Underground UtilityPREPARED BY: MATT MORLEY
DIRECTOR OF PARKS AND PUBLIC WORKS
Reviewed by: Assistant Town Manager Town Attorney _____Finance
MEETING DATE: 03/01/16
ITEM NO: 11
COUNCIL AGENDA REPORT
DATE: FEBRUARY 18, 2016
TO: MAYOR AND TOWN COUNCIL
FROM: LAUREL PREVETTI, TOWN MANAGER
SUBJECT: ADOPT A RESOLUTION ESTABLISHING AN UNDERGROUND UTILITY
DISTRICT ALONG LOS GATOS BOULEVARD FROM SOUTH OF LARK AVENUE
TO CHIRCO DRIVE
RECOMMENDATION:
Staff recommends that the Town Council adopt a resolution establishing an underground utility district
along Los Gatos Boulevard from south of Lark Avenue to Chirco Drive.
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.
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, the Council approved the proposed project boundary
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: ADOPT A RESOLUTION ESTABLISHING AN UNDERGROUND UTILITY DISTRICT
ALONG LOS GATOS BOULEVARD FROM SOUTH OF LARK AVENUE TO CHIRCO
DRIVE
FEBRUARY 18, 2016
BACKGROUND (cont’d):
limits for the Town’s Rule 20A utility undergrounding on Los Gatos Boulevard from just south of Lark
Avenue to Frank Avenue and to further extend the limits from Frank Avenue to just south of Mitchell
Avenue by utilizing alternative funding.
At the January 19, 2016 Town Council meeting, the Town Council approved 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 in order to remove transmission lines from the district and
approved a resolution setting March 1, 2016 as the Public Hearing date for establishing an Underground
Utility District.
DISCUSSION:
To utilize the Town’s Rule 20A credits, the Town must hold a public hearing on the proposed
underground utility district and adopt a resolution establishing the district to place the project in PG&E’s
queue for project design. All affected property owners were notified of the public hearing and the
hearing was noticed as required by law, including posting on the affected utility poles. The proposed
district boundaries are those set at the January 19, 2016 Council meeting as identified above. If adopted,
the resolution allows for the conversion of overhead utility lines within the District to underground lines
including associated work. 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:
Approve a resolution establishing an underground utility district along Los Gatos Boulevard from south
of Lark Avenue to Chirco Drive.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
PAGE 3
MAYOR AND TOWN COUNCIL
SUBJECT: ADOPT A RESOLUTION ESTABLISHING AN UNDERGROUND UTILITY DISTRICT
ALONG LOS GATOS BOULEVARD FROM SOUTH OF LARK AVENUE TO CHIRCO
DRIVE
FEBRUARY 18, 2016
FISCAL IMPACT:
There is no fiscal impact as a result of this action.
Attachment:
1. Resolution
Attachment 1
RESOLUTION NO.___________
RESOLUTION OF THE TOWN OF LOS GATOS ESTABLISHING AN
UNDERGROUND UTILITY DISTRICT ALONG LOS GATOS BOULEVARD
FROM SOUTH OF LARK AVENUE TO CHIRCO DRIVE
RESOLVED, by the Town Council of the Town of Los Gatos California,
that:
WHEREAS, the California Public Utilities Commission (CPUC) has
authorized electric and telecommunication utilities to convert overhead utility lines
and facilities to underground pursuant to Electric Rule 20 and Telecommunication
Rule 32; and
WHEREAS, pursuant to certain criteria, CPUC rules allow participating
cities to establish legislation authorizing the creation of underground utility districts
within which existing overhead electric distribution and telecommunication
distribution and service facilities will be converted to underground; and
WHEREAS, the Town of Los Gatos, has adopted an ordinance, codified as
Article IV, UNDERGROUND UTILITY DISTICTS in the Town of Los Gatos
Municipal Code, authorizing the Town Council to designate areas within which all
existing overhead poles, overhead wires and overhead equipment associated with
the distribution of electric power, telecommunication services and cable television
should be removed and replaced with underground wires and facilities; and
WHEREAS, the Director of Public Works for the Town of Los Gatos has
consulted with the affected public utilities and such utilities have agreed that the
proposed underground conversion district, designated the Los Gatos Boulevard
(Lark to Chirco) Underground Utility District and more particularly described in
Exhibit 1 attached hereto and incorporated herein by reference, meets the criteria
established by the rules of the CPUC, to wit,
That the street or road or right-of-way is extensively used by the general
public and carries a heavy volume of pedestrian or vehicular traffic; and
That the street or road or right-of-way is considered an arterial street or major
collector as defined in the Governor’s Office of Planning and Research
General Plan Guidelines; and
WHEREAS, each year the Town of Los Gatos is notified by PG&E regarding
the allocation of work credits for conversion of overhead electric distribution lines
and facilities to underground, known as Rule 20A allocations; and
WHEREAS, the Director of Public Works for the Town of Los Gatos has
consulted with PG&E and determined that the Town has accumulated Rule 20A
work credits or PG&E has agreed that the Town may borrow against future credits
sufficient to complete the proposed overhead to underground conversion project;
and
WHEREAS, the Town of Los Gatos and the affected utilities have agreed
that each utility shall complete the engineering of their respective portion of the Los
Gatos Boulevard (Lark to Chirco) Overhead to Underground Utility Conversion
Project; and
WHEREAS, the Town of Los Gatos and the affected utilities have agreed
that PG&E shall be responsible for preparation of the trench profile and composite
drawings and that PG&E shall be designated as “trench lead” to manage trenching,
installation of substructures, and pavement restoration and such other work; and
WHEREAS, the Director of Public Works of the Town of Los Gatos and the
affected utilities have agreed on a work schedule which meets their respective
capabilities and further agreed to waive any administrative fees, costs or special
street restoration requirements for purposes of this project; and
WHEREAS, the Town Council of the Town of Los Gatos has now received
the report from the Director of Public Works recommending that the area identified
in Exhibit 1 should be designated as an underground utility district within which all
existing overhead poles, overhead wires and overhead equipment associated with
the distribution of electric power, telecommunication services and cable television
should be removed and replaced with underground wires and facilities; and
WHEREAS, upon the recommendation of the Director of Public Works, the
Town Council of the Town of Los Gatos has determined that the proposed Los Gatos
Boulevard (Lark to Chirco) Underground Utility District is categorically exempt
from environmental review pursuant to the California Environmental Quality Act;
and
WHEREAS, the Town of Los Gatos has notified all affected property owners
within the proposed Los Gatos Boulevard (Lark to Chirco) Underground Utility
District and inviting same to attend a public hearing to discuss formation of the
proposed district; and
WHEREAS, the Town Council of the Town of Los Gatos held public
hearings at which time the Council did receive and consider the recommendation of
the Director of Public Works and did hear any and all objections or protests that
were raised by the owners of property within the above described district pertaining
to designating this area an underground utility district;
NOW, THEREFORE, IT IS HEREBY ORDERED:
1. The public interest requires the removal of all existing utility poles, overhead
wires and associated overhead structures and installation of underground
wires and facilities for supplying electric power, communication, or similar
associated services within the areas as shown in Exhibit 1, attached hereto,
with such area being designated as the Los Gatos Boulevard (Lark to Chirco)
Underground Utility District.
2. That the utility companies, cable television services and other affected
services shall commence work on installation of underground facility
installation in Los Gatos Boulevard (Lark to Chirco) Underground Utility
District and that as each phase of the project is complete and ready for
conversion from overhead to underground utility facilities, all fronting
property owners shall be notified by first class letter, postage pre-paid, of the
schedule for conversion of all utility service lines.
3. The electric utility shall use the underground conversion allocation computed
pursuant to decisions of the California Public Utilities Commission for the
purpose of providing to each premises requiring it in the Los Gatos Boulevard
(Lark to Chirco) Underground Utility District a maximum of one hundred feet
of individual electric service trenching and conductor (as well as backfill,
paving and conduit, if required) and each other serving utility shall provide
service trenching and conductor in accordance with its rules and tariffs on file
with the California Public Utilities Commission or as required by its
Franchise Agreement with the Town of Los Gatos.
4. The electric utility shall use said underground conversion allowance
allocation, up to a maximum amount of $1500 per service entrance excluding
permit fees, for the conversion of electric service panels to accept
underground service in the Los Gatos Boulevard (Lark to Chirco)
Underground Utility District and each property owner shall be financially
responsible for any and all costs not covered by the electric utility for the
installation and maintenance of the conduit and termination box located on,
under or within any structure on the premises served and the Town of Los
Gatos intends to accept an option made available by PG&E as per form
79-1113 (Rev 1/10) Agreement to Perform Tariff Scheduled Related Work -
Rule 20A Electric Panel Service Conversions, which allows the Town to use
Rule 20A credits to perform the remaining of the conversion work, with the
exception of work related to violations.
5. The Town Clerk is hereby instructed to notify all affected utilities and all
persons owning real property within the Los Gatos Boulevard (Lark to
Chirco) Underground Utility District of adoption of this resolution within ten
(10) days after the date of such adoption. Said Town Clerk shall further
notify said property owners of the necessity that, if they or any person
occupying such property desires to continue to receive electric,
communication or other similar or associated service, they, or such occupant,
shall by the date fixed in this resolution provide all necessary facility changes
on their premises so as to receive such service from the lines on the supplying
utility or utilities at a new location, subject to applicable rules, regulations and
tariffs of the respective utility or utilities on file with the Public Utilities
Commission of the state of California. Such notification shall be made by
mailing a copy of this resolution together with a copy of the Town Code to the
affected property owners as such are shown on the last equalized assessment
roll and to the affected utilities.
6. That the Town Council does hereby establish that the date on which affected
property owners must be ready to receive underground service and the order
the removal of all poles, overhead wires and associated overhead structures
and the underground installation of wires and facilities for supplying electric
communication or similar or associated service within the Los Gatos
Boulevard (Lark to Chirco) Underground Utility District shall be established
by a schedule determined at the time a bid is awarded for the project, as
required by a phasing plan or dates as may be set by a subsequent schedule, or
before the date of February 15, 2018.
7. That once all services have been converted from overhead to underground, the
utility companies, cable television services and other affected services shall
remove all poles and associated overhead facilities in Los Gatos Boulevard
(Lark to Chirco) Underground Utility District.
PASSED AND ADOPTED at a regular meeting of the Town Council held on
the 1st day of March 2016, by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
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