Loading...
Item 2AGENDA ITEM NO.2 AGENDA STAFF REPORT City of West Covina I Office of the City Manager DATE: April 19, 2022 TO: Mayor and City Council FROM: David Carmany City Manager SUBJECT: PROPOSED UNDERGROUND UTILITY DISTRICT NO.8 - MERCED AVENUE (RULE 20A) RECOMMENDATION: It is recommended that the City Council take the following actions: 1. Receive and file the City Engineer's report. 2. Set May 3, 2022 at 7:00 pm as the date and time for a public hearing regarding the establishment of Underground Utility District No. 8. 3. Direct staff to notify all affected property owners of the date and time of the public hearing in accordance with the requirements of Article V (Underground Utility Districts) of Chapter 23 (Utilities) of the West Covina Municipal Code. BACKGROUND: Rule 20A is a set of policies and procedures established by the California Public Utility Commission (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. 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 $1,209,317 on deposit with Southern California Edison (SCE), with a continuing annual allowance of $79,967. A proposed location for the underground utility district has been identified along West Merced Avenue (from 208' east of South Orange Avenue to 180' west of Trojan Way). The proposed location is adjacent to public places such as a West Covina Unified High 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: Generally, Southern California Edison (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. Developing a New Underground District 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 in public and private properties. 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. Currently, West Covina's annual allocation is $79,967, 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 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 West Merced Avenue (from 208' east of South Orange Avenue to 180' 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 improvements (CIP) projects in the area. . The proposed location is adjacent to public places such as a West Covina Unified High 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 for the project is $1,321,424, based on 2023 prices. Rule 20A Project Management has reviewed the Rule 20A project in the City of West Covina: West Merced Avenue - 208' E/O C/L South Orange Avenue to 180' W/O C/L South Trojan Way. The estimated trench footage for the project is 1,935 feet, which includes all mainline trenching as well as crossings, streetlights and service laterals (if applicable). The cost of the project is escalated to the year 2023, which is the earliest anticipated year that construction would be scheduled and includes an estimated accuracy variance of approximately 40%. This assumes all the other utilities involved in the project can complete their design and prepare construction documents in the same timeframe as SCE has estimated. Should the City and SCE agree to proceed with the Rule 20A project, the scope of work and SCE estimated cost for the project can be updated and with greater accuracy following the completion of SCE's final engineering design. Staff met with the participating utility companies including SCE, Crown Castle, Frontier, and Charter Spectrum. The proposed scope of undergrounding utility facilities including poles and overhead wires was discussed with all participating utility companies. Each utility company will underground its own facilities at its own cost. According to the CPUC Decision 01-12-009, SCE may mortgage a maximum of five years of a city's future Rule 20A annual allocations. The City of West Covina has enough allocation at this time and would not require mortgaging for this project. SCE's ability to proceed with this project is dependent upon the annual CPUC approved budget for the Rule 20A Program, which provides for the availability of capital funding and resources for Rule 20A projects. Funding levels for the Rule 20A Program may directly impact future allocations and the anticipated year of construction for this proposed project. The ROM estimate is based on the following assumptions: . SCE has an available budget to proceed with the project. . The City of West Covina has accumulated an adequate allocation balance within the allowable five-year mortgage . The City of West Covina has established an underground utility district by resolution or ordinance for this project and/or area. . The City will be required to hold a public hearing to establish any underground utility district. . The City of West Covina will allow and provide for the granting of easement(s) to SCE for trench installation within the project boundary, as necessary. Process If approved by the City Council, staff will initiate the process with SCE and utility companies to proceed with the underground district. It is estimated that construction will start in late 2023, and that it will take approximately 12 months to complete the underground installation and removal of overhead facilities. LEGAL REVIEW: The City Attorney's Office has reviewed this staff report. OPTIONS: The City Council has the following options: 1. Approve Staffs recommendation; or 2. Provide alternative direction. ENVIRONMENTAL REVIEW: The project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15304 (a) and (f) of the CEQA Implementing Guidelines. This exemption covers projects involving minor alterations of land that do not have a significant effect on the environment. Prepared by: Okan Demirci, CIP Manager Fiscal Impact FISCAL IMPACT: The estimated cost for the project is approximately $1,321,424. The funds will be provided from Southern California Edison (SCE) through Rule 20A Program. City and SCE will cover the costs of the conversion for the affected residents within the project boundary with the use of SCE's Rule 20A Funds Program. There is no impact to the City's General Fund associated with this project. Attachments Attachment No. 1 - Rule 20A Proposed Project Map CITY COUNCIL GOALS & OBJECTIVES: Enhance City Image and Effectiveness Maintain Good Intergovernmental Relations A Well -Planned Community Expand Economic Development Opportunities Attachment 1 Underground District Location Map ON 9..