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Undergrounding <br />Discussion <br />Page 2 of 2 <br />the overhead telephone and Comcast lines would be buried as well. Those costs would be the <br />responsibility of the individual utility companies. <br />1. Financing <br />A summary of the financing options for this work: <br />a. CRFS (Community Requested Facility Surcharge) <br />One option is to use the surcharge process allowed by the Minnesota Public Utilities <br />Commission (MPUC) for the costs. Xcel has a surcharge option available for <br />undergrounding projects where each rate payer of the city would have a surcharge <br />added to their electric bill based on a formula to finance the cost of the work over a <br />three -year period. <br />b. Assessments <br />According to state statute, the only way to assess for the costs to underground the <br />utilities would be if the City received a 100% petition from the property owners to be <br />assessed. <br />c. Other City Funds <br />Currently there are not any City funds available. <br />2. Other Costs <br />In addition to the costs to underground the lines there are other costs associated with this <br />proposed work. <br />a. Property owner services <br />With underground lines, any property owner that currently has an overhead service <br />to their home would have to pay a $340 fee and $6.50/ foot to have their house <br />service buried. Additional costs may be incurred modifying the electrical service <br />connection at the structure. This cost cannot be added to the CRFS. There would <br />also be an additional $2/ month charge for an underground service. There are 2 <br />homes on Dale Street with overhead services from the lines proposed to be <br />undergrounded. <br />b. Streetlights <br />Currently all of the streetlights on Dale Street are served by the overhead power. <br />These streetlights would need to be replaced, City Streetlight policy is to assess <br />100% of the cost of installing streetlights in underground service areas. The cost is <br />estimated at $25,000 to install new streetlights at the 4 intersections on Dale Street. <br />3. Recommendation <br />Staff recommends that the discussion regarding the undergrounding of utilities be separated <br />from the reconstruction project discussion. Property owners have expressed strong support <br />and strong opposition to the undergrounding of utilities. There is no clear consensus. <br />D. Other Considerations <br />The following properties, structures or landscape features are unique to this project and deserve <br />special consideration: <br />1. Ramsey Square Condominiums <br />Project P- ST- SW- W -11 -02 Feasibility Report <br />Dale Street Reconstruction <br />22 <br />