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SR-512-004 (12) EPWM: CP: AA: RF: SP-MISC\cc Reports\Utility Undergrounding City Council Meeting: May 13, 2003 Santa Monica, California TO: Mayor and City Council FROM: City Staff SUBJECT:Five-Year Plan to Move Selected Electric Facilities Underground and Set a Public Hearing for the Use of PUC Rule 20A Funds to Determine the Necessity of Establishing the Underground Utility District at Marine Street Introduction This report recommends that City Council approve a five-year plan to relocate selected electric facilities underground and set a public hearing to hear public testimony on the use of Public Utilities Commission (PUC) Rule 20A Funds to establish an underground utility district along Marine Street, between Lincoln Boulevard and Prospect Court. Background In February 2000, staff recommended that City Council conceptually approve a ten-year plan to evaluate the relocation of selected electric facilities underground as described In accordance with the 1972 State Public Utility Commission Rule 20-A, which specifies that Southern California Edison (Edison) will, at its expense, place existing overhead electric facilities underground. Rule 20A funds come from a surcharge on all electricity customer bills throughout California. Based on criteria reflecting a ?point system?, a collection of 1 residential and commercial streets was suggested as prime candidates for utility undergrounding. At that time, the Council requested that staff: (1) Prioritize residential over commercial streets (2) Prioritize undergrounding transmission lines over distribution lines (3) Defer undergrounding of utilities on Olympic Boulevard to a future project (4) Request that Santa Monica College (S.M.C.) financially participate in the th undergrounding of 18 Court, and (5) Explore the feasibility of the City to advance funds in order to expedite the projects. City staff met with Edison representatives to review the Council?s recommendations and Edison concurred with the first three points suggested by Council. Staff met with th representatives of S.M.C. to discuss its participation in the future undergrounding of 18 Court. Their initial response was favorable with respect to the undergrounding plan and any trenching that may be required of S.M.C. No City funds are available to expedite undergrounding projects at this time and staff will continue to work with Edison and the PUC on advancing Rule 20A funds in order to accomplish this plan, although we anticipate that current allocations will allow the City to underground the residential streets suggested over a five-year rather than a ten-year cycle. Discussion 2 New Five-Year Plan The new proposal removes commercial streets from the undergrounding plan. The residential streets proposed for undergrounding have a heavy concentration of transmission lines. Based on discussions with Edison about workload and ability to deliver, staff determined that the residential street program might potentially be accelerated to a five-year plan. Based on impacts to the neighborhoods and point values assigned, staff recommends prioritizing utility undergrounding as follows: ? Marine Street, from Frederick Street to Lincoln Boulevard th ? 18 Court, from Pico Boulevard to Pearl Street th ? 18 Street, from Ocean Park Boulevard continuing to Ashland Place North th ? 20 Street, from Pearl Street to Ocean Park Boulevard Municipal Code No. 7.52.020 sets forth the procedure by which the City Council may call for a public hearing to ascertain whether the public necessity, health, safety, or welfare requires the removal of poles, overhead wires, and associated overhead structures within designated areas of the City and the underground installation of wires and facilities for supplying electric, communication, or similar service. In accordance with the Municipal Code, staff recommends that the City Council set a public hearing for July 8, 2003 to determine the necessity of establishing the underground utility district at Marine Street. In 1999 the Public Utilities Commission amended their tariff to allow the use of Rule 20A funds to include the conversion of underground service from the property line to the 3 existing electrical panels or meters in the buildings within a proposed District. Property owners are no longer required to pay for connections or conversion of these services to the new underground system. A field review of properties within the proposed Marine Street District, performed by City staff and Edison personnel, reveals that forty-seven parcels will require conversion of their service from overhead to underground. Undergrounding utilities within the proposed District would reduce visual blight and bring a significant new enhancement to the area. If utilities are undergrounded in the proposed district, no overhead utilities will exist along this section of Marine Street, since utilities on th northern portions of Marine from Frederick to 16 Street were already placed underground. It is necessary to pursue the Marine Street utility undergrounding now because significant advance planning is required for Edison to prepare for construction and to coordinate the utility construction work with the anticipated Streetscape Improvement Plan. Completion by Edison of the engineering and construction work for the proposed District is anticipated by December 2004. All affected property owners will be notified in writing of the scheduled public hearing in accordance with Municipal Code 7.52.020. The streets in the proposed five-year plan will be completed in succession following the Main Street undergrounding project currently under construction. 4 Budget/Financial Impact There is no budget or financial impact to the City as a result of the establishment of this Underground Utility District. The utility companies fund the costs of proposed undergrounding of utilities and also pay the service connection costs for affected property owners. Recommendation Staff recommends that the City Council: 1. Approve a five-year plan to relocate selected electric facilities underground, and 2. Set a public hearing on July 8, 2003 to receive public testimony regarding the establishment of the proposed Marine Street Underground Utility District. Prepared by: Craig Perkins, Director of Environmental and Public Works Management Anthony Antich, P.E., City Engineer Ruth Firestone, Engineering Support Services Supervisor 5