As you know, the project as proposed along Bee Cave Parkway, begins just west of the Central Park entrance and continues to just west of the Tordera Drive entrance to the Ladera subdivision. The total estimated cost for above ground lines as AE has proposed is ~$675K.  The total estimated cost for underground is ~$2.0M.  Of the total estimated underground cost, the City of Bee Cave portion would be $1.325M.  

At our meeting December 12th, we discussed the project in three sections; the cost estimates for burying the lines underground were provided by Austin Energy. 

Section 1. From Tordera Drive to the hill cut (fronting the Ladera neighborhood):  ~$670K.  

Section 2. The length of the hill cut:  ~$675K. (Note,  AE determined, regardless of the selected design for the rest of the project, above ground is not an option in this section for safety reasons) 

Section 3. Immediately east of the hill cut to the entrance of Central Park:  ~$655K.  

Austin Energy has advised we have until March 1st, 2018 to determine our preferred option and there appears to be four (4) options to consider listed not necessarily in order of preference:

1.  Allow the overhead line at $0 cost to the City.  (Includes Section 2 being buried)

2.  Underground Section 1, only, (fronting Ladera) at $670K cost to the City.

3.  Underground Section 3, only, at $655K cost to the City. 

4.  Underground Sections 1, 2, and 3, at $1.325M cost to the City.  

We do receive ~$325K/fiscal year in franchise fee revenue from Austin Energy which could be used to offset the cost of the underground options if determined to be the preference.  We have also been offered contributions prior and with our ordinance requirements, may receive future contributions.  We will require - and AE agrees - an inter-local agreement regardless of the preferred option. The inter-local agreement could also specify payment plan options that might allow the cost to be paid back over time (to be negotiated).