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HomeMy WebLinkAbout8A Sycamore Trail Overhead Power Burial Report 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: JULY 10, 2017 AGENDA #: 8A PREPARED BY: LARRY POPPLER, ASSISTANT PUBLIC WORKS DIRECTOR/CITY ENGINEER PRESENTED BY: LARRY POPPLER AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION PERTAINING TO OVERHEAD POWER/CABLE BURIAL ON SYCAMORE TRAIL (TRN17-000005) DISCUSSION: Introduction Property owners have petitioned the city for burial of power and cable for Syca- more Trail. The purpose of this agenda item is to discuss the mechanism to bury power and cable on Sycamore Trail. History The City is in the process of reconstructing Sycamore Trail along with three other project areas. At the November 28th, 2016 City Council meeting, the Council accepted the feasi- bility study and scheduled the Public Hearing for January 23rd, 2017. On January 23, 2017, the City Council held the Public Hearing and adopted Reso- lution 17-010 ordering the improvement project. On April 10, 2017, the City Council approved the project plans and specifications and authorized the advertisement for bids for the 2017 Reconstruction Improve- ment Projects. On May 22nd, the City Council approved a resolution awarding a contract for con- struction. As a part of the approving resolution, the City Council directed the re- moval of the turnaround and burial of overhead power/cable if 100% of the prop- erty owners sign a waiver of assessment. Current Circumstances Residents of Sycamore Trail believe that the overhead power lines should be bur- ied with this project. The City met with Xcel Energy to discuss this burial during the winter. At the meeting Xcel indicated that their facilities are in good condition and are generally outside the work limits of the project. In these circumstances, it is not their policy to bury the overhead power lines unless they are compensated. Xcel stated that the cost of burial is estimated to be $90,000. In May, Xcel revised their estimate to $51,000 as the City was awarding the con- tract. After the plans were complete and the City Council awarded the contract for street reconstruction, the City again met with Xcel Energy. Xcel learned more about the 2 project and responsibilities for restoration and timing of work. Consequently, they revised their estimate to $15,849 but informed the City that Mediacom must also bury their facilities as they are also located on the poles. The City reached out to Mediacom and they provided a quote of $9,801. On June 20th, the City sent waiver forms to 16 properties involved in the assess- ment for the street project. The overhead power burial amounted to $1,604 per property as a part of the project. The deadline for return of the waivers was June 30th however, the City did not receive 100% returns on the waiver as set forth in the city council’s conditions to complete this aspect of the project. At the June 26th City Council meeting the City Council received a petition from 12 property owners to bury the overhead power but instead of assessing the costs, the costs would be pre-paid by the residents. The payment would not exceed $1,604 per property. Conclusion Staff finds the petition request acceptable but recommends the following: 1. Payment must include the full cost of the overhead power burial $25,650 paid in advance by a single property owner by July 15, 2017. 2. If the costs are less than the amount shown, a refund to the property owner would be made. The property owners would decide how to apportion this amount. 3. If it is more than the costs computed, the city would request additional funding. 4. It is irrelevant to the City how many persons pay to the coordinating prop- erty owner to bury the overhead power, but the general taxpayers should not pay any part of the overhead power burial. 5. If only 12 property owners participate, the cost per property owner would be $2,137.50 based on current estimates. Five property owners will also have other expenses for burial of their service wires which is their sole re- sponsibility. Another option is for the property owners to work directly with the power and cable company to pay the costs. Property owners may already be pursuing that possibil- ity. ISSUES: The petition received specifically asks that the 12 petitioners payment amount is capped at $1,604 each implying that the general taxpaying public pay the shortfall. Considering the burial of power/cable is an aesthetic enhancement to the neigh- borhood, the full amount should be borne by the petitioners. FINANCIAL IMPACT: The Sycamore Trail Improvement Project is proposed to be financed by Special Assessments, tax levy, Sewer Fund, Water Fund, and Water Quality Fund. The funding of each option and the corresponding estimated amounts are shown be- low: 3 SYCAMORE TRAIL AREA IMPROVE- MENT PROJECT - FUNDING Ad Valorem $230,613 Assessment (40%) $168,428 Utility Fund - Sewer $16,387 Utility Fund - Water $162,958 Water Quality Fund $54,374 Assessment (Per Unit) – Reconstruction $10,527 Total $632,760 The Capital Improvement Plan estimate for this project was $752,182. The costs shown in the table have not yet been updated to remove the turnaround costs. The final costs will incorporate the savings for the project by removing the turna- round. ALTERNATIVES: 1. Approve a Resolution pertaining to burial of overhead power/cable for the Syc- amore Trail Improvement Project in conformance with the conditions set forth in this report. 2. Deny this item for a specific reason and provide staff with direction. 3. Table this item until some date in the future. RECOMMENDED MOTION: A motion and a second for approval of Alternative #1. 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 17-___ A RESOLUTION PERTAINING TO OVERHEAD POWER BURIAL ON SYCAMORE TRAIL Motion By: Second By: WHEREAS, Property owners on Sycamore Trail have petitioned the City to bury overhead power; and WHEREAS, Xcel Energy and Mediacom have provided quotes for the burial at a cost of $25,650 total. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. The City of Prior Lake will contract with Xcel Energy and Mediacom for the overhead power burial on Sycamore Trail if payment is received in the amount of $25,650 from the property owners by July 15, 2017. 3. Payment by the property owners should be from a single property owner. 4. If the costs are less than the amount shown, a refund to that property owner would be made. 5. If it is more than the costs computed, the city would request additional funding from the property owner. 6. The agenda report from July 10,2017 is made a part hereof as if set forth in its entirety at this point. PASSED AND ADOPTED THIS 10TH DAY OF JULY 2017. VOTE Briggs McGuire Thompson Braid Burkart Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ ______________________________ Frank Boyles, City Manager