CC SR 20240917 01 - Utility Undergrounding Rule 20 Program
CITY COUNCIL MEETING DATE: 09/17/2024
AGENDA REPORT AGENDA HEADING: Regular Business
AGENDA TITLE:
Consideration and possible action to receive an informational report on the Southern
California Edison Utility Undergrounding Program.
RECOMMENDED COUNCIL ACTION:
(1) Receive and file an informational report on the Southern California Edison (SCE)
Utility Undergrounding Program.
FISCAL IMPACT: There is no fiscal impact to receiving and filing a report on the SCE
utility undergrounding program.
Amount Budgeted: N/A
Additional Appropriation: N/A
Account Number(s): N/A
ORIGINATED BY: Brandon Mesker, Associate Engineer
REVIEWED BY: Ramzi Awwad, Director of Public Works
APPROVED BY: Ara Mihranian, AICP, City Manager
ATTACHED SUPPORTING DOCUMENTS:
A. Southern California Edison’s Website – Rule 20 Conversions
B. Guidelines to Residential Utility Undergrounding Rule 20B (page B-1)
BACKGROUND:
In 1967, the California Public Utilities Commission (CPUC) established electric tariff Rule
20 (Rule 20), which sets policies and procedures for the conversion of overhead power
lines and other associated equipment to underground facilities.
At the November 14, 2023 meeting, Mayor Cruikshank (then -Mayor Pro Tem) requested
information on the process and cost to underground utility lines pursuant to Rule 20, which
is being reported this evening.
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DISCUSSION:
Under Rule 20, there are three common programs: Rule 20A, Rule 20B, and Rule 20C.
These programs describe the funding avenues for undergrounding existing overhead
utility lines.
Rule 20A
Rule 20A projects are fully funded by Southern California Edison (SCE) customers using
fees that SCE customers pay as part of their electricity rates. Funds are distributed on an
annual basis to each jurisdiction based on the number of meters in that jurisdiction.
Therefore, more populous cities and counties generally receive more funds than less
populous ones. Funds are given in the form of work credits, and these work credits may
only be used on a project benefiting the general public by satisfying one or more of the
following:
1. Undergrounding would avoid or eliminate a heavy concentration of overhead lines,
as defined by SCE.
2. The street, road, or right-of-way serves as a major thoroughfare for the general
public and carries a heavy volume of pedestrian, bicycle, rail, vehicular, or other
traffic. Heavy traffic volume means a minimum of 5,000 average trips per day
among all transportation forms.
3. Wheelchair access is limited or impeded by existing above ground infrastructure
on sidewalks or other areas in the pedestrian right -of-way that is otherwise
compliant with the Americans with Disabilities Act (ADA).
4. The street, road, or right-of-way adjoins or passes through a civic area or public
recreation area or an area of significant scenic, cultural, and/or historic interest to
the general public; or
5. The street, road, or right-of-way is considered an arterial street or major collector
as defined by the California Department of Transportation’s (Caltrans) California
Road System.
Additionally, Rule 20A projects must be at least 600 feet in length, and an undergrounding
district must be created where both the existing overhead lines are and where the new
underground lines will be placed. The district must require that all overhead lines be
removed, require all affected properties be retrofitted to accept underground utilities (if
applicable), and authorize utility companies to discontinue and remove overhead utility
service.
Rule 20A projects can vary in scope, cost and duration. The cost of a Rule 20A project is
estimated to be at least $800 per linear foot, depending on the complexity. The duration
of a project can range from at least 24 months and up to 84 months, again dep ending on
the complexity.
The City has a current balance of $278,710 in work credits, which is insufficient to
complete a project based on current SCE cost estimates.
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As of December 31, 2022, allocations under Rule 20A have been discontinued , because
the program, according to the CPUC, was not equitable as the vast majority of funded
projects were in dense urban communities, and those projects were inefficient as they
often exceeded cost estimates and schedules. Therefore, cities and counties must work
with their current balances. This means that only projects that can be completed within
the current balances may move forward. Therefore, the City may not propose a new
project under Rule 20A, because the current balance is insufficient to complete a project.
Per the CPUC, unused work credits will be reallocated to communities with active Rule
20A projects, prioritizing undeserved or Environmental and Social Justice Community
census tracts.
To date, the City has established the following six Utility Underground Districts (UDDs)
and been involved with six Rule 20A projects:
1. District 1 – Established in 1975, Palos Verdes Drive South (Forrestal Drive to Palos
Verdes Drive South)
2. District 2 – Established in 1975, Forrestal Drive Undergrounding District
3. District 3 – Established in 1976, Palos Verdes Drive West Undergrounding District
4. District 4 – Established in 1986, Hawthorne Boulevard (from Indian Peak to Indian
Valley Road)
5. District 5 – Established in 2018, Palos Verdes Drive South (between La Rotonda
Drive and the City limits)
6. District 6 – Established in 2018, Crenshaw Boulevard (between Crest Road and
Valley View Road) – Expected to be completed by March 2025
Rule 20B
If a project does not qualify for funding under Rule 20A, but is at least 600 feet in length,
it may be eligible for partial funding under Rule 20 , whereby it would be funded by both
the Rule 20 program and the applicant. In this case, the applicant could be a city, county,
group of property owners, or individual property owner. The Rule 20 portion of funding
that could be applied to the project is equivalent to the costs of removing the existing
overhead system and replacing it with a new overhead system. The City’s balance of
work credits may not be applied to proposed Rule 20B projects.
To begin the undergrounding process under Rule 20B, applicants typically pay SCE the
cost of engineering the undergrounding project in advance, which includes preparation of
a construction cost estimate. Should the applicant move forward with construction, they
will then pay SCE’s estimated cost of construction in advance, less the Rule 20
contribution.
Prior to undergrounding, the applicant must meet the following conditions:
1. All affected property owners agree, in writing, to make wiring changes on their
property to accept service from undergrounded utilities and discontinue receiving
overhead services.
2. SCE is authorized to discontinue its overhead service.
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3. Facilities, equipment, and infrastructure for underground service are installed in
accordance with SCE specifications, or SCE is paid to install such .
4. Facilities, equipment, and infrastructure referenced in #3 above, if constructed by
the applicant, are transferred in good condition to SCE.
5. Nonrefundable payments for SCE work (if any) are made in advance.
To date, the City has not participated in any Rule 20B projects.
Rule 20B projects can vary in scope, cost and duration. The cost of a Rule 20B project is
typically at least $1,000,000 for the minimum 600 -foot project length, depending on the
complexity. These costs do not include service laterals or meter modifications. The
duration of a Rule 20B project is typically less than two years.
The City Council approved Guidelines to Residential Utility Undergrounding Rule 20B on
May 17, 2005 and later amended them on November 4, 2020. (Attachment B)
Rule 20C
This program includes all projects which do not fulfill the requirements of Rule 20A or
Rule 20B. These projects receive no funding from the Rule 20 program, and the costs are
borne solely by the applicant.
Prior to undergrounding, the applicant must meet the following conditions:
1. Facilities, equipment, and infrastructure for underground service are installed in
accordance with SCE specifications, or SCE is paid to install such .
2. Facilities, equipment, and infrastructure referenced in No. 1 above, if constructed
by the applicant, are transferred in good condition to SCE.
3. Nonrefundable payments for SCE work (if any) are made in advance.
To date the City has not participated in any Rule 20C projects.
Rule 20C projects can vary in scope, cost and duration. The cost and duration of a Rule
20C project varies widely based on the size of the proposed project because there is no
minimum project length.
ADDITIONAL INFORMATION:
For accuracy, the information contained in this staff report was reviewed by SCE Staff.
CONCLUSION:
Staff recommends that the City Council receive and file a report on the S CE utility
undergrounding program.
ALTERNATIVES:
In addition to the Staff recommendation s, the following alternative action is available for
the City Council’s consideration:
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1. Identify a potential project that could be funded using the Rule 20B process
and return to the City Council with additional information.
2. Take other action, as deemed appropriate by the City Council.
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Table of Contents
Item Page No.
Introduction ....................................................................................................................................1
Process Overview ...........................................................................................................................3
Procedures
Phase 1: Building Neighborhood Consensus .............................................................................5
Phase 2: Petition to Advance Funding for Engineering .............................................................7
Phase 3: Engineering and Apportionment of Project Costs .......................................................9
Phase 4: Petition to Establish an Assessment District .............................................................11
Phase 5: Establishing an Assessment District ..........................................................................12
Phase 6: Construction of Underground Utility Improvements ................................................14
Frequently Asked Questions .......................................................................................................16
Exhibits
Letter of Intent ............................................................................................................. Exhibit A
Petition (for the City to advance funding for engineering services) ............................ Exhibit B
Letter of Support (for the City to advance funds for engineering services) ................ Exhibit C
Explanation of Non-Support or Opposition ................................................................. Exhibit D
Petition (for the City to form an Assessment District) ................................................ Exhibit E
Letter of Support (for the City to form an Assessment District) ..................................Exhibit F
Explanation of Non-Support or Opposition ................................................................. Exhibit G
(Draft) Notice of Assessment....................................................................................... Exhibit H
Ballot (for formation of an Assessment District) .......................................................... Exhibit I
(Final) Notice of Assessment and Invoice .................................................................... Exhibit J
Consent for Construction of Home Service Connection.............................................. Exhibit K
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Introduction
The purpose of these guidelines is to provide residents who are interested in undergrounding
overhead utility lines (power lines, telephone wires, television/internet cables and associated poles
and infrastructure) in their neighborhood with the necessary information, which is commonly
referred to as “undergrounding.”
Undergrounding is regulated by the California Public Utilities Commission (CPUC) under Electric
Tariff Rule 20, which allows cities and counties to identify areas for undergrounding projects.
Depending on the project characteristics and eligibility under pre-established criteria, a utility may
fund some, all, or none of the costs of an overhead conversion.
Rule 20 provides three levels, A, B, and C, of progressively diminishing ratepayer funding for the
projects (and a sub-program D which is specific to undergrounding in San Diego Gas &Electric’s
Fire Threat District). For the Rule 20 program, cities identify overhead lines that they wish to
underground, and in consultation with their investor-owned utility determine if the conversion
project qualifies for any of the Rule 20 A, B, C or D programs.
For more information on the CPUC, and Tariff Rule 20, please visit www.cpuc.ca.gov,
Although few projects gather as much initial public support as undergrounding projects, when the
costs and complexity are better understood, support wains significantly. Although limited Rule 20
funding is available to the City for undergrounding projects along major arterial roadways, such
funding is NOT available for these projects in residential neighborhoods. Therefore, the cost of
such projects is the full financial responsibility of the affected property owners.
Undergrounding often positively addresses a number of neighborhood concerns, including:
Unsightly above-ground utilities
View obstructions
Individual concerns regarding health and safety
However, the process of undergrounding in residential neighborhoods is costly and complex, and
presents a number of challenges and concerns, such as:
Scale and scope of an undergrounding project
Sharing costs amongst the affected property owners
Rights and responsibilities of affected property owners, including those who support or do
not support undergrounding
Financing options including payment plans
Utility connection between the new underground lines and the structures, including
associated costs and the physical impacts on landscaping and the connections to homes
Potential financial hardship on one or more affected property owners
Impacts to roadways, sidewalks and other infrastructure in the public right-of-way
Once an individual, small group, or neighborhood endeavors to underground utilities in their
neighborhood, they may either fund the process themselves utilizing Rule 20C, or seek to establish
an assessment district through Rule 20B.
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The process described in these guidelines is based upon the best information available to the City
at the time, and is intended to be a step-by-step approach for residential neighborhoods considering
to pursue forming an assessment district through Rule 20B. In forming an assessment district, at
least 50% of property owners within the proposed district must be in support a the formation of
the proposed district in order for the City to consider forming the assessment district. However,
even in a case where 50% of the property owners support formation, the City Council has the final
decision on whether the assessment district is formed.
In brief,
At this time, the best estimates available to the City for undergrounding at the planning
stage is approximately $50,000 per property, although the final cost will vary.
Costs to underground are borne by individual property owners. The Assessment District
funds the project through the sale of bonds and the imposition of a semi-annual property
tax assessment to pay off the bonds.
Property Owners must also consider the cost to connect the underground utilities to their
home. This cost is not covered by the Assessment District.
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Phase 1
•Determine neighbor interest
•Form a committee and select representative
•Provide City with Letter of Intent
•City will host a Community Meeting with neighborhood representative(s) and
Utility Company representatives
Phase 2
•Petition (and accompanying Letters of Support) the City to advance funding
for Engineering
•City staff verification
•City Council consideration
•(potential) Funding of Engineering costs
Phase 3
•Preparing Plans, Specifications and an Engineering Estimate of Construction
Costs
•Proposed apportionment of project costs
•Neighborhood Meeting to discuss Engineering and apportionment of costs
Phase 4
•Petition to establish an Assessment District (and accompanying Letters of
Support)
•City Council consideration of a Resolution of Intent to form an Assessment
District and set a Public Hearing date
Phase 5
•Voting
•City Council conducts a Public Hearing to consider the formation of an
Assessment District
•Notices of Assessment (identifying financing options)
Phase 6
•Construction
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Phase 1: Building Neighborhood Consensus
Step 1: Determine the Level of Interest within your Neighborhood
Speak with your neighbors and discuss the contents of this Guideline brochure. Most
property owners and individuals are likely to be in favor of relocating overhead utilities
(power lines, telephone and cable television) underground, but may be reluctant or
unwilling to pay for such relocation.
Although interested neighbors can propose the boundaries of the district area for
undergrounding based on neighborhood support for the project, the district must also
be feasible to the affected utility companies and will likely be based on the layout of
the affected portion of the utilities infrastructure.
Step 2: Form a Neighborhood Committee and/or Select a Neighborhood Representative
Interested neighbors should form a committee to represent the neighborhood and
appoint a representative to serve as the primary point of communication with City staff,
representatives of the applicable utilities (e.g., Cox Communications, Crown Castle
Communications, Verizon, AT&T, etc.)
The committee can be formed by a Homeowner’s Association (HOA) Board of
Directors or any group of property owners interested in undergrounding. If the
proposed district is governed by (or partially governed by) a HOA, a letter of support
from the HOA’s Board of Directors is required.
Step 3: Provide City with Letter of Interest
The neighborhood committee and/or neighborhood representative submits a Letter of
Interest to the City (See Exhibit A as a sample letter). This letter is addressed to the
City Council and delivered to the Public Works Department. The purpose of the letter
is to notify the City of the neighborhood’s interest and intention to form an
undergrounding assessment district.
The letter should identify the area contemplated for undergrounding (a map depicting
the area should be attached to the letter) and indicate to what degree the neighborhood
has discussed undergrounding. The letter should also give the name and contact
information of the neighborhood representative.
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Step 4: City will Host a Community Meeting
Upon receipt of a Letter of Interest, which indicates significant outreach and a
significant level of support amongst property owners in the proposed district area, City
staff will begin the process of scheduling a community meeting to discuss the details
of the proposed project and the potential impacts on the properties, property owners,
and occupants. As part of that process, the receipt of the Letter of Interest will be
reported in the City Manager’s Weekly Administrative Report.
The Community Meeting will be scheduled so that representatives from the following
are in attendance:
City Manager (or a designee)
Public Works Staff
Neighborhood representative and neighborhood committee members
Representatives of impacted utility companies, such as:
Southern California Edison
Cox Communications
Crown Castle Communications
Verizon
AT&T
Notice of the community meeting will be sent to all property owners within the
proposed district area at least 15 days in advance of the meeting.
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Phase 2: Petition to Advance Funding for Engineering
Step 5: Petition and Letters of Support / Explanations for Examples of Lack of Support
After a Community Meeting is held, the neighborhood committee and/or neighborhood
representative may petition for the City to advance funding for engineering for the
project. (See Exhibit B for the form to be used)
The neighborhood committee and/or neighborhood representative are to reach out to
all of the owners of properties in the proposed district area, and obtain one of the
following for each property:
Letter of Support, signed by the property owner, accompanied by a check for
$500 for each property, made payable to the City of Rancho Palos Verdes (See
Exhibit C for the form to be used), or
Letter of Opposition explaining why the property owner(s) oppose(s) the
project or does not support it (See Exhibit D for the form to be used.) A
signature is not required.
Checks accompanying Letters of Support will be deposited by the City into a Trust
Deposit account and held until expenses begin to be incurred for engineering services
to design the project. Deposits will be refundable up until a purchase order is opened
by the City for engineering services. Refunds will not be subject to interest accrued in
the Trust Deposit, nor potential lost interest by the property owner.
It is unlikely that support for the undergrounding project will be unanimous, even if
only due to individual financial reasons. Thus, when the owner of a property does not
support the proposed project, the neighborhood representative and/or neighborhood
committee member must document the reason for the opposition or lack of support on
the Letter of Opposition form. (See Exhibit D)
Step 6: City Staff Verification
Upon receipt of the Petition and supporting documents, City staff will verify that at
least one Letter of Support or Letter of Opposition have been submitted for each
property within the proposed district area. Staff will also verify that the name on the
petitions match the current assessment rolls.
Upon verification, the proposed project will be scheduled for consideration by the City
Council at one of its regularly scheduled meetings.
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Step 7: City Council Consideration
As a Regular Business Agenda item, the City Council will consider the following
actions in response to the neighborhood’s petition:
Support the neighborhood’s efforts to create an assessment district in their
neighborhood;
Assume the role of lead agency for the project;
Advance funding for engineering services to prepare plans and specifications
for the project (Staff will only recommend to the City Council that the City
advance such funding if the Petition is accompanied by Letters of Support from
at least two-thirds of property owners within the proposed project area);
Alternatively, elect not to support the neighborhood’s efforts; and
Take any other action deemed appropriate by the City Council.
When considering the neighborhood’s petition, including whether or not to advance
funds for a particular project, the City Council will consider many factors, including
but not limited to the following:
Project costs;
Availability of funding;
Level of neighborhood support; and
How the neighborhood intends to address impacted property owners who have
expressed a financial concern over the project.
Step 8: Funding of Engineering Costs
In the event that the City Council elects to advance funding for engineering, the Finance
Department will help determine the appropriate means and methods necessary for
providing necessary funds. This may require the issuing of bonds on proposed
benefitting properties to ensure such funds are reimbursed to the City, regardless of
whether the undergrounding project is completed or not.
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Phase 3: Engineering and Apportionment of Project Costs
Step 9: Rough Order of Magnitude (ROM) Estimates
Upon receipt of a request, accompanied by a boundary map, Southern California
Edison will provide a Rough Order of Magnitude (ROM) for a proposed assessment
district.
Step 10: Preparing Plans, Specifications
Like all other public projects impacting infrastructure facilities in the public right-of-
way, Plans, Specifications, and an Engineering Estimate of Construction Costs must be
prepared prior to obtaining public bids from potential contractors. However, only
Southern California Edison can provide engineering designs for Edison
undergrounding districts/projects.
All costs for the preparation of the documents shall be the financial responsibility of
the owners of the properties in the proposed assessment district, or as proposed in the
petition to address potential financial hardships of individual property owners.
Step 11: Engineering Estimate of Construction Costs
It is important to note that the Engineering Estimate of Construction Costs will be an
estimate of the total construction cost for undergrounding the overhead utility facilities
in the public right-of-way areas only, and will not include the cost for individual
properties to connect to relocated facilities, nor define costs on a property-by-property
basis.
Step 12: Proposed Apportionment of Project Costs
Once Plans, Specifications, and the Engineering Estimate of Construction Costs have
been prepared, the Engineer will assess each property’s benefit from the project and
prepare a report that includes:
A map of the project area
The methodology used to determine the benefits to each property from the
project
A recommended property-by-property apportioned cost of the project
The report will be provided to the neighborhood committee and/or neighborhood
representative to share with all of the impacted property owners, and a meeting will be
scheduled for the neighborhood to discuss the allocation of financial responsibility.
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Step 13: Neighborhood Meeting
A neighborhood meeting will be scheduled to discuss the proposed apportionment of
project costs and either agree with the proposed apportionment or propose an
alternative distribution. The meeting will be scheduled so that representatives from the
following are in attendance:
City Manager (or a designee)
Public Works Staff
All owners of properties in the proposed Assessment District
Representatives from impacted utility companies, such as:
Southern California Edison
Cox Communications
Crown Castle Communications
AT&T
Verizon
Notice of the community meeting will be sent to all property owners within the
proposed district area at least 15 days in advance of the meeting.
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Phase 4: Petition to Establish an Assessment District
Step 14: Petition to Establish an Assessment District
After the Neighborhood Meeting is held, the neighborhood committee and/or
neighborhood representative must submit a Petition to Establish an Assessment District
(See Exhibit E for the form to be used) to the City, accompanied by the following:
Letters of Support (and accompanying fees) for each property for which the
owner(s) are in support of the project
Letters of Opposition for each property for which the owner does not supportthe
project
A proposal to address the financial share of property owners for which the
project would pose a financial hardship
(A possible proposal would be for the neighborhood to agree to collectively
share the financial responsibility of property owners for which the project
would present a financial hardship)
Step 15: Council Meeting to Consider a Resolution of Intent to Form an Assessment
District
As a Regular Business Agenda item, the City Council will consider the Engineer’s
report (see Step 11). If the report is accepted, the City Council will adopt a Resolution
of Intent, which sets a Public Hearing date (at least 45 days following the adoption of
the Resolution of Intent), at which time the City Council will hear testimony and decide
whether or not to form an Assessment District.
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Phase 5: Establishing an Assessment District
Step 16: Notice of Assessment and Ballots Mailed
The City Council can only form an Assessment District if a simple majority of the
assessed property ownership (weighted by assessment amounts) agree to the
assessment.
To determine if this State-mandated majority is met, ballots and Notices of Assessment
are mailed 45 days prior to the Public Hearing. The results of the ballot election are
tabulated at the Public Hearing.
If a simple majority of assessed properties (weighted by assessment amounts) does
NOT support the formation of the proposed assessment district, then the assessment
district will not be formed. In such an event, the project will not move forward and
property owners will be required to reimburse the City for the Engineering costs
incurred, in accordance with the neighborhood’s petition to advance funding.
Step 17: City Council conducts a Public Hearing
A Public Hearing is conducted by the City Council to review ballot results and to
receive comments or protests from the property owners.
If a simple majority of the weighted assessment value property owners vote in favor of
the project, the City Council may adopt the resolution forming the Assessment District.
The term “weighted assessment value” means that the vote of a property owner with a
$20,000 assessment counts twice as much as the property owner with a $10,000
assessment.
The City Council has the discretion to refuse to form an Assessment District,
notwithstanding successful vote in support. The ballot result is not the only factor that
will be considered by the City Council. Other factors that may be considered by the
City Council include:
How the neighborhood intends to address impacted property owners who have
expressed a financial concern over the project
Level of neighborhood support
City benefit from the project
Step 18: Notice of Assessment
If the Assessment District is formed, a Notice of Assessment and Financing Options
will be mailed to each affected property owner. A property owner may pay the
assessment within the 30-day cash collection period and receive a discount for bond
financing costs. Property owners not paying within the 30-day period will have an
assessment placed against their property in accordance with the Engineer’s Report and
will pay off the assessment in semi-annual payments with their property tax bills.
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Phase 6: Construction of Underground Utility Improvements
Step 19: Construction
The applicable electrical utility must complete the portions of the work related to
placing their facilities within conduits, however, much of the work may be advertised
for competitive bids.
The City will either enter into a contract with the applicable electrical utility to
construct the improvements or advertise a contract for the construction. If the latter
approach is utilized, bids will be sought in accordance with the City’s public project
policies and procedures.
When all properties are connected to the underground system, the utilities will convert
to the underground system and utility wires and poles are removed.
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1. What are the typical costs?
The cost of undergrounding overhead utilities lines varies greatly from project to project;
however, it is estimated to cost $50,000 per property. However, the cost can also vary
significantly from property to property. This amount is typically paid through an assessment.
In addition to the construction within the street, the service connection to the individual
homes must also be reconstructed. Under State law, the cost for these private connections is
the responsibility of property owner. However, the law also provides that property owner can
fill out a consent form requesting the City construct the connection to the individual home
as well and in such cases, the cost is included in the assessment and paid by the property
owner over time.
The cost to reconstruct individual service connections will vary greatly depending upon
distance from the street to the connection point, as well as the type improvements that are
impacted by the construction. An estimate for a 40-foot connection in lawn, or standard
concrete or asphalt is $5,000.
2. Will everyone pay the same amount?
Generally, no. The assessment process will determine the amount paid by various propert y
owners and will vary depending on the benefit the property receives from the project. For
example, properties with views greatly improved by the project will pay a higher assessment
than a property with little or no improvement to view.
3. How is the area of the Assessment district determined?
The area of the assessment district is determined by the neighborhood, in conjunction with
the applicable electrical utility, to make sure the district boundaries works well with the
electrical grid.
4. Will all the wires and poles be removed?
The undergrounding project will generally remove all wires and poles. There are some
exceptions. Poles that support streetlights will not be removed. In addition, poles that support
cellular (wireless) communications may only be removed if an alternate location can be
found.
5. How long should the process take?
The length of the process will vary greatly from project to project, depending on size,
complexity, and availability of City funding and neighborhood support. It will take
approximately 12 months to design the improvements and six months to form the Assessment
District. A good estimate of time for the entire process is 3 to 4 years.
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6. Why can’t the City pay for undergrounding utilities?
Although the City is supportive of neighborhood undergrounding projects, adequate funding
is not available. The undergrounding program requires the City to advance the cost of
engineering services to design the plans and to prepare the Engineer’s Report of
Assessments. These costs, however, will be added to the cost of construction and included
in assessments to be paid by the property owners within the assessment district.
7. Does the City receive funding for undergrounding from Southern California Edison?
Yes, the City is allocated a certain amount of “work credits” annually for undergrounding,
however, these credits must be accumulated over many years to funds undergrounding
projects, and those projects may only be utilized for projects which benefit a large number
of citizens, such as arterial roadways.
Rule 20A projects are constructed in areas of communities that are used most often by the
general public. Because ratepayers contribute the bulk of the costs of Rule 20A programs
through utility rates, the projects must be in the public interest by meeting one or more of the
following public interest criteria:
Eliminate an unusually heavy concentration of overhead lines;
Involve a street or road with a high volume of public traffic
Benefit a civic or recreation area or area of unusual scenic interest;
Be listed as an arterial street or major collector as defined in the Governor’s Office
of Planning and Research Guidelines
8. Why can’t Southern California Edison pay for utility undergrounding?
Unfortunately, undergrounding is expensive and there is no legal requirement for Southern
California Edison to underground their facilities.
9. What equipment will still be visible above ground? Will I get a chance to review
proposed equipment locations before they are finalized?
Transformers will be located in sub-surface vaults covered by typical manhole covers.
Telephone systems also require above ground terminals. In addition, many underground
facilities will require air vents, which will be visible from the street.
10. What is an assessment district?
An assessment district is a financing tool used to fund the cost of a construction project over
a period of time. With an assessment district, costs are apportioned to each parcel within the
project boundary based upon the value of the special benefit conferred on that parcel. The
amount each parcel pays is determined in the Engineer’s Report of Assessment.
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11. How will I pay for the assessment?
Assessments can be paid one of two ways, either the amount of the assessment can be paid
in cash or it can be financed in, which case it will be paid over a time period typically 20
years as part of the property tax bill. Property owners wishing to pay the entire amount up
front will save the cost of interest.
12. What is the term of bond financing?
Bonds are usually financed over 15 to 20 year terms.
13. Can assessments be deferred for hardship cases?
Individuals should consult with a tax advisor to determine if they qualify for the State of
California Property Tax Postponement Program. If qualified, the utility undergrounding
assessment may be deferred until the property is sold or the estate is settled. Information
regarding the State of California Property Tax Postponement Program can be found at the
California State Controller’s Office website:
B-19
01203.0006/675607.2
B-20
01203.0006/675607.2
B-21
Letter of Interest
to underground utilities within the City of Rancho Palos Verdes
01203.0006/675607.2
To: Honorable Mayor and members of the Rancho Palos Verdes City Council
c/o Director of Public Works Department
30940 Hawthorne Boulevard
Rancho Palos Verdes, California 90275-5391
I/We, as owner(s) of property(ies) within the _______________________________ neighborhood
(depicted on the attached map) of the City of Rancho Palos Verdes (“City”) with existing overhead
electrical and communication utility lines and poles, wish to pursue a project to have those utilities
relocated underground in my/our neighborhood.
As such, I/we have reviewed the latest version of the City’s “Guidelines to Underground Utilities
in Residential Neighborhoods and discussed its contents with owners of _[#]_ of the _[#]_
properties in the proposed area of the project. Of the owners that I/we have spoken to, _[#]_ have
expressed their willingness to support a project for undergrounding the overhead utility facilities,
including indicating that they are willing to bear their fair portion of the financial responsibility
for associated project costs.
Therefore, I/we hereby request that the City schedule a meeting with owners of properties from
the area depicted on the attached map and representatives of the City and companies owning
overhead utility facilities in our neighborhood.
Respectfully,
(signature) (signature)
(full name, printed) (full name, printed)
Owner of the property at: Owner of the property at:
(only address number and street name are needed) (only address number and street name are needed)
(signature) (signature)
(full name, printed) (full name, printed)
Owner of the property at: Owner of the property at:
(only address number and street name are needed) (only address number and street name are needed)
B-22
01203.0006/675607.2 B-23
Petition of the City of Rancho Palos Verdes
to Advance Funding for Engineering Services
for a Proposed Undergrounding Project
01203.0006/675607.2
To: Honorable Mayor and members of the Rancho Palos Verdes City Council
c/o Director of Public Works Department
30940 Hawthorne Boulevard
Rancho Palos Verdes, California 90275-5391
To: Honorable Mayor and members of the Rancho Palos Verdes City Council
I/We, being owners of property within an area of the City that we wish to pursue residential utility
undergrounding, hereby request the City Council advance funding for engineering services to:
determine the full scope of the proposed undergrounding;
develop plans, specifications, and an engineering estimate of construction costs
Assess each property’s benefit from the project
Prepare a report that includes:
A map of the project area
The methodology used to determine the benefits to each property from the project
A recommended property-by-property apportioned cost of the project
In support of this petition, Letters of Support from the owner(s) of each property that supports this
petition is attached, and an accompanying check for $500 has been provided to the City as a down
payment and sign of our financial commitment to this effort.
We understand:
A. That the cost of the improvements will be assessed to the land which benefits from the
improvements including our land;
B. That a report will be prepared on the project, including plans and specifications a detailed
cost estimate, and a division of the costs among the benefited parcels of land, and that a
public hearing will be conducted on the report;
C. That the cost of engineering, legal, and other incidental expenses will be included in the
project cost;
D. The initial estimated cost of improvements for each property $50,000;
E. That each property owner may pay their assessment either in cash without interest , or in
installments with interest over a period of 15-20 years;
F. If the parcel’s private property service connection to the utilities is not underground, then
the property owner will be required to convert the service connection, at their owner
expense, after the utility undergounding has been completed. The typical cost is $5,000.
This expense may be added to the assessment.
This petition is filed with you under and pursuant to the provisions of Section 2804 of the Streets
and Highways Code of the State of California.
The petition may be filed in counterpart or may be joined with other petitions for similar work.
B-24
01203.0006/675607.2 B-25
Letter of Support
of the ____________________ Neighborhood’s Petition
to Underground Utilities within the City of Rancho Palos Verdes
01203.0006/675607.2
To: Honorable Mayor and members of the Rancho Palos Verdes City Council
c/o Director of Public Works Department
30940 Hawthorne Boulevard
Rancho Palos Verdes, California 90275-5391
I/We, the undersigned, being owners of the property at __________________________________
hereby support my neighborhood’s efforts to underground utilities within the City of Rancho Palos
Verdes, and the Petition for the City to advance funds for engineering services to develop plans,
specifications and an engineering estimate of construction cost for the project.
In signing this Letter of Support, I/we attest to having read the City’s Guidelines to
Undergrounding Utilities in Residential Neighborhoods, and understand that:
1. The apportioned share, as determined by the City Council, of the project costs will be
assessed to the land which benefits from the improvements, including my/our land, unless
that share is paid at the conclusion of the project;
2. The apportioned share for my property must be paid, even if the project is not completed
and the undergrounding of utilities is not performed (i.e. there is insufficient support for
construction of the project after engineering work has begun);
3. A Public Hearing will be conducted by the City Council to establish an Assessment
District after engineering services work is completed;
4. The costs of engineering, legal and other incidental expenses will be included in the project
cost;
5. The estimated cost of improvements to be financed from the Assessment District for each
parcel is $40,000 – 60,000;
6. Each property owner may pay their assessment in cash without interest, or in installments
with interest over a period of 15 – 20 years; and
7. The parcel’s private property service connection costs associated with the project are the
financial responsibility of the owners of the properties directly benefitting from the
project, not the City’s, and that an appropriate allocation of the costs will be determined
including me/us, and that payment of my/our apportioned share of the project costs will
either be paid at the conclusion of the project or be assessed to the property and paid semi-
annually with the property taxes.
The improvements, which we hereby request to be acquired for the benefit of the property within
the above-mentions proposed assessment district, are the conversion of existing overhead electrical
and communications facilities to underground locations and the removal of poles.
We understand:
A. That a report will be prepared on the project, including plans and specifications a detailed
cost estimate, and a division of the costs among the benefited parcels of land, and that a
public hearing will be conducted on the report;
B-26
Letter of Support
of the ____________________ Neighborhood’s Petition
to Underground Utilities within the City of Rancho Palos Verdes
01203.0006/675607.2
B. That each property owner may pay their assessment either in cash without interest, or in
installments with interest over a period of 15-20 years;
C. If the parcel’s private property service connection to the utilities is not underground, then
the property owner will be required to convert the service connection, at their owner
expense, after the utility undergounding has been completed. The typical cost is $5,000.
This expense may be added to the assessment.
Respectfully,
(signature) (signature)
(full name, printed) (full name, printed)
(email address) (email address)
(home phone number) (home phone number)
(cell/mobile phone number) (cell/mobile phone number)
B-27
01203.0006/675607.2 B-28
Letter of Non-Support
to Underground Utilities within the City of Rancho Palos Verdes
01203.0006/675607.2
To: Honorable Mayor and members of the Rancho Palos Verdes City Council
c/o Director of Public Works Department
30940 Hawthorne Boulevard
Rancho Palos Verdes, California 90275-5391
I/We, the undersigned, being owners of the property at __________ [property address]_________
DO NOT SUPPORT the efforts to underground utilities within my neighborhood in the City of
Rancho Palos Verdes for the following reasons: (check all that apply)
☐ Personal expenses would be a financial burden
☐ Do not wish to incur personal expenses related to the project
☐ Do not believe that property owners should pay for the project
☐ The overhead utilities do not bother me and/or I like them
☐ Do not want to disrupt landscape and/or hardscape on my property to underground utilit y
connections to my home that are currently overhead
☐ Other (please specify)
☐ Do not wish to specify
Property Owner(s) (please print name) Property Owner Signature(s)
Property Address Mailing Address (if different from the Property Address)
Alternatively, if the property owner does not wish to complete this form, a representative of the
Neighborhood Committee or the Neighborhood Representative can complete the form to document
a verbal conversation with the property owner, as long as it is so noted.
Committee Representative (please print name) Committee Representative Signature
B-29
01203.0006/675607.2 B-30
Petition to the City of Rancho Palos Verdes
to form an Assessment District
01203.0006/675607.2
To: Honorable Mayor and members of the Rancho Palos Verdes City Council
I/We, the undersigned, being owners of property within the area of a proposed assessment district
to be established under the Municipal Improvement Act of 1913, Division 12 (Sections 10000, et
seq.) of the Streets and Highways Code of the State of California (the “Act”), do hereby petition
the City Council of the City of Rancho Palos Verdes (the “City”) to forthwith commence and carry
through to completion under the provisions of said Act, all proceedings for the formation of an
Assessment District as hereinafter described and for the acquisition of the hereinafter mentioned
improvements within the City of Rancho Palos Verdes, County of Los Angeles, State of California.
The area within the City, which we hereby request the City Council to form as an Assessment
District, as hereinabove mentioned, is shown on the map attached hereto as Exhibit A entitled
“Map of Proposed Undergounding Assessment District for the ___________ neighborhood.”
The improvements, which we hereby request to be acquired for the benefit of the property within
the above-mentions proposed assessment district, are the conversion of existing overhead electrical
and communications facilities to underground locations and the removal of poles.
We understand:
G. That the cost of the improvements will be assessed to the land which benefits from the
improvements including our land;
H. That a report will be prepared on the project, including plans and specifications a detailed
cost estimate, and a division of the costs among the benefited parcels of land, and that a
public hearing will be conducted on the report;
I. That the cost of engineering, legal, and other incidental expenses will be included in the
project cost;
J. The estimated cost of improvements to be financed from Assessment District for each
parcel is $40,000 - $60,000;
K. That each property owner may pay their assessment either in cash without interest, or in
installments with interest over a period of 15-20 years;
L. If the parcel’s private property service connection to the utilities is not underground, then
the property owner will be required to convert the service connection, at their owner
expense, after the utility undergounding has been completed. The typical cost is $5,000.
This expense may be added to the assessment.
This petition is filed with you under and pursuant to the provisions of Section 2804 of the Streets
and Highways Code of the State of California.
The petition may be filed in counterpart or may be joined with other petitions for similar work.
B-31
01203.0006/675607.2 B-32
Letter of Support
of the ____________________ Neighborhood’s Petition
to form an Assessment District
01203.0006/675607.2
Petition of Interest
to underground utilities within the City of Rancho Palos Verdes
To: Honorable Mayor and members of the Rancho Palos Verdes City Council
I/We, the undersigned, being owners of property within the area of a proposed assessment district
to be established under the Municipal Improvement Act of 1913, Division 12 (Sections 10000, et
seq.) of the Streets and Highways Code of the State of California (the “Act”), do hereby petition
the City Council of the City of Rancho Palos Verdes (the “City”) to forthwith commence and carry
through to completion under the provisions of said Act, all proceedings for the formation of an
Assessment District as hereinafter described and for the acquisition of the hereinafter mentioned
improvements within the City of Rancho Palos Verdes, County of Los Angeles, State of California.
The area within the City, which we hereby request the City Council to form as an Assessment
District, as hereinabove mentioned, is shown on the map attached hereto as Exhibit A entitled
“Map of Proposed Undergounding Assessment District for the ___________ neighborhood.”
The improvements, which we hereby request to be acquired for the benefit of the property within
the above-mentions proposed assessment district, are the conversion of existing overhead electrical
and communications facilities to underground locations and the removal of poles.
We understand:
A. That the cost of the improvements will be assessed to the land which benefits from the
improvements including our land;
B. That a report will be prepared on the project, including plans and specifications a detailed
cost estimate, and a division of the costs among the benefited parcels of land, and that a
public hearing will be conducted on the report;
C. That the cost of engineering, legal, and other incidental expenses will be included in the
project cost;
D. The estimated cost of improvements to be financed from Assessment District for each
parcel is $40,000 - $60,000;
E. That each property owner may pay their assessment either in cash without interest, or in
installments with interest over a period of 15-20 years;
F. If the parcel’s private property service connection to the utilities is not underground, then
the property owner will be required to convert the service connection, at their owner
expense, after the utility undergounding has been completed. The typical cost is $5,000.
This expense may be added to the assessment.
B-33
Letter of Support
of the ____________________ Neighborhood’s Petition
to form an Assessment District
01203.0006/675607.2
This petition is filed with you under and pursuant to the provisions of Section 2804 of the Streets
and Highways Code of the State of California.
The petition may be filed in counterpart or may be joined with other petitions for similar work.
Property Information
Property Address Mailing Address (if different from the Property Address)
Assessor Parcel Number (APN):
Property Owner(s) (please print name) Property Owner Signature(s)
B-34
01203.0006/675607.2 B-35
Explanation of Non-Support
to Underground Utilities within the City of Rancho Palos Verdes
01203.0006/675607.2
To: Honorable Mayor and members of the Rancho Palos Verdes City Council
c/o Director of Public Works Department
30940 Hawthorne Boulevard
Rancho Palos Verdes, California 90275-5391
I/We, the undersigned, being owners of the property at __________ [property address]_________
DO NOT SUPPORT the efforts to underground utilities within my neighborhood in the City of
Rancho Palos Verdes for the following reasons: (check all that apply)
☐ Personal expenses would be a financial burden
☐ Do not wish to incur personal expenses related to the project
☐ Do not believe that property owners should pay for the project
☐ The overhead utilities do not bother me and/or I like them
☐ Do not want to disrupt landscape and/or hardscape on my property to underground utility
connections to my home that are currently overhead
☐ Other (please specify)
☐ Do not wish to specify
Property Owner(s) (please print name) Property Owner Signature(s)
Property Address Mailing Address (if different from the Property Address)
Alternatively, if the property owner does not wish to complete this form, a representative of the
Neighborhood Committee or the Neighborhood Representative can complete the form to document
a verbal conversation with the property owner, as long as it is so noted.
Committee Representative (please print name) Committee Representative Signature
B-36
01203.0006/675607.2 B-37
01203.0006/675607.2
To: [Property Owner]
[Mailing Address]
[City], [State] [Zip Code]
Re: Assessment of liability to the property at __________________
(Assessor Parcel Number (APN): _______________)
To the owners of the above referenced property,
An assessment is being levied against the above referenced property as part of the Assessment
District established under the Municipal Improvement Act of 1913, Division 12 (Sections 10000,
et seq.) of the Streets and Highways Code of the State of California (the “Act”) on ____ for
improvements within the City of Rancho Palos Verdes, County of Los Angeles, State of California.
The liability assigned to the above referenced property is $ .00, and is your financial responsibility.
If you have any questions regarding this assessment, please contact:
City of Rancho Palos Verdes
Department of Public Works
30940 Hawthorne Boulevard
Rancho Palos Verdes, California 90275
B-38
01203.0006/675607.2 B-39
01203.0006/675607.2
To: Honorable Mayor and members of the Rancho Palos Verdes City Council
c/o Director of Public Works Department
30940 Hawthorne Boulevard
Rancho Palos Verdes, California 90275-5391
I/We, the undersigned, being owners of the property at __________ [property address]_________
have received a Draft Notice of Assessment for my/our property and
☐ Support / Vote FOR
☐ Opposed / Vote AGAINST
The formation of an Assessment District (as described and defined in the City’s Guidelines to
Underground Utilities in Residential Neighborhoods)
Please provide comments to explain your vote, if you wish. (Not required)
Property Owner(s) (please print name) Property Owner Signature(s)
Property Address Mailing Address (if different from the Property Address)
B-40
01203.0006/675607.2 B-41
01203.0006/675607.2
To: [Property Owner]
[Mailing Address]
[City], [State] [Zip Code]
Re: Assessment of liability to the property at __________________
(Assessor Parcel Number (APN): _______________)
To the owners of the above referenced property,
An assessment is being levied against the above referenced property as part of the Assessment
District established under the Municipal Improvement Act of 1913, Division 12 (Sections 10000,
et seq.) of the Streets and Highways Code of the State of California (the “Act”) on ____ for
improvements within the City of Rancho Palos Verdes, County of Los Angeles, State of California.
The liability assigned to the above referenced property is $ .00, and is your financial responsibility.
If you have any questions regarding this assessment, please contact:
City of Rancho Palos Verdes
Department of Public Works
30940 Hawthorne Boulevard
Rancho Palos Verdes, California 90275
B-42
01203.0006/675607.2
B-43
Consent for Construction of Home Service Connection
01203.0006/675607.2
To: Honorable Mayor and members of the Rancho Palos Verdes City Council
c/o Director of Public Works Department
30940 Hawthorne Boulevard
Rancho Palos Verdes, California 90275-5391
I/We, the undersigned, being owners of the property at __________ [property address]_________
hereby acknowledge that a new service connection to our home will be necessary when overhead
utilities are relocated underground in our neighborhood, and that costs associated with establishing
this new connection is my/our financial responsibility.
I/We hereby request that the City of Rancho Palos Verdes, Southern California Edison and/or third
party contractors hired, construct the necessary service connections as part of the undergrounding
project.
I/We acknowledge that such construction may require trenching from the street to the main
structure of the home, and will likely damage or otherwise disturb existing vegetation.
I/We further acknowledge that the connection will be constructed in the most cost effective way
possible, and is likely to not be the most aesthetically pleasing manner possible. This includes, but
is not limited to replacing decorative vegetation such as flowers and bushes, hardscape such as
rock or mulch, or replacement of driveways or sidewalks that are cut for required trenching.
Property Information
Property Address Mailing Address (if different from the Property Address)
Assessor Parcel Number (APN):
Property Owner(s) (please print name) Property Owner Signature(s)
B-44