Loading...
HomeMy WebLinkAbout09633RESOLUTION NO. 9633 A RESOLUTION APPROVING A THIRD EASEMENT EXTENSION BETWEEN THE CITY OF PUEBLO, A MUNICIPAL CORPORATION AND AQUILA, INC., FORMERLY UTILICORP UNITED, INC., DBA WESTPLAINS ENERGY RELATING TO A PARCEL OF LAND AT THE PUEBLO HONOR FARM AND AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME. BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. The Third Easement Extension dated June 24, 2002 between the City of Pueblo, a municipal corporation and Aquila, Inc., formerly UtiliCorp United, Inc., dba WestPlains Energy relating to a parcel of land at the Pueblo Honor Farm, a copy of which is attached hereto, having been approved as to form by the City Attorney, is hereby approved. SECTION 2 The President of the City Council is authorized to execute and deliver the Third Easement Extension in the name of the City and the City Clerk is directed to affix the seal of the City thereto and attest same. INTRODUCED: June 24, 2002 BY: Al Gurule COUNCILPERSON t APPROVED: W' PRES'IDtNT OF THE CITY COUNCIL ATTESTED BY: CITY CLERK / &v - " 9&,33 _77"fl: Background Paper for Proposed RESOLUTION AGENDA ITEM # I q DATE: JUNE 24, 2002 DEPARTMENT: PLANNING & COMMUNITY DEVELOPMENT/ JIM MUNCH TITLE A RESOLUTION APPROVING A THIRD EASEMENT EXTENSION BETWEEN THE CITY OF PUEBLO, A MUNICIPAL CORPORATION AND AQUILA, INC. FORMERLY UTILICORP UNITED, INC., DBA WESTPLAINS ENERGY RELATING TO A PARCEL OF LAND AT THE PUEBLO HONOR FARM AND AUTHORIZING THE PRESIDENT OF CITY COUNCIL TO EXECUTE SAME. ISSUE Shall City Council approve a Third Easement Extension for 25 -years with Aquila, Inc., over and across land owned by the City of Pueblo for the purposes of allowing them to continue the operation and maintenance of an outdoor electrical substation with overhead electrical power transmission lines on the property commonly known as the Honor Farm? RECOMMENDATION Approval of this Resolution. BACKGROUND The City of Pueblo purchased 2,353 acres from the State of Colorado in July 2001 for property known as the State Honor Farm. A portion of this property was previously leased by WestPlains Energy from the State of Colorado and contains an outdoor electrical substation with overhead electrical power transmission lines. Their lease expired on December 31, 2001. The City granted a six -month temporary easement allowing WestPlains to legally occupy and operate their facilities on City property. The six -month temporary easement expires in June 2002 and was issued in order to allow the City time to develop a more definitive plan for the designated access routes, future uses and development of the property, and an agreement that will comply with the existing conservation easement that was granted by the City to the State of Colorado. The attached Third Easement Extension will be the final easement and take the place of the temporary easement. FINANCIAL IMPACT WestPlains will pay the City a sum of $34,731 for the 25 -year easement. THIRD EASEMENT EXTENSION THIS THIRD EASEMENT EXTENSION is made and entered into this 24th day of June, 2002, by the City of Pueblo, a Municipal Corporation, with offices at 211 East D Street, Pueblo, Colorado 81003 (the " City "), and Aquila, Inc., a Delaware corporation, formerly UtiliCorp United, Inc., d/b /a WestPlains Energy, whose address is 105 South Victoria, Pueblo, Colorado 81003 ( " WestPlains "). WHEREAS, the State of Colorado, in connection with its property used by and in the affairs of the Colorado State Hospital, an institution of the State of Colorado, entered into a lease dated August 15, 1951, recorded at Book 1713 Page 852, Reception Number 423983 of the Pueblo County Clerk & Records Office (the " Initial Lease ") with the Southern Colorado Power Company for two (2) tracts of land (the " Property ") described on Exhibit A, attached hereto, for the purposes of an electric transmission line right -of -way and an electric substation, for a term of twenty -five (25) years; and WHEREAS, the Initial Lease was renewed prior to its expiration in the form of an Easement (the " Renewal Easement ") granted by the State of Colorado, Department of Institutions, Colorado State Penitentiary, as the successor -in- interest to the Colorado State Hospital, to the Central Telephone & Utilities Corporation, successor by merger to Southern Colorado Power Company, said Renewal Easement dated on or about February 2, 1976 and being granted for an additional term of twenty -five (25) years beyond the Initial Lease and expiring August 14, 2001; and WHEREAS, WestPlains is the successor -in- interest to Southern Colorado Power Company under the Renewal Easement; and WHEREAS, by Easement Extension dated June 13, 2001, recorded October 12, 2001 at Reception Number 1406158, the State of Colorado granted to WestPlains an extension of the Renewal Easement commencing August 15, 2001, and expiring December 31, 2001; and WHEREAS, the City is the successor -in- interest to the State of Colorado as the owner of the Property; and WHEREAS, by Second Easement Extension dated December 26, 2001, recorded February 28, 2002 at Reception Number 1427527, the City granted to WestPlains an extension of the Renewal Easement commencing January 1, 2002 and expiring June 30, 2002; and WHEREAS, WestPlains has elected to exercise its right to extend the term of the Renewal Easement as set forth therein. NOW THEREFORE, it is understood as follows: 1. The term of the Renewal Easement is hereby extended to August 14, 2026. 2. As consideration for WestPlains' right to extend the term of the Renewal Easement as herein set forth, WestPlains shall pay to the City the sum of $34,731.00. KC- 949331 -1 3. All other provisions and agreements of the Renewal Easement, including, without limitation, the right of WestPlains to renew the term of the Renewal Easement for additional successive terms of twenty -five (25) years, indefinitely, upon payment in full of additional consideration in the amount set forth in this Third Easement Extension, shall remain in full force and effect in all other respects. i CITY Of PUEBLO, a Municipal Corporation By: Cz u--� -� Name: Michael Occhiato Title: President of City Council AQUILA, INC., d/b /a WestPlains Energy C Name: Gary C. Stone Title: Vice President — Network Management KC- 949331 -1 2 STATE OF COLORADO ) ss COUNTY OF PUEBLO ) The foregoing instrument was acknowledged before me the day f C.0 I , 2002, by M'I _j ©Cch Cdn , as President of the City Council, and rbi r as Ci��f the City of Pueblo, a municipal corporation. J; : [SEAL] L AV G: P� OF rin�..� My Commission E)*s OBl2tOM and official seal. Si _ll STATE OF COUNTY OF ) ss f � , Le ' . !_A' The foregoing instrument was acknowledged before me the 2002, by Delaware Corporation. Witness my hand and official seal. [SEAL] My Commission Expires: as day of , of UtiliCorp United Inc., a Notary Public Name KC- 949331 -1