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Home My WebLink About1997-01-13 City Council (13)of Palo Alto Manager’s Repar TO:HONORABLE CITY COUNCIL FROM: AGENDA DATE: SUBJECT: CITY MANAGER DEPARTMENT: UTILITIES JANUARY 13, 1997 CMR:113:97 Public Hearing and Adoption of Ordinance Establishing Underground District No. 37 Embarcadero/Middlefield Roads. 7 REOUEST This is a request for Council to adopt an Ordinance Establishing Underground Utility District No. 37 in the area shown on the attached district boundary map. RECOMMENDATIONS Staff recommends that Council: 1)Adopt the attached Ordinance to create Underground Utility District No. 37 and amend Section 12.16.02, of Chapter 12.16 of Title 12, of the Palo Alto Municipal Code. POLICY IMPLICATIONS This project does not represent any change to existing policies. EXECUTIVE SUMMARy At its meeting of December 2, 1996, the Council passed a Resolution of Intent to establish Underground Utility District No. 37. The Council meeting of January 13, 1997 has been set as the date of the Public Hearing on the matter. Notices announcing the meeting with a description of the project and a copy of the resolution were mailed to all property owners in the proposed district on December 6, 1996. The Electric Utility’s undergrounding projeetareas are selected and recommended to Pacific Bell and Cable Co-op based on the age and maintainability of the existing overhead electric system. Pacific Bell and Cable Co-op determine whether the recommended area meets their criteria for undergrounding based on guidelines established by the California Public Utility Commission (CPUC). The area now being CMR:113:97 Page 1 of 4 proposed as the next underground district meets the City’s, Pacific Bell’s and Cable Co-op’s guidelines for undergrounding overhead utility lines. This underground project will result in the removal of 97 poles and provide underground service to 227 residential properties. The majority of the poles in the area are along rear lot easements with limited access. Completion of this project will improve service reliability, increase safety and improve aesthetics, due to the elimination of poles in the rear of properties. If an underground utility district is created, the Utilities Department will prepare bids for installation of the underground substructure (conduits, vaults and boxes) as a joint construction project. Upon completion of substructure installation, the Utility will install the distribution cables, transformers and switches. After the cables are tested and energized, all affected property owners will.be notified that they have 60 days to prepare their buildings for connection to the new system. As soon as the new connections are completed, Utility crews will remove the overhead power lines from the poles, following which the telephone company will remove the remaining overhead facilities and poles. Financing The estimated cost of converting the overhead distribution system to underground in the project area is $2,400,000, of which an estimated $800,000 will be for the installation of telephone and CATV conduit and boxes. The City will be reimbursed by Pacific Bell and Cable Co-op for this expenditure in accordance with an agreement between these parties. Total cost of this project is included in the fiscal year 1996-97 and proposed 1997-98 Capital Improvement Programs. The cost of the required service conversions on private property is to be borne by the individual owners in accordance with Utility Rule and Regulation No. 18. The total cost for the property owners requiring service conversion from overhead to underground has been estimated at $916,000. The average service conversion cost per customer is $4,035. The property owners have been offered the option of financing their service conversion costs over a period often years in accordance with the procedure given in Sections 12.16.090 through 12.16.096 of the Palo Alto Municipal Code. Pro osed Procedure It is proposed that: 1.Underground conversion in the proposed project area be initiated by the creation of CMR:113:97 Page 2 of 4 Underground Utility District No. 37 as shown on the accompanying map. A contractor be retained to install power, telephone, communications, and CATV substructures in a jointly occupied trench. Upon award of contract by the Council, an agreement for joint participation between the City, Pacific Bell and Cable Co- op will be executed. In order to properly distribute all of the costs of the project, separate agreements will specify that Pacific. Bell and Cable Co-op pay for their respective conduit and boxes and for their share of the trench and backfill, based upon the trench area required by each utility. The Council finds undergrounding the project area to be of general public interest and benefit. The construction work on the distribution system, therefore, will be done at the expense of the utilities involved, and no part of the distribution cost will be assessed to the affected property owners. The only cost to the property owners will be that of replacing the overhead service equipment on their buildings with underground services. Property ownerswill be offered the option of financing their service conversions under Section 12.16.091 of the Palo Alto Municipal Code and, in effect, borrowing, from the City and having their repayment costs added to their tax bills over a period often years at an interest rate specified by the Council. Council Action and Tentative Schedule Introduction and first reading of Ordinance Establishing Project Area as Underground Utility District No. 37. January 13, 1997 Second reading and adoption of ordinance January 27, 1997 Resolution determining property owners electing to pay service-conversion cost over a period often years. October 27, 1997 CMR: 113:97 Page 3 of 4 Award of Contract to install substructure (conduit, vault, etc.) and Joint Construction Agreement with Pacific Bell and Cable Co-op. August 4, 1997 Installation of underground facilities (cable, switches, etc.) Service Conversion work by property owner. October 1997 through April 1998 May 1998 through July 1998 Pole removal and project completion.August 1998 through September 1998 ENVIRONMENTAL ASSESSMENT This project was considered categorically exempt as part of the Council approval of the 1994-1999 CIP and no further environmental review is necessary. ATTACHMENTS Ordinance Underground Utility District No. 37 Boundary Map Prepared by: Department Head Approval: City Manager Approval: Jim Thompson, Senior Power Engineer ~ecWtor o~/~" ~~M~E~K\ CMR:113:97 Page 4 of 4 ORDINANCE NO. ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING SECTION 12.16.020 OF CHAPTER 12.16 OF TITLE 12 OF THE PALO ALTO MUNICIPAL CODE BY ESTABLISHING UNDERGROUND UTILITY DISTRICT NO. 37 WHEREAS, this Council, on December 2, 1996, adopted Resolution No. 7637, declaring its intention to amend Section 12.16.020 of Chapter 12.16 of Title 12 of the Palo Alto Municipal Code by establishing Underground Utility District No. 37 in the City and by such Resolution appointed Monday, January 13, 1997, at the hour of 7:00 p.m., in the Council Chambers, City Hall, at 250 Hamilton Avenue, Palo Alto, California, as the time and place of hearing protests and receiving evidence for and against the proposed action and notice of direction; and WHEREAS, notice was given of the time and place therein stated in the manner provided by law, as appears from.the affida- vits on file in the office of the City Clerk; and WHEREAS, this matter came on regularly for hearing at the time therein fixed; and WHEREAS, all written protests and other written communica- tions were publicly read at this meeting and evidence duly taken and all persons desiring to be heard were fully heard; NOW, THEREFORE, .the Council of the City of Palo Alto does ORDAIN as follows: SECTION i. The public necessity, health and safety require the removal of poles and overhead lines and associated overhead structures from that certain area described in Resolution No. 7637. SECTION 2. Section 12.16.020 of Chapter 12.16 of Title 12 of the Palo ~Alto Municipal Code is hereby amended by adding Subsection (37) thereto to read as follows:~ "(37) District No. 37. All of the area in the County of Santa Clara, City of Palo Alto, encompassing the areas contiguous with portions of Embarcadero Road, Middlefield Road, Seale Avenue, Byron Street, Bret Harte Street, Mark Twain Street, Newell Road, Guinda Street, Fulton Street and Tennyson Avenue, all as more.particularly described on that certain map entitled "Embarcadero/Middlefield Road Under- ground Utility District Number 37," on file in the office of the City Clerk.." SECTION 3. The "Underground Utility District~ Maps" referred to in Section 12.16.020 shall be amended to add to the areas shown on the map those referred to in Resolution No. 7637. 970107 ~jn 0071105 SECTION 4. The City Council hereby finds that the adoption of this ordinance constitutes the approval of a project that is categorically exemptfrom environmental review under the California Environmental Quality Act. SECTION 5. This ordinance shall become effective upon the expiration of thirty (30) days from its passage. INTRODUCED: PASSED : AYES : NOES : ABSTENTIONS : ABSENT: ATTEST:APPROVED: City Clerk Mayor APPROVED AS TO FORM: Senior Asst. City Attorney City Manager Director of Utilities 970107 s’yn 0071105 2