City Council Minutes 2000 07 18 - Laserfiche WebLink

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Louisville City Council Meeting July 18, 2000 Page 11 Keany stated that he had asked City Administrator Simmons to look into a sales tax revenue bond to pay for burying the power lines. Simmons stated he reviewed sales tax revenues through the State Statutes and an increase of .225% in sales tax would raise approximately $644,000 on an annual basis. An $8.5 million dollar under-grounding project would require a thirty-year repayment obligation. Keany asked Diehl his estimate of the under-grounding of the power line. Diehl stated that his estimate was $9.7 million dollars and that PSCo's proposal for above-ground lines is for $1.3 million dollars. Diehl stated that the difference would be approximately $8.4 million dollars. Keany stated a sales tax, special improvement district or bonding issue would require an election. He noted that the next available election date is November of 2000, and asked if PSCo would be willing to wait until then. Diehl stated he believed it would be workable with PSCo. PSCo would evaluate the current system and keep it working until the City could have an election on the issue. Brown asked Diehl about the accuracy of the PSCo estimate on under-grounding the power lines. Diehl stated that the estimate is a general estimate, preliminary and conservative, without knowing many specifics. He noted that as the project proceeds the estimate would be further defined. Davidson asked Diehl what was the basis for the $9.7 million dollars estimate. Danny Pearson, PSCo, 550 15th Street, Denver, CO, stated that he is the engineer for the project. He stated that he prepared the estimate for burying the line through a three-mile section of the City of Louisville. He confirmed that it is a general estimate, not knowing the exact location of where the lines are to be buried. Pearson stated that the cost for conductors and cables was based on recent bids, and the trenching costs were based on a current project in Frisco, although the estimate was reduced due to a difference in rock type. Davidson asked Pearson if the land was surveyed prior to the estimate. Pearson stated that an existing survey was used. Davidson asked if PSCo has under-grounded lines in Boulder County. Pearson stated that a different type of line was under-grounded at IBM, which is in Boulder County. Davidson asked what alternatives PSCo considered with this project. Pearson stated that one alternative considered was building additional lines within the existing lines and right-of-way. 11