TO: ADAM PIRRIE, CITY MANAGER
FROM: BRAD JOHNSON, COMMUNITY DEVELOPMENT DIRECTOR
DATE: SEPTEMBER 10, 2024
Reviewed by:
City Manager: AP
SUBJECT:
Title
ADOPTION OF A RESOLUTION ESTABLISHING UNDERGROUND UTILITY DISTRICT 24
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SUMMARY
Southern California Edison (SCE) is discontinuing a program (Rule 20) that annually allocates funding to communities to convert aerial utility facilities to underground facilities. SCE implements such projects in areas designated by the City through the formation of an underground utility district.
The City is requesting SCE to underground existing power poles and associated equipment in the proposed Underground Utility District No. 24. This district will encompass Arrow Highway, from Indian Hill Boulevard to Villanova Drive.
In order to qualify for the Rule 20 program, the City is required to obtain at least 50 percent of the total project cost allocated by the SCE Rule 20 program work credit accruals, and/or additional funding assistance by Los Angeles County. The remainder of the total project costs will be provided by the City of Claremont.
In order to move forward with this undergrounding project, and allocate funding from SCE and Los Angeles County, the City must first adopt a Resolution establishing an underground utility district.
RECOMMENDATION
Recommended Action
Staff recommends the City Council:
A. Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CLAREMONT, CALIFORNIA, ESTABLISHING UNDERGROUND UTILITY DISTRICT NO. 24; and
B. Find this item is exempt from environmental review under the California Environmental Quality Act (CEQA).
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ALTERNATIVE TO RECOMMENDATION
In addition to the recommendation, there is the following alternative:
• Request additional information from staff.
FINANCIAL REVIEW
The estimated cost, provided by Southern California Edison, to complete the undergrounding of Underground Utility District No. 24 is $3,000,000. The City of Claremont currently has a Rule 20A balance of $845,785. Los Angeles County has approved funding for the City in the amount of an additional $1,000,000. This would leave the City responsible for identifying a further $1,154,215 in funding to complete the project. After the adoption of the Resolution establishing Underground Utility District No. 24, staff will work to identify a source of funding to fully fund the $3,000,000 cost of the project.
The staff cost to prepare this report is estimated at $1,072 and is included in the operating budget of the Community Development Department.
ANALYSIS
SCE Rule 20 is a tariff that governs the conversion of overhead electric facilities to underground facilities. This program follows an underground conversion policy established by the California Public Utilities Commission (CPUC). The tariff allocates rate funds to communities for undergrounding based on the ratio of customers served by overhead facilities to the total number of customers in the community.
On June 3, 2021, the CPUC issued a decision that revised the CPUC’s Electric Rule 20 program. The decision discontinued the authorization of new Rule 20 work credit allocations. At the time of the discontinuation, Claremont’s work credit balance was, and remains to be at this time, $845,785.
The City currently has an inactivate status for the Rule 20 program. In order to utilize these Rule 20 funds, Claremont must have an active status by June 2025. The establishment of the proposed Underground Utility District No. 24, by Resolution, will begin the process to place Claremont in active status and secure the work credits for this future project.
The use of Rule 20A funds is subject to specific criteria to create eligibility for the implementation of projects (Attachment A). Staff used the Rule 20A criteria to select a potential project site to utilize these funds before they expire. Through this process, staff determined that the Arrow Highway corridor met the Rule 20A criteria for project implementation. To create a project, staff identified the segment most impacted by overhead facilities and with the American with Disabilities Act (ADA) limitations caused by pole placements.
The proposed underground utility district will encompass the Arrow Highway segment from Indian Hill Boulevard to Villanova Drive (Attachment B). The SCE Rule 20A Project Management has reviewed the proposed limits of the project and has issued a Rough Order of Magnitude (ROM) cost estimate of $3,000,000 expressed in 2026 dollars (anticipated year of construction and includes an estimated accuracy variance of approximately 40 percent). The estimated trench footage for the project is 3,615 feet and includes all mainline trenching, crossings, streetlights, and service laterals.
Los Angeles County Supervisorial District No. 5 (SD5) has committed to provide the City of Claremont with $1,000,000 in uncommitted County Rule 20A funds to complete the undergrounding project and qualify for SCE’s funding requirements. In order to obtain this funding, the City must form an Underground Utility District, through the adoption of a City Resolution (Attachment C). Once the Resolution has been adopted, SD5 will complete and submit the Board letter for Rule 20A appropriation.
RELATIONSHIP TO CITY PLANNING DOCUMENTS
Staff has evaluated the agenda item in relationship to the City’s strategic and visioning documents and finds the following City Planning Documents: Council Priorities, Economic Sustainability Plan, General Plan, and the 2024-2026 Budget.
CEQA REVIEW
The undergrounding of utility lines is categorically exempt from review under the California Environmental Quality Act (“CEQA”). CEQA Guidelines section 15302(d) (“Replacement or Reconstruction” - Class 2), which specifically exempts “[c]onversion of overhead electric utility distribution system facilities to underground.” None of the exceptions in section 15300.2 of the CEQA Guidelines are applicable here. This undergrounding of utility lines on Arrow Highway from Indian Hill Boulevard to Villanova Drive will not have any cumulative impacts or significant effects, will not result in damage to scenic resources or historical resources, and will not be located on a hazardous waste site.
PUBLIC NOTICE PROCESS
The agenda and staff report for this item have been posted on the City website and distributed to interested parties. If you desire a copy, please contact the City Clerk’s Office.
Submitted by: Prepared by:
Brad Johnson Enrique Villalobos
Community Development Director Associate Engineer
Reviewed by:
Maria B. Tipping, P.E.
City Engineer
Attachments:
A - Southern California Edison Rule 20 Guidelines
B - Underground Utility District No. 24 Map
C - Resolution