City Council Meeting Date: April 17, 2018
To: Mayor and City Council
City Administrator
From: Chris Heineman, Community Development Director
Dave Bennett, Public Works Director / City Engineer
Scott Tempel, City Planner
Title
Consideration of a Motion to Approve and Authorize the Mayor and City Clerk to Execute an Electric Easement for Xcel Energy
Body
Action Requested:
The Northfield City Council approves a Motion to approve and authorize the Mayor and City Clerk to execute an electric easement for Xcel Energy.
Summary Report:
City staff was approached by a representative from Xcel Energy in 2017 with a request for an electric easement from the City of Northfield for electrical distribution. The proposed electric easement will be immediately adjacent to an existing Xcel gas easement, and will enable the company to add a second distribution feeder line to the substation located along Highway 3 South at 1801 Cannon Road. The additional feeder is needed to increase reliability for large customers in the Riverview Drive Industrial Park.
The existing gas pipeline easement extends from the substation along Highway 3 South in the Riverview Drive Industrial Park to the Armstrong Road Industrial Park on the west side of the Cannon River. An overhead transmission line also exists within the current easement area. In order to make the required upgrades, Xcel needs to secure a new electric distribution easement from the City of Northfield to accommodate a second feeder line. Xcel also secured a private electric distribution easement from Upper Lakes Foods for the portion of the route that crosses private property between Riverview Drive and Cannon Road. The existing gas and transmission easements will remain as is.
Staff met with representatives from Xcel Energy to discuss the route and identify potential issues with the proposed easement expansion. As several public recreational amenities currently exist within this easement area, including the East Cannon River Trail and portions of Sechler Park, staff requested that the easement include language that permits the City of Northfield to develop, maintain, and construct public recreational amenities within the easement area. City Attorney Chris Hood drafted specific language that was incorporated in the final draft of the easement.
The City’s partnership with Xcel Energy is outlined in Chapter 82 of the Northfield City Code. Article VI, Section 82-401 through 82-512 deal specifically with the Electric and Gas Franchise Ordinances for Northern States Power (Xcel Energy). The Franchise Ordinance with Xcel is approved for a period of 20 years and was last adopted on December 4, 2012.
According to the Franchise Ordinance, Xcel Energy may construct, operate, repair and maintain electric and gas facilities in, on, over, under and across public grounds and public ways of the City. The requested easement specifically defines the area where the required expansion of a distribution feeder line will be constructed. Xcel Energy Community Relations and Economic Development Manager Trisha Rosenfeld will be in attendance at the meeting to address any additional questions that City Council members may have.
Alternative Options:
The proposed easement corridor is the only technically feasible location for the required improvements and provides a sustainable and efficient location for the utility upgrade. No alternative options are recommended for the proposed upgrade.
Financial Impacts:
In consideration of the granting of the electric easement, the City of Northfield will receive the sum of $1.00 from Northern States Power Company (Xcel Energy). No other financial impacts are associated with the granting of this easement.
Tentative Timelines:
If the easement is approved, construction will commence in May of 2018. Both Phase I and Phase II of the project will be completed by the end of 2018.