HomeMy WebLinkAboutRes 2014-81 - Undrgrnd Utilities - Tamarisk and Dist 12 CITY OF PALM DESERT
OFFICE OF THE CITY MANAGER
STAFF REPORT
REQUEST: ADOPTION OF RESOLUTION NO. 2014- 811NITIATION OF
ASSESSMENT DISTRICT PROCEEDINGS FOR
UNDERGROUNDING OF UTILITIES AT PALM QESERT
TAMARISK AND ADJACENT PROPERTIES (DISTRICT 12) AND
TAKING CERTAIN RELATED ACTIONS
DATE: September 25, 2014
CONTENTS: Resolution No. 2014-81
Petitions Cover Page�
City Clerk Certification of Petitions
Southern California Edison ROM Letter
Recommendation:
Waive further reading and adopt Resolution No. 2014- 81initiating proceedings for
the undergrounding of overhead electric and communication utility facilities to
underground facilities pursuant to the provisions of Chapter 12.12 of the Code of the
City of Palm Desert, California and the Municipal Improvement Act of 1913.
Executive Summary:
Adoption of the above resolution begins the process of forming an expanded
assessment district for undergrounding of utilities in the Palm Desert Tamarisk area that
includes 14 additional properties. If the Council approves the resolution, the next step
will be for the City to hire an assessment district engineer and pay Southern California
Edison an advanced engineering fee that will allow the design of the project to move
forward.
Discussion:
On February 27, the City Council authorized staff to take the necessary steps to begin
the process of forming a utility undergrounding assessment district that would include
87 parcels in the Tamarisk neighborhood. At that time, staff had recently received a
petition from a group of property owners on Heliotrope Drive stating their desire to also
form a utility undergrounding assessment district. Given the proximity of these two
proposed projects, staff thought it prudent to investigate whether the two similar projects
should proceed separately or together.
Resolution No. 2014-81
Staff Report
Tamarisk/District 12 Utility Undergrounding District Staff Report
September 25, 2014
Page 2 of 3
As part of its action on February 27, Council directed staff to work with Southem
California Edison to determine whether it would be feasible and cost effective to
combine the two proposed districts into a single project.
On July 23, Southern California Edison (SCE) provided the City with a new rough order
of magnitude cost estimate for undergrounding its utility lines and related infrastructure
for the expanded district of $2.8 million ($2,800,000.00.) The estimate for Tamarisk
alone was $2.5 million ($2,500,000.00). SCE's letter indicated that combining the two
proposed utility undergrounding districts into one project would make both financial
sense and logistical sense. SCE has indicated that residents within the proposed
districts, the City, and Edison itself could realize significant benefits by doing these two
proposed projects together.
When the Council last took action, residents in the original Tamarisk District had
obtained the necessary number of certified signatures from property owners on a
petition in support of the formation of a utility undergrounding district to move that
project forward. The expansion of the district's boundaries from 87 parcels to 101
parcels, including nine homes on Heliotrope Drive, four homes on Purslane Street, and
one additional home on Salt Cedar Street, meant that additional signatures were
required to meet the 70 percent (70%) threshold that would qualify the project to
participate in the City's utility undergrounding assistance program.
Residents have since submitted additional signatures bringing the total number of
signatures certified by the City Clerk to 72. This represents 71 percent (71%) of the 101
parcels within the district.
Southern California Edison's preliminary rough order of magnitude cost estimate has an
estimated accuracy variance of plus or minus 40 percent (40%). Verizon and Time
Wamer Cable have provided similar rough order of magnitude estimates for their portion
of the infrastructure to be undergrounded in the amounts of $160,116.99 and
$133,811.00 respectively for a total rough estimate project cost of $3,093,927.99. The
project's estimated cost has been discussed among the property owners. Attached to
this report is the petitions cover page showing the information that property owners
received.
More information and a more precise cost estimate of the expanded Tamarisk Utility
Undergrounding District (District 12) will be available after Southern California Edison
(SCE) has completed its design of the project. SCE requires a calculated Advanced
Engineering Fee to begin final design of the project. If the City Council approves staff's
recommendation, staff will submit the required written request to SCE along with the
fee, which typically is approximately 10 percent of the initial estimated project cost.
After the fee has been paid, it will take approximately ten months to finish the design
and put the project out to bid. Once the bid prices are known, the engineer will spread
the assessment and complete the engineer's report.
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� Resolution No. 2014-81
Staff Report
Tamarisk/District 12 Utility Undergrounding District Staff Report
September 25, 2014
Page 3 of 3
If all goes well, ballots will be sent out to the property owners for the confirmation vote. If
successful, construction could start in 2015.
Strategic Plan Objective
The undergrounding of overhead utilities is consistent with the Envision Pa/m Desert —>
Forward Together strategic plan's goals for Land Use, Housing and Open Space as it
will help preserve view corridors from expanding above ground utility infrastructure.
Fiscal Analysis
According to SCE's most recent rough order of magnitude cost estimate, combining the two
proposed utility undergrounding assessment districts into one project will yield monetary
savings for the City and residents as well as logistical benefits for SCE.
The City Council has already appropriated $400,000 from Account #400-4256-464-4001 to
pay for engineering fees. Although the General Fund will initially advance the funds for this
work, it is the intention of the Successor Agency to reimburse the City from redevelopment
bond proceeds as utility undergrounding improvements are included in the bond covenants.
On February 27, the City Council and the board of the Successor Agency to the Palm
Desert Redevelopment Agency approved an agreement that will allow this to happen. That
agreement has also been approved by the Oversight Board to the Successor Agency to the
Palm Desert Redevelopment Agency.
CiTY COUNCILA�TION
APPROVED DF.NiED —
Prepared By: RE E D OTHER -
MEETING DA ��' " v/
, / ,
l YES: ��k� �� �'
David Hermann, Management Analyst NOES:
ABSENT:
ABSTAIN:
Rev' ed and Concur: VERIFIED BY: � ��
Original on File with Ci lcrk's Office
Paul S. Gibson, Director of Finance
Approval:
i' � ./. 1�'�
John . Wohlmuth
City Manager/Executive Director of the Successor Agency of the Palm Desert
Redevelopment Agency
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A
RESOLUTION 2014-81
RESOLUTION OF THE CITY OF PALM DESERT, CALIFORNIA
INITIATING PROCEEDINGS FOR THE UNDERGROUNDING OF OVERHEAD
ELECTRIC AND COMMUNICATION UTILITY FACILITIES TO UNDERGROUND
FACILITIES PURSUANT TO THE PROVISIONS OF CHAPTER 12.12 OF THE CODE
OF THE CITY OF PALM DESERT, CALIFORNIA AND THE MUNICIPAL
IMPROVEMENT ACT OF 1913.
WHEREAS, the City Council desires to initiate proceedings for the
formation of a utility/underground assessment district hereinafter referred to as
the "District" pursuant to the provisions of Chapter 12.12 of the Code of the City
of Palm Desert, Califomia and the Municipal Improvement Act of 1913 for the
formation of said underground assessment district and the levy and collection of
taxes and assessment by the County of Riverside for the City of Palm Desert to
pay for the improvements and the activities therein;
And
WHEREAS, pursuant to the above authority, a written petition of the
property owners within the said District representing more than seventy percent (70%)
of the proposed assessment to be levied has been presented to the City Council; and
WHEREAS, the City Council has determined that it is necessary that an
engineering report be prepared for presentation at a public hearing to provide
information about the extent of the utilities participation and the estimates of the total
72500.0000118 555841.I
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Resolution No. 2014-81 ' �
costs to the City and the affected property owners which shall also include an estimate
of the time required to complete said underground installation and removal of overhead
facilities.
NOW, THEREFORE, the City Council of the City of Palm Desert,
California does hereby resolve as follows:
1. The above recitals are true and correct.
2. The boundaries of the district are established in accordance with
Exhibit "A" attached to this Resolution and made a part hereof and
designated as the Palm Desert Tamarisk Utility Underground
Assessment District (District 12).
3. City Council does hereby authorize and order a report to be
prepared to provide all such information as is required for
presentation to the participants to be assessed within the said
District.
4. That upon receipt of such report, the City Council will set a public
hearing at which time all persons desiring to be heard may present
written or oral comments to said report and formation of such
District.
os„sno,a
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72500.00001\8555841.1
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Resolution No. 2014-81
PASSED, APPROVED AND ADOPTED this day of
, 2014, by the City Council of the City of Palm Desert, California, by
the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
Van Tanner, Mayor
City of Palm Desert, California
ATTEST:
By:
Rachelle Klassen, City Clerk
City of Palm Desert, California
APPROVED AS TO FORM:
By:
David J. Erwin, City Attorney
City of Palm Desert, Califomia
osrisno,a
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MEMORANDUM RE UTII.ITY P4LE UNDERGROUNDING
To: The Ho�sble Jan Hamik,Mayor
John M.Wdilmuth,CitY�8a
David Hermann,P�lic Infocmation Officer �
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Date: Apri123,2013 - c��
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Subject: Formation of Ass�a�at Dbtrkt to Unda�p�+Qosd UH�Peks a8d Wins� rn�
This memo pmvides the City with sdditional sigostia�.s to thoge inchided in our memos of April
4 and 15,2013. By our tally w�e have oolkd�ed 75°Yo of th�si�reqirired. We have the
promise of ane more signabme,from Tmnerislc,and will contim�e to g�er si�until the
City certifies our results. �
E�c. Signahire PaSes
� �
To: Cihr Counal
City of Palm Desert
PETRION FOR UTILITY tlIi1DER�3ROUNDING
SPEClAL.ASSES8MEt�lT PROCEEDIt�1GS
1. We,the undersigned,are the o�vnets o�the peroels oF land wdhin the proposed
assessmer�t distrid sf�oMm on the map aVached as'E�bd A,"Mfiid� n�ap is a
part of this docurr�ent. The pre�nirary boia�dary for District 2013-01A
enoompasaes 8T penoels af land.
2. We hereby file with the City Clerk of the City af Pakn Desert this P�etition in order
to petjtion the City to order the conv�ersion af the e�sting ovefiead etectrical and
oonununication tacil'fies to underground bcations within the p�posed
aRsesameM distric�,�ogeU�er with aPPurbenanoes and appu�6enant work, and to
under�aic�e prooeedings tor the�orrna�on of an etss�essment disfid for purposes of
assessment of such paroels ofi land bo pay for the oo�ts of suctt improvemenfis
pucsuar�t�the Murticipal Impr+o�vement Act of 1913(Ca�forrua Sbree�s and
Highwsys Code, Section 10000 e�'�•)
3. We underatand tttet the tio�al cost oF the itnprov�emenfis w�l be charged fio the
paroets af I�u�d within the assessmerrt distric�that speciaRy benetit from the
improvemertCs in proportlon fi�the special benefits de�ermined t�be r+eceived by
the respediv�e paroels in the a�sessment d'�.
4. We understand that Mrillaut exbensnre P��Y���'�9�, only an
e�imaibe of ltte co�t of the oonMersion can be previded at this time.The fiotal
estimaEed oo�is 52,415,000 indud'm9 en�ineeri�8 arxi desi8�as w�as
ir�c,id�ibed auxl flnarx�ng oo�s.ll�s es�irr�a�a is subject�o the final desi8n o#the
impro�remenls�d the fmal oogt may exoeed or be less than the afaementioned
es�mabe.
5. We un�stand tt�t the estlmaled cost sfiated abo+re does not ir�tckide the cost aF
��9, �����9, �A, a�ting e�ectricel s�d
oornmtmi�lon fac�lities, induding oonnections�1he o�wners' pnemises. locabed
on any paroel of tand with�the pr�ed �ment d�.The estlma�d
oo�t af stxh addrtional w�tc is epprox&naibely=4,000 per r+esidence and wiN
depend upon the len9th�d locaEiott of such w�otk.Tt�s w+ork may,at the o�tion
of the property awner� be perf�om�ed and paid for by the pr�operty owner or, if the
P��Y awner wishes, be irx�ded in ttte assessmerrt disfid oosts.
,1
6. Y�Q W IW�.7W���UIG��5��� a �t���� YIG
Prol�• ���9 P��sPe��, a deta�ed ooat estimst�e, and a
' division of the oos�s artwng the bene�it�ed paroels of land.tl�at the C�y vri#
oondud a pt�c he�ring on the fan�atiott of the proposed siss��ssment di�trict,
the ondering af fhe propo�ed impr�o�remenCs, and the levying o#tlie proposcd
assessn�ents, �d tl�the City w�maa no�tice of the estkna�ed amou�t of the
aissessment and da�e.time, and loca�on of the pub�ic h�ring to�ch P�nY
owner vvitl�in tl�e pnoposed assessment�isb�icx.
7. We�der�and that the Cityy Courx�must abandon the prooeedings to fam an
assessmer�t district�the everrt of a majority protest urxler Article XIIID if, at the
condusion of the he�ring on the assessment distric�,the ballots submit�ed (and
not withdrewn) �opposition to the pr+oposed asseasmen�s axoeed fhe ballofis
subm'dbed(and no�withdrawn)in favor af tl1e assessmenbs,with baaa�s weigttted
acoord'mg t�the proportional financ�al ob�gation af the af�iecbed properties.
8. We unde�tand that in the absec�oe ofi a ma�oritY Protest(aa defir�ed in psragreph
7 above),the City Courx�may�folbwing corx�usion af the public he�ring on the
ProPosed as�sments, oonftrm the proposed assessmer�ts end order the
P� �P�nfis.We urid�and Uta�the City Coundl may rneke
changes in oonnedion with U�e assessment distriat, inc�uding but not I'�nibad to,
changes�the Proposed impr�overr�errts('induding eliminetion af irr�rovements)
and oost estimabes(indudirig Une i�ems�t ttte engineer's reP�); P�+��
twv�rever,this Petition wiU not be deerr�d as oonsent to any in�x�ease in the
amouM of arry individual assessment beyond the amourrts se�t forth in the
engineer's report.We unde�stand that at the oondusion af the pubHc he�ing� if a
decision is made by the Cily Cowx��o pnooeed,the assessmer�s w�l becorne
due and peyeble within the fobo�win9 30-daY Period;mat bonds may be issued by
the City tio represe�t any assessmenfis whic�r�emain ur�aid at the end aF such
�Y Period; and that annuel assessn�e�t i��kr�nec�ary�PeY
principel and in�est on itase bor�ds, mainber�anoe co�ts end administrati+re
cos�s vf the Cily wdl tltene�er be levied and ooNec�ed.
When signed�um to:
City Cle�ft
City of Palm Desert
73510 Fred Wat�ng Driv�e
Pakn Desert, Cs�ifomie 92260
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pAi.M I�I?SIiRT, CALIFORtiIA 922G0-2j]H
THL: 760 346-06��
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TO: Honorable Mayor and Members of the City Council
FROM: City Clerk
DATE: September 16, 2014
SUBJECT: Formation of Undergrounding Utility Assessment District No. 12
�Tamarisk) - Certification of Petitions
I, Rachelle D. Klassen, City Clerk of the City of Palm Desert, California, hereby
certify the following information.
Total District Parcel Count: 101
Number of Signatures Received: 75
Total Number of Signatures Ce�tified: 72
The 72 certified signatures represent 71%of the property owners within the District,
thereby qualifying it for initiation proceedings. The petitions are on file and available for
inspection in the Office of the City Clerk.
RACHELLE D. KLASSEN, CITY CLERK
CITY OF PALM DESERT, CALIFORNIA
>,, ...:�,. :,,,�,:
►�,��,'��jt SUUIHFIt�l.�Ut�)It\I\
P y� E D I S O N Jeanifer Cusack
�,�- i.uc:il I'ul�lic \FF�ir.
Itr�i�,n \f:ti:r,ci
. i� . .•� i,t�;:�i�;.,� ir •. ,
July 23, 2014
Mr. David Hermann
Pubiic Information Officer
City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260
Subject: Rough Order of Magnitude Cost Estimate
Rule 206—Tamarisk District 12 and Heliotrope Dr. -Assessment District
Undergrounding Project
Dear Mr. Hermann,
Rule 20 Project Management has reviewed the proposed Rule 20B—Tamarisk District 12
and Heliotrope Dr. Assessment District project, consisting of 101 parcels in the City of Palm
Dese�t. The Rough Order of Magnitude (ROM)estimate for the project is $2,800,000
expressed in 2014 dollars. Per SCE Rule 206 costing, the estimate to install the new
underground system is reduced by the estimated cost to construct a new overhead system,
referred to as the"overhead equivalent credit". In addition, the estimate excludes the cost
of removing SCE's existing overhead facilities, which will be done at SCE's expense.
The estimated trench footage to install the new underground electric distribution system is
11,110 feet. The trench footage includes all main line as well as crossings and service
laterals in the public right-of-way up to the private property lines. Property owners will be
responsible for installing any necessary service conduit on private property as well as
modifying their electric panels to accept underground service.
The estimated trench footage for the new underground electric distribution system also
includes intercepting the existing underground water district well site service on Desert Lily,
and the existing underground system along the south side of Salt Cedar St. The total
estimated trench footage also includes new underground construction within the Marrakesh
Community to tie into and transfer system load ihat is currently feed from the pole line on
the eastern boundary of the proposed Undergrounding District.
To complete the undergrounding of these SCE facilities within the Tamarisk District 12 and
aJso including Heliotrope Dr. from south of Tamarisk District 12 to Haystack Rd. will require
a underg�ound conduit path to be installed from an existing SCE vault at the south end of
Heliotrope Dr. to an existing SCE vault on Haystack Rd. approximately 200' east of
Heliotrope Dr., crossing the drainage channel bridge befi+veen Calliandra St. and Haystack
Rd. Additionally, SCE will need to create an underground conduit path through private
properties, to maintain continuity of the primary circuitry from Haystack Rd. and Heliotrope
Dr. to Salt Cedar St.
The ROM estimated cost for this project is provided without the benefit of any site-specific
engineering and includes an estimated accuracy variance of+ 40%. Final costs upon
completion of project specific designs may vary significantly. Confirmation of the project
scope of work and SCE firm pricing will be provided after the final design is completed.
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After review of this estimate, should the City wish to proceed wlth the project, please
provide a written request for the calculated Advanced Engineering Fee necessary to
initiate the design process. SCE will provide the City with an invoice and upon
receipt of payment will begin the undergrounding designs for the project.
The ROM estimate is based on the following assumptions:
• The estimate is for the undergrounding of SCE's facilities only.
• Customer panel and service conversions for SCE electrical facilities are not included
in the estimate. Property owners are responsible for installing any necessary
underground service conduit on private property as well as any panel modifications
necessary to accept underground service.
• The estimate does not include the installation of streetlights.
• Trenching and pave restoration will be performed based on SCE's trenching and
paving standards.
• All other utilities will be participating and sharing joint trench costs to the extent
technically possible.
• Construction will be performed during normal working hours.
• All necessary permits to be issued to SCE shall be issued on a no fee basis.
• The estimate assumes continued cooperation from property owners, tenants,joint
utilities, and the govemmental agency.
Please oommunicate the cu�rent estimate and assumptions to the appropriate city staff.
Thank you for your assistance in this matter and should you have any questions please feel
free to call me at(760)202-4211.
Sincerely,
Jennifer Cusack
Region Manager, Local Public Affairs
cc:
Sam Newby, Rule 20 Project Manager
Tony Mathis, Rule 20 Program Manager
Talisa Lee, Rule 20 Project Analyst
Project Files