Misc. Engineering - Laserfiche WebLink

Home Browse Search

- 4 REQUEST FOR COUNCIL ACTION DATE: February 11, 2002 ITEM NO.: 7 Department Approval: Administrator Reviewed: Agenda Section: Name Gregory A. Gappa Public Services's Directors Report Title Director of Public Services Item Description: Approve Excel Energy Agreement to Bury Power Lines- Orono Ambar The Orono Ambar Senior Housing project includes a City TIF financed project to bury approximately 1,300 feet of high voltage overhead electric power lines along the Highway 12 and Brown Road project frontage. We have received a cost and project agreement from Excel Energy for completion of this work. The cost to complete this work will be $96,771. This project is expensive because these are high voltage lines which require special provisions for line insulation and heat transfer. The costs for this project will be repaid with TIF funds beginning in year 21 of the TIF agreement. A separate account has been established for this project to track expenses and revenues. There are no funds in this account, so completion of this project will require a loan from another source be placed into this account. Our recommendation is that a loan be obtained from the PIR fund for completion of this project, and that a 5% annual interest rate be charged for this loan. The Council previously approved an agreement,with Excel Energy,for the installation of decorative street lights on this project with a loan from the General fund to the TIF fund for this work. We are recommending that the loan for the streetlights be from the PIR fund instead of the General fund. This loan will also be at a 5% annual interest rate. Council Action Requested Approval of the attached agreement with Excel Energy,in the amount of$96,771 for burying of the overhead electric power lines for the Orono Ambar project. Approval of a loan from the PIR fund, in the amount of$96,771 with a 5% annual interest rate, to the TIF fund project account for burying overhead electric power lines for the Orono Ambar project. Loan to be repaid with proceeds from the project's TIF funds. Approval also includes the appropriate budget adjustment for the year 2002 PIR fund budget. Approval of a loan from the PIR fund, in the amount of$27,528 with a 5% annual interest rate, to the TIF fund project account for the installation of decorative street lights for the Orono Ambar project. Loan to be repaid with proceeds from the project's TIF funds. Approval also includes the appropriate budget adjustment for the year 2002 PIR fund budget. Page 1