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CITY COUNCIL AGENDA REPORT
City of Anaheim
PUBLIC UTILITIES DEPARTMENT
DATE: SEPTEMBER 26, 2023
FROM: PUBLIC UTILITIES DEPARTMENT
SUBJECT: UNDERGROUND CONVERSION PROGRAM UPDATE
ATTACHMENT (Y/N): YES ITEM # 27
GOVERNMENT CODE § 84308 APPLIES: NO
REQUESTED ACTION:
That the City Council receive an informational update on the Underground Conversion Program.
DISCUSSION:
At the City Council meeting on August 15, 2023, Council Member Norma Campos Kurtz requested a presentation on upcoming projects in the Underground Conversion Program. A staff presentation will be provided on September 26, 2023.
A citywide Underground Conversion Program (Program) was adopted by the City Council in 1990 that was codified in Anaheim Municipal Code 17.24 - Underground Utilities. Since its inception, approximately $428 million has been invested or is planned to replace overhead utility infrastructure along major roadways and areas for reliability purposes. Funding for projects is collected from a 4% surcharge on electric utility bills.
Projects are evaluated based on project coordination with other street improvements, reliability considerations, geographic diversity, aesthetic improvements, and available funding. In terms of procedure, projects are first selected by the Underground Conversion Subcommittee (Subcommittee), which is comprised of three Public Utilities Board members and two Planning Commissioners and subsequently included in the Five-Year Plan. Following the Subcommittee’s recommendation, the full Public Utilities Board will review the Five-Year Plan and provide a recommendation to City Council for evaluation and adoption.
Currently, there are 15 projects in the Five-Year Plan in various stages (Attachment 1).
Undergrounding projects are complex due to their impact on many stakeholders including residents, businesses, schools, other utilities, railroads, state and county agencies, and other city departments. As part of the coordination and design activities, easements are required for placement of new underground facilities when placed on properties. For typical projects, it takes approximately two years for design, eighteen months for construction, and another year or more for telecommunication companies to remove their overhead wires prior to pole removals.
Underground Conversion Program Update
September 26, 2023
As part of undergrounding projects, Anaheim Public Utilities (APU) looks to enhance system performance with high voltage switches that are remotely monitored and controlled to minimize outage duration, underground cable with increased capacity to meet vehicle and building electrification needs, new street lighting systems, and anti- graffiti wraps on utility equipment. Underground equipment is less susceptible to common outage causes such as wind, tree branches, metallic balloons, and vehicle accidents. However, underground equipment may take longer to repair, especially if excavation is required.
Since Program inception, 139 circuit miles have been placed underground, which represents approximately 58% of eligible circuits in Anaheim roadways. In addition to major roadways, two program modifications have been subsequently incorporated:
In 2007, a new rebate program was established for residents to underground their service lines, when they are not along a future undergrounding project. To date, 109 households have participated in Home Undergrounding; and, In 2017, the criteria for eligibility was expanded to include areas where reliability improvements would reduce risks, such as neighborhood roadways in high fire threat zones. Fire ignition from power lines has been mitigated through a number of initiatives outlined in APU’s Wildfire Mitigation Plan, and the remaining segments in high fire threat zones are currently in design for undergrounding.
APU also seeks to supplement its own funding through grants. One example is a grant award of $870,000 for the design of the wildfire segments, and an application for $8 million to partially fund the construction phase of the project through the Federal Emergency Management Agency. Another example includes submission of a federal grant through the U. S. Department of Energy for $47 million to underground East Street which includes Southern California Edison (SCE) facilities. Since APU is unable to use ratepayer funds to underground SCE lines, the grant would fund SCE undergrounding as well as significantly reduce APU’s costs.
The overall benefits of the Undergrounding Program include reliability improvements, mitigating wildfire risks, and improving roadway aesthetics and visibility while maintaining electric rates that are lower than surrounding Orange County communities.
IMPACT ON BUDGET:
Sufficient funds are available in APU’s Fiscal Year 2023/24 restricted Electric Utility budget to implement current undergrounding projects, and funds for subsequent years are subject to City Council budget approvals.
Respectfully submitted,
Dukku Lee
Public Utilities General Manager
Attachment:
1. Five-Year Underground Conversion Plan for Fiscal Year 2023/24 Project List