public hearing agenda item # 4 agenda report summary

AGENDA REPORT SUMMARY

PUBLIC HEARING

Agenda Item # 4

Meeting Date: January 24, 2017

Subject: Ordinance No. 2017-430: Lincoln Park Underground Utility District

Prepared by: Dave Brees, Special Projects Manager Reviewed by: Susanna Chan, Public Works Director Approved by: Chris Jordan, City Manager

Attachment(s): 1. County of Santa Clara Rule 20A Fund Commitment Letter dated November 28, 20162. Lincoln Park Utility Undergrounding CD-010153. Ordinance No. 2017-4304. Pacific Gas & Electric Lincoln Park Rule 20A Estimate Letter dated September 16, 2016

Initiated by: City Council

Fiscal Impact: The project will utilize a combination of eligible Rule 20A tariff funding and Capital Improvement Project funds for its construction. An estimated $4,000,000 Rule 20A funds will be provided by the County of Santa Clara as a Term of Sale for the purchase of Lincoln Park (Attachment 1) and a yet to be determined amount of Capital Improvement Project funds for project expenses not eligible for Rule 20A funding.

Environmental Review: Categorically exempt per CEQA Section 15301 (b) Existing Facilities

Policy Question for Council Consideration: • Does Council continue its desire to establish an underground utility district for the purpose

of undergrounding the aerial distribution and communication utility lines located within andadjacent to Lincoln Park?

Summary: • Council approved the project concept as a term in the Purchase Agreement with the County

of Santa Clara for Lincoln Park in April 2016• 12kv electric lines, communication lines (AT&T and CableCom) and associated facilities

(poles, transformers, etc.) will be removed, however, the 60 kv high voltage transmissionlines and related support poles will remain

• Approximately 20 poles will be removed as part of the project and approximately 11 poleswill remain. The exact number of each will be determined once the project has beendesigned


January 24, 2017

• Five University Avenue properties will have utility services converted from overhead tounderground as part of the project

Staff Recommendation: Move to introduce and waive further reading of Ordinance No. 2017-430 establishing the Lincoln Park Underground Utility District encompassing both sides of University and Lincoln Avenues from West Edith Avenue to approximately Sherman Street.


January 24, 2017

Purpose Introduce and waive further reading of an ordinance establishing the Lincoln Park Underground Utility District encompassing both sides of University and Lincoln Avenues from West Edith Avenue to approximately Sherman Street.

Background At the April 26, 2016 meeting, City Council approved the purchase of Lincoln Park and creation of a new Rule 20A Underground District (District) to convert all eligible aerial facilities along with their associated support structures and equipment i.e. poles and cables to underground facilities. The proposed District encompasses both sides of University and Lincoln Avenues from West Edith Avenue to approximately Sherman Street. Council approved the creation of the Lincoln Park Utility Undergrounding CD-01015 as part of the FY 2016/17 budget process (Attachment 2).

Aerial electrical facilities eligible for Rule 20A funds are defined as distribution lines (12kv or less) and the associated equipment. Ineligible electrical facilities include transmission lines (60kv or higher). The initial project survey identified 20 distribution poles eligible for removal and 11 transmission poles remain at the completion of the project. The exact number of poles removed or retained will be determined as the project is designed.

The current wait period for Pacific Gas and Electric Company (PG&E) to complete Rule 20A projects is five to seven years. Staff is requesting Council consideration of the project now to initiate the submittal of the project as soon as possible to PG&E.

Discussion/Analysis PG&E requires cities to establish an underground utility district within the affected parcels prior to their involvement with a project. Staff has worked with PG&E to determine which parcels to be included in the proposed district. Twenty-eight properties were identified for the proposed district, five of which require the property to have its aerial utilities converted to underground. Services to the other twenty-three properties have previously been converted. Exhibit A of the proposed ordinance (Attachment 3) contains the parcel map showing the boundaries of the proposed utility district. Each affected property owner was notified by mail of the scheduled January 10, 2017 Public Hearing.

According to the terms, specifications, and conditions of the Rule 20A process all properties within its limits with current aerial utility service must be converted to underground services. The expense for all private property service conversion work, including but not limited to trenching, conduit and wire placement, new meter placement if required, minor structural restoration and landscaping, will be borne by the District utilizing Rule 20A program funds. The one exception is the removal of the existing weatherhead (the connection point where the electrical service wires currently connects to


January 24, 2017

the building). The proposed project schedule is to complete project design in 2019 and construction is planned for 2020.

The next step in the Rule 20A process is the adoption of an ordinance establishing the creation of an underground utility district encompassing both sides of University and Lincoln Avenues from West Edith Avenue to approximately Sherman Street. Attachment 3 is the proposed ordinance for Council’s consideration.

Fiscal Impact PG&E has provided an initial “rough ballpark” estimate for the project construction at $4 million. The majority of the project cost will be funded through the use of the County of Santa Clara’s Rule 20A allocation as a condition in the Purchase Agreement for Lincoln Park. PG&E will take the lead role in design and construction. Other utility companies such as AT&T and CableCom are responsible for undergrounding their own utilities and will coordinate with PG&E.

It is anticipated there will be additional project costs that will not be eligible for the use of Rule 20A funds and will need to be provided through the use of City Capital Improvement funds. Additional project costs may include utility box upgrades, unforeseen underground obstructions, contaminated soil remediation, etc. Actual construction estimates will be developed once the project’s preliminary design is complete. PG&E has provided a rough ballpark estimate for these costs to be approximately $300,000 to $400,000. These costs were not included as a condition in the Lincoln Park Purchase Agreement and will be the responsibility of the City. Once the project is in design and a construction date determined, staff will return to Council with a revised project estimate and a determination of the City’s additional project costs.

Options

1) Introduce and waive further reading of an ordinance establishing the Lincoln ParkUnderground Utility District encompassing both sides of University and Lincoln Avenuesfrom West Edith Avenue to approximately Sherman Street.

Advantages: Implements Council’s intentions as defined in the Purchase Agreement for Lincoln Park

Disadvantages: Requires the City to commit funds from the Capital Improvement Project fund

2) Do not adopt the Lincoln Park Utility Underground District ordinance

Advantages: Allows an estimated $300,000 to $400,000 of Capital Improvement Project funds to be utilized for other projects


January 24, 2017

Disadvantages: The City would forfeit an estimated $4,000,000 in Rule 20A utility undergrounding funds from the County of Santa Clara

Recommendation The staff recommends Option 1.

County of Santa Clara Roads and Airports Department

I o I Skyport Drive San Jose, California 95 1 1 0-1302 1-408-573-2400

November 28, 2016

Donna Pontrello Rule 20A Program Liaison Pacific Gas & Electric Company 210 Corona Road Petaluma, CA 94954

Dear Ms. Pontrello,

The City of Los Altos is proposing an undergrounding district located at Lincoln Park along University A venue between West Edith A venue and Palm A venue which includes appro�imately 4000 linear street footage, 200 service lateral footage (trenching from proper);}' line to the panel on each property), and 5 panel conversions.

This letter confirms the County of Santa Clara's authorization and commitment of the use of County Rule 20A funds for the Lincoln Park utility undergrounding project.

Regards,

fVlJM� Michael Murdter Director

Board of Supervisors: Mike Wasserman, Cindy Chavez, Dave Cortese, Ken Yeager, s. Joseph Simitian County Executive: Jeffrey v. Smith

7-007

ATTACHMENT 1

Community Development -- Infrastructure

CD-01015 Priority: Asset Preservation

Initial Funding Year: "

Planned Start Date: 2016/17 2016/17

Project Lead: D. Brees

Target Completion Date: 2021/22

Project Status: Expended as of March 31, 2016: Operating Budget Impact: Not Started

This project will underground the existing aerial electrical distribution and communication lines located within and adjacent to Lincoln Park from West Edith Avenue to Sherman Street. The project will be completed utilizing a combination of Santa Clara County Rule 20A funds, paid directly by PG&E, and the City's Capital Improvement Project fund. The City is responsible for costs associated with the formation of the underground utility district and otl1er site specific const uction costs not covered by Rule 20A funds. While the formation of the underground utility district will occur in fall 2016, PG&E estimates actual construction of the project will begin in fi e to seven years. The aerial transmission electrical lines located at the top of several poles are not eligible for use of Rule 20A funds and are not included in the scope of this project.

Prior 2016/17 Appropriations Budget

Project Estimates

Lincoln Park Utility 25,000

U ndetgrounding

Funding Sources

CIP 25,000

Total 25,000

2017 /18 2018/19 2019/20 2020/21 Planned Planned Planned Planned

200,000

200,000

200,000

Total

225,000

225,000

225,000

2016/17 to 2020/21 Adopted CIP Budget - 90 - Community Development ATTACHMENT 2

Ordinance No. 2017-430 1

ATTACHMENT 3

ORDINANCE NO. 2017-430

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LOS ALTOS FORMING THE LINCOLN PARK UNDERGROUND UTILITY DISTRICT

ENCOMPASSING BOTH SIDES OF UNIVERSTIY AND LINCOLN AVENUES FROM WEST EDITH AVENUE TO APPROXIMATELY SHERMAN STREET IN THE CITY OF LOS ALTOS; ORDERING THE REMOVAL OF CERTAIN

POLES, OVERHEAD WIRES, AND ASSOCIATED OVERHEAD STRUCTURES

WHEREAS, the City Council of the City of Los Altos hereby acknowledges that this action is categorically exempt from CEQA pursuant to Section 15302(d) of the Guidelines which exempts replacement or reconstruction of existing structures or facilities with new structures located on the same site as the structure to be replaced and has substantially the same purpose and capacity; and

WHEREAS, the City Council of the City of Los Altos (“City”) wishes to form an underground utility district; and

WHEREAS, the California Public Utilities Commission (CPUC) has authorized electric and telecommunication utilities to convert overhead utility lines and facilities to underground pursuant to Electric Rule 20 and Telecommunication Rule 32 (“Rules”); and

WHEREAS, these Rules require that an underground utility district be formed encompassing both sides of the street, and the City has chosen to underground University and Lincoln Avenues from West Edith Avenue to approximately Sherman Street; and

WHEREAS, Ordinance No. 67-12, adopted March 21, 1967, establishes procedures for the formation of an underground utility district, which has been followed; and

WHEREAS, County of Santa Clara will sponsor and use their California Public Utilities Commission Code Rule 20A work credits to pay for aerial to underground electrical service conversions and undergrounding of public utility main and service lines, as more fully described in this Ordinance; and

WHEREAS, Ordinance No. 67-12 further establishes regulations and procedures for the converting of aerial electric and communication facilities along with the removal of their associated support structures to underground facilities for the supply of electric, communication, or similar services in designated districts within the City; and

WHEREAS, on October 25, 2016, the City scheduled a duly noticed public meeting for the purpose of ascertaining whether the public necessity, health, safety, or welfare required the removal of poles, overhead wires and associated overhead structures on both sides of University and Lincoln Avenues from West Edith Avenue to approximately Sherman Street; and


ATTACHMENT 3

WHEREAS, County of Santa Clara will sponsor and use their California Public Utilities Commission Code Rule 20A work credits to pay for aerial to underground electrical service conversions and undergrounding of public utility main and service lines, as more fully described in this Ordinance; and

WHEREAS, on October 25, 2016 the City Council considered all testimony and evidence, including any written protests previously submitted, and all persons desiring to submit written or oral testimony regarding the City’s Lincoln Park Underground Utility District or otherwise desiring to be heard on the matter; and

WHEREAS, this Ordinance is exempt from environmental review pursuant to Section 15061(b)(3) of the State Guidelines implementing the California Environmental Quality Act of 1970, as amended.

NOW THEREFORE, the City Council of the City of Los Altos does hereby ordain as follows:

SECTION 1. Following notice and public hearing thereon, the Council authorized that an underground district be formed within the area of the City of Los Altos designated as the Lincoln Park Underground Utility District (“District”), as set forth in Exhibit “A,” attached hereto and made a part thereof by reference.

SECTION 2. Following notice and public hearing thereon, the Council found that the public necessity, health, safety and welfare require, and this Council hereby orders: (1) the removal of poles, overhead wires and associated overhead structures from the public streets, alleys and ways within the District; (2) the underground installation therein of said wires to supply and distribute electrical energy and service, telephone, telegraph service, cable television service or similar or associated service except as otherwise provided pursuant to Ordinance No. 67-12; and (3) the discontinuance of overhead service upon completion of the underground system. The above finding was made in part by reason of the extensive use of the streets in said District, and the heavy volume of pedestrian and vehicular traffic thereon, and the street adjoins a civic and public recreation area.

SECTION 3. The public streets, alleys and ways, or portions thereof from which such poles and overhead wires and associated overhead structures must be removed, and such underground installation made, are all those within the District, excluding all electric transmission facilities and support pole(s). Said ability for use of the undergrounding portion of the District is expected to be no later than December 31, 2020 or at a date set by Council by resolution. All properties that are to receive underground electric, telephone or cable television service shall be ready to receive such underground service on or before that date. Said removal of poles, overhead wires, and associated overhead structures shall be completed no later than December 31, 2021 or at a date set by Council by resolution.

SECTION 4. The right of entry granted by affected property owners for the performance of work necessary in connection with the construction of the District, authorizes the contractor, public utility or City, and their respective agents and employees to


ATTACHMENT 3

enter upon said lot or parcel for such purposes and waives any right of protest or objection with respect to the doing of such work of conversion.

SECTION 5. Pacific Gas & Electric Company shall use the underground conversion allocation, computed pursuant to decisions of the California Public Utilities Commission for the installation of no more than one hundred (100) feet (measured from the property line) of trenching, excavation, conduit installation, conductor, backfill, and surface restoration of each customer’s individual service lateral to each qualifying premise affected by the District. Each other serving utility will provide service trenching, excavation, conduit installation, conductor, backfill and surface restoration in accordance with its tariffs on file with the California Public Utilities Commission or as required by its Franchise Agreement with the City.

SECTION 6. Pacific Gas & Electric Company, shall use said underground conversion allowance allocation for the conversion of electric service panels to accept underground service, in the District up to $1,500 per service entrance, excluding permit fees. City of Los Altos intends to accept an option made available by PG&E as per form 79-1113 (Rev 1/10) Agreement to Perform Tariff Scheduled Related Work - Rule 20A Electric Panel Service Conversions.

SECTION 7. NOTICE. Within ten (10) days after passage of this Ordinance, the City Clerk shall notify all affected utilities and all persons owning real property within the District of the adoption hereof by mailing a copy of this Ordinance, together with a copy of Ordinance No. 67-12, to the affected utilities and to affected property owners as such are shown on the last equalized assessment roll of the County of Santa Clara.

SECTION 8. CONSTITUTIONALITY. If any section, subsection, sentence, clause or phrase of this code is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of this code.

SECTION 9. PUBLICATION. This ordinance shall be published as provided in Government Code section 36933.

SECTION 10. EFFECTIVE DATE. This ordinance shall be effective upon the commencement of the thirty-first day following the adoption date.


ATTACHMENT 3

The foregoing ordinance was duly and properly introduced at a regular meeting of the City Council of the City of Los Altos held on ____________, 2017 and was thereafter, at a regular meeting held on ___________, 2017 passed and adopted by the following vote:

AYES: NOES: ABSENT: ABSTAIN:

___________________________ Mary Prochnow, MAYOR

Attest:

_______________________ Jon Maginot, CMC, CITY CLERK

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Pacific Gas and Electric Company�

Municipality: City of Los Altos

Project Name: Lincoln Park Los Altos

Date: 9-16-2016

R20A Program Liaison: Donna Pontrello

Rule 20A

Ballpark Statement

The City of Los Altos is considering a project to convert to underground the overhead electric

distribution, telephone and cable TV lines as described below. The conversion of overhead

electric lines to underground requires coordination with other utilities and months of

engineering, and a reliable cost estimate will not be available until the design and engineering is

complete. Nevertheless, the City has asked for a preliminary estimate of the electric

underground project costs in advance of any design and engineering work.

This is a preliminary "pre-design" ballpark cost figure based on unanalyzed statistical

information and does not reflect an actual project cost. A more accurate project cost figure will

not be available until the design phase engineering is completed.

The pre-design ballpark figure, within the community's available Rule 20A work credit

allocations amount, will allow the project to be placed conditionally in the Rule 20A queue. At

the completion of the design phase, the project cost will be re-evaluated to determine that the

project cost, including the recommended contingency budget, is still within the community's

available Rule 20A work credits.

The proposed undergrounding district located at Lincoln Park includes approximately 4000

linear street footage, 200 service lateral footage (trenching from property line to the panel on

each property), and 5 panel conversions. The ballpark figure for this project is $4M.

Rev. - 05-19-2016

ATTACHMENT 4

public hearing agenda item # 4 agenda report summary

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