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gear e S Wanda 515 Idtlle Canada Road, Little Canada, MN 55117 -1600 (651) 766 -4029 / FAX: (651) 766-4048 www.cl.little- canada. mn. us MEMORANDUM TO: Mayor Biesener and Members of the City Council FROM: Joel Hanson, City Administrator DATE: October 7, 2011 RE: Little Canada Road Improvements Update MAYOR 13111 I3lcsencr COUNCIL Rick Montour John Kcts Michael McGraw Shelly Boss ADMINISTRATOR Joel R. Hanson The City received the attached email from Xcel Energy which estimates the cost of undergrounding utilities along Little Canada Road from Edgerton to McMenemy at $416,250. Please note that this is not a full estimate of costs. City staff will be meeting with representatives of Xcel Energy to discuss more details. The estimated cost of this work appears to be higher proportionately than what the initial estimate of other utility undergrounding work that was recently done in the City. See information below: Rice Street (B to 13 -2) Price Per Foot Little Canada Road Edgerton to McMenemy Price Per Foot Edgerton to Centerville Price Per Foot Xcel's Initial Estimate Actual Costs $551,259 $714,025 $198.29 $256.84 $416,249.78 $212.37 $662,594.00 $212.37 The City spent $5,000 to obtain this estimate. Xcel indicated that their typical charge for an estimate of this nature is $20,000, and the City would have to spend additional dollars to obtain a more detailed estimate. The City has budgeted $600,000 for the undergrounding work along Little Canada Road from Edgerton to Centerville Road. Xcel's initial estimate of this work is $662,594. Revenue from the City's Electric Franchise Fee is allocated to other projects; therefore, the City would need another source of funding to cover this cost. The City of Roseville has imposed a surcharge on electric sales in the city. We could consider that funding option. Staff is looking for Council direction in this platter. 1