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HomeMy WebLinkAbout2002-06-25 - AGENDA REPORTS - SOLEDAD UNDERGROUND UTILITY (2)CITY OF SANTA CLARITA AGENDA REPORT CONSENT CALENDAR City Manager Approval: Item to be presented by: DATE: June 25, 2002 SUBJECT: INITIATING PROCEEDINGS AND DECLARING THE CITY'S INTENTION TO CALL FOR A PUBLIC HEARING FOR THE FORMATION OF A SOLEDAD CANYON ROAD UNDERGROUND UTILITY DISTRICT NO. 2002-01— PROJECT NO. S4001 DEPARTMENT: Transportation & Engineering Services RECOMMENDED ACTION City Council adopt a resolution to initiate proceedings and a resolution declaring the City's intention and calling for a public hearing on August 27, 2002, for the formation of Soledad Canyon Road Underground Utility District No. 2002-01. BACKGROUND Currently, the City desires to underground all existing overhead utilities along Soledad Canyon Road from Camp Plenty Road east to Sierra Highway. At the present time, the majority of commercial and residential services are already provided underground. What remains are the main transmission lines along either side of Soledad Canyon Road within City rights-of-way, in addition to a small number of existing commercial services. In discussions with Southern California Edison (Edison), project estimates indicate that sufficient Rule 20A funds to complete the undergrounding are available. Based on the final design and construction bids received by Edison, there is a potential need for a modest future contribution of City funds. However, before Edison will begin the engineering design, the City must initiate and establish an underground utility district covering the area. This district will help prevent other utilities from constructing overhead lines in the future. The City has previously established procedures for the creation of an underground utility district in Chapter 13.32, Division 2 of the City's Municipal Code. The Code provides that after a public hearing, the City Council may determine that the project meets the established criteria for an underground utility district and adopt a resolution establishing the district. Establishment of this district will encumber the City's current balance of Rule 20A funds, as well as its entitlement through the year 2006. Encumbering these funds will ensure that the project will be completed without assessments or individual payments by property owners. Ado, pled: lLi-o �-2-- 104 Agenda Item. / UNDERGROUND UTILITY DISTRICT FORMATION — PROJECT NO. 54001 June 25, 2002 — Page 2 Although most businesses in this area are currently serviced underground, some businesses are still serviced through overhead lines. These locations may incur some cost to convert their meters within their buildings. These costs should be minimal, and are currently estimated to total less than $25,000.00. This estimate will be updated as the design is finalized. There are less than a dozen locations where this occurs. ALTERNATIVE ACTION 1. Other action as determined by the City Council. FISCAL IMPACT The City currently has a balance of $1,757,551.00 in the Rule 20A fund. There is a current deficit of approximately $1.1 million, and Edison has informed us that we may "borrow" our allocation of Rule 20A funds up to three years to cover the shortfall. The City will need to budget in Fiscal Year 2003/04 approximately $100,000.00 to cover some of the necessary street light conversions and possible conversions at property owner meter locations. The total cost of the project would be approximately $2.85 million. ATTACHMENTS Resolution Initiating Proceedings Resolution of Intention JR:lkl .cil\e4001._.degroundi g.dce