AgdaPkt 2012-05-21 - Laserfiche WebLink

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6.1. F. - Page 1 RE PO RT To the Honorable Mayor and City Council From the Cit Mana er May 21, 2012 SUBJECT PG&E Agreement for Middlefield Road Underground Utility District 2011-1 RECOMMENDATION Approve by motion the Rule 20A General Conditions and the Supplemental Agreement with PG&E for the Middlefield Road Underground Utility District 2011-1. BACKGROUND On February 6, 2012, the City Council adopted Ordinance 2376, which established the Middlefield Road Underground Utility District 2011-1 and thereby initiated the project to underground overhead utilities along Middlefield Road from Main Street to MacArthur Avenue. The City will be the lead agency for this project, and will design and construct the substructures. ANALYSIS Annually, PG&E undergrounds approximately 30 miles of overhead electrical facilities within their service area accordant with a tariff filed with the California Public Utilities Commission. For municipal projects, this program is referred to as PGE's Rule 20A. Other utility companies such as AT&T, Comcast and Astound also have similar programs and generally follow Rule 20A provisions. The cost for the undergrounding is paid by rate payers through future electric rates. PG&E, AT&T, Comcast, and Astound will install new transformers and other facilities related to the underground improvements, pull new conductors and cables, convert service panels from overhead to underground, and remove the existing poles along Middlefield Road from Main Street to MacArthur Avenue. In order to initiate the Underground District with PG&E, the agreement proposed consists of PG&E's General Conditions for Rule 20A Projects and the City's Supplemental Agreement. The Supplemental Agreement better clarifies the City's responsibilities when securing rights-of-way and providing survey information to PG&E for this project. If the proposed agreement is approved, next steps include (a) providing a list of 375 property owners, tenants, and businesses within the newly formed underground utility district to PG&E, and (b) circulating and processing project notices and right-of-entry forms. City staff will inform PG&E of parties unwilling to grant right-of- entry and attempt to resolve these issues by meeting and conferring with the property owners to explain the benefits of the undergrounding. Typically, property owners who