R-2011-04 acquisition of 0.0344 acres by condemnation/from CenterPoint/no action taken

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REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: March 28, 2011 Appropriation Requested By: Stephen L. Barr Source of Funds: N/A Department: Parks & Recreation Account Number: Report: Resolution: X Ordinance: Amount Budgeted: Exhibits: Takings Resolution Amount Requested: Exhibits: City Attorney letter to City Council Budgeted Item: YES NO X Exhibits: SUMMARY & RECOMMENDATION In December 2009 the City of La Porte sent a request for easement to CenterPoint Energy for a proposed bicycle - pedestrian pathway between the new Pecan Park and the Brookglen community. The easement is necessary to connect the park with the community across the CenterPoint power line corridor. The easement request was rejected by CenterPoint and the City began the process of obtaining a Takings Resolution in July of 2010. At that time, the Council directed staff to continue negotiations with CenterPoint to try to reach a solution. A new, shorter easement route was established, which met the CenterPoint request for a perpendicular crossing. CenterPoint's major concern is that the City cannot legally indemnify a public utility, so they feel that granting the easement places an undue liability burden on them. CenterPoint requested a License Agreement rather than an easement and the City agreed to entertain the proposal. Several draft versions of the agreement have been proposed by both sides. Staff members from both groups have continued to meet to try to resolve the problems associated with the language of the proposed License Agreement. For example, CenterPoint wanted the right to cancel the license with 90 days notice, without cause. The City was not comfortable with this condition, as well as others in the proposed agreement. On March 10 the City Attorney received notification from CenterPoint that they will not grant an easement or a license agreement for our use of the property and asked us to proceed with the condemnation suit (see attached Exhibit). In consultation with the City Attorney and the City Council, the only recourse the City has at this point, is to exercise our right of condemnation for the .0344 acres of land that we need to be able to build the pathway. The City Attorney will be obtaining an appraisal of the property values for the condemnation procedure. Council has recommended that staff present the attached Takings Resolution that will put CenterPoint on notice that the City intends to use condemnation power to obtain an easement on this property. Action ' • ' ired by Council: Con '.er apiroval of a Takings Resolution for acquisition of 0.0344 acres of land by condemnation from C= terPoin Energy as described in the metes and bounds in said Resolution, by the City of La Porte. A rov, "i for i C o nc! / A ends _3 „%i A Ron Bottoms, City Manager Date