HomeMy WebLinkAbout2024-04-16; City Council; ; Agreement with San Diego Gas & Electric to Move Aboveground Utility Lines on Valley Street and Magnolia Avenue Underground and Authorization of Additional AppropriationsCA Review GH
Meeting Date: April 16, 2024
To: Mayor and City Council
From: Scott Chadwick, City Manager
Staff Contact: Eric Zielke, Senior Engineer
eric.zielke@carlsbadca.gov, 442-339-2230
Hossein Ajideh, 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 and
Authorization of Additional Appropriations
District: 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 $5,399,104 and authorizing additional
appropriations in the amount of $251,000 for the Valley and Magnolia Complete Streets
Project, Capital Improvement Program Project No. 6019.
Executive Summary
On Jan. 24, 2023, the City Council authorized the City Manager execute an agreement under
which San Diego Gas & Electric (SDGE) would move electrical and telecommunication lines from
overhead to underground on parts of Valley Street, Magnolia Avenue and Brady Circle for an
estimated amount of $2,844,592. (Resolution No. 2023-032)
This utility undergrounding work is planned to be completed as part of the Valley and Magnolia
Complete Streets Project, Capital Improvement Program Project No. 6019. Along with removing
the utility poles, this project will provide new sidewalks and curb extensions for these street
segments.
SDGE has since provided the city with an updated estimate of the undergrounding construction
costs that is significantly higher than the original estimate provided when the City Council
approved the work. As detailed below, this will increase the total cost of the project to an
estimated $7,277,194.
SDGE is providing $2,956,653 in credits on the project, and the city received a credit of over
$1.7 million from a California Public Utilities Commission undergrounding program will also
cover part of the project costs.
April 16, 2024 Item #5 Page 1 of 15
The total available funding the city has already set aside for this project is $4,119,351, so
additional funding in the amount of $251,000 from the Public Facilities Fees Fund will need to
be appropriated to cover the rest of the utility undergrounding costs.
The City Council’s approval for this project is required because the proposed agreement with
SDGE is in an amount not to exceed $5,399,104, and Carlsbad Municipal Code Section
3.28.060(D)(5) 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 authorize the City Manager to execute the agreement
with SDGE and authorize additional appropriations in the amount of $251,000 for the Valley
and Magnolia Complete Streets Project, Capital Improvement Program Project No. 6019.
Explanation & Analysis
Background
The Rule 20A program, established in 1983, provided that certain funds would be set aside each
year by investor-owned utilities such as SDGE to pay for the undergrounding of existing utility
lines.
In 1988, the City Council established Council Policy No. 41 on undergrounding overhead
utilities. The policy provides the city’s guidelines for selecting and prioritizing underground
projects, consistent with Electric Tariff Rule 201.
In 2015, the City Council formed Underground Utility District No. 20, on Valley Street, between
Chestnut and Magnolia avenues, Resolution No. 2015-280, to move overhead utility lines to an
underground system, in accordance with CMC Chapter 11.08 – Underground Utility Districts.
The boundaries of this district, detailed in the location map provided as Exhibit 2, cover:
• Valley Street between Chestnut and Magnolia Avenues
• 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
Complete streets
Moving the existing overhead utilities underground and removing the utility poles supports the
Valley and Magnolia Complete Streets Project, Capital Improvement Program 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. This
project will make street improvements within the city right-of-way along both sides of Valley
Street from Chestnut to Magnolia Avenues, and on the north side of Magnolia Avenue from
Valley Street to approximately 500 feet east of the intersection.
1 The California Public Utilities Commission adopted and oversees an Overhead Conversion Program known as
Electric Tariff Rule 20. Traditionally, the program has allowed cities to identify areas for undergrounding and depending on the project, the investor-owned utility (here SDG&E) 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. As of Dec. 31, 2022, the Rule 20A program has been discontinued and no
additional Rule 20A credit is available.
April 16, 2024 Item #5 Page 2 of 15
These improvements will provide:
• New Americans with Disabilities Act (ADA)-compliant sidewalks
• Curbs and gutters
• ADA-compliant pedestrian curb ramps
• Improved conditions for bicyclists and pedestrians
• Additional lighting
Process of undergrounding utilities
The utility companies that convey electrical and telecommunication lines along these segments,
and who are involved in this project, are SDGE, AT&T and Spectrum Charter Communications.
The undergrounding work to be carried out by SDGE will consist of:
• Digging a trench about five feet deep and 2.5 feet wide along the public right-of-way
• Installing conduit, cable and substructures, along with aboveground facilities, such as
electric transformer boxes and telecommunication equipment pedestal, which are
plastic cylinders that house the equipment
• 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 with surfaces restored to pre-existing conditions
when the work is completed.
Three properties will need to upgrade their electric service panel; the property owners have
been notified that the city will reimburse the three property owners for the actual cost of the
necessary upgrades consistent with Resolution No. 2015-280, which provides that “no expense
shall be incurred by the property owner unless an increase in panel size is requested by them.”
In addition, some properties may need to have conduit and a junction box installed on their
exteriors. SDGE will make that determination and do the necessary installations.
April 16, 2024 Item #5 Page 3 of 15
Change in costs
• After SDGE advertised the undergrounding work for construction bids in spring 2023, it
provided the city with an updated cost estimate of $5,125,557, significantly higher than
the original estimate.
• SDGE recently re-advertised the undergrounding work for construction bids and has
provided the city with a new cost estimate of $5,399,104, not including construction
contingency and construction management and inspection costs.
• The total construction cost is estimated to be $7,277,194, which includes:
o A construction contingency of $734,426
o A tax-related charge collected by SDGE (the income tax component of
contributions and advances) in the amount of $762,451
o Staff support and administrative costs of $131,213
o Construction management and inspection costs of $250,000
Fiscal Analysis
This project is to be partially funded by the California Public Utilities Commission Rule 20A
funding program, which allowed funds to be set aside each year by SDGE to pay for
undergrounding existing overhead electric facilities. The city has accumulated a credit of
$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 will receive no additional revenue from the program. Because Underground
Utility 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.
In addition to the Rule 20A work credit of $1,729,513, SDGE will provide the city with a pole
relocation credit of $1,105,794 and a Joint Trench Offer credit of $121,346.
Total construction costs are estimated to be $7,277,194, which includes a tax-related charge
collected by SDGE, construction contingency, staff support, and construction management and
inspection costs. These costs are more than the available funds or credits in the city’s Rule 20A
work credit allocation fund and the credits provided by SDGE, so the remaining balance of
$4,320,541 is to be paid by the funds set aside for the Valley and Magnolia Complete Streets
Project, Capital Improvement Program Project No. 6019.
Because the total available balance for that project is $4,119,351, additional funding in the
amount of $251,000 from the Public Facilities Fees Fund will need to be appropriated to cover
the rest of the utility undergrounding costs.
April 16, 2024 Item #5 Page 4 of 15
The available funds and estimated construction costs for the undergrounding work are shown
in the table below:
Summary of costs and funding
Valley and Magnolia Complete Streets Project
Capital Improvement Program Project No. 6019
Total appropriation to date $4,807,206
Total expenditures and encumbrances to date -$687,855
Restricted funding (Water Replacement Fund) -$49,800
Total available balance $4,069,551
Total estimated SDGE undergrounding costs
Construction contract (estimated) -$5,399,104
Construction contingency (estimated) -$734,426
ITCCA tax (estimated) -$762,451
Staff support and administrative costs (estimated) -$131,213
Construction management, inspection and testing (estimated) -$250,000
Total estimated construction costs -$7,277,194
Costs paid by Rule 20A work credit allocation balance $1,729,513
Pole relocation credit by SDGE $1,105,794
Joint Trench Offer credit by SDGE $121,346
Total credits provided by SDGE $2,956,653
Remaining balance to be paid by the city from Capital
Improvement Program Project No. 6019 -$4,320,541
Additional appropriation needed $250,990
Additional appropriation requested (rounded) $251,000
SDGE’s estimated cost is approximate, and the actual costs incurred by SDGE will be computed
upon completion of the work. The city will be responsible for paying SDGE’s actual costs.
CMC Sections 3.28.040(C)(5) and 3.28.090(B) 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 $734,426 for this project.
Staff plan to request additional funding for the street improvement portion of Capital
Improvement Program Project No. 6019 in the fiscal year 2024-25 preliminary budget. The
street improvement portion of Capital Improvement Program Project No. 6019 is expected to
go to construction in summer 2025.
April 16, 2024 Item #5 Page 5 of 15
Community Engagement
City staff have coordinated with the residents and adjacent schools on the undergrounding
project and upcoming construction activities. Staff sent mailers with fact sheets to inform them
of the project, in keeping with the procedures detailed in CMC Section 11.08.070 – Notice to
property owners and utility companies. In addition, the city, along with SDGE, has held several
coordination meetings with representatives of the Carlsbad Unified School District and North
County Academy, which is the school at the corner of Valley Street and Magnolia Avenue.
Next Steps
Upon receiving the City Council’s authorization, the City Manager will execute the agreement
with SDGE to perform the utility aerial-to-underground conversion. SDGE plans to complete its
permitting process and award a construction contract in spring 2024.
SDGE anticipates that construction will begin in June 2024 upon completion of the school year
to minimize traffic impacts associated with construction. SDGE is estimating their trench and
conduit construction will be completed by mid-August 2024 before the fall school year starts.
Additional construction activities will occur after August 2024, but work will be minor in nature
with minimal impacts to the school.
Environmental Evaluation
The City Planner, through the process outlined in CMC Section 19.04.070, has determined this
project is categorically exempt from environmental review under California Environmental
Quality Act, or CEQA, Guidelines Section 15302(d), which exempts projects for the conversion
of overhead electric utility distribution system facilities to underground including connection to
existing overhead electric utility distribution lines where the surface is restored to the condition
existing prior to the undergrounding. The City Planner’s determination was published on April
5, 2024, and no appeal to that determination was filed.
Exhibits
1.City Council resolution
2. Location map
April 16, 2024 Item #5 Page 6 of 15
RESOLUTION NO. 2024-074
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 FOR AN ESTIMATED AMOUNT OF
$5,399,104 AND AUTHORIZING ADDITIONAL APPROPRIATIONS IN THE
AMOUNT OF $251,000 FOR THE VALLEY AND MAGNOLIA COMPLETE
STREETS PROJECT, CAPITAL IMPROVEMENT PROGRAM PROJECT NO. 6019
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 investor-owned utilities such as
San Diego Gas & Electric, or SDGE, to pay for undergrounding of existing utility lines; and
WHEREAS, in 1988, Council Policy No. 41 was established for 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, 2015, the City Council adopted Resolution No. 2015-280, creating
Underground Utility District No. 20 pursuant to Chapter 11.08 ofthe Carlsbad Municipal Code, or CMC,
associated with the Valley and Magnolia Complete Streets Project, Capital Improvement Program, or
CIP, Project No. 6019; and
WHEREAS, relevant portions of the project include Valley Street between Chestnut and
Magnolia Avenues, a portion of Magnolia Avenue approximately 500 feet east and approximately 110
feet west of Valley Street, and approximately 150 feet of Brady Circle west of its intersection with Valley
Street; and
WHEREAS, SDGE, 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, California, has determined that 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 are in the best interest of the city; and
WHEREAS, undergrounding of overhead utilities for this project is consistent with Council Policy
No. 41; and
Exhibit 1
I
Exhibit 1
April 16, 2024 Item #5 Page 7 of 15
WHEREAS, SDGE has provided the city with an estimated cost to design, construct, place
conduit, and 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, SDGE's construction cost for the undergrounding effort is estimated to be
$5,399,104, which does not include construction contingency and construction management and
inspection costs; and
WHEREAS, the total construction cost is estimated to be $7,277,194, which includes a
construction contingency amount of $734,426, a charge collected by SDGE for Income Tax Component
of Contributions and Advances, or ITCCA, in the amount of $762,451, staff support and administrative
costs of $131,213, and construction management and inspection costs of $250,000; and
WHEREAS, SDGE's estimated cost is only approximate, and that the actual costs incurred by
SDGE will be computed upon completion of the work, for which the city is responsible for payment of
SDGE's actual costs; and
WHEREAS, SDGE managing this construction project eliminates the need for a city-managed
project design, solicitation and capital construction effort that would: (i) exceed SDGE'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, for which the city's
current Rule 20A work credit allocation balance is $1,729,513; and
WHEREAS, SDGE will provide the city with a pole relocation credit of $1,105,794 and a Joint
Trench Offer credit of $121,346; and
WHEREAS, the Valley and Magnolia Complete Streets Project, CIP Project No. 6019, has a
current available balance of $4,069,551 for this project; and
WHEREAS, staff request the City Council authorize additional appropriations in the amount of
$251,000 from the Public Facilities Fees Fund to CIP Project No. 6019; and
WHEREAS, CMC 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 $734,426 for this project; and
April 16, 2024 Item #5 Page 8 of 15
WHEREAS, the City Planner has determined that the project is exempt from the California
Environmental Quality Act, or CEQA, 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.
2.
That the above recitations are true and correct.
That the City Council authorizes the City Manager to execute an agreement with SDGE
to perform Rule 20A aerial-to-underground conversion of overhead utilities along Valley
Street and Magnolia Avenue, attached hereto as Attachment A.
3.That the City Manager or designee is authorized to appropriate an additional $251,000
to the Valley and Magnolia Complete Streets Project, CIP Project No. 6019, from the
Public Facilities Fees Fund.
4.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
$734,426 for this project.
April 16, 2024 Item #5 Page 9 of 15
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of
Carlsbad on the 16th day of April, 2024, by the following vote, to wit:
AYES:
NAYS:
ABSTAIN:
ABSENT:
BLACKBURN, BHAT-PATEL, ACOSTA, BURKHOLDER, LUNA.
NONE.
NONE.
NONE.
KEITH BLACKBURN, Mayor
SHERRY FREISINGER, City Clerk
(SEAL)
April 16, 2024 Item #5 Page 10 of 15
SDGE ••
ATTACHMENT A
Submitted to Applicant by: Ilario Romano
SDG&E Work Order(s): T&C-300000449356 C&C-300000338091 CP-300000338009
AGREEMENT FOR REPLACEMENT OF OVERHEAD WITH UNDERGROUND FACILITIES
OH RFS-300000338008
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 ("Project'') located atcertain 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; and
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 anyrequired rights of way for the Project, shall remove its existing overhead electric power facilitiesserving Applicants and shall replace these facilities with underground facilities, in accordance withits Rule 20.A for Replacement of Overhead with Underground Facilities as filed with the CaliforniaPublic Utilities Commission.
2.All work performed by the Utility and Applicants pursuant to this Agreement shall be in conformity withthe General Conditions and the Specifications attached hereto and by this reference made a parthereof. After construction of the Project, Utility shall furnish underground electric service to thepremises shown on Specifications and, upon completion of the work specified herein, Utility shall notfurnish overhead electric service to any of such premises.
3.This Agreement shall become effective only upon compliance with all of the fol.lowing conditions:
a)All Applicants shall execute this Agreement and shall perform all of the conditions hereincontained.
b)All Applicants shall execute a companion agreement with each company, municipality, oragency that is a joint user with Utility of poles, or maintains other poles, within the area fromwhich Utility's pole will be removed pursuant to Section 1, for providing communicationservice, traffic signals, police or fire alarm boxes, or street or safety lighting supplied byoverhead wiring. Such agreement or agreements will provide for such service to bediscontinued or converted and maintained through underground circuits or other appropriateand lawful means, so that all of said poles which are no longer necessary for their existingpurpose 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 inthe General Conditions, furnish and install the material, and facilities and perform the workindicated below by a check mark. The material, facilities and work listed below which are notindicated with a check mark shall be furnished, installed and performed by Utility atApplicants' expense.
FORM 106-2759L (4/91)
Exhibit 1
Exhibit 1
I
April 16, 2024 Item #5 Page 11 of 15
□ □ □
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 thisAgreement, 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 existingfacilities on his property so as to receive underground electric service at the points specifiedon the Specifications. The Applicants' work shall be in accord with Utility's Rule on ServiceConnections filed with the California Public Utilities Commission effective as of the date ofthis Agreement, and in accord with the Contract Documents. Underground electric servicewill not be supplied until all affected premises are equipped to receive electric service inaccordance with said plan and specifications.
4.The entire undergrounding work is estimated to cost $6,895,981.00. The Utility expects to receivepayment from the associated Communications Infrastructure Providers (CIPS) in the amount of$121,346.00 for participation in the agreed upon joint trench. The Utility has included this value as acredit against the total cost of this project ("JTO Value"). The Utility has issued a credit for the valueof $1,105,794.00 against the total cost of this project ("Relocation Credit") for the estimated value ofUtility's relocation work had the Applicant not opted to proceed with undergrounding of certainfacilities under Rule 20A. The remaining estimated cost of the undergrounding work, less the JTOValue and the Relocation Credit is $5,668,841.00.
Applicant's current Rule 20A work credit balance is $1,729,513.00. Applicant(s) will utilize itsavailable 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 andmailed to the address listed on the attached Cost Remittance.
Receipt by Utility is acknowledged from Applicant(s) in the amount of $3,939,328.00, which is anamount equal to the estimated cost of the Utility's conversion work, less the JTO value, less theRelocation Credit, less the City's available Rule 20A Work Credits, pltis the applicable ITCCArevenue tax which is billed at 24% of the collectible total, in accordance with its Filed Rule onReplacement of Overhead with Underground Facilities.
The conversion work will be tracked and billed on an actual cost basis, meaning that all costs will bereconciled at completion of the work and SDG&E will bill or refund to Applicant any differenceslarger than $100.ln the event any additions, rearrangements, or changes to the electric wiring arerequired 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 theirexpense.
5.All wires, cables, conductors, conduits, ducts, connectors and appurtenances installed by Utility, or itsagents, on the premises of Applicants, or elsewhere, and all facilities granted to Utjlity by Applicants,
shall become and remain the property of Utility notwithstanding any payment n:iade under thisAgreement. Such facilities will be maintained and operated by Utility in accordance with its Rules-forthe 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 itpursuant 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 electricfacilities nor to furnish underground electric service to any of the premises shown on theSpecifications 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 theoccurrence of the conditions specified in section 7. and subsection b) of this Section. Thecommencement of any such work by Utility under the provisions of this subsection shall notconstitute 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.
2 FORM 106-2759L (4/91)
April 16, 2024 Item #5 Page 12 of 15
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.
6.Once Applicant has started to perform the work required by the Contract Documents, Applicants agreeto exercise reasonable diligence in pursuing such work to completion within one year after the effectivedate of the Contract Documents. If such work has not been completed within two years after the
effective date of the Contract Documents, Utility shall have the right, upon giving written notice toApplicants, to cancel and terminate the Contract Documents. Utility shall return to Applicants, anamount 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 suchcancellation and termination in connection with work done in furtherance of Applicants' project, plus theactual cost of removing any of the Utility installed facilities which Utility desires to salvage, minus thesalvage value of such facilities. Upon exercise of this right to cancel and terminate, and upon paymentto Applicants, all of Utility's obligations under the Contract Documents shall cease.
7.This Agreement shall at all times be subject to such changes or modifications by the California PublicUtility Commission as said Commission may, from tim� to time, direct in the exercise of its jurisdiction.
8.All terms and situations heretofore made and agreed tci by the parties in relation to said electric linereplacement are set forth in this Agreement and no representation of any agent or employees shall bebinding upon Utility except as expressed herein. Appendix A attached hereto is solely for use by Utilityand nothing contained therein shall in any way alter or vary any term, �ondition or stipulafion containedin this Agreement.
9.If Applicant is a corporation, partnership, join! venture or a group of individuals, the subscriber heretorepresents that he has the authority to bind said corporation, partners, joint venture or individuals asthe case may be. Each Applicant signing this Agreement agrees that be shall be jointly and severallyliable under the terms of1his Agreement with every o.ther a·pplicant signing the Agreement.
10.All of the terms and conditions ofttiis Agreement sh ail be binding upon and snail insure to the benefit ofthe parties hereto, their heirs, administrators, executors, personal representatives, trustees,successors and assigns.
11.The Contract Documents shall become effective only upon the date signed by the authorizedrepresentative of Utility.
3 FORM 106-2759L (4/91)
Exhibit 1
I
April 16, 2024 Item #5 Page 13 of 15
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 duly authorized corporate officers, as the case may be.
Name: --=;:;;:�c'--'·±t""------"U\�D.'-'-',d ........ w�i (_\-'--_.___ __ (Please Print or Type)
Title: �c��4a____._______. ____ H�t\J/\�Q��----=--------
Date: _(��-�-���4�----Address:
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SAN DIEGO GAS & ELECTRIC COMPANY, a corporation
By:_M_W------+-✓JUM_�--(Authorized ln�Utility)
Date Executed: March 28, 2024
FORM 106-2759L (4/91)
April 16, 2024 Item #5 Page 14 of 15
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PROJECT NAME EXHIBIT2RULE 20A UNDERGROUND CONVERSION
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Created By: Sara Jadhav 12/13/2022 F:\Projects\FromLaurenFerrell\StaffReport\LocationMap\LocationMapExhibit2.mxd
VICINITY MAP
LOCATION MAP
PROJECT SITE
North County Academy
Exhibit 2
April 16, 2024 Item #5 Page 15 of 15