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Home My WebLink About2003-10-27 City Council (6)City of Palo Alto City Manager’s Report TO:HONORABLE CITY COUNCIL 2 FROM:CITY MANAGER DEPARTMENT: UTILITIES DATE:OCTOBER 27, 2003 CMR:439:03 SUBJECT:RESOLUTION OF INTENT TO ESTABLISH UNDERGROUND UTILITY DISTRICT NO. 39 SHERMAN/EL CAMINO REAL/PAGE MILL/PARK BLVD 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. 39. BACKGROUND At its July 14, 2003 meeting, Council adopted Resolution of Intent No. 8316 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 No. 39. Section 6 of that resolution gave notice that the public hearing would occur on Monday, September 29, 2003, Due to errors in noticing by the Utilities Department, the proposed public hearing scheduled for September 29, 2003 did not occur. A new resolution of intent is attached setting December 8, 2003 at 7:00 p.m., in the regular meeting place the City Council, Civic Center, Palo Alto, California, as the time and place when and where the Council would hear all protests and receive evidence for and against the action proposed, and when and where the Council would consider and finally determine whether the public necessity, health and safety required-the establishment of the Underground Utility District. The resolution also repeals the previously adopted resolution. CMR:439:03 Page 1 of 3 DISCUSSION This underground project will result in the removal of 40 poles. All of the poles are located along the streets. Completion of this project will result in higher reliability 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 construction. 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 CATV facilities and poles. RESOURCE IMPACT Funds for this project are included in the FY02/03 Utilities Department Electric Capital Improvement Project program budget. 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 postponement of the public heating will not delay the project schedule for the proposed Underground Utility District No. 39. Award of the construction contract will still be scheduled for July of 2004. Completion of the project is scheduled for December of 2005. The public heating date for the proposed Underground Utility District No. 39 has been scheduled for the City Council meeting on December 8, 2003. 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. 39. Below is the tentative project schedule: CMR:439:03 Page 2 of 3 Action Date I.Resolution of Intent to establish Underground District No. 39 October 27, 2003* 2.Public Hearing December 8, 2003 3.Award of construction contract and Joint Construction Agreement with July 2004* SBClComcast 4.Substructure (conduits, vaults, etc.) installation by Contractor July 2004 through November 2004 5.Installation of underground facilities (cable, switches, etc.)January 2005 through April 2005 6.Resolution determining properties electing to pay service conversion April 2005* cost over a period of I 0 years 7.Service conversion work by property owners May 2005 through August 2005 8.Pole removal and project completion September 2005 through December 2005 *Denotes Council Action ENVIRONMENTAL REVIEW This project is categorically exempt from CEQA under Section 15302. ATTACHMENTS A: Resolution B: CMR 291:03 PREPARED BY:Jim ~nompson & Gopal Jagannath DEPARTMENT HEAD: ~’H ctor of Utilities CITY MANAGER APPROVAL: HARRISON Assistant City Manager CMR:439:03 Page 3 of 3 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 39 AND REPEALING RESOLUTION NO. 8316 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 al! 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 39 of the City of Palo Alto, commonly known as Sherman/El Camino Real/Page Mill/Park Blvd. 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 E1 Camino Real, Sherman Avenue, Grant Avenue and Sheridan Avenue, Page Mill Road and Park Boulevard, all as more particularly described on that certain map entitled "Sherman/El Camino Real/Page Mill/Park Blvd. Underground Utility District Number 39," 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 1 031022 cl 0072286 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 December 8, 2003, 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 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. 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. // // // 031022 c10072286 SECTION ~0. hereby repealed Resolution No. 8316, adooted July 14, 2003, is 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 031022 c10072286 ATTACHMENT TO:HONORABLE CITY COUNCIL 3 FROM:CITY MANAGER DEPARTMENT: UTILITIES DATE: SUBJECT: JULY 14, 2003 RESOLUTION OF INTENT TO ESTABLISH UTILITY DISTRICT NO. 39 SHERMAN/ EL PAGE MILL / PARK BLVD CMR: 291:03 UNDERGROUND CAMINO REAL/ 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. 39. 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 Comcast 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. The area now proposed as Underga’ound Utility District No. 39 meets the City and CPUC guidelines for undergrounding overhead utility lines. DISCUSSION This underground project will result in the removal of 39 poles and provide underground service to 124 commercial and residential properties. Completion of this project will eliminate overhead distribution lines in an area bordered by existing underground districts and enhance reliability of the electric distribution system while improving aesthetics. CMR:291:03 Page 1 of 4 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 t he new underground systems ( cable, transformers, s witches, 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 significant change in cost allocation for projects with joint trench participation with SBC. On March 17, 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 7 property owners) on May 1, 2003, 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 fi-om 70 property owners, 42(60%) of whom are in favor of the project, 25(36%) of whom are not in favor of the project, and 3(4%) of whom are undecided. RESOURCE IMPACT Funds for this project are included in the FY 2003/04 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 $3,500. 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 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 approved by the Council. CMR:291:03 Page 2 of 4 POLICY IMPLICATIO?~ _. The award of this contract 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. 39. 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 September 29, 2003. 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. The first Council action required to initiate the procedure will be adoption of the Resolution of Intent to establish Underground District No. 39. Below is the tentative project schedule: Action Date I. Award of construction contract and Joint Construction Agreement July 2004 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 property owners 6. Pole removal and project completion *Denotes Council Action July 2004 through November 2004 January 2005 through April 2005 April 2005* May 2005 through August 2005 September 2005 through December 2005 CMR:291:03 Page 3 of 4 ENVIRONMENTAL REVIEW This project is categorically exempt from CEQA under Section 15302. ATTACHMENTS A: Resolution B: Underground Conversion Projects C: Underground Utility District No. 39 Boundary Map PREPARED BY: DEPARTMENT HEAD: CITY MANAGER APPROVAL: Jim Thompson & G0/pal Jagannath 3D,~tor of Utilities EMI~YY t-iA~IgO~ -- Assistant City Manager CMR:291:03 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 ?ALO ALTO MUNICIPAL CODE BY ESTABLIS<!NG UNDERGROUND UTILITY DISTRICT N0-MBER 39 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 zhe intention of the Council, pursuant to Section 12.16.040 of Chapter 12.16 of Title 12 of the Palo 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 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 39 of the City of Palo Alto, commonly known as Sherman/E! Camino Rea!/Page Mill/Park Blvd. SECTION 3. The description of the area comprising the District is as follows: All of the area in the Cou_nty of Santa Clara, City of Palo Alto, encompassing the areas contiguous with portions of E1 Camino Real, Sherman Avenue, Grant Avenue and Sheridan Avenue, Page Mill Road and Park Boulevard, all as more particularly described on that certain map entitled "Sherman/El Camino Real/Page Mill/Park Blvd. Underground Utility District Number 39," 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 D~ {:rict any pole, overhead limes or associated overhead structure uscl or usefu! 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 facii=~ies within the District to be constructed by the City of Pa!o Alto and the Pacific Bell Company doing business as SBC California, all 030527 syn 0072286 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 29th day of September, 2003, at the hour of 7:00 p.m., in the regular meeting place of is City Council, Civic Center, Paio 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 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 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 Electrica! Engineering Manager, Department of Utilities, City of Pa!o 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, Pa!o Alto, California, 94303, or by calling (650 566-4506. 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 rol! 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 // // // // // 030527 syn 00722Z6 2 the cost of converting hi:~ or her or their service connection to underground !ocations ove:: a period of years. Such ~< rice shal! conform to Section 12.16.092 of Chapter 12.16 of Title 12 of the Code. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTE}{TIONS: ATTEST:APPROVED: City Clerk APPROVED AS TO FORM: Senior Asst. City Attorney Mayor City Manager Director of Utilities 030527 syn 0072286 P~OJECT LEGEND 23! 2500 -2516 270 300 -362 399 PARK ASH 231 ! 360 398 303 -315 1.1 ~ ~,~1 42_~5 ~ ~410 II 409 1!4z 445 ~ I ~ I1~ ,44 451453 EL CAMINO ILEAL APPROVED 24 MAR 03 TOMM MARSHALL ENGR. MANAGER DRA~N I PD CHECKED ]JT UNDERGROUND CONVERSION DISTRICT NO. 39 BOUNDARYMAP ~\ll~ City of Palc;: Alto California UTILITIES,- ELECTRIC ENBINEERING REV DATE DESCRIPTION APPR SCALE i" =200’ WORK ORDER 22072 DRAt/!NG NO. 39-BM-S-001