HomeMy WebLinkAbout4.C.1 Overhead Power Relocation with Public Alley west of Scott Street an north of 1st Street Consent Business 4. C. 1.
SHAKOPEE
TO: Mayor and City Council
FROM: Bruce Loney, Public Works Director
DATE: 04/21/2015
SUBJECT: Overhead Power Relocation within Public Alley west of Scott Street and
north of 1st Street (E)
Action Sought
Approve a motion determining that the overhead power line located within a public
alley west of Scott Street and north of 1 st Avenue be relocated underground.
Background
With the Rahr Malting project called the Brewers Supply Group Warehouse and
Bagging facility, the overhead line within the public alley north of 1st Avenue and
west of Scott Street needs to be relocated. City code allows the Council the option
to determine the location if overhead lines remain overhead or be placed
underground.
The power lines to the west of the alley on Rahr's property are being relocated
underground as requested by Rahr. Staff would recommend that the overhead lines
within the public alley be placed underground.
Attached is a memo from Joe Adams, on the relocation costs and a drawing
showing the area of public alley improvements. The cost of undergrounding would
be paid out of the SPU's Relocation Underground Charge Fund.
Recommendation
Staff recommends undergrounding the existing overhead power/utility lines within
the public alley west of Scott Street and north of 1st Avenue as the overhead lines to
the west are being underground through the Rahr property.
Budget Impact
None.
Relationship to Vision
This supports Goal D: Maintain, improve and create strong partnerships with other
public and private sector entities.
Requested Action
Approve a motion determining that the overhead power line located within a public
alley west of Scott Street and north of 1 st Avenue be relocated underground.
Attachments: SPU Memo-Joe Adams
Location Map
SHAKOPEE PUBLIC UTILITIES
MEMORANDUM
TO: John Crooks,Utilities Manager
FROM: Joseph D. Adams,Planning& Engineering Director
SUBJECT: Rahr Malting Projects
DATE: April 3, 2015
ISSUE
Rahr Malting is proposing an expansion of their Shakopee footprint with multiple building projects and
there are associated electric and water service issues that should be discussed with the Commission for
direction.
BACKGROUND
Attached is a plan view drawing that illustrates Rahr's plans for four new building projects, each with
its own unique circumstances relating to SPU's electric and water facilities.
1. The first building is a new Malt House to be constructed on 3rd Avenue. The Malt House
location is within Xcel Energy's electric service territory as indentified on the state of
Minnesota mapping system. Rahr and their building contractor have requested SPU
permanently relocate several spans of three phase overhead power lines to facilitate the crane
operations to erect the Malt House structure. We have provided Rahr with an estimate of the
cost to do so, $22,500, and they have agreed to pay that cost.
Permanent electric service to the Malt House will be from Rahr's internal medium voltage
distribution system served by the Koda Energy plant backed up by Xcel Energy. Rahr's
contractor has requested that SPU provide temporary construction electric service to the project
site, since Xcel Energy has no distribution facilities in the area. Rahr contacted Xcel Energy
and they have agreed to allow the temporary electric service with the condition that SPU's
facilities be removed upon completion of the project. Rahr's contractor has agreed to pay the
$8,300 estimated cost associated with installing and removin g temporary the tem ora facilities.
Water service to the Malt House will be from Rahr's internal water main distribution system
downstream of the SPU water meter to their complex.
2. The second building is the Brewers Supply Group Warehouse and Bagging facility referred to
as the BSG Warehouse. The BSG building will be located north of 1st Avenue between Pierce
and Apgar Streets with access driveways off of 1st Avenue at Pierce Street and the alley
running west from Scott Street.
The City has determined that the alley will be widened to accommodate the truck traffic
generated by the new facility. This will impact the existing overhead electric power line within
the alley and it will have to be relocated. In fact, the building footprint will overlap the now
vacated alley in the blocks between Pierce and Apgar Streets and also require the relocation of
another 2 %blocks of the existing overhead electric lines.
We have estimated the cost to relocate this existing overhead power line around the BSG
building, which is feeder circuit#9 originating from the Shakopee Substation to the west. The
estimated cost is$96,500 to place the lines underground around the new facility as requested by
Rahr.
Rahr has proposed a public water main extension to provide water service for domestic and fire
protection purposes around the new building with connections at Pierce and Shumway Streets
to the 1st Avenue water main. While the pipe would wrap around the building,since the 1st
Avenue water main is a dead end west of Scott Street this would not provide a true looped
system. To provide true looping the water main should be extended east to Scott Street within
the widened public alley and south on Scott Street to the existing stub at 1st Avenue rather than
back west to the stub at Shumway Street.
3. The third building is the Pilot Brewing and Tech Center to be located at the southwest corner
of 1st Avenue and Apgar Street, formerly the site of CH Carpenter. With the CR 69
reconstruction project of 1st Avenue we installed conduit under 1st Avenue to facilitate a new
underground primary loop to serve a new pad mount three phase transformer anticipated for
this site's redevelopment.
Rahr asked us to investigate the possibility of removing the existing power pole, transformer
bank and service wires crossing Apgar Street that provide service to Mike's Auto,the Pawn
Shop and the UPRR railroad crossing signal to improve their new building's aesthetics. That
cost is estimated to be$20,000.
Water service to this site was stubbed out of l'Avenue when the water main was replaced with
the CR 69 project.
4. The fourth building is a new Maintenance Warehouse to be located along 2nd Avenue north of
the main UPRR tracks between Pierce and Apgar Streets.
We propose to install a new pad mount transformer for the Maintenance Warehouse fed from
the same three phase underground cable loop to be installed for the Pilot Brewing building by
extending the cable loop under Rahr's rail siding lying in between. There is an existing single
phase secondary voltage service line to the building site that was providing service to two
structures that have been removed. These facilities are inadequate to serve the new load.
This is an area that has not had water service previously, since there is not a water main in these
two blocks along 2"d Avenue. After meeting with Rahr's design team and the City's fire
inspector the conclusion for the best option is for Rahr to install a public water main from the
existing fire hydrant located at 1St Avenue and Pierce Street to the east and south under Rahr's
rail siding in a casing pipe and then further east and south to 2 11d Avenue and Apgar Street then
under the UPRR main line track to complete a looped water main. Rahr is asking to complete
the construction in two phases with an Agreement to Complete the Water Main Distribution
System aka"Looping Agreement." Rahr is likely also going to seek Commission assistance
with the future crossing under the main line track at 2"d Avenue and Apgar Street.
DISCUSSION
Attached is a breakdown of the associated electric facilities costs, including the various relocations and
new service facilities that was provided to Rahr.
I have invited Mr. Jesse Theis of Rahr Malting to attend the Commission's April 3`d meeting to present
a brief overview of their expansion plans for the Commission's benefit. Mr. Theis would like to
request the Commission's consideration to possibly assist with Rahr's expansion by either relaxing
some of the standard requirements or participating in some of the costs based on a greater public
benefit from some of the infrastructure improvements.
For example,the water main distribution system west of Scott Street consists of a single 8 inch water
main installed with the CR 69 reconstruction project that replaced the pre existing 6 inch water main.
This water main presently extends three blocks west to Pierce Street then"loops"back on itself with a
6 inch water main running a half block north and then several blocks west and back south again to 1St
Avenue. Both the BSG and the Maintenance Warehouse are opportunities to bring true looping to this
area of the system if proper connections are made with Rahr's projects. This will benefit not only
Rahr, but also other SPU water customers that are connected to the now dead end 1st Avenue water
main.
The future water main crossing under the UPRR main line tracks may be considered most similar to
the MN Corngrowers Association warehouse project along Minnesota Street where the Commission
previously provided assistance to facilitate the main line track rail crossing of a public water main.
The relocation of feeder circuit#9 around the BSG site and further east in the widened public alley is
an opportunity to install a duct bank similar to the one installed with the CR 69 project. The new duct
bank would enable SPU to provide expanded service to downtown Shakopee should re development
efforts take off to the point where additional capacity is needed. This would tie in with plans to be able
to expand the new Shakopee Substation with a second transformer which would require a path for the
additional feeder circuits. Staff is proposing that the duct bank installation be coordinated with Rahr's
site infrastructure improvements with SPU providing the material and Rahr's contractor doing the
installation for SPU. The duct bank installation cost could possibly be offset by some of the
underground electric charges for the new service and the relocation cost of feeder circuit#9 around the
BSG building.
The cost to relocate feeder circuit#9's existing power poles and wires within the public alley west of
Scott Street is estimated to be $62,600 if placed underground and$22,500 if relocated overhead,
assuming space is made available. These cost estimates should be forwarded to the City Council for a
determination under their Right of Way Management Ordinance whether to order the relocation
underground.
As the Commission is aware, staff has been in discussions with the substation site's adjoining property
owners, which are Xcel and Rahr, with the goal of securing land rights to enable a potential future
substation expansion. Rahr has been particularly cooperative and patient as we have moved through
the process with Xcel to replace the existing substation. Rahr has stated their desire is to work with the
Commission on the desired land rights and is a willing seller and is prepared to negotiate a purchase
agreement that is fair to both parties.
REQUESTED ACTION
Staff requests the Commission review and discuss the relative electric and water issues relating to Rahr
Malting's proposed expansion projects and provide direction on how to proceed with the various fees,
charges and agreements.
Staff also requests that the Commission accept the cost estimates to relocate the portion of feeder
circuit#9 that lies within the public alley west of Scott Street, $62,600 for underground and $22,500
for overhead, and forward the estimates to the City Council for determination under their Right of Way
Management ordinance whether to order the relocation underground.
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