CITY COUNCIL COMMUNICATION AGENDA ITEM 7C

SUBJECT: DISCUSSION/DIRECTION – UTILITY LINE PRIORITIES & USE OF XCEL 1% FUND

DATE: FEBRUARY 2, 2021

PRESENTED BY: EMILY HOGAN, ASSISTANT CITY MANAGER FOR COMMUNICATIONS AND SPECIAL PROJECTS MEGAN PIERCE, DIRECTOR OF ECONOMIC VITALITY MEGAN DAVIS, DEPUTY CITY MANAGER HEATHER BALSER, CITY MANAGER

BACKGROUND: In 2017 staff developed a map of overhead utility lines throughout the city to identify potential projects for use of the Xcel 1% undergrounding fund. The City’s franchise agreement with Xcel requires that the company budget and allocate 1% of the preceding year’s electric gross revenues for Louisville to bury existing overhead facilities underground.

As of June 30, 2020, the 1% fund has a balance of $2,355,073 and a 3-year borrow ahead amount of $588,165, which totals $2,943,238 that is available for undergrounding projects that meet Xcel’s criteria.

To use the 1% fund, the City must select projects with distribution or feeder utility lines (low or medium power) that are located in the right-of-way and are at least 750 feet in length. Additional equipment like cannot be buried as that technology does not currently exist.

Following review of potential projects, the Utility Committee recommended that the City use the 1% fund for a project that would improve service reliability. Xcel identified the following top priorities to improve service reliability:

 West side of State Highway 42 and west on Griffith to tie into new underground lines serving the development north of Miners Field  Spruce going west and line going north in alley between Lincoln and Garfield  Alley adjacent to Community Park and going north on Roosevelt to new underground lines near Pine

SH42/GRIFFITH PROJECT: As part of the Capital Improvement Program for the 2019 budget, funding was approved to bury lines at SH42/Griffith ($510,000 from 1% fund and $170,000 of LRC funds). The City contacted Xcel to request a construction estimate. After contacting Comcast and CenturyLink for a similar estimate, the City placed the project on hold as it had not

CITY COUNCIL COMMUNICATION

SUBJECT: UTILITY UNDERGROUNDING

DATE: FEBRUARY 2, 2021 PAGE 2 OF 5

budgeted funds to cover Comcast’s lines. It was assumed that Comcast would be responsible for this cost per the Franchise Agreement but this was challenged by Comcast.

In 2020, the City decided to move forward and request additional LRC funds to cover the additional expense. The budget shortfall was ultimately resolved as it was argued that the City did not have funds budgeted to cover the entire cost to bury all telecommunications lines and Comcast would have to cover a portion of the expense.

The City requested a formal construction bid from Xcel, which was received on September 3, 2020. The final cost estimate came back at $968,200, which does not include the additional expense to bury the telecommunications lines (approx. $200,000). When the City asked for an initial estimate in 2019, Xcel quoted around $500,000.

If the City decides not to move forward with the SH42/Griffith project, $12,000 will be deducted from the 1% fund for preliminary field work and some charges for traffic and preliminary plan profile work.

Before moving forward with construction at SH42/Griffith, the City asked Xcel to look at the top priorities for service reliability it had previously identified to confirm that the top projects had not changed in the past few years. Xcel identified three new projects based on the number of customers served, age of the lines and recent outages. These include:

 Feeder line along South Boulder Road near King Soopers  Feeder line along SH42 from Griffith to SH42 curve to the east  Feeder line along McCaslin going south from South Boulder Road

When asked why SH42/Griffith was no longer a top priority, Xcel stated that upgrades had been completed in the area since 2017. Additionally, Xcel reviews its service map and outage data on an annual basis and develops an upgrade plan to address service reliability issues. Per Xcel, most communities use the 1% fund to address aesthetics rather than service reliability.

As SH42/Griffith is no longer a top priority for service reliability per Xcel and these priorities seem to change regularly, staff does not recommend moving forward with this project. There is also the issue of the SH42 corridor and future improvements that could affect utilities. Utilities may need to be relocated and/or widening of the road could result in undergrounding at Xcel’s expense.

A new project (809 Main) was also introduced as a potential priority in 2020.

809 MAIN PROJECT: The alley right-of-way between Main and Lafarge and between Walnut and Pine is at the edge of commercial development and residential neighborhoods. It is one of the

CITY COUNCIL COMMUNICATION

SUBJECT: UTILITY UNDERGROUNDING

DATE: FEBRUARY 2, 2021 PAGE 3 OF 5

only locations in downtown Louisville with a significant amount of commercial properties being serviced by overhead lines, including elevated transformers; and, the alley has a number of non-conforming elements within the right-of-way from adjacent properties.

The proposed project at 809 Main is affected by the electrical poles at the corner of the property, as well as at the south entrance to the alley off Spruce. The utility poles, overhead power lines and irregular boundaries along the west side of the alley create challenges to the operation of the commercial businesses along Main Street.

With the removal of the utility poles and overhead lines, as well as a cleaning up of the alley surfacing and boundaries, support traffic for businesses can be accommodated more easily reducing the risk of utility and property damage. In addition, the undergrounding of utilities will bring this area of downtown into further compliance with the Downtown Design Guidelines.

Xcel provided an initial estimate for this work between $350,000 and $600,000 with an additional $55,000 for CenturyLink lines and $120,000 for Comcast lines. Staff recommends including a substantial contingency based on past issues with Xcel estimates.

Staff recommends continuing to look into the project at 809 Main as there are potential benefits related to economic development, service reliability and aesthetics. There may also be an opportunity for partial funding from the LRC.

UNDERGROUNDING POLICY: Staff suggests that Council consider an undergrounding policy to help determine the use of the 1% fund for future projects. If a policy was adopted, staff could prioritize projects as they are identified and bring forward construction contracts with Xcel to City Council for approval.

Potential criteria for prioritization could include:

 Public safety – reduces or resolves safety issues through undergrounding of overhead power lines (i.e. roadway safety, pedestrian/bicycle safety).  City projects – supports City-initiated projects (i.e. roadways, parks, recreation, open space, facilities).  Cost savings – allows more lines to be buried each year by realizing cost savings and providing a greater benefit to the City (i.e. partnering opportunities, resident contribution, Xcel system upgrades).  Economic development/redevelopment – supports economic development or redevelopment efforts within the city.  Public benefit – supports private development when substantial benefit occurs to the public (i.e. number of homes served).

CITY COUNCIL COMMUNICATION

SUBJECT: UTILITY UNDERGROUNDING

DATE: FEBRUARY 2, 2021 PAGE 4 OF 5

 Aesthetics – improves visual appearance of community by reducing of overhead wires.

Undergrounding policies from other communities like Greenwood Village and Lakewood are attached for comparison. The City of Lone Tree does not have a formal policy but their strategy has been to focus on locations where it is unlikely that someone else will bury the utilities (i.e. developer) in a new or redeveloped site.

DISCUSSION/DIRECTION: Staff is seeking input from Council on the following:  SH42/Griffith project – should the City cancel this project since it is no longer a top priority for service reliability per Xcel?  809 Main – should the City move forward with this project? Next steps include following up with owner to confirm interest/timing, soliciting input from LRC regarding cost sharing, requesting construction bid from Xcel, etc.  Undergrounding policy – does Council agree with the criteria outlined above? If so, staff can bring back a resolution formally adopting the policy and guiding prioritization of future projects.

FISCAL IMPACT: The fiscal impact will depend on the project(s) that Council directs staff to pursue.

PROGRAM/SUB-PROGRAM IMPACT: One of the objectives of the Streetscapes Sub-Program is creating safe, visually appealing and inviting streets, sidewalks and publically-owned areas adjacent to streets and sidewalks. Improving streetscapes by burying overhead facilities helps to accomplish this goal.

ATTACHMENT(S): 1. Overheard Utilities Map 2. Undergrounding Projects 3. 2017 Xcel Letter 4. 2020 Xcel Map 5. 809 Main Map 6. Greenwood Village 1% Fund Policy 7. Lakewood 1% Fund Policy

STRATEGIC PLAN IMPACT:

Financial Stewardship & ☒ ☐ Reliable Core Services Asset Management

☐ Vibrant Economic ☐ Quality Programs & Climate Amenities

CITY COUNCIL COMMUNICATION

SUBJECT: UTILITY UNDERGROUNDING

DATE: FEBRUARY 2, 2021 PAGE 5 OF 5

☐ Engaged Community ☐ Healthy Workforce

☐ Supportive Technology ☐ Collaborative Regional Partner

CITY COUNCIL COMMUNICATION ,,----- _/

' --= tt:/,-=:;;,1�= =c:i

------.,,-;,□COPELAND \_ NORTH WATER TREATMENT PLANT 1-�/ - ) LOUISVILLE *:L / RESERVOIR '' LEGEND ,J 711,= LINE TYPE (ELECTRIC) TOTAL LENGTH APPROX (LF) COST/LINEAR FOOT L ee cel for average/comparison ---1-,- DISTRIBUTION 44,900 S X ,/ '',, ee cel for average/comparison It> FEEDER 11,800 S X I __ ./ (��� ee cel for average/comparison 1 23,200 S X r���,�,--�,-- -,: ___ �--II I £Erk l' DISTRIBUTION ee cel for average/comparison 2,300 S X (DEVELOPMENT) = I JLi J� _j ,-- - II 'I -:::::----_,, C:::.-==--==--=---1 -.,,_ CITY LIMITS _.,_' II

400' 800' ! I ', I '�' \ .1 SCALE ) 1"=800' I \\,, HARPER LAKE � _.. :/tJ ( ' II it / I ,I L ,WASTEWATER ("; , T8EATM ENT PLANT =( ) /�--=.-· . \1, • \ /)·\,..,, C _(, T =---, _ I --__ --_.:-;._c:-0 -- "- -...... ::-,, (' �,,:._ ·<.L > -<� � --­ "ii I __.:- ;;�;;> ------" 1 - - / ; II I /;,:< __) '-;:: � �?\ ,,.,.� \�� g I DOWNTOWN �' ii BUSINESS ) -_ LOUISVILLE � DISTRICT 8 ELEMENTARY� SCHOOL :1

DAVIDSON MESA J JI \--�= =:;.'/' _ r > l - -- 1/\�t-�J�if::�::]y'-' \.:'__....-- -,,_.,, - I • �r/ ;\ --.-> -'11 11 I 1 - = II I - II ,-- --1\ , 1 .,,11 ,:==;;===•·•.\ /., t�:<-' i 11 i I

I ' '' _ 1 l 1 L r ( I _J r

// J II \\ I I_ -=-j.\ ,/ I I DEVELOPMENT I CREEK \\ � OlJTSIDECITY GOLF COURSE LIMIITS •·"( 11 E ICE DILLON RD. s �� sj � _ )Joo- [ __JI __ ,,-- V __ $�,::.II�-�= _ - � / j ''( �T

I # Location Utilities (Linear Feet) 1 S Boulder Rd 3,400 Xcel feeder

2 SH 42, Hecla Way to Baseline, both 1,800 Xcel distribution sides 2,500 Xcel high voltage (cannot use 1% fund on)

3 Davidson Mesa 4,700 Xcel high voltage (cannot use 1% fund on)

4 Power Line Trail 9,000 Xcel high voltage (cannot use 1% fund on) 5 McCaslin Blvd, north of Washington, 3,000 Xcel feeder west side 800 Xcel distribution 800 CenturyLink 800 Comcast

6 Downtown (does not include 33,000 Xcel distribution Downtown Business District) 33,000 CenturyLink 33,000 Comcast

7 Lois/Aline/Barbara/Rose 2,350 Xcel distribution 2,350 CenturyLink 2,350 Comcast 8 Rex St/Roosevelt Ave 3,100 Xcel distribution 3,100 CenturyLink 3,100 Comcast 9 SH 42/Pine Intersection 1,000 Xcel feeder 1,500 Xcel distribution 1,000 CenturyLink 1,000 Comcast 10 SH 42, Cannon Cir to Pine, east side 3,000 Xcel feeder 1,000 CenturyLink 1,000 Comcast

11 SH 42, Cannon Cir to Pine, west side 1,700 Xcel distribution 1,700 CenturyLink 1,700 Comcast

12 East St, Lock to Pine 1,700 Xcel feeder 1,700 CenturyLink 1,700 Comcast

* Projects are not listed in any particular order **2020 Construction Estimate per Xcel: Distribution lines - $400-$420 per linear foot Feeder lines - $420-$520 per linear foot High voltage lines - $1,950 per linear foot (not eligible for 1% fund) CenturyLink lines – $50 per linear foot Comcast lines – $70 per linear foot ***Xcel recommends that similar projects be compared for construction estimate rather than ballpark figures listed above

Date 2655 North 63rd St. July 5, 2017 Transmitted by email Boulder, CO 80301

Emily Kropf Assistant to the City Manager City of Louisville

Re: Xcel Energy conversion of overhead facilities to underground

Dear Emily:

As requested, Xcel Energy is providing the following three recommendations for converting overhead power lines to underground as part of our Underground Conversion Fund commitment to the City of Louisville. The primary considerations for these recommendations relate to reliability and system resilience and do not necessarily address the city’s goals for aesthetic improvements. Generally, undergrounding legacy overhead power lines will immediately increase the reliability of that circuit, both because it is brand new material, and because the lines will no longer be subject to the hazards associated with overhead construction, namely trees, animals and weather.

But, additionally, we expect to realize significant improvements to service due to the increased capacity of the new power lines. In a sense, these “larger” lines would permit more energy to be carried so that, during outages, our personnel would have greater flexibility in switching around power interruptions, thereby restoring power to customers more quickly.

Recommendations:

1. Bury the line on the west side of Hwy 42 and going west on Griffin St. to tie to the new underground lines serving the new development north of Miners Field 2. Bury line on Spruce St. going west and then the line going north in the alley between Lincoln and Garfield 3. Bury the alley adjacent to Community Park and the line going north on Roosevelt up to the underground near Pine St.

Finally, we have updated Louisville’s Underground Conversion Fund as of the end of Q1, 2017. The amounts are as follows:

Funds accrued: $1,765,330 Three-year borrow-ahead: $990,444 Total available: $2,755,774

I hope this information helps the city determine its strategy for power line conversion. As always, we remain very eager to help Louisville make these decisions and look forward to working with you.

Sincerely,

Area Manager [email protected]

P.O. Box 840-BSC | Denver, CO 80201 | xcelenergy.com | © 2007 Xcel Energy Inc. Xcel Energy is a registered trademark of Xcel Energy Inc. | Public Service Company of Colorado d/b/a Xcel Energy

City of Louisville Undergrounding of Overhead Lines

Please refer to the City of Louisville March, 2017, Overhead Dry Utility Plan Map.

1. The following lines would provide the maximum reliability if undergrounded based on number of customers served: Feeder shown in green on So. Boulder Rd near the King Soopers (Line 1), feeder on Hwy 42 from Griffin to SH 42 curve to the East (Line 10), feeder on McCaslin going south from So Boulder RD (Line 5). 2. Suggested lines to be undergrounded in this order: Feeder on Hwy 42 from Griffin to SH 42 curve to east (Line 10), feeder on McCaslin going south from So Boulder Rd (Line 5), and feeder on So Boulder Rd near the King Soopers (Line 1). 3. Capacity Planning does not have any current plans to underground or re-route any of these feeder lines.

WALNUT ST E

T V

S A

T E

N G

O

R A

R

E

F F

V

A

L

A

N

O

S

R

T

E

S

F

F N

E SPRUCE ST I

J

A M

Estimate for Underground in Alley

/ PINE ST

Greenwood Village

1% Fund Utility Undergrounding Policy

Prepared by Public Works

May 6, 2019 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.

- 1- • Resident Contribution (LID, etc.) – Staff will not actively pursue partnering opportunities through resident contributions, but will support resident participation in undergrounding projects through the formation of Local Improvement Districts.

• Xcel system upgrades – In the event of an Xcel system upgrade in an area considered for potential undergrounding, the cost benefit will be evaluated and presented to Council for approval.

II. Safety –Projects will be evaluated on the increase in overall public safety due to undergrounding of the aerial lines. Safety issues that can be reduced or resolved through undergrounding of aerial power lines will be evaluated through the criteria listed below.

• Roadway Safety – Exposure of an existing aerial facility to potential damage caused by a vehicular collision. Exposure to damage by vehicular traffic shall be evaluated based on the proximity of the lines to the roadway, and the traffic volume of the roadway.

o When aerial facilities are located within the Clear Zone of the roadway, as defined by the most recent edition of the Roadway Design Guide, and contain an average daily traffic (ADT) equal to or in excess of 6,000 vehicles per day (VPD), the Roadway Safety shall be identified as a “PRIORITY A.”

o For locations where the aerial facilities are located in the Clear Zone, but the ADT is below 6,000, the Roadway Safety shall be identified as a “PRIORITY B.”

o If the aerial lines are not located in the Clear Zone, the Roadway Safety shall be identified as a “PRIORITY C.”

o If any of the above criteria are met but the undergrounding of the lines requires an increase in poles, the Roadway Safety shall be identified as “PRIORITY D.”

• Pedestrian Safety – Bicycle and pedestrian exposure to harm in the event that an is damaged by a vehicular collision, force of nature, or other unknown cause of damage. Bicycle and pedestrian exposure is rated in the following manner:

o Lines located adjacent to, or crossing a Safe Route to School or lines located immediately adjacent to a school bus stop shall have a Pedestrian Safety classification of “PRIORITY A.”

o Lines located adjacent to a Regional Trail shall have a Pedestrian Safety classification of “PRIORITY B.”

o All other lines that are adjacent to or crossing pedestrian facilities shall have a

- 2- Pedestrian Safety classification of “PRIORITY C.”

o Lines that are not adjacent to or crossing pedestrian facilities shall have a Pedestrian Safety classification of “PRIORITY D.”

o If any of the above criteria are met but the undergrounding of the lines requires an increase in poles, the Pedestrian Safety shall be identified as “PRIORITY D.”

III. Complexity of Construction – Projects will be evaluated on how complex the construction is to complete. A significant factor that contributes to complexity of construction is how many private properties are potentially impacted. This is because as the conversion of overhead feeds and easements for Xcel equipment are be required to complete the project, the project becomes more complex. Complexity of a project will be determined through the criteria listed below.

• Projects that have no impacts to private property will be identified as “PRIORITY A.”

• Projects with a ratio of greater than 0 but less than 6 impacts per 1,000 feet of line undergrounded will be identified as a “PRIORITY B.

• Projects with a ratio equal to or greater than 6 but less than 10 impacts per 1,000 feet of line undergrounded will be identified as a “PRIORITY C.”

• Projects with a ratio of 10 or greater impacts per 1,000 feet of line undergrounded will be identified as a “PRIORITY D.”

IV. Number of Homes Served –In the event that after evaluating Cost Savings, Safety, and Complexity, two or more projects contain the same rating, priority will be given to the project that serves the most City residents.

Based on the factors listed above, potential undergrounding projects will be prioritized based on the following scoring system.

• “PRIORITY A” – 3 Points

• “PRIORITY B” – 2 Points

• “PRIORITY C” – 1 Point

• “PRIORITY D” – 0 Points

Each potential project will receive a cumulative score based on the point rating for Cost Savings, Roadway Safety, Pedestrian Safety, and Complexity of Construction. On a yearly basis, projects will be ranked by overall score, and the Five-Year Plan will incorporate all projects that can be

- 3- funded through the 1% Fund allocation, including the Three-Year Projection. In addition to the overall scoring criteria, the Five-Year Plan will be focused on residential neighborhoods in the public rights-of-way, and distributed equitably throughout the City. Projects in the Five Year Plan that will be partially funded through an outside funding source, i.e. those with a Cost Savings rating of “PRIORITY A”, “PRIORITY B”, or “PRIORITY C” will be scheduled for the anticipated year of the CIP and/or partnering opportunity.

For the remainder of the existing Franchise Agreement, all projects will be re-evaluated on a yearly basis and the Five-Year plan will be modified as necessary based on the current priority ratings. Staff will present the revised Five Year Plan to City Council for approval. City Council may consider other factors in determining the Five-Year Plan and the prioritization for use of Xcel 1% Funds in undergrounding overhead power lines.

This policy will be reviewed and revised if necessary as the City negotiates future franchise agreements.

- 4-