HomeMy WebLinkAboutKoch Pipeline-Easement Request-AGENDA ITEM
MAYOR & COUNCIL COMMUNICATION
DATE: 11/18/2014
CONSENT
ITEM
AGENDA ITEM: Koch Pipeline Right-of-Way Permit – Approve Easement in the
Demontreville Wildlife Area
SUBMITTED BY: Ryan Stempski, Assistant City Engineer
THROUGH: Dean A. Zuleger, City Administrator
REVIEWED BY: Jack Griffin, City Engineer
Cathy Bendel, Finance Director
Adam Bell, City Clerk
Alyssa MacLeod, Taxpayer Relations and Communications
SUGGESTED ORDER OF BUSINESS if removed from the Consent Agenda):
- Questions from Council to Staff ............................................ Mayor Facilitates
- Public Input, if Appropriate………………………………….Mayor Facilitates
- Call for Motion ............................................................. Mayor & City Council
- Discussion .................................................................... Mayor & City Council
- Action on Motion .................................................................. Mayor Facilitates
POLICY RECOMMENDER: Engineering/Right-of-way Management
FISCAL IMPACT: City to receive $113,400.
(1) Compensation to the City in the amount of $3,150 for the purchase of a pipeline easement
within the Demontreville Wildlife Area.
(2) Compensation to the City in the amount of $110,250 for the right to remove trees within the
proposed easement area.
SUMMARY AND ACTION REQUESTED:
The City Council is respectfully requested to consider approving a nonexclusive easement to
Koch Pipeline Company, L.P. for the construction of a 16-inch diameter steel pipeline as
reviewed and approved by the City Clerk. If removed from the consent agenda, the
recommended motion for the action is as follows:
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City Council Meeting \[Consent Agenda Item X\]
November 12, 2014
“Move to approve a Nonexclusive Easement to Koch Pipeline Company, L.P. within the
Demontreville Wildlife Area in the agreement form
as reviewed and approved by the City Clerk.”
LEGISLATIVE HISTORY/BACKGROUND INFORMATION:
The City received a Right-of-Way Permit from Koch Pipeline for the construction of a 16-inch
diameter steel pipeline to be located on a City parcel known as the Demontreville Wildlife Area,
located near Demontreville Park. Koch currently owns a 66-foot wide easement on the City-
owned parcel in the Demontreville Wildlife Area which includes two existing pipelines. Koch is
now requesting an additional easement area of 12,599 square feet to construct a third “reliever”
pipeline for safe transportation of oil and gas petroleum. Koch is pursuing similar easements
from MnDOT, to cross Trunk Highway 36, and from Pine Springs.
The City reviewed recent utility easement purchases to determine fair compensation, which was
determined to be $0.25 per square foot for a total of $3,150.
The proposed alignment of the new pipeline is through a heavily wooded area in the
Demontreville Wildlife Area. A tree inventory was completed by the Landscape Architecture,
Inc. on October 29, 2014 to accurately determine the potential tree loss associated with the
project. It was reported that 441 caliper inches of trees were located within the proposed
easement area (see attached Tree Inventory). At a current market value of $250 per caliper inch,
tree replacement was valued at $110,250. Koch Pipeline only plans to clear trees 30 feet wide
directly above the pipeline potentially resulting in less than ½ the total tree inventory valuation.
The remainder of the existing trees within the proposed easement area are not planned to be
removed unless deemed necessary for safety and/or future accessibility.
RECOMMENDATION:
Staff is recommending that the City Council consider approving, as part of the Consent Agenda,
a nonexclusive easement to Koch Pipeline Company, L.P. for the construction of a 16-inch
diameter steel pipeline in the agreement form as reviewed and approved by the City Clerk. If
removed from the consent agenda, the recommended motion for the action is as follows:
“Move to approve a Nonexclusive Easement to Koch Pipeline Company, L.P. within the
Demontreville Wildlife Area in the agreement form
as reviewed and approved by the City Clerk.”
ATTACHMENT(S):
1. Site Sketch of Proposed Koch Pipeline
2. Workspace Sketch
3. Tree Inventory Dated October 29, 2014
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