CC - Item 8G - Proposed underground District Project Walnut Grove Avenue - Rule 20AROSEMEAD CITY COUNCIL
STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: JEFF ALLRED,
DATE: JUNE 22, 2010.
CITY MANAGER
SUBJECT: PROPOSED UNDERGROUND DISTRICT PROJECT
WALNUT GROVE AVENUE - RULE 20A
SUMMARY
Rule 20A was developed to carry out a California Public Utility Commission (PUC)
decision to encourage local governments to underground overhead electric facilities.
The program requires public utility companies to set aside funds on a regular basis for
undergrounding of existing overhead facilities. To qualify a project for Rule 20A
funding, a city is required to determine that undergrounding of the subject overhead
facilities will be in the general public's interest and also create an underground district.
The City of Rosemead has an approximate current cumulative balance of $1.5 million
on deposit with Southern California (SCE), with a continuing annual allowance of
$170,459.
Staff Recommendation
It is recommended that the City Council authorize staff to begin the process of
establishing an underground utility district, as per the Rosemead Municipal Code, RMC
13.20. The proposed project will include Walnut Grove Avenue from Marshall Avenue
to Valley Boulevard and be administered by SCE with completion anticipated in
approximately three years.
DISCUSSION
Background
Rule 20A is a set of policies and procedures established by the PUC to regulate and
fund the conversion of overhead electric equipment to underground facilities, a process
called "undergrounding". Under Rule 20A, undergrounding projects are financed by
certain monies set-aside for communities by utility companies. Funding is based upon a
CPUC formula. If needed, communities can supplement Rule 20A funds with other
funding sources.
Generally, Southern California Edison (SCE) owns and maintains most of the power
ITEM NO. ~
APPROVED FOR CITY COUNCIL AGENDA:
City Council Meeting
June 22, 2010
Page 2 of 6
poles in the City. SCE operates two different types of overhead facilities, transmission
and distribution lines. The transmission line system provides high voltage service to a
large regional area. The distribution line system receives power from the transmission
system and makes electricity available at a usable voltage to smaller regional areas.
Telecommunication service lines and cable service providers are also found on SCE
distribution poles, and service the same parcels as SCE.
The process of placing the overhead utilities underground is the responsibility of the
respective utility companies involved. SCE, as lead agency, contracts for the
excavation of the necessary trenches within the public right-of-way, and installs the
conduit and lines for the transmission and distribution of electrical power to consumers.
Telecommunications and other service providers using the same poles follow suit by
placing their respective facilities in the same trench if it is practical to do so. The cost
for trench repair is paid for by the respective utility companies as a part of the
underground district costs. Existing overhead connections to adjacent parcels must be
done by providing a service lateral which is included in the underground district costs.
Connecting to a new service lateral also requires converting the customer/property
owners' service meter panel or service entrance to the underground service. The
customer/property owner can be responsible to pay for the conversion per Rule 20A
guidelines, although it is allowed and recommended that the conversion cost be
incorporated into the underground district cost to expedite the efficiency and completion
of the project. Once all underground facilities are activated, the respective utility
providers remove the overhead lines and the power poles are then pulled from the
ground.
Previous City Underground Districts
Historically, City undergrounding projects funded with Rule 20A funds have
concentrated on major thoroughfares or near areas of public interest. A good candidate
for undergrounding is a street that will be enhanced for both safety and aesthetics.
Since establishing the City's Underground Utility Ordinance (Attachment 1), the City has
established 8 underground districts as follows:
Underground
District Number
Year
Established
General Vicinity
1
1973
Mission Boulevard
2
1978
Garvey Avenue
3
1985
Garvey Avenue
4
1986
Valle Boulevard
5
1995
Del Mar Avenue
6
1995
Walnut Grove Avenue
7
1995
San Gabriel Boulevard
8
1995
San Gabriel Boulevard
City Council Meeting
June 22, 2010
Page 3 of 6
Developing a New Underground District
To qualify for full funding, projects must produce a benefit to the general public, not just
customers in the affected area, by satisfying one or more of the following criteria:
• The location has an unusually heavy concentration of overhead facilities in public
and private properties
• The location is extensively used by
volume of pedestrian or vehicular traffic
• The location qualifies as an arterial
general plan
• The overhead equipment must be
recreational or scenic area
the general public and carries a heavy
or collector road in a local government
located within or pass through a civic,
The above criteria provides for considerable latitude in identifying potential projects to
be funded by Rule 20A. SCE allocates funding to communities based on previous
allocations, the ratio of customers served by overhead facilities relative to all customers
within the community, and the ratio of customers in the community in comparison to all
customers serviced by the SCE. Currently, Rosemead's annual allocation is $170,459,
but could slightly vary from year-to-year. Due to limitations of funds, local municipalities
usually wait and accumulate their allocations for years before starting an
undergrounding project.
Selection of Walnut Grove Avenue
Staff met with SCE representatives regarding Rule 20A and requested an initiation of a
study for the formation of an underground utility district- The study targeted Walnut
Grove Avenue from Marshall Avenue to Mission Drive due to the following reasons:
• Undergrounding will enhance safety and have a positive aesthetic impact in the
area.
The estimated project timing will coincide with planned street rehabilitation work
in the area.
The area serves as a major entry point into the City and has already undergone
traffic and beautification improvements.
SCE prepared an analysis and presented four options (Attachment 2). In reviewing the
options, staff, in coordination with SCE representatives selected the option of utility
undergrounding on Walnut Grove Avenue, from Marshall Avenue to Valley Boulevard.
Staff requested SCE to prepare a rough order of magnitude (ROM) cost estimate for
this project.
SCE prepared the ROM and estimated a construction cost of $2.70M, based on 2009
prices. Because the project construction will not begin until around 2014, this cost was
City Council Meeting
June 22, 2010
Page 4 of 6
forward estimated by SCE to be $3.45M, assuming a cost escalation of about 28% for
the next four (4) years. However, staff considers that the 28% cost increase is
extremely conservative and adjusted this rate to a more reasonable and yet
conservative rate of 15%. This adjustment placed the estimated project cost at $3.10M
by the year 2014.
Rule 20A allows communities to initiate construction projects based on their projected
allocation accrual, up to the start of construction- In addition, the Rule also allows the
,'mortgaging", or the use of anticipated annual allocations, of up to five (5) future years
from start of construction. Following is a cost projection and analysis for the Walnut
Grove Avenue project:
City of Rosemead Allocation Analysis
Estimated Construction Cost
2009 Estimate
2014 Estimate
(Assumes a 15% increase from 2009)
Estimated Rule 20A Balance
Current Balance
Projected Future Allocation
Annual Allocation $170,000
Projected Start Date 2014 x 4 years
$680,000
Projected Mortgaged
Allocation
Annual Allocation $170,000
5-Year Allocation Beyond Start Date x 5 years
$850,000
$ 2,700,000
$ 3,100,000
$ 1,520,000
$680,000
$850,000
Projected Total Allocation $ 3,050,000
Difference $ (50,000)
(Shortage Represents City Contribution to Project)
City Council Meeting
June 22, 2010
Page 5 of 6
Process
If the proposed location is approved by the City Council, staff will invite all affected
residents, tenants and/or business owners to an informational meeting to explain the
impact of the project and initiate the public hearing process. Subsequently the City
Council would adopt a resolution establishing the underground district and authorize the
use of the City's Rule 20A funds for this purpose.
The scope of work for the construction includes the undergrounding of existing
electrical, telephone and cable wires, and the removal of wood poles. The streetlights
that are attached to wood poles would be removed and new street lights poles would be
installed. All work related to the undergrounding project will be funding using Rule 20A
monies. Existing overhead facilities belonging to ATT Communications, Inc., Charter
Communications Inc. and other private utilities will be relocated underground at the
companies' expenses.
Schedule
City Council Approves Location/ - June 22, 2010
Time and Place for a Public Hearing
Notice of Public Hearing Mailed to - June 23, 2010
Property Owners
Community Meeting on Proposed District - July 2010
City Council Conducts Public Hearing/ - September 14, 2010
Considers Establishing Underground
District #9 Walnut Grove Avenue
Construction Starts - March 2014
FINANCIAL REVIEW
Edison will fund this project from the City's current and future accumulated Rule 20A
allocation balance, which will amount to approximately $3.05M by the construction date
of 2014. Rule 20A provides monetary credit to the City account but this allocation
should not be viewed as hard cash that can be used for other than utility
undergrounding purposes. The City has an annual allocation of approximately
$170,000. The Rule 20A program allows the City's to "spend ahead" (mortgage) for five
years, allocating an additional amount of $852,000. This will provide a total allowance of
approximately $3.05M for this project by the year 2014.
ENVIRONMENTAL REVIEW
City Council Meeting
June 22, 2010
Page 6 of 6
The project is categorically exempt from the
(CEQA) pursuant to Section 15304 (a) and (f)
This exemption covers projects involving minor
significant effect on the environment.
California Environmental Quality Act
of the CEQA Implementing Guidelines.
alterations of land that do not have a
Prepared by:
,r
Rafael Fajardo
Associate Civil Engineer
Submitted by:
Chris Marcarello
Deputy Public Works Director
Attachment 1 - Rosemead Municipal Code Section 13.20
Attachment 2 - ROM (Rough Order of Magnitude)
Attachment 3 - Location Map
Attachment 4 - Spreadsheet Breakdown prepared by SCE
Lucien J. LeBlanc
City Engineer
RMC
Chapter 13.20 UNDERGROUND UTILITY DISTRICTS
Sections:
13.20.010 Short title.
13.20.020 Definitions.
13.20.030 Hearing to establish need for underground utility district.
13.20.040 Designation of underground utility districts.
13.20.050 Unlawful acts.
13.20.060 Exception, emergency or unusual circumstances.
13.20.070 Other exceptions.
13.20.080 Notice to property owners and utility companies.
13.20.090 Responsibility of utility companies.
13.20.100 Responsibility of property owners.
13.20.110 Responsibility of city.
13.20.120 Time extension.
13.20.010 Short title.
This chapter shall be known as the "Underground Utility District Ordinance of the City of
Rosemead."
(Prior code S 11000)
13.20.020 Definitions.
Whenever in this chapter the words or phrases hereinafter in this section defined are used,
they shall have the respective meanings assigned to them in the following definitions:
"Commission" means the Public Utilities Commission of the state of California.
"Person" means and includes individuals, firms, corporations, partnerships and their
agents and employees.
"Poles, overhead wires and associated overhead structures" means poles, towers,
supports, wires, conductors, guys, stubs, platforms, cross-arms, braces, transformers,
insulators, cutouts, switches, communication circuits, appliances, attachments and
appurtenances located aboveground within a district and used or useful in supplying
electric communication or similar or associated service.
"Underground utility district" or "district" means that area in the city within which poles,
overhead wires and associated overhead structures are prohibited as such area is
described in a resolution adopted pursuant to the provisions of Section 13.20.040.
"Utility" includes all persons or entities supplying electric, communication or similar or
associated service by means of electric materials or devices.
(Prior code § 11001)
13.20.030 Hearing to establish need for underground utility district.
The Council may from time to time call public hearings to ascertain whether the public
necessity, health, safety or welfare requires the removal of poles, overhead wires and
associated overhead structures within designated areas of the city and the underground
installation of wires and facilities for supplying electric, communication or similar or
associated service.
Prior to holding such public hearing, the City Engineer shall consult all affected utilities
and shall prepare a report for submission at such hearing containing, among other
information, the extent of such utilities' participation and estimates of the total costs to
the city and affected property owners. Such report shall also contain an estimate of the
time required to complete such underground installation and removal of overhead
facilities.
Upon receipt of the report, the City Clerk shall prepare petitions which briefly summarize
the Engineer's report for the proposed district or districts. Upon receipt of a petition
signed by more than sixty (60) percent of the owners of property as shown on the last
equalized assessment roll within a proposed district, the City Council may set a date for
the public hearing described herein.
The City Clerk shall notify all affected property owners as shown on the last equalized
assessment roll and utilities concerned by mail of the time and place of such hearings at
least ten days prior to the date thereof. Each such hearing shall be open to the public and
may be continued from time to time. At each such hearing all persons interested shall be
given an opportunity to be heard. The decision of the Council shall be final and
conclusive.
(Prior code § 11002)
13.20.040 Designation of underground utility districts.
If, after any such public hearing the Council finds that the public necessity, health, safety
or welfare requires such removal and such underground installation within a designated
area, the Council shall, by resolution, declare such designated area an underground utility
district and order such removal and underground installation. Such resolution shall
include a description of the area comprising such district and shall fix the time within
which such removal and underground installation shall be accomplished and within
which affected property owners must be ready to receive underground service. A
reasonable time shall be allowed for such removal and underground installation, with due
regard for the availability of labor, materials, and equipment necessary for such removal
and for the installation of such underground facilities as may be occasioned thereby.
(Prior code § 11003)
13.20.050 Unlawful acts.
Whenever the Council creates an underground utility district and orders the removal of
poles, overhead wires and associated overhead structures therein as provided in Section
13.20.040, it shall be unlawful for any person or utility to erect, construct. place, keep,
maintain, continue, employ or operate poles, overhead wires and associated overhead
structures in the district after the date when the overhead facilities are required to be
removed by such resolution, except as the overhead facilities may be required to furnish
service to an owner or occupant of property prior to the performance by such owner or
occupant of the underground work necessary for such owner or occupant to continue to
receive utility service as provided in Section 13.20.100, and for such reasonable time
required to remove the facilities after the work has been performed, and except as
otherwise provided herein.
(Prior code § 11004)
13.20.060 Exception, emergency or unusual circumstances.
Notwithstanding the provisions of this code, overhead facilities may be installed and
maintained for a period, not to exceed thirty (30) days, without authority of the Council
in order to provide emergency service. The Director of Public Works (City Manager)
may grant special permission on such terms as the Director of Public Works (City
Manager) may deem appropriate, in cases of unusual circumstances, without
discrimination as to any person or utility, to erect, construct, install, maintain, use or
operate poles, overhead wires and associated overhead structures.
(Prior code § 11005)
13.20.070 Other exceptions.
The provisions of this chapter and any resolution adopted pursuant to Section 13.20.040
shall not apply to the following types of facilities, unless otherwise provided in such
resolution:
A. Any municipal facilities or equipment installed under the supervision and to the
satisfaction of the City Engineer;
B. Poles or electroliers used exclusively for street lighting;
C. Overhead wires (exclusive of supporting structures) crossing any portion of a district
within which overhead wires have been prohibited, or connecting to buildings on the
perimeter of a district, when such wires originate in an area from which poles, overhead
wires and associated overhead structures are not prohibited,
D. Poles, overhead wires and associated overhead structures used for the transmission of
electric energy at nominal voltages in excess of thirty-four thousand five hundred
(34,500) volts;
E. Overhead wires attached to the exterior surface of a building by means of a bracket or
other fixture and extending from one location on the building to another location on the
same building or to an adjacent building without crossing any public street;
F. Antennae, associated equipment and supporting structures, used by a utility for
furnishing communication services;
G. Equipment appurtenant to underground facilities such as surface mounted
transformers, pedestal mounted terminal boxes and meter cabinets, and concealed ducts;
H. Temporary poles, overhead wires and associated overhead structures used or to be
used in conjunction with construction projects.
(Prior code § 11006)
13.20.080 Notice to property owners and utility companies.
Within ten days after the effective date of a resolution adopted pursuant to Section
13.20.040, the City Clerk shall notify all affected utilities and all persons owning real
property within the district created by said resolution of the adoption thereof. The City
Clerk shall further notify such affected property owners of the necessity that, if they or
any other person occupying such property desire to continue to receive electric,
communication or similar or associated service, they or such occupant shall provide all
necessary facility changes on their premises so as to receive such service from the lines
of the supplying utility or utilities at a new location, subject to the applicable rules,
regulations and tariffs of the respective utility or utilities on file with the Commission.
Notification by the City Clerk shall be made by mailing a copy of the resolution adopted
pursuant to Section 13.20.040, together with a copy of this chapter, to affected property
owners as such are shown on the last equalized assessment roll and to the affected
utilities.
(Prior code § 11007)
13.20.090 Responsibility of utility companies.
If underground construction is necessary to provide utility service within a district created
by any resolution adopted pursuant to Section 13.20.040, the supplying utility shall
furnish that portion of the conduits, conductors and associated equipment required to be
furnished by it under its applicable rules, regulations and tariffs on file with the
Commission.
(Prior code § 11008)
13.20.100 Responsibility of property owners.
A. Every person owning, operating, leasing, occupying or renting a building or structure
within a district shall construct and provide that portion of the service connection on his
or her property between the facilities referred to in Section 13.20.040 and the termination
facility on or within the building or structure being served. If the above is not
accomplished by any person within the time provided for in the resolution enacted
pursuant to Section 13.20.040, the City Engineer shall give notice in writing to the person
in possession of such premises, and a notice in writing to the owner thereof as shown on
the last equalized assessment roll, to provide the required underground facilities within
ten days after receipt of such notice.
B. The notice to provide the required underground facilities may be given either by
personal service or by mail. In case of service by mail on either of such persons, the
notice must be deposited in the United States mail in a sealed envelope with postage
prepaid, addressed to the person in possession of such premises at such premises, and the
notice must be addressed to the owner thereof as such owner's name appears, and must be
addressed to such owner's last known address as the same appears on the last equalized
assessment roll, and when no address appears, to General Delivery, City of Rosemead. If
notice is given by mail, such notice shall be deemed to have been received by the person
to whom it has been sent within forty-eight (48) hours after the mailing thereof. If notice
is given by mail to either the owner or occupant of such premises, the City Engineer
shall, within forty-eight (48) hours after the mailing thereof, cause a copy thereof, printed
on a card not less than eight inches by ten inches in size, to be posted in a conspicuous
place on said premises.
C. The notice given by the City Engineer to provide the required underground facilities
shall particularly specify what work is required to be done, and shall state that if the work
is not completed within thirty (30) days after receipt of such notice, the City Engineer
will provide such required underground facilities, in which case the cost and expense
thereof will be assessed against the property benefited and become a lien upon such
property.
D. If upon the expiration of the thirty (30) days period the required underground
facilities have not been provided, the City Engineer shall forthwith proceed to do the
work, provided, however, if such premises are unoccupied and no electric or
communications services are being furnished thereto, the City Engineer may in lieu of
providing the required underground facilities, authorize the disconnection and removal of
any and all overhead service wires and associated facilities supplying utility service to the
property. Upon completion of the work by the City Engineer, he or she shall file a written
report with the City Council setting forth the fact that the required underground facilities
have been provided and the cost thereof, together with a legal description of the property
against which such cost is to be assessed. The Council shall thereupon fix a time and
place for hearing protests against the assessment of the cost of such work upon such
premises, which time shall not be less than ten days thereafter.
E. Upon the City Council's fixing of a time and place for the hearing of such protests,
the City Engineer shall immediately give a notice in writing to the person in possession
of such premises, and a notice in writing thereof to the owner thereof, in the manner
hereinabove provided for the giving of the notice to provide the required underground
facilities, of the time and place that the Council will pass upon such report and will hear
protests against such assessment. Such notice shall also set forth the amount of the
proposed assessment.
F. Upon the date and hour set for the hearing of protests, the Council shall hear and
consider the report and all protests, if there be any, and then proceed to affirm, modify or
reject the assessment.
G. If any assessment is not paid within five days after its confirmation by the Council,
the amount of the assessment shall become a lien upon the property against which the
assessment is made by the City Engineer, and the City Engineer is directed to turn over to
the Assessor and Tax Collector a notice of lien on each of the properties on which the
assessment has not been paid, and the Assessor and Tax Collector shall add the amount of
the assessment to the next regular bill for taxes levied against the premises upon which
assessment was not paid. The assessment shall be due and payable at the same time as the
property taxes are due and payable, and if not paid when due and payable, shall bear
interest at the rate of six percent per annum.
(Prior code § 11009)
13.20.110 Responsibility of city.
The city shall remove at its own expense all city-owned equipment from all poles
required to be removed hereunder in ample time to enable the owner or user of such poles
to remove the same within the time specified in the resolution enacted pursuant to Section
13.20.040.
(Prior code § l 1010)
13.20.120 Time extension.
In the event that any act required by this chapter or by a resolution adopted pursuant to
Section 13.20.040 cannot be performed within the time provided on account of shortage
of materials, war, restraint by public authorities, strikes, labor disturbances, civil
disobedience or any other circumstances beyond the control of the actor, then the time
within which such act will be accomplished shall be extended by the City Administrator
for a period equivalent to the time of such limitation.
(Prior code § 11011)
Y11 1 1 1 1 R\ ( A l l I 011\1 \
EDISON
February 8, 2010
Rafael Fajardo
City of Rosemead
Public Works Department
Subject: Preliminary Rough Order of Magnitude Cost Estimate
RnePmond Pith, ')OA _ Wglnnt (;rnvP AvP hPtll/PPn M:
Blvd.
Dear Rafael:
SCE has reviewed the proposed district and finds the boundary to be operationally
acceptable for undergrounding existing overhead distribution facilities. However, to do
the length of the project and the amount of allocations available it would seem that two
options are the most reasonable at this time. Per the `options discussed' with the City,
either shorten the length of the subject undergrounding, or be prepared that construction
would not start until 2014.
SCE has also prepared a preliminary rough-order-of-magnitude (ROM) cost estimate for
the undergrounding of existing overhead facilities within the proposed district boundary.
The estimate was prepared without the benefit of any engineering. Therefore, it has an
expected accuracy of plus or minus 40%, and the estimated cost is $3,130,000.00.
If further information is necessary, feel free to contact me at (323-720-5213) or Dave
Seeley at (714) 329-9317.
Sincerely,
MARISSA CASTRO-SALVATI
Interim Local Public Affairs Region Director
,I II I10.,-, i \I IIIW\II,
EDISON
February 2, 2010
Mr Jeff Allred
City Manager
City of Rosemead
8838 E. Valley Blvd.
Rosemead. CA 91770
Subject City/County Rule 20A 2010 Allocation
Dear Mr. Allred.
Southern California Edison (SCE) has filed with the California Public Utilities Commission
(CPUC) its annual report of the Company's 2010 budget for capital spending under tariff Rule
20A, conversion of overhead electric facilities to underground. For calendar year 2010, that
budget is $33,515,671, inclusive of applicable overheads.
SCE's 2010 budget for Rule 20A conversions is based on the amount the CPUC authorized in
the Company's 2009 General Rate Case, plus an escalation. Rule 20A sets out a formula for
allocating the budgeted figure among the various cities and counties in SCE's service territory
where SCE provides any retail electric service via overhead-served electric meters. For 2010
the amount allocated to the City of Rosemead is $170,459. In the spring of 2010 SCE will
furnish you with an update on your Rule 20A Allocations balance, including any adjustments
reflecting work in progress and committed projects.
As provided in CPUC Decision D.01-12-009, SCE is available to meet with you and the public to
report on the status of pending and approved Rule 20A projects. Please feel free to call on me
at any time to schedule such a meeting, or if you have any questions about Rule 20A or other
matters affecting our service to you.
-Very truly yours,
1/ 174,
Marissa Castro-Salvati
Region Manager
cc:
Rule 20 Project Manager
District Manager
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