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HomeMy WebLinkAbout2023-01-24; City Council; Resolution 2023-032RESOLUTION 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 STREET AND MAGNOLIA AVENUE WHEREAS, in 1983, the California Public Utilities Commission instituted the Rule 20A funding program, which 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 undergrounding projects; and WHEREAS, on Nov. 17, 2p15, 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 of overhead utilities for this project is consistent with Council Policy 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 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 undergrounding effort is estimated to be $2,844,592, which does not include construction 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 undergrounding 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)(S) 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 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 designee, 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.That the City Council authorizes 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. 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: AYES: NAYS: ABSTAIN: ABSENT: Blackburn, Bhat-Patel, Acosta, Burkholder. None. None. None. KEITH BLACKBURN, Mayor J.-rr----SHERRY FREISINGER, City Clerk U {SEAL) 1 FORM 106-2759L (4/91) - Submitted to Applicant by: SDG&E Work Order(s): AGREEMENT FOR REPLACEMENT OF OVERHEAD WITH UNDERGROUND FACILITIES 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 “Applicant(s)”. WITNESSETH: WHEREAS, Applicant(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 facilities, and in consideration of the desirability and value which said underground facilities 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, Utility, upon obtaining satisfactory easements for any required rights of way, shall remove its existing overhead electric power facilities serving Applicants and shall replace these facilities with underground facilities, in accordance with its Rule 20.A for Replacement of Overhead with Underground Facilities as filed with the California Public Utilities Commission. 2.All work performed by the Utility and Applicants 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. Utility shall furnish underground electric service to the premises shown on Specifications and, upon completion of the work specified herein, Utility shall not furnish overhead electric service to any of such premises. 3.This Agreement shall become effective only upon compliance with all of the following conditions: a)All Applicants 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 is 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 signals, police or fire alarm boxes, or street or safety lighting supplied by overhead wiring. Such agreement or agreements will 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 Utility has removed its poles. c)Applicants will, at their expense and in conformity with the Contract Documents as defined in the General Conditions, furnish and install the material, and facilities and perform the work indicated below by a check mark. The material, facilities and work listed below which are not indicated with a check mark shall be furnished, installed and performed by Utility at Applicants’ expense. Attachment A sos/' .. .,.,/E A ~ Sempra Energy u1,111y· 2 FORM 106-2759L (4/91) Excavation, backfill and compaction Conduits Concrete substructures d)Utility shall notify Applicants, in writing, of final acceptance of the work specified herein. Applicants hereby grant to Utility all facilities installed by Applicants pursuant to this Agreement, said grant to be effective upon receipt of Utility’s written final acceptance. e)Each Applicant shall, at his expense, promptly provide any necessary changes to the existing facilities 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 filed 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 in accordance with said plan and specifications. 4.The entire undergrounding work is estimated to cost $2,844,592 (which equates to $3,413,510 with 20% construction contingency). The city’s current Rule 20A work credit balance is $1,729,513. Applicant(s) will utilize its available Rule 20A Work Credits to fund this work, and the remainder of the costs associated with the Project will be paid for by Applicant(s) as follows: payment via check made out to SDG&E and mailed to the address listed on the attached Cost Remittance. Receipt is acknowledged from Applicant(s) of $1,683,997, which is an amount equal to the estimated cost of the Utility's conversion work (including 20% contingency), less the City's available Rule 20A Work Credits, in accordance with its Filed Rule on Replacement of Overhead with Underground Facilities. Said amount includes any engineering fee or fees that have been paid to Utility in contemplation of the work provided in Section 2. The conversion work will be tracked 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 work pursuant to Section 3.e) above, Applicants shall cause said additions, rearrangements, and changes to 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 facilities granted to Utility by Applicants, shall become and remain the property of Utility notwithstanding any payment made under this Agreement. Such facilities will be maintained and operated by Utility in accordance with its Rules for the Sale of Electric Energy on file with the California Public Utilities Commission. a)Utility shall be under no obligation to perform and complete the work undertaken 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 to 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 undertake to perform the work to be performed by it 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, fail or refuse to comply with any of the conditions hereof or to perform all work required under the contracts executed pursuant to Paragraph 3.b) of this Agreement, Utility shall have the right to make such changes and to impose such further conditions upon the Applicants as may be necessary to protect its rights under any existing agreement for 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. □ □ □ 3 FORM 106-2759L (4/91) 7.Once Applicant has started to perform the work required by the Contract Documents, Applicants agree to exercise reasonable diligence 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, Utility 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 actual cost (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 facilities which Utility desires to salvage, minus the salvage value of such facilities. 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 to 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 Utility 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. IN WITNESS WHEREOF, the parties hereto have individually executed, or have caused this Agreement to be executed for and on behalf of each, by and through their responsible agents, partners, or authorized corporate officers, as the case may be. APPLIC Title: _0=--"\:....;_�--+--__._1"\__.__M'\--L...l,,;..../\__,¥'1-=---­ Date: _......aZfu.=-ai...=--..J.= ..... �-==-a.------ Telephone: APPROVED AS TO FORM Cindie K. McMahon. City Attomer lstant/Deoutv Attomey City ol Carlsbad. California SAN DIEGO GAS & ELECTRIC COMPANY, a corporation By: _____________ _ (Authorized Individual-Utility) Date Executed: FORM 106-2759L (4/91)