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RESOLUTION NO. 14450
A RESOLUTION AUTHORIZING THE EXPENDITURE OF
$825,613 FROM THE UNDERGROUND FEES ESCROW
ACCOUNT FOR RELOCATING OVERHEAD ELECTRIC
FACILITIES UNDERGROUND WITHIN PUBLIC RIGHTS-OF-WAY
OF VISTA HILLS PARKWAY AND HOME OF HEROES PARKWAY
IN THE NORTH VISTA HIGHLANDS AND WALKING STICK
VISTA SUBDIVISIONS
WHEREAS, Article 11 of the Black Hills Franchise Agreement established an underground
fee to be collected from Black Hills customers and deposited into an escrow account for
undergrounding overhead electric facilities on public projects and improvements; and,
WHEREAS, the Project and use of the escrow funds is consistent with intent of the Black
Hills Franchise Agreement; NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
The Pueblo City Council authorizes the expenditure of funds in the amount of $825,613
from the Black Hills Underground Fee escrow account to pay for the relocation of overhead
electric facilities underground within the public rights-of-way of Vista Hills Parkway and the Home
of Heroes Parkway within the North Vista Highlands and Walking Stick Vista Subdivisions.
SECTION 2.
The officers and staff of the City are authorized and directed to perform any and all acts
consistent with this Resolution to implement the policies and procedures described herein.
SECTION 3.
This Resolution shall become effective immediately upon passage and approval.
INTRODUCED: August 10, 2020
BY: Ed Brown
MEMBER OF CITY COUNCIL
APPROVED:
PRESIDENT OF CITY COUNCIL
ATTESTED BY:
CITY CLERK
City Clerk’s Office Item # M-2
BACKGROUND PAPER FOR PROPOSED
RESOLUTION
COUNCIL MEETING DATE: August 10, 2020
TO: President Dennis E. Flores and Members of City Council
CC: Nicholas A. Gradisar, Mayor
VIA: Brenda Armijo, City Clerk
FROM: Scott Hobson, Acting Director of Planning and Community Development
SUBJECT: A RESOLUTION AUTHORIZING THE EXPENDITURE OF $825,613 FROM THE
UNDERGROUND FEES ESCROW ACCOUNT FOR RELOCATING OVERHEAD
ELECTRIC FACILITIES UNDERGROUND WITHIN PUBLIC RIGHTS-OF-WAY
OF VISTA HILLS PARKWAY AND HOME OF HEROES PARKWAY IN THE
NORTH VISTA HIGHLANDS AND WALKING STICK VISTA SUBDIVISIONS
SUMMARY:
This Resolution authorizes the expenditure of escrow funds up to the amount of $825,613 from
Black Hills / Colorado Electric Company, L.P. (“Black Hills”) Underground Fee to relocate
overhead electric facilities underground within the public rights-of-way of Vista Hills Parkway and
the Home of Heroes Parkway within the North Vista Highlands and Walking Stick Vista
Subdivisions.
PREVIOUS COUNCIL ACTION:
None.
BACKGROUND:
Article 11 of the Black Hills Franchise Agreement established an underground fee to be collected
from Black Hills customers. The fee is deposited into an escrow account for undergrounding
overhead electric facilities on public projects and improvements. An analysis was completed of
the future residential areas that have been annexed into the City, although the property has not
been subdivided for development. There are three undeveloped residential areas that have
existing overhead electric powerlines which under the City regulations are required to be placed
underground. A map of these areas is included as an attachment to this Resolution. The City
Law Department has concurred that the use of the funds in this manner is in compliance with
Article 11 of the Black Hills Franchise Agreement.
This Resolution would authorize $825,613 from the Black Hills Underground Fee escrow account
to relocate overhead electric facilities underground within the public rights-of-way of Vista Hills
Parkway and the Home of Heroes Parkway in the North Vista Highlands and Walking Stick Vista
subdivisions. A map of these areas and the cost estimate for Phases 1, 2, 3 and completed by
Black Hills is included as an attachment to this Resolution. Based on the analysis, these
residential development areas would incur hundreds of thousands of dollars in costs to bury these
existing overhead lines. These costs would not be able to be reasonably recovered by the
developers through the sale of developable subdivided lots. Many of the properties have
remained unsubdivided and undeveloped for 15+ years. If these funds are approved to be used
to pay the cost of burying these existing lines, it will be a way to activate new residential
development within the City.
FINANCIAL IMPLICATIONS:
Funds in the amount of $825,613 are available in the Black Hills Underground Fee escrow fund.
These funds will be reimbursed to Black Hills from the escrow account upon the completion of
work based on the cost proposal provided for the Project. The underground fund collected through
the City’s franchise agreement with Black Hills had a balance of $4,073,131 dollars as of May 31,
2020.
BOARD/COMMISSION RECOMMENDATION:
None.
STAKEHOLDER PROCESS:
The use of the Black Hills underground fees has been reviewed by the Pueblo Homebuilders
Association and the Committee on Community Development, who are in support of the use of the
funds to reduce the overall development of new residential subdivisions within the City of Pueblo.
ALTERNATIVES:
If this Resolution is not approved, the cost of burying the overhead electrical utility lines will be
paid upfront by the developers and added to the cost of the residential lots. Another alternative
would be to grant waivers to the developers to not be required to underground the overhead
electric utility lines. This would not be feasible along the eastern portion of Vison Hills Parkway
since the existing overhead lines are in the dedicated alignment of the future road. In the other
areas, the granting of waivers would be significantly contrary to the City’s requirements of having
overhead electrical lines place underground within new residential subdivisions.
RECOMMENDATIONS:
Approve the Resolution.
Attachments: Proposed Resolution
Map of Annexation, But Not Subdivided Areas Containing Overhead
Electric Powerlines
Map of Overhead Utility Lines Proposed to be Placed Underground
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