Underground Utilities Special Activity Fund (Underground Surtax) City Council Item 4 February 4, 2019

Recommendation Continue Underground Utilities Surtax Use Surtax funds for all purposes stated in Ordinance Expenditures subject to City Council approval Continue Underground Utility Districts Program  PWP is neutral MSC approved continuation of both programs

Two Independent Decisions Underground Surtax PMC (4.24): Generates ~$5.5 million annually Can be used for various purposes allowed by Ordinance Options- Continue, Suspend, or Terminate? Recommended Underground Utility Districts Program (PMC 13.14) Converts approximately 0.5 to 0.7 miles per year Options - Continue or Discontinue? Staff is Neutral

Allowed Surtax Fund Uses Underground Utility District Projects New Underground Utilities Additions, construction and extensions (electric system, communication, street lights, traffic signals..) Replacement and Repair of Previously Converted Utilities Customer Rebates for Undergrounding

Surtax Provides Greater Benefits Greater Community-Wide Benefits Increased reliability of electricity Improved street lights Improved traffic control systems Expanded fiber optic communication network Reduced burden on General Fund Reduced size of Future Electric Rate Increases Public Necessity – Health – Safety – Welfare – Improved Infrastructure - Cost Effective

Conceptual Surtax Fund Uses ($000) Spending Category FY2019 FY2020 FY2021 FY2022 FY2023 Total Underground District Projects (PW & PWP) 835 760 7,650 10,550 8,700 28,495 Surtax Funded Customer Rebates 50 100 450 PWP Funded Underground Utilities 4,200 4,500 21,900 Other Departments’ Underground Utilities   PW Street Lighting Associated with Conversion Projects 500 2,000 PW Replacement and Repair of Underground Electric Utilities (Street Lights) 400 DOT Underground Communications Utilities (Traffic) 200 800 DoIT Underground Communications Utilities (Telecom Fund) 245 180 150 120 815 Total Expenditures 5,330 6,040 13,200 16,070 14,220 54,860

Projected Surtax Fund Balance ($000) Spending Category FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 Initial Balance 47,544 50,709 51,479 51,554 44,469 34,444 Revenues 5,777 5,600 Interest 732 500 515 516 445 344 Subtotal 54,053 56,809 57,594 57,669 50,514 40,388   Total Expenditures (3,344) (5,330) (6,040) (13,200) (16,070) (14,220) Year-End Fund Balance 26,168

Underground Electric Repair

Other Underground Utilities Fiber Optic Communications Street Light Electrical Traffic Control

Underground Utility Districts Completed Streets

Current Status District Length (mi) Cost ($M) Cost per Mile ($M/mi) Cost Per Property ($) Hill Avenue 1.4 10 7 47,300 Alpine Street 0.6 2.1 4.5 46,100 Mountain Street 9.0 15.3 155,200 N Raymond 2.0 24 12.0 97,200 Hill and Alpine streets are completed/nearly completed Mountain and Raymond approved but not worked on pending Council decision

Informal Community Feedback

Thank You

Past Spending Outside of Established Utility Districts Category/Project $000 Miscellaneous Undergrounding Projects and Customer Rebates $2,709 La Loma Bridge $2,165 Pasadena Ice Rink $258 PW Design & Planning for Future Districts $112 Other Miscellaneous $26 Total Expenses Outside of UG Districts $5,271 FY2019 Approved Budget for Outside of UG Districts Communications $ 0.6 Million PWP- Undergrounding $ 6.2 Million

Category Miles and Timeline About ¼ of the City’s OH utility lines are not suitable for undergrounding The overall 300-400 year timelines is based on current funding and costs

UUP Street Categories Category Type Total Length I Arterial Roads Collector Roads 126 Miles 75 Mile Completed 51 Miles Remain II Residential Rear Property Easements Alleys 94 Miles Total 220 Miles