CITY COUNCIL STAFF REPORT
December 6, 2022 {{section.number}}g
ADOPTION OF A RESOLUTION OF THE CITY COUNCIL DIRECTING STAFF TO WORK WITH
SAN DIEGO GAS & ELECTRIC AND OTHER UTILITIES AND AUTHORIZE PROJECT DESIGN COST IN THE AMOUNT NOT TO EXCEED $100,000 IN FURTHERANCE OF THE PLANNING
OF THE FORMATION OF A UTILITY CONVERSION DISTRICT ALONG PORTIONS OF FIRST
STREET BETWEEN ALAMEDA BOULEVARD AND D AVENUE
RECOMMENDATION:
Adopt a Resolution directing staff to work with San Diego Gas & Electric (SDGE) and other utilities in the furtherance of the planning of the formation of a utility conversion district along portions of First Street between Alameda Boulevard and D Avenue.
Appropriate $100,000 from Fund 160-CDA Loan Fund for the First Street Undergrounding project for the preparation of additional plans and documents, environmental analysis, permitting/easement/ownership research and document preparation, and any other requirements needed in order to obtain more accurate information to determine the costs to petitioners and the City.
BACKGROUND:
After several years of coordinating the preparation of a Utility Underground Master Plan, staff presented to the City Council an Implementation Plan which included underground districts by priority. First and Second Streets were rated as the highest priority.
On August 5, 2019, after a series of public meetings, a majority of property owners along First Street (between Alameda Boulevard and D Avenue) submitted a signed petition stating their interest in undergrounding the overhead utilities along First Street. Since then staff has coordinated with the lead petitioner on the project with the last update to City Council on July 20, 2021. At that meeting, City staff presented the First Street Undergrounding Project to the City Council for review and direction. The recommendations provided by staff in the report included the following:
1. Approve the Preliminary Assessment Methodology for the First Street Utility Undergrounding District.
2. Reduce the amount of the district assessment to account for the increased construction costs associated with a second circuit which primarily supplies power to Naval Air Station North Island (NASNI).
3. Confirm the 50/50 cost split between the City and the proposed assessment district for the circuit that services the Coronado residents.
4. Direct staff to continue to work with residents to establish the assessment district to underground the utilities along First Street.
The City Council voted 4-1 to accept the recommendations and directed staff to include the construction costs associated with the circuit which primarily supplies power to NASNI as part of the City’s costs prior to the 50/50 cost split between the City and the residents (property owners). In addition, City Council directed staff to update the table which outlined the estimated Attachment 1
costs to the property owners. The updates more specifically were to include more accurate estimates for private property work related to undergrounding of individual private services and use the revised overall construction estimate for the project.
On June 21, 2022, the City Council approved the City’s Capital Improvement Program reaffirming its commitment to four undergrounding projects: Adella and Ynez, Silver Strand, First Street, and Pomona Avenue. This staff report provides an update and a request for funding and direction to coordinate with SDGE on the First Street Undergrounding project.
ANALYSIS:
Since the last update to City Council, new staff assigned to the project has prepared the individual estimates for private property work and updated the table with the revised construction costs including the circuit costs as part of the City’s share. Staff has communicated or met with the lead petitioner on several occasions as progress has been made or to outline the steps ahead.
While staff has made progress the project is considerably different than the two other undergrounding projects that staff is working on: Adella and Ynez, and Silver Strand. This First Street Undergrounding project has significantly more property owners and complexity due to the overhead facilities being on both sides of the street and along alleyways. While a district boundary comprised of parcels has been identified there are several adjacent properties to the district boundary that may be impacted (primarily in alleyways). Staff recommends these parcels be identified prior to finalizing the table with the assessment cost share for each parcel which is needed in order to solicit the assessment vote. The benefit to identifying these parcels now would be to reduce the risk that a parcel(s) was excluded in the formation of the district and require the City to modify the district and recalculate the assessments for all the parcels previously included in the district. Conversely, the City could decide not to modify the district and distribute the additional costs among those parcels currently included in the district and the City.
Separately, there are multiple parcels impacted by long service drops that require additional design consideration and confirmation of cost share. Currently staff is working to determine these costs, but without the designs from SDGE and the utilities, staff is challenged to obtain more accurate information and can only make assumptions. Staff has outlined options in prior staff reports regarding the potential structure of financing terms but cannot present final options on financing terms to the City Council for consideration until more accurate design information has been obtained. SDGE design is needed for utility companies who have above ground utilities located on SDGE facilities to prepare their designs in preparation for undergrounding.
To initiate the design for the undergrounding of SDGE utilities, the attached City Council Resolution is required by SDGE. The benefit to approving the Resolution now is that staff can run concurrent processes to continue to make the most progress on the project as possible while obtaining more accurate information for final costs and assessments. It is estimated once fees are paid to SDGE, their time to prepare the design is likely to be between 6-12 months with the utilities requiring additional time after they receive the SDGE design.
It’s important to note that at any point in the future should the City Council want to underground the utilities in this area it would need to approve a resolution in order to initiate the design with SDGE and the utilities. A project cannot be advertised for construction without the designs. Staff would recommend a resolution be approved prior to initiating any future underground projects (Pomona Avenue).
Attachment 1
FISCAL IMPACT:
160-CDA Loan Fund has a sufficient fund balance, and the project is an eligible expense based on prior Council directives regarding the use of this fund.
Appropriate $100,000 from Fund 160-CDA Loan Fund to account 40070000-98020-20015 for the First Street Undergrounding project. Funding for the activities listed in the recommendation section would be paid in advance by the City with final expenses being included in the cost of the project and subject to cost share with the property owners if or when the project moves forward.
ALTERNATIVE:
The City Council could choose not to approve the Resolution and hold off on proceeding with initiating the design with SDGE and utilities. Without approval staff would finalize the remaining items on the project and return to City Council to review and approve the revised assessment table in order to initiate the second and final district vote.
CALIFORNIA ENVIRONMENTAL QUALITY ACT:
Not Applicable
PUBLIC NOTICE:
No notice required.
ATTACHMENTS:
1. Resolution No. 2022-49
2. Draft First Street Boundary Map
Submitted By: Public Services and Engineering Department / Leon Firsht Attachment 1
Attachment 1
RESOLUTION NO. 2022-49
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CORONADO, CALIFORNIA, DIRECTING STAFF TO WORK
WITH SDGE AND OTHER UTILITIES, AND AUTHORIZE
PROJECT DESIGN COST IN THE AMOUNT NOT TO EXCEED
$100,000 IN FURTHERANCE OF THE PLANNING OF THE
FORMATION OF A UTILITY CONVERSION DISTRICT ALONG
PORTIONS OF FIRST STREET BETWEEN ALAMEDA
BOULEVARD AND D AVENUE.
WHEREAS, on September 4, 2018, the City Council reviewed the Utility Underground Master Plan and directed staff to prepare an Implementation Plan; WHEREAS, on June 18, 2019, the City Council approved the Implementation Plan which included underground districts by priority and First/Second Streets was rated as the highest priority;
WHEREAS, on August 5, 2019, a majority of property owners along First Street submitted a signed petition stating their interest in undergrounding the overhead utilities along First Street between Alameda Boulevard and D Avenue;
WHEREAS, the proposed boundaries of the District are shown on the draft map included as Exhibit A to this Resolution;
WHEREAS, preliminary planning and costs estimates have been completed and it has been determined the project is feasible;
WHEREAS, there are still a number of unknow conditions that may affect the costs of the proposed project for both the property owners and the City; WHEREAS, in order to give the City and the property owners a better understanding of the project costs and the layout of the utility infrastructure, the proposed project would need to be designed;
WHEREAS, in order to continue moving the project forward in the most expeditious manner, it is recommended a resolution be approved so the design can be initiated; WHEREAS, any project seeking to underground overhead utilities requires a resolution to initiate design with SDGE and utility companies, and these designs are required to prepare the bid documents for construction advertisement;
WHEREAS, in order to prepare the design(s) fees will need to be paid and additional expenses will be incurred;
Attachment 1
Attachment 1
WHEREAS, the expenses will be paid in advance by the City, included in the cost of the project and subject to cost share with the property owners if or when the project commences; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Coronado as follows: it is in the City and the Property Owners’ best interest to have a project design prepared.
Furthermore, staff is directed to work with the affected utilities to prepare and pay for a project design in an amount not to exceed $100,000.
1. That the above recitations are true.
PASSED, ADOPTED, AND APPROVED by the City Council of the City of Coronado, California, at a regular meeting thereof this 6th day of December 6, 2022 by the following vote to wit:
AYES:
NAYS:
ABSTAIN:
ABSENT:
APPROVED:
____________________________________
RICHARD BAILEY, Mayor of the
City of Coronado, California
ATTEST:
__________________________________
JENNIFER EKBLAD, City Clerk of the
City of Coronado, California
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