City of South St. Paul

Dakota County, Minnesota

RESOLUTION NO.2001-152

RESOLUTION RELATING TO THE APPLICATION BY

NORTHERN STATES POWER COMPANY d/b/a XCEL ENERGY

FOR A CONDITIONAL USE PERMIT FOR THE UPGRADE OF A

115kV TRANSMISSION LINE.

BE IT RESOLVED. by the City Council of the City of South St. Paul, Minnesota, as follows:

SECTION ONE

Recitals

1.01 Northern States Power Company, doing business as Xcel Energy ("NSP") filed an application for a conditional use permit to upgrade its existing 115kV transmission line within the City of South St. Paul by adding a second 115kV circuit and rebuilding the transmission line on monopole structures (the "Application").

1.02 A public hawing on the Application was held before the Planning Commission on June 6, 2001, following published and mailed notice as required by law. On June 13, 2001, the Planning Commission adopted its findings of fact, conclusions and recommendation with respect to the Application ("Planning Commission Recommendation"), which was forwarded to the City Council.

1.03 By resolution adopted June 18, 2001, the City Council extended the time to complete processing the Application to August 7, 2001, for the reasons stated in the resolution. A certified copy of the resolution was sent by certified mail to NSP on June 20, 2001, and a receipt therefore was signed by a representative of NSP.

1.04 The following documents and materials were provided to the Mayor and each Council member and constitute part of the record on the Application:

· Application;

· Supplement to Application, including aerial photo of transmission line route, southeast Metro transmission system diagram, structure drawing, H-frame photograph, computer generated monopole in South St. Paul residential area, Van Hoven reroute,

· EQB FIS negative declaration;

· Commonwealth Associates Inc. ('EAI") executive summary report for the Transmission Line Steering Committee;

· City Planner's report and recommendation to the Planning Commission;

· Power Line Task Force May 30,2001, communication to the Planning Commission;

· NSP slides presented to the Planning Commission On June 6, 2001;

· Power Line Task Force slides presented to the Planning Commission on June 6, 2001;

· Minutes of June 6,2001, Planning Commission meeting;

· Power Line Task Force June 13,2001 communication;

· Minutes of June 13, 2001, Planning Commission meeting; and

· Planning Commission resolution 2001-01 adopted June 13, 2001.

1.05 At its regular meeting on July 23, 2001, the City Council considered and discussed the Application and the record and heard Pat Cline, Dave Callahan, arid Harold Bagley, Applicant representatives, who presented facts and arguments in favor of the application and Roger Conant, Power Line Task Force, Joseph Turene, Sophie Voigt, and Edward Chapdelaine who presented facts and arguments in opposition to the Application.

1.06 At a special meeting on July 30, 2001, the City Council considered and discussed the Application, and the record. Based upon a preponderance of the evidence contained in the record related to the Application, and the arguments of proponents and opponents of the Application, the City Council makes the following findings of fact, conclusions and decision.

SECTION TWO

Findings of Fact

2.01 Northern States Power Company, doing business as Xcel Energy ("NSP") filed an application for a conditional use permit to upgrade its existing 115kV transmission line within the City of South St. Paul by adding a second 115kV circuit and rebuilding the transmission line on monopole structures (the "Application").

2.62 A public bearing on the Application was held before the Planning Commission on June 6, 2001, following published and mailed notice as required by law. On June 13, 2001, the Planning Commission adopted its findings of fact, conclusions and recommendation with respect to the Application ("Planning Commission Recommendation").

2.03 By resolution adopted June 18, 2001, the City Council extended the time to complete processing the Application to August 7, 2001, for the reasons stated in the resolution. A certified copy of the resolution was sent by certified mail to NSP on June 20, 2001, and a receipt therefore was signed by a representative of NSP.

2.04 The existing transmission line is located on a 4O-foot wide right-of-way (owned in fee by NSP) for about 3,000 feet within a built-up residential area within the City of South St. Paul. In the rest of the City the right-of-way is 50 feet wide. The right-of-way widths will not be expanded as part of the proposed project.

2.05 The present transmission line was originally constructed in the early 1920's, and modified in later years. Most, if not all, of the houses adjacent to the transmission line were constructed after the transmission line existed and subsequent owners purchased with knowledge of the existence of the line.

2.06 NSP Proposes to construct the existing transmission line and a new 115kV transmission line as a double circuit transmission line, which is required to provide continuous reliable electrical power to customers in the southeast suburban Minneapolis-St. Paul area, including the City of South St. Paul. The project will establish two independent circuits between the Red Rock substation and the Rogers Lake substation, which will prevent loss of electric service in the event of a line failure. CAI concurred in the need for the project. Opponents of the Application questioned the need for the project and its benefit to consumers in the City of South St Paul. However; the Weight of the evidence supports the need for the double circuit line.

2.07 The proposal is to construct the double circuit transmission line on monopoles which will be about 25 feet taller than the existing transmission line structures. The conductors of the existing line are about 25 feet above ground and the nearest are 7 feet from the edge of the 40-foot wide right-of-way. The lowest conductors of the proposed line would be about 25 feet above ground and about 10 feet from the edge of the 40-foot wide right-of-way

2.08 The noise level of the existing line at the edge of the 40-foot wide right-of-way is 20.9 dB(a); it is calculated to be 24.8 dB(a) for the double circuit lines. If the proposed double circuit line was constructed underground there would be no noise.

2.09 Electric and magnetic field strengths (EMF) were measured and calculated for the existing line and the double circuit line on the 40 foot wide right-of-way. The magnetic field for the existing line at the right-of-way edge is 101.3 milligrams (mG); for the double circuit line it will be 25.1 mG. If the double circuit line was constructed underground the magnetic field at the right-of0way edge would be 2.4 mG.

2.10 Opponents expressed concern that the new transmission line will result in devaluing property adjacent to the line and make the property unusable or difficult to sell. The FHA will not finance houses adjacent to transmission lines. NSP stated that FHA has financed house sales adjacent to transmission lines upon receiving advice from NSP that the line was constructed according to all applicable codes and requirements.

2.11 A study by Colliers Towle, Inc. of sale price comparisons among houses adjacent to transmission lines and those not adjacent to transmission lines average. Those adjacent to a line sold on the average for 0.5 percent less and took an average of 5.5 days longer to sell.

2.12 Some of the opponents were concerned about adverse health effects to persons living adjacent to the transmission line that may be caused by the electric and magnetic fields of the transmission line. They are fearful of the levels of these fields even though double circuiting will reduce these levels by about fifty percent.

2.13 NSP, on the other hand, refers to the decision of the Minnesota Environmental Quality Board concerning this project in which it determined that the proposed project does not have the potential for significant environmental effects and issued a negative declaration on the need for an environmental impact statement.

2.14 It appears that the scientific community has not conclusively demonstrated a lack of causal relationship between EMF and adverse health effects and that research about this issue continues. The research to date is inconclusive with regard to the issue of transmission lines and adverse health effects.

2.15 The estimated cost of construction of the double-circuit overhead 115kv transmission line through the residential portion in the City of South St. Paul is $390,000; the estimated cost to underground the same segment is $5,000,000.

2.16 The Proposed construction schedule for the Red Rock to Rogers Lake segment of the project is fall 2001-winter 2002 Red Rock substation construction, winter 2002-spring 2003 Rogers Lake substation line foundations and structures construction

SECTION THREE

Conclusions

3.01 This matter is properly before the City Council pursuant to Subsection 1500.29, Subd. 4, of the South St. Paul City Code of 1992.

3.02 All persons who desired to be heard in favor or in opposition to the Application have been given an opportunity to present evidence and argument.

3.03 There is credible evidence of the need for the project.

3.04 The general characteristics of the residential neighborhood will not change because the configuration of an existing transmission line will only change. The monopoles will be approximately 25 feet higher than the existing H-frame structures and will be the same number. However, the monopoles will be significantly more visible in the local community and will have a greater impact on the landscape than the existing structures. If the proposed double circuit line was constructed underground, the visual impact would be eliminated.

3.05 There will be diminution or impairment of property values and FHA insured loans may not be available because of the presence of the transmission line

3.06 Noise levels will increase by approximately five decibels because of the proposed transmission line. Noise levels will not be a concern if the double circuit line is constructed underground.

3.07 Because of the uncertainty and inconclusiveness of the effects of EMF on health and welfare, the sensible action in the interest of public health, safety and welfare is to reduce exposure to EMF. While overhead construction of the double circuit line will reduce the magnetic field to 25.1 mG at the edge of the 40 foot right-of-way, undergrounding the double circuit line will reduce the magnetic field to a more acceptable level of 2.4 mG at the right-of-way edge.

3.08 An overhead transmission line would be more susceptible to damage from severe weather conditions and thus a greater threat to public safety than an underground transmission line

3.09 The proposed overhead double circuit transmission tine would be detrimental to the health, safety and general welfare of the community and would seriously depreciate surrounding property values because of the cumulative effects of noise, visibility, EMF and susceptibility to adverse weather conditions. These effects would be either eliminated or reduced to an acceptable level if the double circuit line was constructed underground. In such case there would not be a detriment to the health, safety and general welfare of the community nor a serious depreciation of surrounding property values.

3.10 The proposed double circuit line will benefit the southeast metro area as well as the entire NSP system. Costs necessary to protect the public health, safety and general welfare should be a system-wide cost. The excess cost to bury the double circuit line are for the protection of the public health, safety and general welfare and should be borne by the entire NSP system and not by just by the City of South St. Paul or the NSP customers within the City who did not create the circumstances necessitating the construction of the transmission lines underground.

SECTION FOUR

Decision

The City Council grants a conditional use permit to Northern States Power Company d/b/a Xcel Energy to construct a double circuit 115kV electric transmission line composed of the existing circuit and a new circuit, (the "transmission line") subject to the condition that the transmission line be constructed underground; provided, however, that the excess cost of underground construction be paid on a NSP system-wide basis, and if allocated to the City or to its NSP customers by order of the Minnesota Public Utilities Commission ("PUC") or other state agency having jurisdiction, this conditional use permit is denied, shall be null and void, and of no force or effect and the transmission line may not be constructed; provided further that construction of the transmission line may not commence until NSP has agreed to a system-wide allocation of the excess undergrounding cost, or the PUC has denied allocation of the excess cost to the City or its NSP customers, and such action has not been appealed.

The conditional use permit is also subject to the following conditions:

(1) Northern States Power Company d/b/a Xcel Energy will offer free of charge a lawn arid garden easement that is consistent with its utility usage to landowners adjacent to its fee right-of-way strip, that will be appurtenant to their property in perpetuity as long as its terms are complied with.

(2) In the event that the State of Minnesota or the Federal Government establishes standards for electric Or magnetic fields that are applicable to the proposed transmission line, Northern States Power Company d/b/a Xcel Energy shall comply with the standards and shall provide the City with sufficient information to ascertain compliance with the standards

(3) Should Northern States Power Company d/b/a Xcel Energy, after the issuance of this conditional use permit be issued, granted, obtain, consent to or otherwise receive a permit or authorization for the double circuit of the existing 115kV transmission line from the City of Inver Grove Heights, the City of Mendota Heights, the City of Sunfish Lake, or the City of Bloomington on a term or terms more favorable to the city than those contained in this conditional use permit, the City of South St. Paul shall have the right to require Northern States Power Company d/b/a Xcel Energy to agree to a modification of this conditional use permit to incorporate the same or substantially similar more favorable terms, and Northern States Power Company d/b/a Xcel Energy by the acceptance of this conditional use permit agrees to promptly agree to the incorporation of such term(s).

Passed: August 6,2001

Mayor

Approved: August 7, 2001 /s/ Kathleen A. Gaylord