CITY COUNCIL STAFF REPORT
November 19, 2024 5d
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SILVER STRAND UNDERGROUNDING PROJECT: ADOPT A RESOLUTION DESIGNATING
THE BOUNDARY FOR THE SILVER STRAND UNDERGROUNDING PROJECTS, SELECTING THE PORTION BETWEEN CROWN COVE AND CORONADO BAY ROAD AS CORONADO’S 20A PROJECT; ALLOCATE ALL OF THE CITY’S 20A WORK CREDITS FROM SDGE IN THE AMOUNT OF $2,845,596 TO SAID LOCATION TO UNDERGROUND THE OVERHEAD UTILITIES; AND APPROPRIATE ADDITIONAL FUNDS IN THE AMOUNT OF $550,000 TO
THE PROJECT BUDGET
RECOMMENDATION:
1. Adopt a Resolution (Attachment 1) designating the boundary for the Silver Strand Undergrounding Projects, selecting the portion between Crown Cove and Coronado Bay Road as Coronado’s 20A project and allocate all of the City’s 20A work credits from SDGE in the amount of $2,845,596 to underground the remaining overhead utilities in said location.
a. Approve staff recommendation to phase the remaining undergrounding into two projects with the following funding allocations: Phase I - Coronado Bay Road north to approximately Crown Cove using 20A work credits; and Phase II - Crown Cove to Fiddler‘s Cove using other funds/grants.
b. Approve the project alignment for the joint trench utility to be constructed west of the Bay Shore Bikeway predominantly in Caltrans right-of-way and authorize staff to negotiate with Caltrans for approval.
2. Appropriate an additional $550,000 from CDA Loan Fund, Fund 160, to the overall project budget to facilitate the completion or ability to complete all easements, permits, environmental analysis, plans and specifications to construct Phase I and position the City to be able to obtain other funding/grants for Phase II.
3. Authorize the City Manager to approve/amend agreements with consultants to complete the design of the project in preparation for construction all within the project budget.
BACKGROUND:
Staff last provided a formal update to the City Council on October 4, 2022, which included the following and the appropriation of $200,000 from the Community Development Agency Fund 160 to the project:
Silver Strand Conversion District:
SDGE has completed the 60% plans for the removal of overhead services and construction of underground conduits and facilities.
Design alignment is on the west side of the bike path. With receipt of the SDGE plans, City staff and consultant are now coordinating with Communication Providers (AT&T, Charter, Cox) to obtain fee estimates for design plans and any requirements for agreements.
The proposed alignment must be coordinated with Cal Am Water Company who is in the design for the construction of a new water main along the Strand; the 60% SDGE plans have been sent to Cal Am to incorporate into the final Cal Am plans. 4886-2927-9226 v1
From the previous update: The electrical lines must traverse the three pedestrian crossings of SR 75 and because of the limited cover to the top of the pedestrian tunnels, the lines must be rerouted onto State Parks property to avoid overhead crossings. This will require easements, which may take some time to obtain. SDGE completed potholing after receiving a Caltrans permit and has determined the lines do not need to be rerouted onto State Parks property and can be underground under the pedestrian tunnels.
City staff has preliminarily identified one easement that is required unless there is desire to leave one pole remaining. Staff will pursue the easement unless otherwise directed.
CEQA analysis needs to be performed which could include sensitive species review. A review of permits/ownership rights is also needed.
Goal is to have a design finalized project eligible for potential grant funding opportunities by Summer of 2023
Subsequent to this Council meeting, staff issued a Task Order to Michael Baker International, Inc. (MBI) to begin providing support in furthering the project.
ANALYSIS:
Since the last Council action, the following tasks have been completed:
Staff issued a Task Order and Amendment, up to the City Manager’s authority of $100k, to Michael Baker International, Inc. (MBI) to provide support in furthering the project. Acquired final plans from SDGE, AT&T, Charter and Cox (Attachment 2). MBI ordered a Preliminary Title Report covering approximately 7 miles long and 50 feet wide (approximately Bluewater Boathouse to south City limit) and plotted a majority of the properties and encumbrances to determine needed property owner approvals/easements to further the project.
As staff and its consultants (Huth and Associates, MBI) continue to progress on the project, SDGE has reminded staff that the City’s Rule 20A work credits in the amount of $2,845,596 are set to expire December 1, 2024, if not they are not designated to an Active project. Staff was under the impression that the CPUC had extended the deadline but based on the letter received by the City (Attachment 3) staff is bringing this request forward within the deadline identified in the letter. In order to meet the requirements, the City needs to designate a project and allocate the funds to the project through a resolution adopted by the City Council. Based on the City’s current undergrounding projects and Rule 20A expenditure deadline, the only viable project staff has identified is the Silver Strand project. The Adella/Ynez project is not eligible for Rule 20A funds since a majority of the project lies within a residential neighborhood, First Street is complicated by overhead utilities on both sides of the street in addition to a proposed transmission facility and assessment district. The Pomona project has not been initiated. Rule 20A projects historically had been excluded from using any other funds to construct the project and such all 20A projects had to be designed and constructed as an independent project. Ancillary funds were acceptable in cases where there were cost overruns and all 20A work credits expended.
To secure the Rule 20A work credits staff has prepared a Resolution and Exhibit A (Attachment 1) which includes a boundary map proposing the phasing of two undergrounding projects along with allocating the City’s work credits to one of those projects. Exhibit A encompasses the remaining area of above ground utilities along the Silver Strand Scenic Highway from Fiddler’s Cove south to Coronado Bay Road. The scope of work includes the removal of all of the utility poles and lines in the project area except one pole which will be changed out with a new pole to 4886-2927-9226 v1
serve power into the Navy housing area which is not part of the undergrounding project and will continue to have overhead utility service. The scope also includes the placement of utilities underground which will be serviced by vaults, manholes, surface mounted transformers and utility pedestals and cabinets. There is no additional new street lighting being proposed as part of this project.
MBI completed a cost estimate for the overall project (Attachment 4) including charges provided by SDGE. The estimate includes a graphic similar to the exhibit included in the resolution and includes details of the charges presented to the City by SDGE. The estimate would continue to be refined as the two projects continue forward. The estimate does not include any land easement fees from the State or the US Government. For the Phase I project, staff proposes to fund the southern portion of the project, approximately 2200 feet or 24% of the project with the 20A work credits with Phase II funded through other funds/grants. There is a possibility that the City would need to provide supplemental funding in addition to the 20A funds to complete Phase I. Another option to the City is use the 20A funds as a match to construct both Phase I and Phase II at the same time. Staff recommends continuing forward with the tasks identified and constructing Phase I. Should funding opportunities be available to construct both Phases as one project staff would return to City Council to provide details and seek direction.
Lastly, to date the project has expended $100,725, with obligations and encumbrances of $30,375 and remaining project budget of $68,900. In order to complete Phase I and to position the City to be able to obtain other funds/grants for Phase II, staff is recommending an additional appropriate of $550,000 to fund the tasks outlined in MBI’s scope and fee (Attachment 5). At this point staff has exhausted the City Manager’s authority of $100k to MBI and need additional authority to continue. The complexity of the project makes it difficult to plan the overall project and sequence as staff continues to identify new challenges and therefore staff seeks Council approval to grant the City Manager the authority to approve/amend agreements with consultants up to the project budget.
Should the City Council approve the staff recommendation, the following tasks would be initiated first:
Send the adopted Resolution to SDGE to secure the 20A work credits. Meet with Caltrans to obtain their approval to construct the overall project within their rightof-way.
Depending on the progress towards Caltrans approval the following tasks would be initiated based on staff recommendation:
CEQA/NEPA review of the project.
Acquire an easement from the State/Caltrans for the portion of the project from Coronado Bay Road to Crown Cove - Phase I.
Position the City to be able to acquire an easement from the US Government for the portion of the project from Attu Avenue to the north end of the Navy Housing within Caltrans right-of-way – Phase II.
Conduct surveying/potholing for Phase I.
Coordinate field meetings with SDGE, AT&T, Charter and Cox to field verify any conflicts. Complete all agreements with SDGE, AT&T, Charter and Cox. Prepare plans and specifications for Phase I.
Complete Coastal Commission review process.
Acquire Caltrans permits for construction (Phase I only). 4886-2927-9226 v1
In order to complete a majority of the tasks above, staff would need to return to City Council for approval. At this time, staff does not have an anticipated construction start date for Phase I.
FISCAL IMPACT:
The project (20014) had a previous appropriation of $200,000 from Community Development Agency Fund 160. To date $100,725 has expended, with obligations and encumbrances of $30,375, with a remaining project budget of $68,900.
Staff requests to allocate all of the City’s Rule 20A funds, held by SDGE, in the amount of $2,845,596 to the project (Phase I). This includes $300,000 appropriated to the Pomona Undergrounding project.
Staff also requests to appropriate an additional $550,000 from Community Development Agency Fund 160 to complete all agreements, easements, permits, environmental analysis, plans and specifications to construct Phase I and position the City to be able to obtain other funding/grants for Phase II.
ALTERNATIVE:
The City Council could elect to not proceed with the projects or provide alternate direction.
CALIFORNIA ENVIRONMENTAL QUALITY ACT:
The CEQA review will be undertaken once the project scope has been identified.
PUBLIC NOTICE:
No notice required.
ATTACHMENTS:
1. Resolution 2024-67 and Exhibit A
2. Rule 20A Status and Summary
3. SDGE ATT Charter Cox Design Plans
4. Overall Project Estimate
5. MBI Scope and Fee
Submitted By: Public Services and Engineering Department / Leon Firsht