Tucson Electric Power (TEP) representative Joe Salkowski gave an overview of the proposed power line projects and stated that the purpose of the improvements was to relieve overloaded circuits in order to maintain reliable service now and into the future.
Mr. Salkowski discussed the following proposed plan to alleviate the electrical load:
-Upgrades to Rancho Vistoso Substation
-New transformer, switchgear, capacitor bank
-Three new circuits serving Oro Valley
-Reconfiguration of existing circuits
-$5.5 million budgeted cost
-New circuit links ("feeder ties")
-Oracle Road (Project A)
-Tangerine Road (Project B)
-Integrate with relocated feeder tie (Project C)
Mr. Salkowski outlined TEP's policy on installing power lines above ground versus below ground and discussed the following costs associated with each option:
-Overhead Construction
-Project A: $350,000
-Project B: $400,000
-Project C: $1.5M
-TEP pays all costs
-Underground Construction (Additional Costs for the Town)
-Project A: $650,000
-Project B: $700,000
-Project C: $1.5M*
*TEP would pay half of this proposed cost under proposed MOU, leaving the final total cost for the Town at $2.1M.
Discussion ensued regarding the placement of the power lines if the above ground option was chosen.
The following individuals spoke on item #1.
Mayor Hiremath clarified that the use of a franchise agreement to pay for the costs associated with undergrounding power lines was only one possible vehicle to fund the project and that its intent was to stimulate conversation regarding how the town would pay for the undergrounding if that option was chosen.
Town Manager Greg Caton stated that franchise agreements were commonly used throughout the state and the country to fund utility related projects and they ultimately needed voter approval to be enacted.