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Home My WebLink AboutStaff Report 200-05City of Palo Alto City Manager's Report TO: . HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: UTILITIES DATE: APRIL 25, 2005 CMR:200:05 SUBJECT: RESOLUTION OF INTENT TO ESTABLISH UNDERGROUND UTILITY DISTRICT NO. 41 COLORADO AVE/MIDDLEFIELD ROAD/OREGON EXPRESSWAY/COWPER STREET AND SETTING A PUBLIC HEARING ON JULY 11, 2005 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. 41. BACKGROUND The Electric Utility's undergrounding project areas are selected and recommended to SBC and Comcast based on the age and maintainability of the existing overhead electric system. SBC and Comeast determine whether the/recommended area meets their 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. Theareanow proposed as Underground Utility District No. 41 meets the City and CPUC guidelines for undergrounding overhead utility lines. DISCUSSION This underground project will result in the removal of 80 poles and provide underground service to 185 commercial and residential properties. Completion of this project will eliminate overhead distribution lines in an area borclered bY' existing underground districts and enhance reliability of the electric distribution system while improving aesthetics. Once the underground district is created, the Utilities Department will design and obtain bids for the 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 CMR:200:05 Page 1 of3 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. The City staff is currently in discussion with SBC concerning the allocation of costs and responsibilities for joint trench applications. Since both parties agree that joint participation on projects is mutually beneficial, these discussions should not have an impact on the timeline of the project. The discussions are on-going, but staff does not foresee a significant change in cost allocation for projects with joint trench participation with SBC. On February 16, 2005, a letter was sent to the property owners in the proposed district introducing the project and inviting them to a meeting. During the meeting (attended by 12 property owners) on March 10, 2005, 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 70 property owners, 42(60%) of whom are in favor of the project, 20(29%) of whom are not in favor of the project, and 8(11 %) having no preference. RESOURCE IMPACT Funds for this project are included in the FY 2004/05 Utilities Department Electric CIP budget. 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 average cost per property owner will be approximately $4,500. 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 fundsJrom 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. POLICY IMPLICATIONS The resolution of intent does not represent any changes to existing City policy and is consistent with the Council-approved Utilities Strategic Plan to invest in utility infrastructure to deliver reliable service. TIMELINE The first step in the establishment of the district is Council adoption of a Resolution of Intent to establish Underground Utility District No. 41. 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 City Council meeting on July 11, 2005. 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 SBC and Comcast prior to starting engineering design. . CMR:200:05 Page 2 of3 .' The first Council action required to initiate the procedure will be adoption of the Resolution of Intent to establish Underground District No. 41. Below is the tentative project schedule: Action Date 1. Resolution of Intent to establish Underground District No. 41 April 11 , 2005* 2. Public Hearing June 6, 2005* 3. Award of construction contract and Joint Construction January 2006* Agreement with SSC/Comcast 4. Substructure (conduits, vaults, etc.) installation by Contractor February 2006 through July 2006 5. Installation of underground facilities (cable, switches, etc.) August 2006 through October 2006 6. Resolution determining properties electing to pay service April 2006* conversion cost over a period of 10 years 7. Service conversion work by property owners October 2006 through January 2007 8. Pole removal and project completion February 2007 through May 2007 * Denotes Council Action ENVIRONMENTAL REVIEW This project is categorically exempt from CEQA under Section 15302. ATTACHMENTS A: Resolution B: Underground Conversion Projects C: Underground Utility District No. 41 Boundary Map PREPARED BY: . DEPARTMENT HEAD: CITY MANAGER APPROVAL: Assistant City Manager CMR:200:05 Page 3 of3 ***NOT YET APPROVED*** 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 41 The Council of the City of Palo Alto does RESOLVE as follows: SECTION 1. 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 41 of the City of Palo Alto, commonly known as Colorado Avenue/Middlefield Road/Oregon Expressway/Cowper Street. 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 Al to, encompassing the areas contiguous with 'portions of Colorado Avenue/Middlefield Road/Oregon Expressway/Cowper Street. Underground Utility District Number 41," 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 Palo Alto and the Pacific Bell Company doing business as SBC California, all poles and overhead lines and associated structures used or useful in supplying electric, communication or similar and associated 1 050421 c1 0072528 ***NOT YET APPROVED*** 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 11th day of July, 200S, at the hour of 7:00 p.m., in the regular meeting place of its City Council, Civic Center, Palo Alto, California, is hereby fixed as the time and place when and where 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 structures, 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 1007 Elwell Court, Palo Alto, California, 94303, or by calling (650) 566-4506. II II II II II II II II II II 2 050421 cl 0072528 / ***NOT YET APPROVED*** 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: City Clerk Mayor APPROVED AS TO FORM: APPROVED: Senior Asst. City Attorney City Manager Director of Utilities 3 050421 clOO72528 'i UNDERO PROPOSED UNDRRCROUND D1STRIr:I1!; (lOlII!lI'tiI-~ lJQlIm''''-~ llI:IlII!11m-~ ,IJOJ.:/TM-~ rclltfrH6-~ "'_01---..,...,. .. --_. ..,-.. ---. "_H--_ "'_ .. --.., .. _ .. ---",,.,,,,n--.., .. _ .. ---......... ---I» II1T 111-.. ""-,.---......... --tm ......... --tm ... IIIJHH--_ ""-"'--"'" .. _ .. ---"''''''Ifr--'''' "_",--rm .. _ .. --... .. ........ --." "''''''at--_ """IU--"" .. _ .. ---"'''''IU--_ .. _ ... ---.......... ---"".."."'---"" ...... ---"'..,. ... ---r."_,,,--_ ""S""--_ "'_m--_ "' ....... --. """1""--_ ...... _---..... "'--"" Iial6!llm-_ ATTACHMENT B S1J:1':_AVV\rl..u"""IICI\T"'c....~A"''''' •• Attachment C = = -OREGON EXPRESSWAY ,1I1t"---__t1-2420 ~ 2425 2440 Ul 2435 11I1-----'iIro----tIOIIl----1 2450 ~ 2451 H-----lII!l'IlIllI---........ ---1I :;0 2466 m 2465 r-,--~II~~IIIt~~~,-~II:~III-----1 2479 I------.-----l 2670 8 __ ~~682 ~'''~---l mil" ~ ~ (J'1 __ .-,....2_6_9_0 --l;;lJ 2695 ..... :::.: ::t (J'1 ()) (J'1 __ ~2_6_9_8--l~~~~~~~~~ 2702 fg'~~~~~~r~~~1I __ -'[ 2712 ~ g ~ ~ ~ ---I":2:l7~24~Ur.....l....,~~}»0 2717 .. 2708 (J) pr~::~::a~ 1 "'0 2727 i--------:r 2718 ~ 1----1 2737 1----. 2728 8 I-~--l C 2757 1----I-~2~73:81 ?:l f------l 2767 2758 1111-----11 277 2777 2787 OJ 8 OJ 0> ..... .... N ()) APPROVED 15 Mar 2005 Patrick Valath Underground District No. 41 SR. ENGINEER / MANAGER ENGR. PEV DRWN POD CHKO. PEV Boundary Map City of Palo Alto California UTILITIES, ELECTRIC ENGINEERING ~ '-------'---ill I Cl II~---l Cl 2502 2518 2534 11\\----'-1 2560 2576 'REV. 'DATE APPR. MAP# CKT#, SCALE r mlll----l !! m 1------+ r °111 __ --+ ;;0 ~ 111-----1 Cl SAP 4000 2540 , DESCRIPTION W.O.#/DRAWING# 22187 NTS t--==-~--==---:---t SHEET OF 1