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HomeMy WebLinkAbout16 - Rescinding Underground UD No. 22 and Establishing Underground UD No. 22a 16-1 NEWPORT BEACH City Council Staff Report COUNCIL STAFF REPORT CITY OF March 22, 2016 Agenda Item No. 16 ABSTRACT: The City Council established the undergrounding of overhead utilities on Balboa Boulevard between West Coast Highway and 22nd Street as the next priority project and directed staff to proceed with a Rule 20A undergrounding project. In N ovember 2013, the City established Underground District No. 22. On January 12, 2016 property owners in three areas directly adjacent to the Balboa Boulevard project voted in favor of forming three Rule 20B Assessment Districts. It is now necessary that the City Council hold a Public Hearing to rescind the current Underground Utility District No. 22, establish Underground Utility District No. 22a with new boundaries to coincide with these new adjacent assessment districts and order the removal of poles, overhead wires, and associated overhead structures within the district boundary. RECOMMENDATION: a) Conduct a Public Hearing establishing Underground Utility District No. 22a; b) Adopt Resolution No. 2016-41, A Resolution of the City Council of the City of Newport Beach, California, Rescinding Underground Utility District No. 22 and Establishing Underground Utilities District No. 22a (Balboa Boulevard between West Coast Highway and 22nd Street, Including Court Street between 21st and 20th Streets) and Ordering the Removal of Poles, Overhead Wires, and Associated Overhead Structures within Underground Utility District No. 22a; and c) Direct staff to initiate project implementation. TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: David A. Webb, Public Works Director - 949-644-3311, dawebb@newportbeachca.gov PREPARED BY: Michael J. Sinacori , Assistant City Engineer msinacori@newportbeachca.gov PHONE: 949-644-3342 TITLE: Resolution Rescinding Underground Utility District No. 22 and Establishing Underground Utility District No. 22a – Balboa Boulevard between West Coast Highway and 22nd Street, Including Court Street between 21st and 20th Streets Resolution Rescinding Underground Utility District No. 22 and Establishing Underground Utility District No. 22a - Balboa Boulevard between West Coast Highway and 22nd Street, Including Court Street between 21st Street and 20th Street March 22, 2016 Page 2 16-2 FUNDING REQUIREMENTS: Project costs will be funded by the City’s Rule 20A allocat ion which is funded by electric rate payers collected by Southern California Edison (SCE). DISCUSSION: California Public Utilities Commission (CPUC) sets Rule 20 policies and procedures for the conversion of overhead utilities to underground. Rule 20 undergrounding projects may either be financed by utility rate funds, combined rate funds and local tax proceeds, or private funds; depending on whether the project is classified under Rule 20A, 20B, or 20C provisions. Rule 20A projects are paid for by the util ity’s ratepayers. To qualify for funding through these proceeds, projects must produce a benefit to the general public, not just customers in the affected area, by satisfying one or more of the following criteria:  The location has an unusually heavy concentration of overhead facilities;  The location is heavily travelled;  The location is an arterial or major collector road in a city’s general plan; and/or  The overhead equipment must be located within or pass through a civic, recreational, or scenic area. In November 2013, the City Council established Underground Utility District No. 22. At that time, it was understood that the undergrounding would have to extend slightly into the residential neighborhood alleys to provide a reasonable ove rhead-to-underground terminus. However, during the initial stages of the design process it was realized that extending into the residential alleys was problematic with the lack of terminus points. SCE notified the City that either the perpendicular alleys would need to be undergrounded (though not eligible with 20a funds) or the project would need to terminate at the Balboa Blvd public right-of-way boundary. That message was relayed to the adjacent property owners and as a result , three 20b underground districts were formed on January 12, 2016 to be completed in concert with the Balboa Blvd. 20a project. Only parcels with direct connections to the Rule 20a undergrounding are included within the district boundary. Additionally, the undergrounding along a short section of Court Street, from 20th Street to 21st Street has been added to the project boundary. This area was the terminus point of a prior undergrounding district that consisted of residential/commercial properties near the historic McFadden Plaza with poles that are very visible from the Balboa Boulevard scenic corridor. SCE has concurred that the Court Avenue area can be included in the 20a project. Resolution Rescinding Underground Utility District No. 22 and Establishing Underground Utility District No. 22a - Balboa Boulevard between West Coast Highway and 22nd Street, Including Court Street between 21st Street and 20th Street March 22, 2016 Page 3 16-3 With the three Rule 20b projects now approved and under design, and with the adjustment of this Rule 20a boundary to coincide with the three 20b districts, the entire area will now be constructed as one project. The current anticipated project schedule is to begin construction in Fall 2017 if SCE or the other utilities do not have any significant design complications. Staff recently met with the SCE design team and they currently are on schedule. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15302(d) (conversion of overhead electric utility distribution system facilities to underground including connection to existing overhead electric utility distribution lines where the surface is restored to the condition existing prior to the undergrounding) of the CEQA Guideline s, California Code of Regulations, Title 14, Chapter 3, because it has no potential to have a significant effect on the environment. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). Notification of this Public Hearing was distributed (mailed and posted) to affected property owners pursuant to City’s Municipal Code Section 15.32.020. ATTACHMENTS: Attachment A – UUD No. 22a Resolution Attachment B - Proposed District Revised Boundary Map and Legal Description ATTACHMENT A RESOLUTION NO. 2016 - ______ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH RESCINDING UNDERGROUND UTILITIES DISTRICT NO. 22 AND ESTABLISHING UNDERGROUND UTILITIES DISTRICT NO. 22a (BALBOA BOULEVARD BETWEEN WEST COAST HIGHWAY AND 22nd STREET, INCLUDING COURT STREET BETWEEN 21ST AND 20TH STREETS) AND ORDERING THE REMOVAL OF POLES, OVERHEAD WIRES, AND ASSOCIATED OVERHEAD STRUCTURES WITHIN UNDERGROUND UTILITY DISTRICT NO. 22a WHEREAS, Chapter 15.32, entitled “Underground Utilities”, of the Newport Beach Municipal Code (“NBMC”), authorizes the City Council to call public hearings to ascertain whether the public health, safety or welfare requires the removal of poles, overhead wires and associated overhead structures within designated areas of the City, and underground installation of wires and facilities for supplying electric, communication, and similar services; and WHEREAS, on November 12, 2013, pursuant to NBMC Section 15.32.020, the City Council approved Underground Utility District No. 22 (Balboa Boulevard between West Coast Highway and 22nd Street) pursuant to Resolution No. 2013-82 ; and WHEREAS, the boundary of Underground Utility District No. 22 no longer coincides with the project boundary due to design changes and additions. Proposed Underground Utility District No. 22a establishes new boundaries that are consistent with these design changes and additions; and WHEREAS, the City Clerk provided notices to all owners of property and affected utilities within the proposed Underground Utilities District 22a at least fifteen (15) days prior to the date of the public hearing, as prescribed by said NBMC Section 15.32.020; and WHEREAS, at the public hearing the City Council reviewed the report submitted by the Public Works Director pursuant to NBMC Section 15.32.030 and heard the testimony of all interested persons. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The public necessity, health, safety and welfare require the removal of poles, overhead wires and associated overhead structures used to supply electric, communication, and similar services, and their installation underground within the following described areas of the City of Newport Beach: Those parcels of land located in the City of Newport Beach, County of Orange, State of California, as described in Exhibit “A” and depicted in Exhibit “B” (“District 22a”). 16-4 For reference, the boundary line for the land described above is shown on City of Newport Beach Drawing No. SD-5084-S, on file in the office of the Public Works Department. The City Council further resolves: Section 2: District 22a, which includes Balboa Boulevard and Court Street, along which the work is to be performed, is extensively used by the general public and carries a heavy volume of pedestrian and vehicular traffic; and Section 3: District 22a is hereby declared to be an underground utilities district, to be known as Underground Utilities District No. 22a, and the affected utility companies and property owners are ordered to cause the required removal and underground installation work to be done. Section 4: The date by which the required removal and underground installation work is to be accomplished and by which the affected property owners must be ready to receive underground utility service is June 2018. Section 5: The City Clerk is directed to notify all affected utility companies and all persons owning real property within said District of the adoption of this resolution within ten (10) days after its effective date. The City Clerk shall further notify such affected property owners of the necessity that if they or any person occupying such property desire to continue to receive electric, communication, or similar or associated service, they or such occupant shall provide all necessary facility changes on their premises so as to receive such service from the lines of the supplying utility or utilities at a new location, subject to the applicable rules, regulations, and tariffs of the respective utility or utilities on file with the Commission, in accordance with NBMC Section 15.32.080. Section 6: This Project is categorically exempt under California Environmental Quality Act (“CEQA”) Regulation Section 15302(d), because it involves the conversion of overhead electric utility distribution system facilities to underground including connection to existing overhead electric utility distribution lines where the surface is restored to the condition existing prior to the undergrounding. Section 7: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting this resolution. Section 8: Resolution No. 2013-82, adopted November 12, 2013, establishing Underground Utility District No. 22 is hereby rescinded Adopted this 22nd day of March, 2016 _______________________________ Diane B. Dixon, Mayor ATTEST: 16-5 _________________________ Leilani I. Brown, City Clerk 16-6 16-7 ATTACHMENT B 1 6 - 8 1 6 - 9 1 6 - 1 0