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Home My WebLink AboutFinal-Staff-Report-ID-3232_Public-Hearing-for-UD-No-47 City of Palo Alto (ID # 3232) City Council Staff Report Report Type: Action Items Meeting Date: 12/10/2012 City of Palo Alto Page 1 Summary Title: Public Hearing For Underground District No. 47 Title: Public Hearing: Adoption of an Ordinance Establishing Underground Utility District No. 47 (Middlefield Road/Addison Avenue/Cowper Street/Homer Avenue) by Amending Section 12.16.02 of the Palo Alto Municipal Code From: City Manager Lead Department: Utilities Recommendation Staff recommends that Council adopt the attached Ordinance to create Underground Utility District No. 47 and thereby amend section 12.16.02 of the Palo Alto Municipal Code. Background At its meeting on September 10, 2012, the Council passed Resolution of Intent No. 9285 to establish Underground Utility District No. 47 [Staff Report ID# 2947]. The Council meeting of December 10, 2012 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 October 12, 2012. The Electric Utility’s undergrounding project areas are selected and recommended to AT&T and Comcast based on the age and maintainability of the existing overhead electric system. AT&T and Comcast determine whether the recommended area meets their criteria for undergrounding, based on the guidelines established by the California Public Utilities Commission (CPUC). The attached Exhibit “A” shows the boundaries of underground district No. 47 that encompasses portions of avenues, roads, and streets of Homer, Cowper, Addison, Middlefield, Channing and Webster. Underground Utility District No. 47 meets the City’s and CPUC’s guidelines for undergrounding overhead utility lines. Discussion City of Palo Alto Page 2 This underground project will result in the removal of 34 poles and provide underground services to 82 properties consisting of largely residential and a small percentage of commercial property. Completion of this project will result in higher reliability, increased safety due to elimination of poles and improved aesthetics. If an underground district is created, the Utilities Department will prepare plans and specifications and obtain bids for installation of the underground substructure. Underground substructure construction consists of the installation of conduits, vaults, pads and boxes. The Utility will then install the electric distribution cables, transformers and switches upon completion of the substructure installation. After the new underground system (cable, transformers, switches, etc.) has been tested and energized, the property owners will be notified that they have 60 days to connect to the new underground system. Upon completion of the new connections, Utility crews will remove the overhead power lines, and telephone crews will complete the project by removing the remaining telephone and cable TV (CATV) facilities and poles. Timeline Once the Public Hearing is completed and if Council decides to proceed with the project, the following scheduled is proposed: Serial Number Action Date 1. Public Hearing and first reading of Ordinance Establishing Project Area as UUD No. 47 December 10, 2012* 2. Second Reading of Ordinance January 14, 2013* 3. Letters to property owners with approved Ordinance Chapter 12.167 of Municipal Code, and update February 11, 2013 4. Award of construction contract and Joint Construction Agreement with AT&T/Comcast July 2013* 5. Substructure (conduits, vaults, etc.) installation by Contractor August 2013 through November 2013 6. Installation of underground facilities (cable, switches, etc.) December 2013 through March 2014 7. Resolution determining properties electing to pay service conversion cost over a period of 10 years May 2014* 8. Service conversion work by property owners June 2014 through City of Palo Alto Page 3 August 2014 9. Pole removal and project completion September 2014 through November 2014 *Denotes Council Action Resource Impact The total cost of the project is estimated at $1,800,000. An estimated $750,000 will be for the installation of telephone and CATV conduit and boxes for which the City will be reimbursed by AT&T and Comcast. For fiscal year 2012-2013, $150,000 has been designated for planning and engineering of this project and is budgeted in 2012-2013 Electric Capital Improvement Program. 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. 17. The total cost for the property owners requiring service conversions from overhead to underground has been estimated at $296,000. The property owners have been offered the option of financing their service conversion costs over a period of ten years in accordance with the procedure given in Sections 12.16.090 through 12.16.096 of the Palo Alto Municipal Code. Policy Implications This recommendation is consistent with the Council approved Utilities Strategic Plan to invest in utility infrastructure to deliver reliable service. Environmental Review This project is categorically exempt from the California Environmental Quality Act under Public Resources Code Section 15302(d) (conversion of overhead electric utility distribution system facilities underground). Attachments:  Attachment A: Underground District No. 47 Boundary Map (PDF)  Attachment B: Ordinance No. XXXX (PDF)  Attachment C: Resolution No. 9285 (PDF) 1 121105 dm 6051811 Ordinance No.__________ Ordinance of the Council of the City of Palo Alto Establishing Underground Utility District No. 47 (portions of Homer, Cowper, Addison, Middlefield, Channing and Webster) by Amending Section 12.16.020 of the Palo Alto Municipal Code R E C I T A L S A. This Council, on September 10, 2012, adopted Resolution No. 9285, declaring its intention to establish Underground Utility District No. 47 in the City by amending Section 12.16.020 of the Palo Alto Municipal Code and by such Resolution appointed Monday, December 10, 2012, at the hour of 7:00 o'clock 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 B. Notice was given of the time and place for the public hearing stated in the manner provided by law, as appears from the affidavits on file in the office of the City Clerk; and C. Said matter came on regularly for hearing at the time fixed; and D. All written protests and other written communications were publicly read at said meeting and evidence duly taken and all persons desiring to be heard were fully heard. The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. 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. 9285. SECTION 2. Section 12.16.020 of the Palo Alto Municipal Code is hereby amended by adding Subsection (47) thereto to read as follows: “(47) District No. 47. All of the area in the County of Santa Clara, City of Palo Alto, encompassing the areas contiguous with portions of the following avenues, roads, and streets: Homer, Cowper, Addison, Middlefield, Channing and Webster, all as more particularly described on that certain map entitled "Proposed Underground District No. 47 Homer/Cowper/Addison/Middlefield/Channing/Webster” 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. 9285. 2 121105 dm 6051811 SECTION 4. The City Council hereby finds that the adoption of this ordinance is categorically exempt from the California Environmental Quality Act under Public Resources Code Section 15302 (conversion of overhead electric distribution facilities to underground). 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: City Manager _____________________________ ______________________________ Senior Deputy City Attorney Director of Utilities