HomeMy WebLinkAbout2018-05-09 e-packet@6:00Wednesday, May 9, 2018
6:00 PM
City of South San Francisco
P.O. Box 711 (City Hall, 400 Grand Avenue)
South San Francisco, CA
Municipal Services Building, Council Chambers
33 Arroyo Drive, South San Francisco, CA
Special City Council
Special Meeting Agenda
May 9, 2018Special City Council Special Meeting Agenda
NOTICE IS HEREBY GIVEN, pursuant to Section 54956 of the Government Code of the State of
California, the City Council of the City of South San Francisco will hold a Special Meeting on Wednesday,
May 9, 2018, at 6:00 p.m., in the City Council Chambers, Municipal Services Building, 33 Arroyo Drive,
South San Francisco, California.
Purpose of the meeting:
Call to Order.
Roll Call.
Agenda Review.
Public Comments - comments are limited to items on the Special Meeting Agenda.
CLOSED SESSION
Closed Session: Conference with Legal Counsel - Existing Litigation
(Paragraph (1) of subdivision (d) of Government Code Section 54956.9)
Name of Case: Kashiwa Fudosan America, Inc. v. City of South San Francisco,
San Mateo County Superior Court, Case No: 18CIV01728
1.
CONSENT CALENDAR
A report regarding a resolution directing noticing of a public hearing to receive
comment concerning establishment of the Mission Road underground utilities district.
(Sam Bautista, Principal Engineer)
2.
Resolution directing noticing of a public hearing to receive comment concerning
establishment of the mission road underground utilities district.
2a.
Adjournment.
Page 2 City of South San Francisco Printed on 8/31/2018
City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:18-376 Agenda Date:5/9/2018
Version:1 Item #:1.
Closed Session: Conference with Legal Counsel - Existing Litigation
(Paragraph (1) of subdivision (d) of Government Code Section 54956.9)
Name of Case: Kashiwa Fudosan America, Inc. v. City of South San Francisco,
San Mateo County Superior Court, Case No: 18CIV01728
City of South San Francisco Printed on 5/3/2018Page 1 of 1
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City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:18-71 Agenda Date:5/9/2018
Version:1 Item #:2.
A report regarding a resolution directing noticing of a public hearing to receive comment concerning
establishment of the Mission Road underground utilities district.(Sam Bautista, Principal Engineer)
RECOMMENDATION
It is recommended that the City Council consider establishing an underground utilities district on
Mission Road (CIP project no.st1904)and direct sending notice to affected property owners and utilities
of a Public Hearing on the proposed district.
BACKGROUND/DISCUSSION
Summary
The conceptual plan for the proposed Mission Road Underground Utilities District (UUD)will be presented for
discussion.If the City Council decides it is the best interests of the City to establish the district,it will,by
approving the attached resolution,direct staff to issue a 30-day advance notice to affected property owners and
utility companies of a public hearing to be held on this matter on June 13,2018.After closing the public
hearing, the City Council may then introduce an ordinance to establish the new district.
Background
California Public Utilities Commission (CPUC)Rule 20A allows local agencies to establish districts where
Pacific Gas and Electric (PG&E)and the telecommunications firms must move their existing overhead utilities
underground.Qualified Rule 20A districts must be found to be in the general public interest for at least one the
following reasons:
·Undergrounding utilities avoids or eliminates unusually heavy concentrations of overhead
electric facilities;
·District streets or rights-of-way are used extensively by the general public and carry a heavy
volume of pedestrian or vehicular traffic;
·District streets or rights-of-way adjoin or pass through a civic area,public recreation area,or an
area of unusual scenic interest to the general public; and/or
·District streets are classified as arterials or major collectors.
As required by Rule 20A,PG&E annually allocates to the City $202,656 (varies slightly by year)of work
credits to cover PG&E’s costs for undergrounding its overhead utilities.The City has accumulated a balance of
$6,780,977 and can borrow five years’worth of future allocations amounting to $1,013,280,giving the City
access to about $7,794,257 in PG&E credits.Under CPUC Rule 32,the telecommunications companies do not
issue credits, but must pay their share of costs for qualified Rule 20A projects.
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File #:18-71 Agenda Date:5/9/2018
Version:1 Item #:2.
In 2016,the City established the Spruce Avenue UUD,at an estimated commitment of $5,365,000 of Rule 20A
work credits.In 2017,the City established the Antoinette Lane UUD,at an estimated commitment of another
$2,325,000 of credits.The City directed PG&E to give the Antoinette UUD priority over the Spruce UUD to
keep its schedule coordinated with the Community Civic Campus project.The City led the year-long design
effort for the Antoinette UUD,now entering into the final design phase,and should be ready to offer the project
for construction bids this fall.The City’s construction work for the Antoinette UUD should be completed by
June 2019. Also this fall, the Spruce UUD should exit the queue and be ready to start design.
See “What Your Community Should Know…Rule 20A”(Attachment 1)for a comprehensive summary of the
purpose, criteria, City requirements, and milestone steps of PG&E’s Rule 20A program.
Discussion
The proposed Mission Road UUD is approximately 2,500 feet long (including partial side streets to allow
utility risings and avoid leaving very short aboveground runs,informally known as “pole islands”)and runs
along Mission Road from Grand Avenue to the southern Bay Area Rapid Transit (BART)Station entrance
where it will connect with existing underground utilities (please see Attachment 2 for a boundary map).Mission
Road qualifies for Rule 20A because is an arterial carrying a heavy volume of traffic to the BART station and is
adjacent to the Centennial Trail,a public recreation area.Forming this district will extend the previously
completed utility undergrounding around the BART station up to the San Francisco Public Utilities
Commission Site (“PUC Site”).
Staff does not recommend including the PUC Site frontage into this district.The California Public Utilities
Commission (CPUC)intends the Rule 20A program for local agency use only as it is wholly funded by utility
ratepayers.CPUC created the similar Rule 20B program for developer’s use as it is only partially funded by
ratepayers.Also,Rule 20A only allows placing utilities underground in the same alignment as the overhead
lines they replace which would encumber the PUC Site with several long underground service crossings.
Finally,completing the PUC Site frontage should wait until construction of the Oak Avenue extension to allow
the utilities to be carried on the bridge over Colma Creek to the Antoinette UUD.This would be preferable for
maintenance access and far less expensive than jacking utilities under Colma Creek.Completing all of this
undergrounding work will eliminate 1.3 miles of overhead utilities along this busy corridor from the BART
Station to the southern end of Antoinette Lane.
The estimated commitment of Rule 20A work credits for the proposed Mission Road UUD would be
$5,129,000.The City’s total commitment for Spruce,Antoinette,and Mission UUDs would be $12,819,000.
Because this exceeds the City’s available credits by a little more than five million dollars,the City would need
to postpone work on one or more of the districts until it acquires additional credits,either through annual
accrual or by purchasing from other local agencies.Postponing work on the Spruce UUD would allow work to
proceed on the Antoinette and Mission UUDs at an estimated credit cost of about $7.5 million,an amount
within the City’s currently available Rule 20A credits.It is important to stress that all estimated costs quoted in
this report are highly conceptual and subject to substantial change as no design work on the three districts has
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File #:18-71 Agenda Date:5/9/2018
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been completed.
The Rule 20A credit covers only PG&E’s expected costs.The total project costs for the Mission UUD for all
parties (PG&E,AT&T,Wave,Comcast,and the City)are conceptually estimated at $7,600,000,of which the
City’s share is $900,000.Total project costs are composed of project management (~$200,000),design
(~$200,000),and construction (~$7,200,000).The City’s share covers replacing streetlights currently mounted
on utility poles and sharing in the joint trench for streetlight power.As Lead Agent,the City will need to fund
these costs,but may invoice the Utilities for half of their shares upon the City’s construction contract award and
the remainder upon acceptance of the construction work.
Rule 20A projects typically take about five to seven years to complete from planning through construction.For
the Mission Road UUD,preliminary planning has taken about half a year and the actual district establishment
by City ordinance will take another quarter year (mid-summer 2018).Once the district is established,it will go
into PG&E’s queue for about a year to allow the utility companies arrange for funding and schedule their
designers.If the City directs PG&E to give the Mission UUD second priority after the Antoinette UUD,the
City’s designer will finish the design effort by incorporating the Utilities’work into the Joint Trench composite
plans such that the project would be ready to offer for bid in Spring 2021.Construction of underground
facilities and service connections will then take a final year and a half (Winter 2022).Note that even if the City
acquires sufficient work credits to complete all three districts,PG&E will likely only work on one district at a
time due to its resource constraints.Therefore,the City will need to clearly communicate its schedule priorities
to PG&E.
FUNDING
Funding for this project will be programmed into the Fiscal Year 2018-19 Capital Improvement Plan (CIP)
budget.The total project costs are conceptually estimated at $7,600,000.The City may request reimbursement
of an estimated $6,700,000 of this cost from the utilities.All quoted costs are highly conceptual and should be
expected to change as the project is designed.
CONCLUSION
Undergrounding the overhead utilities along Mission Road will improve the appearance and safety of this busy
thoroughfare adjoining the Centennial Trail,and will complete a portion of the gap between the BART station
and the south end of Antoinette Lane.
Attachments:
1.PGE Rule 20A What Your Community Should Know
2.Mission Road UDD Boundary Map
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What Your Community Should Know...
Donna Pontrello, Rule 20A - Program Liaison
210 Corona Road, Petaluma, CA 94954 / p. 707-775-7378 e. [email protected]
The Converting of Overhead Facilities to Underground Facilities
Revised: September 1, 2012
What Your Community Should Know About Rule 20A
The Conversion of Overhead Facilities to
Underground Facilities
What is Rule 20A – The Rule 20A Tariff Program was established by the CPUC in 1967 and
requires that PG&E allocates work credits to all cities and counties each year, to be used
exclusively for the conversion of overhead facilities to underground facilities.
Funding – Work credits, monetary based units, are used to distribute the Rule 20A Project
Funding. The amount of work credit a community accumulates is currently based on the
number of electric meters in the community. Each utility, PG&E, phone and cable, must
borrow money to build the project and the costs are reflected in the utilities’ rate base
when the project is completed. Since all ratepayers pay for the cost of these projects, the
project must benefit the general public.
Qualifications – Rule 20A projects may qualify for one or more of the following reasons:
1. Such undergrounding will avoid or eliminate an unusually heavy concentration of
overhead electric facilities;
2. 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;
3. The street or 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; and
4. 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.
Your Community Resolution/Ordinance – Every community must adopt a resolution or
ordinance that creates an underground district in the area in which both the existing and
new facilities are and will be located which must include the following;
1. That all existing communication and electric distribution facilities in such district shall
be removed,
2. That each property served from such electric overhead facilities shall have installed in
accordance with PG&E’s rules for underground service, all electrical facility changes on
the premises necessary to receive service from the underground facilities of PG&E as
soon as it is available, and
3. Authorizing PG&E to discontinue its overhead service. The resolution or ordinance
must include the boundary map and a list of affected property owners. The boundary
should include all parcels (regardless if they are already undergrounded) on both
sides of the street. The interpretation of the tariff states that if the property is currently
served from a pole located within the proposed district, then the entire parcel needs
to be included.
pg. 2
The Converting of Overhead Facilities to Underground Facilities
Revised: September 1, 2012
Boundary Instructions:
- Full parcels should be included in the drawing of the boundary.
- Parcels served from a pole out of the district may be excluded (including backyard
feeds).
- Parcels with more than one structure may be split ONLY if the structures to be excluded
on the parcel are not fed from the poles within the district.
- Structures with a service point that exceeds 100’ must still be included and
undergrounded.
- Any variance request from the above instructions may be submitted to PG&E for
consideration.
Acknowledge that wheelchair access is in the public interest and will be considered as a
basis for defining the boundaries of projects that otherwise qualify for Rule 20A under the
existing criteria set forth in Section A(1)a in the Electric Rule No. 20 Tariff.
Prior to the hearing to pass the resolution or ordinance, it is advisable to hold a public
informational meeting, especially if the property owner is required to bear any costs in
the project. All affected property owners must be notified of the hearing in order to pass
the resolution or ordinance.
Environmental Issues (cultural resources, endangered species, contamination, etc.) – The
community should send a boundary map of the proposed district to the governing
agent responsible for monitoring groundwater contamination and other environmental
issues in the area to determine if the district has any potential problem sites. This
contamination information and other environmental information should be discussed
prior to the boundary walk for consideration when establishing the district boundaries
and determining who will act as the lead agent on the project. It is the community’s
responsibility to mitigate any environmental issues that could impact the underground
conversion prior to trenching or to act as the lead agent and mitigate the issue during
trenching. If a utility is trenching and an environmental issue is encountered, the utility
will stop work and not proceed until the community has mitigated the problem to the
utilities’ satisfaction.
Project Initiation – When initiating a Rule 20A project, the community should provide,
to each utility’s designated contact, a one-sheet parcel map showing the proposed
boundaries of the project. If the utilities are familiar with the proposed area and believe
that it does qualify under the Rule 20A Tariff, then the process proceeds to a joint utility
and community boundary walk to accomplish the following:
1. Verify that the project qualifies under the Rule 20A Tariff;
2. Determine the potential operational and other impacts (possible riser pole location
sites) of the proposed boundary and suggest modifications if necessary;
pg. 3
The Converting of Overhead Facilities to Underground Facilities
Revised: September 1, 2012
3. PG&E determines whether the community allocation account has adequate credits to
move forward on the project.
4. After the boundary walk where specific boundaries have been mutually agreed upon,
the Community proceeds to pass a resolution or ordinance designating the project as
a Rule 20A. Passage of the resolution or ordinance can not occur prior to consultation
with the utilities.
Lead Agent – The lead agent coordinates project planning meetings, is responsible
for preparation of the joint trench composite and Form B and for constructing the
underground trench.
Joint Trench Composite: is a drawing that combines each utility’s substructure
requirements into one drawing to be used by the trench constructor.
Form B: is the document that details the cost sharing of the trench installation.
Typically, PG&E or the phone company will take the responsibility for leading the project.
However, occasionally, the community may choose to take the lead. If a community
takes the lead role and the administrative costs associated with leading the effort, the
community cannot be reimbursed these costs by the utilities. Examples of administrative
expenses which are not reimbursable are:
project management
billing preparation
contract administration (except as directly related to composite preparation)
Billing Administration: The lead agent is required to pay the contractor and then submit for
reimbursement to the other joint trench participants. The utilities will not reimburse the
community’s contractor directly.
Reimbursable Expenses – The community’s costs associated with preparing the Form B and
the joint trench composite are reimbursable to the community as equally shared costs by
all trench participants (including the community if they own the streetlights).
Trench Participation – Should the community decide to include their facilities in the joint
trench, either for private street lights, street light additions or to include conduit for fiber-
optics, etc. they can incur anywhere from 10% to 100% of related costs. Only certain
facilities can be placed in a joint utility trench, please check with the project manager for
detailed information.
Streetlights – If the community owns the streetlight system and wants to place their facilities
in the joint trench, they must contribute to the joint trench cost. If the streetlights are
owned by PG&E, conversion of the streetlight system is covered by the allocation on a one
for one basis. If the community adds streetlights or moves the light locations, they will
incur a cost. Options for street lighting include leaving the lights on existing poles, having
pg. 4
The Converting of Overhead Facilities to Underground Facilities
Revised: September 1, 2012
PG&E install standard steel poles or having the community pay for decorative poles. Each
option comes with different costs to the community and changes to the streetlight rate
should be discussed in detail with the project manager and service-planning representative
for the area. The community will be asked to complete an “option” form to communicate
their choice. See the attached Letter of Streetlight Agreement for more detail.
Community Owned Facilities and Drawings – It is the responsibility of the community to
provide the trench lead agent with acceptable drawings showing community owned
facilities such as sewer, water and storm drains if applicable. If these drawings are not
available, or are of inadequate detail, it will then be the community’s responsibility to
produce and provide the lead agent with this information so a composite drawing can be
completed.
Placement of Substructures – The community is required to provide suitable real estate for
underground and pad mounted equipment. If there is a potential for road improvements
or changes in the future, the utility design will be based on the future road improvements/
alignment or width. The community will be required to provide suitable real estate for
underground and pad mounted equipment based on the projected future improvements.
It is also the community’s responsibility to complete any necessary survey work necessary
to determine whether substructures can be located within the franchise area. It is also
the community’s responsibility to provide any survey work necessary to identify existing
and/or future road alignment, right of ways and/or property lines. If additional land
rights are required, the utilities will create the right of way document, but the community
is responsible for obtaining property owner signatures and providing compensation, if
required.
Provide any grading or engineered retaining walls required for substructures and the
trenching utility with adequate staking to set equipment when final grade elevations are
changing (typically on projects associated with road widening or road improvements).
The community will be required to sign off on each installation location to verify that the
equipment has been set to the proper elevation. If the elevation of this equipment needs
to be adjusted at a later date, the community will be financially responsible for the cost of
these elevation adjustments. The utilities will reimburse the community for their survey
costs only if they contract this work.
Pad Mounted Equipment – PG&E’s standard equipment installation is pad mounted
equipment (transformers, switches, etc). If a customer or the community wants subsurface
equipment, they must pay a “special facilities” fee which is equal to the cost difference
between the two installations and for the increased maintenance cost on subsurface
installations. Special facility fees can range from $3,500 to $25,000 per installation,
depending on the size and type of equipment installed. These special facilities costs
cannot funded by the Rule 20A allocation credits.
pg. 5
The Converting of Overhead Facilities to Underground Facilities
Revised: September 1, 2012
Inclusion of 100’ of Service Trench – Most communities establish what is commonly called
the “100’ Rule” in their resolution. This inclusion, see sample resolution, establishes that
the utilities will pay for the first 100’ of a customer’s service if included in the resolution.
If this is not included in the resolution, the costs associated with the trenching and service
installation for customer’s services must be paid for by customers or the community.
Electric Panel Conversion Reimbursement – Most communities establish what is commonly
called the “$1500 panel conversion option” in their resolution. This inclusion, see sample
resolution, establishes that the cost to adapt the electric panels to receive underground
service will be covered by the Rule 20A allocation and paid for by PG&E ratepayers. If this
option is included in the resolution, PG&E will reimburse the community for the cost of
electric panel conversions, not to exceed $1,500 per service drop. This requires that the
community procures and manages a contract for conversion of all electric panels and
PG&E will reimburse the community for the actual cost to convert each service drop, not
to exceed $1,500 per service drop, upon completion of the work and after being invoiced
by the community. If the cost exceeds $1,500 per service, the resolution must state how
the community will cover the additional cost to pay the contractor (customers will be
billed or community will pay the difference).
As an option, a community may choose that the cost to adapt the electric panels to
receive underground service will be covered by the Rule 20A allocation and paid for by
PG&E ratepayers. PG&E will then hire a contractor to make all necessary modifications
to property owner’s electric panels to enable them to receive underground service. The
community would be responsible for obtaining a signed right-of-entry for each property
to enable PG&E’s contractor to complete the panel modifications. The entire cost of this
work is charged against the community’s Rule 20A allocation but is paid for by PG&E.
If the $1500 panel conversion option is not included in the resolution, then these costs
must be born by the property owner or community.
Schedule – Rule 20A projects normally take 5-7 years from onset of planning to removal of
poles. Communities with large allocation balances should have a 5-year plan prioritizing
their Rule 20A projects.
pg. 6
Attachment 2
Conceptual Mission Road Underground Utility District Map
City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:18-72 Agenda Date:5/9/2018
Version:1 Item #:2a.
Resolution directing noticing of a public hearing to receive comment concerning establishment of the mission
road underground utilities district.
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,each year the City of South San Francisco is notified by Pacific Gas and Electricity (PG&E)of the
annual allocation and balance of work credits and the five year balance of future credits that may be borrowed
for conversion of overhead electric distribution lines and facilities to underground,known as Rule 20A
allocations; and
WHEREAS,PG&E has notified the City of South San Francisco that it has accumulated Rule 20A work credits
in the amount of $6,780,977,and may borrow five years of future work credits amounting to about $1,013,280
to yield $7,794,257 of work credits for qualified underground utility conversion projects pursuant to CPUC
Electric Rule 20A; and
WHEREAS,the City is required to establish an underground utility district and identify the parcels to be
included within the district on a district boundary map before it may use its Rule 20A work credits to fund the
PG&E’s conversion; and
WHEREAS,in 2016,the City established the Spruce Avenue Underground Utilities District and committed an
estimated $5,365,000 of Rule 20A work credits to complete the undergrounding conversion; and
WHEREAS,in 2017,the City established the Spruce Avenue Underground Utilities District and committed an
estimated $2,325,000 of Rule 20A work credits to complete the undergrounding conversion; and
WHEREAS,the City desires to consider establishing a Mission Road Underground Utility District (project no.
st1904)consisting of the parcels adjacent to Mission Road between Grand Avenue and previous
undergrounding completed at the Bay Area Rapid Transit (BART) Station; and
WHEREAS,PG&E’s cost in work credits for a Mission Road Underground Utilities District is estimated at
$5,129,000; and
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File #:18-72 Agenda Date:5/9/2018
Version:1 Item #:2a.
WHEREAS,because the cost in PG&E credits for the Spruce,Antoinette,and Mission Underground Utilities
District would exceed the City’s work credit balance,the City will give the Antoinette and Mission
Underground Utility Districts priority for design and construction while it acquires additional credits to
complete the Spruce Underground Utility District; and
WHEREAS,the total cost of the Mission Road Underground Utility District to be shared by PG&E,AT&T,
Wave Broadband,and the City is estimated at $7,600,000,of which an estimated $6,700,000 is reimbursable to
the City; and
WHEREAS,Section 13.16.020 of the City of South San Francisco Municipal Code allows the City Council of
the City of South San Francisco to call a public hearing to ascertain whether the public necessity,health,safety
or welfare requires converting to underground the overhead wires,poles,and associated structures from streets
within designated areas of the City; and
WHEREAS,Section 13.16.020 of the City of South San Francisco Municipal Code requires that the City Clerk
notify all affected property owners within the proposed district and utilities by mail of the time and place of
such hearing at least thirty days prior to the date thereof; and
NOW,THEREFORE,BE IT RESOLVED,by the City Council of the City of South San Francisco that on June
13,2018 it will hold a public hearing to ascertain whether the public necessity,health,safety or welfare
requires converting to underground the overhead wires,poles,and associated structures along Mission Road
between Grand Avenue and the BART Station.
BE IT FURTHER RESOLVED,by the City Council of the City of South San Francisco that the City Council
hereby directs the City Clerk to notify all affected property owners and utilities by mail of the time and place of
this hearing at least thirty days prior to the date of the public hearing.
BE IT FURTHER RESOLVED,by the City Council of the City of South San Francisco that the priority for
completing the Underground Utility District work within the available PG&E Rule 20A work credits shall be
firstly Antoinette Lane, followed by Mission Road, and then Spruce Avenue.
*****
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