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Home My WebLink AboutCOW 2012-10-08 Item 4C - Discussion - 42nd Avenue South Phase III Utility UndergroundingCOUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared b or's review Council review 10/08/12 BG Resolution Mtg Date Ordinance Mtg Date 10/15/12 BG Other Mtg Date SPONSOR Council Mayor HR DCD Finance Fire IT P&R Police PIV SPONSOR'S Council is being asked to direct staff on undergrounding of 42 Ave S Phase III, from SUMMARY Southcenter Boulevard to S 160 St. The current proposed budget does not include design or construction costs for undergrounding 42 Ave S Phase III. Staff could negotiate a project specific agreement with Seattle City Light that stipulates that utility undergrounding costs for the 42nd Ave S Phase III project be rate based. At this time, there are no other capital projects in the CIP that have undergrounding programmed. REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: 10/01/12 COMMITTEE CHAIR: ALLAN E EKBERG RECOMMENDATIONS: SPONSOR /ADMIN. Public Works COMMITTEE Committee recommends no underground; forward to C.O.W COST IMPACT FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $1,822,000.00 $0.00 $1,822,000.00 Fund Source: 103 RESIDENTIAL STREETS (PAGE 2, PROPOSED 2013 CIP) Comments: MTG. DATE RECORD OF COUNCIL ACTION 10/08/12 ITEM INFORMATION ITEM NO. 4.C. -W STAFF SPONSOR: BOB GIBERSON ORIGINAL AGENDA DATE: 10/08/12 AGENDA ITEM TITLE 42nd Ave S Phase III Utility Undergrounding (Southcenter Blvd S 160 St) CATEGORY Discussion Mtg Date 10 /OS /IZ Motion Mtg Date 10/15/12 Resolution Mtg Date Ordinance Mtg Date .Bid Award Mtg Date Public.Heanng Mtg Date Other Mtg Date SPONSOR Council Mayor HR DCD Finance Fire IT P&R Police PIV SPONSOR'S Council is being asked to direct staff on undergrounding of 42 Ave S Phase III, from SUMMARY Southcenter Boulevard to S 160 St. The current proposed budget does not include design or construction costs for undergrounding 42 Ave S Phase III. Staff could negotiate a project specific agreement with Seattle City Light that stipulates that utility undergrounding costs for the 42nd Ave S Phase III project be rate based. At this time, there are no other capital projects in the CIP that have undergrounding programmed. REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: 10/01/12 COMMITTEE CHAIR: ALLAN E EKBERG RECOMMENDATIONS: SPONSOR /ADMIN. Public Works COMMITTEE Committee recommends no underground; forward to C.O.W COST IMPACT FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $1,822,000.00 $0.00 $1,822,000.00 Fund Source: 103 RESIDENTIAL STREETS (PAGE 2, PROPOSED 2013 CIP) Comments: MTG. DATE RECORD OF COUNCIL ACTION 10/08/12 10/15/12 MTG. DATE ATTACHMENTS 10/08/12 Informational Memorandum dated September 28, 2012 42 Ave S Phase III CIP Page 2, Proposed 2013 CIP 42 Ave S Funding Fact Sheet Minutes from the Transportation Committee meeting of 10/01/12 10/15/12 -W I ho ILM City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: Mayor Haggerton Transportation Committee FROM: Bob Giberson, Public Works Director IS BY: Cyndy Knighton, Senior Engineer DATE: September 28, 2012 SUBJECT: 42 Ave S Phase III (Southcenter Blvd S 160th SO Project No. 99410303 Utility Undergrounding ISSUE Utility undergrounding as part of the 42nd Avenue S Phase III project. BACKGROUND In February 2012, CH2MHill was retained by the City to design the 42nd Avenue S Phase III project. Limits of this phase are Southcenter Boulevard south to S 160 Street (southern City limits) and the road project includes the design of a failing culvert over Gilliam Creek. The scope of work includes full design for both the roadway improvements and the culvert replacement, up to and including support during bidding. The current scope and budget do not include the costs to convert overhead power and phone lines to underground vaults. Optional tasks are included in the existing scope but additional budget will be needed to complete the underground engineering. The estimated cost for the additional design for undergrounding is estimated at $72,700.00. DISCUSSION One of the consultant's first order of work was to study the costs of the utility undergrounding so a decision could be made by the City on whether or not to pursue utility undergrounding or leave the utilities above ground on aerial lines. Approximately one -third of the project limits already have undergrounded utilities, which were completed by Sound Transit as part of the Light Rail line construction. Fiscal Impact: Design work for the roadway is budgeted in the draft 2013 CIP at $650,000.00 (pg. 2). Design for the overhead utility conversion will require additional budget. The road construction budget is currently $2.9 M (shown in 2014, including construction management). Undergrounding utilities will require additional funds. Options for funding the underground conversion include: (1) General fund; (2) Local Improvement District; (3) Citywide Utility Rate basing; and (4) Grants. If no undergrounding is pursued, the poles will still need to be relocated but at Seattle City Light's expense. Planning Level Cost Estimate Roadway Construction $2,790,000 Gilliam Creek Culvert 940,000 Sub -Total without $3,730,000 Undergroundin Utility Undergrounding $1,750,000 Total Including $5,480,000 Undergroundin An LID would affect approximately 25 parcels, whereas citywide utility rate basing would allocate the costs to all residents and businesses within Tukwila that are served by Seattle City Light. However, at this time utility rate basing is not available to Tukwila unless the current franchise agreement is amended, a new franchise is negotiated, or a project specific project agreement is negotiated. Many grant sources, such as the Transportation Improvement Board, disallow most or all of the cost of utility undergrounding. RECOMMENDATION The Council is being asked to authorize staff to negotiate a project specific agreement with Seattle City Light that stipulates that the utility undergrounding costs for the 42nd Ave S Phase III project will be rate based, and consider this item at the October 8, 2012 Committee of the Whole meeting and subsequent October 15, 2012 Regular Meeting. Attachments: Draft 2013 CIP page 2 Overhead to Underground Relocation Cost Estimate Funding Fact Sheet 47 WAPW Eng \PROJECTS\A- RW RS Projects \42nd Ave S Phase 111 (99410303 94 -RS03) \INFORMATION MEMO Undergrounding Decision 9- 18.12.docx CITY OF TUKWILA CAPITAL PROJECT SUMMARY 2013 to 2018 PROJECT: 40 -42 Ave South (S 160 St S 131 PL) Project No. 99410303 DESCRIPTION: Design and construct street improvements, drainage, undergrounding, and driveway adjustments. JUSTIFICATION: Provide pedestrian and vehicle safety, drainage, and neighborhood revitalization STATUS: (Phase III (SIC Blvd (154th) S 160 St) $3m, Design in 20 12, construction in 2014. Project No. 94 -RS03 Phase I (SIC Blvd (154) S 144 St) $3,796, Completed. Project No. 90 -RW15 Phase II (S 144 St S 139 St) $1,850, Completed. Project No. 94 -RS02 Phase IV (S 139 St S 131 PI) $1 m in beyond. Project No. 94 -RS01 MAINT. IMPACT: Reduce pavement, shoulder, and drainage work. COMMENT: Only Phase III is showing in active years. Design contract with CH2M Hill includes Surface Water's Gilliam Creek 42nd Ave S Culvert project (pg. 146). FINANCIAL Through Estimated tin 'snnn'cl 2n11 2n12 2013 2014 2015 2016 2017 2018 BEYOND TOTAL EXPENSES Phase IV Design 9 391 250 650 Land(R/W) 100 100 Const Mgmt. 400 560 960 Construction 2,400 3,800 6,200 TOTAL EXPENSES 1 91 3911 250 1 2,900 1 0 1 0 1 01 01 4,360 1 7,910 FUND SOURCES Awarded Grant 0 Proposed Grant 0 Motor Vehicle Tax 160 262 265 687 Mitigation Expected 0 City Oper. Revenue 9 231 (12) 2,635 0 0 0 0 4,360 7,223 TOTAL SOURCES 9 391 250 2,900 0 0 01 01 4,360 1 7,910 2013 2018 Capital Improvement Program 2 W 42nd Avenue S Funding Fact Sheet General Fund The general fund would be responsible for the entire $1,750,000 undergrounding costs. Local Improvement District A local improvement district could be formed for all Specially Benefitted parcels. In this case, the assumption is approximately 25 parcels would receive special benefit by the undergrounding. All parcels are zoned either for single family (LDR) or multi family (HDR). Assumptions All parcels share in bi Undergrounding cost LID Formation cost LID Bonding cost irden equally $1,750,000.00 Interest Rate 5% $105,000.00 Amortization 15 years $140,000.00 Parcels 25 $1,995,000.00 LID Cost Per Parcel $115,321.72 (estimate) LID Cost Per Parcel Per Year $7,688.11 City -wide Rate basing If an LID is formed to underground the overhead utilities, a surcharge rate is added to all electrical bills w Assumptions Residential Meters Commercial Meters Industrial Meters Large General Service Meters Annual amoritized cost Cost per kilowatt hour Average residential Total residential Average non residential Total non residential 4,748 804 16 64 $124,167 $0.00021556 Interest Rate Amortization 2013 MWH Average kWh cost 18,500 kWh per year 87,838 MWH per year 552,249 kWh per year 488,188 MWH per year Average Annual Costs Per Meter Total Residential $3.99 $18,934 Commercial $119.04 $105,233 5% 25 years 576,026 (projected) $0.06 6/11/12 i 50 Transportation Committee Minutes October 1, 2012 Page 2 B. Utility Undergrounding: 42 Avenue South Phase III This item was originally heard by the Transportation Committee in January (see Transportation Committee minutes dated January 17, 2012), when staff sought approval to award a consultant contract for design of 42nd Avenue South Phase III. Although the project design scope did not include undergrounding, the consultant analyzed the cost of conversion to undergrounding. Staff is returning to Committee with the results of this analysis, and seeking direction from Council whether or not a project specific agreement with Seattle City Light should be negotiated stipulating undergrounding costs which would be rate -based to the customer. The estimated costs to design undergrounding are $72,700, and the actual undergrounding is estimated to cost $1.75 million. This would bring the project total to $5.48 million as compared to $3.73 million without undergrounding. Staff gave an overview of options that could pay for the undergrounding, including: general fund monies, a local improvement district, or utility rate basing. Discussion ensued among the Committee Members about undergrounding utilities and the current City policy for such. In the end, the Committee determined that in consideration of all the factors of this specific project, including costs and undergrounding in the neighboring jurisdiction, it would not be prudent to underground utilities on this project. They also conveyed the importance of having full Council review the current undergrounding policies for the City in order to determine policy applicability i today's economic times. The Committee recognizes two separate issues and recommends the following: Recommends not undergrounding utilities on Phase III of the 42 n Avenue South Project Recommends conducting full Council review of current City undergrounding policies, and update and /or modify as appropriate Although the Committee is urging Council review of the current utility undergrounding policies, a full policy discussion does not necessarily need to take place at the October 8 COW. The discussion could take place as part a 2013 Council work item /plan. SEE SPECIFIC RECOMMENDATIONS BULLETED ABOVE. FORWARD TO OCTOBER 8 COW FOR DISCUSSION. III. SCATBd Due to a scheduled Executive Session beginning at 6:30 p.m., the Committee did not have time to discuss SCATBd. INFORMATION ONLY. IV. MISCELLANEOUS Meeting adjourned at 6:25 p.m. Next meeting: Monday, October 15, 2012 5:15 p.m., Conference Room #1 Committee Chair Approval Minutes by K.AM. Reviewed by GL. 51