Loading...
Staff Report�owx o MEETING DATE: 01/19/16 ITEM NO: g os c� COUNCIL AGENDA REPORT DATE: JANUARY 7, 2016 TO: MAYOR AND TOWN COUNCIL ���/� FROM: LAUREL PREVETTI, TOWN MANAGEFVla4 _ �£ SUBJECT: ESTABLISHING AN UNDERGROUND UTILITY DISTRICT (UUD) A. APPROVE A BOUNDARY MODIFICATION FOR THE LOS GATOS BOULEVARD RULE 20A DISTRICT ESTABLISHING AN UNDERGROUND UTILITY DISTRICT (UUD) ALONG LOS GATOS BOULEVARD FROM SOUTH OF LARK AVENUE TO CHIRCO DRIVE. B. APPROVE A RESOLUTION SETTING MARCH 1, 2016 AS THE PUBLIC HEARING DATE FOR ESTABLISHING AN UNDERGROUND UTILITY DISTRICT. RECOMMENDATION: 1. Approve a boundary modification for the Los Gatos Boulevard Rule 20A District establishing an Underground Utility District (UUD) from south of Lark Avenue to Chirco Drive (Attachment 1). 2. Approve a resolution setting March 1, 2016 as the Public Hearing date for establishing an Underground Utility District (Attachment 2). BACKGROUND: The California Public Utilities Commission (CPUC) requires Pacific Gas & Electric Company (PG&E) to collect funds from ratepayers for use in undergrounding existing overhead utilities, known as Electric Rule 20 (Rule 20A). These funds are held by PG&E and set aside as credits for the individual city, town, county, or other municipal organization (local agency). The Town has received credits through 2015 totaling $3.9 million. PREPARED BY: MATT MORLEY DIRECTOR OF PARKS AND PUBLIC WORKS Reviewed by: Town Manager Town Attorney PAGE MAYOR AND TOWN COUNCIL SUBJECT: APPROVE A BOUNDARY MODIFICATION FOR THE LOS GATOS BOULEVARD RULE 20A DISTRICT ESTABLISHING AN UNDERGROUND UTILITY DISTRICT (UUD) ALONG LOS GATOS BOULEVARD FROM SOUTH OF LARK AVENUE TO CHIRCO DRIVE JANUARY 7, 2016 BACKGROUND (cont'd): Projects which qualify for use of Rule 20A funds must be in the general public interest and meet one or more of the following requirements: Undergrounding will avoid or eliminate an unusually heavy concentration of overhead electric facilities. The street, road or right of way is extensively used by the general public and carries a heavy volume of pedestrian or vehicular traffic, such as major arterial or collector streets. The street, 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. At the March 17, 2015 Town Council meeting, Town staff recommended that Council consider approval of proposed project boundary limits for the Town's Rule 20A utility undergrounding on Los Gatos Boulevard from just south of Lark Avenue to Frank Avenue and also consider a potential expansion of the limits from Frank Avenue to just south of Mitchell Avenue by utilizing alternative funding. Council approved the boundary limits from south of Lark Avenue to Frank Avenue at the March 17'b meeting. DISCUSSION: Following the March 17, 2015 Town Council meeting, staff met with PG&E on site and walked the approved Rule 20A boundary limits with PG&E staff. PG&E noted that along Los Gatos Boulevard from Chirco to the southern end of the approved boundary limits, there are high voltage transmission lines as well as distribution lines. Distribution lines are under the jurisdiction of the California Public Utility Commission (CPUC) as is the Rule 20A program. Transmission lines are under the jurisdiction of the Federal Energy Regulatory Commission (FERC) and not eligible for Rule 20A credits. Transmission lines could be eligible for undergrounding with local funding, however, the approval from the FERC for undergrounding of transmission lines is difficult to obtain and the cost is anywhere for three to ten times the cost of undergrounding distribution lines. For these reasons, staff is recommending modifying the boundary of the Rule 20A district to end the district at Chirco Drive and not include these FERC transmission lines within the district (Attachment 1). The modified district will be approximately 3,000 linear feet (LF). The current cost for undergrounding the distribution lines in the district range from $700/LF to $1000/LF. This would put the cost of undergrounding along Los Gatos Boulevard from south of Lark to Chirco Drive between $2.1M and $3M. The Town has approximately $3.9M in PG&E undergrounding credits available for a project within the Town's right of way, as noted above. These Town credits will cover the cost of the proposed undergrounding district. Staff will return to Council at the March 1, 2016 Town Council meeting for a public hearing on the proposed UUD and to provide a recommendation that Council adopt a resolution establishing the Los Gatos Boulevard (Lark to Chirco) Underground Utility District. PG&E requires the public hearing and approval of the UUD resolution in order to place the project in PG&E's queue for project design. The PAGE MAYOR AND TOWN COUNCIL SUBJECT: APPROVE A BOUNDARY MODIFICATION FOR THE LOS GATOS BOULEVARD RULE 20A DISTRICT ESTABLISHING AN UNDERGROUND UTILITY DISTRICT (UUD) ALONG LOS GATOS BOULEVARD FROM SOUTH OF LARK AVENUE TO CHIRCO DRIVE JANUARY 7, 2016 DISCUSSION (cont'd): resolution will allow for the conversion of overhead utility lines in the district to underground and associated work, as well as the notification of affected property owners. PG&E will pay for the work required to replace the existing overhead electric feed with a new underground feed using the Town's Rule 20A credit allocation for all affected property owners. PG&E estimates the following times for the beginning of design, completion of design, and construction from the date the resolution is passed: Begin Design: 1.5 years Design Complete: 2 years Construction Complete: 3 years Total 6.5 years CONCLUSION: 1. Approve a boundary modification for the Los Gatos Boulevard Rule 20A District establishing an Underground Utility District (UUD) from south of Lark Avenue to Chirco Drive (Attachment 1). 2. Approve a resolution setting March 1, 2016 as the Public Hearing date for establishing an Underground Utility District (Attachment 2). ENVIRONMENTAL ASSESSMENT: This is not a project defined under CEQA, and no further action is required. FISCAL IMPACT: There is no fiscal impact as a result of this action. Attachment: 1. Revised Rule 20A Boundary Map 2. Resolution ATTACHMENT I i � �NHEii yy GP? !eS E?ey LARK A, fy Pa�lCi G d a LARK A, a �9�Of HILL OB 9sr,S 4t '_H'DOAKSNRane Oq 2 -OAK.—_ a Q 3 PG 2 04 LPA Z E C9✓ U D P��S DA' IVY MIIL WY p0 O 4'r DARN j ATEWAT DR 9f C (_Ij m O` WNDRW ¢ Mx Npy a LWGRIDGE RD e iL $ er r o $ o dee !y W -AA oA N �O LU /uj ger �9 LLL o� O g Qp Npo r > ' pyPDE N W- 0: OS' QP Q N s N mLULu vR� PpS� J Lu t Pay J $f C F 4 W P LL c eo Q? OH�RCD P W G t O p CL g 4 N $ a m N 0 Q i'ARLEr RD � m (ARIEY RO S Df OJ Jm N V 2 D` ANOER O DAN, W L RD, OUNC LU 2 Yr a a RACER V ANS R CHE0.0.VBtOME D0. V'SJ 0�p5 f � a 04K R/y T L Z 1 R 0 8105500 gryL RO RESOLUTION 2016 - RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS OF PRELIMINARY DETERMINATION AND INTENTION TO ESTABLISH THE UNDERGROUND UTILITY DISTRICT AND TO PROVIDE FOR A PUBLIC HEARING WHEREAS, the Town Council of the Town of Los Gatos hereby preliminarily determines that the public necessity, convenience, health, safety and welfare require, and it is the intention of the Council pursuant to Chapter 15.04 of Title 15 of the Los Gatos Municipal Code to order the establishment of an underground utility district; and WHEREAS, the name of the proposed district is "The Los Gatos Boulevard Undergrounding District from South of Lark Avenue to Chirco Drive" of the Town of Los Gatos; and WHEREAS, the district includes all overhead utilities located in the area comprising the proposed district located on Los Gatos Boulevard between Lark Avenue and Chirco Drive, as more particularly described in Exhibit "A" attached hereto and incorporated herein by reference; NOW, THEREFORE, BE IT RESOLVED, by the Town Council of the Town of Los Gatos, County of Santa Clara, State of California, that: 1. NOTICE IS HEREBY GIVEN that on March 1; 2016, hour of 7:00 P.M., in the regular meeting place of Town Council, Council Chambers, Town Hall, 110 E. Main Street, Los Gatos, California, is hereby fixed as the time and place when and where the Council shall hear all protests and receive evidence for and against the action herein proposed, and when and where the Council shall consider finally determining whether the public necessity, convenience, health, safety and welfare require the establishment of the district, and the underground installation of electric and communication facilities. 2. At the hearing, all persons interested shall be given an opportunity to be heard. The hearing may be continued from time to time as may be determined by the Council. 3. At the hearing, the Council will take evidence and consider the question of whether such undergrounding is in the general public interest for one or more of the following reasons: a) Such undergrounding will avoid or eliminate an unusually heavy concentration of overhead distribution facilities; and b) The streets or roads or rights-of-way are extensively used by the general public and carry a heavy volume of pedestrian and vehicular traffic. c) The streets or roads or rights-of-way adjoin or pass through a civic area. ATTACHMENT BE IT FURTHER RESOLVED THAT: 1. The Clerk Administrator shall cause a copy of this Resolution to be published twice in the official newspaper for publication of legal notices of the Town of Los Gatos and shall cause copies of this Resolution to be posted on each side of the street in each block or portion of block within the area affected; the posting and first publication to be had and completed at least ten (10) days before the date of hearing. 2. The Clerk Administrator shall also cause copies of this Resolution to be mailed to the owners of the property affected at their addresses as it appears on the last equalized County tax roll, or, in the case of transfers, as appears from the records of the County Assessor, or as known to the Clerk Administrator, and deposited in the United States mail, postage prepaid; and shall also cause copies of this Resolution to be mailed to each public utility affected at its office in the Town and deposited in the United States mail, postage prepaid, at least ten (10) days before the date of hearing. 3. The Clerk Administrator shall also cause copies of this Resolution to be served on the occupants of the property affected by leaving a copy thereof with the occupant, if there is one, and if not, by leaving a copy of this Resolution at the premises or mailing a copy to the owner at the address of record, at least ten (10) days before the date of hearing. PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos held on the 19'b day of January, 2016 by the following vote: COUNCIL MEMBERS: AYES: NAYS: ABSENT: ABSTAIN: SIGNED: MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA ATTEST: CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA APPROVED AS TO FORM AND LEGALITY: Robert Schultz, Town Attorney