Title
Public Hearing to Consider the Formation of the Otis/Broadway Underground Utility District (UUD); and
Adoption of Resolution Establishing the Otis/Broadway Underground Utility District. (Alameda Municipal Power)
Body
To: Honorable Mayor and Members of the City Council
From: David L. Rudat, Interim City Manager
EXECUTIVE SUMMARY
Alameda Municipal Power (AMP) has an Underground Utility District Policy that includes criteria for selecting districts for undergrounding that deliver the maximum public benefit. After following the comprehensive steps outlined in this policy, the Public Utilities Board (PUB) recommends the formation of the Otis Broadway Underground Utility District. If approved, design work may take 12 to 18 months with construction lasting 24 to 36 months. The Otis/Broadway District is approximately 1.2 miles in length and will affect 266 properties. The project is estimated to cost $1.6 million and is funded by the Underground Utility District Fund (UUDF). The Public Works Department is responsible for the installation or conversion of streetlights and traffic signal wiring within each district at an estimated cost of $200,000. Customers will not incur any costs in conversion of their property, except in the rare occasion that their service lateral exceeds 100 feet.
BACKGROUND
The City of Alameda (the City) established Ordinance No. 2212 on September 18, 1984, creating regulations and procedures for removing overhead utility facilities and installing underground facilities by means of the underground utility districts (UUD). AMP is the lead City agency for the UUD Program. The Program is funded through an UUD Fund established by AMP. AMP sets aside two percent of the annual electric retail sales revenues from residential and commercial customers for underground district projects, amounting to approximately $1M per year.
The AMP electric system has 86 pole miles of overhead distribution lines and 179 circuit miles of underground distribution lines. Twenty-five UUDs have been completed in Alameda since 1984. However, by 2011 there were significant customer concerns with continuing the existing UUD process that coincided with the start of the Webster Street Crossings UUD (an area that includes streets that cross Webster Street from Taylor Avenue to Buena Vista Avenue). These issues included the costs of conversion for property owners and businesses.
On May 21, 2012, the Public Utilities Board (the Board) approved recommending to the City Council the discontinuation of work on Phase 6 of the Underground District Program. The Board tasked staff with redesigning the undergrounding process due to concerns voiced by the members of the Webster Street crossings project. The City Council accepted the Board’s recommendation on July 7, 2012, and directed staff to develop a Utility Underground District Master Plan.
On March 3, 2015, the City Council approved the redesigned Underground Utility District Policy. The revised UUD Program includes criteria for selecting districts with the maximum public benefit, includes public participation at multiple points in the process, and eliminates conversion costs for the majority of customers. There are five steps in the redesigned process:
1. The District Nominating Board (DNB) recommends a set of UUDs for Technical Advisory Committee (TAC) consideration;
2. The TAC reviews the DNB’s list of nominated UUDs and selects one to four for City Council consideration;
3. The TAC presents one to four proposed UUD(s) at a Town Hall Meeting and collects feedback;
4. Following the Town Hall, a District Selection Survey is mailed to all customers in the proposed UUD(s). Based on the survey feedback and Board consent, the TAC recommends a prioritized UUD list to the City Council for approval; and
5. City Council approves prioritized UUD list.
DISCUSSION
The City Council appointed four members from the public and one member from the City’s Public Works Department to the DNB on April 5, 2016. The DNB met seven times between June 30, 2016, and December 8, 2016. All meetings were public and meeting minutes and other materials were posted to AMP’s webpage.
The DNB recommended the following areas be forwarded to the TAC for consideration:
District Nomination Board Recommended List of UUDs
1. Otis Drive - High Street to Broadway and south of Otis Drive, including Broadway, Pearl Street, Versailles Avenue, Mound Street, Waterton Street, and Court Street
2. Webster Street - all crossings - Central Avenue to Pacific Avenue including Eagle Avenue - West of Constitution Way
3. Broadway - Buena Vista Avenue to Clement Avenue
4. Broadway - La Jolla Drive to Encinal Avenue; La Jolla Drive
5. Central Avenue - Eighth Street to Webster Street including Garden Way
6. Fernside Boulevard from Encinal Avenue to High Street, including lines on the Lincoln Park access road
7. Park Street - San Jose Avenue to Otis Drive
The TAC, composed of members from the impacted utilities and one member of the Public Works Department, reviewed the technical feasibilities of moving lines underground in the areas recommended by the DNB. The TAC recommended moving forward with four of the seven areas that had been proposed by the DNB.
These four areas were combined into two districts:
Otis/Broadway District - along Otis Drive from High Street to Broadway Street including streets south of Otis Drive (i.e. Pearl Street, Versailles Avenue, Mound Street, Waterton Street, and Court Street); and along Broadway Street from La Jolla Drive to Encinal Avenue.
Webster Crossings District - all Webster Street crossings from Taylor Avenue to Buena Vista Avenue including Eagle Avenue, west of Constitution Way; and along Central Avenue from Eighth Street to Webster Street.
AMP held a Town Hall meeting on February 28, 2018, to present these two recommended areas to the public for information and to gather feedback. Approximately 25 residents attended. The majority of the attendees were highly supportive of undergrounding the utilities in Alameda. Several individuals were concerned with the disruption that would be caused by construction.
Staff sent a letter in July 2018 to owners and tenants located within the proposed districts inviting them to respond to an online survey by the end of August 2018 to indicate if they were in favor of the proposed undergrounding. The response to the survey is summarized below and is attached as Exhibit 2.
|
Survey Results |
Invitations Sent |
Responses |
In Favor |
Not In Favor |
|
Otis/Broadway District |
303 |
41 |
40 |
1 |
|
Webster Crossings District |
270 |
32 |
18 |
14 |
Survey respondents not in favor of the proposed UUD were asked to provide the primary reason for not supporting the district. Most of these responses indicated that individuals were concerned about costs they might incur during the conversion and in the future for maintenance of their underground service lateral.
Based on the feedback received from public meetings and the directed survey, the TAC is recommending approval of the proposed Otis/Broadway UUD.
The proposed Otis/Broadway UUD includes the number one and number four priority areas recommended by the DNB. Only one survey respondent was not in favor of this district with the reason given that they were concerned the construction may damage the foundation of their house.
While the total number of survey responses was not high, the number of negative responses to the proposed Webster Crossings District stands in stark contrast to the Otis/Broadway District. This current opposition, combined with the fact that previous opposition for undergrounding in this area led to the discontinuation of the previous undergrounding program in 2012, led to staff’s recommendation to not approve this district at this time.
AMP presented these recommendations to the Public Utilities Board at their November 5, 2018, meeting. Prior to the meeting, AMP mailed letters to tenants and property owners (574) within the proposed Otis/Broadway and Webster Street Crossings districts notifying them that the PUB would be considering recommending formation of the Otis Broadway Underground Utility District at its November 5, 2018meeting. There were no public comments on the proposed district at the meeting and the PUB approved making the recommendation to the Council.
If the Otis/Broadway District is approved, the TAC will begin the process to engineer and construct the undergrounding of the district. Design work may take 12 to 18 months with construction lasting 24 to 36 months. The Otis/Broadway District is approximately 1.2 miles in length and will affect 266 properties.
Notice of Recommended UUD:
All affected property owners within the proposed Otis/Broadway Underground Utility District were notified by mail of the recommendation to establish this area as a new UUD as required in Alameda Municipal Code Section 19-4.2.
Requirement for Property Owners in an Established UUD:
Alameda Municipal Code Chapter 19-4 and applicable State law provide for companies with overhead facilities to place their facilities underground using funds collected from their various rate structures. This proposed district includes facilities owned or operated by AT&T, Comcast and the City of Alameda’s streetlights and traffic signals. Under the revised undergrounding program, customers will not incur any costs in conversion of their property except in the rare occasion that their service lateral exceeds 100 feet.
FINANCIAL IMPACT
AMP estimates the cost of the conversion work for their facilities at $6.1M. The funds for this activity are budgeted in AMP’s account for Underground Utility District Fund (UUDF). The City, through the Public Works Department, is responsible for the installation or conversion of streetlights and traffic signal wiring within each district at an estimated cost of $200,000. AT&T and Comcast will be responsible for undergrounding their facilities in conjunction with the work being done by the City and AMP.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
Alameda Municipal Code Section 19-4, Underground Utility Districts
ENVIRONMENTAL REVIEW
This action is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines sections 15061(b)(3) and 15302(d) Replacement or Reconstruction.
RECOMMENDATION
Hold a public hearing to consider the formation of the Otis/Broadway Underground Utility District; and adopt a resolution establishing the Otis/Broadway Underground Utility District.
Respectfully submitted,
Nicolas Procos, General Manager
By,
Gary S. Spenik, Utility Project Manager
Exhibits:
1. District Map
2. Survey Results