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HomeMy WebLinkAbout6.i. Northern Natural Gas Request for Extension of Conditional Use Permit Resolution 2016-039 EXECUTIVE SUMMARY City Council Meeting Date: February 5, 2018 AGENDA ITEM: Case 16-09-CUP Northern Natural Gas Request for Extension of Conditional Use Permit Resolution 2016-039. AGENDA SECTION: Consent PREPARED BY: Kyle Klatt, Senior Planner AGENDA NO. 6.i. ATTACHMENTS: Request Letter, Resolution 2016-039, Staff Memorandum 5-17-16, Pipeline Easement Map APPROVED BY: LJM RECOMMENDED ACTION: Motion to approve an extension of the Conditional Use Permit issued to Northern Natural Gas to construct a natural gas transmission line greater than ¼ mile in length to December 31, 2018. SUMMARY The City Council is being asked to consider a request from Northern Natural Gas Company (NNG) to extend the time for completion of a new transmission facility greater than ¼ mile in length approved under Resolution 2016-039. NNG submitted an application to the City in April of 2016 for a Conditional Use Permit concerning the installation of a new 20-inch natural gas pipeline parallel to an existing smaller pipeline in the north-central portion of Rosemount. This permit was approved by the City with a condition stating that the permit was valid through the projected completion date of October 2017. For several reasons as documented in the attached letter from NNG, they were not able to start work on the project in 2017, and are therefore requesting an extension from the City to allow work to commence this year. NNG expects all work to be completed by the end of 2018. BACKGROUND The proposed NNG work within Rosemount is part of a larger project to construct a 7.8 mile long, 20 inch diameter pipeline in Dakota County between NNG’s existing Rosemount Junction located near the intersection of Bacardi Avenue and Bonaire Path and its Cedar Station Yard in Eagan. The majority of the proposed pipeline will be installed next to an existing 16 inch pipeline except for a 2.3 mile segment located along State Highway 77 in Eagan. All but a small portion of the pipeline within Rosemount will be located within existing utility easements. The project is needed to support the growing demand for natural gas in the area, and will provide a loop for NNG’s existing branch line that ultimately feeds Xcel Energy’s Cedar power plant. For additional details concerning the original request, please see the attached staff report to the City Council concerning the April 2016 application. This report includes additional information concerning the specific pipeline route through Rosemount, details concerning the type of construction to be used, and an analysis of potential issues. The City ultimately found that the project would meet all applicable CUP requirements with the conditions included in Resolution 2016-039 (which is also attached for review by the City Council). The included easement map depicts the pipeline corridor through Rosemount. NNG is not making any changes to its approved CUP, and is only asking to extend the original October 2017 deadline for completion of the project as specified in Resolution 2016-039. There will 2 be no changes to any of the plans and details from the original request, and all other conditions and requirements would remain in place. Staff has reviewed the request with the City Attorney, who has indicated City Council may take action to extend the previously established CUP deadline. This decision is based partly on the fact that the original resolution includes a specific deadline for completion of the project, and no other terms or conditions associated with the project would be amended. Staff has reviewed the request and has not identified any specific issues that the extension would create that have not already been addressed through the previous review. Please also note that many of the reasons for the delay were outside the control of NNG, and were primarily related to delays in permitting at the federal level. RECOMMENDATION Staff recommends approval of the request to extend the deadline for completion of the NNG pipeline construction work authorized under City Council Resolution 2016-39 until December 31, 2018. CITY OF ROSEMOUNT DAKOTA COUNTY, MINNESOTA RESOLUTION 2016-39 A RESOLUTION APPROVING A CONDITIONAL USE PERMIT (CUP) TO CONSTRUCT A NATURAL GAS TRANSMISSION LINE OVER '/4 MILE IN LENGTH WHEREAS, the City of Rosemount received an application for a Conditional Use Permit (CUP) from Northern Natural Gas (NNG) to construct a 20" natural gas transmission line; and WHEREAS, on Apri126, 2016, the Planning Commission of the City of Rosemount held a public hearing to review the CUP application from Northern Natural Gas construct a 20" natural gas transmission line; and WHEREAS, the Planning Cominission adopted a motion recommending that the City Council approve the CUP for Northern Natural Gas subject to the conditions listed below; and WHEREAS, on Apri126, 2016, the Ciry Council of the City of Rosemount reviewed the Planning Commission's recommendation and the CUP application to construct a 20" natural gas transmission line. NOW,THEREFORE, BE IT RESOLVED, the Council of the Ciry of Rosemount hereby approves the CUP to construct a 20" natural gas transmission line beginning from the NNG Rosemount Junction town border station located at 132nd St W and Bacardi Ave W in Rosemount to Northern Natural Gas's Cedar Station town border station in Eagan, subject to the following conditions: 1. Submittal and approval of a City Utility Permit from the City Engineer. 2. All construction and restoration activities shall conform to the City of Rosemount General Specifications and Standard Detail Plates for Street and Utility Construction. 3. Construction hours outside of those specified in City Code Section 9-7-2 are permitted provided the extended hours are necessary to complete horizontal directional drilling work for long runs that cannot be completed during the permitted construction time period. The applicant shall provide advance notice to the Ciry when activities will extend beyond the working hours specified by the City Code. 4. Northern Natural Gas Company shall limit construction noises from horizontal clirectional drill activities to 55 dBA at any residential dwellings or will work with the resident(s) of said dwellings to temporarily relocate during construction activities. 5. Compliance with the Fire Marshal's recommendations in a memorandum dated 4/20/16. 6. All infrastructure and landscaping removed from Ciry property shall be restored and replaced upon completion of the pipeline project,including a one year warranty period. A letter of credit for 110% of the value of the infrastructure and landscaping shall be submitted to the Ciry prior to work commencing. RESOLUTION 2016- 7. NNG shall submit an updated map book to the City similar to the maps provided with its Federal Energy Regulatory Commission filing showing the locarion of the e sting and proposed pipeline prior to construction. 8. The Conditional Use Pernut shall be valid through the projected completion date of October 31, 2017. ADOPTED this 17`h day of May, 2016 by the Ciry Council of the Ciry of Roselnount. rL William H. Droste, Mayor ATTE : Clarissa Hadler, City Clerk 2 EXECUTIVE SUMMARY City Council Regular Meeting: May 16, 2016 AGENDA ITEM: Case 16-09-CUP Northern Natural Gas Request for a Conditional Use Permit for a Transmission Facility Greater than ¼ Mile in Length AGENDA SECTION: Consent PREPARED BY: Kyle Klatt, Senior Planner AGENDA NO. 6.n. ATTACHMENTS: Resolution, Except of Draft 4/26/16 Minutes, CUP Application Summary; Extended Work Hours Request; Project Description; NNG Email Update (Trees); Horizontal Directional Drilling Information; Fire Marshall Review Comments; Easement Location Map; Pipeline Plan; Public Property Map; Tree Impact Map; Excerpt Planning Commission Minutes April 26, 2016 APPROVED BY: ddj RECOMMENDED ACTION: Motion to approve a resolution granting a conditional use permit for Northern Natural Gas to construct a natural gas transmission line greater than ¼ mile in length, subject to conditions. SUMMARY The City Council is being asked to consider a Conditional Use Permit (CUP) request from Northern Natural Gas Company (NNG) for a new transmission facility greater than ¼ mile in length. NNG is seeking approval to install a new 20 inch natural gas pipeline parallel to an existing smaller pipeline in the north-central portion of Rosemount. Construction of the pipeline will begin in March of 2017 and be completed by October 2017. PLANNING COMMISSION ACTION The Planning Commission held a public hearing to review the conditional use permit request on April 26, 2016. Commissioners asked several questions about the planned directional drilling method and potential impacts to neighboring home owners from the project. Bryan Kruger of NNG noted that directional drilling will take place at depths in excess of 20 feet and that there should be no tremors or other surface impacts over the pipeline. He indicated that noise will be focused around the entrance and exit points of the pipeline where drilling occurs, and that they will add sound mitigation around each site if any work exceeds the maximum sound level of 55dB. In cases where sounds around this level cannot be mitigated, NND will pay to temporarily relocate adjacent residents during construction activity. Staff noted that 55dB is generally considered the ambient noise level as supported by recent sound studies reviewed by the City. The Commission expressed an interest in the amount of time that each segment will take to complete, especially in light of the applicant’s request for extended working hours. Mr. Kruger noted that most directional drilling runs should be completed within a 24-48 hour time period. He indicated that because the pipeline will be constructed in a rural area, there will be a few homes impacted around each drilling site, and that there will be a fair amount of separation from most homes. In response to a Commission question, Mr. Kruger noted that the proposed pipeline will be located 25 feet from the 2 existing line unless this amount of separation cannot be achieved due to the width of the existing easement. The Commission received testimony from one neighboring property owner who asked for clarification on where the line would run across his property. The Commission suggested that the homeowner meet with City Staff and the applicant to review more detailed pipeline plans. Staff explained that the City will not be involved in any new easement acquisition, and that the applicant will need to secure any new or temporary easements before starting the project. NNG, like local governments, can use eminent domain to secure necessary right-of-way for its pipeline. The Planning Commission voted unanimously to recommend approval of the conditional use permit with the conditions as drafted by Staff. BACKGROUND The proposed NNG work within Rosemount is part of a larger project to construct a 7.8 mile long, 20 inch diameter pipeline in Dakota County between NNG’s existing Rosemount Junction located near the intersection of Bacardi Avenue and Bonaire Path and its Cedar Station Yard in Eagan. The majority of the proposed pipeline will be installed next to an existing 16 inch pipeline except for a 2.3 mile segment located along State Highway 77 in Eagan. All but a small portion of the pipeline within Rosemount will be located within existing utility easements. The project is needed to support the growing demand for natural gas in the area, and will provide a loop for NNG’s existing branch line that ultimately feeds Xcel Energy’s Cedar power plant. The section of the pipeline proposed within Rosemount will start at the Rosemount Junction yard as noted above and follow an existing easement in a northwesterly trajectory across the Progressive Rail line, 130th Street West, South Robert Trail, McAndrews Road/Dodd Boulevard intersection, and finally across 120th Street and into the City of Eagan through Lebanon Hills Park. The attached map labeled Exhibit “A” highlights the path of the proposed pipeline and also shows the existing and proposed easements that will support construction of the line. Of particular note are the areas shaded in blue representing temporary easements, needed primarily for staging of construction activity, and the green-shaded areas depicting new easements. New easement acquisition is limited to small runs of pipe between McAndrews Road and 120th Street. Unlike other recent pipeline projects in Rosemount, the majority of the proposed pipeline will be installed using a horizontal directional drilling process (versus open trenching) that should reduce the overall impact of the construction project on the landscape. In general, directional drilling uses a specialized machine to bore a hole underground and then a pipe is pulled back through this hole to occupy the space (as opposed to digging a trench, laying the pipe, and covering the trench). The advantage of this construction method is that land disturbance and activity is typically limited to the entry and exit points for the pipeline. The map labeled Exhibit “B” attached to this memorandum identifies those portions of the pipeline that will be built using traditional open trenching methods and those that will be installed using a directional drilling process. For the most part, open trenching will occur in areas of open fields, while directional drilling will be used in areas of wetlands, heavy tree cover, or areas with larger numbers of buildings and private improvements. NNG has provided the City with a separate attachment describing the directional drilling process. In addition to identifying the type of pipeline construction, Map “B” also delineates the drill locations for the pipe. These locations signify where the staging will occur for the equipment necessary to perform the drilling work, and therefore areas where some impacts are expected for surrounding property owners. In order to support these activities, NNG has identified temporary easement areas 3 needed for access and drilling equipment placement. These easements are being negotiated between the applicant and property owners; no direct staging activity is anticipated on public property or within any public rights-of-way. Access to the drilling and trenching sites will occur from public roads, either through private drives or via existing field access points. As part of its application, NNG is requesting an exception to the City’s standards regulating construction activity operating hours. The applicant is concerned that the directional drilling process will take a long time to complete for the longer runs being proposed and has noted that interrupting the drilling process before reaching the end point is not feasible because the pipe can become stuck if work is halted partway through the run. Staff has found that the request for flexibility from normal working hours is justified in this case because it should help shorten the overall duration of the project in Rosemount. The directional drilling also ensures that the minimal amount of time possible is spent working in each staging area. Finally, from an impact perspective directional drilling is preferred over open trenching. The applicant has proposed mitigation measures to help off-set impacts to adjacent properties when the drilling is taking place, and staff is suggesting that these proposed measures be included as a condition of approval. Staff is therefore recommending approval of the request for extended working hours. During the review of previous pipeline projects, the City Attorney has advised that the City’s authority is limited to crossing of city right-of-way and public property, and the City has no authority over routing of the pipeline on private property. Federal regulations cover pipeline routing on private property and preempt local authority. For this request, the City’s authority is therefore limited to the public road crossings at 130th Street West, Blanca Avenue, Bolivia Avenue, South Robert Trail MnDOT responsibility), McAndrews Road, Dodd Boulevard, and 120th Street West, and the operational standards of construction such as hours of operations, dust control, noise, etc. Because there is an extensive environmental and federal regulatory review associated with the pipeline, NNG is seeking its local permits well in advance of construction. The advanced review is beneficial for the City because it provides ample time to address any anticipated impacts, but does create a problem because the Zoning Ordinance requires all conditional uses to be established within one year of approval. Given the unusual factors associated with a new pipeline project, staff is recommending that the CUP remain valid through the project completion date of October 2017. ANALYSIS/REVIEW Focusing on those areas that the City can review and regulate as it pertains to a public utility pipeline, the main issues that are expected to arise from the project can be summarized as follows: Direct impacts from the construction operations, including noise and dust from drilling equipment, trucks, and other machinery used to install the pipeline. In addition to the CUP request, the applicant will need to secure a utility permit from the City for all work within and under public property. This permit will address some of these issues, especially as they relate to noise and construction appearance. The applicant will be expected to follow general city regulations concerning nuisances both during and after construction of the pipeline. The Fire Marshal has also provided general review comments and has asked for certain information or actions to help address public safety concerns with the project. Loss of vegetation and trees along the planned route. The applicant was asked to prepare a separate map detailing any trees that would be impacted by the project. This map indicates that there are 118 trees within the proposed alignment, and that of these trees, approximately 20 will need to be removed. The number of trees expected to be removed is fairly small 4 because no tree removal is anticipated in areas where the pipe is installed via the directional drilling process. Some tree removal will be necessary to get access to the drilling sites and to be able to properly set up the needed equipment. Most of the tree removal will occur in the staging area between South Robert Trail and Dodd Boulevard south of McAndrews Road. Staff is recommending a condition of approval that requires the applicant to post a letter of credit to guarantee the replacement of any infrastructure or landscaping removed from public property. City right-of-way crossings and work under City streets. Because the project is occurring within an existing easement, the City does not have the ability to suggest alternative crossing locations for the pipeline. The City Engineer has reviewed the proposed project alignment, and does not anticipate any specific construction issues that cannot be managed through the utility permit review. A larger staging area and several drilling points are planned around the McAndrews Road and Dodd Boulevard intersection. Access and private property impacts. Because nearly 75% of the pipeline through Rosemount will be installed using directional drilling methods, the direct impacts to adjacent properties are much less than if the pipe was installed via an open trenching method. This means that direct property impacts will be focused around individual staging areas rather than over long lineal runs across private property. The applicant has committed to maintaining a sound limit of 55dBA at the nearest residence or temporarily relocating these residences when this standard cannot be achieved. The construction access points will need to be approved by the City Engineer as part of the utility permit. Essential Services Permit Zoning Ordinance Section 11-2-17D. states that an Essential Services Permit for transmission facilities over ¼ mile in length must include five findings: 1. The proposed siting complies with the city's comprehensive guide plan. Finding: The proposed natural gas line is to provide expanded capacity to meet increasing demands for natural gas and to provide a loop for an existing branch line. The pipeline will be located within an existing easement, and will cross properties that are guided for transitional or rural residential land uses. The current zoning for the affected properties are either RR – Rural Residential or AG – Agricultural, both of which allow for the proposed transmission line as a CUP. 2. To the extent possible, the proposed siting is within or adjacent to existing public rights of way, private utility easements or other designated corridors for transportation or transmission facilities. Finding: For this request, the City’s authority is limited to the public road crossings described above and the operational standards of construction such as hours of operations, dust control, noise, etc. The applicant is proposing to directional drill under all roadways, and will be securing temporary easements adjacent to public roads to provide adequate room for staging of equipment, vehicles, and workers. The City’s ability to restrict crossings is limited because the pipeline will be located within an existing easement. The City Engineer noted that any expected issues over or adjacent to public roadways may be addressed though the utility permitting process. 3. The proposed siting is necessary based upon a need and locational analysis. Finding: In addition to a general increase in demand for natural gas services, the applicant has noted that the pipeline is needed to fulfill a contractual obligation with Xcel Energy to provide 5 a minimum amount of pressure at the Cedar Station facility. This facility supplies natural gas for Xcel’s Black Dog power plant. Staff finds that the proposed alignment has completed the need and locational analysis. 4. Impacts, including, but not limited to, noise and views, are identified and mitigated. Finding: The City Utility Permit and the existing City Code regulations will address any issues or impacts including noise and construction appearance. Staff is also recommending a condition requiring NNG to limit construction noise impacting near-by residences or to temporarily relocate these residents when the specified sound levels cannot be met. 5. The proposed siting will not create hazards to the health, safety and general welfare of surrounding property owners or natural environment. Finding: Staff finds that NNG has considered the natural environment in their alignment and is proposing construction alternatives that will have less impact on the general welfare of the surrounding property owners. RECOMMENDATION The Planning Commission and Staff recommend approval of the Conditional Use Permit subject to the conditions provided. This recommendation is based on the plans submitted by the applicant and the findings made in this report. µCedar Station Upgrade Pipeline Project RouteDakota County, MinnesotaEasement Location MapDimensions are Approximate49,439 S.F.1.13 Acres143,018 S.F.3.28 Acres39,422 S.F.0.90 Acres17,188 S.F.0.39 Acres5,256 S.F.0.12 Acres3,343 S.F.0.07 Acres63,077 S.F.1.44 Acres125,886 S.F.2.88 Acres59,310 S.F.1.36 Acres80,035 S.F.1.83 Acres1,136 S.F.0.02 AcresLEGENDProposed PipelineParcel LinesProposed New EasementsExisting EasementsTemporary EasementsDrill Location11,600 FEET Total Length (ROSEMOUNT)76,362 S.F. / 1.73 Acres904,839 S.F. / 20.72 Acres510,748 S.F. / 11.69 Acres