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REQUEST FFOR COUUNCIL ACCTION <br />Daate:7/16/12 <br />Iteem No.:12.b <br />Depaartment ApprrovalCitty Manager AApproval <br />Item Description: Authorrize the Cityy Attorney too File an Objjection to thee Rice St. <br />Interchhange Projecct Communitty Requestedd Facilities SSurchargewwith the <br />PublicUtilities Coommission <br />B <br />ACGROUND <br />KK <br />2 <br />TheCCities of Rosseville and LLittle Canadaa jointly requuested Xcel to undergrouund the overrhead <br />8 <br />electrric lines on RRice St. as a part of the RRamsey Couunty led interrchange projject which wwas <br />9 <br />consttructed in 20010-2011. The City of RRoseville choose to fund thhe undergrouunding throuugh the <br />10 <br />Publiic Utilities CCommission authorized CCommunity RRequestedFFacilities Surrcharge. The <br />11 <br />surchharge process allows for Xcel to set tthe final surccharge amouunt based onn their actuall <br />12 <br />consttruction costt plus carryinng charges. <br />13 <br />XcelEnergy provvided a preliiminary estimmate of $5744,300 to buryy the power lines from CCounty <br />15 <br />Roadd B to Countyy Road B-2. The final ccosts for the initial underrgroundingaas submittedd by Xcel <br />16 <br />were$714,025.IIn addition XXcel is claimming added ccosts for scoppe changes wwhich were iincurred <br />17 <br />due too having to rrelocate a poortion of the newly undeergroundedffacilities wheen it was dettermined <br />18 <br />theywwere in confflict with thee County connstruction.SStaff has recceived Countty project reccords <br />19 <br />that indicate Xcel’s contractoor did not loccate the neww facilities acccording to ttheir permit ffrom <br />20 <br />MnDDOT per the pproject planss and surveyy informationn provided too them by thhe project teaam. <br />21 <br />Stafffhas repeateddly requestedd Xcel’s doccumentation of this issuee that exonerrates their coontractor <br />19 <br />andhhave receivedd a responsee that they will not providde it. Xcel hhas stated ouur opportunity to <br />20 <br />challeenge the cossts per PUC rrules is to fille an objectiion within 600 days of thee notice of CCRFS <br />21 <br />impleementation. <br />22 <br />FI <br />INNCIAL MPCTS <br />AAAA <br />20 <br />Thepper residential customer cost at this ttime filed wiith the PUC is $0.75 perr month for tthree <br />24 <br />yearss. The originnal estimate prior to consstruction froom Xcel wass $0.44 per mmonth on a <br />25 <br />resideential custommer bill. Xcel is claiminng $115,514 of additionaal costs to thhe project forr scope <br />26 <br />changges which wwe are disputiing based onn the documeentation for the project. <br />27 <br />SR <br />TAFECOMMNDATION <br />FFEE <br />25 <br />Stafffrecommendds the City CCouncil authoorize the Cityy Attorney tto file an objjection with the <br />29 <br />Publiic Utilities CCommission as set forth tthe CRFS ruules challengging the finall costs basedd on <br />30 <br />project documenttation indicaating Xcels ccontractor beeing at fault for the addittional work tto <br />31 <br />correct the conflicts with the County’s prroject. <br />32 <br />RCA <br />EQESTED ONCIL CTIN <br />UUUUOO <br />30 <br />Motioon authorizinng the City AAttorney to ffile an objecction with the Public Utilities Commmission <br />31 <br />PPage 1 of 2 <br /> <br />