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2017 IID - Utility Relocation Dune Palmstai atigrai — (;E.AI nJ /' [)F', -r — August 28, 2017 Mr. Robert A. Laurie Assistant General Counsel, Energy Imperial Irrigation District 81600 Avenue 58 La Quinta, CA 92253 Subject: Dune Palms Road Widening Improvement, City of La Quinta City Project Number 2009-04 Dear Mr. Laurie: This is in response to your letter dated August 14, 2017 pertaining to the electrical distribution relocation along Dune Palms Road north of the storm water channel. As you noted in your letter, the City is interested in moving the relocation efforts forward. For clarity, the concept for undergrounding the overhead line to facilitate relocation was originally proposed by Imperial Irrigation District electrical staff. The City's proposal to pay for the trenching, placement of conduit and structures, conduit encasement and backfill was based on the original concept provided by Carlos Partida of your staff. The City understands that the original provided drawing was a concept that required additional review and assessment before the development of the final drawings. Based on the costs provided in your letter, if we choose to proceed with the undergrounded relocation, the City would include the trenching, conduit and structure placement, conduit encasement and backfill into the contract work for the widening project in accordance with IID approved plans. Therefore, the cost for these items would not be included in an agreement between the City and IID. Therefore, per your letter, if the City chooses to proceed with IID's proposed undergrounding relocation, the City would be required to reimburse IID $141,000 for cabling, cut -overs for the system and removal of the overhead facility. The City requests verification that the above noted total includes all anticipated costs known at this time. Furthermore, in order to verify the quantities and estimated unit costs of the cost estimate, we request a breakdown of the noted costs. Last of all, the City will need clarification on whether the noted costs are final costs or if they are intended to be adjusted up or down based on actual material and installation costs. We agree to disagree on the issue of prior rights but welcome the opportunity to partner to keep this project moving forward. We look forward to your swift response to the above items so that we can continue to proceed with the relocation activities to ensure a timely completion of the City's road widening project. If you have any questions, please contact Ed Wimmer at (760) 777-7088. 441/6 r•�rw'1 ' rank J. S Interim Sincerely, nd Development Director/City Manager 78-495 Calle Tampico La Quinta, CA 92253 760.777.7000 DISTRICT 2 IID A ccnti wy of senfice. August 14, 2017 Edward J. Wimmer, P.E. Principal Engineer City of La Quinta 78495 Calle Tampico La Quinta, CA 92253 Via electronic mail to:ewimmer[a�la-quinta.orq Re: Dune Palms Road Widening Project Dear Mr. Wimmer: www.iid.com Since 1911 This letter is in response to earlier written communications by and between the City of La Quinta and the Imperial Irrigation District regarding the utility relocation element of the City's proposed Dune Palms Road widening project. In order to move the project along without getting bogged down in legal disputes regarding "prior rights" and the legal burden of bearing the relocation costs, the city has indicated an intent to share the expense of the relocation. IID staff has estimated the cost of a relocated overhead line would be approximately $145,000 while the estimated cost of undergrounding is estimated at $466,000 ($180,000 for conduit and infrastructure, $228,000 for the new distribution line and $58,000 for the removal of the current line). It is IID's protocol that the cost of the "betterment" that is, the relocation of an overhead line to underground, be borne by the requesting party. Please recall that IID claims prior rights as the poles pre-existed the City's incorporation. I am aware that the City disputes IID's claim. The goal here is to get the project done regardless of the legal arguments regarding prior rights. In light of the above, it is proposed that regardless of IID's claimed prior rights, IID will bear the cost of the overhead project provided the City bear the cost of the undergrounding differential ($466,000-145,000 = $321,000). If that would be satisfactory to you, action could be taken to formalize our understanding and allow the project to move forward in a timely manner. Thank you for your consideration. I am looking forward to hearing from you. Ve truly yours, Robert A. Laurie Assistant General Counsel, Energy IMPERIAL IRRIGATION DISTRICT GENERAL COUNSELS OFFICE • 333 E. BARIONI BLVD PO. BOX 937 • IMPERIAL, CA 92251 TELEPHONE (760) 339-9564 • FAX (760) 339 9062