HomeMy WebLinkAbout2004-01-20 City Council (3)TO:
City of Palo Alto
City Manager’s rt
HONORABLE CITY COUNCIL
FROM:CITY MANAGER DEPARTMENT: UTILITIES
DATE:JANUARY 20, 2004 CMR:ll5:04
SUBJECT:RESOLUTION OF INTENT TO EST.M~LISH UNDERGROUND UTILITY
DISTRICT NO.40:1700 TO 1900 BLOCK OF EDGEWOOD DRIVE
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 Uti.lity District No. 40.
BACKGROUND
The Electric Utility’s undergrounding project areas are selected and reconmlended to
SBC and Comcast based on the age and maintainability of the existing overhead electric
system. SBC and Comcast determine whether the recommended area meets the criteria
for undergrounding based on guidelines established by the California Public Utility
Conmaission (CPUC). The attached Exhibit A shows the existing, current, and future
underground districts. The area now proposed as Underground Utility District No. 40
meets the City and CPUC guidelines for undergrounding overhead utility lines.
DISCUSSION
This underground project will result in the removal of 9 poles and provide underground
smwice to 18 residential properties. Completion of this woject will eliminate overhead
distribution lines in an area bordered 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 desi~ 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
CMR:115:04 Page 1 of 4
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.
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 significam change in cost allocation for projects with joint trench participation
with SBC.
On November 11, 2003, 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
5 property owners) on December 10, 2003, staff explained the details of the prqject 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 fi’om 8 property owners, 5 (62.5%) of whom are in favor of the
project, 1 (12.5%) of whom are not in favor of the project, and 2 (25%) of whom have no
preference.
RESOURCE IMPACT
Funds for this project are included in the FY 2003/04 Utilities Department Electric
Capital Improvement Program 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 $3,500.
Property owners will be offered the option of financing theh- service conversions under
Section 12.16.091 of Palo Alto Municipal Code. In that case, customers borrow funds
form 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 determined by a prescribed
fom~ula and approved by the Council.
CMR:115:04 Page 2 of 4
POLICY ISIPLICATIONS
The adoption of this resolution 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.
TIMELINIE
The first step in the establishment of the district is Council adoption of a Resolution of
Intent to establish Underground Utility District No. 40. The Resolution defines the
district boundaries and sets a time and place for a public heating on the matter. The
public hearing has been tentatively scheduled for the City Council meeting on March 22,
2004. At the public heating, 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 desigaa.
The first Council action required to initiate the procedure will be adoption of the
Resolution of Intent to establish Underground District No. 40. Below is the tentative
project schedule:
Action
I. Award of construction contract and Joint Construction Agreement
with SBC!Comcast
2. Substructure (conduits, vaults, etc.) installation by Contractor
3. Installation of underground facilities (cable, switches, etc.)
4.Resolution determining properties electing to pay service
conversion cost over a period of I0 years
5.Service conversion work by pro.perty owners
6. Pole removal and project completion
*Denotes Council Action
Date
April 2004*
May2OO4throughlune 2004
July 2004through August
2004
June 2004*
August 2004 through
September 2004
December 2004
ENVIRON1VIJENTAL REVIEW
This project is categorically exempt from CEQA under Section 15302.
CMR:115:04 Page 3 of 4
ATTACHMENTS
A: Resolution
B: Underground Conversion Projects
C: Underground Utility Dista’ict No. 40 Boundai3, Map
PREPARED BY:
DEPARTMENT HEAD:
CITY MANAGER APPROVAL:
PATRICK VALATH
Senior Project
EMIL~i~HARRISON
Assistant City Manager
CMR:115:04 Page 4 of 4
***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 40
The Council of the City of Palo 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 40 of the City of Paio Alto,
commonly known as 1700-1900 Block of Edgewood Drive.
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 the North side of 1700-1900 block
of Edgewood Drive. Underground Utility District
Number 40," 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 shal!
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
services in the proposed District shall be removed, and from and
040113 cl 0072350
***NOT YET APPROVED***
after the date no person or utility shal! 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 22nd day
of March, 2004, 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 Elwe!l Court, Pa!o Alto, California, 94303, or by calling
(650) 566-4506.
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040113 cl 0072350
***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 !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:
City Clerk
APPROVED AS TO FORM:
Mayor
APPROVED:
Senior Asst. City Attorney City Manager
Director of Utilities
040113 cl 0072350
UNDE PROJECT
ATTACHME
’ APPROV~
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SR. ENGINEER I MANAGER
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Project Boundary , ,
City of Palo Alto ~1 c~z# t~c~t
California ~a HB3 I NTS I 22103UTILITIES, ELEC~IC ENGINEERING 19 SH~ t OF 1
SAP# 40000-~7-5
900 Edeewood Dr.DESCRIPTION