HomeMy WebLinkAbout2024-08-15; Valley Magnolia Complete Streets - Future Improvement Agreements (District 1); Gomez, PazCouncil 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 t o 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 St reets -Future Im provement 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 Direct or
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:
CllY' COUNCIL
Dat:8l2~etf-c:A v cc ✓
CM AC ~DCM (3) ✓
Council Memor andum
February 29, 2024
To:
From:
Honorable Mayor Blackburn and Members of the City Council
Paz Gomez, Deputy City Manager, Public Works
Via: Geoff Patnoe, Acting City Manager @f_
{city of
Carlsbad
Memo ID# 202401 7
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 ut ilities 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 Policy 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 Utilities 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 undergrounding 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.
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 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 of the 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.
• 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.
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 undergrounding 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 compl~te 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 (Dist rict 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 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
Public Works Branch
Transportation Department
1635 Faraday Avenue I Carlsbad, CA 92008 I 442-339-2730 t
Council Memo -Valley St. and Magnolia Ave. SDGE Utility Undergrounding Update (District 1)
June 8, 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 estimate exceeds the
amount previously approved by t he City Council; therefore, the undergrounding work cannot be
completed over the summer months this year.
Staff have communicated the delay with property owners located in t he underground district
boundary and adjacent schools, Carlsbad High School, Valley Middle School, Magnolia
Element~ry School and North County Academy. Samples of the 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 appropriat ions, 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 schools
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 Korach, Finance Director
Jeff Murphy, Community Development Director
Vicki Quiram, Utilities Director
Kristina Ray, Communication & Engagement Director
Gina Herrera, Deputy City Attorney
Hossein Ajideh, Engineering Manager
John Kim, City Traffic Engineer
Nathan Schmidt, Transportation Planning and Mobility Manager
Eric Lardy, City Planner
Eric Zielke, Senior Engineer
Lauren Ferrell, Associate Engineer
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):
• 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
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. This 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 t he north side of Magnolia Avenue from Valley Street to
approximately 500 feet east of the int ersection.
These improvements will provide:
• New sidewalks, curbs and gutters
• Pedestrian curb ramps
• Improved conditions for bicyclists and pedestrians
• Additional lighting
Project details
The undergrounding work t o be carried out by SDG&E 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
electric transformer boxes and telecommunication equipment pedestals1
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
• Relocating an SDG&E gas main line and service lines beneath Magnolia Avenue, east of
Valley Street
Individual custome r 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.
Jan.24,2023 Item #2 Page 2 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((}(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, for this project, is $568,918.
Community Engagement
City staff have coordinated with the residents and adjacent schools about the undergrounding
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
utility 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 facilities consistent with Council Policy No. 41
• Eliminates the need for a city-managed project design, solicitation 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
• None identified
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 undergrounding of electrical and telecommunication lines
o 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 4 of 13
Next Steps
Upon receiving 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 Eva luation
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 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 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 STREET AND MAGNOLIA AVENUE
Exhibit 1
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, 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 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
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 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
WH EREAS, 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)(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 $568,918 for this project; and
WHEREAS, the City Planner has determined that the project is exempt from t he 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
D Excavation, backfill and compaction
D Conduits
D 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 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 to the address listed on the attached Cost
Remittance. Receipt isacknowledged 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 Worl< 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.
2 FORM 106-2759L (4/91)
Jan. 24,2023 Item #2 Page 10 of 13
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 worl< 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
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 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.
1 O. 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
Council Memo -Valley St and Magnolia Ave Complete Street Improvements Up~ate (District 1)
July 21, 2022
Page 2
Staff continue to design the Project and solicit feedback from 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 Undergrounding
The Project is being delivered in conjunction with the utility undergrounding effort to convert
overhead utilities to an underground system. This effort will also include the relocation of a San
Diego Gas & Electric (SDG&E) gas main and service laterals underneath 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 undergrounding 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.
Next Steps
To align construction timelines for the Project, SDG&E must first complete construction of the
undergrounding of overhead utilities and gas mainline relocation in the Project area. Staff
anticipate undergrounding 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 undergrounding design. This
will help reduce the risk of conflicts between the undergrounding and complete street
elements.
Council Memo -Valley St and Magnolia Ave Complete Street Improvements 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 will then request approval of plans and specifications 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, Assistcint City Attorney
Tom Frank, Transportation Director/City Engineer
David Graham, Chief Innovation Officer
Kyle Lancaster, Parks & Recreation Director
Zach Korach, Finance Director
Jeff Murphy, Community Development Director
Kristina Ray, Communication & Engagement Director
Suzanne Smithson, Library & Cultural Arts Director
Vicki Quiram, Utilities Director
Dave Padilla, Utilities Engineering Manager
Hosseiri Ajideh, Engineering Manager
John Kim, 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 I h1 /.2.1 CA ..:L CCL
CM _y_ACM ..JL..DCM -(3) Ji:,.
ATTACHMENT A
Co uncil Memor andu m
Jan. 21, 2021
To:
From:
Honorable Mayor Hall and Members of the City Council ·
Paz Gomez, Deputy City Manager, Publi~rks
Via: Geoff Patnoe, Assistant City Manager ~
{cityof
Carlsbad
Memo ID #2021016
Re: Valley Street and Magnolia Avenue Com pl ete Street Improvements Project
Update (District 1)
This 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 both 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, bicyclists, .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 t raveled by
pedestrians, bicyclists 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
o Increase sustainability by incorporating green street features •
To meet these goals, the Project will make several improvements to the city's right-of-way
including:
o Americans with Disabilities Act (ADA)-compliant 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
I l
I !
I
I
'
Council Memo -Valley Street and Magnolia Avenue Complete Street Project Update (District 1)
Jan. 21, 2021
Page 2
north side of Magnolia Avenue for approximately 500 feet east of the intersection with
Vall_ey Street
• Separated bike paths on both sides of '(alley Street in the Project area
• Paved, parallel parki_ng in the existing rightsof-way, where feasible
I) High-visibility crosswalks in the Project area
Activated rapid rectangular flashing beacon lights at the intersection of Valley Street and
Brady Circle
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 utility companies. In 2015, Underground Utility
. 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 Public Utilities Commission's Rule 20A funds. However, based
on the most recent cost estimate from San Diego Gas & Electric (SDG&E), the city's Rule 20A
funds are inadequate to pay for the undergrol!nding of the overheaq utilities.
In addition to the roadway improvements outlined above, the Carlsbad Municipal Water
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 Mobility Commission 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 approximately $3.4 million, which significantly increased from the previous
estimate of $1.4 million. The city's current Rule 20A allocation balance is approximately
$1.2 million, and the city is expected to receive approximately $160,000 every year hereafter in
additional 20A allocation (the 2020 allocation was approximately $160,000 whereas the 20;1.9
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
June 2, 2023
Dear Resident,
ATTACHMENT C
(city of
Carlsbad
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/projects.
If you have additional questions, please feel free to contact me at
lauren.ferrell@carlsbadca .gov or 442-339-2558. Thank you.
Sincerely,
J' 1 .. ,-Pv -i1~~ (J~~ 1
Lauren Ferrell, P.E.
Associate Engineer
Public Works 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 not ified
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 con t act me at
lauren.ferrell@carlsbadca.gov or 442-339-2558. Thank you .
Sincerely, r H
Lauren Ferrell, P.E.
Associate Engineer
Public Works Branch
Transportation Department
1635 Faraday 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 contact me at
lauren.ferrell@carlsbadca.gov or 442-339-2558. Thank you.
Sincerely, r H
Lauren Ferrell, P.E.
Associate Engineer
Public Works Branch
Transportation Department
1635 Faraday Ave. I Carlsbad, CA 92008 I 442-339-2746 t
2
3
4
5
6
7
8
9
11
12
13
14
1°5
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. 61 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 facilities 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 Dist rict No. 2011 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
1 I
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 roll; 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, California, 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 facilities for
supplying electric, communication or similar or associated service in the above-described area.
3. That said area is 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 public 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 utilities 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
B ASS W O O D AV
J
A
M
E
S
D
R
VIKIN
G
S
T
M
O
N
R
O
E
S
T
Y
V
E
T
T
E
W
Y
S A N D A L W O O D
L N
C H E S T N U T
A V
V
A
L
L
E
Y
S
T
MA
R
J
O
R
IE
LN
A N D R E A A V
A
L
T
H
E
A LN
S A N D A L W O O D LN
CHESTNUT AV
HI
G
H
L
A
N
D
D
R
HI
G
H
L
A
N
D
D
R
M
O
N
R
O
E
S
T
V
A
L
L
E
Y
S
T
M A G N O LIA A V
M A G N O LIA A VHILLVIEW C T
VALLEY
ST
HI
G
H
L
A
N
D
D
R
CHESTNUT AV
B R A D Y C R M A G N O LIA A V
C H E S T N U T A V
FIA
1991-0035
8
0
5
FIA
85-3770
7
6
NIA
2002-11
5
5
7
1
8
FIA
1994-05
9
7
0
5
4
NIA
2007-031
7
7
1
3
FIA
78-35043
0
FIA
2000-02
5
9
1
5
0
FIA
77-3073
5
3
FIA
83-4799
9
5
FI
A
2
0
0
0
-
0
6
4
6
5
4
0
FI
A
1
9
9
1
-
0
5
1
5
4
5
0
FIA
73-0021
9
0
FI
A
7
4
-
1
5
2
8
2
5
FIA1999-04
5
7
8
7
3
FI
A
74
-
3
2
3
2
4
3
FIA
82-2600
5
8
FIA
1999-027
3
7
9
0
FI
A
7
7
-
0
0
3
7
2
5
FIA
76-2356
2
5
FI
A
7
9
-
4
8
5
5
5
2
FIA82-088
9
7
1
LI
D
A
2
0
1
1
-
0
1
4
6
5
3
7
Attachment B - FIA Map
Project Limits