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Home My WebLink AboutRESO 9858 6055238 1 Resolution No. 9858 Resolution of the Council of the City of Palo Alto Amending Utility Rule and Regulation 20 to Allow Neighborhood Self-Funding of Certain Subsurface Equipment R E C I T A L S A. Since 1965, Sections 12.16.020 and 12.16.040 of the Municipal Code have authorized the City Council to designate Underground Utility Districts (“UUD”) within the City. B. The purpose of this designation is to require the replacement of existing poles, overhead lines and associated overhead structures within each designated UUD. C. In areas served by underground lines, Utility Rule and Regulation 3 currently requires that, with few exceptions, all new transformers and other new equipment required to provide electric service to customers be pad-mounted. D. Pad-mounted equipment is generally more reliable and substantially less expensive to install and maintain than subsurface (vault-mounted) equipment. E. In some early UUD’s, equipment was installed subsurface, rather than pad-mounted. As these installations reach functional obsolescence, CPAU has been replacing these installations with pad-mounted equipment at its expense. F. Before replacing an installation that has reached functional obsolescence, CPAU generally sends a “courtesy notice” to customers served by the installation. G. The City Council desires to amend Rule and Regulation 20 to provide a mechanism by which neighborhoods can fund the replacement of obsolete subsurface equipment with new subsurface equipment. H. Pursuant to Section 12.20.010 of the Municipal Code authorizes the City Council, by resolution, to adopt rules and regulations relating to utility service. The Council of the City of Palo Alto hereby RESOLVES as follows: SECTION 1. Utility Rule and Regulation 20 (Special Electric Utility Regulations) is hereby amended to add Section K thereto, to read as follows: “K. NEIGHBORHOOD FUNDING OF SUBSURFACE EQUIPMENT 1. REPLACEMENT OF SUBSURFACE EQUIPMENT a. Notwithstanding the provisions of Rule and Regulation 3(B)(3), in UUD’s in which the existing equipment required to provide electric service to customers is subsurface, the Utilities Director, or his/her designee, may, at the end of the service life of such equipment vaults or equipment, DocuSign Envelope ID: 3ED515A3-9F06-4220-B7EB-69A7B9393F1C 6055238 2 authorize their replacement with new subsurface equipment if the following conditions are met: (i) The Utilities Director, or his/her designee, determines that the installation of subsurface equipment is practicable; and (ii) Such installation has been requested by property owners in the manner set forth in this subdivision K; and (iii) The City receives funding for the subsurface installation as set forth in this subdivision K. b. For purposes of this subdivision K, “Neighborhood-Funded Subsurface Installation” means all vaults and equipment the installation of which has been funded pursuant to this subdivision K. c. CPAU operates its utilities in accordance with Prudent Utility Practice. As is always the case with CPAU’s Electric Distribution System and any CPAU-operated equipment, CPAU reserves the right to operate, maintain, rehabilitate, and replace equipment at such time and in such manner as it determines is necessary or useful for the safe and effective operation of the Electric Distribution System. Consequently, nothing in this subdivision K should be interpreted to: (i) Require that CPAU, at the end of the useful life of a Neighborhood-Funded Subsurface Installation, replace that equipment with a subsurface installation; or (ii) Prohibit CPAU, subsequent to the installation of a Neighborhood-Funded Subsurface Installation, from installing pad-mounted equipment in the territory served by that Neighborhood-Funded Subsurface Installation if the Utilities Director determines that such installation is necessary or prudent; or (iii) At any time prohibit CPAU from replacing all or part of a Neighborhood-Funded Subsurface Installation with pad-mounted equipment if CPAU is required to do so by Law or if the Utilities Director determines that the continued operation of all or part of the Neighborhood-Funded Subsurface Installation presents an unacceptable hazard to public safety, employee safety, or system reliability, or is contrary to Prudent Utility Practice. 2. REQUEST FOR PETITION FORM a. Upon receiving a timely written request signed by owners of at least five parcels of real property in an area served by a subsurface installation, CPAU will prepare the petition form described in subdivision (3)(c) of this subdivision (K). b. A request will be considered timely only if (i) it is submitted to the Utilities Director, or his/her designee no later than 30 days following the distribution of the first courtesy notice regarding the planned replacement of a subsurface installation or (ii) the Utilities Director determines that the work schedule for such replacement will permit the time necessary for the process described in subdivisions (3) and (4) of this subdivision (K). c. Nothing in this subdivision (K) will be interpreted to require the preparation of a petition form or the provision of time for circulation of a petition if the Utilities Director determines that either the work schedule for a project or operational requirements will not make it practicable to allow time for preparation and circulation of the petition and collection of funding by proponents. DocuSign Envelope ID: 3ED515A3-9F06-4220-B7EB-69A7B9393F1C 6055238 3 3. REQUEST FOR SUBSURFACE EQUIPMENT a. The owners of real property located in a Utility Undergrounding District may request the replacement of existing vaults and equipment with new subsurface equipment by submitting a petition to the Utilities Director, or his/her designee. b. The petition must be signed by the owners of not less than 60% of the parcels in the Utility Undergrounding District. c. The petition must be on the form prepared by CPAU pursuant to subdivision (2) of this subdivision (K). The form must include a map or description of the area to be served by the Neighborhood-Funded Subsurface Installation; a summary of this procedure for Neighborhood Funding of Subsurface Equipment; the amount of the payment required to cover the City’s cost of developing a cost-estimate for the proposed subsurface replacement; as well as any additional information deemed necessary or useful by the Utilities Director, or his/her designee. d. The form must indicate the name and contact information of one property owner who will serve as proponent for the project and must indicate the date on which the form was issued to that proponent and the amount of the payment required by subdivision (f) of this subdivision (3). e. To be valid, the signed petition must be returned to the Utilities Director, or his/her designee, no later than 45 days after the form is issued to the proponent. f. The signed petition must be accompanied by a payment to cover the cost of developing a cost- estimate for the proposed subsurface replacement, as indicated on the form. 4. FUNDING OF SUBSURFACE EQUIPMENT a. Upon receipt of a valid petition, the Utilities Director, or his/her designee, will provide the proponent with either (i) a written estimate of the cost of a subsurface installation (including the net present value of any unusual continuing ownership costs associated with such installation) or (ii) a finding that such installation is not practicable. The proponent will also be provided with an estimate of the cost of a standard installation. b. The City will proceed with the subsurface installation if and only if within 90 days of the date upon which the Utilities Director, or his/her designee, provides a written estimate pursuant to subdivision (a) of this subdivision (4), the City receives payment in full for the estimated cost difference between the subsurface and the standard installation. c. It is the responsibility of the proponent to raise the funding required by this Section and the entire cost must be paid to the City at one time. The City will not collect funds from property owners or community members nor will it require any person or property owner to pay any portion of the costs. DocuSign Envelope ID: 3ED515A3-9F06-4220-B7EB-69A7B9393F1C 6055238 4 d. The Utilities Director, or his/her designee, may extend the payment deadline set forth in this subdivision.” SECTION 2. The Council finds that the adoption of this resolution amending Rule and Regulation 20 (Special Electric Utility Regulations) does not meet the California Environmental Quality Act’s (CEQA) definition of a project under Public Resources Code Section 21065 and CEQA Guidelines Section 15378(b)(5), because it is an administrative governmental activity which will not cause a direct or indirect physical change in the environment, and therefore, no environmental review is required. The installation of vaults, subsurface equipment and pad- mounted equipment to replace existing equipment is categorically exempt from CEQA review under Sections 15301 and 15302 of the CEQA Guidelines (repair, maintenance or minor alteration of existing facilities, and replacement or reconstruction of existing facilities). INTRODUCED AND PASSED: September 16, 2019 AYES: CORMACK, DUBOIS, FILSETH, FINE, KNISS, TANAKA NOES: KOU ABSENT: ABSTENTIONS: ATTEST: ___________________________ ___________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ___________________________ ___________________________ Assistant City Attorney City Manager ___________________________ Director of Utilities ___________________________ Director of Administrative Services DocuSign Envelope ID: 3ED515A3-9F06-4220-B7EB-69A7B9393F1C Certificate Of Completion Envelope Id: 3ED515A39F064220B7EB69A7B9393F1C Status: Completed Subject: Please DocuSign: RESO 9858 Rule 20 Amendments Palo Alto Undergrounding Option.docx Source Envelope: Document Pages: 4 Signatures: 6 Envelope Originator: Certificate Pages: 5 Initials: 0 Kim Lunt AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-08:00) Pacific Time (US & Canada) 250 Hamilton Ave Palo Alto , CA 94301 kimberly.lunt@cityofpaloalto.org IP Address: 12.220.157.20 Record Tracking Status: Original 10/7/2019 1:20:38 PM Holder: Kim Lunt kimberly.lunt@cityofpaloalto.org Location: DocuSign Security Appliance Status: Connected Pool: StateLocal Storage Appliance Status: Connected Pool: City of Palo Alto Location: DocuSign Signer Events Signature Timestamp Amy Bartell Amy.Bartell@CityofPaloAlto.org Assistant City Attorney City of Palo Alto Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 12.220.157.20 Sent: 10/7/2019 1:24:21 PM Viewed: 10/8/2019 6:38:27 AM Signed: 10/8/2019 6:39:09 AM Electronic Record and Signature Disclosure: Accepted: 7/16/2015 5:52:40 AM ID: d8ecb53d-ef81-4016-8886-1560c48de42a Kiely Nose kiely.nose@cityofpaloalto.org Director, Administrative Services/CFO City of Palo Alto Security Level: Email, Account Authentication (None) Signature Adoption: Uploaded Signature Image Using IP Address: 12.220.157.20 Sent: 10/8/2019 6:39:11 AM Resent: 10/17/2019 4:31:20 PM Viewed: 10/21/2019 12:25:25 PM Signed: 10/21/2019 12:25:44 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Dean Batchelor Dean.Batchelor@CityofPaloAlto.org General Manager of Utilities Security Level: Email, Account Authentication (None)Signature Adoption: Pre-selected Style Using IP Address: 12.220.157.20 Sent: 10/21/2019 12:25:46 PM Viewed: 10/21/2019 1:39:52 PM Signed: 10/21/2019 1:40:38 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Ed Shikada ed.shikada@cityofpaloalto.org Ed Shikada, City Manager City of Palo Alto Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 12.107.236.253 Sent: 10/21/2019 1:40:40 PM Viewed: 10/22/2019 4:49:33 AM Signed: 10/22/2019 4:49:45 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign Signer Events Signature Timestamp Eric Filseth eric.filseth@cityofpaloalto.org Mayor Security Level: Email, Account Authentication (None)Signature Adoption: Pre-selected Style Using IP Address: 108.169.4.229 Sent: 10/22/2019 4:49:48 AM Viewed: 10/22/2019 8:32:14 AM Signed: 10/22/2019 8:32:28 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign Beth Minor Beth.Minor@CityofPaloAlto.org City Clerk City of Palo Alto Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 12.220.157.20 Sent: 10/22/2019 8:32:30 AM Viewed: 10/22/2019 9:52:34 AM Signed: 10/22/2019 9:53:08 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Certified Delivery Events Status Timestamp Carbon Copy Events Status Timestamp Witness Events Signature Timestamp Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 10/22/2019 8:32:30 AM Certified Delivered Security Checked 10/22/2019 9:52:35 AM Signing Complete Security Checked 10/22/2019 9:53:08 AM Completed Security Checked 10/22/2019 9:53:08 AM Payment Events Status Timestamps Electronic Record and Signature Disclosure