HomeMy WebLinkAbout09018ORDINANCE NO. 9018
AN ORDINANCE APPROVING A CONVEYANCE AGREEMENT
BETWEEN PUEBLO, A MUNICIPAL CORPORATION AND THE
BOARD OF WATERWORKS OF PUEBLO, COLORADO AND
BLACK HILLS/COLORADO ELECTRIC UTILITY COMPANY, LP,
A DELAWARE LIMITED PARTNERSHIP AND AUTHORIZING
THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAID
CONVEYANCE AGREEMENT
BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
The “Agreement for Conveyance of Southern Colorado Power Water Rights and Related
Facilities in Support of Historic Arkansas Riverwalk of Pueblo” (“Conveyance Agreement”) a
copy of which is attached hereto, having been approved as to form by the City Attorney, is
hereby approved. The President of the City Council is hereby authorized and directed to
execute said Conveyance Agreement for and on behalf of the City and the City Clerk is directed
to affix the seal of the City thereto and attest same.
SECTION 2.
The officers and staff of the City are directed and authorized to perform any and all acts
consistent with the intent of this Ordinance and the attached Conveyance Agreement to effectuate
the purposes of same.
SECTION 3.
This Ordinance shall become effective immediately upon final passage.
INTRODUCED July 25, 2016
BY: Ed Brown
PASSED AND APPROVED: August 8, 2016
City Clerk’s Office Item # R-2
Background Paper for Proposed
Ordinance
COUNCIL MEETING DATE: July 25, 2016
TO: President Stephen G. Nawrocki and Members of City Council
CC: Sam Azad, City Manager
VIA: Gina Dutcher, City Clerk
FROM: Daniel C. Kogovsek, City Attorney
SUBJECT: AN ORDINANCE APPROVING A CONVEYANCE AGREEMENT BETWEEN
PUEBLO, A MUNICIPAL CORPORATION AND THE BOARD OF
WATERWORKS OF PUEBLO, COLORADO AND BLACK HILLS/COLORADO
ELECTRIC UTILITY COMPANY, LP, A DELAWARE LIMITED PARTNERSHIP
AND AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE
SAID CONVEYANCE AGREEMENT
SUMMARY:
Attached is a proposed Ordinance approving and authorizing the President of City Council to sign
an “Agreement for Conveyance of Southern Colorado Power Water Rights and Related Facilities
in Support of Historic Arkansas Riverwalk of Pueblo” (“Conveyance Agreement”) between the City
of Pueblo (”City”) and the Board of Waterworks of Pueblo, Colorado (“Pueblo Water”) and Black
Hills/Colorado Electric Utility Company, LP (“Black Hills”).
PREVIOUS COUNCIL ACTION:
None.
BACKGROUND:
Black Hills is the owner of a coal fired power plant, known as Units 5 & 6, (“Power Plant”), located
within the Historic Arkansas Riverwalk of Pueblo (“HARP”). Black Hills is no longer generating
electricity at the Power Plant and is in the process of decommissioning the Power Plant.
Accordingly, Black Hills is not currently using its water rights or water facilities for cooling purposes
at the Power Plant. In support of the HARP project, Black Hills wishes to convey to Pueblo Water
the water rights associated with the Power Plant. Similarly, Black Hills wishes to convey to the
City the water facilities associated with the Power Plant. The water facilities being conveyed to
the City of Pueblo include the Diversion Dam on the Arkansas River, various gates, pipes,
conduits and culverts, a screen house and miscellaneous other items of personal property.
FINANCIAL IMPLICATIONS:
The conveyance of the water facilities from Black Hills will be at no cost to the City. However, the
City will incur costs in the future to maintain and make repairs to the water facilities, in order to
keep the HARP project operational.
BOARD/COMMISSION RECOMMENDATION:
Not applicable to this Ordinance.
STAKEHOLDER PROCESS:
Not applicable to this Ordinance.
ALTERNATIVES:
If this Ordinance is not approved the continued operation of the HARP project will be jeopardized.
RECOMMENDATION:
Approve the Ordinance.
Attachments: Proposed Ordinance and Conveyance Agreement