HomeMy WebLinkAbout2024-04-16; City Council; Resolution 2024-074RESOLUTION NO. 2024-074
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE AN
AGREEMENT WITH SAN DIEGO GAS & ELECTRIC TO PERFORM RULE 20A
AERIAL-TO-UNDERGROUND CONVERSION OF OVERHEAD UTILITIES ON
VALLEY STREET AND MAGNOLIA AVENUE FOR AN ESTIMATED AMOUNT OF
$5,399,104 AND AUTHORIZING ADDITIONAL APPROPRIATIONS IN THE
AMOUNT OF $251,000 FOR THE VALLEY AND MAGNOLIA COMPLETE
STREETS PROJECT, CAPITAL IMPROVEMENT PROGRAM PROJECT NO. 6019
WHEREAS, in 1983, the California Public Utilities Commission instituted the Rule 20A funding
program, which provided that certain funds are set aside each year by investor-owned utilities such as
San Diego Gas & Electric, or SDGE, to pay for undergrounding of existing utility lines; and
WHEREAS, in 1988, Council Policy No. 41 was established for undergrounding overhead utilities,
which is consistent with Rule 20A and provides guidelines and desires on selecting or prioritizing
undergrounding projects; and
WHEREAS, on Nov. 17, 2015, the City Council adopted Resolution No. 2015-280, creating
Underground Utility District No. 20 pursuant to Chapter 11.08 ofthe Carlsbad Municipal Code, or CMC,
associated with the Valley and Magnolia Complete Streets Project, Capital Improvement Program, or
CIP, Project No. 6019; and
WHEREAS, relevant portions of the project include Valley Street between Chestnut and
Magnolia Avenues, a portion of Magnolia Avenue approximately 500 feet east and approximately 110
feet west of Valley Street, and approximately 150 feet of Brady Circle west of its intersection with Valley
Street; and
WHEREAS, SDGE, AT&T, and Spectrum Charter Communications are the utility companies that
have facilities on the existing poles that convey telecommunication and electrical lines within the
subject segment of Valley Street and Magnolia Avenue; and
WHEREAS, the City Council of the City of Carlsbad, California, has determined that removal of
the poles, overhead wires and associated overhead structures, and underground installation of wires
and facilities for supplying electric, communication or similar or associated service within the project
area are in the best interest of the city; and
WHEREAS, undergrounding of overhead utilities for this project is consistent with Council Policy
No. 41; and
WHEREAS, SDGE has provided the city with an estimated cost to design, construct, place
conduit, and place cables in the street public right-of-way and to the customers' service point, remove
poles and overhead cables, and place new poles at the boundary of the underground district, where
determined necessary for the transition from the existing aerial system to the new underground
system, and relocate approximately 1,500 feet of gas main line; and
WHEREAS, SDGE's construction cost for the undergrounding effort is estimated to be
$5,399,104, which does not include construction contingency and construction management and
inspection costs; and
WHEREAS, the total construction cost is estimated to be $7,277,194, which includes a
construction contingency amount of $734,426, a charge collected by SDGE for Income Tax Component
of Contributions and Advances, or ITCCA, in the amount of $762,451, staff support and administrative
costs of $131,213, and construction management and inspection costs of $250,000; and
WHEREAS, SDGE's estimated cost is only approximate, and that the actual costs incurred by
SDGE will be computed upon completion of the work, for which the city is responsible for payment of
SDGE's actual costs; and
WHEREAS, SDGE managing this construction project eliminates the need for a city-managed
project design, solicitation and capital construction effort that would: (i) exceed SDGE's costs, (ii) delay
undergrounding of telecommunication and electrical lines, and (iii) delay completion of the underlying
CIP Project No. 6019; and
WHEREAS, the project is partially funded by the Rule 20A funding program, for which the city's
current Rule 20A work credit allocation balance is $1,729,513; and
WHEREAS, SDGE will provide the city with a pole relocation credit of $1,105,794 and a Joint
Trench Offer credit of $121,346; and
WHEREAS, the Valley and Magnolia Complete Streets Project, CIP Project No. 6019, has a
current available balance of $4,069,551 for this project; and
WHEREAS, staff request the City Council authorize additional appropriations in the amount of
$251,000 from the Public Facilities Fees Fund to CIP Project No. 6019; and
WHEREAS, CMC Sections 3.28.040(C)(S) and 3.28.090(8) authorize the City Manager or
designee to approve change orders in an amount equal to the contingency set at the time of project
award, which is $734,426 for this project; and
WHEREAS, the City Planner has determined that the project is exempt from the California
Environmental Quality Act, or CEQA, under CEQA Guidelines Section 15302(d), which covers
replacement or reconstruction of existing structures and facilities, including the conversion of overhead
electric utility distribution system facilities to underground when the surface is restored to the existing
condition, and where the new structure will be located on the same site have substantially the same
purpose and capacity; and where the existing public structures and facilities involve negligible or no
expansion and no exception to the exemption as set forth in Guidelines Section 15300.2 applies.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as
follows:
1.
2.
That the above recitations are true and correct.
That the City Council authorizes the City Manager to execute an agreement with SDGE
to perform Rule 20A aerial-to-underground conversion of overhead utilities along Valley
Street and Magnolia Avenue, attached hereto as Attachment A.
3. That the City Manager or designee is authorized to appropriate an additional $251,000
to the Valley and Magnolia Complete Streets Project, CIP Project No. 6019, from the
Public Facilities Fees Fund.
4. That the City Council authorizes the City Manager or designee to approve change orders
in an amount equal to the contingency set at the time of project award, which is
$734,426 for this project.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of
Carlsbad on the 16th day of April, 2024, by the following vote, to wit:
AYES:
NAYS:
ABSTAIN:
ABSENT:
BLACKBURN, BHAT-PATEL, ACOSTA, BURKHOLDER, LUNA.
NONE.
NONE.
NONE.
KEITH BLACKBURN, Mayor
SHERRY FREISINGER, City Clerk
(SEAL)
SDGE ••
ATTACHMENT A
Submitted to Applicant by: Ilario Romano
SDG&E Work Order(s): T&C-300000449356
C&C-300000338091
CP-300000338009
AGREEMENT FOR REPLACEMENT OF OVERHEAD
WITH UNDERGROUND FACILITIES
OH RFS-300000338008
THIS AGREEMENT, made and entered into, by and between SAN DIEGO GAS & ELECTRIC
COMPANY, a corporation, hereinafter called "Utility", and THE CITY OF CARLSBAD, hereafter called
"Applicant(s)".
WITNESSETH:
_ WHEREAS, Applicant(s) are the owners, lessees, or others having a legal interest in
·those certain premises known as the Valley & Magnolia Rule 20A Conversion Project ("Project'') located 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; and
NOW, THEREFORE, it is agreed by and between Utility and Applicants as follows:
1. Subject to the conditions hereinafter provided, Utility, upon obtaining satisfactory easements for any
required rights of way for the Project, 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. After construction of the Project, 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 fol.lowing 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 which are no longer necessary for their existing
purpose 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)
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Excavation, backfill and compaction
Conduits
Concrete substructures
d) Utility shall notify Applicants, in writing, of final acceptance of the work specified herein.
Applicants hereby grant to Utility all facilities installed by Applicants pursuant to this
Agreement, said grant to be effective upon receipt of Utility's written final acceptance.
e) Each Applicant shall, at his expense, promptly provide any necessary changes to the existing
facilities on his property so as to receive underground electric service at the points specified
on the Specifications. The Applicants' work shall be in accord with Utility's Rule on Service
Connections filed with the California Public Utilities Commission effective as of the date of
this Agreement, and in accord with the Contract Documents. Underground electric service
will not be supplied until all affected premises are equipped to receive electric service in
accordance with said plan and specifications.
4. The entire undergrounding work is estimated to cost $6,895,981 .00. The Utility expects to receive
payment from the associated Communications Infrastructure Providers (CIPS) in the amount of
$121 ,346.00 for participation in the agreed upon joint trench. The Utility has included this value as a
credit against the total cost of this project ("JTO Value"). The Utility has issued a credit for the value
of $1 ,105,794.00 against the total cost of this project ("Relocation Credit") for the estimated value of
Utility's relocation work had the Applicant not opted to proceed with undergrounding of certain
facilities under Rule 20A. The remaining estimated cost of the undergrounding work, less the JTO
Value and the Relocation Credit is $5,668,841 .00.
Applicant's current Rule 20A work credit balance is $1 ,729,513.00. Applicant(s) will utilize its
available Rule 20A Work Credits to fund this work, and the remainder of the costs associated with
the Project will be paid for by Applicant(s) as follows: payment via check made out to SDG&E and
mailed to the address listed on the attached Cost Remittance.
Receipt by Utility is acknowledged from Applicant(s) in the amount of $3,939,328.00, which is an
amount equal to the estimated cost of the Utility's conversion work, less the JTO value, less the
Relocation Credit, less the City's available Rule 20A Work Credits, pltis the applicable ITCCA
revenue tax which is billed at 24% of the collectible total, in accordance with its Filed Rule on
Replacement of Overhead with Underground Facilities.
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.ln 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.
5. 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 Utjlity by Applicants,
shall become and remain the property of Utility notwithstanding any payment n:iade 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.
2 FORM 106-2759L (4/91)
If any Applicants shall, within one year of the date of this Agreement, fail or refuse to comply with any of the
conditions hereof or to perform all work required under the contracts executed pursuant to Paragraph 3.b) of
this Agreement, Utility shall have the right to make such changes and to impose such further conditions
upon the Applicants as may be necessary to protect its rights under any existing agreement for any
increase in its costs of installation, and to provide in any other manner for the accomplishment of the
purposes of this Agreement consistent with applicable rules, laws, ordinances and its contractual
obligations hereunder.
6. Once Applicant has started to perform the work required by the Contract Documents, Applicants 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 two years after the
effective date of the Contract Documents, Utility shall have the right, upon giving written notice to
Applicants, to cancel and terminate the Contract Documents. Utility shall return to Applicants, an
amount equal to the above cash advance, minus Utility's costs. Utility's costs are defined as the actual
cost (including but not limited to labor, materials and overhead) incurred by Utility prior to such
cancellation and termination in connection with work done in furtherance of Applicants' project, plus the
actual cost of removing any of the Utility installed facilities which Utility desires to salvage, minus the
salvage value of such facilities. Upon exercise of this right to cancel and terminate, and upon payment
to Applicants, all of Utility's obligations under the Contract Documents shall cease.
7. This Agreement shall at all times be subject to such changes or modifications by the California Public
Utility Commission as said Commission may, from tim~ to time, direct in the exercise of its jurisdiction.
8. All terms and situations heretofore made and agreed tci by the parties in relation to said electric 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, ~ondition or stipulafion contained
in this Agreement.
9. If Applicant is a corporation, partnership, join! 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 be shall be jointly and severally
liable under the terms of1his Agreement with every o.ther a·pplicant signing the Agreement.
10. All of the terms and conditions ofttiis Agreement sh ail be binding upon and snail insure to the benefit of
the parties hereto, their heirs, administrators, executors, personal representatives, trustees, •
successors and assigns.
11 . The Contract Documents shall become effective only upon the date signed by the authorized
representative of Utility. •
3 FORM 106-2759L (4/91)
IN WITNESS WHEREOF, the parties hereto have individually executed, or have caused
this Agreement to be executed for and on behalf of each, by and through their responsible agents,
partners duly authorized corporate officers, as the case may be.
Name: --=;:;;:~c'--'·±t""------"U\~D.'-'-',d ........ w~i (_\-'--_.___ __
(Please Print or Type)
Title: ~c~~4a____._______. ____ H~t\J/\~Q~~----=--------
Date: _(~~-~-~~~4 ~----
Address:
4
SAN DIEGO GAS & ELECTRIC COMPANY,
a corporation
By:_M_W------+-✓JUM_~--
(Authorized ln~Utility)
Date Executed:
March 28, 2024
FORM 106-2759L (4/91)