CITY COUNCIL AGENDA MEMORANDUM

Transcription

1 CITY COUNCIL AGENDA MEMORANDUM City and County of Broomfield, Colorado To: From: Prepared by: Mayor and City Council Charles Ozaki, City and County Manager Kenneth D. Rutt, Wastewater Division Superintendent David Allen, Director of Public Works Kevin Standbridge, Deputy City and County Manager Meeting Date Agenda Category Agenda Item # June 10, 2014 Consent 7 (b) Agenda Title: Proposed Resolution No , Granting an Easement in Broomfield's Weld County Property to AKA Energy Group, LLP for Installation of a Natural Gas Pipeline Summary In 1996, Broomfield purchased a 1,426-acre farm in Gilcrest, Colorado (Weld County Farm) to implement the "Biosolids Master Plan." Biosolids are a byproduct of the wastewater treatment process that must be disposed of according to federal, state, and local laws and regulations. Broomfield has been applying biosolids to the farm since June The property is located approximately 48 miles from Broomfield's Wastewater Treatment Facility and 37 miles from Broomfield's northern boundary. AKA Energy Group, LLC (AKA), is a company headquartered in Durango, Colorado and wholly owned by the Southern Ute Indian Tribe. AKA has requested a 30-footwide easement across the Broomfield property as part of a planned pipeline project to increase the natural gas transmission capacity along the Front Range. The maps show the location of Broomfield's property and the location of the requested easement on the property. AKA has offered a payment of $54, to Broomfield for the easement. The payment is based on a unit price of $6 per linear foot. The easement dimensions are 9, feet by 30 feet for a total of 271,447 square feet (6.23 acres). Staff believes that this is a fair price for the requested easement since the unit cost is 17.6% higher than the $5.10 per linear foot paid to Broomfield in 2012 for a similar pipeline easement across the property. Payment for any crop damage will be made by AKA directly to Broomfield s tenant farmer. Installation of the pipeline will not interfere with Broomfield s current or future activities of the farm. In summary, the proposed easement is non-exclusive and provides that AKA will: 1. Use the easement for a pipeline to transport natural gas or any other liquids or substances associated with oil and gas production; 2. Fully restore and level the surface of the easement property (including fences) to the same condition as prior to the pipeline installation; 3. Pay for all damages resulting from construction and ongoing maintenance; 4. Assume liability for injuries or damages arising from use of the easement; and 5. Not adversely impact Broomfield's ability to continue farming the easement area. AKA plans to begin construction in August 1, 2014 and complete the project by January 15, Proposed Resolution No would grant a natural gas pipeline easement to AKA Energy Group, LLC. Prior Council Action City Council has approved four other pipeline easements on Broomfield s Weld County Farm property: 1. Resolution for Rocky Mountain Energy Center, LLC, on August 27, Resolution for Colorado Interstate Gas Company on October 9, Resolution for DCP Midstream, LP, on May 26, Resolution for DCP Midstream, LP, on February 14, Financial Considerations The proposed payment of $54, would go to the Sewer Utility Enterprise Fund. Alternatives Do not approve the easement. In such event, AKA may attempt to acquire the easement under eminent domain with a court determining compensation pursuant to Colorado Revised Statues (5). Based on the above, it is recommended Proposed Actions/Recommendations That Resolution No be adopted. 7(b) - Page 1

2 RESOLUTION NO A RESOLUTION GRANTING A NON-EXCLUSIVE ACCESS EASEMENT TO AKA ENERGY GROUP, LLC AT THE WELD COUNTY BIOSOLIDS FARM BE IT RESOLVED, BY THE CITY COUNCIL OF THE CITY AND COUNTY OF BROOMFIELD, COLORADO: Section 1. The Easement Grant of a non-exclusive access easement, to AKA Energy Group, LLC, attached hereto, is hereby approved. Section 2. The mayor or mayor pro tern is authorized to sign and the city and county clerk to attest the attached Easement Grant, in form approved by the city & county attorney. Section 3. This resolution is effective upon approval by the City Council. APPROVED on June 10, THE CITY AND COUNTY OF BROOMFIELD, COLORADO ATTEST: Mayor City & County Clerk APPROVED AS TO FORM: 7(b) - Page 2

3 manent structure, building, ment Area. ve referred to, Grantee shall to the grade and condition it and expense. Grantee shall xcess earth resulting from he right-of-way at the sole shall have the right on the bstructions that may injure, ine. ntee shall at all times keep d pipeline easements used us weeds, litter and debris. is off the Easement Area at ly reclaim and reseed the d use their best efforts to hemicals or wastes on the arge, the Companies shall ws, rules, and regulations and waste of any nature he Grantees' operations or e with all applicable rules g jurisdiction over such hatsoever which are used, nd gas operations shall not all be discharged and held tanks. The Grantee shall lease or discharge of any strial, toxic or hazardous rea. Any such spill, release solvents, or hydrocarbons promptly be remediated in ischarge that is reportable 7(b) - Page 3

4 ereunder shall inure to and rs, successors, executors, he Easement Area and the ng, but not limited to, costs rolling, repairing, replacing nd Grantee shall and does all claims for damages or, maintaining, operating, e, and re-vegetation on the y for injury to person and property arising out of the rea. Nothing contained in e any waiver by Grantor of or any other immunity or anner which prevents any es or related materials or d by the Grantee in the as or other hydrocarbon ination has been caused by ediate and indemnify and ense. l matters shall be governed all Claims asserted by the ollution or environmental of the Easement Area, the ld interest by the Grantee, costs, fines and penalties onmental Laws or relating ironmental Claims shall not by any party, unless such im by a governmental body 7(b) - Page 4

5 d by applicable laws, the ntor, its insurers, elected, employees, agents, for personal injury, death, rantees' or their agents', er this Agreement or their e is the result of the City's, the above and foregoing ditional or different oral rantor or the Grantee with that any special provisions of, such special provisions, statutory and regulatory f the Colorado Oil and Gas ns and use of the Easement of oil and gas operations h all applicable law. At the Area, it shall abandon and this grant of easement shall s Easement Grant surviving (s) has/have executed this 7(b) - Page 5

6 PPROVED AS TO FORM: D COUNTY ATTORNEY 7(b) - Page 6

7 EXHIBIT "A" PROPOSED 12" STEEL PIPELINE LOCATION LOCATED IN THE NORTHWEST QUARTER OF SECTION 20, TOWNSHIP 4 NORTH, RANGE 64 WEST OF THE 6TH PRINCIPAL MERIDIAN, COUNTY OF WELD, STATE OF COLORADO SHEET 1 OF 1 <CITY OF BROOMFIELD SEWER ACTIVITY ENTERPRISE> REC NO FOUND SOUTHWEST CORNER SECTION /4" ALUMINUM CAP IN RANGE BOX "FREESE ENG. T4N R64W S18/S17/S19/S LS 4392" (PER MON REC 11/30/2011) <JOHN C. & JANET A. OSTER> REC NO /26/2006 S20 <CITY OF BROOMFIELD T4N SEWER ACTIVITY ENTERPRISE> EC NO R64W /-FOUND EAST QUARTER CORNER SECTION /8" ALUMINUM TUBING W/ 3 1/4" ALUMINUM CAP "9.92 T4N R64W 1/4 S19/S20 CHARLES 8 JONES LS 22098" (PER MON REC DATED 2/1/1993) JOB NUMBER: 14-62,967 (36) DRAWN BY: T. COLVIN DATE: FEBRUARY 24, 2014 REVISED: MARCH 3, 2014 REVISED: APRIL 21, 2014 THIS IS NOT A "LAND SURVEY PLAT' OR "IMPROVEMENT SURVEY PLAT" AND THIS EXHIBIT IS NOT INTENDED FOR PURPOSES OF TRANSFER OF 11TLE OR SUBDIVISIONS OF LAND. RECORD INFORMATION SHOWN HEREON IS BASED ON INFORMATION PROVIDED BY CLIENT. Flatirons, Inc. Surveying, Engineering & Geonralics (Mk 825 IRIS AVE, STE 395 BOULDER, CO PH: (303) FAX: (303) nvw. Flatironslnc.con, 7(b) - Page 7

8 EXHIBIT "A" PROPOSED 12" STEEL PIPELINE LOCATION LOCATED IN SECTION 19, TOWNSHIP 4 NORTH, RANGE 64 WEST OF THE 6TH PRINCIPAL MERIDIAN, COUNTY OF WELD, STATE OF COLORADO SHEET 1 OF 1 I FOUND SOUTH QUARTER CORNER SECTION 18 T4N R 64 W 6TH PM #6 REBAR W/ 3 1/4" ALUMINUM CAP 2005 T4N R64W 1/4 S18/S19 JONES LS KING SURVEYORS INC." (PER MON REC DATED 01/04/2006) WCR 44' S88'42'04"WJ 49.39' n n <JOHN C. & S19 JANET A. OSTER> I T4N REC NO /26/2006 R64W <CITY OF BROOMFIELD SEWER ACTIVITY ENTERPRISE> REC NO r PROPOSED BURIED ni 12" STEEL NATURAL GAS PIPELINE FOUND SOUTH QUARTER CORNER SEC110N /8" ALUMINUM PIPE W/ 3 1/4" ALUMINUM CAP "3-93 T4N R64W 1/4 S19/S30 CHARLES B. JONES LS 22098" (PER MON REC DATED 05/05/1993) JOB NUMBER: 14-62,967 (39-40) DRAWN BY. T. COLVIN DATE: MARCH 13, 2014 REVISED: APRIL 21, 2014 POINT OF TERMINUS WCR 42 N8S'34'20"E 28.93' THIS IS NOT A "LAND SURVEY PLAT" OR "IMPROVEMENT SURVEY PLAT" AND THIS EXHIBIT IS NOT INTENDED FOR PURPOSES OF TRANSFER OF TITLE OR SUBDIVISIONS OF LAND. RECORD INFORMATION SHOWN HEREON IS BASED ON INFORMATION PROVIDED BY CLIENT. Flatirons, Inc. Surveying, Engineering & Geomatics 3825 IRIS AVE, STE 395 BOULDER, CO PH: (303) FAX: (303) i,aw.flatironslnacom 7(b) - Page 8

9 PROPOSED 12" STEEL PIPELINE LOCATION LOCATED IN THE SOUTHWEST QUARTER OF SECTION 17, TOWNSHIP 4 NORTH, RANGE 64 WEST OF THE 6TH PRINCIPAL MERIDIAN, COUNTY OF WELD, STATE OF COLORADO SHEET 1 OF 1 FOUND- WEST QUARTER CORNER SECTION 17 #6 REBAR W/ 2 1/2" ALUMINUM CAP "IME T4N R64W S18/S LS 18263" (PER MON REC DATED 11/30/2011) PROPOSED BURIED 12" STEEL NATURAL GAS PIPELINE R64W <CITY OF BROOMFIELD SEWER ACTIVITY ENTERPRISE> REC NO SOUTHWEST CORNER SECTION /4" ALUMINUM CAP IN RANGE BOX "FREESE ENG. T4N R64W S18/S17/S19/S LS 4392" (PER MON REC 1113()Z2011) S89'14'28"W ' <CITY OF BROOMFIELD SEWER ACTIVITY ENTERPRISE> REC NO JOB NUMBER: 14-62,967 (35) DRAWN BY. T. COLVIN DATE: FEBRUARY 24, 2014 REVISED: MARCH 3, 2014 REVISED: APRIL 21, 2014 THIS IS NOT A "LAND SURVEY PLAT" OR "IMPROVEMENT SURVEY PLAT" AND THIS EXHIBIT IS NOT INTENDED FOR PURPOSES OF TRANSFER OF TITLE OR SUBDIVISIONS OF LAND. RECORD INFORMATION SHOWN HEREON IS BASED ON INFORMATION PROVIDED BY CLIENT IRIS AVE, STE 395 BOULDER, CO PH: (303) FAX: (303) (b) - Page 9