Item Coversheet
ALAMOSA CITY COUNCIL
COUNCIL COMMUNICATION


Subject/Title:
Purchase of storm water discharge easement in Alamosa Ditch (Hickory Jackson Ditch)
Recommended Action:

Approve the purchase of a storm water discharge easement in the Alamosa Ditch for $69,648 and authorize the City Manager to sign the attached easement agreement.


Background:
Development in the western portions of the city is limited by the ability to handle the storm water generated by hard surfaces.  Development of curb and gutter in the already developed Washington Addition is hampered by an inability to adequately dispose of storm water, and development in newer parts of the western edge of the city is similarly hampered by storm water considerations.  With its streets plan, the City has committed to development of curb and gutter in the Washington Addition that will require methods to address storm water. Similarly, currently progressing development of new land in the western parts of the city south of Highway 160 will require means to address storm water.

That part of the city lying east of Highway 285 is served by storm water facilities that discharge storm water into the Alamosa Ditch (also known as the Hickory Jackson Ditch). Such discharges are made pursuant to a May 26th, 1983, agreement with the Hickory-Jackson Ditch Company.  A copy is attached below. The agreement runs through 2033.  Since the fall of 2018, staff, pursuant to Council direction, has been negotiating with the Hickory Jackson Ditch Company to extend that discharge ability to the west of highway 285 to accommodate existing and new development, and to make the agreement permanent.

The largest issue with coming to terms has been the value of the easement.  The prior easement was not supported by any consideration other than the maintenance obligations undertaken by the City pursuant to the agreement itself.  To break the logjam on value, the City engaged Wright Water Engineers to perform an appraisal of the proposed easement, including the existing stretch. A copy of the appraisal is attached below.  The appraised value came in at $47,100 for a permanent easement. The proposed purchase price is $69,648 to  compensate the Ditch Company for engineering and legal expenses it incurred during the negotiation.

Another factor slowing the negotiations, and a large part of the eventual terms found in the easement that is the subject of this agenda item, is the assurance that the discharge does not damage the ditch from a water quality perspective.  Paragraph 6 of the agreement addresses those issues, and was informed by a water test the City performed on storm water discharge from the big snow event in September of 2020.
Issue Before the Council:

Does Council wish to authorize the City Manager to sign the attached agreement?


Alternatives:

(1) (Recommended alternative) Approve the purchase of the storm water discharge agreement for $69,648 and authorize the City Manager to sign the attached agreement.

(2) Decline to approve the agreement, and schedule a future executive session to further instruct negotiators on changes to the agreement, and the potential for condemnation if an agreement cannot be reached.  The City has already engaged a condemnation specialist, who has been assisting in getting us to this point.

(3) Decline to approve the agreement or to pursue negotiations any further.  This will have a significant negative impact on the ability of the City to meet its commitments under the streets plan and to accommodate future development.



Fiscal Impact:
The fiscal impact is $69,648, which will come out of the Enterprise Fund line item 03-5-02-73511. The purchase price and expenses related to a condemnation action  if no negotiated settlement is reached could easily double that figure.  This amount has been factored into the the 10-year fund balance for the Enterprise fund and can be absorbed.  The amount cannot be covered by ARPA since it relates to future growth.

Legal Opinion:
City Attorney will be available to discuss any legal issues pertaining to the agreement.

Conclusion:
This agreement will ensure that storm water from that portion of the city west of Highway 285 and south of Highway 160 can be efficiently dealt with in addition to replacing the previous 1983 agreement that expires in 2033.  This is a permanent easement.
ATTACHMENTS:
DescriptionType
Storm water easementExhibit
Exhibit A to easementExhibit
Exhibit B to EasementExhibit
1983 agreementBackup Material
appraisalBackup Material