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ITC Midwest LLC Transmission Line PolesMasterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Design Options for Dove Harbor ITC Transmission Line Poles DATE: December 13, 2012 Dubuque kital All- America City II 111! 2012 Economic Development Director Dave Heiar is transmitting options on the number, alignment and coating preference for proposed replacement power line poles in Dove Harbor. ITC Midwest, LLC owns and operates electrical transmission lines in the Dubuque area. ITC possesses an easement from the City of Dubuque — provided to the Interstate Power Company in 1957 — allowing the construction, operation and maintenance of a transmission line and supporting poles in the Dove Harbor area. Currently, ITC has two lattice tower structures poles within the easement at the southeast and southwest corners of the Harbor. Increased energy demand and the planned decommission of the nearby Alliant Power Plant has resulted in the need to increase the capacity of the transmission line, and as such, require new towers. However, modified regulations by the Army Corp of Engineers require that new construction take place at least 15 feet from the base of the slope leading to the floodwall. City Engineering staff believe the location of the existing poles violate that regulation. ITC has asked the City, as the owner of the land, to provide a preference on one of two proposed pole alignment options that will satisfy the requirements of the Army Corp of Engineers and increase the capacity of the transmission line. The first option includes two poles, each likely to be located inland from the existing structures. The second option includes only one pole, with the new pole being located between the existing structures at the south central location of the Dove Harbor Peninsula. The singular pole would be 230 to 235 feet in height while the two -pole option would feature two, 215 feet structures. Existing lattice towers on the site are 129 and 211 feet tall. The City's tallest water tower, for reference, is the 95 -foot high College Street elevated storage tank near Finley Hospital. Additionally, ITC has asked for the City to give preference on the type of pole used. Options include a galvanized steel pole or a weathered steel structure. Photos of the two options are attached. Flint Hills Resources leases the land from the City where the one pole would be located. They are ok with either a one pole or a two -pole choice. Flint Hills does prefer a galvanized pole. Dubuque Terminals has executed a lease for land where one of the poles now is located and where one of the poles would be located if two poles were re- installed. Dubuque Terminals prefers the one pole option. Economic Development Director Dave Heiar recommends City Council approval of a resolution establishing a preference for a one -pole alignment using a galvanized steel pole. Additionally, the City will request that ITC return the site to its original state after construction. The one pole option might not be located in the current easement, causing a new easement agreement to be executed in the future. I concur with the recommendation and respectfully request Mayor and City Council approval. Michael C. Van Milligen MCVM:jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Teri Goodmann, Assistant City Manager David J. Heiar, Economic Development Director 2 Masterpiece on the Mississippi TO: Michael Van Milligen, City Manager FROM: David J. Heiar, Economic Development Director SUBJECT: Design Options for Dove Harbor ITC Transmission Line Poles DATE: December 12, 2012 Dubuque Leal All-America City 11111 2012 Introduction This memorandum transmits for City Council review and discussion options on the number, alignment and coating preference for newly constructed power line poles in Dove Harbor. Background ITC Midwest, LLC, a subsidiary of ITC Holdings Corp. out of Novi, Michigan, owns and operates electrical transmission lines in the Dubuque area. ITC possesses an easement from the City of Dubuque — provided to the Interstate Power Company in 1957 — allowing the construction, operation and maintenance of a transmission line and supporting poles in the Dove Harbor area. Currently, ITC has two lattice tower structures poles within the easement at the southeast and southwest corners of the Harbor. Increased energy demand and the planned decommission of the nearby Alliant Power Plant has resulted in the need to increase the capacity of the transmission line, and as such, require new towers. However modified regulations by the Army Corp of Engineers require that new construction take place at least 15 feet from the base of the slope leading to the floodwall. City Engineering staff believe the location of the existing poles violate that regulation. ITC has asked the City, as the owner of the land, to provide a preference on one of two proposed pole alignment options that will satisfy the requirements of the Army Corp of Engineers and increase the capacity of the transmission line. The first option includes two poles, each likely to be located inland from the existing structures. The second option includes only one pole, with the new pole being located between the existing structures at the south central location of the Dove Harbor peninsula. The singular pole would be 230 to 235 feet in height while the two pole option would feature two, 215 feet structures. Existing lattice towers on the site are 129 and 211 feet tall. The City's tallest water tower, for reference, is the 95 -foot high College Street elevated storage tank near Finley Hospital. Additionally, ITC has asked for the City to give preference on the type of pole used. Options include a galvanized steel pole or a weathered steel structure. Photos of the two options are attached. Discussion The City currently has an active lease with Flint Hills Resources for approximately 20 acres on the southeastern portion of the Dover Harbor peninsula. Additionally, the City has an executed lease with Dubuque Terminals, Inc. for approximately 5 acres on the southwestern portion of the peninsula that will go into effect on February 1, 2013. The two existing poles are located on both leased sites. The two -pole option would keep both poles on each site, while the one -pole option would establish a pole south of the rail line near the southwest corner of the Flint Hills Resources site. City staff has been in discussions with representatives from Flint Hills Resources as an active tenant, and Dubuque Terminals, as a future tenant on the site. Flint Hills officials have stated that they have no preference regarding the one or two -pole option, as long as the new structure does not interfere with their existing roadway and that the site is returned to its original state after construction. Dubuque Terminals has concerns that the two -pole alignment could negatively impact their use of cranes for barge loading and unloading, as well as the maneuverability of truck traffic. While the one -pole option will feature a taller pole, with a larger base, there will be minimal impact on the Flint Hills Resources site, demonstrated in the attached aerial photograph. However the move of the western structure inland on the two -pole alignment could have a detrimental impact on Dubuque Terminals' ability to fully utilize the land. Representatives with the company have asked the City to consider reducing the price per acre in their lease if that occurs. While the one -pole option is preferred for the optimal use of existing land, the alignment does not fully coincide with the current easement the City provided to the Interstate Power Company. City Legal staff has recommended that pole placement be established and if the one -pole option is preferred, negotiations take place with ITC to abandon the current easement in favor of an easement over the proposed alignment. Irrespective of pole placement, Flint Hills Resources officials preferred the use of galvanized steel material over the weathered steel material. The galvanized steel poles will appear gray and will not rust, compared to the weathered structures. Recommendation I recommend that the City Council approve the resolution establishing a preference for a one -pole alignment using a galvanized steel pole. Additionally, the City will request that ITC return the site to its original state after construction. Action Step The action step is for the City Council to approve the attached resolution. attachments F: \USERS \Econ Dev \ITC Holdings Corp\20121211 Dove Harbor pole option - Council memo.docx Prepared By: David Heiar ED Director City of Dubuque 50 W. 13th St. Dubuque, IA 52001 (563) 589 -4393 Return To: David Heiar ED Director City of Dubuque 50 W. 13th St. Dubuque, IA 52001 (563) 589 -4393 RESOLUTION NO. 352 -12 A RESOLUTION STATING THE PREFERENCE FOR THE NUMBER, ALIGNMENT AND COATING PREFERENCE OF POWER LINE POLES TO BE CONSTRUCTED IN DOVE HARBOR. Whereas, ITC Midwest, LLC, a subsidiary of ITC Holdings Corp. out of Novi, Michigan, owns and operates electrical transmission lines in the Dubuque area; and Whereas, currently ITC has two lattice tower structure poles, at the southeast and southwest corners of Dove Harbor, that are currently located within an easement from the City of Dubuque; and Whereas, increased energy demand and the planned decommission of the nearby Alliant Power Plant has resulted in the need to increase the capacity of the transmission line, and as such, require new towers; and Whereas, regulations by the Army Corps of Engineers require that new construction take place at least 15 feet from the base of the slope leading to the floodwall; and Whereas, ITC has asked the City, as the owner of the land, to provide a preference on one of two pole alignments that will satisfy the requirements of the Army Core of Engineers and increase the capacity of the transmission line; and Whereas, the City has received the input of Flint Hills Resources, the current active tenant on the southeast corner of the Dover Harbor peninsula, and Dubuque Terminals, Inc. southwest corner of the peninsula. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the stated preference for the transmission line alignment is the option that will utilize one structure at the south central portion of Dove Harbor, subject to negotiation of a new easement and the abandonment of the previously existing easement on the site. Section 2. That the coating preference for the structure is a galvanized steel pole. Section 3. That ITC is asked, to the best of its ability, to return the construction site back to its original state after the placement of the structure. Passed, approved and adopted this 17th day of December, 2012 Roy D. Buol, Mayor Attest: Kevin S. irnstahl, City Cle F: \USERS \Econ Dev\ITC Holdings Corp\20121210 Dove Harbor poles - resolution.docx Galvanized Steel Weathering Steel