DEPARTMENT: Transportation
FILE TYPE: Consent Action
TITLE
title
Authorization To Execute Reimbursement And Relocation Agreement With Northern States Power Company And Authorization To Execute Encroachment Agreement With Enterprise Energy LLC And Marathon Pipe Line LLC Along County State Aid Highway 32 In City Of Inver Grove Heights, County Project 32-65
end
PURPOSE/ACTION REQUESTED
Authorize the execution of a reimbursement and relocation agreement with Northern States Power Company dba Xcel Energy (Xcel) for relocation of overhead power utilities and an encroachment agreement with Enterprise Energy LLC (Enterprise) and Marathon Pipe Line LLC (Marathon) for underground Petroleum pipelines along County State Aid Highway (CSAH) 32 in the city of Inver Grove Heights for County Projects (CP) 32-65.
SUMMARY
To provide a safe and efficient transportation system, the City of Inver Grove Heights, in cooperation with Dakota County, is proceeding with CP 32-65. The project will reconstruct 117th Street East from CSAH 71 (Rich Valley Boulevard) to the Trunk Highway (TH) 52/117th Street Interchange.
Encroachment agreements are required for work over Enterprise Energy’s four-inch petroleum pipeline and Marathon’s eight-inch petroleum pipeline that are in their own easements. Development of the reconstruction project has addressed constraints, and the potential impact on the pipelines has been minimized. Relocation of these pipelines is not required. The design maintains adequate clearance of the pipeline that runs parallel to the roadway. The project is required to cross over the pipelines at one location and requires specific protective measures and supervision during construction activities.
The basic terms of the proposed encroachment agreements include:
• Approve the encroachment of improvements on CP 32-65 within the existing utility easement.
• Approve the construction details proposed by the County and City, such as cross-section depth/surfacing.
• Describe the insurance coverage the County shall procure or cause its contractors to procure during construction.
• Indemnify and hold harmless Utility Companies and other listed parties against any and all claims/liabilities arising from the project. This is a contractual obligation that is not subject to the tort liability limitation.
Xcel has transmission lines and poles that require relocation as part of the project and require an agreement. Xcel estimates the cost of relocating its facilities, including engineering, materials, and construction, is $1,206,000. The Xcel relocation agreement provides for payment of contractual obligations before commencing the work.
The three utility companies have the right of occupancy in their existing location because they hold an easement interest, the taking of which is compensable in eminent domain. Utilities are allowed to co-locate within public right-of-way pursuant to Minn. Stat. § 222.37. This requires a permit, which is processed under the County’s right-of-way Ordinance No. 126. Typically, these permits are subject to the condition that utilities be required to move at their own cost if a future road project necessitates it. However, because the County recognizes that Xcel, Enterprise, and Marathon are located in their existing easement, Dakota County must forego the permit condition that requires utilities to relocate at their own cost for County Projects, and instead, the County will pay to relocate the utility structure on this parcel if needed in the future. This allows the utilities to relocate their infrastructure if needed inside the newly acquired right of way easement without having to buy additional rights from the property owner at County cost.
RECOMMENDATION
recommendation
Staff recommends execution of agreements with Xcel for the transmission line relocation along CSAH 32 associated with encroachment of the project on the transmission and Enterprise and Marathon for encroachment of the project on the petroleum pipeline easements to proceed with CP 32-65.
Xcel estimates the cost of relocating its facilities, including engineering, materials, and construction, is $1,206,000. Actual costs will be determined at the completion of construction. Xcel Energy and Dakota County have designed the construction and relocation projects to minimize relocations associated costs. To limit the potential for relocation cost increases, there has been early and continuous engineering coordination with Xcel.
end
EXPLANATION OF FISCAL/FTE IMPACTS
The 2025 Transportation Capital Improvement Program includes a total budget of $23,460,000 for CP 32-65. Sufficient funds are available for the agreement with Xcel.
☐ None ☒ Current budget ☐ Other
☐ Amendment Requested ☐ New FTE(s) requested
RESOLUTION
body
WHEREAS, to provide a safe and efficient transportation system, Dakota County and the City of Inver Grove Heights are proceeding with County Project (CP) 32-65; and
WHEREAS, the project will reconstruct 117th Street East from County State Aid Highway (CSAH) 71 (Rich Valley Boulevard) to the Trunk Highway (TH) 52/117th Street Interchange; and
WHEREAS, the purpose of the project is to meet 10-ton design standards, enhance transportation system efficiency and mobility, reduce access points, improve pavement conditions, and facilitate the phased development of an essential east-west transportation corridor within the region; and
WHEREAS, the 117th Street corridor is a part of the more extensive CSAH 32 network in Dakota County, which connects Interstate 35W in Burnsville to TH 52 in Inver Grove Heights; and
WHEREAS, the 117th Street and CSAH 71 corridors are considered Tier 1 regional truck corridors; and
WHEREAS, the design includes a two-lane, median-divided roadway for a one-mile segment of 117th Street between Rich Valley Boulevard and the Flint Hills Resources Refinery access, just west of the TH 52/117th Street Interchange; and
WHEREAS, the County is the lead agency for the construction of the project; and
WHEREAS, Northern States Power Company dba Xcel Energy (Xcel) transmission lines and poles are located within its own easement; and
WHEREAS, Enterprise Energy LLC (Enterprise) and Marathon Pipe Line LLC (Marathon) underground petroleum pipelines are located within their own easements; and
WHEREAS, the three utility companies have the right of occupancy in their existing location because they hold an easement interest, the taking of which is compensable in eminent domain; and
WHEREAS, in order to proceed with project development, Xcel is requesting that Dakota County execute a scoping agreement to reimburse Xcel in an amount not to exceed $1,206,000 for actual costs incurred for the cost of the preliminary engineering and design; and
WHEREAS, utilities are allowed to co-locate within public right-of-way pursuant to Minn. Stat. 222.37, which requires a permit, which is processed under the County’s right-of-way Ordinance No. 126; and
WHEREAS, because the County recognizes that Xcel, Enterprise, and Marathon are located in their existing easement, Dakota County must forego the permit condition that requires utilities to relocate at their own cost for County Projects, and instead, the County will pay to relocate the utility structure on this parcel if needed in the future; and
WHEREAS, to proceed with the project, Xcel requested that Dakota County enter into an agreement for reimbursement and relocation of the transmission line that is in their own easements; and
WHEREAS, encroachment agreements are required for work over Enterprise Energy’s four-inch petroleum pipeline and Marathon’s eight-inch petroleum pipeline that are in their own easements; and
WHEREAS, the Xcel relocation agreement provides for payment of contractual obligations before commencing the work; and
WHEREAS, payments must be made to displaced utility facilities at the time they are needed to relocate; and
WHEREAS, Xcel estimates that the cost of relocating its transmission line facilities, including engineering, materials, and construction, is $1,206,000; and
WHEREAS, the cost to the County will be for actual costs incurred by Xcel in carrying out the relocation of its facilities; and
WHEREAS, in order to proceed with construction, Dakota County must enter into an agreement with Xcel to identify costs and responsibilities associated with the relocation of transmission lines and poles; and
WHEREAS, staff recommends execution of a relocation agreement with Xcel for the transmission line relocation associated with the encroachment of the project on the transmission line easement to proceed with CP 32-65.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners hereby authorizes the Physical Development Director to execute an agreement with Northern States Power Company dba Xcel Energy for the design, materials, easement acquisition, and construction of the transmission line relocation in the amount of the actual cost, estimated at $1,206,000, subject to approval by the County Attorney’s Office as to form; and
BE IT FURTHER RESOLVED, That the Dakota County Board of Commissioners hereby authorizes the Physical Development Director to execute an agreement with Enterprise Energy LLC and Marathon Pipe Line LLC for an encroachment agreement to define practices for construction activity within their easement to avoid impacts to the pipelines.
end
PREVIOUS BOARD ACTION
None
ATTACHMENTS
Attachment: Location Map
BOARD GOALS
☒ Thriving People ☐ A Healthy Environment with Quality Natural Resources
☐ A Successful Place for Business and Jobs ☐ Excellence in Public Service
CONTACT
Department Head: Erin Laberee
Author: John sass