Utility Committee Agenda and Packet 2021 05 11

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Policy for Utility Undergrounding Utilizing Xcel 1% Funds The following is the policy for use of 1 % Funds for undergrounding of aerial Xcel Energy power lines, in accordance with the 2008 Franchise Agreement. The intent of the policy is to identify and prioritize lines to be undergrounded as part of the five-year undergrounding plan (Five Year Plan). Potential projects will be prioritized in a manner that allows for efficient use of 1% funding and provides a real and tangible improvement to the public. Xcel Energy only allows the use of 1% funding if the project scope is a majority (51% or greater) within the right-of-way. Potential 1% Fund undergrounding projects will be prioritized based on the following factors. I. Cost Savings — Cost savings allows more lines to be undergrounded each year thus providing a greater benefit to the City. Potential cost saving measures shall include any means to supplement the total cost of undergrounding through a City project or third party, either for the undergrounding of overhead lines, or to offset costs associated with restoration of the infrastructure and/or landscaping. When evaluating potential cost savings, projects will be identified as either "PRIORITY A", "PRIORITY B" "PRIORITY C" or "PRIORITY D." • Projects that receive supplemental funding of fifty percent (50%) or more of the total project cost will be identified as "PRIORITY A." • Projects that receive supplemental funding between twenty percent (20%) and forty-nine percent (49%) of the total project cost will be identified as "PRIORITY B." • Projects receiving supplemental funding in an amount less than twenty percent (20%) of the total project cost will be identified as "PRIORITY C." • Projects that will be funded solely through the 1% Fund shall receive a rating of "PRIORITY D." A listing of potential cost saving opportunities is presented below. The list should not be considered as a complete list of possible outside funding sources, only a summary of the most likely cost saving opportunities. • Capital Improvement Projects — CIP projects include improvements constructed on City owned property or ROW, and shall include annual maintenance projects such as the Pavement Management Program and Concrete Replacement Program. • Partnering — Staff will identify potential joint projects and contact the adjacent municipality or jurisdiction to determine the feasibility of potential partnering opportunities. In the event that an adjacent municipality or jurisdiction expresses interest in a joint undergrounding project, staff will evaluate the opportunity and present it to City Council for further direction. PAj