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HomeMy WebLinkAboutCC AG PKT 2008-05-12 #L AGENDA STAFF REPORT . DATE: May 12, 2008 TO: Honorable Mayor and City Council THRU: David Carmany, City Manager FROM: Vince Mastrosimone SUBJECT: ESTABLISH UNDERGROUND UTILITY DISTRICT ON BEVERLY MANOR ROAD FROM SEAL BEACH BOULEVARD TO THE 405 FREEWAY SUMMARY OF REQUEST: , - The City Council is asked to set a public hearing for June 9, 2008 to receive public testimony from all interested parties regarding the formation of a proposed Underground Utility District along Beverly Manor Road from the 405 Freeway to Seal Beach Boulevard. . BACKGROUND: The establishment of the underground utility district allows for the undergrounding of existing overhead utilities through the use of the California Public Utilities Commission (PUC) Rule 20A funding program, administered by Southern California Edison Company (SCE). Rule 20A projects include 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, for individual service connections and connection to the main connection point at the first pole outside of the district, at no cost to the City. This item was considered by the City Council at their meeting of March 10, 2008. The required resolution was not adopted by a vote of 2-2 (Council vacancy). Mayor Antos requested staff provide additional" information for undergrounding of the utilities, the thought being perhaps some other areas of the City are more in need of utility undergrounding. (See Exhibit D). After considering the options, staff would recommend should the City Council ultimately decide to not establish an Underground Utility District along Beverly Manor Road, that the existing undergrounding project on Seal Beach Boulevard from Bolsa Avenue to Marlin Avenue revert to its' previous limits of the southerly point of Gum Grove Park to Marlin Avenue. . Staff is suggesting an area on Beverly Manor Road from the 405 Freeway to Seal Beach Boulevard as the project area. The City will be spending a significant amount of money for the replacement of the fire station and undergrounding the Agenda Item L . . . utilities in the area will significantly enhance the functionality of this major public facility in case of an earthquake and leave open the possibility that in the future, the facility could serve as an landing area for an emergency helicopter. (See attached Exhibit "A.") City staff has met with SCE to assess the feasibility of the new area on Beverly Manor Road. The attached Engineer's Report dated April 29, 2008 provides a detailed description of the boundaries of the proposed district, and the scope of the work involved. SCE has estimated that the cost of this project to the City would be $1,100,000 in 2011 dollars. See attached letter dated January 11, 2008. Currently, the City has approximately $1,733,109 in Rule 20A funds. The city receives approximately $104,364 annually. The rule 20A program allows cities to spend ahead up to five years yielding a total of $2,254,929. The city has sufficient funding for the new area on Beverly Manor Road. Per Seal Beach Municipal Code 9.55, in order to create district, staff requests City Council to schedule a public hearing on Jun~ 9, 2008 and notice the affected property owners of the proposed utility district. At the June 9, 2008 City Council Meeting, a resolution will be presented to establish said district. Once the approved resolution has been adopted, SCE will initiate the design and enter the project into the master Rule 20A schedule. SCE has estimated that design of the project can be completed in 2008, and that construction could start 2009 and be completed by 2010. FINANCIAL IMPACT: The SCE Rule 20A funds will completely fund the project which includes design, construction, project management and inspection, undergrounding all service lines, service connections, and meter modifications. There will be no cost to the City. RECOMMENDATION: It is recommended that the City Council set a public hearing for June 9, 2008 to receive public testimony from all interested parties regarding the formation of a proposed Underground Utility District along Beverly Manor Road from the 405 Freeway to Seal Beach Boulevard. After which, it can adopt a resolution establishing an Underground Utility District and authorize the use of the City's Rule 20A funds for the conversion of overhead electrical services to the proposed underground facilities. SUBMITTED BY: fCt.- j~trosimone, Director of Public Works NOTED AND APPROVED: c::;:>:I'- David carmany,1ity Manager . . . Attachments: A. Engineer's Report for Beverly Manor Road B. Resolution C. SCE Letter Dated January 11, 2008 D. Excerpt of Minutes March 10. 2008 . . . A1TJlt:MM8lr A Engineer's Report Beverly Manor Road from 405 Freeway to Seal Beach Boulevard Proposed Underground Utility District No. # 08-1 Backaround Rule 20 is a set of policies and procedures established by the California Public Utilities Commission to regulate the conversion of overhead electric equipment to underground facilities, a process called "undergrounding". Rule 20 determines the level of ratepayer funding for different undergrounding arrangements. Under Rule 20, undergrounding projects are financed by utility rate money, combined rate funds and local tax proceeds, or private funds, depending on whether Rule 20A, Rule 20B or Rule 20C provisions apply. On average, less than a penny per electric bill goes to undergrounding. Rule 20A Rule 20A projects are paid for by all SCE ratepayers, not just those who live on streets on which facilities will be undergrounded. City and county governments choose these projects, using a process that includes public participation. To qualify for full funding through utility rate proceeds, projects must produce a benefit to the general public, not just customers in the affected area, by satisfying one or more of these criteria: . The location has an unusually heavy concentration of overhead facilities. . The location is heavily traveled. . The location qualifies as an arterial or major collector road in a local government's General Plan. . The overhead equipment must be located within or pass through a civic, recreational or scenic area. Using CPUC formulas, SCE allocates rate funds to communities for undergrounding based on previous allocations, the ratio of customers served by overhead facilities to all the customers in the community, and the fraction that customers in the community represent of all SCE customers. Local governments use these formulas to project allocations, which allow them to prioritize projects and develop project schedules. Because funds are limited, local governments sometimes must wait and accumulate their allocations before starting an undergrounding project. Leaal Description UNDERGROUND UTILITY DISTRICT NUMBER # 08-1 BEVEVERL Y MANOR ROAD A strip of land one hundred (100') feet wide, whose centerline is described as beginning at the point of intersection of the centerline of Beverly Manor Road, eighty (80') feet wide, and the centerline of Seal Beach Boulevard, said point being the TRUE POINT OF BEGINNING, Thence . northerly along said centerline of Beverly Manor Road extending to the south property line of the 405 Freeway, said intersection being the northerly terminus of the above described centerline, approximately 971.31 feet. (See attached exhibit "A.n) Description of Proposed Work The existing Edison overhead wires and poles are located along Beverly Manor Road between the 405 Freeway and Seal Beach Boulevard. The properties serviced from the Beverly Manor Road frontage will be converted to an underground service. The existing electrical, as well as telephone and cable communications wires will be undergrounded and the wood poles will be removed. The power lines provide electricity to the street lights and to most of the properties along Beverly Manor Road. The existing street lights will be removed and new streetlights installed on new street light poles. The City will prepare a plan for the street light locations. If additional lights are desired the cost thereof will be funded by the City of Seal Beach. . Estimated Cost The Edison Company has estimated that the cost of this project would be $1,100,000 in 2011 dollars. ,The City of Seal Beach's current allocation fund, balance js ,$1,733,109 with annual additions of $104,364. There is no cost to the property owners nor to the tenants of Beverly Manor Road for this undergrounding project. All electric service customers served from lines being relocated underground will have necessary modifications and conversions done to their electrical service connections using the City's Rule 20A funds. Existing overhead facilities belonging to telephone and cable communications and other private utilities are to be relocated underground at the respective utility company's sole expense. Overhead lines from the street poles are fed to individual customers by a receiving pole on the customer's building structure. From the pole, the utility is taken inside the building for customer use. The proposed undergrounding project will reroute the overhead lines to underground, then rise to the side of the customers building to a service meter. From the meter, the utility lines are fed into the building. On Beverly Manor Road there are no customers that are fed overhead. All customers are fed underground. There will be no modifications to their buildings. The implementation of a new district can take 'two years or more to complete because there is often a long list of pending underground utility districts that have been established by other agencies. Prepared by: -fi-J MtChael Ho, P.E. . City Engineer . City of Seal Beach Dale: 11~5: . . ROW BEVERLY MANOR ROAD ~- ROW PROPOSED BEVERLY MANOR ROAD UTILITY DISTRICT 08-1 . . ~ Iii$} t€/~ a- ",Jf.. / / / / / 1/ / II / 405 FREEWAY ROW ROW ~ EXHIBIT "A" N.T.S. il [i ...I ::::l o ED ~ ~ ED ...I is CI) CITY OF SEAL BEACH BEVERLY MANOR ROAD UTILITY DISTRICT 08-1 JANUARY 29, 2008 SHEET 1 OF 1 ATTACHMENT "B" . RESOLUTION NUMBER A RESOLUTION OF THE CITY COUNCil OF THE CITY OF SEAL BEACH, CALIFORNIA ESTABLISHING A PUBLIC HEARING DATE FOR THE UNDERGROUNDING OF UTILITIES ON BEVERLY MANOR ROAD FROM SEAL BEACH BOULEVARD TO 405 FREEWAY WHEREAS, the City of Seal Beach desires to underground utilities on Beverly Manor Road from Seal Beach Boulevard to the 405 freeway; and WHEREAS; per Seal Beach Municipal Code 9.55, a public hearing is required to receive all public testimony to underground utilities; and NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SEAL BEACH DOES HEREBY RESOLVE: Section 1. The City Council hereby directs staff to schedule a public hearing on June 9, 2008 at 7:00 p.m. to consider the undergrounding of utilizes on Beverly Manor Road from Seal Beach Boulevard to the 405 freeway. PASSED, APPROVED. AND ADOPTED by the City Council of the City of Seal Beach on the 12th day of Mav . 2008 by the following vote: AYES: NOES: Council Members Council Members . ABSENT: Council Members ABSTAIN: Council Members Mayor ATTEST: City Clerk STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Linda Devine, City Clerk of Seal Beach, California, do hereby certify that the foregoing resolution is the original copy of Resolution Number _ on file in the office of the City Clerk, passed, approved, and adopted by the City Council of the City of Seal Beach, at a regular meeting thereof held on the 12th day of Mav , 2008. . City Clerk A~mwr t!-, !] EDisoN . "'BIllION "","""",ONAL- __ Peter P. Tran Underground Project Management and Inspection 1444 East Mcfadden Avenue Santa Ana, CA 92705 Phone: (714) 973-5741 Fax: (714)973-5726 emall: Deter.tranl&sce.com Mrs. Tami Bui LP A Regional Manager Orange Coast District January 11. 2008 Re: Rough Order of Magnitude Cost Estimate Rule 20A, Seal Beach - Beverly Manor Road Rule 20 Project Management has reviewed the Citt s request for Rule 20A evaluation for the proposed Manor Road between Seal Beach Blvd and 405 Fwy ( 800. linear distance) and found the site to be accept~le for underground conversion 83 a Rule 20A project . RDle 20 Project Management has also prepared a rough-order-of-magnitude cost, estimate for the. undergrounrHng of existing overhead distribution facilities within ~ proposed boundary. The estimate was prepared without the benefit of any P.rtgineering. ~ it has an expected accuracy of plus or minus 40%. The estimated cost is $1.100.000 expressed in 2011 dollars. anticipated year of major expenditures. The City currently does not have sufficient Rule 20A allocation to proceed with this project unless the boundaries of the cw:rent Rule 20A project. Seal Beach Boulevard. is reduced to Bolsa and Marlin. If you have any questions orconcems. feel free to contact me at PAX 52741 or 714-973-5741. ;!Je- Project Manager Rule 20 Project Management Orgauization Transmission & Distribution Business Unit Cc; G Hocutt:, TMathis File . " . , Attachment 0 . . ITEM "5" / RESOLUTION NUMBER 5690 I ESTABLISH UNDERGROUND UTILITY DISTRICT / RULE 20A The Director of Public Works gave the staff report: After conducting the pUblic hearing and receiving the testimony Council was asked to consider whether or not to establish the formation of the proposed Underground Utility District on Beverly Manor Road in front of the existing fire station. There was a change in the figures from Edison in the Engineer's Report - the amount in the City's Rule 20A fund is approximately $1,733,109 and the amount the city receives annually is $104,364. At the February Council meeting Council approved Resolution Number 5669 amending the amended Seal Beach Boulevard Underground UtilityDistrict 99-1 Rule 20A funded project to underground the overhead utilities in the project by reducing the area that now contain approximately 1,100 linear feet along Seal Beach Boulevard from Bolsa Avenue on the north to Marlin Avenue on the south and authorized SCE to proceed. Mayor Antos declared the public hearing open for consideration of Resolution Number 5690 the formation of Underground Utility District along Beverly Manor Road from 405 Freeway to Seal Beach Boulevard, The City Clerk stated that the public hearing notice was published in the Sun newspaper on February 28, 2008 as required by law and stated that no correspondence for or against the item was received. Mayor Antos asked anyone wishing to speak either for or against this item to come to the microphone and state their name for the record. Speakers: Robert Goldberg, Bridgeport, did not agree with staff's recommendation and suggested other areas for consideration: 1} Marina Drive between 1 st and 5th Streets, 2) PCH between Seal Beach Blvd. and 12th Street, and 3} Bolsa Avenue on the other side of McGaugh Elementary School. Eldon Alexander, 8th Street, indicated there are other areas in the City that could be considered and does not agree with staff's selection. Mike Buhbe, Seal Beach, commented that there should be an overall plan for underground utilities. There being no other speakers the Mayor closed the public hearing. Council comments: Councilman Shanks inquired if there has been a study of the number of transits by the north gate into Leisure World - staff response: the City has not conducted any traffic counts at that location - Councilman Levitt indicated that Leisure World staff has counted about 1,400 vehicle passing per day. Councilman Levitt stated it was not explained what the benefit would be for the selected area - this does not benefit the Leisure World residents - staff response: the thought was that the City will be spending a significant amount of money for the replacement of the fire station and wants to make the area as presentable as possible and the possibility that in the future there may be a need to have a helipad available. Councilman Levitt said that he could not vote for the project based on beautification of the area and a possible future need of a heli- pad. . Sloan moved, second by Shanks, to adopt Resolution Number 5690 entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH ESTABLISHING AND DESIGNATING AN UNDERGROUND UTILITY DISTRICT ON BEVERLY MANOR ROAD BE1WEEN SEAL BEACH BOULEVARD AND 405 FREEWAY. n and authorize the use of the City's Rule 20A funds for the conversion of overhead electrical services to the proposed underground facilities including the changes to the Engineer's Report. AYES: Shanks, Sloan NOES: Antos, Levitt ABSENT: Ybaben Motion failed Mayor Antos requested staff provide additional information for undergrounding of the utilities.