CCP 02-11-2002 - Laserfiche WebLink

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e e e Xcel Energy Utility Location and Construction Page 3 January 7, 2002 Option A - ignore the ordinance and allow Xcel Energy to construct overhead utility lines on the west side of Lexington A venue north from Highway 96 to County Road I, but require them to go through a permit process after the fact. Option B - require Xcel Energy to remove the overhead utility lines and place the utility underground as specified in the ordinance, obtain a rate per payer in the City of Arden Hills, and argue that the City of Arden Hills rate payers should not have to pick up the cost for the installation of the overhead lines due to the fact that Xcel Energy did not follow proper procedure and process for construction in the City of Arden Hills. Option C - require Xcel Energy to underground the utility north of Highway 96 to County Road I, as required in the ordinance, and obtain a ruling from the Public Utilities Commission that the requesting party does uot have to pay for the undergrounding, but the benefiting party has to pay for the cost of under grounding. *Staffwould note for Council that by the time you receive this iuformation Xcel Energy will have completed construction of the overhead utility lines and poles north of Highway 96 to County Road 1. City staff and City attorney felt that attempting to obtain an injunction against Xcel Energy for the construction of the overhead utility lines would not have produced the desired results, and created an adversarial situation that may have led to more cost to the City of Arden Hills and potential litigation. I had a brief discussion with the City Manager of Shoreview, and he is in support of the City of Arden Hills wanting the overhead utility lines removed. We did not have any conversation regarding the Shoreview users paying the cost of under grounding the utility lines. Xcel Energy representatives also indicated that the underground utility line running on Hamline Avenue through the TCAAP property will have to be changed in less than five years due to the reliability and the decomposition of the lines. There is question whether the users in Arden Hills would have to pick up the cost of reconstruction of that underground utility line. City Attorney Filla will provide information that he obtaiued through discussion with legal representatives of Xcel Energy and a legal course of direction for the City to consider.