HomeMy WebLinkAbout9 Developement Agreement with Town of Truckee -, AGENDA ITEM #9
MEETING DATE: September 20, 2023
TO: Board of Directors
FROM: Keith Renshaw, Interim Electric Engineering Manager
Joe Horvath, Assistant General Manager/ Electric Utility Director
SUBJECT: Authorization of a Development Agreement with the Town of
Truckee for the West River Street Undergrounding Project.
APPROVED BY.
Brian C. Wright, General Manager
RECOMMENDATION:
A. Authorize the General Manager to enter into a development agreement with the
Town of Truckee for the West River Street Undergrounding Project for a total
cost to the District not to exceed $700,000 as to form approved by District
Counsel; and
B. Authorize the General to execute a licensing agreement with Union Pacific
Railroad (UPRR) for the undergrounding of electric utility infrastructure on West
River Street for a one-time fee of $129,425.40, to be divided equally between the
District and the Town of Truckee.
BACKGROUND:
In early 2023 the Town of Truckee began work on the West River Street Streetscape Improvement
Project. The project includes sidewalks, curbs, gutters, crosswalks,ADA accessibility, landscaping,
lighting, utility undergrounding, storm drainage improvements,as well as parking
improvements. This project includes streetscape design for West River Street between Bridge
Street and Riverside Drive/Mill Street. In order to accommodate all of the streetscape
improvements, it is also necessary to take on the project of undergounding utilities between 10331
West River Street to 10083 East River Street. (West River Street Scape Project).
Early in the design phase of the project,Town staff reached out to the District's utility engineering
staff to begin the process of assessing utility relocations necessary to accommodate the street scape
improvements along West River Street, East River Street and Bridge Street. The majority of the
District's water utility distribution pipeline alignments were not impacted, requiring only a few minor
re-alignments or off-sets along Bridge Street to allow for the installation of proper drainage
infrastructure. The streetscape improvement project does require, however, significant
modifications to the District's overhead electric distribution system infrastructure, including the
undergrounding of overhead assets along a stretch of West River Street, the intersections where
West River St crosses Riverside Dr and Bridge St. The undergrounding of the overhead utilities will
take place in both public right of ways and Union Pacific Railroad (UPRR) owned land.
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Over the past several years the District has partnered with the Town of Truckee on various street
scape improvement projects requiring utility infrastructure modifications, including Envision Donner
Pass Road, the roundabout project at Donner Pass Rd/1-80 exit, and the Church Street extension
project. These partnerships have included cost sharing agreements in which the Town of Truckee
assumes responsibility for the civil infrastructure improvements (excavations, vaults, conduits,
paving, etc.)while the District takes on the cost of engineering, inspections, and installation of
electric infrastructure (wire, transformers,etc) and removal of overhead assets. This partnership is
viewed as mutual public benefit and in alignment with the District's overarching strategic initiatives.
ANALYSIS AND BODY:
To ensure coordination and appropriate distribution of costs and responsibilities, the
District will enter into a development agreement associated with the undergrounding
project. District code requires Board approval for the District to enter into development
agreements in which the total value of improvements exceeds $400,000.
District electric engineering staff worked with the Town of Truckee on the design and
engineering of the proposed underground electric utility infrastructure alignments,
including the electric distribution system and future fiber communication assets. The
development agreement includes cost sharing of the undergrounding project for which
the Town will be responsible for the civil design and construction improvements, while
the District will be responsible for installation of new underground electric assets and
removal of existing overhead electric utilities. The estimated total project cost for the
District is $626,585. This estimate includes installation of the following:
1. Installation of approximately 7000' of underground primary cable
2. Installation of approximately 3000' of underground secondary cable
3. Installation of primary and secondary underground termination and junction
components for a combined total of 18 underground facility locations
4. Installation of one primary pad-mounted electric distribution switch
5. Installation of two underground electric distribution service transformers
6. Replacement of two overhead electric distribution poles and installation of
associated anchoring facilities located at the west and east ends of the project;
transition points between existing overhead and new underground infrastructure
The estimate includes all associated engineering, inspection, and electric line crew
labor associated with the overhead to underground of District owned and operated
electric distribution facilities included in the Town's scope of work and project
boundaries.
The estimate above also includes removal of all overhead electric facilities within the
project's boundaries along West and East River Streets including:
1. The removal of approximately 2450 circuit feet of 3 phase primary overhead wire
2. The removal of approximately 2700' feet of overhead secondary and service wire
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3. The removal of 16 electric utility poles, including all associated pole top,
secondary, and anchoring hardware
4. The removal of 2 overhead transformer banks (2 or 3 phase), one 1 phase
overhead transformer bank, and one overhead load-break distribution switch
The estimate assumes that District electric facilities would be the last off the poles and
therefore, the District is required to remove all of the utility poles per Joint Pole
Agreement (JPA) bylaws. As part of the Town's scope of work, they will also be
converting electric meter service panels from overhead to underground. This work will
require District electricians to perform inspections after conversion and prior to
energization. The estimate above includes labor allocated for electrician time as well.
The estimated cost for the Town's responsibilities associated with the undergrounding
portion of the project is approximately $900,000.
A significant portion of the underground utility alignment along West River St. resides
within property owned by UPRR requiring an access licensing agreement between
UPRR and each individual utility. The Town has negotiated terms with UPRR on behalf
of the project and utilities impacted by the project. UPRR, the Town and each of the
utilities have reached preliminary agreements for licensing agreement costs based on
the total costs of the underground corridor necessary for underground electric and
communication assets and each utility's proportional share of the corridor (linear feet
and size of conduit). The preliminary agreement includes the following proportional
cost share:
• 52% Electric Utility (TDPUD) _ $129,425.40
• 37% Communication (AT&T) _ $92,091.15
• 11% Cable (Atice) _ $27,378.45
District and Town staff have negotiated the terms of the development agreement for the
undergrounding of overhead electric utilities to include a 50/50 cost share of the UPRR
licensing agreement with the District's contribution being a one-time fee of
approximately $65,000.
Staff is commending Board authorization to enter into a development agreement with
the Town of Truckee for the undergrounding of utilities along West River Street for a
total cost to the District not to exceed $700,000.
GOALS AND OBJECTIVES:
District Code 1 .05.020 Objectives:
1. Responsibly serve the public.
4. Provide reliable and high quality electric supply and distribution system to meet
current and future needs.
6. Manage the District in an effective, efficient and fiscally responsible manner.
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District Code 1.05.030 Goals:
1. Manage for Financial Stability and Resiliency
3. Engage with our customers and communities in a welcoming and transparent way to
identify opportunities.
4. Take the best of private sector thinking to modernize the utility and add value to our
communities.
FISCAL IMPACT:
The West River Street Undergrounding Project was not included in the FY2023 Electric
Utility Budget. The project is in alignment with the District's strategic initiative for
undergrounding overhead utilities and sufficient funds exist in the Electric Utility Capital
Reserve Fund. The current balance of the Electric Utility Capital Reserve Fund is
approximately $11.5M.
ATTACHMENTS:
None
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