HomeMy WebLinkAbout2023-06-08; Valley Street and Magnolia Avenue San Diego Gas & Electric Utility Undergrounding Update (District 1); Gomez, PazTo the members of the:
CITY COUNCIL
oatj/0j2~ CA JL. tc /
CM ACM VOCM (3) ✓ ---
June 8, 2023
Council Memorandum
To:
From:
Honorable Mayor Blackburn and Members of the City Council
Paz Gomez, Deputy City Manager, Public Works
Via:
{city of
Carlsbad
Memo ID# 2023056
Re:
Geoff Patnoe, Assistant City Manage~
Valley Street and Magnolia Avenue Sa;;-1>iego Gas & Electric Utility Undergrounding
Update (District 1)
This memorandum provides an update to a previous City Council Staff Report dated
January 24, 2023, and Council Memorandum dated July 21, 2022 {Attachments A and B) on the
Valley and Magnolia Complete Streets Project, Capital Improvement Program {CIP),
Project Nos. 6019 and 3904 (Project), which includes utility undergrounding.
Background
The Council Memorandum dated July 21, 2022, provided background information on the Project.
Additionally, the City Council Staff Report dated January 24, 2023, provided information on the
agreement with San Diego Gas & Electric (SDGE) to perform aerial-to-underground conversion of
overhead utilities on Valley Street and Magnolia Avenue.
Discussion
The City Council executed an agreement under which SDGE would move electrical and
telecommunication lines from overhead to underground on parts of Valley Street and Magnolia
Avenue and a portion of Brady Circle. The City Council authorized the City Manager to execute
the agreement with SDGE for an estimated amount of $2,844,592. The City Council also
authorized the City Manager or designee to approve change orders in an amount equal to the
contingency, which for the Project was $568,918.
The Project is partially funded by the California Public Utilities Commission Rule 20A funding
program. The city accumulated $1,729,513 through this program and will receive a work credit in
this amount when the Project moves to construction.
SDGE's construction cost estimate for the entire undergrounding work was $3,413,510, including
a construction contingency amount of $568,918, as of January 2023. SDGE's construction cost
estimate did not include the city's construction management and inspection cost of $230,000.
The total estimate is more than what is available in the city's Rule 20A work credit allocation
fund, so the remaining balance is to be paid by the funds set aside for the Valley and Magnolia
Complete Streets Project, CIP No. 6019.
Public Works Branch
Transportation Department
1635 Faraday Avenue I Carlsbad, CA 92008 I 442-339-2730 t
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 the 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 the underground district
boundary and adjacent schools, Carlsbad High School, Valley Middle School, Magnolia
Elementi:)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 appropriations, if
needed.
Staff will return to the City Council later this year with a status update and to present options for
completing the project.
Attachments: A: City Council Staff Report dated January 24, 2023
B. Council Memorandum dated July 21, 2022
C. Samples of notification letters to the residents and 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
ATTACHMENT A CA Review RK
C ITY COUNCIL
Staff Report
Meeting Date:
To:
From:
Staff Contact:
Jan. 24, 2023
Mayor and City Council
Scott Chadwick, City Manager
Lauren Ferrell, Associate Engineer
lauren.ferrell@carlsbadca.gov, 442-339-2558
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
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 $2,844,592.
Executive Summary
The City Council is being asked to execute an agreement under which SDG&E would move
electrical and telecommunication lines from overhead to underground on parts of Valley Street
and Magnolia Avenue and a portion of Brady Circle.
This utility undergrounding work needs to be completed as part of the Valley and Magnolia
Complete Streets Project, Capital Improvement Program Project No. 6019, specifically, the
utility poles need to be removed so new sidewalks can be installed.
A credit the city received from the California Public Utilities Commission's Rule 20A
undergrounding program will cover part of the costs of the project.
The City Council's approval for this project is required because the proposed agreement with
SDG&E is in an amount not to exceed $2,844,592, and Carlsbad Municipal Code Section
3.28.060(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 adopt the proposed resolution, Exhibit 1, authorizing the
City Manager to execute the agreement with SDG&E.
Explanation & Analysis
Background
The Rule 20A program, established in 1983, provided that certain funds would be set aside each
year by SDG&E to pay for the undergrounding of existing utility lines.
Jan.24,2023 Item #2 Page 1 of 13
In 1988, the City Council established Council Policy No. 41 on undergrounding overhead
utilities. The policy, consistent with Rule 20A, stated the city's guidelines and desires on
selecting or prioritizing underground projects.
The City Council formed an underground utility district in 2015 to move overhead utility lines to
an underground system, in accordance with Carlsbad Municipal Code to Chapter 11.08 -
Underground Utility Districts.
The boundaries of this district, named Underground Utility District No. 20, cover (See Location
map, Exhibit 2):
• 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 the north side of Magnolia Avenue from Valley Street to
approximately 500 feet east of the intersection.
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 to 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
• 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 maiil line and service lines beneath Magnolia Avenue, east of
Valley Street
Individual customer connections will be made by boring laterally, underground from the main
line in the right of way to install conduit and cable. If lateral boring is not feasible, open
1 These are plastic cylinders, about 2-or 3-feet tall, that house the equipment.
Jan. 24, 2023 Item #2 Page 2 of 13
trenches approximately 2 feet deep and 2 feet wide will be dug, with surfaces restored to pre-
existing conditions when the work is completed.
Three properties will be required to upgrade their electric service panel; they have been
notified by mail. Some properties may need to have installation of conduit and a junction box
installed on their exteriors. SDG&E will make that determination and make the necessary
installations.
Fiscal Analysis
This project is to be partially funded by the California Public Utility Commission Rule 20A
funding program, which allowed funds to be set aside each year by SDG&E to pay for
undergrounding existing overhead electric facilities. The city has accumulated $1,729,513
through this program.
The commission issued a decision in 2021 that significantly revised the Rule 20A program,
discontinuing allocations for Rule 20A electric projects carried out after April 2022. Due to this
ruling, the city 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
Total construction costs are estimated to be $3,643,510. This is more than what is available in
the city's Rule 20A work credit allocation fund, so the remaining balance of $1,913,997 is to be
paid by the funds set aside for the Valley & Magnolia Complete Streets Project, Capital
Improvement Program Project No. 6019. Sufficient funding has been appropriated from the
Traffic Impact Fee and TransNet funds for the remaining costs. 2
Summary of costs and funding
Valley & Magnolia Complete Streets Project
Capital Improvement Program Project No. 6019
Total appropriation to date $4,736,206
Total expenditures and encumbrances to date $484,105
Total available balance $4,252,101
Total estimated SDG&E undergrounding costs
Construction contract ( estimated) $2,844,592
Construction contingency (estimated) $568,918
Construction management, inspection, testing, public outreach (estimated) $230,000
Total estimated construction costs $3,643,510
Costs paid by Rule 20A work credit allocation balance $1,729,513
Remaining balance to be paid by the city from CIP Project No. 6019 $1,913,997
Remaining balance in CIP Project No. 6019 $2,338,104
Additional appropriation requested $0
2 TransNet is a countywide sales tax collected to fund regional transportation projects.
Jan. 24, 2023 Item #2 Page 3 of 13
SDG&E's estimated cost is approximate, and the actual costs incurred by SDG&E will be
computed upon completion of the work. The city will be responsible for paying SDG&E's actual
costs.
Carlsbad Municipal Code sections 3.28.040(C)(5} and 3.28.090(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, 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
• 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 Evaluation
The City Planner has determined that project is exempt from the California Environmental
Quality Act under Guidelines Section 15302(d), which covers replacement or reconstruction of
existing structures and 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, 2915, 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
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
Jan.24,2023 Item #2 Page 7 of 13
capacity; and where the existing public structures and facilities involve negligible or no expansion and
no exception to the exemption as set forth in Guidelines Section 15300.2 applies.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as
follows:
1. That the above recitations are true and correct.
2. That the City Council authorizes the City Manager, or 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:
Jan.24,2023
Blackburn, Bhat-Patel, Acosta, Burkholder.
None.
None.
None.
KEITH BLACKBURN, Mayor
Item #2 Page 8 of 13
Attachment A
)
_A ~ Sempra Energy utility•
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.
FORM 106-2759L (4/91)
Jan.24,2023 Item #2 Page 9 of 13
D Excavation, backfill and compaction
D Conduits
D Concrete substructures
d) Utility shall notify Applicants, in writing, of final acceptance of the 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 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.
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 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
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.
10. If Applicant is a corporation, partnership, joint venture or a group of individuals, the subscriber hereto
represents that he has the authority to bind said corporation, partners, joint venture or individuals as
the case may be. Each Applicant signing this Agreement agrees that he shall be jointly and severally
liable under the terms of this Agreement with every other applicant signing the Agreement.
11. All of the terms and conditions of this Agreement shall be binding upon and shall insure to the benefit
of the parties hereto, their heirs, administrators, executors, personal representatives, trustees,
successors and assigns.
12. The Contract Documents shall become effective only upon the date signed by the authorized
representative of Utility.
3 FORM 106-2759L (4/91)
Jan. 24, 2023 Item #2 Page 11 of 13
IN WITNESS 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
By: --+-----,-N-'1----------r ed Signature)
Name: _S ............. rA>~tt,,_____..._C~\/\ ............. 6' (AyV~\~rJ?-
(Please Print or Type)
Title: _Li-=----c.lt-'--J_--&.-M,.,.__i,v\'--"-(\-~-A-=--
Date: -~21hA~~.,J~~~~-----
Address: \ vQ Q UvV\ ~ );) LfA_
CG.A/\ \VJMl I CA
Telephone: _
APPROVED AS TO FORM
Cindie K. McMahon, City Attomei
lllG ~Attomey
City o1 Carlsbad. California
Jan. 24, 2023
4
SAN DIEGO GAS & ELECTRIC COMPANY,
a corporation
By: ______________ _
(Authorized Individual-Utility)
Date Executed:
FORM 106-2759L (4/91)
Item #2 Page 12 of 13
PROJECT NAME
LOCATION MAP
Carlsbad
High School
Valley
Middle
School
FIELD
PACIFIC OCEAN
~
Magnolia
Elementary
School
RULE 20A UNDERGROUND CONVERSION
Created By: saJil-AP~4, lt>Rioo22 F:\Projects\FromLaurenFerrel/\SlaffReporl\LocationMap\LocationMapExhibit2.mxdlte m #2
Exhibit 2
VICINITY'MAP .·
s.o\oUNTY
EXHIBIT
2
Page 13 of 13
To the members of the:
.~ITY COUNCIL
Date 1/.2i /2;2.cA ✓ cc ✓
CM ..JLACM _LDCM (3) V
July 21, 2022
ATTACHMENT B
Council Memorandum
To: Honorable Mayor Hall and Members of the City Council
From: Paz Gomez, Deputy City Manager, Public Works
Via: Geoff Patnoe, Assistant City Manager @
{city of
Carlsbad
Memo ID #2022085
Re: Valley Street and Magnolia Avenue Complete 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
The Council Memorandum dated Jan. 21, 2021 (Attachment A), provided background
information on the Project.
In 2015, Underground Utility District No. 20 was formed by City Council Resolution
No. 2015-280 pursuant to Chapter 11.08 of the Carlsbad Municipal Code. This district was
formed to address converting overhead utilities to an underground system in the area.
Extensive public outreach efforts on the Project were conducted in 2017, 2018 and 2020. Staff
received public feedback requesting additional parking on Valley Street and increased driveway
accessibility and visibility. Preliminary designs were presented to the Traffic and Mobility
Commission on Dec. 7, 2020.
Discussion
The Project is in the engineering design phase to provide complete street improvements within
the city right-of-way along both sides of Valley Street from Chestnut Avenue to Magnolia
Avenue. The Project will also improve the north side of Magnolia Avenue from Valley Street to
approximately 500 feet east of the intersection. The improvements will provide sidewalk, curb
and gutter, pedestrian curb ramps, improved conditions for bicyclists and additional lighting in
the area.
In addition to these typical street improvements, "green street" or low impact development
design will also be incorporated. This includes drainage features that use vegetation and soil to
filter and treat storm water before entering the storm drain system where possible. The Project
will also replace an old potable water main and related services in Valley Street, in coordination
with the Carlsbad Municipal Water District.
Public Works Branch
Transportation Department
1635 Faraday Avenue I Carlsbad, CA 92008 I 442-339-2730 t
Council Memo -Valley St and Magnolia Ave Complete Street Improvements Update (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 Communicat ions 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 aut horized 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 t imelines 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. Cit y 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 lat er 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, Assistant 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
Hossein 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' h1/.2.1 CA__)i__ cc_x:_
CM _j,f__ ACM JL DCM (3) V
Jan. 21, 2021
ATTACHMENT A
Council Memorandum
To:
From:
Via:
Honorable Mayor Hall and Members of the City Council ·
Paz Gomez, Depu. ty City Manager, Publi~rks
Geoff Patnoe, Assistant City Manager ~
{cityof
Carlsbad
Memo ID #2021016
Re: Valley Street and Magnolia Avenue Complete 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 traveled 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:
• Enhance mobility for all modes of travel
• Create a balanced road that is safe and attractive for pedestrians, bicycles and vehicles
• 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:
• 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
Council Memo -Val_ley 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
Valley Street
• Separated bike paths on both sides of Valley Street in the Project area
• Paved, parallel parking in the existing right-of-way, where feasible
• 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 ofthis 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 undergrounding of the overhead 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 2019
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
Council Memo -Valley Street and Magnolia Avenue Complete Street Project Update (District 1)
Jan. 21, 2021
Page 3
Next steps
Staff will develop an alternatives assessment to the separated bike paths and seek public input
early this year. After receiving public feedback, staff will update the plans and associated
technical documents, if necessary, to ensure the Project features remain aligned with
community needs. Staff will then present the final design approach to the Traffic and I\Aobility
Commission, which is expected to be later this year.
Adc;litionally, staff will look for additional funding sources for undergrounding the overhead
utilities in the Project area as part of the upcoming fiscal year 2021-22 CIP Budget development
process. Staff anticipates coordinating with utility companies for undergrounding overhead
utilities through late 2021.
Once public feedback on the design of the Project has been received and Traffic and Mobility
Commission support has been obtained, staff plans to finalize the Project plans and
specifications and obtain the necessary permits in early 2022. Staff plans to return to the City
Council in mid-2022 with a request to approve the plans and specifications and authorize
advertisement for construction bids. After the bidding process is completed, staff will return to
the City Council to request award of a construction contract in late 2022. Construction is
estimated to begin in early 2023.
Attachment: A. Location Map
cc: Scott Chadwick, City Manager
Celia Brewer, City Attorney
Gary Barberio, Deputy City Manager, Community Services
Laura Rocha, Deputy City Manager, Administrative Services
Robby Contreras, Assistant City Attorney
Tom Frank, Transportation Director
Ryan Green, Finance Director
Kristina Ray, Communication & Engagement Director
Vicki Quiram, Utilities Director
Dave Padilla, Utilities Engineering Manager
Hossein Ajideh, Engineering Manager
John Kim, City Traffic Engineer
Nathan Schmidt, Transportation Planning and Mobility Manager
Jonathan Schauble, Senior Engineer
3
i [
i
I I
I l
I
!'. f I
--
LO CAT 1O N MAP
NOT TO SCALE
PROJECT NAME
. VALLEY STREET AND MAGNOLIA AVENUE JMPROVEMENTS
DRAIIN Br. SCOIT £VANS. CARLSBAD £NG/NEERING DEPT. 2/,0/09 C: \CAPITAL \LOCA110N MAPS\5019.DI\G
ATTACHMENT A
[S
(T
PROJECT NUMBER
6019
Public Works Branch
Transportation Department
1635 Faraday Ave. Carlsbad, CA 92008 442-339-2746 t
June 2, 2023
Dear Resident,
Thank you for providing the information we requested for the project to convert overhead
utility lines in your neighborhood to an underground system.
As part of finalizing the project plans, San Diego Gas & Electric prepared an updated cost
estimate, which was significantly higher than the original estimate. As a result, city staff have
requested additional information so we can identify potential options for how the project can
proceed.
Unfortunately, this means SDG&E won’t be able to start construction this summer as planned.
What’s next
City staff expect to present options to the City Council later this year. If you’d like to be notified
about this meeting, please sign up for our email list on the project page (see below).
Street and sidewalk improvements
The city is continuing to work on the project to add sidewalks and other improvements to
Valley Street, from Chestnut to Magnolia, and a portion of Magnolia Avenue. The next step will
be to share proposed design options with you for feedback. This is expected to be mid-2024. If
you’d like more information about that project or to sign up for email notifications, please visit
www.carlsbadca.gov/residents/projects.
If you have additional questions, please feel free to contact me at
lauren.ferrell@carlsbadca.gov or 442-339-2558. Thank you.
Sincerely,
Lauren Ferrell, P.E.
Associate Engineer
ATTACHMENT C
Public Works Branch
Transportation Department
1635 Faraday Ave. Carlsbad, CA 92008 442-339-2746 t
June 2, 2023
Carlsbad Unified School District
Magnolia Elementary School
Valley Middle School
Carlsbad High School
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,
Lauren Ferrell, P.E.
Associate Engineer
Public Works Branch
Transportation Department
1635 Faraday Ave. Carlsbad, CA 92008 442-339-2746 t
June 2, 2023
North County Academy
Ms. Evelia Medina
Mr. Stephen Gotowala
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,
Lauren Ferrell, P.E.
Associate Engineer