Agenda

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City Council Regular Meeting

Meeting Date:

04/02/2024

BACKGROUND

During the February 20, 2024 City Council Meeting, Resolution 24-R-24 was approved authorizing proceeding with the Main Street Improvement Project. One element of the Main Street Improvement Project is to relocate the existing overhead utilities underground. The Guadalupe Valley Electric Cooperative (GVEC) owns and maintains the power poles and overhead electrical facilities in the Main Street Corridor. In order to relocate these electrical facilities underground, the City must reimburse GVEC for the costs of the relocation.

GVEC has prepared a Utility Cooperative Agreement to relocate the electrical facilities underground. The estimated total cost of the relocation is $4,602,391.30. The agreement outlines payment of this amount in two payments, with the first being due in April 2024 in the amount of $939,635.30. This first payment is a "down payment" for the relocation and includes the relocation design effort. The second payment is due later and is expected to cover the construction costs for the relocation. A final payment is called for in the agreement that would be due at the end of construction if some of the materials and equipment were subject to price increases beyond the estimate.

Execution of the agreement will allow GVEC to finalize their design and begin procuring long lead time items (such as transformers) for the relocation. Having GVEC's design finalized will also allow our consultant to finalize the design of the other Main Street Improvements.

GOAL

Approve the Utility Cooperative Agreement with GVEC to provide for relocation of the overhead electrical facilities in the Main Street corridor underground.

COMMUNITY BENEFIT

Relocation of the overhead utilities in the Main Street corridor is one of the key elements of making the corridor more aesthetically pleasing and pedestrian friendly. With GVEC relocating their facilities underground, the existing power poles will be removed, requiring the other overhead utilities to also relocate underground. This will improve the aesthetics of the Main Street Corridor and allow pedestrians to use the full width of the sidewalks.

SUMMARY OF RECOMMENDED ACTION

To authorize the City Manager to execute the GVEC Utility Cooperative Agreement for the Main Street Improvements Project in substantially the same form as attached in Exhibit A of Resolution 24-R-30.

FISCAL IMPACT

Funding for the first payment due under the Utility Cooperative Agreement ($939,635.30) is available from existing Bond Sale proceeds and General Funds previously allocated to the project. Future payments will be funded by future Bond Sale proceeds for the project. The overall cost of the GVEC undergrounding is $4,602,391.30. This is really the first full step into implementing the nearly $25,000,000 Main Street Redevelopment effort.

RECOMMENDATION

Approval of Resolution 24-R-30.

Attachments
Resolution 24-R-30 with Attachment