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D-5 Easement Agreement with Xcel for PIN 251790030CITY OF CNANHASSEN 7700 Market Boulevard PO Box 147 Chanhassen, MN 55317 Administration Phone: 952.227.1100 Fax: 952.227.1110 Building Inspections Phone: 952.227.1180 Fax: 952.227.1190 Engineering Phone: 952.227.1160 Fax: 952.227.1170 Finance Phone: 952.227.1140 Fax: 952.227.1110 Park & Recreation Phone: 952.227.1120 Fax: 952.227.1110 Recreation Center 2310 Coulter Boulevard Phone: 952.227.1400 Fax: 952.227.1404 Planning & Natural Resources Phone: 952.227.1130 Fax: 952.227.1110 Public Works 7901 Park Place Phone: 952.227.1300 Fax: 952.227.1310 Senior Center Phone: 952.227.1125 Fax: 952.227.1110 Website www.ci.chanhassen.mn.us D -5 MEMORANDUM TO: Paul Oehme, Public Works Director /City Engineer 0 FROM: Alyson Fauske, Assistant City Engineer DATE: July 27, 2015 SUBJECT: Approve Easement Agreement with Xcel Energy for PIN 251790030 (Bluff Creek Preserve Area Located West of Lake Drive West) PROPOSED MOTION "The City Council is recommended to adopt the attached resolution dedicating a utility easement on PIN 251790030 in favor of Xcel Energy as described on the attached exhibits. City Council approval requires a super majority vote of the City Council present. BACKGROUND The state Public Utilities Commission has approved Xcel Energy's request to install a 115 kV overhead transmission power line from the substation located south of Chanhassen High School. This work is part of a regional upgrade project to improve the load serving capability of the electrical system and improve the operational flexibility to withstand outages. Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow Paul Oehme Grant of Permanent Easement to Xcel Energy PID 251790030 July 27, 2015 Page 2 The existing poles in the area carry one 115 kV and one 69 kV line. Approximately nine poles will be installed. The existing 69 kV line will be transferred to the new poles. The existing 115 kV line will remain on the existing poles, and the additional 115 kV line will be located on the existing poles. Xcel Energy has indicated that the two, 115 kV are proposed in lieu of one, higher capacity line to increase the reliability of the system. Additionally one higher capacity line would require existing equipment and two substations to be retrofit which would significantly increase the project cost. The 69 kV line will remain as it provides service to other communities that are south and east Lake Minnetonka; elimination of this line would require new transmission lines within a different corridor. Overhead lines are proposed for safety reasons, reducing the time of an outage, ease of maintenance and reduced costs. Repair of underground lines is a longer process due to the excavation required, which results in a delay in restoring service. Installation of underground line is seven to 10 times more expensive than overhead; user rates would increase to cover the additional cost to bury. The alignment of the new line considered the stream, wetland, two high pressure gas lines, sewer, and water main located in the project area. Installation of the new line west of the existing line minimizes the impacts while considering the system's reliability and its long term maintenance needs. If wetland impacts exceed %2 acre Xcel Energy must mitigate the impacts. c: Brian Sullivan, Xcel Energy (via email) Attachments: Resolution Easement document and drawing Email string from Brian Sullivan, Xcel Energy, June 9 through July 6 gAeng \alyson \easements\xcel easement 20150727.docx CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA DATE: July 27, 2015 RESOLUTION NO: 2015 -XX MOTION BY: SECONDED BY: A RESOLUTION APPROVING THE CONVEYANCE OF AN EASEMENT WHEREAS, the City is the owner of Outlot A, Chanhassen Business Center ( "City Property "); and WHEREAS, Northern States Power Company, a Minnesota corporation d/b /a Xcel Energy ( "NSP ") has requested that the City grant NSP an easement over a portion of the City Property ( "Subject Easement "); and WHEREAS, Minn. Stat. § 462.365, Subd. 2 requires that the Planning Commission review the City's proposed disposal of real property for compliance with the comprehensive plan and to report to the City Council in writing its findings; and WHEREAS, Minn. Stat. § 462.356, Subd. 2 provides for an exception from the requirement for review by the Planning Commission upon 2/3 vote of the City Council dispensing with the requirement and finding that the disposal of the real property has no relationship to the comprehensive municipal plan. NOW THEREFORE BE IT RESOLVED by the City Council of the City of Chanhassen: The City Council finds that conveyance of the Subject Easement has no relationship to the comprehensive municipal plan. The requirements of Minn. Stat. § 462.356 are hereby dispensed with. 2. The Mayor and City Manager are hereby authorized to execute and deliver an easement from the City to NSP in the form attached hereto. Passed and adopted by the Chanhassen City Council this 27th day of July, 2015. ATTEST: Todd Gerhardt, City Manager Denny Laufenburger, Mayor YES NO ABSENT EASEMENT The undersigned, City of Chanhassen, a municipal corporation, under the laws of the State of Minnesota, hereinafter called "Grantor ", in consideration of the sum of One Dollar ($1.00) and other good and valuable consideration to Grantor in hand paid by Northern States Power Company, a Minnesota corporation, d/b /a Xcel Energy, hereinafter called "NSP ", does hereby grant unto NSP, its successors and assigns, the perpetual right, privilege and easement to construct, operate, maintain, use, rebuild, or remove electric lines with all towers, structures, poles, foundations, crossarms, cables, wires, guys, supports, counterpoises, fixtures, and devices appurtenant to said lines through, over, under and across the following described lands situated in the County of Carver State of Minnesota, to -wit: as described on the attached Exhibit A (hereinafter called "Premises ") Except for the right of access and temporary construction area, said easement shall be limited to: as described on the attached Exhibit A (hereinafter called "the Easement Area ") The rights granted herein may be exercised at any time subsequent to the execution of this document. The grant of easement herein contained shall also include the right to enter upon the Premises, to survey for and locate said lines and shall also include the right to trim or remove from said Easement Area any structures, trees (including tall or leaning trees located within the Premises adjacent to the Easement Area, which may endanger said lines by reason of falling thereon) or objects, except fences, which in the opinion of NSP will interfere with said lines. Grantor agrees not to erect any buildings, structures or other objects, permanent or temporary, except fences, upon the Easement Area. Grantor further agrees not to plant any trees within the Easement Area without the prior express written approval from NSP, nor to not perform any act which will interfere with or endanger said lines. The grant of easement herein contained shall also include the right of NSP to have reasonable access to said Easement Area across the Premises. The grant of easement herein contained shall also include the right of reasonable temporary use by NSP of Premises adjacent to said Easement Area during construction, repair or replacement of said transmission lines, for additional construction area. NSP File: R. 23W, Twp. 116N, Section 15. Line No. 5516, 5569 &0734 S: \General- Offices -GO -Trans\ SLR - Project - Warehouse \Electric \Transmission\5500 -5599 \5516\5516 Scott Cty -MN River 115kV Reterminate at Esm't W011968133\Easement Descriptions \Chanhassen Easement (2014).doc Rev: Page 1 of 6 Said electric lines and supporting structures from time to time may be reconstructed or relocated on said Easement Area with changed dimensions and to operate at different voltages. The grant herein contained shall also include the right of NSP to permit the attachment of wires of others to the structures supporting said lines. Grantor reserves the right to dedicate and have or permit to be improved, maintained, and used for the purposes of streets, curbs and gutters, sewers, water and underground utilities (hereinafter called "improvements "), the portion of said Easement Area not occupied by the structures supporting Northern States Power Company's electric system, provided that said improvements do not in the opinion of NSP impair the structural or electrical integrity of or ability to maintain said electric system or materially alter the existing ground elevations; and provided further that all such improvements shall not result in a ground or other clearance of less than the minimum requirements specified by the National Electrical Safety Code. Grantor, its agents or assigns must submit plans of improvements or other installations within the Easement Area for review, compliance and written approval by NSP prior to installation of the improvements. Grantor also reserves the right to cultivate, use and occupy said Easement Area, in a manner that is not inconsistent with NSP's rights granted herein. NSP shall pay for all damages to landscaping, roads and driveways, fences, livestock, crops, fields and other property caused by the construction or maintenance of said lines. Claims on account of such damages may be referred to NSP's nearest office. Grantor covenants with NSP, its successors and assigns, that Grantor is the owner of the above described premises and has the right to sell and convey an easement in the manner and form herein. Grantor agrees to execute and deliver to NSP, at NSP's cost without additional compensation, any additional documents needed to correct the legal description of the Easement Area described herein, so that it describes the Easement Area within the Premises that was originally intended to be granted herein and which at a minimum provides conductor clearance meeting the requirements of the National Electrical Safety Code. It is mutually understood and agreed that this instrument covers all the agreements and stipulations between the parties and that no representation or statements, verbal or written, have been made modifying, adding to or changing the terms hereof. This instrument is exempt from the Minnesota Deed Tax. S: \General - Offices -GO- Trans\ SLR - Project- Warehouse\Electric \Transmission \5500 -5599 \5516 \5516 Scott Cty -MN River 115kV Reterminate at Esm't WO11968133\Easement Descriptions \Chanhassen Easement (2014).doc Rev: Page 2 of 6 IN WITNESS WHEREOF, the undersigned has caused this instrument to be duly executed as of the day of , 20 CITY OF CHANHASSEN Denny Laufenburger, Mayor Todd Gerhardt, City Manager STATE OF MINNESOTA ) )SS. COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 2004, by Denny Laufenburger and Todd Gerhardt, respectively, the Mayor and City Manager, of the City of Chanhassen, a municipal corporation, under the laws of the State of Minnesota, on behalf of the corporation Notary Public This Instrument was drafted by: BES Northern States Power Company d/b /a Xcel Energy 414 Nicollet Mall, MP 7 Minneapolis, MN 55401 S: \General - Offices -GO- Trans\ SLR - Project - Warehouse\ Electric \Transmission\5500 -5599 \5516 \5516 Scott Cty -MN River 115kV Reterminate at Esm't W011968133\Easement Descriptions \Chanhassen Easement (2014).doc Rev: Page 3 of 6 NORTHERN STATES POWER MINNESOTA EXHIBIT A SHEET 1 OF 2 SHEETS Certificate of Survey Location: City of Chanhassen, Carver County, Minnesota Grantor: City of Chanhassen See sheet 2 of 2 for descriptions. v�ii.vi C Z W M W 20.31 Q W O W — �; �U 0: � W (1Z2 to U)Um N Scale: 1"=120' JOM- P.O.T. `I DESCRIBED F # LINE 65.20 \\� N12 °18'05,E ' I/1 ' I 1— I A A I! I A ^^ r- A I mil it \I VI i/'\.: I ^inl^`. ' I o0 �t VJl1 Vi._ Lj r M r ' co Z f U_ DESCRIBED ' LINE I ' I W I�0O INo II`\'0 ' I Z J S'LY LINE OUTLOT A CHANHASSEN F ■ _ BUSINESS CENTER 17.53 - ' --F- P.O.B. S88 26'24-E DESCRIBED LINE HEREBY CERTIFY THAT THIS SURVEY, PLAN, OR REPORT WAS PREPARED BY ME OR UNDER MY DIRECT SUPERVISION AND THAT I AM A DULY LICENSED LAND SURVEYOR UNDER THE W O THFjr OF MINNESOTA. LINE: 5516 PARCEL: CH AKIN ASSEN PETER D. GITZEN LIC. NO. 44901 SEC. 15, 1.116N., R.23W., 5TH P.M. CO.: CARVER DATE e /b/ is S: \General - Offices -GO- Trans\ SLR - Project - Warehouse\ Electric \Transmission\5500 -5599 \5516 \5516 Scott Cty -MN River 115kV Reterminate at Esm't W011968133\Easement Descriptions \Chanhassen Easement (2014).doc Rev: Page 4 of 6 S: \General- Offices -GO -Trans\ SLR - Project - Warehouse\ Electric\ Transmission \5500 - 5599\5516\5516 Scott Cry -MN River 115kV Reterminate at Esm't WO11968133\Easement Descriptions \Chanhassen Easement (2014).doc Rev: Page 5 of 6 NORTHERN STATES POWER MINNESOTA EXHIBIT A SHEET 2 OF 2 SHEETS Certificate of Survey Location: City of Chanhassen, Carver County, Minnesota Grantor: City of Chanhassen "Premises ": Outlot A, Chanhassen Business Center, according to the plat thereof on file or of record in the office of the Register of Titles, Carver County, Minnesota. "Easement Area ": An easement over, under and across that part of the herein before described "Premises" lying westerly of the following described line: Commencing at the southwest corner of Outlot A, Chanhassen Business Center; thence South 88 degrees 26 minutes 24 seconds East 17.53 feet along the south line of said Outlot A, Chanhassen Business Center to the point of beginning of the line to be described; thence North 00 degrees 11 minutes 05 seconds East 228.92 feet; thence North 01 degrees 09 minutes 14 seconds West 397.38 feet; thence North 12 degrees 18 minutes 05 seconds East 65.20 feet to the northerly line of said Outlot A, Chanhassen Business Center and said line there terminating. Containing 0,29 acres, more or less. LINE: 5516 PARCEL:CHANHASSEN SEC. 15, T.116N., R.23W., 5TH P.M. CO.: CARVER Reterminate at Esm't W011968133 \Easement Descriptions \Chanhassen Easement (2014).doc Rev: Page 6 of 6 µ Xcel Energy® RESPONSIBLE BY NATURE® 414 NICOLLET MALL, MP -76, MINNEAPOLIS, MN 55401 612 - 330 -5925; brian .e.sullivan(cDxcelenergy.com Easement Exhibit for LINE 5516 Section 15 & 22, T.1 16N., R.23W. Carver County, MN CHANHASSEN HIGH SCHOOL INDEPENDENT SCHOOL DISTRICT 112 11 PEAVEY ROAD CHASKA, MN 55316 -2321 NORTHERN STATES POWER MINNESOTA EXHIBIT A SHEET 1 OF 2 SHEETS Certificate of Survey Location: City of Chanhassen, Carver County, Minnesota Grantor: City of Chanhassen See sheet 2 of 2 for descriptions. VA N Scale: 1"=120' / 25,3 — P.O.T. �G "p I \I DESCRIBED � h-I, LINE O P CJ 15.71 - 65-20 N12- 18'oSite r Ct QP � ^In1r- ^^ lao Lev �ll vL_ IM / IM r vL -1 V I L_1 \ O I Z Z wI�� DESCRIBED �I I rl r.T 13±', I I LINE co vvlL.vl C`, ,/�1 Irl Ilr A VIL.VI fl IN 03O cI�Z I/ ASSENLOT A CHNHA 1 BUSINESS CENTER 17.53 P.O.B. S88 °26'24 "E NERIBED L I HEREBY CERTIFY THAT THIS SURVEY, PLAN, OR REPORT WAS PREPARED BY ME OR UNDER MY DIRECT SUPERVISION AND THAT I AM A DULY LICENSED LAND SURVEYOR UNDER THEGTH T TE OF MINNESOTA. LINE: 5516 PETER D. GITZEN U LIC. NO. 44901 PARCEL:CHANHASSEN SEC. 15, T.1 16N., R.23W., 5TH P.M. I CO.: CARVER DATE NORTHERN STATES POWER / MINNESOTA I EXHIBT A SHEET 2 OF 2 SHEETS Certificate of Survey Location: City of Chanhassen, Carver County, Minnesota Grantor: City of Chanhassen "Premises ": Outlot A, Chanhassen Business Center, according to the plat thereof on file or of record in the office of the Register of Titles, Carver County, Minnesota. "Easement Area ": An easement over, under and across that part of the herein before described "Premises" lying westerly of the following described line: Commencing at the southwest corner of Outlot A, Chanhassen Business Center; thence South 88 degrees 26 minutes 24 seconds East 17.53 feet along the south line of said Outlot A, Chanhassen Business Center to the point of beginning of the line to be described; thence North 00 degrees 11 minutes 05 seconds East 228.92 feet; thence North 01 degrees 09 minutes 14 seconds West 397.38 feet; thence North 12 degrees 18 minutes 05 seconds East 65.20 feet to the northerly line of said Outlot A, Chanhassen Business Center and said line there terminating. Containing 0.29 acres, more or less. LINE: 5516 PARCEL:CHANHASSEN SEC. 15, T.116N., R.23W., 5TH P.M. CO.: CARVER Fauske, Alyson From: Sullivan, Brian E [ Brian .E.Sullivan @xcelenergy.com] Sent: Monday, July 06, 2015 5:14 PM To: Fauske, Alyson Subject: RE: Expanded Power Line Easement for New Poles Hello Alyson, It is technically feasible to combine the two 115kV lines, but that would increase the scope of the project and add dramatically to the costs. The three lines are part of the plan to increase the reliability of the system in an environmentally and cost efficient manner. Combining the two 115kV lines would require tearing out the existing equipment and rebuilding the substations in Eden Prairie and Bluff Creek. The 69kV line provides electric service to the communities that are located to the south and east of Lake Minnetonka. Eliminating this line would required new transmission lines to be built in a new corridor. The benefit of overhead lines include safety, ease of maintenance and costs. With buried lines, an outage or maintenance activities would require brining in excavating equipment that would disturb the wetlands. It is a much slower process to uncover buried lines, potentially delaying the restoration of power by days or weeks. Installation and operation costs for underground lines run 7 to 10 times more than the cost of building overhead. Additional costs for burying the line would be passed on to the electric customer through rate increases. Alternative scenarios for the proposed lines have been vetted by the Public Utilities Commission. The Public Utilities Commission granted Xcel Energy a permit to construct the proposed transmission lines in part because it utilizes an existing utility line corridor and minimizes the installation and maintenance costs of the electric system. I hope that answers your questions. Brian Sullivan Xcel Energy P: 612.330.5925 C: 612.366.0234 From: Fauske, Alyson [ mailto :AFauske @ci.chanhassen.mn.us] Sent: Thursday, July 02, 2015 4:16 PM To: Sullivan, Brian E Subject: RE: Expanded Power Line Easement for New Poles Hi Brian, Is it technically feasible to have one, large capacity line in lieu of two, 115 kV and one 69 kV line? Or are the three lines part of the system redundancy that Xcel is seeking to reduce outages? What is the benefit of having the lines overhead instead of underground? Safety? Ease of maintenance? Cost benefit? Thanks, Alyson From: Sullivan, Brian E [mailto: Brian .E.SullivanCalxceleneray.com] Sent: Tuesday, June 30, 2015 5:04 PM To: Fauske, Alyson Subject: RE: Expanded Power Line Easement for New Poles Alyson, The proposed power line is a 115 kV transmission power line permitted and approved by the Public Utilities Commission as an overhead transmission line. The project is a continuation and completion of the regional upgrade project that is called the South West Twin Cities (SWTC) Phase I group of projects. This project is required to address the thermal, and voltage problems on the 115kV and 69kV systems between Westgate Substation (WSG) in Eden Prairie, Bluff Creek Substation (BLC) in Chanhassen and Scott County Substations (SCO) in Shakopee. The project will improve the load serving capability of the system and significantly improve the operational flexibility to withstand outages. Currently there are two lines that are located on the existing set of poles located east of the Chanhassen High School. One line is a 115kV line running from the Westgate Substation and the other is a 69kV line from the Excelsior Substation. This project provides for the installation of one new 115kV line that along with an existing 115kV line will connect the Westgate Substation to the Scott County and Minnesota River Substations, The new 115kV line will be located on the existing power poles and the existing 69kV line will be transferred to the new set of power poles. There will be approximately 9 new poles added as part of the project. The new line parallels the existing line to the point where it ties into the Bluff Creek Substation. Where possible the new power poles are placed in close proximity to the existing poles. When determining the best alignment of the new line, environmental resources were taken into account. A stream and wetland complex are located in the project area. By installing an overhead line west of the existing power line minimizes impacts. Engineering considerations include avoiding two high pressure gas lines, and sewer and water main. The proposed alignment took these consideration into account along with system reliability and longterm maintenance needs. Attached for your use are several exhibits that show where the power line will be located and our easement document for review. Please let me know if there is anything else you need. We can schedule a meeting with one of our engineers to go over the project in greater detail. Brian Sullivan Xcel Energy P: 612.330.5925 C: 612.366.0234 From: Fauske, Alyson [ mailto :AFauskeCcbci.chanhassen.mn.us] Sent: Monday, June 15, 2015 10:05 AM To: Sullivan, Brian E Subject: FW: Expanded Power Line Easement for New Poles Hello Brian, I will be working with you to get Chanhassen council approval of the easement. Your message and plans have been forwarded to Chanhassen's Community Development Dept to ensure that all necessary reviews are done. The earliest you could get council approval is at the July 27 meeting. Please let me know if you'd like to be on this meeting or a later one (council meetings are the 2nd and 4tb Mondays of the month). In addition to the easement document and supporting exhibits, I would like to include some additional information in the council memo. Please provide information as follows: 1) Is this a distribution or transmission line? 2) Explanation of why the additional line is needed. Can't the existing line in the corridor be replaced? 3) A brief explanation of why the new line is overhead instead of underground. 4) The number of new poles that will be installed. If you have any questions you can contact me. Thank you, Alyson Fauske, PE Assistant City Engineer City of Chanhassen 7700 Market Blvd PO Box 147 Chanhassen MN 55317 ph: 952.227.1164 From: Oehme, Paul Sent: Tuesday, June 09, 2015 3:31 PM To: Fauske, Alyson Subject: FW: Expanded Power Line Easement for New Poles Do you or Stephanie what to start the review on this? Looks like there may be some wetland impacts. SL can work on the permit but we should work on review of the easement. Thanks, Q City of Chanhassen PAUL OEHME, P.E. Public Works Director /City Engineer P.O.Box 147 7700 Market Blvd. Chanhassen, MN 55317 direct(952)227 -1169 From: Hoffman, Todd Sent: Tuesday, June 9, 2015 3:02 PM To: Aanenson, Kate; Petersen, Chelsea; Oehme, Paul; Johnson, Don Subject: FW: Expanded Power Line Easement for New Poles Who should review /process this request from Xcel Energy for additional power line easement? From: Sullivan, Brian E [mailto: Brian .E.Sullivan @xcelenergy.com] Sent: Tuesday, June 09, 2015 2:55 PM To: Hoffman, Todd Subject: RE: Expanded Power Line Easement for New Poles Todd, Thanks for your quick response. Attached are a couple of exhibits showing the location of existing power lines and the proposed power line. Two additional exhibits show the location of the easements on an aerial photograph and a survey of the easement across City property. I will begin drafting an easement document in the next few days and get a copy of that off to you as well. If a detailed explanation of why we choose the proposed alignment, I can bring down a transmission engineer to go through their design process. I have a voice mail in to the school district Thanks Brian Sullivan Xcel Energy P: 612.330.5925 C: 612.366.0234