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We have also attached the results of a community survey conducted last year to determine what other communities are doing in regards to Streetlight assessment. Electric Franchise Fee: Another proposal in Mr. Beets' memo was to consider utilizing an electric fianchise fee to fund the undergrounding of overhead utilities. We have had an opportunity to gather information regarding fianchise fees and wanted to share this information with you. State Statute 216B allows for municipalities to collect electric fianchise fees. Xcel Energy has developed an internal policy where up to 3% of a user's bill can be added on to be used by a municipality as they see fit. A 1% fee added to Xcel's utility bills would collect approximately $290,733 per year. If we were to maximize the fianchise fee rate to 3%, this would mean that we could collect up to $872,200 per year. A copy of Xcel Energy Franchise Fee Revenue Estimate, and a list of Minnesota cities currently implementing fianchise fee collection is attached. Utility Undergrounding Currently there are 142.6 miles of electrical lines within the City of Roseville. Of this 45% is already underground, leaving 78.43 miles overhead. We have interviewed a number of cities and utilities to try and determine a per mile cost to underground utilities. However, it is the unanimous opinion of the people that we spoke with that every street is different and the cost will vary based on the line type, and how many properties are served. Many utilities will not provide an estimate until extensive engineering has been completed to worlc out all of the costs for a segment of the distribution system. This extensive engineering would i�k� approximately 6 months per segment, and the costs associatedwith the engineeringwould be bome by the City of Roseville. In the interest of providing a dollar amount for discussion we decided to draw on information provided by Xcel on past proj ects. For the County Road C proj ect, Xcel Energy provided an estimate to the City for the undergrounding of some distribution lines. This estimate was $259,000 to bury about a half mile of electric lines with only a few services. This cost did not include the costs to bury telephone or cable lines. We were able to determine that the cost to bury individual electrical services is estimated to be between $700 and $3000 per property. Using these numbers we have tried to extrapolate a rough estimate of the cost per mile to bury all overhead utilities, electric, cable, and telephone including services. This cost would be approximately $750,000 to $1,000,000 per mile. Knowing this, we have estimated that it would talce between $59 and $79 million dollars to underground all overhead utilities. There also may be a need to acquire additional easement to site the buried equipment. These easement costs are not included in the estimated range. � Page 2