01-23-2013 Council Agenda - Laserfiche WebLink

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MAYOR Bill Blesener COUNCIL Rick Montour John Keis Michael McGraw Shelly Boss 515 Little Canada Road, Little Canada, MN 55117 -1600 (651) 766 -4029 / FAX: (651) 766 -4048 ADMINISTRATOR www.ci.little- canada.rn.us Joel R. Hanson MEMORANDUM TO: Mayor Blesener and Members of the City Council FROM: Joel Hanson, City Administrator DATE: January 18, 2013 RE: Little Canada Road Power Line Funding Options At the last Council Meeting, staff was directed to evaluate our ability to supplement the cost of burying the power lines on Little Canada Road. Here is a quick summary of the cost options: I -35E to McMenemy - $419,077 McMenemy to Edgerton - $416,250 McMenemy to Noel Drive - $201,000 (prorated based on earlier estimate) In our 2013 Budget, we allowed $425,000 for this cost (see sheet labeled "Current Budget). In that projection, we allowed for 100% of this cost to be offset with Xcel's Community Requested Facilities Surcharge (CRFS) funding. The sheet showing the impact of this program over a three -year period is attached. To depict the impact of possible scenarios, staff developed the following options: • Option 1 - $620,000 (I -35E to Noel) fully offset by CRFS (increase CRFS impact by 50% over what the current sheet indicates). • Option 2 - $620,000 (I -35E to Noel) offset by $200,000 of Fund 450's resources and the balance of $420,000 paid by CRFS — essentially the same CRFS impact as shown on CRFS sheet attached. • Option 3 - $420,000 (I -35E to McMenemy) fully offset by CRFS (this is a slightly more accurate cost estimate than shown in the current budget for this work and essentially the same impact as shown on CRFS sheet attached). • Option 4 - $420,000 (I -35E to McMenemy) cost offset by $200,000 of Fund 450's resources and the balance of $220,000 paid by CRFS (will reduce CRFS impact by about 47 %).