CCP 02-11-2002 - Laserfiche WebLink

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I Xcel Energy Utility Location and Construction Page 2 January 7,2002 e When informed we have an ordinance that requires the utilities to be underground, they indicated that they would comply with that ordinance, but also told us that per a PUC (Public Utilities Commission) ruling, the requesting party had to pay for the underground work. They are indicating at this point that the cost could nm between $300,000-$400,000 for undergrounding. Staff did meet with Xeel representatives on Monday, February 4, 2002, to determine if they had any plans and could show us information about the construction that is currently taking place, and any other plans that they might have for redevelopment of the utility lines. They indicated that south of Highway 96 along Lexington Avenue to the sub station on County Road F, they would be undergrounding the utility, due to the fact that there was no room in the current right- of-way for overhead lines. They also indicated that they would be going west along County Road I from Lexington Avenue to at least Hamline A venue, where there is an underground extension through the TCAAP property. The purpose for the new utility line is to create redundancy and to supply additional power for the development that has occurred north of County Road I, specifically the Wis Park development area. Their claim is that the underground utility line through the TCAAP property has lUlYeliable service, and the single utility line on the east side of Lexington does not supply enough power for the current users and the anticipated increase in the number of users north of . County Road I in Shoreview. They did indicate that they had originally considered running the additional utility line on the east side of Lexington Avenue, but ruled that out due to the fact that a single man made or weather event could wipe out both utility services and a major portion of the area would be without service as a result of an accident or weather event. They also indicated that if the City forced them to go underground on the west side of Lexington Avenue north of Highway 96, not only would the City rate payers have to pay the cost of undergrounding but the cost for removal of overhead utility lines would be included. Xcel representatives are going to supply us with information about what an Arden Hills rate payer could be expected to pay as a result of the costs if the City were to require them to go underground. City staff did indicate to Xcel representatives that they had created a situation for the City, being placed between the fact that we have an ordinance requiring them to go underground, and potentially increasing the cost for rate users for the City of Arden Hills, after they had already started construction overhead without any plans, or obtaining the necessary permits and going through the planning process with the City of Arden Hills. RECOMMENDATION At this time staffrecommends that the City consider the following options. .