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1bkER011GHTM Report Number 09-048 Agenda Section VI -5 Council Meeting Date February 110, 2009 the city that works for you REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: CONSIDERATION OF FINAL PAYMENT TO XCEL ENERGY FOR OLD HIGHWAY 8 POWER LINE RELOCATION COSTS DEPARTMENT HEAD'S APPROVAL: CITY MANAGER'S APPROVAL: C No comments to supplement this report 0 I Comments attached Recommendation: To approve final paymYnt in the amount of $37,445.99 to Xcel Energy for relocating overhead power lines as a part of Project 07-3, Old Highway 8 NW Reconstruction. Legislative History: Project 07-3 consists of the reconstruction of Old Highway 8 NW from I-694 to the Long Lake Regional Park entrance. The City Council awarded a contract to North Pine Aggregate for this project on June 12, 2007. Prior to awarding this project, the Council passed Resolution 07-015 on February 27, 2007 which authorized Xcel Energy to underground overhead utilities along Old Highway 8 NW between I-694 and the Long Lake Regional Park Entrance. Financial Impact: Please see attached payment breakdown for Phase 2 payment details. The original cost estimate for this work was $210,418. Phase 1 Cost: $120,951 (CRFS) Phase 2 Cost: $37,446 (direct bill to project) Total Cost: $158,397 Explanation: On April 1, 2008 Xcel Energy enacted a citywide customer requested facility surcharge (ORFS) to pay for the first phase of this project. The City has always considered it desirable to place large aerial power lines underground on high traffic corridors and city gateways at the time the roadways are reconstructed. City Code, Section 7-126 provides: "The City Council finds that in order to promote and preserve the general welfare and assure the orderly development of the City, all existing overhead distribution systems of electrical and communication utilities and public streets shall be replaced in an orderly manner by installation of underground facilities along with the undergrounding of all attached facilities used for providing service to properties adjoining the public streets. (Ord. No. 479, 3-24-81; Code of 1988; Code of 2001)". Payment for this has typically been spread across all of Xcel Energy customers located in the City of New Brighton via the use of a CRFS. It is staff's opinion that the Old Highway 8 project should bear the cost of the Phase 2 power line relocation and not enact a second CRFS to be placed on resident's Xcel bills. This is because Phase 2 of the project required Xcel to transition the power lines from underground to overhead and it has been our practice to only surcharge the portion of costs that are related to undergrounding. Costs and Funding: This work will be charged against City Project 07-3 and funded from the project's contingency budget. J,) J/"� — G r A M. 1 Wyff.E. Director of Pub i Works Attachments – Xcel Energy Statement Phase 2 Location Map