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Addendum1 wh � °s s •�pS COUNCIL AGENDA REPORT DATE: MARCH 16, 2015 TO: MAYOR AND TOWN COUNCIL FROM: LES WHITE, INTERIM TOWN MANAGE MEETING DATE: 03/17/15 ITEM NO: 4 ADDENDUM SUBJECT: CONSIDER APPROVING THE PROPOSED PROJECT BOUNDARIES FOR UTILITY UNDERGROUNDING ALONG LOS GATOS BOULEVARD FOR USE OF RULE 20A FUND CREDITS ALLOCATED TO THE TOWN AND POTENTIAL EXPANSION OF THE BOUNDARY UTILIZING ALTERNATIVE FUNDING REMARKS: After the staff report was prepared for distribution, the following questions from a Council Member were received: 1) What are the advantages of undergrounding? Why do it? There are varied reasons for undergrounding, with the two biggest being aesthetics and access. In the project put forward as an option, the utility poles restrict use of the sidewalks in several locations because the poles are set in the sidewalk. Typical minimum clearance on sidewalks is 36 inches to allow for strollers, wheelchairs, etc. and that does not exist in multiple areas along Los Gatos Boulevard. 2) Is it better to do a commercial boulevard like Los Gatos Boulevard versus residential areas? The Rule 20A funds require an area beneficial to the entire community. Residential streets do not meet this requirement. Town funds have no such restriction. 3) By using our own funds with this project, we get more leverage because it is a bigger project making cost economy of scale and we could get credits at a discount versus spending the full amount ourselves for a not qualified 20A area. Correct? You are correct. Because the Town has other options (like residential areas) for Town funds, staff wanted the Council to have that information. The need far outweighs the funds so ultimately deciding on which residential areas receive undergrounding is a question. Another option is to continue to reserve the funds for combination with other capital projects or development projects. As the staff report on this item details, the full cost for all utilities (not just PG &E) falls on the Town in these cases. PREPARED BY: Reviewed by: MATT MORLEY Director of Parks and Public Works Town Manager MTown Attorney