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Home My WebLink About10A - Xcel Energy Resolution 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 MEETING DATE: AGENDA #: PREPARED BY: REVIEWED BY: AGENDA ITEM: DISCUSSION: ISSUES: CITY COUNCIL AGENDA REPORT DECEMBER 19, 2005 10A STEVE ALBRECHT, PUBLIC WORKS DIRECTOR/CITY ENGINEER FRANK BOYLES, CITY MANAGER CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING a) XCEL ENERGY TO BURY THE OVERHEAD POWER LINES ALONG DAKOTA STREET AND HASTINGS AVENUE; b) ADVERTISEMENT OF BIDS FOR COMMERCIAL ELECTRICAL CONNECTIONS REQUIRED FOR OVERHEAD POWER LINE BURIAL Introduction . The purpose of this agenda item is to authorize Xcel Energy to complete the burial of the overhead power lines along Dakota Street from Arcadia to Erie Avenue and along Hastings Avenue from CR 21 to Kop Parkway. This project is Phase 2 of the overhead power line burial for the 2004 Downtown Reconstruction Project. History In 2004 Xcel Energy completed Phase 1 of the overhead power lines burial along Dakota Street from TH 13 to Erie Avenue and CR 21 from Hastings Avenue to the Library. This work was completed as part of the 2004 Downtown Reconstruction Project. Phase 2, which is the purpose of this agenda item, was originally scheduled for late 2004. However issues the City raised with regards to the construction and cost of Phase 1 delayed the process. The Phase 1 project was originally proposed to be completed for $87,000. However delays and over-runs pushed Xcel's costs to in excess of $150,000. The final cost placed on the City Requested Facilities Surcharge (CFRS) was $102,767. This amount is being recovered by Xcel through a $1 per month surcharge for residential customers for 28 months. City and Xcel staff met several times regarding the cost and quality of work in the Phase 1 project. Xcel has committed to a higher level service which to date they have demonstrated on the 2005 Reconstruction Project. Current Circumstances Xcel Energy has completed an estimate for Phase 2 of the overhead power line burial. The proposed Phase 2 burial is shown on the attached map. The proposed work will include burial of the overhead C:\Docurnents and Settings\cgreen\Local Settings\Ternporary Internet Files\OLK162\agenda downtown power burial 12-19-05 (2).doc www.cityofpriorlake.com Phone 952.447.4230 / Fax 952.447.4245 lines required for construction of the Police Station on the south side of Dakota Street. The proposed CRFS is $262,300 to complete the burial. A copy of the CRFS Summary is attached to this report. This amount includes reconnection of residential services on Dakota Street, but does not include the cost to reconnect business services along Hastings Avenue. As part of the 2004 Downtown Reconstruction Project the City assessed benefiting businesses 40% of the electrical reconnection charges. The balance of the funds remaining in the Construction Fund for the Phase 2 electrical service connections is $74,000. Conclusion Staff is recommending that the Council authorize Xcel Energy to complete Phase 2 of the overhead power line burial. FINANCIAL IMPACT: The overhead power line burial will be paid for from the CRFS. A copy of the proposed CRFS is attached to this report. Currently Xcel customers receive the Phase 1 CRFS. If the project is completed by August of 2007, Xcel customers will see the Phase 1 & 2 CRFS for an estimated 15 months after which time the CRFS would revert to the Phase 2 level for the remaining 21 months. For Phase 2, this means that residential customers will pay an additional $2 per month for 36 months. The remaining costs for the connection of electrical services are estimated to be approximately $74,000. Funds for the electrical service connections were set aside as part of the 2004 Downtown Reconstruction project and are available in the Construction Fund. ALTERNATIVES: The alternatives are as follows: 1. Approve a resolution authorizing Xcel Energy to bury the overhead powerlines along Dakota Street and Hastings Avenue; 2. Approve a resolution authorizing advertisement of bids for commercial electrical connections required for the overhead power line burial. 3. Table this agenda item and provide staff with direction. 4. Deny this agenda item for a specific reason and provide staff with direction. RECOMMENDED MOTION: REVIE10 BY: Frank Boyles, Ci Staff recommends alternative number 1 and 2. C:\Docurnents and Setting een\Local Settings\Ternporary Internet Files\OLKI 62\agenda downtown power burial 12- I 9-05 (2).doc 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 RESOLUTION OS-XX RESOLUTION AUTHORIZING ADVERTISEMENT OF BIDS FOR COMMERCIAL ELECTRICAL CONNECTIONS REQUIRED FOR OVERHEAD POWER LINE BURIAL MOTION BY: SECOND BY: WHEREAS, The City Council desires to proceed with the burial of power lines on Hastings and Dakota Streets in the downtown; and WHEREAS, Power line burial requires work to be completed which is not contemplated by the power company; and WHEREAS, To accomplish such work and remain in conformance with Minnesota Statutes and the City's purchasing policy, the City must advertise for bids. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA, that: 1. The recitals set forth above are incorporated herein. 2. The staff is here by authorized to prepare specifications as may be necessary. 3. The staff is authorized to advertise for bids to complete the commercial electrical service connections required by the power line burial. Passed this 19th day of December 2005. YES NO Haugen Haugen Flemina Fleming LeMair LeMair Petersen Petersen Zieska Zieska { Seal} Frank Boyles, City Manager C:\Docurnents and Settings\cgreen\Local Settings\Ternp~ipir~~~da downtown power burial 12-19-05 (2).doc Phone 952.447.4230 / Fax 952.447.4245 MONTHLY FACILITIES SURCHARGES DOWNTOWN REDEVELOPMENT PROJECT PHASE 1 & PHASE 2 PHASE 1- 28 MONTHS - CRFS $102,767.00 Customer Class Monthly Surcharge Residential $1.00 Residential Low Income $1.00 Small C&I Non-demand Billed $1.00 Small C&I Demand Billed $3.00 Large C&I na Small Municipal Pumping Non-Demand $1.00 PHASE 2 - 36 MONTHS - CRFS $262,300.00 Customer Class Monthly Surcharge Residential $2.00 Residential Low Income $1.00 Small C&I Non-demand Billed $2.00 Small C&I Demand Billed $6.00 Large C&I na- Small Municipal Pumping Non-Demand $2.00 TOTAL OF PHASES 1 & 2 - AND HOW IT WILL SHOW ON CUSTOMERS BILL WITH REMAINING MONTHS OF PHASE 1 Customer Class Monthly Surcharge Residential $3.00 Residential Low Income $1.00 Small C&I Non-demand Billed $3.00 Small C&I Demand Billed $9.00 Large C&I na Small Municipal Pumping Non-Demand $3.00 ~ z o l!~ .5': F"~~~~Ij.~ iil"~'~lrl ~~ d "'i .!I!~i-l!l':g'15 g~R~~]~'g~ f~i~l~i~: 1'~~l!i~~ll ~ ~I" ~~e~.~ ~1ll'~.i'1i~8 ,...., ~i ~.. 9l l!l_~~ ~2j - ".5 !II g ,..~ "- ..... -IS l! i:lS.,; j2~~fj~~~ '!~ ~I ~ Ii .d~- .!I! ~ i .. ~ ~~ ~ ; 2"- c: ~ i .. ~ ::J lft 'i 15.Sl .. !ll!.ll :g'~ l!C:lii~1l.aC::"i ..,.rl'a, 1'5.,; CIJ"C E '0_ cD :CC:8~~1ii~.E 1-" ~1! ,s U J!I . 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