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HomeMy WebLinkAboutAgenda Statement 1985/04/02 Item 14 COUNCIL AGENDA STATEMENT Item 14 Meeting Date 4/Z/85 ITEM TITLE: Resolution //977 Approving Council Policy regulating the use of utility funds for underground conversions of private service laterals SUBMITTED BY: Director of Public Works/City Engineer '/ `l REVIEWED BY: City Manager IC Pia/ (4/5ths Vote: Yes No X ) In September 1984, Council directed staff to prepare a Council policy regulating the use of utility funds for underground conversion of private service laterals. Specifically, Council requested staff to address the issues in limiting the use of utility funds to only single-family dwellings when preparing the policy. Working closely with the utility company representatives, we are submitting the attached draft policy for your consideration. BOARDS/COMMISSIONS RECOMMENDATION: The City's Underground Utility Advisory Committee (UUAC) has reviewed the draft policy and recommends its approval by City Council . RECOMMENDATION: That Council adopt the resolution approving the policy regulating the use of utility funds for underground conversion of private service laterals. DISCUSSION: On January 5, 1982, the California Public Utilities Commission (CPUC) by decision 82-01-18 allowed local agencies the option to utilize part of their utility fund allocations for converting customers' services. This provision was created by the CPUC to encourage customer acceptance in the formation of conversion districts. The CPUC leaves it to the discretion of the local agency to decide which (if any) customer is to receive utility fund reimbursements. The reimbursement is limited by the CPUC to costs incurred to provide up to 100 feet of the property owner's service lateral (trenching and conduit) . It is important to note that the CPUC decision apply to SDG&E and Pacific Bell . Cox Cable TV is not affected by the decision as they are not governed by the CPUC. However, Cox Cable TV has agreed to participate by providing conduit and service wires (up to 100 feet in length) at no cost to the property owner. [.1 a/2,6_ Page 2, Item Meeting Date proposed policy limits the reimbursement (and Cox Cable TV participation) to only single family residential properties. The policy sets the maximum reimbursement to the cost for trenching and conduit installation for up to 100 feet of the private service lateral as specified by the CPUC decision. This cost will vary from district to district and the policy sets a procedure by which the "average" cost for the work in each district can be estimated. The utility company representatives and City staff would determine and recommend an amount to the City Council for approval at the time the resolution forming the district is adopted. The limits set by the proposed policy were the subject of considerable discussion between Engineering staff and the utility representatives to UUAC. The proposed policy implementation procedures were derived from experience gained in the formation of the Bonita Road conversion district (Flower Street to I-805) . No other local agency has chosen to use utility funds to reimburse owners as allowed by the CPUC decision. City of San Diego staff is preparing a policy for their agency modeled after the one we are proposing for Chula Vista. Engineering staff believes it appropriate to limit the reimbursements to only single family residential properties within a conversion district. A single family owner has no mechanism to pass through the cost incurred in converting the service lateral . Commercial or multi-family owners can (and do) recoup their expense by increasing prices/rents. Another consideration we addressed during policy preparation was the need to balance available funds with the intent of the CPUC. The CPUC intent is to convert utilities to underground while reducing the property owner's cost. An agency, therefore, needs to allocate its funds in a manner that would buy the most conversion length for the dollar and yet help diminish property owner cost in the formation of conversion districts. Our proposal is believed to be a good compromise and would allow us to continue the City's conversion goal without serious impacts, yet complying with the CPUC decision. All the utility representatives to the City UUAC support the proposed policy and recommend its approval by the City Council . FISCAL IMPACT: None. Reimbursements to single family property owners will be made from utility funds. RS:nr/ WPC 1461E \\: 1 COX CABLE SAN DIEGO ATTENTION: BILL T.F. VEAU 5159 FEDERAL BOULEVARD SAN DIEGO CA 92105 PATTENTIN: ED 5601 Grossrront Center Drive Room #205 La Mesa CA 92041 PACIFIC TELEPHONE ATTENTION: RUFINO GOMiEZ 5601 GrossmDnt Center Dr. Room #205 La .Mesa CA 92041 PACIFIC TELEPHONE ATTENTION: SANDY HILTON 5601 Grossmont Center Dr. Room #205 La Mesa CA 92041 San Diego Gas & Electric Co 436 "H" Street Chula Vista CA 92010 ATTENTION: DAN HANN SAN DIEGO GAS & ELECTRIC CO ATTN: DAN BARRIOS P. 0. BOX 1831 SAN DIEGO CA 92101 11 // 7 7