01-23-2013 Council Agenda - Laserfiche WebLink

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In reviewing the options, you will see we can contribute $200,000 and still maintain a positive fund balance in Fund 450 through 2017. In theory, you could spend $400,000 and accomplish that outcome, but the fund balance will be drained to a very low level. It should also be noted that if we eliminate this project entirely, our remaining fund balance will stay the same as shown on the Current Budget sheet given the expense and revenues offset each other. One other factor that you can consider, but we won't have resolved in time to make this decision relates to Xcel's statement that they have included costs associated with looping another underground line on McMenemy closer to Viking Drive. Their representatives told us that this was required by code. Staff believes we should have them provide us with the cost added to the estimate to do this work and the "code" requirements that obligate us to pay for it. As was noted at the last meeting, the opportunity to bury the lines is occuning due to the significant work being done on Little Canada Road. If not done at this time, the opportunity to do so will likely not occur for about 20 years. Another question raised at the last meeting was how we would answer residents that say they are helping to pay for this cost and then want to know when their street will be done. I think two factors are important to note in considering this question. First, many newer streets (developed from the mid 80's on) would already have buried utilities. Secondly, the streets we are burying are major thoroughfares for our community. Staff would not advocate burying lines on all streets as a matter of policy. However, it does seem prudent to consider this action on Rice Street, Little Canada Road, and Edgerton Street because of their prominence in our community. One may also want to argue County Road C, LaBore Road, and others should be considered in this light. This is a tough decision and it does cost a lot of money. The decision comes down to weighing the cost versus the aesthetic improvement created by this action.