Title:
A Resolution Authorizing The Acquisition Of Real Property From BNSF Railway Co. To Be Used For The Kelker To South Plant Transmission Project
Presenter:
Jessica K. Davis, Land Resource Manager, Colorado Springs Utilities
Travas Deal, Chief Executive Officer, Colorado Springs Utilities
Summary:
Colorado Springs Utilities (“Utilities”) requests that City Council approve a resolution that will allow Utilities to purchase real property, which is an approximately 6.981-acre portion of the parcel known as El Paso County Tax Schedule Number 6428300037, (“Property”) from BNSF Railway Co. for the Kelker to South Plant Transmission Project.
Previous Council Action:
None.
Background:
On June 26, 2020, the Utilities Board approved the new Electric and Gas Integrated Resource Plans (IRPs). The IRPs commit Utilities to a new energy future that is cost-effective, resilient and environmentally sustainable. The IRPs call for grid modernization, integration of more cost-effective renewable energy and incorporation of new technologies like energy storage.
The Kelker to South Plant Transmission Project (“Project”) will provide a new overhead single circuit 115kV transmission line from Kelker Substation to South Plant Substation. This added transmission infrastructure is needed to support the decommissioning of the South Plant Aeroderivative Generators. The Project is approximately 5 miles long and staff have been working with several private property owners, including the Colorado Department of Transportation, Union Pacific and BNSF Railroads, and City departments to acquire the property rights needed for the Project.
Pursuant to the provisions of the Colorado Springs City Charter, the City is empowered to acquire real property necessary for Utilities’ projects. Section 9.6 of The City of Colorado Springs Procedure Manual for the Acquisition and Disposition of Real Property Interests, Revised 2021 (the “RES Manual”) provides that if the total acquisition amount is greater than $100,000, City Council must approve the acquisition amount.
An independent real estate appraiser determined that the value of the Property is $1,043,000.
Utilities is requesting authorization to acquire real property for a total acquisition amount of $1,043,000 which is supported by the independent real estate appraisal.
Financial Implications:
This property acquisition is accounted for in Utilities’ 2025 project budget.
Board/Commission Recommendation:
Utilities Board reviewed and recommended this acquisition at its regular meeting on October 22, 2025.
Stakeholder Process:
Staff has met with and had regular communication with property owners impacted by the Kelker to South Plant Transmission Project for several years and will continue to communicate with stakeholders on a regular basis. In addition, negotiations with property owners are conducted in accordance with the RES Manual, and all applicable laws. In accordance with Section 4.1 of the RES Manual, Utilities Board reviewed and recommended the proposed acquisition at its October 22, 2025 regular Board meeting.
Alternatives:
Approve the resolution.
Deny the resolution.
Proposed Motion:
Motion to approve the proposed Resolution authorizing the acquisition of real property from BNSF Railway Co. to be used for the Kelker to South Plant Transmission Project.
Summary of Ordinance Language: