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Home My WebLink About2026-04-02; Valley and Magnolia Complete Streets Project Update (District 1); Gomez, PazTo the members of th~: CIJY COUNCI~ Oat:j'.P,-[ll CA V CC V CM ACM ~M (3) ~ April 2, 2026 Council Memorandum To: From: Via: Honorable Mayor Blackburn and Members of the City Council Paz Gomez, Deputy City Manager, Pu~~ ~ark; Sheila Cobian, Acting City Manager ~ Re: Valley and Magnolia Complete Streets ProJect Update {District 1) {city of Carlsbad Memo ID# 2026013 This memorandum provides an update to a previous Council Memorandum dated January 30, 2025, provided as Attachment A, regarding street improvements planned on Valley Street, between Chestnut Avenue and Magnolia Avenue, a portion of Brady Circle and a portion of Magnolia Avenue. Background The Valley and Magnolia Complete Streets Project is included in the city's Capital Improvement Program (CIP) as CIP Project Nos. 6019 and 3904 (Project). The Project includes new sidewalks, curbs, gutters, street lighting, water main replacement and utility undergrounding that will be constructed on Valley Street, Brady Circle and Magnolia Avenue. Attachment A provides additional background on the Project. Discussion The Project will be constructed in phases during Carlsbad Unified School District's (CUSD) summer breaks to minimize disruption to the surrounding schools and neighborhood. Due to time constraints, only limited improvements can be constructed within the brief CUSD summer break. Construction is to be phased as follows: 1) Utility undergrounding, led by San Diego Gas & Electric (SDGE) 2) An adjacent storm drain improvement project at the intersection of Valley Street and Magnolia Avenue (Magnolia Phase 2 Storm Drain Improvements -CIP Project No. 6608) 3) The Project's remaining sidewalk, street and water improvements Construction Schedule Update The Project has been delayed by two years. As reported in Attachment A, construction was expected to be completed by August 2026. The Semiannual Transportation Report received by City Council on January 27, 2026, updated the construction schedule to summer 2027. This Public Works Branch Transportation Department 1635 Faraday Avenue I Carlsbad, CA 92008 I 442-339-2730 t Council Memo -Valley and Magnolia Complete Streets Project Update (District 1) April 2, 2026 Page 2 discussion explains why construction of the remaining sidewalk, street and water improvements has been rescheduled again to summer 2028. Utility companies began relocating overhead utility lines in the project area to an underground system in summer 2024. Initially, utility undergrounding was expected to be completed by mid-2025, followed by the storm drain project to be constructed during summer 2025 and the remaining sidewalk, street and water improvements to be constructed during summer 2026. Instead, SDGE and other utility companies took longer than expected. SDGE is now scheduled to complete the remaining undergrounding work by removing the utility poles from the Project area during the CUSD spring break in April 2026. When the utility undergrounding phase took longer than expected, the schedules for the other project phases were pushed back by one year, moving storm drain construction to summer 2026 and the Project's sidewalk, streets and water improvements to summer 2027. In early 2026, staff were working to finalize storm drain plans, specifications and bid documents. The plans were not finished in time to bid for the storm drain project, award a construction contract and complete construction before the start of the CUSD school year in August 2026. Therefore, the storm drain construction schedule has been adjusted to summer 2027. Next Steps Final design of the Project is now targeted for completion in early 2027 with advertising for construction bids expected in late 2027 to enable award of the construction contract in early 2028. The final phase of the Project is expected to begin in June 2028 when the CUSD school year ends, with completion before the CUSD school year begins in August 2028. Attachment: A. Council Memorandum dated January 30, 2025 cc: Geoff Patnoe, City Manager Cindie McMahon, City Attorney Jeff Murphy, Deputy City Manager, Community Services Laura Rocha, Deputy City Manager, Administrative Services Michael Calderwood, Fire Chief Christie Calderwood, Police Chief Tim Lyons, Assistant City Attorney Tom Frank, Transportation Director/City Engineer Jason Haber, Intergovernmental Affairs Director Zach Korach, Finance Director Mike Strong, Community Development Director Amy Ventetuolo, Communication & Engagement Director Eric Lardy, Assistant Director of Community Development Council Memo -Valley and Magnolia Complete Streets Project Update (District 1} April 2, 2026 Page 3 Emily Hasegawa, Engineering Manager John Kim, City Traffic Engineer Mariel Cairns, Acting Engineering Manager David Edwards, Senior Engineer To the members of the: CITY COUNCIL / Date \IJ,o lt5" CA J CC~ CM_~_ACM~M (3)_l.L'. January 30, 2025 Council Memorandum To: Honorable Mayor Blackburn and Members of the City Council From: Paz Gomez, Deputy City Manager, Public Works Via: Sheila Cobian, Assistant City Manager ~ Re: Valley and Magnolia Complete Streets Project Update (District 1) Attachment A {_city of Carlsbad Memo ID# 2025016 This memorandum provides an update to a previous Council Memorandum dated August 15, 2024 (Attachment A), about street improvements on Valley Street, between Chestnut Avenue and Magnolia Avenue, a portion of Brady Circle and a portion of M~gnolia Avenue as part of the Valley and Magnolia Complete Streets Project, Capital Improvement Program Project Nos. 6019 and 3904 (Project). Background Attachment A, which is the Council Memorandum dated August 15, 2024, provides background information on the Project. The planned improvements include new sidewalks, curbs, gutters and new street lighting and utility undergrounding. This memorandum specifically discusses the utility undergrounding work associated with the Project. In 2015, the City Council formed Underground Utility District No. 20 on Valley Street, between Chestnut Avenue and Magnolia Avenue. Resolution No. 2015-280 authorized the city to move overhead utility lines to an underground system in preparation for the planned improvements. Discussion The utility companies started relocating the overhead utility lines to an underground system in summer 2024. The first step, which included San Diego Gas & Electric (SDGE) trenching and placing conduit in the Project area, was completed in summer 2024. The work was accomplished during the summer break due to nearby schools. The next step, which included SDGE installing cable and Spectrum Charter Communications removing its facilities from the existing utility poles, was completed during the 2024 school winter bre·ak. The remaining undergrounding work, including AT&T removing its facilities from the existing poles and SDGE removing its overhead electrical service, transferring customer services from overhead to the new underground system, and removing the existing poles from the Project area, is expected to be completed by mid-/late 2025. Public Works Branch Transportation Department 1635 Faraday Avenue I Carlsbad, CA 92008 I 442-339-2730 t Council Memo -Valley and Magnolia Complete Streets Project Update (District 1) January 30, 2025 Page 2 Resolution No. 2015-280 also authorized the city to reimburse three property owners for their costs of replacing/upgrading their electrical panels as part of the project. These panels have been upgraded and will be reimbursed after final approval from the city's Building Inspector, and once the final invoice has been submitted and approved by the city. The city has 45 days to review the final invoice and remit payment. Invoices must be itemized and consistent with the work proposal that was pre-approved by the city. Next Steps Once AT&T removes its facilities from the SDGE poles, SDGE will remove its poles by mid-/late 2025 and construction of the undergrounding utilities phase will be deemed complete. Design of the complete streets project is expected to be completed by late 2025 and will be brought to the City Council for approval of plans and specifications and authorization to bid in early 2026. Construction of the complete streets project is expected to begin in June 2026 and to be completed by end of summer 2026. Attachment: A. Council Memorandum dated August 15, 2024 cc: Geoff Patnoe, City Manager Cindie McMahon, City Attorney Gary Barberio, Deputy City Manager, Community Services Laura Rocha, Deputy City Manager, Administrative Services Christie Calderwood, Police Chief Michael Calderwood, Fire Chief Gina Herrera, Assistant City Attorney Tom Frank, Transportation Director/City Engineer Jason Haber, Intergovernmental Affairs Director Zach Korach, Finance Director Jeff Murphy, Community Development Director Kristina Ray, Communication & Engagement Director Mike Strong, Assistant Director of Community Development Hossein Ajideh, Engineering Manager Emily Hasegawa, Engineering Manager John Kim, City Traffic Engineer Eric Lardy, City Planner Nathan Schmidt, Transportation Planning and Mobility Manager Eric Zielke, Senior Engineer To the members of the: CITY COUNCIL Date 31ls\24cA~CC v CM\L' Tc"it1 Lf>cM (3) ~ August 15, 2024 To: ATTACHMENT A Council Memorandum From: Paz Gomez, Deputy City Manager \I Works Via: Geoff Patnoe, Acting City Ma nag r {cityof Carlsbad Memo ID# 2024061 Re: Honorable Mayor Blackburn and el rs of the City Council Valley and Magnolia Complete S s -Future Improvement Agreements (District 1) This memorandum provides an update to a Council Memorandum dated February 29, 2024 (Attachment A), about street improve_ments on Valley Street, between Chestnut Avenue and Magnolia Avenue, a portion of Brady Circle and a portion of Magnolia Avenue as part of the Valley and Magnolia Complete Streets Project, Capital Improvement Program Project Nos. 6019 and 3904 (Project). Background The Project's planned improvements include new sidewalks, curbs, gutters and new street lighting. This memorandum specifically discusses seven future Improvement agreements, or FIAs, that were recorded against nine properties in the Project area. The FIAs require the homeowner(s) to pay for certain previously agreed upon improvements to the street and sidewalk in front of their property, consistent with the requirements in the FIA that was r~corded against their property primarily in the 1970s, though one was recorded as recently as 2000. Discussion There are seven FIAs on nine parcels in the Project area that will require the owners of the properties on Valley Street and Magnolia Avenue to pay for improvements to the street and sidewalk in front of their properties. When these properties were first subdivided or Improved, the city allowed the property owners to defer paying street Improvement fees by entering into FIAs for improvements in the public right of way. This means that when the properties were first built, the property owners at the time opted to defer street improvement fees to a future date and the FIAs were recorded against the titles of the properties. The seven FIAs, as shown in Attachment B, are associated with the following parcels: • 77-307353; for APN 2052202600 • 79-485552; for APN 2052303500 • 79-485553; for APN 2052303600 • 2000-0646540; for APN 2052207600 • 82-260058; for APNs 2052209600, 2052209700, 2052209800 • 73-002190; for APN 2052302100 Public Works Branch Transportation Department 1635 Faraday·Avenue I Carlsbad, CA 92008 I 442-339-2730 t Council Memo -Valley and Magnolia Complete Streets -Future Improvement Agreements August 15, 2024 Page 2 • 1991-0515450; for APN 2052301600 Once the Project design is complete, the city will be able to provide the affected property owners with a cost estimate for their share of the street improvement costs, in accordance with the specific improvements that are listed in their FIAs. The property owners will have the following three options: 1. Hire a contractor to construct the improvements in accordance with the approved improvements plan and Project timeline. 2. Pay for the actual cost of the frontage improvements after the city has completed construction of the improvements and has sent an invoice. 3. Defer the payment until such time as the property owner either sells or refinances the property. To utilize this option, the property owner will be required to sign a Grant of Lien for the amount owed, which will be recorded against the property. The city intends to send out letters to the property owners with FIAs recorded against their property within the Project area after issuance of this memorandum. If the property owners do not elect one of the above three options, and instead take the position that the FIA is not enforceable, the FIA provides the city the right to take legal action to collect its fair share of the construction costs, including the ability to collect reasonable attorney's fees. Next Steps San Diego Gas & Electric {SDGE) is currently in construction with trenching, conduit placement and installation of the cable construction associated with the utility undergrounding work. The work is expected to be completed by late August 2024, before the school year starts. Cabling connections and overhead removal of service work will be less impactful to the community and will occur in late 2024/early 2025. Design of the complete streets project is expected to be completed by early to mid-2025 and will be brought to the City Council for approval of plans and bid documents and authorization to bid. Construction of the complete streets project is expected to begin in June 2025 and to be completed by end of summer 2025. Attachments: A. Council Memorandum dated February.29, 2024 B. Future Improvement Agreements Map cc: Scott Chadwick, City Manager Cindie McMahon, City Attorney Gary Barberio, Deputy City Manager, Community Services Laura Rocha, Deputy City Manager, Administrative Services Council Memo -Valley and Magnolia Complete Streets -Future Improvement Agreements August 15, 2024 Page 3 Michael Calderwood, Fire Chief Christie Calderwood, Police Chief Gina Herrera, Assistant City Attorney Tom Frank, Transportation Director/City Engineer Jason Haber, Intergovernmental Affairs Director Zach Korach, Finance Director Jeff Murphy, Community Development Director Kristina Ray, Communication & Engagement Director Mike Strong, Assistant Director of Community Development Hossein Ajideh, Engineering Manager Emily Hasegawa, Engineering Manager John Kim, City Traffic Engineer Eric Lardy, City Planner Nathan Schmidt, Transportation Planning and Mobility Manager Eric Zielke, Senior Engineer To the members of the: CITY COUNCIL Date~A v' CC✓ CM _iZlACM ~ DCM (3) _L Attachment A Council Memorandum February 29, 2024 To: Honorable Mayor Blackburn and Members of the City Council From: Paz Gomez, Deputy City Manager, Public Works Via: Geoff Patnoe, Acting City Manager @. {city of Carlsbad Memo ID# 2024017 Re: Valley and Magnolia Complete Streets: San Diego Gas & Electric Undergrounding Update (District 1) This memorandum provides an update to a previous Council Memorandum dated June 8, 2023, Attachment A, on a project to underground utilities on Valley Street, between Chestnut Avenue and Magnolia Avenue, a portion of Brady Circle and a portion of Magnolia Avenue as part of the Valley and Magnolia Complete Streets Project, Capital Improvement Program Project Nos. 6019 and 3904 (Project.) Background The planned improvements in the Project include sidewalks, curbs, gutters and new street lighting. This memorandum provides information about three properties in the Project area that will require electrical panel upgrades, which the city previously committed to reimbursing the residents for their costs. Resolution No. 2015-280 dated November 17, 2015, is provided as Attachment B, which includes details about declaring Underground Utility District No. 20. Discussion In 1988, the City-Council established Council Polley No. 41-Policy on Undergrounding Overhead Utilities. The policy provides the city's guidelines for selecting and prioritizing underground projects, consistent with Electric Tariff Rule 201. Electric Tariff Rule 20 specifies the conditions under which new customer facilities must be built underground and the instances where overhead extensions may be permitted. 1 The California Public Utllltles Commission (CPUC) adopted and oversees an Overhead Conversion Program known as Electric Tariff Rule 20. Traditionally, the program has allowed cities to Identify areas for undergroundlng and depending on the project, the investor-owned utility (In this case, San Diego Gas & Electric) may fund some, all or none of the costs. Projects are divided Into four subgroups -Rule 20A through Rule 20D -which provide diminishing levels of ratepayer contribution to projects. The Rule 20A funding for this project Is approximately $1,730,000. As of December 31, 2022, the Rule 20 program has been discontinued, and no new Rule 20 funding is available. Publlc 0 Works Branch Transportation Department 1635 Faraday Avenue I Carlsbad, CA 92008 I 442-339-2730 t Council Memo -Valley & Magnolia Complete Streets: SDGE Undergrounding Update (District 1) February 29, 2024 Page 2 In 2015, the City Council formed Underground Utility District No. 20 on Valley Street, between Chestnut Avenue and Magnolia Avenue, with Resolution No. 2015-280 (Attachment B) to move overhead utility lines to an underground system, in accordance with Carlsbad Municipal Code Chapter 11.08-Underground Utility Districts. The boundaries of Underground Utility District No. 20, include the following: • Valley Street between Chestnut Avenue and Magnolia Avenue • Portions of Magnolia Avenue approximately 500 feet east of Valley Street and 110 feet to the west • Brady Circle from the intersection of Valley Street to approximately 150 feet west Process of undergrounding utilities The utility companies that convey electrical and telecommunication lines along this segment, and are involved in this project, are San Diego Gas & Electric (SDGE), AT&T and Spectrum Charter Communications. The undergroundlng work will be completed by an SDGE contractor and will consist of: • Digging a trench about 5 feet deep and 2.5 feet wide along the public right-of-way • Installing conduit, cable and substructures, along with aboveground facilities, such as electrical transformer boxes and telecommunication equipment pedestals • Removing existing overhead utility lines and poles • Upgrading utility poles or installing new ones at the boundaries of the project as needed for the transition to the new underground system • Relocating an SDGE gas main line and service lines beneath Magnolia Avenue east of Valley Street Individual customer connections will be made laterally, underground from the main line in the right-of-way, to install conduit and cable. The surface condition will be restored to pre-existing conditions when the work is completed. 0 Dig trenches and place conduit Install new cables & utility equipment Public Works Branch Transportation Department Switch service to underground system 1635 Faraday Avenue I Carlsbad, CA 92008 I 442-339-2730 t 0 Remove overhead poles Council Memo -Valley & Magnolia Complete Streets: SDGE Undergrounding Update (District 1) February 29, 2024 Page 3 Electrical panel upgrades The city's Building Division in the Community Development Department conducted electrical panel inspections of all residences included in Underground Utility District No. 20. The inspections identified three properties that will require electrical service panel upgrades to connect to the new underground system. The property owners ofthe three impacted properties have received several notifications about the Project and the need for upgrades, primarily by mail. Resolution No. 2015-280 (Attachment B) provides that "no expense shall be incurred by the property owner unless an increase in panel size is requested by them." As such, the city will furnish all labor, materials, equipment and incidentals necessary to replace the three needed electrical panels. The City Council also waived permit fees associated with the property conversions. Staff have developed the following reimbursement program for electrical service upgrades: • The city, along with SDGE, will provide reimbursement to upgrade the three properties' electrical panels to comply with undergrounding conversion needs. SDGE will fund $1,500 toward upgrade costs. The residents are responsible for any costs beyond the city's contribution, which will be limited to only the work that is necessary to bring the panels into compliance with current electrical standards. s The electrical panel upgrade work must be performed by a California C-10 licensed/registered electrical contractor and permitted by the City of Carlsbad. • The electrical panel upgrades must be completed in a timely manner, and residents will be notified of any deadlines. If not completed on time, resident(s) will be precluded from seeking reimbursement from the city. The electrical panel upgrade is a critical aspect of the Project because the upgrades must be completed before SDGE can complete its undergrounding connection, which is anticipated to occur in the fall/winter 2024. The approval process for the city's reimbursement program is as follows: • The property owner must apply to the city for pre-approval by submitting an itemized work proposal by a licensed contractor. The city will have up to 45 days to review and provide pre-approval for the total eligible cost of reimbursement. e Prior to completion of the city-permitted work, a final inspection must be performed by the city's Building Inspector. The applicant/property owner and/or contractor must inform the city's Building Inspector before the panel upgrade work starts and subsequently schedule an inspection after the work is complete. • Upon completion of the panel upgrade work and final approval from the city's Building Inspector, the applicant/property owner shall submit a final invoice to the city. The city has up to 45 days to review and remit payment. Invoices must be itemized and consistent with the work proposal that was pre-approved by the city. Public Works Branch Transportation Department 1635 Faraday Avenue I Carlsbad, CA 92008 I 442-339-2730 t Council Memo - Valley & Magnolia Complete Streets: SDGE Undergrounding Update (District 1) February 29, 2024 Page 4 This undergroundlng project is partially funded by the California Public Utilities Commission Rule 20A funding program. The city has accumulated $1,729,513 through this program and will receive a work credit in this amount when the project moves to construction. However, SDGE's construction cost estimate is more than what is available in the city's Rule 20A work credit allocation fund, so the remaining balance needs to be paid by funds allocated for the Project. The total anticipated costs for the three electrical service panel upgrades are not expected to exceed $10,000. These costs are in addition to the undergrounding cost estimate that is pending from SDGE. On November 7, 2022, the City Planner determined that both the undergrounding work and the complete streets project are exempt from the California Environmental Quality Act. Complete Streets Project In parallel, design of the Valley and Magnolia Complete Streets Project is progressing. It will include necessary improvements such as new sidewalks, curbs and gutter, Americans with Disabilities Act (ADA)-compliant pedestrian curb ramps, additional street lighting and improved conditions for bicyclists. The complete streets work is progressing under an agreement with consultant, BHA, Inc., which the City Council approved in the amount of $153,060 on November 28, 2023. Staff are coordinating with property owners on the proposed design options and soliciting feedback. Next Steps City staff are coordinating with SDGE and evaluating options for the undergrounding work to proceed in June 2024, which will occur over the summer school break to minimize construction impacts to the school community. SDGE recently re-advertised the undergrounding work for construction bids, and staff expect to receive a new cost estimate for the undergrounding work from SDGE by late March 2024. Staff plan to present a new agreement with SDGE, including revised costs, to the City Council for authorization and possibly additional appropriation in April 2024. If approved, the undergrounding construction schedule will begin in June 2024. Trenching, conduit placement (civil work) and installation of the cable construction associated with the undergrounding will be completed by mid-to late-August 2024 before the school year starts. Cabling connections and overhead removal of service will be less impactful to the community and will occur in winter 2024 including early 2025. Design of the complete streets portion of the project is expected to be completed by early 2025. Attachments: A. Council Memorandum dated June 8, 2023 B. Resolution No. 2015-280 dated November 17, 2015 Public Works Branch Transportation Department 1635 Faraday Avenue I Carlsbad, CA 92008 I 442-339-2730 t Council Memo -Valley & Magnolia Complete Streets: SDGE Undergrounding Update (District 1) February 29, 2024 Page 5 cc: Scott Chadwick, City Manager Cindie McMahon, City Attorney Gary Barberio, Deputy City Manager, Community Services Laura Rocha, Deputy City Manager, Administrative Services Michael Calderwood, Fire Chief Mickey Williams, Police Chief Gina Herrera1 Assistant City Attorney Tom Frank, Transportation Director/City Engineer Jason Haber, Intergovernmental Affairs Director Zach l<orach, Finance Director Jeff Murphy, Community Development Director l<ristina Ray, Communication & Engagement Director Mike Strong, Assistant Director of Community Development Hossein Ajideh, Engineering Manager Emily Hasegawa, Engineering Manager John l<im, City Traffic Engineer Eric Lardy, City Planner Nathan Schmidt, Transportation Planning and Mobility Manager Eric Zielke, Senior Engineer Public Works Branch Transportation Department 1635 Faraday Avenue I Carlsbad, CA 92008 I 442-339-2730 t To the members of the: CITY COUNCIL oatj/Sl'.2.~. CAjL_ tc L CM_ ACM £DCM (3) L June 8, 2023 ATTACHMENT A Council Memorandum To: From: Honorable Mayor Blackburn and Members of the City Council Paz Gomez, Deputy City Manager, Publlc Works Via: {cicyof Carlsbad Memo ID# 2023056 Re: Geoff Patnoe, Assistant City Manageir{4 Valley Street and Magnolia Avenue ~a-;;~Diego Gas & Electric Utility Undergroundlng Update (District 1) This memorandum provides an update to a previous City Council Staff Report dated January 24, 2023, and Council Memorandum dated July 21, 2022 (Attachments A and B) on the Valley and Magnolia Complete Streets Project, Capital Improvement Program (CIP), Project Nos. 6019 and .3904 (Project), which includes utillty undergrounding. Background The Council Memorandum dated July 21, 2022, provided background information on the Project. Additionally, the City Council Staff Report dated January 24, 2023, provided Information on the agreement with San Diego Gas & Electric (SDGE) to perform aerial-to-underground conversion of overhead utilities on Valley Street and Magnolla Avenue. Discussion The City Council executed an agreement under which SDGE would move electrical and telecommunication lines from overhead to underground on parts of Valley Street and Magnolia Avenue and a portion of Brady Circle. The City Council authorized the City Manager to execute the agreement with SDGE for an estimated amount of $2,844,592. The City Council also authorized the City Manager or deslgnee to approve change orders in an amount equal to the contingency, which for the Project was $568,918. The Project is partially funded by the California Public Utilities Commission Rule 20A funding program. The city accumulated $1,729,513 through this program and will receive a work credit In this amount when the Project moves to construction. SDGE's construction cost estimate for the entire undergrounding work was $3,413,510, including a construction contingency amount of $568,918, as of January 2023. SDGE1s construction cost estimate did not Include the city's construction management and Inspection cost of $230,000. The total estimate is more than what Is available In the city's Rule 20A work credit allocation fund,. so the remaining balance is to be paid by the funds set aside for the Valley and Magnolia Complete Streets Project, CIP No. 6019. Public Works Branch Transportation Department 1635 Faraday Avenue I Carlsbad, CA 92008 I 442-339-2730 t I I ' Council Memo -Valley St. and Magnolia Ave. SDGE Utility Undergrounding Update (District 1) June 81 2023 Page 2 After SDGE advertised the undergrounding work for construction bids earlier this year and based on the lowest bid received, SDGE provided the city with an updated cost estimate of $5,125,557, which was approximately 50% higher than the original estimate. City staff requested additional information to identify potential options for how to proceed. Unfortunately, this means SDGE will not be able to start construction this summer as planned. The intent of the undergrounding construction schedule was to begin in June 2023, during the summer break for the schools in the project area, to minimize construction impacts to the community. Trench and conduit construction associated with the undergrounding work was to be completed by mid-August 2023 before the 2023-24 school year starts. However, staff cannot move forward with the undergrounding work because SDGE's updated cost estimat~ exceeds the amount previously approved by the City Council; therefore, the undergroundlng work cannot be completed over the summer months this year. Staff have communicated the delay with property owners located in the underground district boundary and adjacent schools, Carlsbad High School, Valley Middle School, Magnolia Element~ry School and North County Academy. Sa'mples ofthe notification letters are provided (Attachment C). The city is continuing to work on the. complete streets project design to add sidewalks and other improvements to Valley Street, from Chestnut Avenue to Magnolia Avenue, and a portion of Magnolia Avenue. On June 20, 2023, the City Council will review authorization to exempt from the purchasing ordinance's competitive bidding requirements and execute an agreement with BHA, Inc. (BHA) to continue to provide engineering services for the Valley and Magnolia Complete Streets Project. The current agreement with BHA is set to expire on October 20, 2023; however, BHA's remaining budget will be depleted before the contract expiration date. Next Steps Staff are evaluating options for the undergrounding work to proceed next year, with a proposed construction start date of June 2024. In coordination with city staff, SDGE will re-advertise the undergrounding work for construction bids in early 2024 with the target bid opening of February/March 2024. After the bid opening, staff will receive a new cost estimate from SDGE and will present it to the City Council for approval and request for additional appropriations, if needed. Staff will return to the City Council later this year with a status update and to present options for completing the project. Attachments: A: City Council Staff Report dated January 24, 2023 B. Council Memorandum dated July 21, 2022 C. Samples of notification letters to the residents and sc.hools Council Memo -Valley St. and Magnolia Ave. SDGE Utility Undergrounding Update (District 1) June 8, 2023 Page 3 cc: Scott Chadwick, City Manager Cindie McMahon, City Attorney Gary Barberio, Deputy City Manager, Community Services Laura Rocha, Deputy City Manager, Administrative Services Michael Calderwood, Fire Chief Mickey Williams, Police Chief Tom Frank, Transportation Director/City Engineer David Graham, Chief Innovation Officer Jason Haber, Intergovernmental Affairs Director Zach l<orach, Finance Director Jeff Murphy, Community Development Director Vicki Quiram, Utilities Director l<ristina Ray, Communication & Engagement Director Gina Herrera, Deputy City Attorney Hossein Ajideh, Engineering Manager John l<im, City Traffic Engineer Nathan Schmidt, Transportation Planning and Mobility Manag~r Eric Lardy, City Planner Eric Zielke, Senior Engineer Lauren Ferrell, Associate Engineer ATTACHMENT A CA Review __BL CITY COUNCIL Staff Report Meeting Date: To: From: Staff Contact: Jan. 24, 2023 Mayor and City Council Scott Chadwick, City Manager Lauren Ferrell, Associate Engineer lauren.ferrell@carlsbadca.gov, 442-339-2558 Hosseln Ajldeh, Engineering Manager hossein.ajideh@carlsbadca.gov, 442-339-2756 Subject: Agreement with San Diego Gas & Electric to Move Aboveground Utility Lines on Valley Street and Magnolia Avenue Underground Dist rict: 1 Recommended Action Adopt a resolution authorizing the City'Manager to execute an agreement with San Diego Gas & Electric, to perform Rule 20A aerial-to-underground conversion of overhead utilities on Valley Street and Magnolia Avenue for an estimated amount of $2,844,592. Executive Summary The City Council Is being asked to execute an agreement under which SDG&E would move electrical and telecommunication lines from overhead to underground on parts of Valley Street and Magnolia Avenue and a portion of Brady Circle. This utility undergroundlng work needs to be completed as part of the Valley and Magnolia Complete Streets Project, Capital Improvement Program Project No. 6019, specifically, the utility poles need to be removed so new sidewalks can be Installed. A credit the city received from the California Public Utilities Commission's Rule 20A undergroundlng program will cover part of the costs of the project. The City Council's approval for this project Is required because the proposed agreement with SDG&E is In an amount not to exceed $2,844,592, and Carlsbad Municipal Code Section 3.28.0G0(D)(S) requires the City Council's approval of agreements that will cost the city $100,000 or more per agreement year. Staff recommend that the City Council adopt the proposed resolution, Exhibit 1, authorizing the City Manager to execute the agreement with SDG&E. Explanation & Analysis Background The Rule 20A program, established in 1983, provided that certain funds would be set aside each year by SDG&E to pay for the undergroundlng of existing utility lines. Jan. 24, 2023 Item #2 Page 1 of 13 In 1988, the City Council established Council Policy No. 41 on undergrounding overhead utilities. The policy, consistent with Rule 20A, stated the city's guidelines and desires on selecting or prioritizing underground projects. The City Council formed an underground utility district In 2015 to move overhead utility lines to an underground system, in accordance with Carlsbad Municipal Code to Chapter 11.08 - Underground Utility Districts. The boundaries of this district, named Underground Utility District No. 20, cover (See location map, Exhibit 2): o Valley Street between Chestnut Avenue and Magnolia Avenue, o Portions of Magnolia Avenue approximately 500 feet east of Valley Street and 110 feet to the west o Brady Circle from the intersection of Valley Street to approximately 150 feet west The utility companies that convey electrical and telecommunication lines along this segment, and who are Involved in this project, are SDG&E, AT&T and Spectrum Charter Communications. Complete Streets Moving the existing overhead utilities underground and removing the utility poles is needed to support the Valley and Magnolia Complete Streets Project, Capital Improvement Program Project No. 6019. Complete Streets is an approach to designing streets that enables safe access for everyone who needs to use them and all modes of travel. Th is project will make street Improvements within the city right-of-way along both sides of Valley Street from Chestnut Avenue to Magnolia Avenue, and on the north side of Magnolfa Avenue from Valley Street to approximately 500 feet east of the Intersection. These improvements will provide: G New sidewalks, curbs and gutters o Pedestrian curb ramps o Improved conditions for bicyclists and pedestrians o Additional lighting Project details The undergroundlng work to be carried out by SDG&E will consist of: o Digging a trench about 5 feet deep and 2.5 feet wide along the public right-of-way o Installing conduit, cable and substructures, along with aboveground facilities, such as electric transformer boxes and telecommunlcation equipment pedestals1 o Removing existing overhead utility lines and poles o Upgrading utility poles or installing new ones at the boundaries of the project as needed for the transition to the new underground system 0 Relocating an SDG&E gas main line and service lines beneath Magnolia Avenue, east of Valley Street Individual customer connections will be made by boring laterally, underground from the main line in the right of way to install conduit and cable. If lateral boring is not feasible, open 1 These are plastic cylinders, about 2-or 3-feet tall, that house the equipment. Jah. 24, 2023 Item #2 Page 2 of 13 trenches approximately 2 feet deep and 2 feet wide will be dug, with surfaces restored to pre- existing conditions when the work Is completed. Three properties will be required to upgrade their electric service panel; they have been notified by mall. Some properties may need to have Installation of conduit and a Junction box installed on their exteriors. SDG&E will make that determination and make the necessary Installations. Fiscal Analysis This project Is to be partially funded by the California Public Utility Commission Rule 20A funding program, which allowed funds to be set aside each year by SDG&E to pay for undergroundlng existing overhead electric facllltles. The city has accumulated $1,729,513 through this program. The commission Issued a decision in 2021 that significantly revised the Rule 20A program, discontinuing allocations for Rule 20A electric projects carried out after April 2022. Due to this ruling, the city wlll receive no additional revenue from the program. Because Underground Utlllty District No. 20 was created by the City Council before that cut-off date, it is approved to receive the city's available credit from the Rule 20A program Total construction costs are estimated to be $3,643,510, This Is more than what Is available in the city's Rule 20A work credit allocation fund, so the remaining balance of $1,913,997 ls to be paid by the funds set aside for the Valley & Magnolia Complete Streets Project, Capita! Improvement Program Project No. 6019. Sufficient funding has been appropriated from the Traffic Impact Fee and Trans Net funds for the remaining costs. 2 Summary of costs and funding Valley & Magnolia Complete Streets Project Capital Improvement Program Project No. 6019 Total appropriation to date $4,736,206 Total expenditures and encumbrances to date $484,105 Total available balance $4,252,101 Total estimated SDG&E undergrounding costs Construction contract (estimated) $2,844,592 Construction contingency (estimated) $568,918 Construction management, inspection, testing, public outreach (estimated) $230,000 Total estimated construction costs $3,643,510 Costs paid by Rule 20A work credit allocation balance $1,729,513 Remaining balance to be paid by the city from CIP Project No. 6019 $1,913,997 Remaining balance In CIP Project No. 6019 $2,338,104 Additl_onal appropriation requested $0 2 Trans Net Is a countywlde sales tax collected to fund regional transportation projects. Jan. 24, 2023 Item #2 Page 3 of 13 SDG&E's estimated cost Is approximate, and the actual costs incurred by SDG&E will be computed upon completion of the work. The city will be responsible for paying SDG&E's actual costs. Carlsbad Municipal Code sections 3.28.040(C}(5} and 3.28.090(~) authorize the City Manager or deslgnee to approve change orders· In an amount equal to the contingency set at the time of project award, which, for this project, Is $568,918. Community Engagement City staff have coordinated with the residents and adjacent schools about the undergroundlng and future construction. Staff prepared mailers with fact sheets to Inform them about the project, in keeping with the procedures detailed In Carlsbad Municipal Code Section 11.08.070 - Notice to property owners and utility companies. In addition, the city, along with SDG&E, has held several coordination meetings with representatives of the Carlsbad Unified School District and North County Academy, the school at the corner of Valley and Magnolia. Options Staff provide the following options for the City Council's consideration: 1. Authorize the City Manager to execute an agreement with SDG&E to perform Rule 20A uttllty aerial-to-underground conversion on Valley Street and Magnolia Avenue In an estimated amount of $2,844,592 Pros • Provides a cost-effective and fast solution to underground existing telecommunication and electrical facllltles consistent with Council Polley No. 41 • Eliminates the need for a city-managed proj~ct design, sollcltatlon and capital construction effort that would most likely exceed SDG&E costs • Provides cost savings In design, construction and material costs • Sufficient funding Is available for the contract Cons • None identified 2. Do not authorize the City Manager to execute the agreement with SDG&E Pros • Noneldentlfled Cons • Does not allow the city to realize cost savings on design, construction and material costs • Requires concerted efforts on multiple contracts to execute design and construction services • Delays undergroundlng of electrical and telecommunlcatlon lines • Delays Implementation of the underlying Capital Improvement Program Project No. 6019, which would likely increase project delivery costs Staff recommend Option 1. Jan. 24, 2023 Item #2 Page 4of 13 Next Steps Upon recelVlng the City Council's authorization, the City Manager will execute an agreement with SDG&E to perform utility aerial-to-underground conversion. SDG&E plans to complete their design and permitting process, bid and award a construction contract In spring 2023. SDG&E estimates that construction will begin In June 2023 upon completion of the school year to minimize traffic impacts associated with construction. Trench and conduit construction is estimated to be completed by mid-August 2023 before the fall school year starts. Additional construction activities will occur past August 2023, but work will be minor In nature with minimal Impacts to the school. Environmental Evaluation The City Planner has determined that project Is exempt from the California Environmental Quality Act under Guidelines Section 15302(d), which covers replacement or reconstruction of existing structures and faclllties, including the conversion of overhead electric utility distribution system facilities to undergroun'd when the surface Is restored to the existing condition, and where the new structure will be located on the same site have substantially the same purpose and capacity; and where the existing public structures and facllitles involve negligible or no expansion and no exception to the exemption as set forth In CEQA Guidelines Section 15300.2 applies. Exhibits 1. City Council resolution 2. Location map Jan. 24, 2023 Item #2 Page 5 of 13 RESOLUTION NO. 2023-032 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH SAN DIEGO GAS & ELECTRIC TO PERFORM RULE 20A AERIAL-TO-UNDERGROUND CONVERSION OF OVERHEAD UTILITIES ON VALLEY STRE.ET AND MAGNOLIA AVENUE Exhibit 1 WHEREAS, in 1983, the California Public Utilities Commission instituted the Rule 20A funding program, whic!i provided that certain funds are set aside each year by San Diego Gas & Electric, or SDG&E, to pay for undergrounding of existing utility lines; and WHEREAS, In 1988, Council Policy No, 41 was established on undergrounding overhead utilities, which is consistent with Rule 20A and provides guidelines and desires on selecting or prioritizing undergroundlng projects; and WHEREAS, on Nov. 17, 2015, the City Council adopted Resolution No. 2015-280, creating Underground Utility District No. 20 pursuant to Chapter 11.08 of the Carlsbad Municipal Code, associated with the Valley and Magnolia Complete Streets Project, Capital Improvement Program Project No. 6019; and WHEREAS, relevant portions of the project Includes Valley Street between Chestnut Avenue and Magnolia Avenue, and a portion of Magnolia Avenue approximately 500 feet east and approximately 110 feet west of Valley Street, and approximately 150 feet of Bradley Circle; and WHEREAS, SDG&E, AT&T, and Spectrum Charter Communications are the utility companies that have facilities on the existing poles that convey telecommunication and electrical lines within the subject segment of Valley Street and Magnolia Avenue; and WHEREAS, the City Council of the City of Carlsbad has determined the public health, safety or welfare requires removal of the poles, overhead wires and associated overhead structures, and underground installation of wires and facilities for supplying electric, communication or similar or associated service within the project area; and WHEREAS, undergrounding ofoverhead utilities for this project is consistent with Council Polley No. 41; and WHEREAS, SDG&E has provided the city with an estimated cost to design, construct, place conduit, place cables, in the street public right-of-way and to the customers' service point, remove poles and overhead cables, and place new poles at the boundary of the underground district, where Jan. 24, 2023 Item #2 Page 6 of 13 determined necessary for the transition from the existing aerial system to the new underground system, and relocate approximately 1,500 feet of gas main line; and WHEREAS, SDG&E's construction cost for the undergroundlng effort is estimated to be $2,844,592, which does not include cpnstruction contingency and construction management and inspection costs; and the total construction cost, Including construction contingency amount of $568,918 and construction management and inspection costs of $230,000, is estimated to be $3,643,510; and WHEREAS, SDG&E's estimated cost Is only approximate, and that the actual costs Incurred by SDG&E will be computed upon completion of the work,·for which the city is responsible for payment of SDG&E's actual costs; and WHEREAS, proceeding in this fashion eliminates the need for a city-managed project design, solicitation and capital construction effort that would: (I) exceed SDG&E's costs, (ii) delay undergroundlng of telecommunication and electrical lines, and (iii) delay completion of the underlying CIP Project No. 6019; and WHEREAS, the project Is partially funded by the Rule 20A funding program, which provides that certain funds are set aside each year by SDG&E to pay for undergrounding existing overhead electric facilities, and for which the city's current Rule 20A work credit allocation balance Is $1,729,513; and WHEREAS, the city's Capital Improvement Program budget will cover the remaining estimated balance of $1,913,997, of which $1,683,997, Including $568,918 for construction contingency, is to be paid to SDG&E for actual costs and $230,000 is to cover construction management and inspection costs; and WHEREAS, sufficient funding is available in Capital Improvement Program Project No. 6019; and WHEREAS, Carlsbad Municipal Code sections 3.28.040(C)(5) and 3.28.090(8) authorize the City Manager or designee to approve change orders in an amount equal to the contingency set at the time of project award, which is $568,918 for this project; and WHEREAS, the City Planner has determined that the project Is exempt from the California Environmental Quality Act under CEQA Guidelines Section 15302(d), which covers replacement or reconstruction of existing structures and facilities, including the conversion of overhead electric utility distribution system facilities to underground when the surface is restored to the existing condition, and where the new structure will be located on the same site have substantially the same purpose and Jan.24,2023 Item #2 Page 7 of 13 capacity; and where the existing public structures and facilities Involve negligible or no expansion and no exception to the exemption as set forth In Guidelines Section 15300.2 applies. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. That the City Council authorizes the City Manager, or deslgnee, to execute an agreement with SDG&E to perform Rule 20A aerial-to-underground conversion of overhead utilities along Valley Street and Magnolia Avenue, attached as Attachment A. 3. Thatthe City Council authorizes the City Manager or deslgnee to approve change orders In an amount equal to the contingency set at the time of project award, which Is $568,918 for this project. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 24th day of January. 2023, by the following vote, to wit: AVES: Blackburn, Bhat-Patel, Acosta, Burkholder. NAYS: None. ABSTAIN: ABSENT: Jan. 24, 2023 None. None. l(EITH BLACKBURN, Mayor ltem#2 Page 8 of 13 soof _A~ S~mprn Energy Ul!Jly' Submitted to Applicant by: SDG&E Work Order(s): AGREEMENT FOR REPLACEMENT OF OVERHEAD WITH UNDERGROUND FACILITIES Attachment A THIS AGREEMENT, made and entered Into, by and between SAN DIEGO GAS & ELECTRIC COMPANY, a corporation, hereinafter called "Utility", and THE CITY OF CARLSBAD, hereafter.called "Appllcant(s)". WITNESS ETH: WHEREAS, Appllcant(s) are the owners, lessees, or others having a legal Interest In those certain premises known as the Valley & Magnolia Rule 20A Conversion Project located at certain areas of Valley Street and Magnolia Avenue; and WHEREAS, Applicant's desire that existing overhead facilities be replaced with underground facllltles, and In consideration of the deslrablllty and value which said underground facllltles will add and contribute to the above premises; NOW, THEREFORE, It Is agreed by and between Utility and Applicants as follows: 1. Subject to the conditions hereinafter provided, Utlllty, upon obtaining satisfactory easements for any required rights of way, shall remove Its existing overhead electrlc'power facllltles serving Applicants and shall replace these facllltles with underground facllltles, In accordance with Its Rule 20,A for Replacement of Overhead with Underground Facllltles as filed with the Callfornla Public Utilities Commission. 2. All work performed by the Utility and Appllcants pursuant to this Agreement shall be In conformity with the General Conditions and the Specifications attached hereto and by this reference made a part hereof. Utlllty shall furnish underground electric service to the premises shown on Specifications and, upon completion of the work specified herein, Utlllty shall not furnish overhead electric service to any of such premises. 3. This Agreement shall become effective only upon compllance with all of the following conditions: a) All Appllcants shall execute this Agreement and shall perform all of the conditions herein contained, b) All Applicants shall execute a companion agreement with each company, municipality, or agency that ls a Joint user with Utility of poles, or maintains other poles, within the area from which Utility's pole will be removed pursuant to Section 1, for providing communication service, traffic slgnals, pollce or fire alarm boxes, or street or safety lighting supplied by overhead wiring. Such agreement or agreements wlll provide for such service to be discontinued or converted and maintained through underground circuits or other appropriate and lawful means, so that all of said poles can be removed from the area within a reasonable time after Utfllty has removed Its poles. c) Applicants wlll, at their expense and In conformity with 'the Contract Documents as deflried In the General Conditions, furnish and Install the material, and facllltles and perform the work Indicated below by a check marl<. The material, facllltles and work listed below which are not Indicated with a check marl< shall be furnished, Installed and performed by Utility at Applicants' expense. FORM 10B-2759L (4/91) Jan. 24, 2023 Item #2 Page 9 of 13 D Excavation, backfill and compaction D Conduits D Concrete substructures d) Utility shall notify Applicants, In writing, of final acceptance of the worl< specified herein. Applicants hereby grant to Utility all facllltles Installed by Applicants pursuant to this Agreement, said grant to be effective upon receipt of Utility's written final acceptance. e) Each Applicant shall, al his expense, promptly provide any necessary changes lo the existing facllltles on his property so as to receive underground electric service at the points specified on the Specifications. The Applicants' work shall be in accord with Utility's Rule on Service Connections flied with the California Public Utilities Commission effective as of the date of this Agreement, and In accord with the Contract Documents. Underground electric service will not be supplied until all affected premises are equipped to receive electric service ln accordance with said plan and specifications. 4. The entire undergroundlng work Is estimated lo cost $2,844,592 (which equates to $3,413,510 with 20% construction contingency). The city's current Rule 20A worl< credit balance is $1,729,513. Applicant(s) will utilize Its available Rule 20A Work Credits to fund this work, and the remainder ofthe costs associated with the Project will be paid for by Applicant(s) as follows: payment via check made out to SDG&E and mailed lo the address listed on the attached Cost Remittance. Receipt lsacl<nowledged from Appllcant(s) of $1,683J)97, which Is an amount equal to the estimated cost of the Utlllty's conversion worl< (Including 20% contingency), less the City's available Rule 20A Worl< Credlls,ln accordance with Its Flied Rule on Replacement of Overhead with Underground Facllllles. Said amount Includes any engineering fee or fees that have been paid to Utility In contemplation of the worl< provided in Section 2. The conversion work will be tracl<ed and billed on an actual cost basis, meaning that all costs will be reconciled at completion of the work and SDG&E will bill or refund to Applicant any differences larger than $100. 5. In the event any additions, rearrangements, or changes to the electric wiring are required or performed on Applicants' several premises, other than the worl< pursuant to Section 3.e) above, Applicants shall cause said additions, rearrangements, and changes lo be made at their expense. 6. All wires, cables, conductors, conduits, ducts, connectors, and appurtenances installed by Utility, or its agents, on the premises of Applicants, or elsewhere, and all facllllies granted to Utility by Applicants, shall become and remain the property of Utility notwithstanding any payment made under this Agreement. Such facilitles will be maintained and operated by Utlllty In accordance with its Rules for the Sale of Electric Energy on file with the California Public Utllltles Commission. a) Utility shall be under no obligation to perform and complete the work undertal<en by it pursuant to this Agreement until Applicants' obligations Incurred pursuant to Paragraphs 3.b) and 3.e) of this Agreement shall have been fulfilled. b) If the Specifications attached hereto require the Installation of new street lighting standards, Utility shall be under no obligation to remove and cease operating Its overhead electric facilities nor to furnish underground electric service lo any of the premises shown on the Specifications until said street lighting standards have been installed and energized. c) Utility at Its sole election, may undertal<e to perform the work to be performed by ii prior to the occurrence of the conditions specified In section 7. and subsection b) of this Section. The commencement of any such work by Utility under the provisions of this subsection shall not constitute a waiver of any of the requirements Imposed upon any Applicants under section 7. or subsection b) of this Section, or under any other provisions of this Agreement. d) If any Applicants shall, within one year of the date of this Agreement, fall or refuse to comply with any of the conditions hereof or to perform all worl< required under the contracts executed pursuant to Paragraph 3,b) of this Agreement, Utility shall have the right to mal<e such changes and to Impose such further conditions upon the Applicants as may be necessary to protect its rights under any existing agreement fo'r any increase In its costs of Installation, and to provide In any other manner for the accomplishment of the purposes of this Agreement consistent with applicable rules, laws, ordinances and its contractual obligations hereunder. 2 FORM 10B-2759L (4/91) Jan. 24, 2023 Item #2 Page 10 of 13 7. Once Applicant has started to perform the worl< required by the Contract Documents, Applicants agree lo exercise reasonable dlllgence In pursuing such work to completion within one year after the effective date of the Contract Documents. If such work has not been completed within one year after the effective date of the Contract Documents, Utlllty shall have the right, upon giving written notice to Applicants, to cancel and terminate the Contract Documents. Utility shall return to Applicants, an amount equal to the above cash advance, minus Utility's costs. Utility's costs are defined as the actualcost (Including but not limited to labor, materials and overhead) Incurred by Utility prior to such cancellation and termination In connection with work done In furtherance of Applicants' project, plus the actual cost of removing any of the Utility Installed facllllles which Utility desires to salvage, minus the salvage value of such facllltles. Upon exercise of this right to cancel and terminate, and upon payment to Applicants, all of Utility's obligations under the Contract Documents shall cease. 8. This Agreement shall at all times be subject to such changes -or modifications by the California Public Utility Commission as said Commission may, from time lo time, direct in the exercise of Its jurisdiction. 9. All terms and situations heretofore made and agreed to by the parties In relation to said electric line replacement are set forth In this Agreement and no representation of any agent or employees shall be binding upon Utility except as expressed herein. Appendix A attached hereto Is solely for use by Utllity and nothing contained therein shall In any way alter or vary any term, condition or stipulation contained In this Agreement. 10. If Applicant Is a corporation, partnership, joint venture or a group of Individuals, the subscriber hereto represents that he has the authority to bind said corporation, partners, joint venture or Individuals as the case may be. Each Applicant signing this Agreement agrees that he shall be jointly and severally liable under the terms of this Agreement with every other applicant signing the Agreement. 11. All of the terms and conditions of this Agreement shall be binding upon and shall Insure to the benefit of the parties hereto, their heirs, administrators, executors, personal representatives, trustees, successors and assigns. 12. The Contract Documents shall become effective only upon the date signed by the authorized representative of Utility. 3 FORM 106•2759L (4/91) Jan. 24, 2023 Item #2 Page 11 of 13 IN WITNESS WH!:REOF, the parties hereto have Individually executed, or have caused this Agreement to be executed for and on behaff of each, by and through their responsible agents, partners, or authorized corporate officers, as the case may be, By: --.f'---'Mo,._,,_ _______ _ A or ed Signature) Name: s u rt G\/\U) dMJ' rJ? (Please Print or Type) Title: lA!J M ('vi\/\¥' Date: 2Jis:A ~ Address: \ 1..,-0() wl ~ k,u V \\\MJ, O y , Ctw l ~ toJ.. 1 c-A q yo~ Telephone: _ APPROVED AS 'JO fORM Cindie K. McMahon, City Attorney ~ 0')L ( (_ ~\~~ &sslstantmapuiy Clty Attomey Cily ol Cmlsbadt California Jan. 24, 2023 SAN DIEGO GAS & ELECTRIC COMPANY, a corporation By: _________ ,--__ _ (Authorized lndlvldual-Ullllty) Data Executed: FORM 10B•2769L (4/91) ltetn 112 Page 12 of 13 LOCATION MAP Exhibit 2 • / VICINITV'MAP .' · PROJECT NAME Carlsbad High School Valley Middle School Magnolia Elementary School RULE 20A UNDERGROUND CONVERSION Created By: Sa e~it6}4, 2~R0022 F:\ProJecls\FromLaurenFelfell\SlaffReportV.oca//onMap\J.ocallonMepExhlb//2,mKdltem #2 ' S.~~UNTY VISTA ~ SAN RCOS EXHIBIT 2 Page 13 of 13 To the m~mbers of the: ... JIT)' COUNCIL Date~CAL CC_.!::'.. CM ...JL ACM ..L DCM (3) _ July 21, 2022 ATTACHMENT B Council Memorandum To: Honorable Mayor Hall and Members of the City Council From: Paz Gomez, Deputy City Manager, Public Works Via: Geoff Patnoe, Assistant City Manager (fp fcityof Carlsbad Memo ID #2022085 Re: Valley Street and Magnolia Avenue Complete Street Improvements Project Update (District 1) This memorandum provides an update on the Vall1;iy Street and Magnolia Avenue Complete Street Improvements Project, Capital Improvement Program (CIP), Project Nos. 6019 and 3904 (Project). Background The Council Memorandum dated Jan.21, 2021 (Attachment A), provided background Information on the Project. In 2015, Underground Utility District No. 20 was formed by City Council Resolution No. ~015-280 pursuant to Chapter 11.08 of the Carlsbad Municipal Code. This district was formed to address converting overhead utilities to an underground system in the area. Extensive public outreach efforts on the Project were conducted in 2017, 2018 and 2020. Staff received publ1c feedback requesting additional parking on Valley Street and Increased driveway accesslblllty and visibility. Preliminary designs were presented to the Traffic and Mobility Commission on Dec. 7, 2020. Discussion The Project Is In the engineering design phase to provide complete street Improvements within the city right-of-way along both sides of Valley Street from Chestnut Avenue to Magnolia Avenue. The Project will also improve the north side of Magnolia Avenue from Valley Street to approximately SOD feet east of the Intersection. The Improvements wilt provide sidewalk, curb and gutter, pedestrian curb ramps, Improved conditions for bicycllsts and additional llghtlng In the area. In addition to these typical street lmprovements1 "green street" or low Impact development design will also be Incorporated. This includes drainage features that use vegetation and s911 to filter and treat storm water before entering the storm drain system where possible, The Project will also replace an ·old potable water main and related services In Valley Street, In coordination with the Carlsbad Municipal Water District. Public Works Branch Transportation Department 1635 Faraday Avenue I Carlsbad, CA 92008 I 442-339-2730 t i ' I I Council Memo-Valley St and Magnolia Ave Complete Street Improvements Upgate (District 1) July 21, 2022 Page 2 Staff continue to design the Project and soliclt feedback frorn the community. Preliminary designs were presented to the Traffic and Mobility Commission on Dec. 7, 2020. Based on commissioners' feedback, staff are updating the design and will provide additional outreach to nearby property owners regarding this design before staff finalize the design and contract documents. Utility Undergroundlng The Project is being delivered in conjunction with the utility undergrounding effort to convert overhead utilities to an und_erground system. This effort will also include the relocation of a San Diego Gas & Electric (SDG&E) gas main and service laterals under~eath Magnolia Avenue. . . Staff are actively coordinating with SDG&E, AT&T and Charter Communications on the utility undergrounding project. Staff have also Informed nearby schools of this undergrounding effort and schedule and have received feedback on potential school scheduling concerns. SDG&E will perform construction of the utility undergrounding and gas mainline relocation. Staff will continue to conduct monthly coordination meetings with SDG&E and communication companies to finalize design and approvals for the construction phase. Staff will also coordinate with property owners within the undergrounding boundary to secure a Permit to Enter, or Right of Entry Agreement. Once the Permits to Enter are signed, SDG&E and their contractors will be authorized to perform work on private property to underground their system. Construction of the SDG&E undergroundlng and gas mainline relocation Is estimated to start in summer 2023. Construction of the Valley Street and Magnolia Avenue Complete Street Improvements Project must wait until the undergrounding is complete. NeKt Steps To align construction tlmelines for the Project, SDG&E must first complete construction of the undergrounding of ovel'head utilities and gas mainline relocation in the Project area. Staff anticipate undergroundlng construction will begin in summer 2023 in coordination with nearby schools. City and SDG&E staff will continue to coordinate with the Carlsbad Unified School District and keep them apprised of the proposed construction improvements and schedule. Staff will update the engineering design of the Project and seek public input later this fall. A .critical part of the Project Is to progress to final design to provide to SDG&E and the other utility companies. SDG&E will use the city's design to finalize the utility undergroundlng design. This will help reduce the risk of conflicts between the undergroundlng and complete street elements. Council Memo -Valley St and Magnolia Ave Complete Street lmpr:ovements Update (District 1) July 21, 2022 Page 3 After receiving feedback from the property owners within the Project area, staff will update the plans and associated technical documents. Once completed, staff expect to present the final design to the Traffic and Mobility Commission in mid-2025. Staff wlll then request approval of plans and sp.ecifications and authorization to advertise for construction bids from the City Council in late 2025. Consistent with the recent direction from the City Council, construction of the complete street Improvements Is anticipated to start in summer 2026 with completion targeted in 2027. Attachment: A. Council Memorandum dated Jan. 21, 2021 cc: Scott Chadwick, City Manager Celia Brewer, City Attorney Gary Barberio, Deputy City Manager, Community. Services Laura Rocha, Deputy City Manager, Administrative Services Mickey Williams, Police Chief Michael Calderwood, Fire Chief Cindie McMahon, Assistant City Attorney Robby Contreras, Assistimt City Attorney Tom Frank, Transportation Director/City Engineer David Graham, Chief Innovation Officer Kyle Lancaster, Parks & Recreation Director Zach l<orach, Finance Director Jeff Murphy, Community Development Director l<ristina Ray, Communication & Engagement Director Suzanne Smithson, Library & Cultural Arts Director Vicki Quiram, Utilities Director Dave Padilla, Utilities Engineering Manager Hosselri Ajideh, Engineering Manager John l<im, City Traffic Engineer Nathan Schmidt, Transportation Planning and Mobility Manager Scott Lyle, Senior Engineer Lauren Ferrell, Associate Engineer To the members of the: CITY COUNCIL Date 1/'l,/'-!CA±CCL CM ~ACM .JL.DCM-(3) .Jt:'.'.'... Jan. 21, 2021 ATTACHMENT A Council Memorandum To: From: Honorable Mayor Hall and Members of the City Council· Paz Gomez, Deputy City M,anager, Publis.WQrks Via: Geoff Patnoe, A~s!stant City Manager ((;d{! {cityof Carlsbad Memo ID #2021016 Re: Valley Street and Magnolia Avenue Complete Street tmproveme.,ts Project Update· (District i) Thi~ memorandum provides an update on the Valley Street and Magnolia Avenue Complete Street Improvements Project, Capital Improvement Program (CIP) Project Nos. 6019 and 3904 (Project). • Background In keeping with the Complete Streets Act of 2008 (Assembly Bill 1358) and the city's General • Plan Mobility Element, the Project provides complete street Improvements along botli sides of Valley Street from Chestnut Avenue to Magnolia Avenue and the north side of Magnolia Avenue from Valley Street to approximately 500 feet east of the intersection of Valley Street and Magnolia Avenue, as shown In Attachment A. Complete streets are designed and operated to enable safe access for all users so that pedestrians, blcycllsts, .motorists and transit riders of all ages and abilities can move safely along and across a complete street. The Project Is in a residential area near four schools {Carlsbad High School, Valley Middle School, Magnolia Elementary School and North County Academy) and Is well traveled by pedestrians, blcycllsts and motorists. Currently, large portions of the Project area have no sidewalks or dedicated bicycle paths so pedestrians and bicyclists must share the narrow street with motorists. • The Project goals are to: o Enhance mobility for all modes of travel o Create a b.alanced road that Is safe and attractive for pedestrians, bicycles and vehicles c, Increase sustafnabillty by Incorporating green street features· To meet these goals, the Project will make several improvements to the city's right-of-way lncluding: o Americans with Dlsabillties Act (ADA)-compllant pedestrian curb ramps and sidewalks on both sides of Valley Street from Chestnut Avenue to Magnolia Avenue and on the Public Works Branch Transportation Department 1635 Faraday Avenue I Carlsb~d, CA 92008 I 760-602-2730 t Council Memo -Val.ley Street and Magnolia Avenue Complete Street Project Update (District 1) Jan, 21, 2021 !>age 2 north side of Magnolia Avenue for approximately 500 feet east of the intersection with . Vall_ey Street o Separated bike paths on both sides of yalley Street in the Project area " Paved, parallel parlc!ng In the existing right-of-way, where feasible 0 High-visibility crosswalks in the Project area " Activated rapid rectangular flashing beacon lights at the intersection of Valley Street and Brady Circle o Eight new streetlights In the Project area to Increase night-time visibility & 27 new tree wells and sections of permeable concrete pavers Additionally; overhead utilities will be placed underground in the Project area, contingent upon funding availability and coordination with uttllty companies. In 2015, Underground Utlllty .District No. 20 was formed by City Council Resolution No. 2015-280 pursuant to chapter 11.08 of the Carlsbad Municipal Code. The formation of this Underground Utility District was necessary to utilize the California Publlc Utilities Commission's Rule 20A funds. However, based on the most recent cdst estimate from San Diego Gas & Electric (SDG&E), the city's Rule 20A funds are Inadequate to pay for the underground Ing of the overhead utilities. In addition to the roadway Improvements outlined above, the Carlsbad Municipal Wf)ter District plans to replace an old potable water main and services In Valley Street either as part of the Project or as a separate CIP project. Discussion . Preliminary designs have been completed for the Project, which were presented to the Traffic and Mobility Commission on Dec. 7, 2020. Some commissioners expressed concern regarding the separated bike. paths proposed on Valley Street. In response to this feedback, staff will develop an alternatives assessment to the separated bike paths and obtain public feedback. After receiving this public Input, staff will return to the Traffic and Moblllty Comroission for. additional feedback and to request support of staff's recommendation to Implement the final design approach, On the utility undergrounding Issue, and as discussed In the Council Memorandum dated Jan. 14, 2021, SDG&E's most recent cost estimate to underground the overhead utilities In the Project area Is approidmately $3.4 million, which significantly Increased from the previous estimate of $1.4 milllon. The city's current Rule 20A allocation bala11ce is approximately $1.2 million, and the city is expected to receive approximately $160,000 every year hereafter lri additional 20A allocation (the 2020 allocation was approximately $160,000 whereas the 20.19 allocation was approximately $80,000}. At this rate of allocation, It will take almost 14 more· years to receive enough Rule 20A funding from SDG&E to pay for the Valley Street and Magnolia Avenue Project unless another funding source is identified. 2 I I Council Memo -Valley Street and Magnolia Avenue Complete. Street Project Update (District 1) Jan.21,2021 Page 3 Nel<t steP,s Staff will develop an alternatives assessment to the separated bike paths and seek public Input early this year. After receiving pub Ile feedbacl<, staff will update the plan·s and associated technfcal documents, If necessary, to ensure the Project features remain aligned with community needs. $taff wlll then present the flnal design approach to the Traffic j3nd Mobility Commission, which is expected to be later this year. Adclitlonally, staff will look for ad~ltional funding sources for undergroundlng the overhead utllltles In the Project area as part of the upcoming fiscal year 2021-22 CIP Budget development process, Staff anticipates· coordinating with utility companies for undergroundlng overhead utilities through late 2021. Once public feedback on the design of the Project has been received and Traffic and Mobility Commission ·support has been obtalnecl, staff plans to finalize the Project plans c1nd specifications and obtalh the necessary permits In early 2022. Staff plans to return to the City Couticll In mld-2022 with a request to approve the plans and specifications ancl authorize advertisement for construction bids. After the bidding process Is completed, staff'willreturn to the City Council to request award of a construction contract In late 2022. Construction Is estimated to begin In early 2023, Attachment: A. Location Map cc: Scott Chadwick, City Manager Cella Brewer, City Attorney Gary Barberio, Deputy City Manager, CommunltY Services Laura Rocha, Deputy City Manager, Administrative Services Robby Contreras, Assistant City Atton,ey Tom Frank, Transportation Director Ryan Green, Finance Director l<rlstlna Ray, Communication & Engagement Director Vicic! Qulrami Utilities Director Dave Padllla1 Utilities Engineering Manager Hosseln Ajldeh, Engineering Manager John l<lm, City Traffic Engineer Nathan Schmidt, Transportation Planning and Mobility Manager Jonathan Schauble, Senior Engineer 3 f \ f I t ATTACHMENT A - LOCATION MAP · . -' NOT TO $CALE PROJECT NAME PROJECT . VALLEY STREET AND MAGNOLIA AVENUE JMPROVEMENTS N6~1~R ' I : . J. I . I I I I I ! I I I I ; I , . • I J I : I : I : I : r I I ATTACHMENT C ~ City of Carlsbad June 2, 2023 Dear Resident, Thank you for providing the information we requested for the project to convert overhead utility lines in your neighborhood to an underground system. As part of finalizing the project plans, San Diego Gas & Electric prepared an updated cost estimate, which was significantly higher than the original estimate. As a result, city staff have requested additional information so we can identify potential options for how the project can proceed. Unfortunately, this means SDG&E won't be able to start construction this summer as planned. What's next City staff expect to present options to the City Council later this year. If you'd like to be notified about this meeting, please sign up for our email list on the project page (see below). Street and sidewalk improvements The city Is continuing to work on the project to add sidewalks and other improvements to Valley Street, from Chestnut to Magnolia, and a portion of Magnolia Avenue. The next step will be to share proposed design options with you for feedback. This Is expected to be mid-2024. If you'd like more information about that project or to sign up for email notifications, please visit www.carlsbadca.gov/residents/pro jects. If you have additional questions, please feel free to contact me at lauren.ferrell@carlsbadca.gov or 442-339-2558. Thank you. Sincerely, ~H Lauren Ferrell, P.E. Associate Engineer Public Worlcs Branch Transportation Department 1635 Faraday Ave. I Carlsbad, CA 92008 I 442-339-2746 t June 2, 2023 Carlsbad Unified School District Magnolia Elementary School Valley Middle School Carlsbad High School (__ City of Carlsbad We're reaching out to provide an update on the project to convert overhead utility lines along a segment of Valley Stret and Magnolia Avenue to an underground system. As part of finalizing the project plans, San Diego Gas & Electric prepared an updated cost estimate, which was significantly higher than the original estimate. As a result, city staff have requested additional information so we can identify potential options for how the project can proceed. Unfortunately, this means SDG&E won't be able to start construction this summer as planned. What's next City staff expect to present options to the City Council later this year. If you'd like to be notified about this meeting, please sign up for our email list on the project page (see below). Street and sidewalk improvements The city is continuing to work on the project to add sidewalks and other improvements to Valley Street, from Chestnut to Magnolia, and a portion· of Magnolia Avenue. We expect to share proposed designs for Input in mid-2024. If you'd like more information about that project or to sign up for email notifications, please visit www.carlsbadca.gov/residents/pro jects . We appreciate your continued coordination to reduce construction impacts to the school as much as possible. If you have additional questions, please feel free to contact me at lauren.ferreli@carlsbadca.gov or 442-339-2558. Thank you. Sincerely, ~H Lauren Ferrell, P.E. Associate Engineer Public Works Branch Transportation Department 1635 Fara day Ave. I Carlsbad, CA 92008 I 442-339-2746 t June 2, 2023 North County Academy Ms. Evelia Medina Mr. Stephen Gotowala ~ City of Carlsbad We're reaching out to provide an update on the project to convert overhead utility lines along a segment of Valley Stret and Magnolia Avenue to an underground system. As part of finalizing the project plans, San Diego Gas & Electric prepared an updated cost estimate, which was significantly higher than the original estimate. As a result, city staff have requested additional information so we can identify potential options for how the project can proceed. Unfortunately, this means SDG&E won't be able to start construction this summer as planned. What's next City staff expect to present options to the City Council later this year. If you'd like to be notified about this meeting, please sign up for our email list on the project page (see below). Street and sidewalk improvements The city is continuing to work on the project to add sidewalks and other improvements to Valley Street, from Chestnut to Magnolia, and a portion of Magnolia Avenue. We expect to share proposed designs for Input In mid-2024. If you'd like more information about that project or to sign up for email notifications, please visit www.carlsbadca.gov/residents/projects. We appreciate your continued coordination to reduce construction impacts to the school as much as possible. If you have additional questions, please feel free to co.ntact me at lauren .ferrell@carlsbadca.gov or 442-339-2558. Thank you. Sincerely, I .1..d~ . ,-\;~ (J~1 Lauren Ferrell, P.E. Associate Engineer Public Worlcs Branch Transportation Department 1635 Faraday Ave, I Carlsbad, CA 92008 I 442-339-2746 t 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ATTACHMENT B RESOLUTION NO. 2015-280 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, DECLARING AND DESIGNATING A CERTAIN PART OF SAID CITY AS UNDERGROUND UTILITY DISTRICT NO, 20, PROJECT NO. 6019, AND MAKING ORDERS IN REGARD THERETO EXHIBIT I WHEREAS, on Oct. 6, 2015, the City Council of the City of Carlsbad adopted Resolution No. 2015-245 expressing its Intent to Initiate proceedings pursuant to Chapter 11.08 of the Carlsbad Municipal Code and calling a Public Hearing to determine whether or not the public health, safety or welfare requires the formation of an underground utility district In a portion of Carlsbad; and WHEREAS, pursuant to Resolution No, 2015-245, a Public Hearing was held on Nov. 17, 2015, at 6:00 p.m., in the Council Chambers in City Hall, Carlsbad, California, to ascertain whether the public health, safety or welfare requires the removal of poles, overhead wires and associated overhead structures and the underground installation of wires and facillties for supplying electric, communication or similar or associated service, within that certain area of the city described as follows: Valley Street between Chestnut Avenue and Magnolia Avenue and a portion of Magnolia Avenue approximately 500 feet east of Valley Street as shown on that certain map entitled "Underground Utility District No. 20" on file in the Office of City Clerk and incorporated by reference herein; and WHEREAS, said hearing was also held to determine whether or not the city should continue proceedings to create and Implement an underground utility district to accomplish said removal and installation; and 2 3 4 5 6 7 8 9 10 t 1 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 WHEREAS, notice of said hearing, In the manner and for the time required by law, was given to all affected utility companies and to property owners as shown on the last equalized assessment rollj and WHEREAS, said hearing has been duly and regularly held, and all persons interested have been given an opportunity to be heard. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. 2. That the above recitations are true and correct. That the City Council of the City of Carlsbad, Callfornla, hereby finds and determines that the public health, safety and welfare require the removal of poles, overhead wires and associated structures, and the underground installation of wires and facllltles for supplying electric, communication or similar or associated service In the above-described area. 3. That said area ls hereby declared to be an underground utility district, and Is designated as Underground Utility District No 20, Project No. 6019. 4. That the City Council finds that said District is In the public interest for the following reasons: 5. A. B. It will eliminate an unusually heavy concentration of overhead utility facilities. The streets In the District are extensively used by the general publtc and carry a heavy volume of pedestrian or vehicular traffic. C, The streets adjoin and pass through a civic or public recreation area or an area of unusual scenic interest to the general public. That the City Clerk is hereby Instructed to notify all affected utllltles and all persons owning real property within Underground Utility District no. 20, Project No. 6019 of the adoption of this resolution within 10 days after the date of such adoption. Such 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 notification shall be made my mailing a copy of this resolution, together with a copy of Chapter 11.08 of the Carlsbad Municipal Code, to affected property owners as shown on the last equalized assessment roll and to the affected utilities. 6. That the City Council does hereby order said removal and Installation within said District. The City Council will fix by subsequent resolution the time within which such removal and installation shall be accomplished. 7. That the full reimbursement shall be deducted from 20A conversion funds and utilized as service conversion to residences and businesses for furnishing all labor, materials, equipment and incidentals to construct the underground utility service trench to private residences and businesses within the project limits that are to remain intact. No expense shall be incurred by the property owner unless an increase in panel size Is requested by them. 8. That the City Council hereby waives permit fees associated with property conversions. Ill Ill Ill Ill Ill Ill Ill Ill Ill Ill Ill Ill 2 3 4 5 6 7 8 9 10 11 12 13 14 15 l6 17 18 19 20 21 22 23 24 25 26 27 28 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 17th day of November 2015, by the following vote to wit: AVES: Council Members Hall, Blackburn, Packard, Wood, Schumacher NOES: None. ABSENT: None, MA TT HALL, Mayor ATTEST: --- (SEAL)