COUNCIL
DISTRICT: 7
SNI AREA: Washington/Guadalupe
Approval of agreement with Pacific Gas
& Electric Company (PG&E) for conversion of overhead facilities to
underground facilities within the In-Lieu Fee (Rule 20B) Underground Utility
District at Almaden Road/Alma Avenue for the amount of $516,868. CEQA: Exempt.
In June 1989, the City Council adopted an
ordinance establishing an In‑Lieu Utility Undergrounding Fee (Rule 20B)
Program. The fee is required of
developers in lieu of completing the aerial-to-underground conversion along
their development’s street frontage. The Department of Public Works then
coordinates the establishment and construction of utility conversion projects
in accordance with the current work plan.
Expenditures from the fund are used
solely for the conversion of overhead utility lines to underground facilities
on designated streets within the City and are used as follows:
· Payment to utility companies for the cost of replacement of their existing overhead facilities with underground facilities within the public right-of-way.
·
Payment
of City expenses for staff, equipment, supplies and overhead associated with
the establishment and administration of undergrounding projects eligible for
funding.
On August 10, 1999, the City Council held
a public hearing and approved Ordinance No. 25933 (effective September 24,
1999) establishing an In-Lieu Fee (Rule 20B) Underground Utility District at
Almaden Road from Alma Avenue to 1000 feet south of Alma Avenue.
This project
includes the conversion of approximately 1,000 linear feet of aerial facilities
to underground facilities along Almaden Road from Alma Avenue to 1000 feet
south of Alma Avenue. The PG&E
agreement is for $516,868. Approval of
this agreement will provide PG&E with funds
to complete installing trench, conduit, cable and electrical facilities and
removing existing overhead wires and poles.
The undergrounding is expected to be completed by January 2002.
There are no
private service conversions required on this project. However, two of the 31
properties adjacent to the underground district are currently provided overhead
service from the facilities to be placed underground. These properties will have their aerial services relocated at no
cost to the property owners. The
remaining 29 properties are currently being provided with utility service from
outside the proposed district boundaries and will not be affected by this
project.
On May 7, 2001, PG&E sent a letter to
the City stating that their bankruptcy filling will have little effect on its
Rule 20A program under which PG&E funds the undergrounding activity on
major corridors. PG&E had earlier
announced its suspension of the Rule 20A program as a cash conservation measure
during bankruptcy. Funding for the
subject project falls under Rule 20B (In-Lieu-Fee) and is provided by the City
to PG&E. Implementation of this
project should therefore not be affected by PG&E’s financial situation.
A
public hearing was held on August 10, 1999, to establish the Underground
Utility District. On August 17, 1999, a
notice of establishment was sent to all property owners and occupants notifying
them of the established district.
PG&E will be notifying all property owners and occupants adjacent to
established district of construction start date, project duration and pertinent
emergency contact information.
The
establishment of this District and the proposed project schedule have been
coordinated with PG&E, Pacific Bell and AT&T Cable Services.
1. COST OF RECOMMENDATION: $516,868
2.
COST OF
PROJECT:
PG&E Agreement $516,868
Project Development $10,000
Design & Construction
Management $20,000
TOTAL $546,868
3.
SOURCE OF
FUNDING: Fund 416, Underground Utility
Fund
4.
ESTIMATED
START DATE OF CONSTRUCTION: October
2001
5.
ESTIMATED
COMPLETION DATE OF CONSTRUCTION: January
2002
Fund: 416
- Underground Utility
Appn: 4654
RC: 103083
Amount: $1,967,000
Budget Document: Appropriation Ordinance 2001-02, as amended on 08-17-01,
Section
26.01, Page 1, Item 1d.
Exempt.
RAJEEV BATRA
Acting Director, Public Works Department