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HomeMy WebLinkAbout1996-12-02 City Council (8)TO: FROM: AGENDA DATE: SUBJECT: City of Palo Alto City Manager’s Report HONORABLE CITY COUNCIL CITY MANAGER DECEMBER 2, 1996 Resolution of Intent to Establish Underground UtiliD’ District No. 37 Embarcadero/Middlefield Road DEPARTMENT: UTILITIES CMR:482:96 5 REQUEST This report provides additional information requested by the City Council at their November 12, 1996 meeting and requests Council to adopt a Resolution of Intent to establish Underground Utility. District No. 37 in the area shown on the attached district boundary map. The schedule outlined in CMR:459:96 has not changed. RECOMMENDATIONS Staff recommends that Council: 1)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. 37. POLICY IMPLICATIONS This project does not represent any change to existing policies. EXECUTIVE SUMMARY On November 12, 1996, Council requested additional background information on Underground Utility District No. 37, before making a decision on whether to adopt the Resolution of Intent to amend Section 12.16.02 of Chapter 12.16 of Title 12 of the Palo Alto Municipal Code. Council requested specific items to be covered concerning the transmission line which is located on the south side of Embarcadero Road between Louis Road and Byron Street. This report provides the following: CMR:482:96 Page 1 of 4 A description of the undergrounding project and the cost to underground the transmission line within the district. An overview of the policy established in the Municipal Code. A brief summa13,, of previous and future underground districts with respect to transmission lines. PROJECT DESCRIPTION Underground Utility District No. 37 will underground the existing overhead distribution system in the area roughly bounded by Middlefield Road, Seale Avenue, Embarcadero Road, and Oregon Expressway. Undergrounding will be completed in FY 1998-99 with the removal of the overhead system. This project involves creating an underground utilities district and performing the work on a general benefit basis under the provisions of Utility Rule and Regulation 18, which requires the Utilities to bear the cost ofundergrounding the distribution system and property owners to bear the cost ofundergrounding the services on their individual buildings. The total cost of the proposed project is estimated at $2,400,000. Within the boundaries of Underground Utility District No. 37 is an overhead transmission line which connects Hopkins Substation to Colorado Substation and Alma Substation. The scope of work for the underground conversion project does not include converting the overhead transmission line to underground. If the overhead transmission line were included in Underground Utility District No. 37, the project would underground the 60 kV transmission line along Embarcadero Road, beginning at the pole west of Louis Road and terminating at the pole west of Middlefield Road. To accomplish this two separate trenches would be required along Embarcadero Road. One trench would be for the electric distribution, telephone, and cable TV facilities; and the second trench would be for the electric transmission facilities. The project would remove 17 transmission poles (60 feet in height) along the 3,000 foot section of Embarcadero Road. The project would also involve the installation of 4 transition poles. These poles would be located where the underground portion of the transmission line transitions into an overhead section. The estimated cost of the project is approximately $750,000. A key issue regarding electric dere~m.~lation is how to position Palo Alto for competition in the future. The electric utility will need to continue to examine closely its expenditures to maintain rates at or below market in the future. Undergrounding transmission lines would add substantially to these expenditures. CMR:482:96 Page 2 of 4 POLICY The exceptions to undergrounding overhead wires in underground districts are listed in Section 12.16.050 of Chapter 12.16 of Title 12 of the Palo Alto Municipal Code. That section states that provisions for underground districts do not apply to an electric distribution or transmission system in excess of fifteen kilovolts, unless the managing director of utilities, or his designee, determines that underground installation of such transmission system is feasible and practicable. This policy was established for both technical and cost reasons. PREVIOUS & FUTURE UNDERGROUND PROJECTS Only one underground district (No. 11 Page Mill Expressway) involved the undergrounding of both distribution and transmission lines. In this underground district, the transmission line undergrounding was part of another project to substantially increase capacity and improve service reliability in the Stanford Business Park. More recently, Underground District No. 34 (Downtown IV/Channing/Addison), involved undergrounding a distribution system and leaving the existing 60 kV overhead t~ransmission system undisturbed. In other districts, transmission lines have crossed district boundaries for very short distances and were excluded from the district. As future underground districts are established, some transmission lines ’,,,,ill be located within their boundaries (Reference attachment:substations & 60kV Circuit Map). Proposed Underground District No. 41 has a portion of the 60 kV transmission line on Louis Road between Colorado Avenue and Oregon Expressway within its boundary. One of the benefits of the underground conversion projects is the improved aesthetics provided to the affected areas. In most cases, aesthetic value can be diminished by the underground conversion of a transmission line due to the necessity to install transition poles. The transition poles are large (Reference Attachment:60 kV Transition Poles). Without the removal of the overhead transmission line, most aesthetic benefits associated with underground conversion projects would still be evident in Underground Utility District No. 37. This improvement in aesthetics would occur as a result of the removal of the electric distribution, telephone, and cable TV facilities from the transmission poles (Reference Attachment:60 kV Transmission Lines). In summary, the undergrounding of a small portion of the overhead transmission system offers no operating benefit and is very costly. The installation of transition poles needed CMR:482:96 Page 3 of 4 for the undergrounding of the portion of transmission line in Underground Utility District No. 37 offers additional points where failures can occur. Because of the cost and impact of these expenditures as the electric industry is deregulated and potential reduction in service reliability, staff does not recommend including the 60 kV transmission line as part of Underground Utility District No. 37. ATTACHMENTS Resolution Underground Utility District No. 37 Boundao* Map Substations & 60 kV Circuit Map 60 kV Transition Poles 60 kV Transmission Lines CMR:459:96 Prepared by:Jim Thompson, Senior Power Engineer Department Head Approval: J. Director of Utilitk City Manager Approval: FLEMING Manager CMR:482:96 Page 4 of 4 RESOLUTION NO. RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO 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 NUMBER 37 The Council of the City of Pa!o 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 Pa!o Alto Municipa! 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 remova! 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 37 of the City of Palo Alto, commonly known as Embarcadero/Middlefie!d Road. 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 Embarcader9 Road, Middlefield Road, Sea!e 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/Midd!efield Road Underground Utility District Number 37," 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 similar 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 Paio 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 shal! 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 !3th day of January, i997, 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 the Council shal! hear a!l protests and receive evidence for and 961022 syn 007106S 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 remova! 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 shal! 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 Pa!o Alto, is hereby designated as the person to answer inquirles 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 (415) 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 !ocations 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 APPROVED AS TO FORM Senior Asst. City Attorney Mayor City Manager Director of Utilities Deputy City Manager, Administrative Services 961022 syn 007106g 2 60 kV Transition poles 60 kV Transmission Lines Figure 1: 60 kV Transmission Line with Primary and Secondary Electric Distribution, Telephone and Cable TV. Figure 2:60 kV Transmission Line TO:HONORABLE CITY COUNCIL 7 FROM:CITY MANAGER DEPARTMENT: UTILITIES AGENDA DATE: November 12, 1996 CMR:459:96 SUBJECT:Resolution of Intent to Establish Underground Utility District No. 37 Embarcadero/Middlefield Road. REQUEST This is a request for Council to adopt a Resolution of Intent to establish Underground Utility District No. 37 in the area shown on the attached district boundary, map. RECOMMENDATIONS Staff recommends that Council: 1)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. 37. POLICY IMPLICATIONS This project does not represent any change to existing policies. EXECUTIVE SUMMARY 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 their criteria for undergrounding based on guidelines established by the California Public Utility Commission. The attached Exhibit ’A’ shows the existing, present, and future underground districts. Area 37, now being proposed as the next underground district, meets the City, Pacific Bell and Cable Co-op’s guidelines for undergrounding overhead utility lines. CMR:459:96 Page 1 of 5 This underground project will result in the removal of 97 poles and provision 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. Once the underground district is created, the Utilities Department will prepare a design and obtain bids for the installation of the underground substructure required prior to placing the electric, telephone, cable TV, street light and Cit3’ 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 cable TV overhead facilities and the poles. On August 15, 1996, a letter was sent to the propert3, owners in the proposed district introducing the project and inviting them to a meeting. During the meeting (attended by 48 property owners) on September 26, 1996, staff explained the details of the project and answered questions from the propem2 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 153 property owners, 109 of whom (71 percent) are in favor of the project, 28 of whom (18 percent) are not in favor of the project, and 19 of whom (11 percent) are undecided. During the September 26, 1996 meeting, staff’,,,,as requested to investigate the feasibility of including the 60 kilovolt transmission line on Embarcadero Road as part of the underground conversion project. Section 12.16.050 of the Palo Alto Municipal Code allows for the exclusion of electric distribution and transmission systems in excess of fifteen kilovolts from underground conversion districts unless the Director of Utilities, or his desQmaee, determines that underground installation of such transmission system is feasible and practicable. In response to the request, staffwill prepare an economic and engineering analysis including the 60 kilovolt transmission line as part of Underground Utility District No. 37. The final decision to include the transmission line as part of the project will be made prior to the public hearing on Underground Utility District No. 37. CMR:459:96 Page 2 of 5 Prior to final design of Underground Utility District No. 37, staffwill return to the Council with a report on an assessment of the Southgate Underground District. This report is a requirement made by the Utilities Advisor5.; Commission (UAC) in regard to their recommendation on the pad mounted equipment policy (CMR: 182:96). Proposed Procedure The first step in the establishment of the District is Council adoption of a Resolution of Intent to establish Underground District No. 37. The resolution defines the District boundaries and sets a time and place for a public hearing on the matter. The public hearing has been tentatively scheduled for the January. 13, 1997 Council meeting. At the public hearing, the property owners will have an opportunity to comment 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: Formation of Underground Utility District No. 37 will be initiated by Council’s adoption of the attached Resolution of Intent. Council will hold a public hearing on Underground Utility District No. 37, soliciting public comment. After public comment is received, Council will either adopt or reject an ordinance forming Underground Utility District No. 37. If the City Council approves the formation of the District, a contractor will be hired to install power, telephone, communication and cable TV substructure in a jointly occupied trench. With the award of contract by the Council, an agreement for joint participation between the Cib;, Pacific Bell, and Cable Co-op will be executed. The only cost to the property owners will be that of replacing the overhead service drops to their buildings with underground service. It is estimated that the cost per property owner will be in the range of $2500 to $5000. Property owners will be offered the option of financing their service conversion under Section 12.16.091 of the Palo Alto Municipal Code. The principal amount plus interest, loan handling fee, and the administrative cost is repayable in ten years with the payments added to the property tax bill. CMR:459:96 Page 3 of 5 Council Action and Tentative Schedule The first Council action required to initiate the procedure will be adoption of the Resolution of Intent to establish Underground District No. 37. Below is the tentative project schedule. Action Resolution of Intent to establish Underground Utility District No. 37 Date November 12, 1996" 2.Public Hearing January 13, 1997" Award of construction contract and Joint Construction Agreement with Pacific Bell/Cable Co-op August 4, 1997" o Substructure (conduit, vaults, etc.) installation by contractor October 1997 through February 1998 o Resolution determining properties electing to pay service conversion cost over a period of 10 years. October 27, 1998’ o Installation of underground facilities (cables, switches, etc.) February 1998 through April 1998 7.Service conversion work by property owners 8.Pole removal and project completion Denotes Council Action May 1998 through July 1998 August 1998 through September 1998 CMR:459:96 Page 4 of 5 FISCAL IMPACT The total cost of the proposed project is estimated at $2,400,000. For fiscal year 1996/97, $80,000 has been designated for planning and engineering of this project and is budgeted in the 1996/97 Electric Capital Improvement Project Funds. 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 necessa~,. ATTACHMENTS Resolution Underground District No. 37 Boundary Map Exhibit "A": Underground Conversion Projects PREPARED BY: Jim Thompson and Taha Fattah EDWAa~ J. Mt~EI~ Director of Utilities CITY MANAGER APPROVAL: FLEMING Manager CMR:459:96 Page 5 of 5