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HomeMy WebLinkAboutAgenda Statement 1984/10/30 Item 8 COUNCIL AGENDA STATEMENT Item 8 Meeting Date 10/30/84 ITEM TITLE: Resolution //S7/ Establishing Underground Utility District No. 116 along Bonita Road from Flower Street to I-805 and authorizing the expenditure of allocation funds to subsidize five single-family residential service lateral conversions SUBMITTED BY: Director of Public Works/ City Engineer (4/5ths Vote: Yes No x ) REVIEWED BY: City Manager //(� On September 25, 1984, the City Council held a public hearing concerning the formation of an underground utility district on Bonita Road from Flower Street to I-805. Council at that meeting directed staff to come back with a resolution establishing a district and authorizing the use of up to $1 ,500 of allocation funds to cover the cost for the first 100 feet of trench for five single-family properties within the district. RECOMMENDATION: That Council adopt the resolution: 1 . Establishing the district and 2. Authorizing the use of $960 of allocation funds to subsidize five single-family residential service lateral conversions ($300 maximum per service) . BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: Section 15.32.130 of the Chula Vista Municipal Code requires that City Council hold a public hearing to determine whether the public health, safety, and general welfare require the undergrounding of existing overahead utilities prior to the establishment of a conversion district. The affected property owners and utility companies are thus given an opportunity to be heard concerning the merit of a conversion district. On September 25, 1984, the day the public hearing was held, no one spoke for or against the formation of the Bonita Road-Flower Street to I-805 conversion district. The Bonita Road conversion district will be the first of its kind in the San Diego area to utilize allocation funds to subsidize the underground conversion of five single-family residential services included within the proposed Bonita Road conversion district. This proposal is consistent with California Public Utilities Commission (CPUC) decision 82-01-18 (January 5, 1982) which gives Page 2, Item 8 Meeting Date 10/30/84 the local agency the option to utilize part of their allocations for converting customer services. This provision was created by the CPUC to encourage customer acceptance in the formation of conversion districts. The decision applies only to SDG&E and Pacific Bell . Cox Cable TV is not affected by this decision as they are not governed by the CPUC. During the past few weeks, Engineering staff has met with representatives from the three utility companies to formulate a procedure in which the proposed use of the allocations can be managed by all the parties concerned. It has been agreed that the property owner will still be responsible to provide and maintain the underground service supporting structure within their property. To help subsidize this cost to the property owner for providing the underground service, the SDG&E and Pacific Bell companies have agreed to share in the cost of providing up to 100 feet of the trenching for the lateral service conversion. SDG&E will pay 72% and Pacific Bell 28% of the trenching cost up to a total maximum of $300 per property. Engineering staff and SDG&E officials have visited the five properties and have determined the length of trench required for each of the five residences. We have determined that the property owners will be able to receive a refund as follows: Length Amount of Parcel No. Owner Address of Trench Subsidy 570-130-08 Joseph F. and Margaret Hutchinson 36 Bonita Road 75 LF $225 570-130-31 Ralph C. and Judy Rudy 42 Bonita Road 65 LF $195 570-130-32 Carl W. Bronsziet 50 Bonita Road 100 LF $300 570-130-49 Roland E. & Lucy Bergeron 58 Bonita Road 70 LF $210 570-130-26 Martha M. Zumstein 68 Bonita Road 10 LF $ 30 TOTAL $960 The reimbursable amounts to the property owners will be paid by the utility companies through the City of Chula Vista once the project is completed. The utility companies will not refund the property owners directly. The refunds will be made by the City of Chula Vista once the funds are received from SDG&E and Pacific Bell. Thus, there will be no direct use of City funds in the reimbursement procedure. It should be noted that Engineering staff and utility representatives are now engaged in formulating a policy for the use of allocation funds to subsidize the cost of service lateral conversions in future conversion districts. The utility companies representatives input has been solicited since the policy will probably be used in other cities in the County as a guide in the formation of their own conversion district. The utility companies are, therefore, interested in having a policy that is both workable and equitable. We shall return with a draft policy to the City Council in the near future. The City Engineer, subsequent to the formation of the Bonita Road conversion district by the City Council will submit to the Council a resolution setting the date for the property owners to be ready to receive underground facilities Page 3, Item 8 Meeting Date 10/30/84 and the date for the removal of the poles in accordance with the City of Chula Vista City Code. A submission of the resolution to the City Council will occur after the receipt of SDG&E"s scheduling of the project. A slide is available showing the proposed boundary of the district. FISCAL IMPACT: The cost of underground utilities along Bonita Road from Flower Street to I-805 will be funded from accumulated allocations from SDG&E. This cost is estimated to be about $320,000. There will be no direct use of City funds. A $960 subsidy to the five single-family property owners within this district will be made from allocated funds from SDG&E and Pacific Bell conversion budget ($300 maximum per property). This amount will be paid to the City of Chula Vista after the conclusion of the project at which time the City will make a reimbursement to the property owners. Adequate allocation funds are available for the implementation of this project. The undergrounding will require the installation of street lights with underground wiring to provide for traffic and pedestrian safety. This cost to be paid by the City is estimated to be approximately $15,000 and has been funded in conjunction with the FY 1984-85 budget. RS:fp WPC 1260E 3 12-K Pedro-& Alicia Viyao OCCUPANT 99 Bonita Road 95 Bonita Road Chula Vista CA 92010 Chula Vista CA 92010 • Joseph F. & Marg. Hutchins SAM 36 Bonita Road 438 Camino del Rio #B213 Chula Vista CA 92010 San Diego CA 92108 Roland E. & Lucy Bergeron Karl W. Bronsziet 58 E. Bonita Road 639 First Avenue Chula Vista CA 92010 Chula Vista CA 92010 I ' . 1 ATTN. DAN HANN 805 Properties i ; San Diego Gas & Electric Co. 160 Brightwood Avenue 11 436 "H" Street Chula Vista CA 92010 1 Chula Vista CA 92010 ; ATTN: MR. BILL LEVEAU Occupant Cox Cable of San Diego 89 Bonita Road 5159 Federal Blvd. Chula Vista CA 92010 SAN DIEGO CA 92105 ATTN: MS.MAY HOLLY Walter J. Zabel Mr. E.Paglos Jr. @ William Bruner i PACIFLC BELL P. 0. Box 80787 • � ' 5601 Grossmont Center Dr. San Diego CA 92138 Room 205 La Mesa CA. 920.41 Martha M. Zumstein 68 Bonita Road Chula Vista CA 92010 Calvary Baptist Church of Chula Vista 73 Bonita Road Chula Vista CA 92010 OCCUPANT 91 Bonita Road Chula Vista CA 92010 Ralph C. & Judy Rudy 42 Bonita Road Chula Vista CA 92010 /e—//15 /57 Occupant ' 720 50 Bonita Road -nom - ((6? -i�r�QZUav Chula Vista CA 92010 ` j_ -i - pQ