Item Coversheet
Commission Agenda Item
 

MEETING DATE:  8/10/2015

SUBJECT:  Modification of Easements to Duke Energy

PREPARED BY:  G.B.Wilson, Compliance and Risk Management Director

RECOMMENDED ACTION:

Approve the Agreement for the City to sell the proposed Easement and Supplemental Easement to Duke Energy Florida, Inc. upon receipt of $80,000 and authorize the Mayor and City Manager to execute all necessary documents to close the transactions.

 

Summary

Duke Energy Florida, Inc., as successor and assignee of Florida Power Corporation, owns and operates a transmission line that traverses the City limits from west to east and crosses four parcels of City property. Three of the parcels are contiguous (05949-006-000, 05949-011-004, 05949-019-000) and the fourth is on the extreme southwest corner of the Project Legacy property and contiguous to I-75 (03870-000-000). The three contiguous parcels include the south portion of NW 104th Terrace, the premises including the existing City water ground storage facility and the newly acquired property planned as the site of a new City Public Services Operations Center and Warehouse.

 

Easement over the three parcels (ground storage facility site, NW 104th Terrace and the operations center parcel) were released in 1995 by Florida Power when the University of Florida Foundation owned the property. The release was accomplished as a part of a much larger set of transactions taking place at the time. The public record reflects no easement of record for the existing transmission line now operated by Duke Energy Florida. This fact became known during title work at the time of the City acquisition of the operations center site. Discussions with Duke began shortly after the City acquired title to the operations center parcel.

 

The second easement issue presented as a part of this agenda item is a request by Duke for a Supplemental Easement over the small parcel (Legacy) where there is now located a portion of the same transmission line that crosses the three (104th Terrace) parcels. Duke is in the process of rebuilding the transmission line and the current 100' easement requires that all poles be located on the centerline. Duke requests a supplemental easement to move the existing pole 15' off the center line and added language to grant more flexible rights of use.

 

Both easement interests were discussed but considered separately. It was agreed the Sept. 23, 2014 appraisal valuation and purchase price per acre of the operations center parcel ($29,844) is to be used to value the area of the easements over the contiguous three parcels (2.08 acres) or $62,075. Negotiations brought the total payment to the City of $70,000 and plus a $10,000 payment to the City for the supplemental easement (Legacy) for a total of $80,000.   

 

 

 
FINANCIAL IMPACT: Yes
BUDGETED: No
AMOUNT:  $80,000
FUNDING SOURCE:  Other
ADDITIONAL FINANCIAL INFORMATION:Payments from Duke Energy Florida, Inc. for easements.
 
ATTACHMENTS:
Description
Duke Energy Easement Agreement
Duke Energy Transmission Easement _ Operation Center
Duke Energy Easement Operation Center Aerial Photo
Duke Energy Supplemental Easement_Project Legacy
Duke Easement _Project Legacy Aerial Photo