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Department of Streets and Fleet
Reference: Undergrounding Funds, Southern Street, Tower Road, Carmichael Park Project
To: Mayor Richard N. McLean and Members of City Council
Through: Manuel Esquibel, City Manager
Prepared By: Joe Smith, Director of Streets & Fleet
Date Prepared: May 27, 2015
PURPOSE
The purpose of this report is to update the status of undergrounding fund accruals from United Power and to present a potential project for conversion of streetlights to LED fixtures.
BACKGROUND
Ordinance No. 2130 adopted an agreement with United Power which was issued a franchise for providing electric service. This agreement calls for United Power to "allocate an annual amount, equivalent to one and one-half percent (1-1/2%) of the preceding calendar year's electric revenues derived from customers within the City for the purpose of under-grounding United Power's overhead electric distribution facilities within the City, at the expense of United Power, as requested by the City"
Contractual responsibility as defined in the Franchise Agreement requires United Power to make funds available for undergrounding of overhead power lines and associated street lighting. United Power controls all funds and maintains accounting for the accruals and contracts for the use of the funds under City direction. The fund allows for the City to use up to three (3) years of undergrounding funds in advance, with the 1.5% allocation used to pay back the amount advanced. These undergrounding funds can also be used for projects such as converting to LED streetlights or for other energy efficiency projects related to United Power's supply of electricity to the City.
The current amount available for projects in the underground commitment is $1,216,813. The total amount that could currently be advanced for projects is approximately $1,350,000. This is a total of approximately $2,566,813 that could be made available for projects.
Recent projects that have been comple...
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