Consider Conveying Easements to Great River Energy on Outlot E, Business Park 95 2nd Addition (Identified as Parcel #3) and on Portions of a Parcel on or near Rivers Bend Park along Bunker Lake Boulevard (Identified as Parcel #28); Case of Great River Energy (Portions May Be Closed to the Public)

On August 24, 2012, the Public Utilities Commission has granted approval to Great River Energy for a transmission line upgrade project that impacts portions of Ramsey. Copies of route maps and the environmental review document are attached for review. According to Great River Energy, the project is necessary to ensure consistent, reliable service and capacity of the electrical grid. Generally speaking, the project connects an electrical substation in Coon Rapids (Crooked Lake Substation) to Anoka (Enterprise Park Substation) with a 115 kV transmission line. The policy question before the City Council is not to comment on the future route, but to consider an offer to purchase an easement for purposes of siting transmission line structures, consistent with approve Route Permit for Great River Energy.

In addition to an upgraded electrical transmission line, there are parcels that the City either owns fee-title to, or has easement rights to that will be impacted by the transmission line project. With that in mind, Great River Energy is requesting that the City convey easements on two (2) parcels. Parcel #3 is legally described as Outlot E, Business Park 95 2nd Addition, located on the eastern boundary of Ramsey adjacent to the city of Anoka. This parcel is located adjacent to the Enterprise Park Substation, located adjacent to the city of Anoka water tower. Parcel #28 is legally described as a portion of Government Lot 3, Township 32, Section 25, Range 25 and is commonly known as Rivers Bend Park.

Great River Energy is offering to purchase a utility easement on Parcel #3 (Outlot E) for $10,454.00. Great River Energy is offering to purchase a utility easement on Parcel #28 (Rivers Bend Park) for $38,551.

No notification is required.

The City has participated and commented during the public input process on a number of occasions. The City worked with Great River Energy on a number of occasions to explore alternative routes. The attached environmental review document provides specific findings on the selection of the preferred route. As it relates to the route through Ramsey, the City Council originally requested that Great River Energy consider the Highway 10 corridor as the preferred alignment. However, according to Great River Energy, due to spacing, infrastructure conflicts, and right of way management issues, Great River Energy did not select this as an acceptable route. The preferred route was then approved by the Public Utilities Commission.

In addition, the cities of Ramsey and Anoka spend a considerable amount of time discussing how the transmission line will cross the Rum River. Ramsey desired an alignment that protected the active use area of Rivers Bend Park, south of Bunker Lake Boulevard, that also protected a stand of mature trees. Anoka desired a location that would not negatively impact future development on the north side of Bunker Lake Boulevard. The final alignment will be slightly revised from shown on the attached maps. The transmission line is proposed to cross the Rum River on the south side of Bunker Lake Boulevard, then immediately cross Bunker Lake Boulevard to the north to avoid the active portion of Rivers Bend Park.  Staff recommends that the location of Option C in the attached 116 KV (Rum River Crossing) map is acceptable. Option B would be the preferred option that balances the goals of both cities; however existing regulations prevent the crossing of the bridge deck across the Rum River as indicated in Option B. The larger 'A-Frame' structures will be necessary for this connection.

Staff recommends that the location of the easement on Parcel 3 is acceptable, provided that the planned infrastructure does not preclude future connections.

Alternatives

Alternative #1 - Approve request as presented. This alternative will secure the necessary legal documentation for the project to proceed.

Alternative #2 - Submit counter offer to proposal as presented. If the City Council desires to submit a counter proposal, Staff recommends that the City Council discuss the request in closed session. The policy question would be limited to the amount offered to secure the easements.

Alternative #3 - Reject request as presented. Staff does not recommend this alternative. As the route has been approved by the Public Utilities Commission, it is anticipated that Great River Energy could utilize condemnation to secure the necessary easement if a friendly acquisition is not achieved.

Staff recommends approval of the location of the easements, subject to ensuring that the location of improvements does not prohibit future connections and improvements. It does not appear that the locations would prohibit future connections. If the City Council would like to discuss a counter-offer, Staff recommends discussing the request in closed session to discuss the offer price for the two (2) easements. As a reminder, the policy question is limited to acquisition price and not approving/rejecting the approved route.

Preparation of the request is being handled as part of regular Staff duties.

Motion to adopt Resolution #13-06-114 granting easements to Great River Energy.