Agenda Packets - 2008/04/14 - Laserfiche WebLink

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Item No:11(B)1 Meeting Date: April 14, 2008 Type of Business: Reports Administrator Review: ___ City of Mounds View Staff Report To: Honorable Mayor and City Council From: James Ericson, Community Development Director Item Title/Subject: Xcel Energy Gas Transmission Line through City Introduction: As the City Council is aware, the City and Xcel are at somewhat of an impasse regarding Xcel’s proposed installation of a natural gas transmission line through the City. At issue were easements, route and an automatic shut-off valve. Discussion: Xcel began installing the transmission line last year within the County Road 10 right of way under a permit issued by Ramsey County. The City of Mounds View also issued a permit for utility work within our right of way, however Xcel did not act on the permit and it subsequently expired. One of the conditions of the permit approval was that Xcel would need to install an automatic shut-off valve in addition to the manual shut-off. Xcel has indicated they would install an automatic shut-off valve but only at the City’s expense. Xcel installed the manual shut-off valve on City-owned land last year, without the permission or grant of easement from the City. Through Kennedy & Graven, the City again asked Xcel to install the automatic shut-off valve at THEIR expense, or, compensate the City for the easement in an amount equivalent to the cost of the desired automatic valve. Xcel has responded by noting that the northern route of the pipeline would be changing to take advantage of street reconstruction work which will already be disrupting the area and then also noted that in terms of the automatic shut-off valve, the City is left with a choice— either accept fair market compensation for the easement needed or they will simply remove the manual shut-off valve altogether, not replacing it anywhere else. The following statement is from their letter, which is attached for the Council’s review: “Although the system without a valve will still comply with all applicable codes and regulations, the flexibility and other benefits provided by the valve (most of which inure to the benefit of the residents of the City) will be lost.” Staff has discussed the letter with Bob Vose of Kennedy & Graven, who points out that the City can either agree to their terms (one way or another) or simply hold firm to the position that as a condition of permit issuance, the automatic shut off valve is required to be installed at Xcel’s expense.