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ST9302-CS 940725 (2)ORiGi, L ml ~ELECTRIC Kirk A. King District Manager July 25, 1994 Mr. James Witt City Manager City of Coppell 255 Parkway Boulevard Coppell, Texas 75019 RE: Texas Utilities Electric Company (TU Electric) Electric Transmission Line Along Sandy Lake Road between Denton Tap and MacArthur Boulevard Dear Mr. Witt: Please allow this letter to serve as the statement of position of TU Electric regarding the proposed roadway improvements to a portion of Sandy Lake Road by the City of Coppell and the existing electric transmission line existing on private property pursuant to written recorded easements. It is our understanding that the City proposes to widen Sandy Lake Road from Denton Tap to MacArthur Boulevard and the roadway will be divided with a median. It is also our understanding that the pov;er line must be relocated in order to accommodate the widened roadway. Property rights for the placement of this power line are not governed by the street and alleyway provisions contained within the franchise agreement between the City of Coppell and TU Electric but rather were obtained from private property owners pursuant to written recorded easements. Accordingly, TU Electric is entitled to full reimbursement for all actual costs associated with relocating this transmission line and providing necessary right-of-way for the newly relocated line. Our engineers have informed me that the estimated cost to remove the existing power line is approximately $12,000 per mile and the cost to rebuild the transmission line would be an additional $112,000 per mile. These costs do not include the acquisition of replacement right-of-way which would also be the responsibility of the City. Distribution facilities will be relocated in accordance with the franchise agreement between the City of Coppell and TU Electric. FO WA ,?,D TO MAYOP AND COUNCIL Mr. James Witt July 25, 1994 Page 2 Based upon prior discussions with the City in years past, TU Electric is prepared to assume all costs associated with the removal of the existing line and placement of a new power line in the event the City will grant TU Electric a written easement to be located within the median of the newly constructed Sandy Lake Road. We will place a state of the art tubular steel pole power line in this right-of-way and pay all costs associated with removal of the old line and building the new line provided consent and written approval to proceed is received from the City. Distribution facilities will be relocated in accordance with the franchise agreement between the City of Coppell and TU Electric. Specific engineering details will be coordinated between TU Electric and the City of Coppell. It is our understanding that some citizens of Coppell would prefer the transmission line to be placed underground. Although the technology is available, the expense of such an undertaking is prohibitive. To this end, the anticipated costs for placing the transmission line and related distribution facilities underground along this two mile stretch of roadway between Denton Tap Road and MacArthur Boulevard is estimated to cost approximately $7,500,000 according to our engineers. It is our understanding that the entire improvement project for Sandy Lake Road is estimated to be roughly the same amount. Accordingly, in our opinion, an underground installation of this nature is not a viable option since it will essentially double the cost of the Sandy Lake Road improvements project. We remain flexible and would like to work with the City in every way possible to accomplish a mutually beneficial revision of the roadway and the power line and trust that we will all be able to work together to accomplish this purpose. Please do not hesitate to contact me if you have any questions in this regard. Yours ve~truly, . ,~ KAK:jrm