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Home My WebLink AboutCC AG PKT 2006-04-24 #Q AGENDA REPORT DATE: April 24, 2006 TO: Honorable Mayor and City Council THRU: John B. Bahorski, City Manager FROM: Mark K. Vukojevic, Director of Public Works/City Engineer SUBJECT: AUTHORIZING SOUTHERN CALIFORNIA EDISON COMPANY TO PROCEED WITH AMENDED SEAL BEACH BOULEVARD UNDERGROUND UTILITY DISTRICT 99-1 RULE lOA FUNDED PROJECT TO UNDERGROUND OVERHEAD UTILITIES ON SEAL BEACH BOULEVARD SUMMARY OF REQUEST: The proposed City Council Action will adopt the attached Resolution authorizing the Southern California Edison Company to schedule the Amended Seal Beach Boulevard Underground Utility District 99-1 Rule 20A funded project to underground the overhead utilities on Seal Beach Blvd. from the southerly side of the Hellman Properties/Laing Homes development southerly to Electric Ave. including the removal of poles, overhead wires and associated structures and the underground installation of wires and facilities for supplying electric, communication or similar or associated service within the district and for individual service connections and connection to the main connection point at the first pole outside of the district. BACKGROUND: On May 24, 1999 the City Council adopted Resolution No. 4712 which established the Seal Beach Boulevard Underground Utility District 99-1 on Seal Beach Boulevard between Adolfo Lopez Drive and Electric Avenue being, approximately 6626.72 feet long. The establishment of this underground utility district allowed for the undergrounding of existing overhead utilities through the use of the California Public Utilities Commission (pUC) Rule 20A funding program which is administered by the Southern California Edison Company. Rule 20A funds can only be used on heavily traveled arterials or major collector roadway and can not be used in residential areas as noted on the attached SCE information page. The first portion of the Seal Beach Boulevard Underground Utility District 99-1 was completed by the Edison Company on the westerly side of Seal Beach fronting on the City of Seal Beach Public Agenda Item-G.. Safety building City owned property from Adolfo Lopez Drive to the northerly side of the Hellman Properties/Laing Homes development under the Rule 20A funding program. The Hellman PropertieslLaing Homes development, as part of Tract No. 15402 agreement requirements, also completed undergrounding the overhead utilities along their frontage on the westerly side of Seal Beach Blvd, using Hellman PropertiesILaing Homes private funds, Because the first portion of the Seal Beach Boulevard Underground Utility District 99-1 undergrounding was accomplished by the Edison Company and the Hellman Properties/Laing Homes development completed undergrounding the overhead utilities along their frontage, it was necessary to amend the Seal Beach Underground Utility District 99-1 to remove those completed portions from the District. On January 14, 2002 the City Council approved Amended Seal Beach Boulevard Underground Utility District 99-1 for undergrounding overhead utilities using Southern California Edison Company Rule 20A funds from the southerly side of the Hellman Properties/Laing Homes development to Electric Ave. including the removal of poles, overhead wires and associated structures and the underground installation of wires and facilities for supplying electric, communication or similar or associated service within the district and for individual service connections and connection to the main connection point at the first pole outside of the district, being approximately 4694.80 feet long. Through discussions with the Edison Company it was established that at that time there was not enough Rule 20A funds available for the City of Seal Beach to complete the Amended Seal Beach Boulevard Underground Utility District 99-1 undergrounding from the southerly side of the Hellman PropertieslLaing Homes development to Electric Avenue including the removal of poles, overhead wires and associated structures and the underground installation of wires and facilities for supplying electric, communication or similar or associated service within the district and for individual service connections and connection to the main connection point at the first pole outside of the district. The City then requested that the Edison Company hold any further work on the District until sufficient Rule 20A funds accumulated into the City of Seal Beach allocation in order to complete the Seal Beach Blvd. undergrounding project. The Edison Company has informed the City that there is now $2,071 ,908 of Rule 20A funds available to the City of Seal Beach ($1,348,400 through the year 2005 plus $723,540 of 5 year advance funds), Edison's cost estimate to complete the Amended Seal Beach Boulevard Underground Utility District 99-1 from the southerly side of the Hellman Properties/Laing Homes development to Electric Ave. including the removal of poles, overhead wires and associated structures and the underground installation of wires and facilities for supplying electric, communication or similar or associated service within the district and for individual service connections and connection to the main connection point at the first pole outside of the district, escalated to the year 2008, is approximately $1,815,000, Edison has advised that they will consider the receipt of an approved resolution as an attachment to an official letter from the City requesting the project to be initiated. Edison will then schedule the project into the master Rule 20A schedule. Edison has estimated that design of the project can be Agenda Item_ completed in 2007, and that construction could start in 2008 or 2009 and be completed by 2008 or 2009. FISCAL IMPACT: The Southern California Edison Co. Rule 20A funds will fund the project design, construction, Edison Co. project management and inspection, undergrounding all service lines, service connections, and meter modifications. There will be a minor cost to the City for staff administrative time, plan review, and City inspection which is estimated to be approximately $30,000 over a two year period and will be brought forward with the upcoming Capital Improvement Program. RECOMMENDATION: It is recommended that the City Council adopt the attached resolution authorizing the Southem California Edison Company to schedule the Amended Seal Beach Boulevard Underground Utility District 99-1 Rule 20A funded project to underground the overhead utilities on Seal Beach Boulevard from the southerly side of the Hellman PropertieslLaing Homes development to Electric Ave, including the removal of poles, overhead wires and associated structures and the underground installation of wires and facilities for supplying electric, communication or similar or associated service within the district and for individual service connections and connection to the main connection point at the first pole outside of the district. Prepared By: Sean Crumby, P.E. Deputy City Engineer Reviewed By: {#iI - , Mark . Vukojevic P.E, Director of Public Works/City Engineer Attachments: Exhibit A - Amended Seal Beach Boulevard Underground District Map Resolution No. _ authorizing scheduling of the project Edison Undergrounding Frequently Asked Questions Agenda Item_ CITY OF SEAL BEACH FRONTAGE I ~~FO':~~::'.O..':. t -=1 , I I i FORREST~ LN I MAIN GATE I i . Ii it ,I I( II II II II I' II HElLMAN RANCH OEVELOPMENT Ii :: TENTATIVE TRACT NO. 15402 1l!!~.E~L_ I 'Pe1.TEl r- II II I~ I~ AMENDED SEAL BEACH BOULEVARD UNDERGROUND UTILITY DISTRICT 99-1 ~ iii MARLIN AV :r u c lilI g .. ~ ::E ~l;i '" "01;; .. ,,~- "'.: MOC ~ !:~~ ~~ !1j!0 US NAVAl WEAPONS STA~ON PACIFIC CDAS'f HlGHlJAY lANDING AVE. €l.E"crRrc Ave If' .. ~ .. :r !i! III ;i '" .. NOT TO SCALE EXHIBIT "A" CITY OF SEAL BEACH AMENDED SEAL BEACH BOULEVARD UNDERGROUND UTILITY DISTRICT 99-1 BOUNDARY MAP JANUARY 14, 2002 RESOLUTION NUMBER A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH AUTHORIZING SOUTHERN CALIFORNIA EDISON COMPANY TO PROCEED WITH AMElIDED SEAL BEACH BOULEVARD UNDERGROUND UTILITY DISTRICT 99-1 RULE lOA FUNDED PROJECT TO UNDERGROUND OVERHEAD UTILITIES ON SEAL BEACH BOULEVARD WHEREAS, tho establishment of ooderglOund utility districts allows for tho undorgrouodiog of existing overhead utilities through tho use of the California Public Utilities Commission (PUC) Rule 20A funding program which is administered by tho Soulbem California Edison Company; and WHEREAS, on JanU8l}' 14, 2002 tho City COlDlCiI approved Amended Seal Beocl1 Boulevard Underground Utility District <}\I-I for undergroundiog overllead utilities using Southern California Edison Company Rule 20A funda from tho aoutherly side of tho Hellman ProportioslLaing Homes development to Elecmc Ave. including tho mnovol of poles, overhead wires and associated structures and the underground installation of wires and facilities for supplying electric, communication or similar or associated service within the district and for individual service connections and connection to tho main connection point at the flISt pole outside of tho diatrict being approximately 4694.80 feollong; and WHEREAS, the Southern California Edison Company has informed tho City that th.... is now $2,071,908 of Rule 20A funds available to tho City of Seal Beach ($1,348,400 through tho year 2005 plus $723,540 of 5 year advance funds) and that thoir cost estimate to complete tho Amended Seal Beocl1 Boulevard Underground Utility Oismct <}\I-I from tho southerly side of the Hellman ProportioslLaing Homos development to Electric Ave. including tho mnovol of polos, overhead wires and associated structures and tho underground installation of wires and facilities for supplyiog elecme, communication or similar or associated service within the district and for individual service connections and connection to the main connection point at the first pole outside of tho diatrict, oscalated to tho year 2008, is approximately $1,815,000; and WHEREAS, The Edison Company advises that they are ready to proceed with tho project; and WHEREAS, the City staff recommends that tho City Council authorize tho Southern California Edison Company to proceed with the Amended Seal B...h Boulevard Underground Utility Dismct 99-1 Rnle 20A funded project to underground the overhead utilities on Seal B...h Boulevard from the southerly side of the Hellman ProportieslLaing Homes development to Electric Ave. including tho mnovol of polos, overhead wires and associated structures and tho underground installation of wires and feoilities for supplying electrie, communication or sirnilar or associated service within the district and for individual service COMections and connection to the main connection point at the first pole outside of tho diatric!. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SEAL BEACH DOES HEREBY RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS: SECfION I. The City Council of lbe City of Seal Beach does h....by authorize tho Southern California Edison Company to proceed with the Amended Seal Beach Boulevard Underground Utility District 99-1 Rule 20A funded project to underground the overhead utilities on Seal Beach Boulevard from tho aoutherly side of tho Hellman PropertieslLaiog Homes development to Electric Ave. including tho removal of poles, overhead wires and associated structures and tho underground installation of wires and facilities for supplying electric., communication or similar or associated service within the district and for individual service connections and connection to the main connection point at the first pole outside of the district. SECTION 2. The City Clerk, within ten (10) days after the adoption of this resolution shall mail a copy h","of, a copy of tho Amended Seal Besch Boulevard UndorgrolOld Utility District 99-1 map, and a copy of the Seal Beach MlOIicipal Code Section 2SA to affected property owners, if any, aa shown on tho last equalized IlSSOllSlIIOIlt roll and to tho affi:ctod utilities, PASSED, APPROVED AND ADOPTED by tho City Council of the City of Seal Besch at a meeting thoroofheld on the _ day of 2006, by tho following vote: AYES: Councdmembers NOES: Councilmembers ABSENT: Councilmembors Mayor ATIEST: Uncia Devmo, City Clerk STATE OF CALIFORNIA) COUNTY OF ORANGE ) SS CITY OF SEAL BEACH ) I, Uncia Devino, City Clerk of Seal Beach, CoJifomia, do ho1eby certi1Y that the foregoing resolution is the originoJ copy of Resolution Number _ on file in tho offi.. of tho City Clerk, paased, approved, and adopted by the City Council of tho City of Seal Beach, at a regular meeting thereof hold on tho _ day of . 2006. City Clerk f] EDisoN" ...M.r:StJNilJtllWikl'lO.VM..~ &"MY'AccOU(,t - ',:.',:'.: II User Name: I--:_.~'. -. --- _'=-"': _' .:.: _U J Password: I : --:~__~.___::':.'..'.~~_~-__':::::; r Remember Me_ Forgot your paSlWOrd? New user? Learn more I Regle.r Service Support Requ8l1a Online Billing & Peyment Leve' Payment Plan other Payment Optionl Rala Inlonnetion Service Guarenlae CARE Program Applications Underetandlng Your Bill Underatandlng Baeellne Direct Access Switching Quick Answelll Document Library Undergroundlng Electric Lines & Equipment Power Talk For Seniors Expend Alii Collapse All Home My Account ~~a~ About SCE Contact Us ~ ~~ Rebata III:".' 1 . .... ,. :.. ~ ltoui-" COmmunl'" ,-OOln ~. ;,:tI ~I~ :;', i"~: ", )!liVirali.....nt;, ~-"eal!lltJ;" Bu~ Home > Cuslomer Service > Unde'llrounding Electric Lines & Equipment :. Undergrounding Electric Lines & Equipment Undergrounding The California Public Utilities Commission's (CPUC) Rule 20 sets policies and procedures for the conversio overhead power lines end other equipment 10 unde'llround facilities, a process called "unde'llrounding." SCE supports unde'llrounding because it provides substantial aesthetic benefits 10 local commuRlbes. Use the following links 10 leam more about Rule 20: e Background . New Rule 20 Regulations . Status of Current Underground.ng Projects . Questions and Answers about Rule 20 . Quesbons and Answers about New Rule 20 Regulations . Contacts Background Under Rule 20, unde'llrounding projects ere financed by utility rate money, combined rate funds and local t proceeds, or private funds, depending on whether Rule 20A, Rule 20B or Rule 20C provisions apply. The a Rule 20 tariff, as approved by the Califomia Public Utilities Commission, is here (scroll down 10 Rule 20 on page). Rule 20A Rule 20A projeclll are paid for by all SCE ratepayers, not just those who live In locations whare facilities will unde'llrounded. City and county govemments choose these projects, using a process that includes publiC participation. To qualify for full funding through utility rate proceeds, projects must produce a benefit 10 the general public just cuslomera In the affected area, by satisfying one or more of these critaria: . The location has an unusually heavy concantration of overhead facilities. . The location Is heavily traveled. . The location qualifies as an arterial or major collector road in a local govemment's general plan. . The overhead equipment must be located within or pess through a civic, recreational or scenic are! Using CPUC formulas, SCE allocates rate funds 10 communities for undergroundlng besed on previous allocations. the ratio of cuslomers served by overhead facilities 10 all the cuslomers in the community, and I fraction that customers In the community represent of all SCE customers. . . Local governments use these formulas to project allocations, which allows them 10 pnoribze projects and dE project schedules. Because funds ere limited, local govemments sometimes must walt and accumuiate the allocations before starting an unde'llrounding project. Rule 20B If an eres is not eligible for Rule 20A or If local government cannot or chooses not to rely on the Rule 20A allocation process, Rule 20B allows rate funds to subsidize an unde'llroundlng project. The subsidy includes an amount equal 10 the coat of an equlvelent overhead electric system, usually about of the Iotal undergrounding project cost plus the cost of removing the existing overhead system, which can 20% of the Iotal cost The remaining cost Is funded by local govemments or through neighborhood apeClaI assessment districts. Rule 20B projects must be sited along public straets or roads or other locations mutually agreed 10 by the applicant o'llanization and the utility. Rule 20C Rule 20C enables property owners to pay for undergrounding eleclric lines and equipment If neither Rule 21 208 applies. TOP New Rule 20 Regulations After two years of study and development, the CPUC in June 2002 approved the first phaae of changes de. to improve the scheduling, designing and construction of undergroundlng projects under Rule 20 Baaically new Rule 20: Increaeee loeal government flexibility . It addB "arterlar and "collecto" to the types of location that qualify for Rule 20A. . It allowB up to five years of mortgaging, or ''saving up," ellocatlone levels by local govemmenls, pro adequate utility caplial and personnel are available. . It allows a local govemments to use allocal1on levels ae "seed money," a value that the local goven can borrow againet to perfonn initial engineering & design Btudiee for Rule 208 projects. In the evel project is not epproved within 2-1/2 years aller planning stages ere complete, the city or county ha, days to reimburse the seed money. . It provides that the cost of removing ovemead facilities will be peid by the utility Improves coordination and communlceUone bstwsen utllltlee, local govemments and reeldents. . At a local govemmenfs request, SCE will meet with govemment officials and residents to provide s on any Rule 20 project thet has been approved. . SCE will meet with local officials every 30 deys, If the local govemment requests It, to discuss Rule project construction. . The Underground Planning Guide for local govemments IB being updated by utilities and the Leagu Califomia ClliaB to Include the how to, when, where and why'e of undergrounding. . The utility will have a single point of contact to anBWer ques~one on Rule 20 for the general pUblic is Anthony Aguiler at 714-973-5696, or e-meil Anthony.Agullar@sce.com. Local govamments can contact their SCE region manager or Rule 20 project manager. A second phase of Rule 20 changes IS currenl1y under study. Topics include competitive bidding, Incentive mechenisms, establishing a point aller which no more ovemead facilities will be constudsd, and cost recov telecommunications undergrounding projects. Status Of Current Undergroundlng Projects Thie Excel fonnatted project status document is current as of November, 2005. Projects are listed alphabel by city. The document can be downloaded here. TOP Questions And Answers About Rule 20 Whatls Rule 207 Rule 20 is a set of policies and procedures established by the California Public Utilities Commission to regu the converaion of ovemead electric equipment to underground facilities, e process called "undergrounding" 20 determines the level of retepayer funding for different undergrounding arrangements. See Rule 20A, Ru: and Rule 20C above. Where can I find out If my nelghbomood Is echeduled for undergroundlng, or get en undergroundln project atsrted7 Vou ehould contact your local city or county govemment offices to find out If your neighbomood IS schedule Rule 20 project or to leam the procees used in your locelity for Rule 20A and Rule 208 projects. To find out to begin a Rule 20C project, conlactAnthony Aguilar at 714-973-5696. Will my nelghbomood experience fewer power outsgee after our electrlc Iinee heve been undergrounded7 Will the outages be longer or ehorter? Our infonnal1on ia Inconclusive. We believe, however, thet In areas that experience frequent hea'Jll winds, outages decrease when lines are undergrounded. In wetter ereas, outages may tend to increase due to the of water seepage on underground equipment. The information we have, while inconclusive, aeems to Indicate that outages tend to be longer wIth undergr facilities, simply because it is more difficuit to find problems and replace equipment underground. Are underground faclllllee more or Ieee expensive than underground? Underground facilities are more expensiw to install and maintain than overhaad equipment. Tha cost of ov, equipment is about 20% of the cost of underground. Maintenance costs for underground facllltles are also t than for owrhead. How much of my SCE bill goes to undergroundlng? The average cost of undergrounding per residential customer per month Is in the neighborhood of a nickel. Does a project have to meet all the criteria to qualify as a Rule 20A project? No. Just one. Aran't Rule 20A funds really the cities' monsy? As with all its capital spending, SCE is required to pay for undergroundlng projects up front with money il ra through investor funds. The money is not collected from customers in rates ahead of lime. Only after a proj. completed can SCE recowr the money It spent to plan and construct a Rule 20 project. 00_ that mean that the sllocatlons do not represent actual funding? The allocations do not represent actual funding. They are a planning tool for local govemments They repre quellfied right to direct assign a portion of SeE'a anticipated capital budget to qualified Rule 20A proJects. S of the language In the Rule 20 tariff seems to suggest that the allocabons represent actual funds, but that i. the case. Old California's snergy crisis affect Rule 2O? The energy crisis and the financial crisis It created for SCE delayed undergrounding plans lor up to two yea SCE was not able to fund allocations during that time. Ths criSIS also resulted in a delay in changes to Rule TOP Questions And Answers About New Rule 20 Regulations I have Rule 20 proJscls under construction. Do the new rules affect me? No. Tha changes affect future projects, not those under way WhIt are arterial and eollsctor roads? An arterlsl road Is used or is Intended to be used prlmarlly lor fast or heavy traffic A collector road carries tl from minor straets to the major system of arterial roads, including the prlnclpal entrance streets of a resider development and streets for circulation within a residential area. Old the la18et chang_ Include modifications to the allocation or thl allocation formula? No. Thl CPCU did not direct changes to allocation procadures. One of thl changes In Rule 20A rules Indlclt8s that the n_ rules allow up to flvl yaara of "mortgas What does that mean? Mortgaging allows a local govemment to use up to five years of allocabon amounts belore they actually acaJmulate. Essentially, the local govemment may borrow five years of allocation to complete a Rule 20A ~ The purpose of mortgaging Is to help cities start and complete large projects faster. Can the local government demand the allocation? SCE makes ewry effort to accommodate local government requests to mortgage Rule 20A allocations. UtII upon request by a city or county, may disperse increased allocation, as long as they do not exceed five yaa allocation. However, since funds coma from tha UtilltiSS, tha utility has discretion of projecl participation, depending on resources availabla for Rula 20 allocations. What has SCE done to changs the coordination and procedural requlreman18 between ths utility an' cities? SCE has taken the lollowlng measures to Improve coordinetion and communications We heve: I Increased availablllly of SCE personnel to respond to questions and concems from cuslomers and govemment officials, Including e single point of contact. I established this Web page to Improve communications to customers about Rule 20 mallers I begun reviSion of our Undergrounding Planning Guide lor local govemment officials 10 make it mon friendly. TOP