Correspondence - 4722 West Arm Road - 3/8/2022s�
SPRING PARK
On Lake 911innetonka
DATE: March 2, 2022
TO: Jim and Jo Crosby
4722WArm Road
Spring Park, MN 55384
FROM: James Brimeyer, Interim City Administrator
Mike Nielson, PE, City Engineer
SUBJECT: Underground Power, Small Utilities & Street Lights
Your response is requested by Friday March 11, 2022.
Memorandum
At the request of some of the property owners at the neighborhood meeting we have investigated
the cost to underground the overhead power and to install a separate street lighting system. The
city council has discussed this issue as it relates to this project and all future street reconstruction
projects, and they have determined that it is the long-term goal of the current council to
underground all overhead utilities. At this time the council has determined that all costs for
undergrounding the utilities will be borne by the city except for the meter socket installation on
private property and will not include an assessment to property owners for the cost to install the
main line and service line to the home if all the following conditions can be accomplished.
1. The property owner will be responsible for the cost to have their overhead power mast
removed and responsible for the cost to install a new meter socket that is compatible with
the underground power. The estimated cost for this work is $1,500. if 100% of the
property owners sign a waiver form agreeing to the assessment the project can move
forward without an assessment hearing.
2. The city will provide the funding for the undergrounding of utilities if the necessary
easements can be obtained on the south side of the road from the Hennepin County
Railroad Authority.
3. Any necessary easement on the north side of the road for the location of transformers and
small utility pedestals can be obtained from homeowners at no cost to the city.
Financing the Pro*ect: The council has determined that the cost to install the meter socket,
which is estimated to be $1,500 could be assessed to the property over a 5-year period with an
interest rate to be determined by the council which is estimated to be between 4% and 6% per
annum. Therefore, assuming a $1,500 cost assessment over a 5-year period at 5% interest, the
annual cost to the homeowner would be about S350 per year. The city will obtain quotes from
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4349 WARREN AVENUE, SPRING PARK, MINNESOTA 55384-9711 (952) 471-9051 FAX (952) 471-9160
WWW.CI.SPRING-PARK.MN.US
three licensed electricians to complete the meter change out and the actual cost will be used for
assessment purposes.
To avoid any interest charges, you may pay the full amount up front. If you wish to have the
cost to replace your meter socket assessed to your property, the city will need you to sign the
waiver form described above.
Xcel does have an additional charge for an underground service of $2.00/month which would be
added to your Xcel bill. If you currently have underground power, there would be no cost to
your property.
unI/we are in favor of undergrounding the overhead power and small utilities converted to an
erground system and installing a separate street lighting system with the understanding that
conditions 1-3 as noted above are necessary to complete the project. I/we wish to have the cost to
replace our meter socket (estimated at $1,500) assessed to our property and will sign the required
waiver form with the understanding that I may pay the full amount to convert the meter socket
upfront to avoid any interest charges in the future.
_ I/we are not interested in converting to an underground power system.
To move this project forward and avoid additional costs related to conducting a public
assessment hearing and calculating individual assessment benefit, we will need 100% of the
property owners with overhead power to sign the attached waiver form. If we do not
obtain agreement from 100% of the property owners, we will not be able to offer this
opportunity.
Please respond by March 1], 2022, as noted above. Please contact Mike Neilson at 763-307-
4812 with any questions. Signed forms can be mailed or delivered to City Hall (4349 Warren
Avenue, Spring Park, MN 55384) or emailed to jbrown(�sambatek.com This a great opportunity
to enhance the aesthetic appearance of your neighborhood at very little cost to the property
owners so please respond in a timely manner.
Name(s): C•'<u s P>
West Arm Road West Address: ;, zz 6-✓--57'hX"11 ley �
Phone: � - 9 r-� - 3 7 3 9
Email Address: 2c' z-1SY,2 7 Ga i L