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HomeMy WebLinkAbout11500RESOLUTION NO. 11500 A RESOLUTION AUTHORIZING CLOSING UNDER TWO AGREEMENTS FOR THE SALE AND PURCHASE OF PROPERTIES FROM CF &I STEEL, L.P., A DELAWARE LIMITED PARTNERSHIP, AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE ALL TITLE INSTRUMENTS FOR AND ON BEHALF OF THE CITY, AND AUTHORIZING THE CITY MANAGER TO EXECUTE ALL OTHER INSTRUMENTS AND CLOSING DOCUMENTS ASSOCIATED THEREWITH WHEREAS, City Council, on August 11, 2008, adopted Resolution No. 11367 approving two agreements for the sale and purchase of properties from CF &I Steel, L.P., a Delaware Limited Partnership for the Lake Minnequa project, and WHEREAS, Resolution No. 11367 required Staff to undertake and complete certain investigations related thereto and report the results thereof to Council and required that Staff provide a financial impact report to Council prior to closing of the purchase of said properties; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. The Lake Minnequa Property Acquisition Impact Report, a copy of which is attached hereto, is hereby received and filed by City Council. SECTION 2. Council hereby finds and determines that the conditions imposed by Council under Resolution No. 11367 have been met, and that closing of the transactions contemplated under the Agreement For Sale and Purchase of Property (Lands) dated June 27, 2008, between the City and CF &I Steel, L.P., a Delaware Limited Partnership and the Agreement For Sale and Purchase of Property (Raw Water Pipeline) dated June 27, 2008, between the City and CF &I Steel, L.P., a Delaware Limited Partnership (collectively, the "Agreements ") is hereby authorized. SECTION 3. The President of City Council is authorized and directed to execute for and on behalf of the City all title instruments required to close the transactions under the Agreements, and the City Clerk shall attest same, and the City Manager is hereby authorized and directed to execute all other instruments and closing documents as may be required to complete the transactions contemplated by the Agreements. SECTION 4. This Resolution shall become effective immediately upon final passage and approval. INTRODUCED: December 22. 2008 BY: Randv Thurston ���1132; T Councilperson ATTACHMENT 1 Lake Minnequa Financial Impact Report December 15, 2008 PHASE 1 COSTS AND EXPENSES The initial costs for Phase 1 of the project is estimated to be $5,150,000 which will be paid through funding from GOCO ($2.3 million), Lower Arkansas Valley Water Conservancy District ($600,000), Colorado Division of Wildlife "Fishing Is Fun" grant ($100,000), Housing and Urban Development Special Project Funds ($118,600), and Colorado Energy Impact Assistance Funds ($650,000). The City funds included in the project budget include Stormwater Utility funds ($725,000) over a three -year period, City conservation trust funds received by the City of Pueblo from the State of Colorado ($300,000), and City General Funds in the amount of $336,400. In -kind contributions to the project include the Colorado Division of Wildlife stocking the lake with fish ($10,000) and the Arkansas Valley Audubon Society placing bird habitat structures at locations around the lake ($10,000). SOURCES OF FUNDS GOCO Applicant Match Cash Partner Match In -Kind Partner Match Total CASH GOCO Funds 2,300,000 2,300,000 Lower Ark. Water Conserv. 600,000 600,000 Fishing Is Fun 100,000 100,000 City General Funds 336,400 336,400 City of Pueblo Stormwater Funds 675,000 50,000 725,000 HUD - EDI Funds 118,600 118,600 City CTF Funds 300,000 300,000 State of Colorado EIAF funds 650,000 650,000 IN -KIND (itemize) CO Division of Wildlife 10,000 10,000 Arkansas Valley Audubon 10,000 10,000 Total Sources of Funds 2,300,000 1,311,400 1,468,600 70,000 5,150,000 The initial costs for Phase 1 of the project is estimated to be $5,150,000 which includes lowering the two outlet pipes from the lake, constructing storm water forebays, water quality ponds /wetlands, removal of invasive plants, soil cover and vegetating 1.5 -acre slag area, trails, park roadway and parking areas, shoreline grading and revegetation, and two 3 -acre park areas. USES OF FUNDS GOCO Applicant Match Cash Partner Match In -Kind Partner Match Total 1. Acquisition a. Property Acquisition (Lands) 700,000 400,000 1,100, 000 b. Property Acquisition (Raw Water) 400,000 400,000 2. Design & Engineering 100,000 100,000 200,000 3. Lake Habitat Enhancement a. Non - native Plant Removal 25,000 25,000 50,000 100,000 b. Fish Stocking 10,000 10,000 c. Earthwork for Fish Habitat 100,000 100,000 200,000 d. Special Habitat Features 20,000 20,000 10,000 50,000 c. Wetland Enhancement 450,000 235,000 155,000 840,000 d. Shoreline Vegetation 100,000 70,000 30,000 200,000 4. Park Improvements a. Parking /Access 150,000 50,000 250,000 450,000 b. General Park Features 470,000 411,400 208,600 1,090,000 c. Shoreline Improvements 20,000 20,000 40,000 d. Trails 265,000 205,000 470,000 Total Uses of Funds 2,300,000 1,311,400 1,468,600 70,000 5,150,000 Notes: 1) This budget reflects the full funding of the project with $2.3 million from GOCO and $2.85 million in City and partner funding. 2) The value of in -kind water rights estimated to be $3.7 million is not shown in this budget. 3) Water rights breakdown: Pueblo Board of Water Works $1.5 million and LAVWCD $1.2 million. PHASE 1 PROJECTED OPERATION AND MAINTENANCE COSTS The projected cost for the operation and maintenance of the Phase 1 improvements for Lake Minnequa are estimated to be $128,750 per year. The maintenance costs includes two 3 -acre developed park areas, wetlands (24 acres), natural undeveloped areas (116 acres), open water areas (100 acres), shoreline areas (30 acres), natural surface trails /maintenance roads (2.5 miles), and the Minnequa Feeder Ditch corridor and ditch (35 acres). The six acres of turf grass will be under a warranty with the contractor for the first year of operation. Therefore the majority of the turf care costs will not be incurred until the second year of operation. The following tables provides an estimate of the projected costs for the operation and maintenance of the Lake Minnequa Park and Open Space project including the feeder ditch right -of -way from the St. Charles Lake No. 2 to Lake Minnequa. The operation and maintenance expenses for the developed park areas is based on the Park and Recreation Assessment data provided by GreenPlay, Inc. which identified a cost of $5,000 per acre for an enhanced level of park maintenance compared to the city's base level of park maintenance. Estimated Operation & Maintenance Cost — Minnequa Lake Area Acres Maintenance Cost (per acre) Total Developed park 6.0 $5,000 $ 30,000 Wetland areas 24.0 $ 500 $ 12,000 Undeveloped park 120.0 $ 250 $ 30,000 Open water 100.0 $ 100 $ 10,000 Shoreline areas 30.0 $1,000 $ 30,000 Feeder Ditch Corridor 35.0 $ 250 $ 8,750 Trails /Maintenance Roads 4.0 $2,000 $ 8,000 Total 319.0 $403.60 $128,750 100 -YEAR STORM EVENT DESIGN Michael L. Graber, P.E., Colorado Division of Water Resources has approved the plan and design for the Lake Minnequa Hydrology related to containing the 100 -year storm event within Lake Minnequa. The approval is based on a new design of the shoreline and the lowering of the two outlet pipes. Attached is the email received from Mr. Graber indicating his recommendation for approval from the State Dam Engineers Office. - - - -- Original Message---- - From: Graber, Mike [mailto:Mike.Graber @state.co.us] Sent: Monday, November 24, 2008 2:09 PM To: Dennis Maroney Subject: Lake Minnequa Hydrology Hello Dennis- I thought I would advise you that I sent a draft letter to our department head approving the Lake Minnequa Hydrology. Michael L. Graber, P.E. Colorado Division of Water Resources 310 East Abriendo Ave., Suite B Pueblo, CO. 81004 719 - 542 -3368 ext 2117 Office 719 - 250 -7533 Cell mikegrabetka tate. co. us ENVIRONMENTAL TESTING OF WATER AND PROPOSED DREDGING SITES Terracon Consulting Engineers & Scientists completed environmental sampling of the water within Lake Minnequa and the soils where dredging activities would occur near the edges of the shorelines within the lake. The surface water samples were compared to the drinking water supply standards provided by the Colorado Department of Health and Environment ( CDPHE), effective May 31, 2008. With the exemption of the selenium concentration of the water sample taken at the inlet to the lake, the reported concentrations of tested materials did not exceed their respective standards. According to the CDPHE regulations selenium in the Lower Arkansas River Basin near the City of Pueblo results from natural sources and is not regulated based on Total Maximum Daily Load (TMLD) criteria. The results of the tests within the proposed dredging sites indicated that parameter concentrations for tested materials were not detected above their respective detection limits. Arsenic was detected in all of the sediment samples analyzed, but was at levels according to Colorado Department of Health and Environment ( CDPHE) personnel that is typically less than normally occurring background levels. Based on the reported concentrations, CDPHE would not require further action with respect to arsenic in the soil. Based on Terracon's observed surface and subsurface conditions, and the results of laboratory analyses for the samples collected on November 5, 2008, additional site investigation activities are not recommended at this time. A copy of the three -page cover letter, map showing testing locations, and summaries of Table 3 and Table 4 are included with this report. SITE CLEANUP PLAN The City has contracted with All -Phase Environmental to complete the submittal of an application for the approval of a cleanup plan for the 1.5 -acre slag area on the southeast side of Lake Minnequa adjacent to Lakeshore Drive. The application will be submitted by December 19 to the Colorado Department of Public Health and Environment. The plan will ask for approval to cover the existing slag material with clean fill material and revegetate the 1.5 -acre area as part of the park development. Discussions with staff at the CDPHE have indicated that this cleanup plan will be acceptable to them, but they will not formally approve the plan until an application is filed and reviewed by their department. GOCO GRANT The City staff prepared a proposed modification to the scope of the grant contract for the Lake Minnequa project based on more detailed cost projections for the specific project improvements identified through the master plan. A copy of the memorandum from the GOCO staff to the GOCO Board dated December 1, 2008 is included with this report. The GOCO staff recommendation includes the following: 1. Approval of the revised scope of work and adjustments to the project budget categories. GOCO funding to remain at $2.3 million for project. 2. GOCO funds will not be reimbursed to the City until the acquisition and all project improvements are completed. 3. The project, including all recreational features and improvements, will be required to be completed by September 1, 2009 or funding will be automatically deauthorized by GOCO without any further action by the Board. E ������ L MOW Background Paper for Proposed RESOLUTION AGENDA ITEM # 19 DATE: DECEMBER 22, 2008 DEPARTMENT: PLANNING AND COMMUNITY DEVELOPMENT JERRY M. PACHECO, DIRECTOR TITLE A RESOLUTION AUTHORIZING CLOSING UNDER TWO AGREEMENTS FOR THE SALE AND PURCHASE OF PROPERTIES FROM CF &I STEEL, L.P., A DELAWARE LIMITED PARTNERSHIP, AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE ALL TITLE INSTRUMENTS FOR AND ON BEHALF OF THE CITY, AND AUTHORIZING THE CITY MANAGER TO EXECUTE ALL OTHER INSTRUMENTS AND CLOSING DOCUMENTS ASSOCIATED THEREWITH ISSUE Should City Council authorize closing under two agreements for the sale and purchase of properties from CF &I Steel, L.P., a Delaware Limited Partnership relating to the Lake Minnequa Project? RECOMMENDATION Approval of the Resolution. BACKGROUND City Council adopted Resolution No. 11367 approving two agreements for the sale and purchase of properties from CF &I Steel, L.P., a Delaware Limited Partnership relating to the Lake Minnequa Project. The Agreement For Sale and Purchase of Property (Lands) includes the 243 -acre Lake Minnequa property and the property and right -of -way for the Minnequa Feeder Ditch. The Agreement For Sale and Purchase of Property (Raw Water Pipeline) pertains to the acquisition and use of the CF &I raw water pipeline from Lake Minnequa excluding the section of pipeline that is within the Enraz /Rocky Mountain Steel Mills property. Section 2 of Resolution No. 11367 required Staff to complete an investigation and report to Council concerning issues raised by Council and citizens concerning the purchase of the Lake Minnequa properties. The above referenced Resolution included the following issues that have been addressed in the Lake Minnequa Impact Report which is included as Attachment 1 to this Resolution. Issues identified in Resolution No. 11367 to be addressed in Impact Report: 1. An Impact Report identifying ongoing maintenance /initial costs of project. 2. Verification that the storm water detention design for Lake Minnequa will meet the 100 -year storm event within the Lake Minnequa storm water basin. 3. A report of the results for environmental testing of the soils proposed for dredging and the water quality testing of the water within the lake. FINANCIAL IMPACT The initial costs for Phase 1 of the project is estimated to be $5,150,000 which will be paid through funding from GOCO ($2.3 million), Lower Arkansas Valley Water Conservancy District ($600,000), Colorado Division of Wildlife "Fishing Is Fun" grant ($100,000), Housing and Urban Development Special Project Funds ($118,600), and Colorado Energy Impact Assistance Funds ($650,000). The City funds included in the project budget include Stormwater Utility funds ($725,000) over a three -year period, City conservation trust funds received by the City of Pueblo from the State of Colorado ($300,000), and City General Funds in the amount of $336,400. In -kind contributions to the project include the Colorado Division of Wildlife stocking the lake with fish ($10,000) and the Arkansas Valley Audubon Society placing bird habitat structures at locations around the lake ($10,000). GOCO funds will not be reimbursed to the City until the acquisition and all project improvements are completed. The project, including all recreational features and improvements, will be required to be completed by September 1, 2009 or funding will be automatically deauthorized by GOCO without any further action by the Board. The projected cost for the operation and maintenance of the Phase 1 improvements for Lake Minnequa are estimated to be $128,750 per year. The maintenance costs includes two 3 -acre developed park areas, wetlands (24 acres), natural undeveloped areas (116 acres), open water areas (100 acres), shoreline areas (30 acres), natural surface trails /maintenance roads (2.5 miles), and the Minnequa Feeder Ditch corridor and ditch (35 acres).