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RES-2007-029RESOLUTION NO. 2007- 0 2 9 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM AMENDING RATES, RULES AND REGULATIONS FOR THE SALE AND DISTRIBUTION OF ELECTRICITY AS ORIGINALLY ADOPTED BY RESOLUTION NO. 71R-478 AND MOST RECENTLY AMENDED BY RESOLUTION NO. 96R-25. WHEREAS, the City of Anaheim (Anaheim) maintains an electric transmission and distribution system for the furnishing of electricity to residents and inhabitants of Anaheim and has adopted Electric Rates, Rules, and Regulations for the sale and distribution of electricity; and WHEREAS, the Anaheim Municipal Code authorized the City Council to approve reasonable Electric Rates, Rules, and Regulations governing electric services and fees for providing electric services; and WHEREAS, Anaheim established Rule 20 of the Electric Rates, Rules, and Regulations to underground existing overhead electric facilities; and WHEREAS, the proposed revisions to Rule 20 of the Electric Rates, Rules, and Regulations is consistent with Anaheim's original intent to improve system reliability, coordinate with other infrastructure projects, balance geographic diversity of projects throughout the City, schedule projects with the available resources, and improve City aesthetics; and WHEREAS, the Public Utilities Board considered and recommended the proposal of the Public Utilities Department to revise Rule 20 of the Electric Rates, Rules, and Regulations by amending and updating the Rule, and adding provisions to Rule 20 to create the Home Undergrounding (HUG) Program and the Rear Property Undergrounding Program; and WHEREAS, based on the findings hereinabove made, the Public Utilities Board of the City of Anaheim recommended to the City Council that the Council adopt the findings of the Public Utilities Board with respect to the matters contained herein and adopt the changes to the Electric Rates, Rules, and Regulations as shown in Appendix A; and WHEREAS, based on the findings hereinabove made, the Public Utilities Board of the City of Anaheim recommended to the City Council that the Council, by Motion, certify that the adoption of the Electric Rates, Rules, and Regulations is statutorily exempt under the California Environmental Quality Act, Public Resource Code, Section 21080(b)(8), in accordance with Title 14 of the California Administrative Code, Section 15273(a); and WHEREAS, the City Council has considered the evidence and concurs with the findings as set forth herein above. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Anaheim as follows: 1. The findings set forth herein are hereby adopted by the City Council of the City of Anaheim. 2. The changes and additions to the Electric Rates, Rules, and Regulations, Rule 20 as set forth in Appendix A shall be, and are hereby adopted and shall be effective April 1, 2007. 3. The Public Utilities General Manager is authorized and directed to prepare, promulgate, publish, and take any and all actions necessary to implement the revisions to Rule 20 of the Electric Rates, Rules, and Regulations as set forth herein. THE FOREGOING RESOLUTION is approved and adopted by the City Council of the City of Anaheim this 6th day of Ma rch 2007, by the following roll -call vote: AYES: NOES: NONE ABSTAIN: NONE ABSENT: NONE ATTEST: F A 64777.1 Mayor Pringle, Council Members Hernandez, Galloway, Kring CLERK OF THE OF ANAHEIM CITY O F ANAHEIM MAYOR OF THE CIT AHEIM CITY OF ANAHEIM Utilities Financial Services 201 S. Anaheim Blvd. Anaheim, CA 92805 REPLACEMENT OF OVERHEAD WITH UNDERGROUND DISTRIBUTION AND TRANSMISSION FACILITIES UP TO 69kV A. The Utility will, at its expense, replace its existing overhead distribution and transmission facilities with underground distribution and transmission facilities up to 69kV along public streets and roads, and on public lands and private property across which rights -of -way satisfactory to the Utility have been obtained or may be obtained without cost of condemnation, by the Utility, provided that: 1. The City Council of the City of Anaheim in which such distribution and transmission facilities up to 69kV are and will be located has: a. Determined, after consultation with the Utility and after holding public hearings on the subject, that such undergrounding is in the general public interest for one or more of the following reasons: (1) Such undergrounding will avoid or eliminate heavy concentration of overhead distribution and transmission facilities up to 69kV; (2) Said street or road or right -of -way is extensively used by the general public and carries a heavy volume of pedestrian or vehicular traffic; Said street or road or right -of -way adjoins or passes through a civic area or public recreation area or an area of unusual scenic interest to the general public. b. Adopted a resolution creating an underground district in the area in which both the existing and new facilities are and will be located requiring, among other things, (1) that all existing overhead communication, electric distribution and transmission facilities up to 69kV and CATV in such district shall be removed, and (2) that property owners served from such electric overhead distribution facilities shall, in accordance with the Utility's rules for underground service, make all electrical facility changes on their premises necessary to receive service from the underground facilities of the Utility as soon as it is available, and (3) that the Utility is authorized to discontinue its overhead service. 2. The Utility will pay for no more than 100 feet of the customer's underground service lateral. For customers that require more than 100 feet of service lateral the Utility will make an evaluation and the Public Utilities General Manager may, at her discretion, authorize the additional cost of undergrounding such service lateral. (Continued) (3) ELECTRIC RATES, RULES AND REGULATIONS RULE NO. 20 Page No. 3.20.1 ISSUED BY: Effective: 04 -01 -07 by Resolution No.: Dated: Marcie L. Edwards Superseding Resolution No.: 91R -336 Dated: 12 -17 -91 General Manager CITY OF ANAHEIM Utilities Financial Services 201 S. Anaheim Blvd. Anaheim, CA 92805 ELECTRIC RATES, RULES AND REGULATIONS RULE NO. 20 REPLACEMENT OF OVERHEAD WITH UNDERGROUND DISTRIBUTION AND TRANSMISSION FACILITIES UP TO 69kV Page No. 3.20.2 A. (Continued) 3. The City Council has approved funding of the Underground Conversion Program through a 4.0% surcharge on electric revenues. These funds shall be maintained in a separate account and this charge shall appear as a line item on the customers' bills. The annual budgeted amount for undergrounding within the City of Anaheim may be allocated by the City Council upon recommendation of the Public Utilities General Manager. 4. The undergrounding extends for a minimum distance of one block or 600 feet, whichever is the lesser. B. In circumstances other than those covered by A. above, the Utility will replace its existing overhead distribution and transmission facilities up to 69kV with underground facilities along public streets, roads or other locations mutually agreed. upon when requested by an applicant or applicants where all of the following conditions are met: 1. a. All property owners served from the overhead facilities to be removed first agree in writing to perform the wiring changes on their premises so that service may be furnished from the underground distribution system in accordance with the Utility's rules and that the Utility may discontinue its overhead service upon completion of the underground facilities, or b. Suitable legislation is in effect requiring such property owners to make such necessary wiring changes and authorizing the Utility to discontinue its overhead service. 2. The applicant has: a. Furnished and installed the pads and vaults for transformers and associated equipment, conduits, ducts, boxes, pole bases and performed other work related to structures and substructures including breaking of pavement, trenching, backfilling, and repaving required in connection with the installation of the underground system, all in accordance with Utility's specifications, or, in lieu thereof, paid the Utility to do so; and b. Transferred ownership of such facilities, in good condition, to the Utility; and (Continued) ISSUED BY: Effective: 04 -01 -07 by Resolution No.: Dated: Marcie L. Edwards Superseding Resolution No.: 96R -25 Dated: 02 -13 -96 General Manager CITY OF ANAHEIM Utilities Financial Services 201 S. Anaheim Blvd. Anaheim, CA 92805 ELECTRIC RATES, RULES AND REGULATIONS RULE NO. 20 REPLACEMENT OF OVERHEAD WITH UNDERGROUND DISTRIBUTION AND TRANSMISSION FACILITIES UP TO 69kV (Continued) Page No. 3.20.3 B. (Continued) c. Paid a nonrefundable sum equal to the excess, if any, of the estimated costs (exclusive of transformers, meters and services), of completing the underground system and building a new equivalent overhead system. 3. The area to be undergrounded includes both sides of a street for at least one block or 600 feet, whichever is the lesser, and all existing overhead communication and electric distribution and transmission facilities up to 69kV within the area will be removed. C. In circumstances other than those covered by A, or B, above, where mutually agreed upon by the Utility and an existing single family residential applicant (residential applicant), overhead Service Wires or Connections may be replaced with underground Service Wires or Connections by the Utility. 1. The residential applicant is required to have: a. Installed Pull Boxes, conduits, and related underground facilities, herein referred to as Substructures, required for the new underground Service Wires or Connections in accordance with the Utility's Rules and its Construction Standards; b. Obtained written authorization and/or permission in the form of an utility easement, to be recorded in a form acceptable to the Utility, for any and all underground Substructures not wholly on the residential applicant's property or within an existing utility easement; c. Presented Anaheim with a construction Right of Entry form for the locations affected by the undergrounding; and, d. Received inspection and approval by the Utility. ISSUED BY: Effective: 04 -01 -07 by Resolution No.: Dated: Marcie L. Edwards Superseding Resolution No.: 91R -336 Dated: 12 -17 -91 General Manager CITY OF ANAHEIM Utilities Financial Services 201 S. Anaheim Blvd. Anaheim, CA 92805 ELECTRIC RATES, RULES AND REGULATIONS RULE NO. 20 REPLACEMENT OF OVERHEAD WITH UNDERGROUND DISTRIBUTION AND TRANSMISSION FACILITIES UP TO 69kV (Continued) Page No. 3.20.4 2. The residential applicant may elect to apply for a partial reimbursement of the underground Substructure costs equivalent to fifty percent (50 of the residential applicant's twenty (20) year contribution to the Underground Conversation Program surcharge, subject to available funding, and based on the residential applicant's previous twelve (12) months of electrical usage. Should the residential applicant not have accumulated twelve (12) months of usage history, an estimate from the previous twelve (12) months of occupancy at the property address will be used to calculate the reimbursement amount. a. Applications will be considered on a first come, first serve basis within each underground area in Anaheim. The Public Utilities General Manager, in her sole discretion, is authorized to prioritize projects deemed of significance for Utility operations and maintenance on a case -by -case basis. b. Applications will be made available upon request, and include the residential applicant's contact information, project scope, and cost estimate for the Substructure work for which reimbursement is requested. Applications received by the Utility will be filed, and reviewed for completeness and available funding. A written notification will be provided to the residential applicant indicating the Utility's acceptance of the application. c. The Utility's full contribution, inclusive of the partial reimbursement for the underground Substructure costs, its electrical labor for design and installation, and material costs shall not exceed the total sum of ten thousand dollars ($10,000) per residential applicant, unless otherwise authorized in writing by the Public Utilities General Manager, in her sole discretion. d. The residential customer must complete installation within 90 days of written notification from the Utility of approval of the application or the Utility's reservation of funds will expire and those funds may be made available to other residential customers. Case by case exceptions for time extensions may be made for Utility operational considerations as determined by the Public Utilities General Manager, in her sole discretion. ISSUED BY: Effective: 04 -01 -07 by Resolution No.: Dated: Marcie L. Edwards Superseding Resolution No.: 91R -336 Dated: 12 -17 -91 General Manager CITY OF ANAHEIM Utilities Financial Services 201 S. Anaheim Blvd. Anaheim, CA 92805 F. Definitions ISSUED BY: Marcie L. Edwards General Manager and ELECTRIC RATES, RULES AND REGULATIONS RULE NO. 20 REPLACEMENT OF OVERHEAD WITH UNDERGROUND DISTRIBUTION AND TRANSMISSION FACILITIES UP TO 69kV Page No. 3.20.5 D. In circumstances other than those covered by A, B, or C, above where mutually agreed upon by the Utility and existing residential applicants, overhead distribution and transmission facilities up to 69kV along rear property lines may be replaced with underground facilities. 1. The Utility will underground existing overhead facilities provided the residential applicant requesting the change: a. Obtains written approvals from each affected property owner; and, b. Obtains written authorization and/or permission in the form of an utility easement, to be recorded in a form acceptable to the Utility, for any and all underground Substructures not wholly on the residential applicant's property or within an existing utility easement; c. Pays, in advance, a nonrefundable sum equal to the estimated cost of the underground facility less the estimated net salvage value and depreciation of the replaced overhead facility. 2. The Utility will provide the following services upon verification that all of the conditions set forth in Rule 20D, Section 1, have been met by the residential applicant: a. Coordination of services for any permits; and b. Design services for the conversion of overhead distribution and transmission facilities with underground facilities. 3. Underground services will be installed and maintained as provided in the Utility's rules applicable thereto. E. In circumstances other than those covered by A. or B. above, where mutually agreed upon by the Utility and an applicant, overhead distribution and transmission facilities up to 69kV may be replaced with underground facilities, provided the applicant requesting the change pays, in advance, a nonrefundable sum equal to the estimated cost of the underground facilities less the estimated net salvage value and depreciation of the replaced overhead facilities. Underground services will be installed and maintained as provided in the Utility's rules applicable thereto. 1. The term "underground distribution system" means an electric distribution system with all cables installed underground except those conductors in surface mounted equipment enclosures. 2. The term "underground transmission system" means a transmission system up to 69kV with all cables installed underground. Effective: 04 -01 -07 by Resolution No.: Superseding Resolution No.: 91R -336 Dated: Dated: 12 -17 -91 EXHIBIT C. SAMPLE REAR PROPERTY LINE COST ESTIMATE Type of Residential Units: Roadway Distance: Circuit Distances Primary distribution: Secondary Service Wires: Number of utility poles: Description Substructures Contractor mobilization costs Trenching, encasement and trench repair Boring/Trenching to customer panels (qty 14 150') Conduit (furnish install) Vaults (furnish install) Restore damaged landscaping Remove poles and take to landfill Electrical Transformer installation Primary cable installation Secondary cable installation Service conversions (risers; meter panel conversions) Demolition of existing cables electric facilities Energize, test, coordinate outages Electrical Materials (provided by City) Other Design Review Project Management Labor Inspection Labor Electrical Design (duct bank alignment, placement of equipment, electrical diagram, joint pole authorization, demolition plan, street light layout, acquire easements) Other Agencies AT &T /SBC: furnish install substructures (conduits, vaults, riser) Time Warner: furnish install substructures (conduits, vaults, riser) Single Family Homes (qty. 14) 1200 ft (0.23 mi) 1200 ft (0.23 mi) 2100 ft (0.40 mi) 8 Qty Unit Unit Cost Subtotal 1 LS $20,000 $20,000 1,200 LF $95 $114,000 2,100 LF $20 $42,000 2,200 LF $10 $22,000 2 EA $10,000 $20,000 1 LS $40,000 $40,000 8 EA $1,500 $12,000 2 EA $10,000 $20,000 1,200 LF $6 $7,200 1,000 LF $5 $5,000 1 LS $25,000 $25,000 1 LS $25,000 $25,000 1 LS $10,000 $10,000 1 LS $30,000 $30,000 160 HRS $70 $11,200 120 HRS $60 $7,200 1 LS $50,000 $50,000 2,200 LF $20 $44,000 2,200 LF $20 $44,000 Total Cost Unit Cost /foot) Cost per Home $548,600 $457 $39,186 Application Date: CUSTOMER INFORMATION: Residential Applicant: Region (check one): Property Address: City: Property Phone: Anaheim Electric Cable TV Provider: Exhibit D: HUG Application Form ANAHEIM PUBLIC UTILITIES Home Undergrounding (HUG) Program Application (name as it appears on your bill) ['West City Limits to Euclid St. Central between Euclid St. and State College Blvd. East City Limits to State College Blvd. State: CA Zip: Daytime Phone: PROJECT DETAILS: Reason for Undergrounding of Electric Service (check all that apply): Remodel /Addition Electrical Panel Upgrade /Relocation ['Other: Application No: ['Telephone Provider: Other Provider: Customer ID: Location ID: ['Swimming Pool Installation (found on your bill) (found on your bill) Underground trench occupants (Applicant is required to request, coordinate and assume all costs for agencies other than the City of Anaheim Public Utilities Department): Estimated cost of electrical substructure work (includes furnishing materials and installation costs for trenching, conduits, pull boxes, per the electrical design). Attach contractor quote to this application: Estimated incentive (calculated by Department). This calculation is based on adding the Underground Conversion Surcharge amount for past 12 months, and multiplying by 50% to get the annual amount. Multiply this value by 20 for the total incentive amount. CHECKLIST: Customer Signature: Printed Name: Exhibit D: HUG Application Form O Contact other providers (telephone, cable) to determine feasibility and costs associated undergrounding all lines. O Obtain appropriate permits for work other than undergrounding. Examples may include building permits or meter inspections. O Contact the Electrical Engineering Division to request an electrical design for the new underground system at the 7th Floor of City Hall West, 201 S. Anaheim Boulevard, by calling (714) 765 -5156 during normal business hours to schedule an appointment. I Should Electrical Engineering determine that adjacent properties are affected, the residential applicant is responsible for obtaining authorization in the form of utility easements from the affected property owners. O Obtain an itemized quotation from a contractor (Anaheim recommends obtaining 3 quotes from fully licensed and insured contractors) for the undergrounding work to install electric substructures. Attach your preferred contractor's quote to this application. O Fill out and sign this application form. Keep a copy for your files, and deliver or mail original to: Anaheim Public Utilities Electrical Engineering, Suite 701 201 S. Anaheim Blvd. Anaheim, CA 92805 Attn: Home Undergrounding Program O Once written authorization from Electrical Engineering is received confirming your incentive amount, you will have 90 days to complete the installation and obtain approval by an Electrical Inspector. Remember to call before you dig Underground Service Alert at (800) 227 -2600. Prior to backfillinq your trench request an inspection by calling (714) 765- 6843. O Upon approval of inspection, electrical work will be scheduled within 4 -6 weeks, subject to availability of crews. Incentive checks will be mailed within 4 -6 weeks of inspection approval. AGREEMENT CLAUSE: I agree as follows: 1) To allow Anaheim to verify the installation. Verification includes an inspection of the installation. 2) That the incentive may be credited toward any delinquent (as currently defined by the Rates, Rules and regulations for the City of Anaheim) utility bill(s) for which the customer is responsible whether the account(s) is open or closed. 3) Incentives are subject to availability of funds. 4) Upon approval of inspection, the substructures shall be turned over to the City to operate and maintain. 5) To allow the City to access my property to operate and /or maintain the electrical system as required. 6) That the City of Anaheim may require proof of payment, in the form of a cancelled check or paid invoice, prior to releasing the incentive amount. 7) That the City of Anaheim may withhold payment of any incentive until satisfaction of any and all of the above listed conditions are met. Date: City of Anaheim Public Utilities Department Use Only Designer: Authorization to Proceed: SPL Project/WO: (signature) (date) Program Manager