01-09-2013 Council Minutes - Laserfiche WebLink

Home Browse Search

MINUTES CITY COUNCIL JANUARY 9, 2013 The City Administrator reported that the City could use a City Requested Facilities Surcharge (CRFS) to pay for these costs as Roseville did to pay for the power line burying costs on the Rice Street Phase I project. He pointed out the grid in the agenda packet which shows that for $419,077, residential users would see an additional $2.02 per month for three years on their utility bill to pay for power line burying. If the section of Little Canada Road from McMenemy Road to approximately Noel Drive is added for an additional $201,000, the Administrator estimated the cost to a residential utility customer at $3.03 per month. The City Administrator stated that he would recommend the use of the CRFS to pay for the costs of burying the power lines so that the City does not short itself on funds that are needed for other road projects. McGraw asked if multi - family housing was included in the number of residential customers. The City Administrator thought that they were, therefore, condominium and townhome owners would see the additional $3.30 per month if the CRFS is utilized to pay the City's cost of burying the power lines. Blesener asked about the power lines on the west side of the freeway. The City Administrator pointed out that the power lines on the west side of 35E to the seven corners area were buried. The City also buried power lines in the Rice Street Phase 1 project. The Administrator indicated that whether the cost of burying the power lines on the east side of the freeway is worth it is a decision the Council will have to make. The Council discussed in detail the estimated cost of $620,077 to bury power lines from 35E to approximately Noel Drive. It was noted that if the City levied these costs rather than enacting the CRFS, the result would be approximately 9% to 10% increase in the levy. It was also noted that the CRFS would be in place for three years. Council also noted that at the end of the three years it is likely the Rice Street Phase II project would move forward and it may be necessary to put a CRFS in place to cover the costs of burying those power lines. The Council noted that this may be the only opportunity to bury these power lines on Little Canada Road, and while image is important, the cost is high. Keis asked about the cost of right -of -way acquisition. The Administrator indicated that these costs are not included in the estimates. He also noted that the City would have to obtain appraisals of the needed easements. There will also have to be decisions made on how the project will be assessed. Keis asked about the impact to individual property owners for reconnection of services if the power lines are buried. The City 9