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MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, December 13, 2010 7:00 o’clock p.m. _____________________________________________________________________________________ Page 13 of 27 (11. #11-3471 TERRY SCHNEIDER WITH KLINGELHUTZ DEVELOPMENT ON BEHALF OF WOODHILL SENIOR COLLATES OF NAVARRE, 2525 SHADYWOOD ROAD, Continued) Franchot moved, Murphy seconded, to adopt RESOLUTION NO. 6002, a Resolution Approving a Conditional Use Permit and Site Plan for Properties Located at 2525, 2535, and 2545 Shadywood Road. VOTE: Ayes 5, Nays 0. 12. #10-3486 XCEL ENERGY, 3960 SIXTH AVENUE NORTH – CUP SUBSTATION ROUTING PERMIT Joe Sedarski, Chris Rogers and Gene Cox were present on behalf of Xcel Energy. Curtis stated in August Xcel Energy began the process of making an application to expand and upgrade their existing substation at 3960 Sixth Avenue North. This project includes a complete rebuild of the existing substation and an increase in operating voltage from 69 kilovolts to 115 kilovolts. A new transmission line is also proposed. The final route for the new, overhead transmission line has not yet been determined but will be subject to review and approval. This type of project is typically reviewed and approved by the Public Utilities Commission (PUC). However, Xcel may seek local review and approval because their project meets the exemption set out in the Statute. The exemption applies to projects involving transmission lines between 100 and 200 kV, and substations with a voltage designed for and operating at 100 kV or more. Both are being proposed on this site. Pursuant to Minnesota Statute 216.E.05 and MN Rule 7850.5300, Xcel may seek local review and approval from the City via our conditional use permit process for their substation expansion and new transmission line route. Pursuant to MN Statute 216.E.05, Subd. 1(b) and MN Rule 7850.5300, Subpart 4, the City has 60 days in which to refer review and permitting back to the PUC. As the application is not yet complete, that 60-day clock has not begun. City Zoning Code lists public service structures as an allowed conditional use within all districts in the City. Specifically, Section 78-393(6) applies to the RR-1A District where this property is located. Staff initially understood the local review sought by Xcel was only the CUP for the substation expansion. Staff now better understands that accepting Xcel’s request for local review includes the substation and approval of the routing for the new transmissions line route. Because the review process cannot be split between the City and the PUC, the City must review either both aspects of this proposal or neither. In the opinion of Staff, the City does not have the appropriate level of expertise needed to fully review the routing of the new transmission lines. Based on the City Attorney’s discussions with the PUC, we believe the City’s comments and recommendations on the application, specifically related to land use, screening, setbacks, etc., will be implemented in the PUC’s review and approval of the project. The City does not have a history of reviewing this type of application and Staff would recommend the City defer the review of this application to the PUC pursuant to 216.E.05, Subd. 1(b), and Rule 7850.5300, Subpart 4. Mayor White opened the public hearing at 8:49 p.m. Michael Kuruvilla, 760 Hunt Farm Road, stated he is president of the Hunt Farm Road Homeowners Association. Kuruvilla stated an application is being put forward but that the homeowners association has concerns since this is located at their back door. Item #04 - CC Agenda - 01/10/2011 Approval of Council Minutes 12/13/2010 [Page 13 of 27]