12/07/2021 - AGENDA ITEM 8 - CONSIDERATION OF PROPOSED UNDERGROUND UTILITY DISTRICT - MERCED AVENUE (RULE 20A)AGENDA ITEM NO. 8
AGENDA STAFF REPORT
City of West Covina I Office of the City Manager
DATE: December 7, 2021
TO: Mayor and City Council
FROM: David Carmany
City Manager
SUBJECT: CONSIDERATION OF PROPOSED
AVENUE (RULE 20A)
RECOMMENDATION:
It is recommended that the City Council take the following actions:
UTILITY DISTRICT - MERCED
1. Approve initiating the process to designate an Underground Utility District on W. Merced Avenue (from
230' east of S. Orange Avenue to 140' west of Trojan Way); and
2. Direct the City Engineer to prepare a report in accordance with Section 23-288 of the West Covina
Municipal Code.
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Rule 20A was developed to carry out a California Public Utility Commission (CPUC) 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.
The City of West Covina has an approximate current cumulative balance of $1.2 million on deposit with
Southern California Edison (SCE). A proposed location for the underground utility district has been identified
along W. Merced Avenue (from 230' east of S. Orange Avenue to 140' west of Trojan Way). The proposed
underground utility district is depicted in Attachment No. 1. The proposed location is adjacent to public places
such as West Covina Unified School District building, Edgewood Sport Complex and Orangewood Skate Park.
It is expected that the undergrounding project will provide both safety and aesthetic benefits to Merced Avenue
and adjacent areas. The proposed location is also within close proximity to the previously declared
Underground Utility District (District No. 4) on Merced Avenue east of Sunset Avenue.
DISCUSSION:
Rule 20A is a set of policies and procedures established by the CPUC 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, SCE owns and maintains most of the power 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's/property owner's 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.
To qualify for 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.
• The location is extensively used by the general public and carries a heavy volume of pedestrian or
vehicular traffic.
• The location qualifies as an arterial or collector road in a local government General Plan.
• The overhead equipment must be located within or pass through a civic, recreational or scenic area.
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. Due to limitations of funds, local municipalities usually
wait and accumulate their allocations for years before starting an undergrounding project.
Selection of Proposed Underground Utility District:
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 W. Merced Avenue (from 230' east of S. Orange Avenue
to 140' west of Trojan Way) due to the following reasons:
Undergrounding will enhance safety and have a positive aesthetic impact in the area.
The estimated project timing does not conflict with any planned street rehabilitation work or other
capital improvement projects (CIP) in the area.
The proposed location is adjacent to public places such as West Covina Unified School District building,
Edgewood Sport Complex and Orangewood Skate Park.
Staff requested that SCE prepare a rough order of magnitude (ROM) cost estimate for this project. The ROM
cost estimate is $1.3 million, based on 2023 prices. The cost of the project is escalated to the year 2023, which
is the earliest anticipated year that construction would be scheduled. SCE estimates that the City's Rule 20A
balance will be approximately $1.3 million in 2023.
Staff held an informal meeting with an SCE Rule 20A representative to discuss the proposed project and
requested Rough Order of Magnitude Cost Estimate for the project. If approved by the City Council, staff will
initiate the process to proceed with the establishment of the underground district. It is estimated that
construction will take place in 2023 and take approximately 12 months.
OPTIONS:
The City Council has the following options:
1. Approve staffs recommendation; or
2. Provide alternative direction.
Prepared by: Okan Demirci, PE, QSD/P
Fiscal Impact
FISCAL IMPACT:
The estimated cost for the project is approximately $1.3 million. The funds will be provided from Southern
California Edison (SCE) through Rule 20A Program.
Attachments
Attachment No, 1 - Rule 20A Proposed Project Map
CITY Protect Public Safety
COUNCIL Enhance City Image and Effectiveness
GOALS &
OBJECTIVES:
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