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HomeMy WebLinkAboutCC 7 UNDERGDNG AG 01-06-86DATE: ,qSENT CALENDAR } ~,, ~, ~ NO. 7 ~ -~i '~%" - 1-6-86 DECEMBER 19, 1985 Inter-Corn TO: FROM: SU BJ ECT: WILLIAM HUSTON, CITY MANAGER BOB LEDENDECKER, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER RULE 20A UNDERGROUNDING AGREEMENT WITH EDISON COMPANY RECOMMENDATION: That the Tustin City Council, at their meeting of January 6, 1986, support a change in the Rule 20A allocation formula for undergrounding of electrical power lines with the adoption of the attached Resolution. BACKGROUND: During 1985, the League of California Cities and the ~outhern California Edison Company have developed a new League-Edison Rule 20A Undergrounding Budget/Formula Agreement. To date, this proposed Agreement has received no negative comments from the Cities and has been reviewed and supported by the League Housing, Community and Economic Development Policy Committee and the Utility Undergrounding Subcommittee. The Board of Directors of the League has also endorsed this Agreement. In December, 1985, Southern California Edison Company will be filing a petition with the Public Utilities Commission (P.U.C.) seeking implementation of this League-Edison Agreement in the Edison service territory. After the petition has been filed, the P.U.C. will conduct hearings on the issue and then render a decision. DISCUSSION: The proposed Agreement covers three major areas as follows: e The 1985 allocation would be calculated upon a distribution based 45% upon total meters, 45% upon overhead meters, and 10% to a special projects fund. No Cities would lose monies due to this formula change. Tustin's 1985 allocation would increase from about $60,000.00 to $95,600.00. The proposed Agreement calls for a five-year program to be developed on an annual basis specifying the total amount to be allocated each year. This type of action allows the Cities and Edison Company to plan, budget and prepare for undergrounding projects. DECEMBER 19, 1985 PAGE 2 This proposal represents a major increase in financing Rule 20A programs by the Edison Company over the next five years as follows: 1985 - $25,500,000 1986 - 28,000,000 1987 - 32,000,000 1988 - 36,000,000 1989 - 40,000,000 TuStin's Proposed allocations over this five-year period based upon current meter counts are estimated as follows: 1985 - $ 95,674 1986 - 105,054 1987 - 120,061 1988 - 135,069 1989 - 150,077 The Edison Company and the California League of Cities are requesting the City's support for the proposed change in the Rule 20A allocation formula in the Edison service territory by adoption of the attached Resolution. Ms. Patricia Buttress, Southern California Edison Company Area Manager, will be available to respond to any additional questions which the Council may have. Bob Ledendecker Director of Public Works/City Engineer BL:jr cc: Patricia Buttress, Edison Company 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 25 26 27 28 RESOLUTION NO. 86-4 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, ENCOURAGING THE PUBLIC UTILITY COMMISSION TO APPROVE THE PROPOSED REVISION TO THE RULE 20A ALLOCATION FORMULA FOR UNDERGROUNDING OF ELECTRICAL POWER LINES WHEREAS, the undergrounding of electrical and telephone facilities has been shown to be aesthetically pleasing and an improvement to the safety for the motoring'public; and WHEREAS, there currently exists in the City of Tustin a high percentage of overhead electrical power lines; and WHEREAS, the high cost of undergrounding electrical facilities under the current Rule 20A allocation has allowed only a small percentage of overhead facilities to be converted to underground facilities within the older sections of the City of Tustin; and WHEREAS, the proposed revision of the Rule 20A distribution formula, las outlined in the agreement between the League of California Cities and the Southern California Edison Company, dated June 5, 1985, provides more balance to Rule 20A allocations than any formula based on a single factor; and WHEREAS, the proposed revision to the Rule 20A formula recognizes that many cities in Southern California has both old and new areas within their corporate boundaries which are eligible for undergrounding conversion. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Tustin requests the Public Utility Commission to adopt the League Edison Agreement and support the increased Edison Rule 20A allocation of 28.5 million dollars for 1986, increasing to 40 million dollars in 1989, and encourages the Public Utility Commission to insure that a permanent agreement with increased allocations replace the five-year program covered by the agreement dated June 5, 1985, after 1989. PASSED AND ADOPTED at a regular meeting of the Tustin City Council, held on the day of , 1986. MAYOR ATTEST: CITY CLERK