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CASE # <br /> <br /> Consideration of reduced ROW fees for Service Line Replacement Program <br />By: Brian E. Olson, Assistant Director of Public Works / Principal City Engineer <br /> <br />Background: <br /> <br />On Junc 9, 2005, representatives of CenterPoint Energy met with City staff to announce its plans <br />to replace service lines that may have construction similarities to the service line that was <br />involved in tile December 2004 explosion in Ramsey. <br /> <br />CcntcrPoint Energy has initiated an aggressive service line replacement project that will replace <br />tile service liucs for up to 35,000 customers throughout 37 communities. There are 51 <br />construction crews throughout the state of Minnesota starting on Monday (see attached map). <br />Three o1' these construction crews will be in the city of Ramsey replacing most of the service <br />lines that were installed between 1959 and 1983. CenterPoint estimates that there will be 1600 - <br />1900 households that will have their services replaced in Ramsey and their goal is to complete <br />this project before this winter. <br /> <br />Typically a permit to work within the ROW costs a minimum of $75 per permit. That permit fee <br />is based on the time it would take to make two trips to a single construction site and is generally <br />to pay for our time and expenditures. For example, every time someone plans on digging, State <br />law requires them to call Gopher State One to locate utilities. The cost to the City for each call is <br />$1.35 (1900 calls @ $1.35 = $2,565). Since there will be multiple permits in a single area there is <br />an economy of scales that will be realized regarding the time spent on each permit and Staff feels <br />that to simply charge for each service replaced would be excessive. <br /> <br />Stat'f recommends that the City Council consider a blanket ROW permit for CenterPoint Energy <br />specific to the service line replacement project for a cost of $10,000. Even though we expect a <br />great deal of time spent on this project, Staff feels that this is extremely beneficial project to the <br />community from a public safety perspective and would like to cooperate fully. <br /> <br />Cou ncii Action: <br /> <br />Motion to authorize Staff to issue a blanket ROW permit for CenterPoint Energy specific to the <br />service line replacement project for a cost of $10,000. <br /> <br />Reviewed by: <br /> <br />City Administrator <br />Assistant City Administrator <br />Director of Public Works / Fire Chief <br /> <br />CC: 06/14/05 <br /> <br />I:~/I(;END/I ('OUNCIL & COMMISSIONICity Councill2OO5UunelROWfeesCenterpointO61OO5.doc--~06/lO/05 I <br /> <br /> <br />