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Home My WebLink About2003-12-08 City CouncilCity of Palo Alto City Manager’s Report 10 TO:HONORABLE CITY COUNCIL FROM:CITY MANAGER DEPARTMENT: UTILITIES DATE: SUBJECT: DECEMBER 8, 2003 CMR:512:03 PUBLIC HEARING AND ADOPTION OF ORDINANCE ESTABLISHING UNDERGROUND UTILITY DISTRICT NO. 39 (SHERMAN/EL CAMINO REAL/PAGE MILL/PARK BLVD) RECOMMENDATION Staff recommends that Council adopt the attached Ordinance to create Underground Utility District No. 39 and thereby amend section 12.16.020 of Chapter 12.16 of Title 12 of the Palo Alto Municipal Code. BACKGROUND At its meeting of October 27, 2003, the Council passed Resolution of Intent No. 8350 to establish Underground Utility District No. 39. The Council meeting of December 8, 2003, 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 November 6, 2003. 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 the criteria for undergrounding, based on the guidelines established by the California Public Utility Commission (CPUC). The attached Exhibit "C" shows the existing and planned underground districts. Underground Utility District No. 39 meets the City’s and CPUC’s guidelines for undergrounding overhead utility lines. Cost-sharing of underground utility district projects has been determined by Agreement between the City, SBC, and Comcast. The cost for joint trench bid items is determined using a space/cost allocation formula, which divides the minimum trench area required for each trench occupant, individually, by the sum of the minimum trench areas for all occupants. CMR:512:03 Page 1 of 4 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 Utilities Department 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 The total cost of the project is estimated at $1,315,000. The majority of the cost will be for the substructure installation for underground facilities ($750,000). The remaining money will be utilized for design engineering ($150,000), electric equipment & cables ($250,000), and removal of overhead facilities ($100,000). SBC and Comcast will reimburse approximately $375,000 to the City for the installation of telephone and CATV conduits and boxes in accordance to an agreement with the three parties (discussed above). Funds for the construction and installation of this project have been budgeted in the 2003-2004 Electric Fund 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 $65,000. 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 Section 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. The project furthers Program L- CMR:512:03 Page 2 of 4 80 (the continuation of citywide undergrounding of utility wires) and L-81(the use of compact and well-designed utility elements) of the Comprehensive Plan. TIMELINE Once the public hearing is completed and if Council decides to proceed with the project, then the following will occur as proposed: Date December 8, 2003* Action Introduction and first reading of Ordinance Establishing Project Area as Underground Utility District No. 39 Second reading and adoption of Ordinance. Award of construction contract and Joint Construction Agreement with SBC/Comcast. Substructure (conduits, vaults, etc.) installation by Contractor Installation of underground facilities (cable, switches, etc.) Resolution determining properties electing to pay service conversion cost over a period of 10 years Service conversion work by property owners Pole removal and project completion 2.December 15, 2003* 3.July 2004* 4.July 2004 through November 2004 5.January 2005 through April 2005 6.April 2005* 7.May 2005 through August 2005 8.September 2005 through December 2005 *DenotesCouncilAction ENVIRONMENTAL REVIEW This project is categorically exempt from the California Environmental Quality Act under Section 15302. ATTACHMENTS A: Ordinance B: Underground Utility District No. 39 Boundary Map C: Underground Conversion Projects CMR:512:03 Page 3 of 4 PREPARED BY: DEPARTMENT HEAD: CITY MANAGER APPROVAL: ~In THOMPStON Senior F~ectric Pro2[ec~ Engineer/t3(( ~cto~ of Utilities Assistant City Manager CMR:512:03 Page 4 of 4 ***NOT YET APPROVED*** ORDINANCE NO. ORDINANCE OF THE COUNCIL OF THE CITY OFPALO ALTO AMENDING SECTION 12.16.020 OF CHAPTER12.16 OF TITLE 12 OF THE PALO ALTO MUNICIPAL CODE BY ESTABLISHING UNDERGROUND UTILITY DISTRICT NO.39 The Council of the City of Palo Alto does ORDAIN as follows: SECTION i. Findings and Declarations. finds and declares as follows: The City Council (a) This Council, on October 27, 2003, adopted Resolution No. 8350, 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 in the City and by such Resolution appointed Monday, December 8, 2003, at the hour of 7:00 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. (b) Notice was given of the time and place therein stated in the manner provided by law, as appears from the affidavits on file in the office of the City Clerk. (c) This matter came on regularly for hearing at the time therein fixed. (d) All written protests and other written communications were publicly read at this meeting and evidence duly taken and all persons desiring to be heard were fully heard. (e) 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. 8350. SECTION 2. Section 12.16.020 of Chapter 12.16 of Title 12 of the Palo Alto Municipal Code is hereby amended by adding Subsection (39) thereto to read as follows: ~(39) District No. 39. All of the area in the County of Santa Clara, City of Palo Alto, encompassing the areas contiguous with portions of Sherman/Grant/Sheridan/Page-Mill/Park Blvd./Birch/Ash and E1 Camino Real 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." 031202 cl 0072339 1 ***NOT YET APPROVED*** 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. 8350. SECTION 4. The City Council hereby finds that the adoption of this ordinance constitutes the approva! of a project that is categorically exempt from environmental review under the California Environmental Quality Act. SECTION 5. This ordinance shall become effective upon the expiration of thirty (30) days from its passage. INTRODUCED: PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST: City Clerk APPROVED AS TO FORM: Mayor APPROVED: Senior Asst. City Attorney City Manager Director of Utilities 031202 cl 0072339 LEGEND PROJECT BOU_~A_RY 231 270 / 2500 -2516 385 t’ 300-362 ~-_4ZLS399 231 360 398 ...........STREET ’ ~~ 4__Q04 I -- -~408 425 425425 ~ 445 444 P 455 410 5 451 456 -64453470 -78 466 4 APPROVED 24 MAR 03 TOMM MARSHALL ENGR.MANAGER I ENGR I GJ DRA.WN PD CHECKEDI JT UNDERGROUND CONVERSION DISTRICT NO. 39 BOUNDARY MAP ~\l/&.. Cffy of Palo Alto ~\~ California~UTIU’[IES. ELECTRIC ENGINEERING IREVi DATE SCALE DESCRIIPTION I APPR WORK ORDER DRAWING NO. i"=200’22072 .,9-,.,M-S