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HomeMy WebLinkAbout1997-10-27 City Council (31)TO: FROM: City of Palo Alto City Manager’s Report HONORABLE CITY COUNCIL CITY MANAGER DEPARTMENT: UTILITIES 5 AGENDA DATE: OCTOBER 27, 1996 CMR:440:97 SUBJECT:RESOLUTION OF INTENT TO ESTABLISH UNDERGROUND UTILITY DISTRICT NO. 38 (HIGH STREET,. COWPER AVENUE, OREGON EXPRESSWAY, COLORADO AVENUE) RECOMMENDATION Staff recommends that Council adopt the attached Resolution of Intent to amend Section 12.16.02, of Chapter 12.16 of Title 12, of the Palo Alto Municipal Code by establishing Underground Utility District No, 3 8. BACKGROUND The Electric Utility’s undergrounding project areas 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 the criteria for undergrounding based on guidelines established by the California Public Utility Commission (CPUC). The attached Exhibit A shows the existing, current and future underground districts. Area 3 8, now being proposed as the next underground district, meets the City, Pacific Bell and Cable Co-op’s guidelines for undergrounding overhead utility lines. DISCUSSION This underground project will result in the removal of 71 poles and provide underground service to 192 residential properties. The majority of the poles in the area are along rear lot easements with limited access. Completion of this project will enhance reliability of the distribution system and it will also improve aesthetics. Once the underground district is created, the Utilities Department will prepare plans and CMR:440:97 Page 1 of 4 specifications and obtain bids for installation of the underground substructure required prior to placing the electric, telephone, cable TV (CATV), street light and City communication facilities underground. After the new underground systems (cable, transformers, switches, etc.) have been installed, the property owners will connect to the new underground system, utilizing their own contractors. City crews will then remove the overhead power lines, and telephone crews will complete the project by removing the remaining telephone and CATV overhead facilities and the poles. On August 12, 1997, a letter was sent to 192 property owners in the proposed district introducing the project and inviting them to a meeting. During the meeting (attended by 19 property owners) on September 17, 1997, staff explained the details of the project and answered questions from the property owners. A questionnaire, which was included with the letter, was used to determine the level of support for the project. Staff’has received completed questionnaires from 119 property owners; 72 (61 percent) are in favor of the project, 27 (23 percent) are not in favor of the project, and 20 (16 percent) are undecided. RESOURCE IMPACT The total cost of the proposed project is estimated at $2,790. For Fiscal Year 1997-1998, $90,000 has been designated for planning and engineering of this project and is budgeted in the 1997-1998 Electric Fund Capital Improvement Program. The only cost to the property owners will be that ofrepiacing the overhead service drops to their buildings with underground services. It is estimated that the average cost per property owner will be approximately $2500. Property owners will be offered the option of financing their service conversions under Section 12.16.091 of Palo Alto Municipal Code. In that case, customers borrow funds from the City and repay the loan and administrative costs, which are added to their property tax bills, over a ten year period, at an interest rate approved by the Council. The interest rate for previous underground district No. 36 was 6.57 percent. POLICY IMPLICATIONS This project is consistent with existing City policies. TIMELINE The first step in the establishment of the district is Council’s adoption of a Resolution of Intent to establish Underground Utility District No. 38. The Resolution defines the district boundaries and sets a time andplace for a public hearing on the matter. The public hearing has been tentatively scheduled for the January 27, 1998 City Council meeting. At CMR:440:97 Page 2 of 4 the public hearing, the property owners will have an opportunity to comment to Council on the project. The adoption of the Resolution of Intent will also serve as a formal action that is required by Pacific Bell prior to starting engineering design. After the public hearing, if the Council elects to proceed, the following will occur: Action 1. Resolution of Intent to establish Underground District No. 38 Date October 27, 1997’ 2. Public Hearing January 27, 1998’ Award of construction contract and Joint Construction Agreement with Pacific Bell/Cable Co-op Substructure (conduits, vaults etc.) installation by Contractor July 1998’ July 1998 through November 1998 Resolution determining properties electing to pay service conversion cost over a period of 10 years Installation of underground facilities (cables, switches etc.) Service conversion work by property owners Pole removal and project completion Denotes Council Action April 1999’ January 1999 through April 1999 May 1999 through August 1999 September 1999 through December 1999 ENVIRONMENTAL ASSESSMENT This project is categorically exempt from California Environmental Quality Act under Section 15302. CMR:440:97 Page 3 of 4 ATTACHMENTS Resolution Underground Utility District No. 3 8 Boundary Map Exhibit "A": Underground Conversion Projects . Prepared by: Gopal Jagannath, Patrick Valath, and Tomm Marshall Department Head Approval: City Manager Approval: ED’WARD,~. MRIZEK Director of Utilities Assistant City Manager CMR:440:97 Page 4 of 4 RESOLUTION NO. RESOLUTION OF THE COUNCIL OF THECITY OF PALO ALTO DECLARING ITS INTENTION TO AMENDSECTION 12.16.020 OF CHAPTER 12.16 OF TITLE 12 OF THE PALO ALTO MUNICIPAL CODE BY ESTABLISHING UNDERGROUND UTILITY DISTRICT NUMBER 38 The Council of the City of Paio Alto does RESOLVE as follows: SECTION i. In its opinion, the public necessity, health and safety require, and it is the intention of the Council, pursuant to Section 12.16.040 of Chapter 12.16 of Title 12 of the Palo Alto Municipal Code ("Code"), to amend Section 12.16.020 of Chapter 12.16 of the Code, by ordering the establishment of an Underground Utility District ("District") and to prohibit the construction in and require the removal from the proposed District of all poles and overhead lines and associated overhead structures used or useful in supplying electric, communication or similar and associated services. SECTION 2. The number of the proposed District is Underground Utility District Number 38 of the City of Palo Alto, commonly known as High/Cowper/Oregon and Colorado Avenue. SECTION 3. The description of the area comprising the District is as follows: All of the area in the County of Santa Clara, City of Palo Alto, encompassing the areas contiguous with portions of High Street and Cowper Street, and Oregon Expressway and Colorado Avenue, all as more particularly described on that certain map entitled "High/Cowper/Oregon and Colorado Avenue Underground Utility District Number 38," on file in the office of the City Clerk. SECTION ~4. From and after the effective date of the establishment of the proposed District, no person or utility shall erect or construct within the District any pole, overhead lines or associated overhead structure used or useful in supplying electric, communication or s~milar associated services. SECTION 5. Within ninety (90) days from the date of the completion and acceptance of the proposed underground facilities within the District to be constructed by the City of Palo Alto and the Pacific Bell Company, all poles and overhead lines and associated structures used or useful in supplying electric, communication or similar and associated services in the proposed District shall be removed, and from and after the date no person or utility shall use or maintain such facilities within the proposed District. Additional notice shall be given after the completion date has been precisely determined. SECTION 6. NOTICE IS HEREBY GIVEN that Monday, the 26th day of January, 1998, at the hour of 7:00 p.m., in the regular meeting place of is City Council, Civic Center, Palo Alto, California, is. hereby fixed as the time and place when and where 971015 ~n 0071298 1 the Council shall hear all protests and receive evidence for and against the~action herein proposed, and when and where the Council shall consider and finally determine whether the public necessity, health and safety require the establishment of the District and the removal of poles, overhead wires, and associated overhead struc- tures, and the underground installation of wires and facilities for supplying electric, communication and similar or associated services in the District hereinabove described. SECTION 7. At the public hearing, all persons interested shall be given an opportunity to be heard. The hearing may be continued from time to time as determined by the Council. SECTION 8. The Electrical Engineering Manager, Department of Utilities, City of Palo Alto, is hereby designated as the person to answer inquiries regarding the protest proceedings, to be had herein and may be contacted during regular office hours at Palo Alto Civic Center, 250 Hamilton Avenue, Palo Alto, California, 94301, or by calling (650) 329-2365. SECTION 9 The Clerk of the City shall give notice of the public hearing by publishing notice of the public hearing and the director of utilities shall mail copies of this resolution to all property owners within the proposed District as shown on the last equalized tax roll of the City, and to all utilities supplying electric, communication or similar or associated services within the proposed District, the mailing to be completed at least thirty (30) days prior to the date of the public hearing. The Clerk is authorized to include in the notice to be mailed a statement to the effect that any affected property owner has the option of paying the cost of converting his or her or their service connection to underground locations over a period of years. Such notice shall conform to Section 12.16.092 of Chapter 12.16 of Title 12 of the Code. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST:APPROVED: City Clerk Mayor Director of Utilities APPROVED AS TO FORM: Senior Asst. City Attorney City Manager Acting Director of Administrative Services 971015 syn 0071298 2 APPROVED t:~ AUO ENGR. MANAGER IE.G~ DRAWN PDD c,~EC~E~,V~V UNDERGROUND DISTRICT NO. 38 BOUNDARY MAP CITY OF PALO ALTO CALIFOM,,IIA 38 -BM -S -001 EXIIIBIT "A" .,.. ~ ’ . --_. ::, J ..:~,". CtTY’OF PALO UTiLtTI E S ,DEPAKT~ENT UNDERGROUNDCONVERSION PROJECT.