1986-06-10 (2) - Laserfiche WebLink

Home Browse Search

I I I Council Meeting Minutes June 10, 1986 Public Hearings, continued Motion by Benke, seconded by Brandt, to WAIVE THE READING AND ADOPT A RESOLUTION APPROVING BANNING PARKING. 4 Ayes - 0 Nayes, Motion Carried Leonard stated that in September Ramsey County will come back with preliminary plans for the south portion of the project; and suggested if council has any direction with regard to the plan, they advise the County as soon as possible. Benke stated the items of concern were whether or not the City wants to underground the utilities and, if so, how it would be paid for (undergrounding the main circuits and the cost of modifying the in-house electrical connections). Under consider- ation for undergrounding would be community-wide aesthetics and safety. With regard to financing, the two options are that the city could establish a franchise fee (a portion of utility bills would be assessed), or treat it as any other capital improvement project (sell bonds as part of our annual debt levy on property tax bill city wide). Proper reviewed a rough estimate from Northern States Power for the cost to underground power lines along Long Lake Road ($660,000); cost of residential service connections to the homes not currently on an underground system (60 homes from 1-694 to County Road H for $300-$500 each). Proper indicated further there is a $2.00 per month charge for underground service for the initial cost of putting the wires into the homes and the additional operational maintenance costs. Proper indicated that the two-and-one-quarter-percent (2-1/4%) franchise fee would generate, in about five years, the money required to underground the system along Long Lake Road. Brandt asked what the 2-1/4% of $6 million for five years would mean to the average consumer in New Brighton. Jerry Wallace, Manager of Consumer Community Service for Northern States Power, addressed the franchise fee: stated NSP was opposed to a franchise fee for New Brighton or for any other community because the fee ($1.06) goes on the electric bill and the consumer thinks the rates have been raised; and didn't feel it is necessary to pay high cost for undergrounding line. Wallace stated, too, that NSP will go along with council's decision. Alex Pritchard, NSP engineer, showed diagram of existing system; reviewed the disadvantages of underground utilities (repair of cable failure is costly, five times greater than to install the facility originally if you are dealing with a lot of obstructions) Page Eleven Underground Util ities