06-13-2012 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL JUNE 13, 2012 RESOLUTION NO. 2012 -6 -105 — APPROVING THE RELEASE OF DEVELOPMENT AGREEMENT BETWEEN THE CITY AND IUPAT COUNCIL 82 BUILDING CORPORATION, INC. AND AUTHORIZING THE MAYOR AND CITY ADMINISTRATOR TO EXECUTE THE RELEASE ON BEHALF OF THE CITY The foregoing resolution was duly seconded by Boss. Ayes (5). Nays (0). Resolution declared adopted. XCEL BILL The City Administrator reported that the City agreed to equally share the FOR cost of powerline undergrounding in the Rice Street Phase I project with UNDER- the City of Roseville. The portion of costs for Little Canada's side of Rice GROUNDING Street was $183,787, and $147,029.60 has been paid leaving a balance of RICE STREET $36,757.40. The Administrator reported that Xcel Energy has revised the POWERLINE project cost estimate and has indicated that Little Canada owes a final amount of $47,639.40. Xcel Energy will not provide the detailed documentation to support the additional costs. Roseville has also been billed for added costs and Little Canada will be responsible for up to 50% of that amount. Xcet's claim is that the plans submitted by the County were incorrect while the County is saying that Xcel did not install the lines in the correct location. The Administrator reported that the City of Roseville is considering what steps to take to address this situation, one of which may be to file a letter with the Public Utilities Commission (PUC). The City Administrator recommended that the City pay the balance of the money owed to Xcel Energy based on its initial estimate ($36,757.40) at this time. The City would then withhold payment on the disputed amount. The Administrator reported that he discussed this with the City Attorney who recommended that a letter disputing the additional charges be sent to Xcel along with this payment. The Attorney indicated that the City may be subject to penalties for withholding payment of the disputed amount, however. McGraw asked the approach that the City of Roseville is taking. The Administrator indicated that Roseville has a more complicated situation given they are collecting this cost through a surcharge on their utility billing. The Administrator reported that Roseville is discussing the issue with the City Attorney to determine their best approach. The Administrator also noted that given the significant amount involved, it was his feeling that both cities deserved a detailed breakdown of Xcel's costs. Mr. Keis introduced the following resolution and moved its adoption: 8