencher - arguably one of the least obtrusive pipeline construction methodologies. The alignment of the proposed waterline crosses MSR in Sections 22, 23, and 27, Township 11 North, Range 67 West of the 6th PM. Utilities purchased the 26,000+-acre property for the beneficial use of municipal sludge disposal. The proposed pipeline will have minimal, if any, impact on existing City operations. The area is leased for cattle grazing. As required by Section 3.4.1 of the Land Use Code of the City of Fort Collins, NCWA hired Stewart Environmental Consulting in 2009 to complete an ecological characterization study of the potentially affected area. The original author of the report is in the process of updating that study. The 2009 survey found that the proposed project will have minimal environmental impact on the shrub shortgrass steppe community. The affected area is small compared to the vast expanse of this community that includes the Property and adjoining properties. The City would require NCWA to mitigate any impact by reseeding and revegetating the easement areas. The Property is a key nesting area for grassland birds. This potential for impact can be mitigated by the timing of construction activities associated with the proposed project. Construction will be timed to avoid the breeding/nesting/rearing period for grassland birds - approximately April 1 to mid-July. No wetlands were identified on the proposed easement area and therefore, no wetlands delineation will be required. The proposed transmission line will cross beneath Spottlewood Creek. Although the report identified no wetlands associated with the creek, the creek may fall under jurisdiction of the U.S. Army Corps of Engineers. The timing of construction for crossing beneath Spottlewood Creek should occur when no flow conditions exist and groundwater level beneath the creek bed has fallen. This would likely be in fall and winter. Alternative Alignments Analysis As briefly discussed above, the City owns the land surrounding NCWA’s potable water storage tanks. NCWA therefore needs a utility easement from the City for any additional pipeline that will connect to its system. NCWA completed an exhaustive analysis of pipeline alignment alternatives to determine the most direct and least impactful route on MSR. The proposed alignment was selected in minimize impacts and follows the route previously supported by City staff and the original environmental study in 2009. 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 ownership in the requested easements is as follows: $656.28 for the temporary construction easement and $3,285.00 for the permanent easement. The easement fees are based on 10% and 50% (respectively) of the per acre full fair market value of Meadow Springs Ranch. In addition, NCWA will also pay a $6,600.00 vegetation management fee to Utilities for the cost of reseeding and revegetating the easement areas following construction. NCWA will pay all fees associated with this project prior to recording of the easement. BOARD / COMMISSION RECOMMENDATION At its September 20, 2020 meeting, the Water Board voted unanimously to recommend Council approve the conveyance of the waterline easement to Northern Colorado Water Association. (Attachment 2) ATTACHMENTS 1. Location Map (PDF) 2. Water Board Minutes, August 20, 2020 (PDF) -1- ORDINANCE NO. 123, 2020 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE CONVEYANCE OF A PERMANENT WATERLINE EASEMENT AND A TEMPORARY CONSTRUCTION EASEMENT ON MEADOW SPRINGS RANCH TO THE NORTHERN COLORADO WATER ASSOCIATION WHEREAS, the City is the owner of real property located north of Fort Collins in Larimer County and Weld County known as Meadow Springs Ranch (the “City Property”); and WHEREAS, the Property is managed by the City’s Wastewater Utility as a site for land application of biosolids, and is also a working cattle ranch; and WHEREAS, the Northern Colorado Water Association (“NCWA”) owns three water storage tanks located in an easement on the Larimer County portion of the City Property in Section 23, Township 11N, Range 68W of the 6th P.M. west of Carr, Colorado that connect to its existing distribution system through water transmission mains constructed in the early 1960s; and WHEREAS, NCWA first contacted the City in 2009 about obtaining an easement to install a redundant transmission main, a portion of which would cross the City Property, to improve reliability to NCWA’s members, as its existing transmission mains cross several floodplains and are vulnerable to damage; and WHEREAS, because NCWA’s infrastructure is surrounded by the City Property, NCWA cannot build a new, safer waterline without crossing the City Property in some location; and WHEREAS, the location of the proposed waterline easement is shown and described on Exhibit “A”, attached and incorporated herein by reference (the “Easement”); and WHEREAS, NCWA is also requesting a temporary construction easement through December, 2021, to allow construction of the new waterline, as shown and described on Exhibit “B”, attached and incorporated herein by reference (the “TCE”); and WHEREAS, NCWA would pay the City fair market value of $656.28 for the TCE and $3285 for the Easement, plus a $6,600 vegetation management fee for the cost of reseeding and revegetating the easement areas following construction of the waterline; and WHEREAS, Section 23-111 of the City Code authorizes the City Council to sell, convey or otherwise dispose of any interests in real property owned by the City, provided the City Council first finds, by ordinance, that such sale or other disposition is in the best interests of the City and, for real property that is part of a City utility system, that the disposition will not materially impair the viability of that utility system as a whole, and will be for the benefit of the citizens of the City; and WHEREAS, at its regular meeting on September 20, 2020, the Water Board voted to recommend City Council approve the conveyance of the Easement. -2- 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 conveyance of the Easement and TCE to NCWA as provided herein is in the best interests of the City, will not materially impair the viability of the City’s Wastewater Utility as a whole, and will be for the benefit of the citizens 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 NCWA 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 or effectuate the purposes of this Ordinance, including any necessary corrections to the legal descriptions of the Easement or TCE, as long as such changes to not materially increase the size or change the purpose of the interests to be conveyed. Introduced, considered favorably on first reading, and ordered published this 6th day of October, A.D. 2020 and to be presented for final passage on the 20th day of October, A.D. 2020. __________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on this 20th day of October, A.D. 2020. __________________________________ Mayor ATTEST: _____________________________ City Clerk EXHIBIT A EXHIBIT B