SR-512-003
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We 11 1986
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5/2-0'03
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CouncIl Meeting:
February 11 ~ 1986
Santa Monica, Ca11fornia
TO:
Mayor and C1ty Council
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FROM:
City Staff
SUBJECT:
Recommendation that the CIty Council Adopt a
Resolution Supporting Southern Californ1a Edison~s
Proposed Changes 1n the Rule 20A Allocat1on
Formula For Utility Underground1ng.
Introduction
ThIS report recommends that the City CounC1l adopt a Resolut1on
supportIng Southern Cal1forn1a EdIson's proposed changes in the
Rule 20A allocatIon formula for utilIty underground1ng.
Background
On September 19, 1967 the Callforn1a Public UtilIties Commiss1on
(CPUC) ruled that beginnIng with calendar year 1968, the electric
uti11t1es must submit separate annual budgets to the PUC designed
to ach1eve, at uti11ty expense, a significant conversion of
existing overhead faCIlities to underground faci11ties 1n all of
the cit1es and countIes with1n theIr respectIve serVIce areas.
These amounts set aside annually are referred to as Rule 20A
funds.
A survey of the varIOUS cities w1th ut11lty undergroundlng
programs revealed the need for more revenue than the present
formula will yield.
Several years ago~ the Public Ut1lltles Comm1ss1on changed the
Rule 20A dlstr1but1on formula from one based upon the total
number of
electrical meters serving IndIVIdual customers to
one
IA-e
ffl1 1 1986
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based upon the total number of overhead meters used to distribute
power throughout the serv~ce area.
For most cit~est this formula
change had the effect of either drast~cally increasing or
decreasing Rule 20A allocations. In an effort to equalize Rule
20A dlstr~butlon throughout the EdIson territorYt the tentative
Ed~son-League of Cal~fornia Clt1es Task Force Agreement calls for
a distribut10n based 45% upon total meterst 45% upon overhead
meterst and 10% to a Special Projects Fund. Th~s new
d1stributlon formula would go ~nto effect immed~ately, and given
Edision's 1985 allocation proposal (revised) of $25.5 mill~on, no
c~ty would lose money due to the formula change.
The Special Projects Fund would augment Rule 20A allocat1ons in
cit1es with specific undergrounding proJects which cannot be met
through current allocat~on amounts.
The agreed-upon allocatIon proposal represents a maJor increase
in financing Rule 20A programs by Southern California EdIson over
the next f1ve years.
Initially, Edison proposed a $19.5 mil110n
allocat~on for 1985. The Edison-Task Force agreement calls for a
revised 1985 allocation of $25.5 mill~ont an allocat~on of $28
m~llion in 1986, $32 millIon in 1987t $36 m1llion in 1988, and
$40 million in 1989.
Impl1cat1ons for the CIty of Santa Monica
Based upon the proposed fIve (5) year allocat1on plant the City
of Santa Monica would receive an increase from its current
$300,000 annual allocat1on to $387t671 in the first year,
$425t678 10 the second, $486t489 in the third yeart $547t300 in
.
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the fourth and $608,111 in the fIfth year.
In addItion, the Clty
would appear to be eligible for allocations from the
Special
Projects Fund due to the volume of undergrounding actlVlties
taking place WIthIn the City.
Budget and FIscal Impact
AdoptIon of the recommendations contained herein wll1 have no
budgetary or flscal lmpact on the CIty.
Recommendation
Staff recommends that Council adopt the attached Resolution
supporting the proposed Edlson-League of California Citles
Allocatlon Plan.
Submltted by:
Stanley E. Scholl, DIrector of General Services
Neil C. Mlller, Asslstant Director
MIchael S. Mllllner, Administrative Analyst
Attachments:
Memorandum from League of California Cltles
ResolutIon
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Work Together
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1<<OKSTREET. SACRAMENTO.CA95814. (916)~-!'!-5790 \~._~ - _........{
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To:
Cities 1n Southern California Edison Service Territory
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Date: June 5, 1985
From: Carl Classen, Southern California Manager
Topic: Tentative ^9re~~nt Reached with Southern California Edison
Regarding Rule 20A Allocations
In the Fall of 1984, Edison conducted a survey of the cities to detenmine Rule 20A
undergrounding needs~ That survey showed an immediate need of $63 million for
1985. On October 30, 1984, city representatives met with Edison representatives
to discuss the 1984 survey and 1985 Rule 20A budget. This meeting, although
positive in tone, did not initially yield a significant increase in the 1985
Rule 20A allocat1on~ On Janua~ 11, 1985, Edison proposed to the Public Utilities
Commission a 1985 Rule 20A allocation of $19.5 million, an increase of only
$400,000 over 1984. Edison sent a notice of that proposal to each city indicating
the city's individual al1ocations~
Early in 1985~ the Southern California Edison Undergrounding Task Force of the
League Utilities Undergrounding Subcommittee met to discuss Edison's 1985 Rule 20A
allocation. Out of this meeting came a proposed distribution fonmula for Rule 20A
funds, a proposed long-term agreement, and a proposed 1985 al10cation~ On April 15.
Task Force representatives met with Edison officials to present the proposal, but
no final agreement was settled upon by either the Task Force or Edison representa-
tives. But in late May, Edison officials submitted a counter-offer, and on May 29.
the TaSK Force met with Edison officials and developed the following tentative
1985-1989 Rule 20A program~
1.
Rule 20A Distribution Formula
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Several years ago, the Public Utilities Commission changed the Rule 20A
distribution formula from one based upon total meters to one based upon
total overhead meters. For most cities, this had the effect of either
drastically increasing or decreasing Rule 20A allocations. In an effort
to equalize Rule 20A distribution throughout the Edison territory, the
tentative Edison-Task Force agreement calls for a distribution based 45%
upon total meters, 45% upon overhead meters. and 10% to a Special Projects
Fund~ This new distribution fornlula would go into effect immediately, and
given Edison's 1985 allocation proposal (revised) of $25.5 million, no
city would lose money due to the f~~L!la change~ ., ~\~E.i 'j: {~:!; ~;t,;!:
The Special Projects Fund would augment Rule 20A allocations 1n cities with _ .J<'.. - J ~:t;,~
specific undergrounding projects which cannot be met through curre.n~;e.t~it~ .. '"~,t ,_ .~ '.:.~: _
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allocation amounts. Criteria for distribution of this Special ProJects Fund
is being developed by a joint Edison-Task Force Subcommittee. and will be
finalized before the end of 1985.
2. long-Term_~ul~ 20A Agreement
The tentative agreement calls for a five-year program to be developed
annually (analogous to the State Transportation Improvement Program)
specifying the total amount to be allocated each year. Such an agreement
allows the cities and Edison to plan. budget and prepare for undergrounding
projects.
J. 1985-1989 Rule 20A Allocatlon
The agreed-upon allocation proposal represents a major increase in financ1ng
Rule 20A progr~ by Southern California Edison over the next five years.
Initially. Edison proposed a $19.5 million allocation for 1985. The Edison-
'Task Force agreement calls for a revlsed 1985 allocation of $25.5 million.
an allocation of $28 m1l1ion in 1986, $32 million in 1987. $36 million in
1988. and $40 mi1l10n in 1989. Furthermore. Edison officials have agreed to
work with cities in attempting to develop a formula which would determine the
annual allocatlon amounts beyond 1989. Work on this possible formula will be
completed before July I, 1986. Edison has not agreed to implement such a
formula at this time, but the Task Force w,rr-be working with Edison on thlS
subject.
This tentative agreement represents several years worth of work by both the
citles and Edison. Ed1son offlcials, under the guidance of Customer Serv1ces
Manager Tom Bryson. have worked hard in putting this package together. and
they should be commended for that effort. However. as stated above
regarding the Special Projects Fund and the post 1989 allocatlons.
negotiations remain open.
This agreement will be reviewed by the Utilities Undergrounding Subcommittee
and its parent committee. the League Housing, Community, and Economic
Development POllCY Commlttee. on June 28. Prlor to that. however. on June 19,
the Public Utllities Comm1ss1on lS expected to initlally consider this matter~
Therefore, Qlease contact one of the Task Force members or me with anY
fOrrments you- mYght have rega,rdl'ng t'he tentatl ve agreement. The 11 Stl og
of the 1985-1989 allocat1ons 15 attaChed for your convenlence.
Jdsk Force ~embers
Hugh 8erry~ Eng1neerlng 01rector, FUllerton
Grant 8rlmball. Clty Manager. Thousand Oaks
Chrls Chrlstensen. City Admlnistrator. Westm1nster
John Dever, Clty Manager, Long Beach
Ken Frank, City Manager, Laguna Beach
Don Helnbuck. Asst. PubllC Works Olrector, Fountaln Valley
Larry St1ckney. Asst. Public ~orks Director, Chino
Bob Storchhe1m, Inspection Servlces Manager, Irv1ne
Harry Thomas, Publ1C Works Dlrector. West Covina
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. < ~,--SOUTKERN'CALIFQRNtA-EOIsaN CQ~PAHY'~
,~-~'19B5-1989 PROPOSED ALLOCATIONS FOR R€PLACEHENT" ~
DF ELECTRIC OVERHEAD WITH'UNDERGROUND FACILITIESr~~,
(BASED ON 4St TOTAL, 4~4 O.H:. l 10I SPECIAL PROJECTS)
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COUNTY
tiles
ALLOCATION
19864
ALLOCATION
'98'H .' 1qBal
ALLOCATION ALLOCATION
19Bqil
ALLOCA TI 0 N
OS ANGELES COl.lnty (continued) .
LynNood 125,773 138,104 157,833- 177,562 197,2q~
t1lnhlthnBuch 119,~e~ nl,OB7 149,814 169,541 187,267
tfaYNood 56,469 62,005 70,863 79,721 88,579
Honrovi. 108,643 119,294 136,33.6 153,::nS 170,420
Hontebello 151,841 Ib6,727 190,546 214,364 238,182
Monterey Park 160,634 176,382 201,580 226,777 251,975
NorNalk 207,54b 227,894 260,450 2n ,006 ~2S,S62
plohdal e 44,256 48,595 55,537 62,479 69,421
Pal DsVerdesEst 30,713 33,724 3B,542 43,360 48,177
PlrilCount 95,298 104,641 119,590 134,538 149,487
PiCD R1veril 128,151 14{),71S 160.817 180,919 201,021
POllan. 2b6,547 292,679 ~34,490 37b,302 418,113
R.PIles Verdes- .81,295 89,265 102,017 114,769 127,522
Redondo Buch 222,287 244,080 278,948 313:,817 348.685
Rolhng Hllls 5,736 6,298 7.198 8,098 8,998
RolhngHl115Est 17,598 19.323 22,084 24,844 27,605
Roselleild 109.170 119,813 1~b,99B 154,122 171,247
Sin D1 us 51,934 57,026 65,172 73,319 81,465
S.fn Fernando 53,403 58,639 67,016 75,392 S:S,769
Su Gilbr al 104,634 11:5.112 1 :s 1 , S 56 14B,001 164,445
San HaflnD 36,903 40,521 46.310 52,098 57,887
Santa Fe Springs 56,520 62,061 70,927 79,793 SB,6SQ
Sinh l1on1 CI ~~8 486,4B'i ~47,300 60e. 111
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;iu:rr. niQre - - ~l,jlL ~~,~lQ :'~.794 bt,994
S.qnill H1l1 35,3-74 3B,842 44,391 49,940 55,489
So. El Monte 53,930 59,217 67,677 76, no 84,::;96-
South Gate 202,501 222.354 254.119 285,884 317,641"
So. PiSidena 85,919 94.342 107,820 121.297 1 ~4, 775
h.pl~ City 97,326 10b,B68 122, 135 137,401 - -'lS2,b6B
Torr.nce 411,511 451,855 516,406 580,957 - 645,507
lIl1 nut 25,126 27,589 31.531 ~5, 472 39,413-
West Cov1nl 203,893 223,SS3 255,866 287,849 " -319,832
West Hollywood 191.922 210,738 240,843 270,949 301,054
West! a\{e V41l. Q,700 10,651 12,17'5 13,694 15,216
Whlttar 227,902 250,245 285.995 321,744 357,493
Un1n Los AnQeles County 2,313,187 2,539,970 2,902,823 3,265,67b 3,628.529
OTAL Los Anqeles County 112,001,468 $13,178,083 $15,060,066 116,943,249 S18,B2S,B!2
.ADERA County
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Un1n Madera County 129 142
OTAL Madera County 't2~ $142
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AllocatIons for~el~h:CltvICounty~for yelrs 19B6'through )989 are estImates
only based on current .et.r CDunt~~ Actual allocatsons for.~aeh City/County
.i~.l be "aiii.~ter <ouiii th.t ,i:: j~ ,~"
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VOTE~ Affirmative;
~ Negative:
v Abstain:
~ Absent;
~ ~ PROOF' vrrTE~ WITH ANOTHER PERSOl'-T BEFORE ANYTHING
~ DiSTKiouTiuN; vKiGiNAL ~o De signed, sealed and filed in Vault.
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]~FORE DISTRIBUTION CHECK CONTENT OF
DISTRIBUTION OF RESOLUTION # 21 S-7
P//t/)' ,
(->-c
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7-0
ALL FOR CITY_C~ERK'S ACTION
ORDINANCE tf
Introduced~
Council MeetIng Date
Was It amended?
Adopted:
ALt"lAYS PUBLISH AOOPTED ORDINANCES *
*Cross out Attorney's approval
Agenda Item #
NEWSPAPER PUBLICATION (Date:
)
)
Department originating staff report (
Management Serv.i~e~ Lynne Barrette -urdinances only
~-
Agency mentioned in document or staff report
(certifled?l
SubJect fIle (agenda packet) I
Counter file 1
Others:
AIrport
Parking Auth.
Personnel
Plannlng
Police (en-
forcement?)
Purchasing
Recr/Parks
.
Transportation
LIbrary
Treasurer
Manager
SEND FOU~ COPIES OF ALL ORDINANCES- TO:
CODED SYSTEMS, Attn Peter Macfearie
, .
I~O ~aln rtr~et ~
Avn~l ~~w Jersey_077l7
SEND FOUR COPIES OF A T.T. ORDTNA Nr.F..~ to:
De.b.ra ~yr~ck
SANTA MONICA MUNICIPAL COURT
,'_725 MAIN STREET, Room lIB
SANTA MONICA, CA 90401
*Check Code SectIOns before sending.
TOTAL COPIES
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RESOLOfrON NO. 7157(CCS}
(CIty CounCIl Serles)
A RESOLUTION OF PHE CITY COUNCIL OF TrlE CITY
OF SANTA MONICA SUPPORTING THE PROPOSED
EDISON-LEAGUE OF CALIFORNIA CITIES ALLOCATION
PLAN FOR RULE 20A FUNDS_
WHEREAS, the Caltfornla Public Utllltles CommIsSIon
requires the Southern CalIfornIa EdIson Company to annually
set-aSIde funds for undergroundlng utIlItIes wIthin theIr
terrItorIes; and
WHEREAS, the formula for dIstrIbutIng the allocatIon has
been revIsed to meet the needs of cItIes In accord WIth their
respectIve under9roundlng actIVItIes; and
~HEREAS, the EdIson-League of California CItIes
AllocatIon Plan has been tentatIvely agreed upon; and
WHEREAS, the EdIson-League of CalIfornIa CItIes
AllocatIon Plan IS scheduled to be conSidered by the CalifornIa
PublIC UtIlItIes CommISSIon;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA
MONICA DOES RESOLVE AS FOLLOWS:
SECTION 1. rhe CIty CouncIl supports the EdIson-League
of CalIfornIa CItIes Rule 20A Fund Allocation Plan.
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S~CTION 2. The Clty Clerk shall certlfy to the adoptlon
of thlS resolutlon and thenceforth and thereafter the same shall
be ln full force and effect.
APPROVED AS TO FORM:
~W\tr~
Clty Attorney U-
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Adopted and approved this 11th day of February, 1986.
t~~ J. /~-IL
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I hereby certify that the foregoIng ResolutIon No. 7157(CCS)
was duly adopted by the City Council of the CIty of Santa MonIca
at a meetIng thereof held on February 11, 1986 by the followIng
CouncIl vote:
Ayes: Councllmernbers:
Conn, EpsteIn, JennIngs, A. Katz,
H. Katz, Zane and Mayor Reed
Noes: Councllmembers:
None
AbstaIn: Councllmernbers:
None
Absent: Counc1lmernbers:
None
ATTEST:
. 72 I
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'. {--; L'7 L / /7 -x.-}-l L-t;LkP
- C1 ty Clerk
1