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