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2011/12/13 Item 10
,.~~ _ CITY COUNCIL AGENDA STATEfVIENT ,,.ice: C~-n~ o~ CHULA, VISTA 12/13/11, Item ~~ ITEM TITLE SUBMITTED BY: REVIEWED BY: STATUS REPORT ON THE UTILITY UNDERGROUNDING PROGRAM RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE REVISED UTILITY UNDERGROUNDING PRIORITIZATION PROCESS DIRECTOR OF PUBLIC WORKS ASSISTANTDIRECT R OF ENG CITY MANAGER ASSISTANT CITY ANAGE~ 4/STNS VOTE: YES ^ NO SUMMARY The City's original ranking system for the undergrounding of utilities was written in June 1979. The last update on the progress of the City's Utility Undergrounding Program (UUP) was presented to Council in February 2008 as part of the Infrastructure Workshop. There are three remaining projects from the City's previous UUP project prioritization. This item presents an update on the City's UUP and requests Council approval for a revised ranking system. ENVIRONMENTAL REVIEW The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines because the prioritization process is administrative in nature. Therefore, pursuant to Section 15060 (c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Although environmental review is not necessary at this time, once the scope of individual projects have been defined, environmental review will be required and a CEQA determination completed prior to commencing any development activities. RECOMMENDATION Council accept the status report and adopt the resolution. BOARDS/COMMISSION RECOMMENDATION Not applicable. 10-1 12/13/11, Item_~ Page 2 of 5 DISCUSSION Historically, the City has undergrounded utilities through one of three methods: as part of capital improvement projects; as part of separate undergrounding districts; or in new developments through the subdivision process. New subdivisions were required by the City to underground existing and new utilities adjacent to the development beginning in 1968. Therefore, over 90 percent of the remaining overhead electrical distribution lines are located west of I-805. It is estimated that the City has approximately 160 miles of above ground electrical distribution wires. Based on the general rate provided by San Diego Gas and Electric (SDG&E) in 2007 ($1.673 million per mile), it would cost approximately $268 million to underground these utilities. The City's Franchise Agreement with SDG&E provides for an allocation of $2.0 million per year from the funds collected on customers' utility bills, as specified in the California Public Utilities Commission (PUC) Rule 20A. Based on these figures, it would take at least 134 years to finish this work, not considering inflation. Historically, the other utility companies (such as AT&T and Cox Communications) have done the work needed to underground their associated facilities without charging the City, but that could change in the future. Status of Utility Undergrounding Projects Staff prepared a map entitled, "Utility Undergrounding Projects" (Attachment 1) for the Council Infrastructure Workshop in April 2007. As of that date, $30,359,632 had been spent on utility undergrounding from the City's Rule 20A allocation. Most of the undergrounding projects were along streets in western Chula Vista, including Broadway, E Street, Fourth Avenue, Palomar Street and Main Street. However, Otay Valley Road (now known as Main Street), Bonita Road, and Otay Lakes Road east of I-805 were also included. The following were listed as current projects: • Bayfront • Fourth Avenue (WD 133): L Street to Orange Ave. • J Street (UUD 137): Broadway to Hilltop Drive • East J Street (UUD 138): Hilltop Drive to Lori Lane • L Street (UUD 135): Broadway to Third Ave. • East L Street (UUD 134): Monserate Ave. to Nacion Ave. All undergrounding districts that have been formed since 1992 are shown on Attachment 2. The initial cost listed is the estimated cost provided by SDG&E at the time of district formation. The Bayfront District uses the cost estimate provided in the City's 2004 Memorandum of Understanding (MOU) with SDG&E. Since the April 2007 workshop, the Fourth Avenue project (WD 133) and East L Street (UUD 134) have been approximately 99 percent completed. The main issue on both districts has been the relocation and removal of facilities belonging to NexHorizon, which is currently in bankruptcy proceedings. All other utilities have been undergrounded and all other overhead utilities have been removed. With the permission of the court, a construction permit was recently issued for the removal of the remaining overhead lines on Fourth Avenue. We expect all work on the Fourth Avenue district and the East L Street districts will be completed by early 2012. SDG&E considers that these two projects are complete, although SDG&E will remove the poles and wires at the City's request (and 20A expense) after the issues with NexHorizon are resolved. 10-2 _ _ _. 12/13/11, Item Page 3 of 5 The final accounting for these districts is shown on the 2011 20A Conversion Summary Report (Attachment 3). The total cost for these two districts is $9,330,483, which is approximately twice the 2007 estimate provided by SDG&E. As shown in Attachment 3, SDG&E stated that the City has allocated $50,460,136 to utility undergrounding projects as of March 31, 2011. The City had a negative balance of ($9,629,977). According to Rule 20A, municipalities are allowed in incur debt up to five times the annual allocation. Since the City's annual allocation is $2.0 million, this is within the five- year limit ($10.0 million) allowed by the Public Utilities Commission. However, it means that, until at least next year, the City cannot currently borrow ahead any additional funds to construct additional undergrounding facilities unless allowed by a revised agreement with SDG&E. Attached are a cost summary that shows the difference between the initial cost estimate, the estimate given in 2007, and the most recent cost estimate for the three latest projects in process or completed and the remaining three established districts (Attachment 5). Utility Undergroundin~ Subcommittee The City of Chula Vista has not been alone in experiencing rapidly escalating costs for its undergrounding projects. These same cost issues have been experienced by all agencies throughout San Diego County that have established districts over the past few years. During a meeting of the San Diego Association of Governments (SANDAG), it was decided that a Utility Undergrounding Subcommittee would be convened to discuss issues encountered by local agencies in the implementation of utility undergrounding districts. The main goals of the committee were stated as establishing uniform region wide practices, cost efficiency, cost control and performance control. The subcommittee has been meeting since October 2009. A smaller group was formed, consisting of staff from the cities of Chula Vista, Santee and Vista, which met with SDG&E staff and discussed issues that have arisen with 20A projects. As a result of these meetings, and review by the larger committee, a new version of SDG&E's 20A Conversion Procedure was produced (Attachment 6). Although this new procedure specifically addresses the municipal trench procedure, it does not allow payment for the agency's costs related to municipal trenching. In order to achieve better cost control, the agencies propose to prepare civil design plans that would identify site conditions, such as other underground utilities, and allow for competitive bidding. SDG&E agreed to cooperate with local agencies in writing a letter to the PUC requesting clarification on reimbursing municipalities from Rule 20A funds for costs associated with utility undergrounding. These costs would particularly relate to plan and bid preparation and construction oversight for municipal trench projects. This letter was sent to the PUC on May 17, 2011 (Attachment 7). City staff is currently in discussion with PUC staff members in order to provide any information that they need to clarify the situation. Future Under~roundin~ Districts It will take the City approximately five years to fully pay its current indebtedness to SDG&E based on its current rate of accumulation of Rule 20A revenue. There are three districts that were formed in 2002 and 2003 but have not yet been constructed which were estimated by SDG&E to cost approximately $14.16 million. The City will need at least $24 million to finance 10-3 12/13/11, Item ~~ Page 4 of 5 existing underground districts, if the City's current Rule 20A deficit is taken into account. Based on annual revenue of $2.0 million, if no increase in funding is available, we may not be able to consider creating any new districts for another twelve to fifteen years without continuing to accumulate a deficit. There have been some recent discussions with SDG&E regarding more comprehensive itemization of their costs. It is hoped that these discussions, along with improvements identified by the SANDAG Utility Undergrounding Subcommittee will reduce the costs of utility undergrounding. Additionally, the City is discussing the use of additional revenue, such as the 20SD funding included on the utility bill by the City of San Diego and used for the undergrounding of utilities on residential streets, along with reimbursement of staff costs and construction of some street improvements as part of the districts. The 20SD model will allow the City of Chula Vista more cost control over UUD construction costs. In the future, city staff will come back to Council with other issues and/or options to help improve delivery of UUD projects. City of Chula Vista staff has therefore been asked to update Council on the undergrounding program and to look at the additional streets that could be included if the City obtains additional revenue. Under Rule 20A considerations (Attachment 8), the next streets would be collectors and arterials. The remaining collectors and arterials that have overhead utilities and are not included in any existing underground district are shown on Attachment 9. Bay Blvd. is included because the. 69 kV transmission lines still remain, along with distribution lines in certain locations. As expected, with the exception of Oleander Avenue, almost all the streets are located west of I-805. Along the Bayfront District, some work on the 138kV line is to be done with the substation work by SDG&E. The next issue would be how to prioritize these streets. The City's initial rating system was established in June 1979. With the assistance of a consultant, the City reviewed this system and Rule 20A and proposed a subsequent rating system at the February 2008 infrastructure Workshop (Attachment 10). This rating system keeps most of the concepts in the original rating system, such as Average Daily Traffic (ADT), aesthetics (concentration of overhead lines) and linkage to existing undergrounded areas, and includes a consideration of street classification and expands on constructability. For example, it is more cost efficient to combine an undergrounding project with an upcoming street project. Additionally, it is more cost effective to construct an undergrounding project if the street has adequate right of way and full street improvements. Note that it is assumed that the ADT will be calculated based on the segment within each street that has the highest ADT. Staff has reviewed this ranking system and recommends minor changes (Attachment 11). The section on association with public construction has been expanded to include items relating to the City's Pavement Management System. If a street is recommended for an overlay and/or has a Pavement Condition Index (PCI) between 25 ("poor") and 50 ("fair"), it will be appropriate to rehabilitate the pavement and underground the utilities as part of that project. Similarly, trenching a newly constructed street will contribute towards its deterioration, so it is recommended that the City avoid trenching in a street that has received an overlay or reconstruction within the past five years. 10-4 12/13/11, Item ~~ Page 5 of 5 Determining which streets should be included and ranking these streets will be the first steps in preparing the City's Undergrounding Master Plan. Subsequent work will include determining the best method of constructing and financing these districts and estimating the cost of these districts. Staff has, under a minor contract, hired the consulting firm Utility Specialists to assist staff in performing some of this work. DECISION MAKER CONFLICT Staff has reviewed the property holdings of the City Council and has found a conflict exists, in that Councilmember Rudy Ramirez has property holdings within 500 feet of the boundaries of Bay Blvd., which is a subject of this action, and that Councilmember Pamela Bensoussan has property holding within 500 feet of I Street and Second Avenue, which are subjects of this action. CURRENT YEAR FISCAL IMPACT Passage of this resolution will not have any current fiscal impact on the City. ONGOING FISCAL IMPACT There will be no direct fiscal impact on the City. Since utility-undergrounding districts will be financed using 20A funds and /or another dedicated funding source, the impact on the City General Fund is anticipated to be minimal. ATTACHMENTS 1. Utility Undergrounding Projects Map 2. UUD Establishment Data 3. 2011 20A Conversion Summary Report 4. December 23, 2009 Letter from SDG&E 5. Cost Summary 6. SDG&E 20A Conversion Procedure 7. May 17, 2011 to the CA PUC 8. Rule 20A 9. Utility Poles on Arterials or Collectors 10. 2008 Recommended Rating System for 20A Project 11. Recommended Rating System for 20A Projects Prepared by: Elizabeth Chopp, Senior Civil Engineer, Public Works Engineering File #KY078 J.•lEngineerlAGENDAICAS2011112-13-111FINAL1Rev 120612Utility Undergrounding Update2.doc 10-5 C ° ~ ° ~' " ~' ~ 'j ~ s + ° y ti s a m r .° ' c = o_: _ >•S; ` = ? & - F + _ €" 9 s,s° k^ Q E + ~ ~~ 0 G1 o Z c ° ~ o ~ o' ~ °~ 5 - n_ .?$ ~.$ arc .€$ =`.$ ~:i~ .e$ u ^3$ ^^-i$ mse ~ /1y1_ ~6e Fp g~~ ' ' ~`I $~y i ~ `- n z ~ ~ R R _ ~ t ill eta s_t3E' %i l ~g ' ~` ~ w 2 w \ m'.' c; @si ~;; i' ; sia gx. _ €°- S`' gc; $a3 ~ga~a€; t ~ h ( \I /' ~~ ,~I 1 _6 ,I C~-n~d~~ Ytr/"a' Ba i~ l N H Z CW G Z Q Q LL Z Y J d Q1 O N O U d d O U NI O U R C E J H Q O H Z W 2 N J ~ H w ~ ~ W C Z C 0 O N d a d d N l6 ~ ^ ~ N W ~ O ~Z 1 W Li. LL L~ LL LL W lL LL J. 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W J-,~C~m o ao ~ ~ o o~ncocD~oo~o v r O O r~0 ~ O O ( p ~ ~ . ~ ~ ~ ~ N ~ N N N ~ ~ m~ 6Ni C0 ~ 0 0 0 0 O Cn 0 0 0 0 0 0 0 0 O r~~ ~ N'~ N N N ~ d\' N N~~ N N\ T r 0 0 N r O r N C7 Q7 (O f~ OD CA O N r N r r r r r r ~ r r ~ o ° ~ ' N o ° ~r ~n v o ~ N O 0 N P7 C'7 ~ ~ 0 0 0 0 0 O O N N O O O O O N N N N N ~ ~ ~ ~ ~ ~.~ O N ~ 0 0 ~ O N O N ~ O ~~- N ~ ~ r N N r N r N N~ ~V co ~ ~no~o; M r r ~ M r LL N ', J d', ~ ~ C MI ~ ~I ~. r 0 0 rn M N N M O a J U N N ~ ~ a E t o >, O O N C lC a~ 3 > .- ro u ~ c c ~ O y U •~ '- ~ C C i O ~ a a ~ ~ ~ Q c _N c °' C O . ~~-7 .. ~~~~~ San Diego Gas b Electric ®~ 8315 Century Park Court San Diego, {t, 92t23.17A6 D A ~~ Sempra Energy utn9ty`~ Apr'sl 6th, 2011 City of Chula Vista Elizabeth Chopp, P.E. 276 Fourth Ave. Chula Vista, Ca. 91910 Dear: Beth Sub}ect: 2011 20A Conversion Report-SummaN Every year, SDG&E notifies each municipality within our service territory of updated allocations for Ruie 20A Undergrounding Conversions. The 20'11 allocation for the City of Chula Vista is ~ 2,00O,OOD. Please refer to the enclosed 20A Conversion Report for information regarding your 20A allocations and balances. SDG&E funding for these allocations is based upon the number of overhead meters w'sthin each municipal jurisdiction. Please notice that the report indicates a (R} or (NR} af'€er the line item, "PROJECTS 1N PRELIMINARY DESIGN`. The (R) indicates that the municipality has adopted a "Resolution" approving the formation of an underground utility district, and the {NR} indicates "No Resolution". The planning and scheduling o"r 20A Conversion projects are accomplished through municipal Underground Utility Advisory Committees {UUAC), or with appropriate personnel from each city or county. We endeavor to work with each governmental agency, within the guidelines of our filed Rule 20A to help promote underground conversion projects for the current calendar year 201'1, and for the years ahead. if f may be of fiurther assistance, or if you have any questions, please calf me at tl~e number listed below. My hours are 7:00 AM to 4:00 PM, Monday through Friday. Sincerely, ~, David Emerson Governmenta4 Liaison Planner 858-654-1136 cc: Stuart tNells (Public Affair Mgr} Attachment X0-8 ,~ ~' Scmpra Enrrgy ~~a:ry- ZD11 ZDA Conversion Report - DEiA[L SUBTOTAL TOTAL COMPLETED PROJECTS in 2010 L St n832981 (Monserate to Nation) S 3,391,369 4th Av K832984 (L St to Orange Av) S 5,939,114 5 9,334,483 2010 ADJUSTMENTS to previously carnpleted projects None S PROJECTS IN CONSTRUCTION -ESTIMATED COST S None ROJECTS 1N PRELIMINARY DESIGN (R) - S - - S - P J St #630441 (e!o Broadway to Hilltop} ON HOLD S 6,210,672 J Stl~830447 (btvm Hilltop and Lori Ln) OtV HOLD 5 4,593,604 L 5t#832973 (Broadway to 3rd} Oril HOLO S 3,352,525 S 14,156,801 PROJECTS 5N PRELIMINARY DESIGN (NR) Idane Page 2 S - S - A1EZ:SId 3!31!2011 10-9 ~E ~1~'Y ®F C~ ~~A ~~S°~'A ;. ~ij~5c:~ziprZ L-ncrsy u~any' 2411 24A Conversion Resort -SUMMARY ALLOCATION BAt.ANCE as oz 12131110 S {2,299,494} COMPLETED PROJECTS in 2010 S (9,330,483} 2010 ADJUSTMENTS to previously completed projects S - ALLOCATIONS for 2011 S 2,000,000 ALLOCATION BALANCE as of 313112011 ~ (9,629,977) PROJECTS IN CONSTRUCTION -ESTIMATED COST S PROJECTS IN PRELIMINARY DE51GN (R) S (14,156,8D1) PROJECTS IN PRELIMINARY DESIGN (NR} $ - Ui~COPAMtTTED FUNDS ' S (23,786,778} TOTAL ALLOCATIONS TO DATE: S 50,46D,136 ' Approximate amount -value wiI{ be adjusted wiih completion of prajects as aciual project costs are reaorded in place of estimated costs. Page t MEZ:IId 3/31lZO'ii 10-10 ATTACHMENT A '' Sempra Energy ui;;ity' Francisco Rivera, P.E., T.E. Principal Civil Engineer City of Chula Vista 276 4a' Ave. Chula Vista, CA. 91910 Re. Utility Undergraunding Funds for Chula Vista Dear Francisco, San Diego Gas & ESectric 8315 Century Park Court San Diego, CA 92123-1548 December 23, 2009 This letter is in response to our conversation and your letter of 7uly 27`}', 2009 regarding the expenditures within the City of Chula Vista related to SDG&E's Rule 20.A undergraunding program. I have attached a detailed cost breakdown for the actual costs of Chula Vista's Bay Blvd conversion, also known as TL138I5. As noted in your letter, SDG&E has deducted $20,044,526 from the City's 20A allocations. This represents the cost of allowable work through the report filing date of March 31, 2009. This amount is less than the $20,500,000 authorized by the Chula Vista City Council at the required public hearing on April 25, 2006 and below the $20,400,000 amount previously agreed to by the City. As the cost breakdown indicates, there are additional charges such as overhead conductor removals that SDG&E will deduct from the City's allocations on our next report in March 2010. At that time, SDG&E will deduct appropriate additional costs, with total project casts not to exceed $20,400,000. The cost breakdown also indicates the costs associated with system upgrades which we agreed would not be deducted from the City's allocations. Your letter requests details of the changes in the cost estimates done between the drafting of the Memorandum of Understanding in 2004 (M~U) and the estimate presented to the City Council in April, 2006 which was based on very preliminary engineering information. When you review the actual costs you will note additional work that was required for the warlc to be done that also helped expedite the removal of the overhead bridge structures, such as the Bank 50 replacement at South Bay Substation. This was an additional cost of $1.2M as .discussed at length and agreed to by both the City and SDG&E as a 20A cast. More costly construction methods were also required once detailed engineering studies were completed. For example, it was determined that the construction method (jack and bore) assumed for the conceptual cost estimate was not feasible and the only feasible option was to use horizontal directional drilling (HDD) for the Sweetwater River 10-11 installation. This increased project costs substantially over the original $1.SM jack and bore estimate. In addition, costs of materials increased substantially. The cost of 138kV cable for the project increased markedly between the time of the original estimate and the time of construction due to market conditions. Despite these necessary changes, the amount deducted from the City's allocations is still below the amount authorised by the City Council. Your letter also requested clarification as to the construction for other 20A projects including the distribution projects on L Street and 4`~ Ave. There was no discussion in the MOU about borrowing forward for their benefit. Therefore these projects fall under the governance of CPUC Rule 20.A, and as such, SDG&E is required to administer these projects within the CPUC guidelines. Among these guidelines is a directive requiring SDG&E not to exceed 5 years of borrowing on Rule 20.A allocations, which in the case of Chula Vista is a total of $lOM for all projects. SDG&E has no discretion in this area. As the 2009 20A Conversion Report sent to city staff states, Chula Vista has currently borrowed $3.9M before accounting for the charges attributable to the L Street and 4`~ Avenue projects. Our current estimate for the 4`~ Avenue project is $5.2M, which will be deducted from the City's allocations upon project completion. These costs are above the original estimate of $4.4M. The costs for L Street are currently estimated at $3.3M, which is also above the original estimate of $2.1M. If both projects were completed in 2009, SDG&E would be required to deduct the costs for both projects on its March 2010 CPUC filing along with granting the City an additional $2.OM in allocations as follows: Date Item Amount Balance 3/31/09 Current Balance (after 13185) $(3.9M) 12/31!09 4a' Avenue $(5.2M) . $(9.1M} 12/31/09 L Street $(3.3M) $(12.4M} 12/31/09 Removal of 138kV $(0.3M) $(12.7M) 3/31/10 2010 Ruie 20.A Allocations $ 2.OM $(10.7M) Completing these projects would place SDG&E in violation of CPUC Rules. Therefore, SDG&E cannot use its own resources to complete construction on L Street until some time in 2010. The delay would allow the City to recoup an additional $2M in allocations prior to SDG&E's March 2011 CPUC filing. Alternatively, if timing is critical for the City, it could consider paying for some of the work through its General Fund or other revenue sources. SDG&E would Iike to work cooperatively with the City to reduce SDG&E's costs on these and other upcoming projects in order to allow them to be completed sooner and make more efficient use of the City's 20.A allocations. We have conducted an analysis of 20.A conversion costs in Chula Vista as compared to the other cities in our service territory, and these findings are attached far your use. 10-12 I appreciate your patience in receiving a written response on this issue. Please Iet me lazaw if you have any more questions regarding the City's Rule 20.A allocation credits. Should you have any questions, please do not hesitate to contact me. Sincerely, C`~~ David J. Emerson Governmental Liaison Planner San Diego Gas & Electric (858} 654-1136 10-13 N N N ~ ~ Q W l~, ~ ~ ~ ..7 O ~ s°n ~ of F ~ m m O f- o~ QI h ° N ° m o o a O o o, v ~ , ° , ° rn ~ o ~ o o z ~ ~ ~ ~r ~ v m rQ ~ c F v o rn ca ~ ~ m m m rn W a m N v o m C7 m m rn ~ w o A@ ~ ..~ cv O ~ ` r^ ~ h C m (h QI 1~ tO O tT ~D D t7 P7 h N C [Ij (+j Of lt1 t 1~1 ~ ~ ~ {~ m O ~ M T 00 ^ ~ ¢ ¢ W ~ m ~ r ~ N n V UF c a p 0.. eS c t~ `~ U ~o ~ u N a m ~ -~ o ~ ~ ~ a ..Q. ~ -.1 °o m °o o v o o~ ~ ~ CS W Q ~ O ~ S O ° M C' 1j T C tO ~ a ~ ~ A °: r n o ¢ U ~ ~ o N -- W F„ o 0 0 o O a e~ U O O O O S p C1 O ~s e ~ v ~ v ~ c ~ ~ er m A m m `a M p „ i a tD i c ca m o i ca tD s o` ~ R ~ ~' ? ~ a F- '> m ~ ~ U C U ~ a ai _ u U C 0 O ~ ~ O 2 ~ ? t ~ C ~ N r O m N U m f- O u- ~ m C a~ a`i °? m` ~ ~ ~ 3 ~ 3 ~ 3 Q ~ Z V J CD fA (U f3 c C ~ a o 0 0 o Q- m ~ m ID m m ro m ~ m m m ~~ U '~ t ~ ~ ~ ~ E r n ~ A 7 p 7 i 3 ° 7 ° ~ o } A C [ t n m r n t '~ ~ N ~ f7 V' ~O ~ O N ~.. Q ~ ~ ~ ~.. ~ [I Fi A~ O D O O m FG N N N c7 N ~ N N ~ .... o ~ °1 O TL 6 Q~ ~ ~... d O H C d o '° o m m E c 0 0 ~ ~ `O o -°~ ~ ,~ a U m E m " ~ a ~ -~ r ~, a ~ o ~ m ` ~ ° U m v m 'd o 0 N 10-14 ° ° p O O r O O' O T O m 10 f'1 O a a ai 3 0 2 m U ~ p ,,,,~ a m i a P+ ~ a O1 d `m m ~ ~ CN O ~ C.7 L U d T O ~ ~ O •C N ~ ~ N ~ O x O o aac uJ U dl ~ ~ 1 ~ `m ~ o 0 3 m a m N ~ m R U° tin uL"'i E m ~ m ;~ p2 m ~ E t ~ '~ 'N ~ ? O W ~ ~ F m o Q) N fa° ~ N uJ ATTACHMENT 5 UTILITY UNDERGROUNDING COST SUMMARY District ~ Initial Cost 2007 Cost 2011 Cost (Estimated) (Estimated) ', Bayfront $14,000,000 $20,000,000 $20,400,000 Phase I & II Phase I & II Phase I (Actual) _.. Fourth Ave. from L Street $1,150,000 $2,967,000 $5,939,114 + __to Orange Ave• . _ . _(12/01)_..... - . _... _ __(Actual)_ _- East LStreet from $400,000 $1,654,000 $3,391,369 + Monserate Ave. to Nacion (11/02) ~ (Actual) Ave __._ _ ....... _-_...~_ ... ,..... __ ....- .. .. - . ~_ _. - - .._..~ . _ -....,_ ...__...____.___. ~ .._ _ _._..~._-~ . - L Street from Broadway to '~ ~ $700,000 $2,009,000 $3,353,000 Third Ave. 1 1/02) ` (Estimated) J Street from Broadway to $1,000,000 $2,038,259 $6,211,000 .Hilltop Drive (2/03)_ (Estimated) East J Street from Hilltop $1,600,000 $1,553,320 $4,594,00 Drive to Lori Lane 2/03 Estimated 10-15 _ _ . - :~~~C~~EN-~ ~ F f Project Management Fact Sheet n ~5empra Energy ~,iany 20A CONVERSION PROCEDl3RE (Applies to 20A Conversions Only) 20A Conversions are projects that use utility funds allocated to the Municipalities as a percentage of local revenue. The Municipalities decide which areas will be converted within the guidelines of Rule 20A. A. Generallnformation 9. Projects to convert overhead lines to underground are usually large, complex and politically sensitive. SDG&E's assigned Liaison Planners primary role is to manage all aspects of 20A projects, including coordinating with customers, municipalities and communication companies, as well as managing construction schedules and job costs through,completion of construction. it is necessary for the Liaison Planner to be informed and involved in both active and proposed conversion projects. 2. Conversions are planned by the Underground Utility Advisory Committee (UUAC), which is a group of representatives from the Municipality, SDG&E and Communication Companies. 3. UUAC preparation of individual underground districts should start a minimum of 1 to 2 years prior to commencing construction. 4. Municipalities may use20A funds for 208 and 20C engineering fees. 5, Ail SDG&E costs associated with the 20A project will be deducted from the municipality's allocation balance with the exception of system upgrades requested by SDG&E. if the Municipality requests a financial audit of a'20A Conversion, the request must be processed through the CPUC 6. Once SDG&E provides the Municipality a copy of the trench rou#e design, the Municipality has 60 days to review it for changes and accept it. If canfirmaticn is not received within 60 days, SDG&E will assume it is accepted and continue with the design process. Engineering fees for re-design will be required for all manic"spally-initiated design changes requested after the conversion design has been accepted by the Municipality. Engineering fees, payable to SDG&E will be deducted from the Municipality's 20A Allocations at the completion of the conversion prajeci. 7. SDG&E will review the existing overhead facilities within a proposed conversion boundary for prior land rights. If prior rights exist, SDG&E will create a Joint Use Agreemen# and identify an equiva{ent area, comparable in scope, to cover replacement.wlth underground facilities at a mutually agreed upon area. SDG&E will inform the Municipality early in the conversion process so that the Municipality may provide this information to their City Council. Overhead removals may not begin until the Joint Use Agreement is signed and approved by the Municipality. 8. Temporary or permanent relocation of SDG&E facilit[es within an easement must be paid for by the Municipality, and may not be deducted from 20A allocations. 9. )f the Municipality plans a Capital Improvement Project and decides to convert an existing distribution pole line in the Franchise area as part of the conversion instead of requesting the facilities to be relocated, SDG&E will provide the Municipality with an Avoided Cast Reloca#ion credit. If the relocation is due to construction methods and/or temporary traffic routing conditions, no Avoided Cost Relocation credit will be applied. This does not apply to facilities within easements, even #hough the easement overlaps the franchise area. 10. 20A Conversion Designs are the design responsibility of SDG&E and are not available to be designed by an Applican# Designer. 91. The Municipality has the option to include the priva#e property service trench and meter panel modifications on the 20A conversion project and have them paid by the 20A allocations, or the Municipality may require the property owner to be responsible. If the Municipality decides to include these costs in the 20A project, it must be s#ated in the Underground District Resolution. 12. After a 20A conversion is complete, the Municipality is responsible for a minimum of 5 years, for any relocation of SDG&E facilities within the conversion boundary. Southern Region [Metro} Northeast District Orange County ' B315 Century Park Ct 210 571 Enterprise Stree! 662 Camino De Los Mares I San Diego, CA 92123 Escondido, CA 92029-1109 San Clemente, CA 92673 858-636-6808 7fi0-460-7745 949-361-8066 03123!11 - - 10-16 20A CONVERSION PROCEDURE Project Management Fact Sheet Page 2 of 5 B. Coordination of a New Business Development with Street Imurovemenfs and a 20A Conversion 1. Resolution must be passed and 5DG&E must receive a let#er from the Municipality stating that an underground conversion district is in the process of being formed. 2. The Fetter should state that the Municipality will commit 20A allocations towards the project in partnership with the New Business Developer. 3. The Daveioper will install the trench, conduit and substructures, while the Municipality is responsible for the costs associated with cable, connections, equipment and overhead removals. (See C4 -Municipal Trenching for trench cos#s that will be reimbursed from the Municipality's 20A allocations) Rule 20B and 20G credits, such as equivalent overhead'and depreciation, may not be used in conjunction with 20A funding. 4. As a condition of development, the Municipality has the option of requiring the developer to install trench, conduit and substructures at their expense. C. Procedure - 20A Conversions 1. Municipality will: 1.1. Provide a Nstand/ar maps of proposed projects}, 1.2. Participate with UUAC to provide a detailed review of the project, including the walk-through and preparation of the tentative boundary map. At the walk-though the Municipality representatives will review for existing road base conditions, street repaving and resurfacing requirements, traffic plating requirements, traffic control requirements, traffic loops, proposed SDG&E crew working hours and working windows. 1.3. Request a streamline cost estimate from SDG&E. The Municipality may request multiple estimates for work based on straight time and/or overtime hours. 1.4. Prepare a preliminary boundary map, based on the tentative boundary map, review the streamline cost estimate, pass a Resolution of Intention to create an Underground District and set the date of the public hearing. 1.5. Notify affected property owners, occupants, and utilities at least 30 days prior to the public hearing dafe. At the public hearing, oral and written testimony is taken and the governing body determines if the project is in. the public interest. If the majority votes in favor, the district is farmed. 1.6. Notify the property owners and utilities of the conversion in writing, with a copy of the adapted resolution/ordinance and boundary map. 1.7. If the Municipality has chosen to have the 20A allocations responsible for the private property service conversion work, distribute required "permit to Enter" (PTE) forms to all property owners who will have their service modified, The Municipality will collect ail copies and forward them to SDG&E. A copy must be retained by the entity performing the trenching. SDGB~E wilt always require a copy of the PTE in order to modify electrical panels to accept underground. 1.8. Report individual service panel inspection clearances to SDG&E. 1.9. Be responsible for all necessary Municipal permits (e.g. Excavation, Encroachment and Traffic Control Plan Review), residential and commercial permit fees and their administrative expenses. These fees include collecting permit fees from individuals who modify service panels to accept underground service. Rule 20A funds may not be used to pay Municipal permit fees. Other routine Permits (e.g. Ca{ftans} are normal work and are a part of SDG&E normal overheads, and wifi not be directly charged to the project. Nan-routine Permits (e.g. Railroads, Bore Permits) are directly charged to the project and will include SDG&E overheads. 1.10, Notify property owners if a project is reactivated after being placed on hold or rescheduled. 1.11. Provide SDG&E with a street light trench and conduit design based on SDG&E's Trench & Conduit Design, including designation of available service paints. 1.12. Notify SDG&E of its intent to acquire all necessary easements to SDG&E's specifications. (SDG&E to provide template}. No direct credits are given for this; rather, the set fee per facility to acquire easements will not be charged to the project. Southern Region {Metrol Northeast District Orange County 8315 Century Park Ct 210 577 Enterprise Street 662 Camino De t_os Mares San Diego, CA 92123 Escondido. CA 92029-1909 San Clemente, CA 92673 858.636-6805 760-460-7745. 949-361-8066 03/Z3111 ~~-~7 2DA CONVERSION PROCEDURE Project Management Fact Sheet Page 3 0# 5 SDG&E will: 2.1. Participate with UUAC in a detail review of the project, including the walk-through and preparation of the tentative boundary map. Walk-through activities will include suggestions as to cost-effective use of 20A allocations, possible exemptions far poles which are not cost-effective #o underground, and identify. SDG&E facility conflicts with the Americans with Disability Act (ADA}. 2.2. Notify Municipality of possible unsafe existing meter panels. Municipality will notify and require property owners to upgrade or correct infractions of their electric meter panels at their personal expense. 2.3. Send a letter of contirmafion identifying conflicts with ADA requirements to the Municipality. Ali conflicts wil! be cleared as part of the project. 2.4. Prepare and provide the Municipality with stream{ine cost estimates per work order level, Including SDG&E overhead cast calculations. SDG&E will also verify the Municipality's allocation balance. 2.5. Review and approve preliminary boundary map and notify the Municipality by fetter or email. 2.6. Work with the Municipality to determine which entity (SDG&E or Municipality} will provide the trench and conduit installation, based on SDG&E's electric design. 2.7. Send the Municipality a copy'of the Conversion Services Warlcsheet with the typical "Permit to Entet" (PTE} form. 2.8. Submit the final Trench & Conduit jab design, electronically in AutoCAD format, to the Municipality and Communication Companies. SDG&E will request Joint Trench Offers (JTO's} from the Communication Companies. The Municipality may use the job design, if desired, as a basis for their street lighting design layout. - 2.9. Acquire necessary easements, unless notified beforehand of acquisition by the Municipality. 2.10. ]f SDG&E is trenching, determine, acquire, process and implement Storm Water Construction General Permits (S#orm Water Pollution Prevention Plan, SWPPP}, ArchasologicaUCultural Permits and Environmental Permits. NOTE; Traffic Control Plans and Municipal Permits must be acquired by the trenching entity. 2.11. Establish a construction timeline and communicate this to the Municipality and joint trench participants, only if SDGi3~E is providing the trench. 2.12. ]ssue Trench & Conduit and Cable Pole Jobs to appropriate entities once PTE's, JTO's, Municipal Street Light Design, required easements and all necessary Permits including TCP's and Municipal Permits are acquired. ' 2.13, if SDG&E is performing the trenching and has elecfed to use an outside contractor for these activities, they wilt invite the Municipality to partcipate in a pre-bid meeting, if one is held. SDG&E will advise the Municipality of the bid amount, upon request. In this case, SDG&E will provide the Municipality an estimate of the total Trench & Conduit Jab costs to be deducted from their 20A allocations. 2.14. A Street lighting as-built will be required prior to energizing any street lighting system, either utility- owned ar municipally-owned. 2.15. Remove overhead facilities after underground cable job is energized and all services have been completely cu# over to the new underground system. The Municipality may request a delay in removing the overhead system, if required, to maintain roadway lighting until the new underground light system is in place. 2.16. Update the Municipality of project expenditures, percentage of job completion and project status on a monthly basis. At the completion of the conversion project, expenditures may be broken dawn into the following categories: Labor, Material, and Equipment. All project-related costs must, by tariff, be deducted tram the Municipality's allocations. Southern Region {Metro] Northeast District Deange County 8315 Century Perk Ct 210 571 Enterprise Street 662 Camino De Los Mares San Diego, CA 92123 Escondido, CA 92029-9109 San C3emente, CA 92673 858-636-6805 760-480-7745 943-361-8066 03123!11 10-18 20A CONVERSEON PROCEDURE Project Management Fact Sheet Page 4 of 5 3. Entity responsible for providing trench will: 3.1. Review and approve Joint Trench Offers. SDG&E will, as a courtesy, review JTO's for municipaliy- trenchedjobs. 3.2. As a courtesy, instal! municipally-supplied conduit far muNcipal owned street {ighting system in the joint utility trench (LS-2 Rafe}. If SDG&E is performing trenching, the lighting conduit may not extend more than 5' beyond the joint trench and the Municipality must contract for the remaining trench and condui# installation along with the lighting installation. l~ the Municipality is trenching, additional trench to accommodate lighting MUST be broken out as a separate fine item on bid documents, this is not subject to reimbursement by SDG&E. 3.3. Organize Pre-Construction Meeting. Attendees should include: Municipal representatives, SDG&E (Liaison Planner, Conversion Designer, Field Operations Supervisor, Trench Inspector, Construction Services Con#ract Administrator, and Field Utility Specialist) and doin# Trench participants. 3.4. Provide a trenching as-built to SDG&E. If SDG&E is performing trenching, the Municipality may request a meeting, at which time the entire conversion as-built may be reviewed, but not retained by the Municipality. if the conversion is being worked together with a Municipal Street Improvement Project, when requested, SDG&E will provide an as-built for specific areas of the street improvement. If the Municipality wishes to retain any documents regarding the installation, SDG&E wil[ provide a copy of Its electric facility maps and gas plats. 3.5. Acquire Traffic Control Plans, Municipal Permits, Storm Water General Construction Permits {Storm Water Pollution Prevention Plan - SWPPP), Archaeological/Cultural Permits and Environmental Permits. 3.6. Perform final wa#k through, attendees should include Municipal representatives (Residential Engineer), SDG&E (Liaison Planner, Construction Services Gon#ract Administrator, Field Operations Supervisor, Trench Inspector). 4. Municipal Trencftfig: 4.1. if the Municipality decides to perform the trenching activities, they wilt be responsible for all costs related to administering and overseeing these activities. These responslbilitieslnclude: 4.1.1. Pump, dewater and dispose of liquids from existing SDG&E manholes and handho-es as required. Municipality has the option to use SDG&E's Haz-Mat Service to pump, transport, treat and dispose of possible contaminated water, these arrangements to be coordinated with the SDG&E inspector. Costs for this service will be deducted from Municipality's 24A funds. 4.1.2. Provide qualified electrical workers (standby) to dig near energized faciti#ies and to install pull rape in conduits from energized facilities. SDG&E will provide contact information far contracting the Qualified Electrical Workers. 4.1.3. Provide proper grade for the setting of facilities. 4.1.4. Determine, acquire, process and implement: Tr~fFc Control Plans, Municipal Permits, Storm Water General Construction Permits (Storm Water Pollution Prevention Plan - SWPPP), Archaeological/Cultural Permits and Environmental Permits. 42. SDG&E will be represented by a Trench Inspector in the field. 4.3. SDG&E will provide a "Not to Exceed" letters#ating the maximum cast it will reimburse the Municipality for its wnrk. The Municipality will submit to SDG&E its first, second and third acceptable bids for review and approval. If the contractor bids for Municipals#y exceed the "Not to Exceed" amount, SDG&E reserves the right to reject alt municipal bids and may elect to do the electric conversion trench independen#fy. 4.4. The Municipality must incorporate SDG&E's General Conditions in its bid documents. In the event of inconsistency between the Municipal bid documents {Municipal General Conditions} and SDG&E's Genera[ Conditions, the mast stringent shalt prevail and wilt be subject to mutually agreed upon and negotiated benefits. Southern Region (Metro} 8315 Century Park Ct 210 San Diego, CA 92123 858-636-6805 03!23/11 tlorfheast District Orange County 571 Enterprise Street 662 Camino De Los Mares Escondido, CA 92029-1109 San Clemente, CA 92673 760.480-7745 949-361-8066 10-19 20A CONVERSION PROCE©URE Project Management Fact Sheet - Page 5 of 5 4.5. SDG&E will reimburse the Municipality for the Trench & Conduitjob worked by their contractor an a monthly schedule, ar as agreed upon. The Municipa[ity.will request reimbursement by submitting an invoice to SDG~E and will forward their supporting documentation, including the actual amounts paid by the Municipality to their contractor. 5DG&E will not advance funds prior to the activity taking place. SDG&E may also pay for Feld changes if preapproved by the Liaison Planner, appropriately documented, reasonable, and necessary for the conversion. 4.6. SDG&E may no# reimburse the Municipality for administrative fees associated with its trenching activities, including contract preparation. 4.7. The amount deducted from the Municipality's 20A allocations will include the cost of all applicable SDG&E overheads in addition to the amount reimbursed to the Municipality for its activities. SDG&E will provide a rough estimate of expected overhead calculation amounts. Fact Sheet Subject to Change *Contact SDG&E Governmental Liaison Planner for Latest Revision Southern Reg[on•(Metrv} 8315 Century Park CY 210 San Diego, CA 92123 858-636-6845 03123!11 Northeast District 571 Enterprise Street ' Escondido, CA 92029-1109 7613-480-7745 10-20 Orange County 662 Camino De Los Mares San Clemente, CA 92673 949-361-6066 ~~~ r~ ~~~~~~t~~ ~. clnr o~ May 17, 201.1 ~~~~~~-~ IJepartme~tt of Pub~.ic ~T®rks File #KY-07~ Nlichael R. Peevey, President California Public Utilities Commission ~0~ Van Ness Ave. San Francisco, CA 9102 REQUEST' FOR CLARIFICATION ON COSTS APPLICABLE TO RULE 20.x1 (UNDERGROUNDING}PROJECTS Mr. Peevey, The Cities of Chula Vista, Santee, and Vista, representing the cities in San Diego C~LStuy and the County of San Diego ("cities"), in cooperation with San Diego Gas and Electric Company ("SDG~..E"), would like to request clarification regarding the reimbLU-sernem of expenses related to ceI-tain municipal activities required for Rule 20.A projects. As you know, Electric Rule. 2a.A projects ~tre among the most expensive and difficult to manage type of electric distribution construction in California. Agency representatives and SDG~E have been meeting together regularly over the past year in order to devise a policy to improve efficiency, reduce construction costs and improve scheduling associated with construction of Rule 20.A undergrounding projects in the San Diego region. In an ef'1'art to improve construction effectiveness and reduce cost, we have agreed in the past that municipalities may construct electric conduit and infrastructure when done in concert with municipal roadway improvements. Herein, we are requesting clarification on the reimbursement of certain associated municipal costs when these activities are performed, either with or without related municipal roadway improvements. These aI-t: the most difficult construction elements to control in terms of time and cost. As the typical constructors of other street inl~rastt-ucture, we recognize that municipal agencies bI"lilg substantlal expertise to the methods and practices fUI' L1ndel'gl'oUnd infrastructure construction. We are seeking authorization to bring this expertise to the Rule ZO.A projects that our citizens, through the CPUC and SDG&E, financially support. To apply this expertise, municipalities need the support of Rule 30.A funds. Such expertise would include "value engineering" principles that focus on efficiency, efl'ectivcness, competitive bidding and construction management. In tal:Ing on the responsibility 1`or the trench, conduit wind paving ~vorlc in collaboration with SDG&E, municipalities need the same type of Ruie 20.A resources that would otherwise be =lvailable to SDG&E. We recognize thaE Ruie 20.A resources come from our citizens and are committed along with SDGR~E to see that they beneFit from the best use of these resources. With partnership between SDG~.E and municipalities and authorization by the Commission, vve believe 4ve have a better way to meet and hopefully exceed our communities' expectations f'or undel-groundingglectric pole lines. Engineering- 276 Fourth Avenue, Chula Vista, CA 91910 ~ (619) 691-5021 I fax (Gt9) 691-5171 ~ ~v~yw.chulavisEsca.gav Operations - 1800 Maxwell Road, Chula Visia, Crl 9191 k y6~9) ~~-6000 I` (ax ((i19) 397-6259 California FUC ? May I7, 20I I We are aware that there vas a previous request to SDG&E dated September 20, 1991 {attached) that pertained to the reimbursement from Rule 20.A funds fo~• cities' administrative costs related to underground conversion projects. This letter was specifically intended to address the issues related to the cities' costs of farming underground districts with SDG~iE performing all design and consa-uction functions. While we certainty respect this staff opinion, we are herein seeking support for only those design Mild construction responsibilities associated with municipal constructed trench, conduit and pavement. Examples of such activities include construction oversight, as well as plan and bid document preparation. ~Ve appreciate your Help with this matter, which we feel is a critical part of our efforts toward improving the efficiency of the utility undergrounding process in our region. Since this is a complex issue, if you tivould like us to sclledttle a meeting to discuss our request in person, please let us l:naw. You may contact Francisco Rivera, Principal Civil Engineer at rile City of Cllula Vista, at (6I9) G91-~04~ (e-mail: friveraC~ci.chula-vista.ca.us}. Thank you for your time and consideration. Sincerely, ~. 'l C. rrancisco X. Rivera, P.E., T.E. Sudi Shoja, P. Principal Civil Engineer, City of Chula Vista Assistant Directo ;City of Vista Carl Schm .E. Alan 1Vlarcher Principal Civil Engineer, Cit}J of Santee NIanager, SDG&E Project lYianagenient Attachments (2} Cc: Larry Pierce. P:ut Director of Engineerim_, City of vista David L. Gcicr. Vice-President. Eteetric Operations. SDG~k.E Rick Gardner, Project ivlan:u~ement Supcrvisnr, SDG&E Claudia Valcnzucla. PuUiic Affairs \~fanager, SDG&L- Maria Zumaya. Project Management Supct~•'ssor, 5DG8:E County of San Diego and odor local agencies F7{.R/EMC J:1Em~inecrlADVPLA\~UUDIS'IICTAC UU SucommittcelRcquest for ~dvicc Letter SDGE revl.doc 10-22 r ' ••PETE WILSON, Goremor r STATE OF CAIIFQANIA PUBLIC U1'ILf1'fE5 COMMISSfOIy ~~ ... • ~'" ~'~_•~ 5QS YAN NESS AYENl1E n w SAN FAANCtSCD, CA 94102.3248 September 20, 1991 .. .. -~ . ~ . Joseph R. Kloberdanz , ~ ~ ~. ~ . San Diego Gas & Electric .' ~ Regulatory Affairs Manager • P.O. Box 1$31 . San Diego, CA 92112 ~. Dear Mr. Klobezdanz: This is in reply to your September 12, 1991 letter regarding the disposition of certain admin~.strative costs for Rule 20A - Underground Conversion Projects. You ask if cities' - administrative costs such as public notification, hearings, personal contacts, staff costs in processing a resolution, and conversion coordination can be paid from Rule 20A funds. The answer to your question is "No". Administrative costs of public bodies which have underground districts should not be •• included in your Rule 20A Underground Budget. We are satisfied that there is no utility tariff rule provision nor any reference from a Commission Decision that will permit the recovery of administrative costs through the Undergrounding Budget: You may, therefore, continue to advise the cities of this. Should you have any further questions, you may contact Bill Gaffney at (415) 703--2I42. Sincerely, ~ ~~ Dou~g~s M. ong, ~ief Energy Branch Commission Advisorty ~ Compliance Division DUG ~WG ~ ~ :::?- ~ • ., ~ :.>..:'r .:.... ... . Jr lam. .. ..'..1 ~, .. .. - ~ Sar, Ciego G2s R Electric SEP 24 1991 RE~t!! KTLIFY kF~~s1t~S 10-23 •- .i 0.I ~ l V ~ I~ L San Diego Gas & Electric P,D..HOXt&11•SaN DfEGD, G-92tt2. 679!6462000 ,, ,,,,,,, j~~~f.,h September 12, 1991 FrLeNa PUG 100 Rule 20A Mr. Douglas M. Long Chief, Energy Branch California Public Utilities Commission 505 Van Ness Avenue San Francisco, CA 94102 Dear Mr. Long; Recently we have been receiving inquires from a number of cities within our service territory concerning the disposition of certain administrative costs for Rule 2OA Underground Conversion Projects. Specifically, they are asking if their administrative cost such as public notification, hearings, personal contacts, staff costs in processing a resolution, and conversion coordination can be paid from Rule 20A funds. Our interpretation of past commission decisions is that they do not permit the recovexy of administrative costs through the Rule 20A Underground Budget, and we have consistently advised the cities of this but they continue to ask due to their budget constraints. Would it be possible for you to send us a letter similar to the one you sent to the County of San Joaquin on March 13, 1990 explaining the use of Rule 20A funds. It would be of considerable help to us when we receive these inquires. We appreciate your support on this matter, and if you have any questions on our request please contact Gene McElroy at (619) 696-2740. Sincerely, Joseph R. Kloberdanz Regulatory Affairs Manager JRK:rg cc: E.E. McElroy P,J. Zellers 10-~4 ~~ San Diego Gas & Electric Company San Diego, California - ~ ~~=~ Revised Cal. P.U.C. Sheet No. 15504-E Revised 6779-E Canceling Revised Cal. P.U.C. Sheet No. 6780-E RULE 20 Sheet 1 REPLACEMENT OF OVERHEAD WITH UNDERGROUND ELECTRIC FACILITIES A. The Utility will, at its expense, replace its existing overhead electric facilities with underground electric facilities along public streets and roads, and on public lands and private property across which rights-of-way satisfactory to the utility have been obtained by the Utility, provided that: 1. The governing body of the city or county in which such electric facilities are and will be located has: a. Determined, after consultation with the Utility and after holding public hearings on the subject, that such undergrounding is in the general public interest for one or more of the following reasons: (1} Such undergrounding will avoid or eliminate an unusually heavy concentration of overhead electric facilities; (2) The street or road or right-of-way is extensively used by the general public and carries a heavy volume of pedestrian or vehicular traffic; and (3) The street or road or right-of-way adjoins or passes through a civic area or public recreation area or an area of unusual scenic interest to the general public. (4) The street or road or right-of-way is considered an arterial street or major collector as defined in the Governor's Office of Planning and Research General Plan Guidelines. b. Adopted an ordinance creating an underground district irr the area in which both the existing and new facilities are and will be located, requiring among other things, (1) that all existing overhead communication and electric distribution facilities in such district shall be removed, (2) that each property served from such electric. overhead facilities shall have installed, in accordance with the Utility's rules for underground service, all electrical facility changes on the premises necessary to receive service from the underground facilities of the Utility as soon as it is available, and (3} authorizing the Utility to discontinue its overhead service. 2. The Utility's total annual budgeted amount for undergrounding within any city or the unincorporated area of any county, shall be allocated as follows: a. The amount allocated to each city and county in 1990 shall be the highest of: (1) The amount allocated to the city or county in 1989, which amount shall be allocated in the same ratio that°the number of overhead meters in such city or unincorporated area of any county bears to the total system overhead meters; or (2) The amount the city or county would receive if the Utility's total annual budgeted amount for undergrounding provided in 1989 were allocated in the same ratio that the number of overhead meters in each city or the unincorporated area of each county bears to the total system overhead meters based on the latest count of overhead meters available prior to establishing the 1990 allocations; or 1C9 Advice Ltr. No. 1428-E Decision No. 01-12-009 Issueo by Lee Schavrien Vice President Reg~1:fl~ ~ffairs N N N L 1 L Uaie rued uw [o, cwc Effective Jul 25, 2002 Resolution No. E-3767 i~7 ~ ~~ Revised Cal. P.U.C. Sheet No. 15505-E San Diego Gas ii< Electric Company Revised 6780-E san Diego, California Canceling Revised Cal. P.U.C.-Sheet No. 6781-E RULE 20 Sheet 2 REPLACEMENTOF OVERHEAD WITH UNDERGROUND ELECTRIC FACILITIES A. 2. a. (Continued) (3) The amount the city or county would receive if the Utility's total annual budgeted amount for undergrounding .provided in 1989 were allocated as follows: (a) Fifty percent of the budgeted amount allocated in the same ratio that the number of overhead meters in any city or the unincorporated area of any county bears to the total system overhead meters; and (b) Fifty percent of the budgeted amount allocated in the same ratio that the total number of meters in any city or the unincorporated area of any county bears to the total system meters. b. Except as provided in Section 2.c., the amount allocated for undergrounding within any city or the unincorporated area of any county in 1991 and later years shall use the .amount actually allocated to the city or county in _1990 as the base, and any changes from the 1990 level in the Utility's total annual budgeted amount for undergrounding shall be allocated to individual cities and counties as follows: (1) Fifty percent of the change from the 1990 total budgeted amount shall be allocated in the same ratio that the number of overhead meters in any city or unincorporated area of any county bears to the total system overhead meters. -- -..._ ____ .._ _..__ (2) Fifty percent of the change from the 1990 total budgeted amount shall be allocated in the same ratio that the total number of meters in any city or the unincorporated area of any county bears to the total system meters. c. When a city incorporates, resulting in a transfer of Utility meters from the unincorporated area of a county to the city, there shall be a permanent transfer of a prorata portion of the county's 1990 allocation base referred to in Section 2.b. to the city. The amount transferred shall be determined: (1) Fifty percent based on the ratio that the number of overhead meters in the city bears to the total system overhead meters; and (2) Fifty percent based on the ratio that the total number of meters in the city bears to the total system meters. When territory is annexed to an existing city, it shall be the responsibility of the city and county affected, in consultation with the utility serving the territory, to agree upon an amount of the 1990 allocation base that will be transferred .from the county to the city; and thereafter to jointly notify the Utility in writing. ~r~n Icci sari by Advice Ltr. No. 1428-E Decision No. 01-12-009 Lee Schavrien Vice President Re~l(~at~yfpffairs L L L Date Filed Jul 25, 2002 Effective Jul 25, 2002 Resolution No. E-3767 ~~ San Diego Gas & Electric Company San Diego, California Revised Cal. P.U.C. Sheet No. 15506-E Canceling Revised Cal. P.U.C. Sheet No. 13661-E A. RULE 20 Sheet 3 REPLACEMENT OF OVERHEA{O~WITH ~1NDERGROUND ELECTRIC FACILITIES 2. (Continued) d. However, Section 2 a, b and c shall not apply to any Utility where the total amount available for allocation under Rule 20-A is equal to or greater than 1.5 times the previous year's statewide average on a per customer basis. In such cases, the Utility's total annual budgeted amount for undergrounding within any city or the unincorporated area of any county shalt be allocated in the same ratio that the number of overhead meters in the city or unincorporated area of any county bears to the total system overhead meters. e. Upon request by a city or county, the amounts allocated may be exceeded for each city or county by an amount up to a maximum of five years' allocation at then-current levels where (the Utility) establishes that participation on a project is warranted and resources are available. Such allocated amounts may be carried over for a reasonable period of time in communities with active undergrounding programs. In order to qualify as a community with an active undergrounding program the governing body must have adopted an ordinance or ordinances creating an underground district and/or districts as set forth in Section A.1.b. of this Rule. Where there is a carry-over or additional requested participation, as discussed above, the Utility has the right to set, as determined by its capability, reasonable limits on the rate of performance of the work to be financed by the funds carried over. When amounts are not expended or carried over for the community, to which they are. initially allocated, they shall be assigned when additional participation on a project is warranted or be reallocated to communities with active undergrounding programs. 3. The undergrounding extends for a minimum distance of one block or 600 feet, whichever is the lesser. Upon request of the governing body, the Utility will pay from the existing allocation of that entity for: - - a. The installation of no more than 100 feet of each customer's underground electric service lateral occasioned by the undergrounding; and/or b. The conversion of a customer's meter panel to accept underground service occasioned by the undergrounding, excluding permit fees. The Utility or the governing body may establish a lesser allowance, or may otherwise limit the amount of money to be expended on a single customer's electric service, or the total amount to be expended on all electric service installations in a particular project. 4. The Utility may, at its sole discretion, enter into agreements with a governing body of a city or county to reduce the amount of funding for undergrounding of overhead facilities (see Form 142-1659). The governing body will, at the time of entry into the agreement, be entitled to an agreement for a minimum of one (1) year or as long as five (5) years. Upon entry into the agreement, any specific projects that the governing body and the Utility have previously, agreed to-will not be subject to the agreement. Any expenses incurred by the Utility due to performance of agreements, as set forth in this sub-section, shall be booked as notmal Utility expenses. 3C13 Advice Ltr. No. Decision No. 1428-E 01-12-009 issued oy Lee Schavrien Vice President Rq~lat~ Affairs I L N N N T L T T vale coca JUI L~, cwc Effective Jul 25, 2002 Resolution No. E-3767 Revised Cal. P.U.C. Sheet No. 15507-E San Diego Gas & Electric Company San Diego, California Canceling Revised Cal. P.U.C. Sheet No. 15164-E RULE 20 Sheet 4 REPLACEMENT..OFOVERHEAQ..INITH UNDERGROUND ELECTRIC FACILITIES B. In circumstances other than those covered by A. above, the Utility will replace its existing overhead electric facilities with underground electric facilities along public streets and roads or other locations mutually agreed upon when requested by an applicant or applicants when all of the following conditions are met: 1. a. All property owners served from the overhead facilities to be removed, first agree in writing to have the wiring changes made on their premises so that service may be furnished from the underground distribution system in accordance with the Utility's rules, and that the Utility may discontinue its overhead service upon completion of the underground facilities, or b. Suitable legislation is in effect requiring such necessary wiring changes to be made and authorizing the Utility to discontinue its overhead service. 2. The applicant has: a. Furnished and instalEed the pads and vaults for transformers and associated equipment, conduits, ducts, boxes, pole bases, and performed other work related to structures and substructures including breaking of pavement, trenching, backfilling, and repaving required in connection with the installation of the underground system, all in accordance with the Utility's specifications, or, in lieu thereof, paid the Utility to do so; b. Transferred ownership of such facilities, in good condition, to the Utility; and c. Paid a nonrefundable sum equal to the excess, if any, of the estimated costs, including transformers, meters and services, of completing the underground system and building a new equivalent overhead system: 3. The area to be undergrounded includes both sides of a street for at least one block or 600 feet, whichever is the lesser, and all existing overhead communication and electric distribution facilities within the area will be removed. 4. The Utility may; when requested and authorized by the city or county and mutually agreed upon by such government entity and the Utility, initially fund any required engineering/design costs for conversion projects under this section. In the event such a project proceeds, the requesting city or county shall reimburse the Utility for such engineering/design costs before the Utility shall be required to commence further work on the project. In the event the project is not approved to proceed within two and one-half years of the Utility's delivery of such engineering/design study, the requesting city or county shall reimburse the Utility for its costs of such engineering/design study within 90 days of a demand by the Utility. In the event a city or county does not reimburse the Utility within 90 days of its demand for reimbursement, the Utility will be permitted to expense such costs as an operational cost and shall reduce the city or county's allocations provided under Section A of this Schedule by the like amount. 5. The removal of overhead facilities shall be completed by the Utility at their expense. ContinuE 4C18 Advice Ltr. No Decision No. 1428-E 01-12-009 issucu uy Lee Schavrien Vice President R~~l~tQr$ Affairs L T Date Filed Jul 25, 2002 Effective Jul 25, 2002 Resolution No. E-3767 60- ~~ Revised Cal. P.U.C. Sheet No. 15508-E San Diego Gas & Electric Company San Diego, California Canceling Revised Cal. P.U.C. Sheet No. 15164-E RULE 20 Sheet 5 REPLACEMENT OF OVERHEAD WITH UNDERGROUND ELECTRIC FACILITIES L C. In circumstances other than those covered by A. or B. above, when mutually agreed upon by the Utility and an applicant, overhead electric facilities may be replaced with underground electric facilities, provided the applicant requesting the change pays in advance, a nonrefundable sum equal to the estimated cost of the underground facilities less the estimated net salvage value and depreciation of the replaced overhead facilities. Underground services will be installed and maintained as provided in the Utility's rules applicable thereto. D. The term "underground electric system" means an electric system with all wires installed underground, except those wires in surface mounted equipment enclosures. n_._ ra_~ i.a ~c ~nn~ SC7 Advice Ltr. No. 1428-E Decision No. 01-12-009 issuCU uy Lee Schavrien Vice President Re~~ry ~ffairs Effective Jul 25, 2002 Resolution No. E-3767 ATTACHMENT 9 Utility Pales on Arterials or Collectors i S 69KV l ion Dist r sion ra T i UUD # ~ Street Name From To ADT FC ~, P o eS Lines -Length (Feet) Bay Boulevard D Street Main Street 3504 C ~ ~ 18600 C Street Fourth Avenue Second Avenue 5700 C ~ 2670 D Street Broadway Fifth Avenue 2936 C ~ ~ 1320 D Street Fifth Avenue Third Avenue 3235 C ~ 2640 138 East J Street' Hilltop Drive Lori Lane 8590 C ~ 7400 F Street 1-5 Fig Avenue 11286 C ~ 4130 F Street Second Avenue Hilltop Drive 3536 C ~ 2640 Fifth Avenue C Street D Street 2224 C ~ ~ 1320 Fifth Avenue D Street H Street 7225. C ~ 5280 Fifth Avenue I Street L Street 5821 C ~ 3960 First Avenue E Street L Street 4710 C ~ 9200 G Street Woodlawn Avenue Third Avenue 5440 C ~ 5340 .Hilltop Drive F Street Orange Avenue 10830 C ~ 17100 I Street I-5 Hilltop Drive 9478 C ~ 10100 .Industrial Boulevard L Street Main Street 15881 C ~ 7800 137 J Street' Broadway Hilltop Drive 13021 C ~ 7920 K Street I-5 First Avenue 15087 C ~ 8820 135 L Street' _ Broadway Third Avenue 24500 C ~ 3960 Melrose Avenue .East Rienstra Street Main Street 3190 C ~ 5000 Melrose Avenue L Street East Quintard Street 2252 C ~ 6340 Moss Street Industrial Boulevard First Avenue 7002 C ~ 8900 Nacion Avenue L Street East Naples Street 6392 C ~ 3140 Nacion Avenue .Quail Street Princess Manor Ct 1892 C ~ 1000 Naples Street Broadway Second Avenue 6873 C ~ ~ 5280 Naples Street & East Naples Street Second Avenue Melrose Avenue 10832 C ~ 5970 Oleander Avenue Jamul Court Oxford Street 5517 C ~ 2100 Oleander Avenue Palomar Street Tamarack Street, north. of 3679 C ~ 6080 Oxford Street Industrial Boulevard 'Broadway 5990 C ~ 2020 Oxford Street & East Oxford Street Fifth Avenue Nacion Avenue 4576 C ~ 11600 Palomar Street Broadway Fifth Avenue 24920 C ~ 1320 Palomar Street & East Palomar Street .Third Avenue Nolan Avenue 15269 C ~ 7950 Second Avenue Shirley Street, north of L Street 7474 C ~ 12200 .Third Avenue D Street E Street 8320 C ~ 1320 Woodlawn Avenue E Street F Street C ~ 1320 TOTAL 2o1,7ao Note: Does not include alleys or reside ntial streets "These districts have already been established FC=Functional Classification C=Collector UUD=Utility Undergrounding District 10-30 ATTACHMENT 10 2008 RECOMMENDED RATING SYSTEM FOR 20A PROJECTS RATING CATEGORY POINTS Average Daily Traffic (ADT) and Street Classification • 10,000 ADT or greater 20 • < 10,000 ADT and classified as Arterial or Class I Collector 15 • < 10,000 ADT and classified as Class II or III Collector 10 Location • Adjacent to Civic, Scenic, Recreational or Historic Area 10 OR • Entrance to City or within ~/4 mile of freeway interchange 10 Relationship to Approved Undergrounding Districts/ Previously Undergrounded Facilities • Project is closing link between approved underground districts 10 and/ or previously undergrounded areas • Project connects to an approved underground district or previously 5 undergrounded area Concentration of Overhead Lines • Light to moderate 5 • Heavy to full capacity 10 • Both distribution and transmission lines 15 Association with Public Construction: Road Widening, Reconstruction or Construction of Missinq Street Improvements (such as sidewalks) • Construction within two years 25 • Construction within two to five years 15 R/W and Road Improvement Status • Road has ultimate R/W and improvements 20 • Road has missing improvements but ultimate R/W 10 • Marginal R/VV and improvements for undergrounding 0 • Inadequate R/V11 for undergrounding -20 TOTAL POSSIBLE POINTS 100 J:\Engineer\ADVPLAN\UUDIST\UU Report\Recommended Rating Table.doc loft 10-31 ATTACHMENT 11 RECOMMENDED RATING SYSTEM FOR 20A PROJECTS RATING CATEGORY Average Daily Traffic (ADT) and Street Classification • > 20,000 ADT • Between 10,000 and 20,000 ADT • < 10,000 ADT and classified as Arterial or Class I Collector • < 10,000 ADT and classified as Class II or III Collector Location • Adjacent to Civic, Scenic, Recreational or Historic Area OR • Entrance to City or within'/a mile of freeway interchange POINTS 25 20 15 10 10 10 Relationship to Approved Undergrounding Districts/ Previously Undergrounded Facilities • Project closes a link between approved underground districts and/ or previously undergrounded areas • Project connects to an approved underground district or previously undergrounded area Concentration of Overhead Lines • Light to moderate • Heavy to full capacity • Includes transmission lines Association with Public Construction: Road Widening, Reconstruction or Construction of Missing Street Improvements (such as sidewalks) • Construction within two years; included in CIP • Construction within two to five years; included in CIP • Street has a Pavement Condition Index (PCI) between 25 and 50 and /or is recommended for overlay • Street has been reconstructed or received an overlay during the past five years R/W and Road Improvement Status • Road has ultimate R/W and improvements • Road has missing improvements but ultimate R/W • Marginal R/W and improvements for undergrounding • Inadequate R/W for undergrounding TOTAL POSSIBLE POINTS 10 5 5 10 15 20 15 10 -10 20 10 0 -20 100 10-32 RESOLUTION NO. 2011- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE REVISED UTILITY UNDERGROUNDING PRIORITIZATION PROCESS WHEREAS, on August 23, 1979 Council, by Resolution 9735, adopted the current ranking system for utility undergrounding projects and established the top 20 project priorities; and WHEREAS, on November 12, 1991 Council, by Resolution 16415, approved a revised list of utility undergrounding projects; and WHEREAS, only three districts established based on the June 1979 ranking have not yet been designed or constructed. These projects are: • East J Street from Hilltop Drive to Lori Lane • J Street from Broadway to Hilltop Drive • L Street from Broadway to Third Ave.; and WHEREAS, staff presented a revised utility undergrounding ranking system to Council as part of the Utility Undergrounding Update during the February 2008 Infrastructure Workshop. This system was based on consultation with an outside expert and review of the California Public Utility Commission's Rules; and, WHEREAS, as part of ongoing negotiations with San Diego Gas and Electric, staff recommends that a new expanded list of utility undergrounding projects be prepared; and WHEREAS, staff proposes that the 2008 utility undergrounding ranking system be adopted with minor revisions in order to rank the remaining arterial and collector streets with overhead utilities. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby approve the revised utility undergrounding prioritization process. Presented by Richard A. Hopkins Director of Public Works 10-33 Resolution No. Page 2 Third Avenue to Alpine Avenue (STL350)" Project to Portillo Concrete, Inc. in the amount of $502,690. BE IT FURTHER RESOLVED that the City Council of the City of Chula Vista does hereby waive Council Policy No. 574-01 and authorize the Director of Public Works to expend all available contingency funds in an amount not to exceed $60,000. Presented by Richard A. Hopkins Director of Public Works 10-34