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HomeMy WebLinkAbout2006-01-18 STAFF REPORTS 3A OF PALM SA V � Cq<IFO R��P City Council Staff Report CITY COUNCIL JANUARY 18, 2006 LEGISLATIVE i Subject: RESOLUTION OF INTENTION FOR A RULE 20A UTILITY UNDERGROUNDING DISTRICT ALONG EAST PALM i CANYON DRIVE From: City Manager I I Initiated by: Director of Public Works/City Engineer I SUMMARY I This item will initiate proceedings and set a public hearing for the proposed formation of a Rule 20A Utility Undergrounding District on the south side of East Palm Canyon Drive from Gene Autry Trail to Palm Canyon Wash. The public hearing date is proposed for February 1, 2006. RECOMMENDATION: 1) Adopt Resolution No. "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA DECLARING ITS INTENTION TO ESTABLISH A RULE 20A UTILITY UNDERGROUNDING DISTRICT ON THE SOUTH SIDE OF EAST PALM CANYON DRIVE FROM GENE AUTRY TRAIL TO PALM CANYON WASH." STAFF ANALYSIS: On April 21, 2005 Staff met with representatives of the Southern California Edison Company (SCE), regarding undergrounding of existing overhead utilities. Rule 20 is the Edison Company's tariff rule approved by the California Public Utilities Commission (CPUC) for the conversion of overhead electric facilities to underground facilities. Rule 20 specifies the circumstances and the role of general rate payer versus applicant involvement In the payment for the conversion of overhead electric facilities. Rule 20A criteria was established in order to maintain a general public benefit, while recovery of the costs of an undergrounding project are included in electric rates. An allocation concept was developed in order to ensure equitable treatment for every local government as well as a fair division of SCE funds. The formula was developed by SCE along with the League of California Cities and was approved by CPUC. In 2002 the Item No. 3 ./'"'/� 1. i I l i City Council Staff Report January 18, 2006-Page 2 i Resolution of Intention for Rule 20A Utility Undergrounding District I I CPUC approved a decision which modified the ability of local governments to mortgage their annual allocation up to a five year amount. I Staff's meeting with SCE staff yielded the information that the City of Palm Springs was eligible for an approximately $2.2million utility undergrounding project. In order to qualify a project for Rule 20A funding, there must be 1) a heavy concentration of electric facilities, 2) a heavy volume of pedestrian or vehicle traffic or 3) civic areas, recreation areas and scenic areas, in addition to the lines being along arterial or major collector roads. Meeting any one of the criteria qualifies the project for Rule 20A funding. Subsequent to the meeting with SCE, staff on July 19, 2005 proposed the following two projects for Rule 20A funding: 1) west side of Sunrise Way from East Palm Canyon Drive to Sunny Dunes Road 2) east side of Sunrise Way from Vista Chino to San Rafael Drive. Staff requested SCE to prepare a cost estimate to determine if construction of these two projects could be accomplished, given the approximately $2.2million project budget that the City of Palm Springs would be permitted to have. On October 17, 2005, Staff received an estimate from SCE. The estimate showed the East Palm Canyon Drive to Sunny Dunes Road portion has an estimated cost of $1.26million. The Vista Chino to San Rafael Drive portion was estimated to cost $1.9million. Although, the total of these project costs is approximately $3.1million, the City currently is holding covenants on over 1400LF of property frontage along Sunrise Way. These covenants resulted from development which occurred in the past within these limits. And if called by the City as a part of this project, would result in the total cost being reduced to the City by approximately $450K. The covenants recorded against the properties at the time of development require the property owner to participate in their fair share of the undergrounding costs, as determined by the frontage of the particular property. The resulting project estimate would be reduced to approximately $2.6million, which SCE has informed us is within the range allowable for SCE to proceed with an undergrounding district based on five year mortgaging of allocation funds. The last City Rule 20A Undergrounding Project was completed in 1999 along East Palm Canyon Drive. A public hearing for these proposed districts was scheduled for December 7, 2005. At that public hearing, some of the property owners upon whose properties covenants were recorded objected to the payment of$30-$50,000 that would be required. Council did not form either district and instructed staff to return with alternate locations. Staff reviewed other candidate locations, and identified two potential Rule 20A Undergrounding Districts: 1) on the south side of East Palm Canyon Drive from Gene Autry Trail to Palm Canyon Wash; or 2) on the north side of Ramon Road from Cerritos to 500' west of El Cielo. The East Palm Canyon Drive segment is r City Council Staff Report January 18, 2006- Page 3 Resolution of Intention for Rule 20A Utility Undergrounding District estimated to cost approximately $2.6million. The Ramon Road segment is estimated to cost $1.2million. The Ramon Road segment has no recorded covenants on adjacent properties while the East Palm Canyon Drive segment has one, from VIP Motors. This one covenant, if called as a part of this project, would reduce the cost of this segment by approximately $280,000. Director of Community & Economic Development, John Raymond, has spoken with Jerry Johnson of VIP Motors who has expressed a willingness to pay their fair share amount in accordance with the covenant because the district would underground an adjacent 650 feet of frontage across a vacant property also owned by VIP. It is staffs recommendation that the East Palm Canyon Drive corridor be selected as the next Rule 20A Utility Undergrounding District. Letters of Notice will be mailed to all property owners along the chosen roadway within the limits noted above, as authorized by the attached Resolution of Intention. Meeting notices will also be published in The Public Record. A Resolution of Intention is attached for establishing a Rule 20A Utility Undergrounding District for East Palm Canyon Drive. If City Council should choose to proceed with a Rule 20A Utility Undergrounding District for Ramon Road, a Resolution of Intention for Ramon Road is also attached. The Resolution of Intention will call for a public hearing on February 1, 2006, to consider the formation of the Rule 20A Underground Utilities District. Also, attached are Proposed District Boundary Maps and Cost Estimates. FISCAL IMPACT: Finance Director Review: All construction costs are being paid by SCE and reimbursed from Rule 20A allocations and property owner contributions as required by covenant and no local general funds are required for the work. ALTERNATIVES: Representatives of the Deepwell neighborhood have requested that Council re- consider the District for the west side of Sunrise Way from East Palm Canyon Drive to Sunny Dunes Road. This segment was presented to Council on November 16 and December 7, 2005. It has one covenant on a residential parcel. That amountfif the covenant is called, is approximately $30,000 for the property at 1359 South Sunrise Way. Council directed staff to return with alternative segments for utility undergrounding and these are the subject of this staff report. David J. Barakian Thomas J. WiWdh Director of Public Works/City Engineer Asst City Manager-Dev Services i I City Council Staff Report January 18, 2006- Page 4 Resolution of Intention for Rule 20A Utility Undergrounding District David H. Ready - � City Manager Attachments: 1. Resolution of Intention - District for south side of East Palm Canyon Drive 2. Resolution of Intention - District for north side of Ramon Road 3. Proposed District Boundary Map - District, south side of East Palm Canyon Drive 4. Proposed District Boundary Map - District, north side of Ramon Road 5. Cost Estimate - Both Districts 6. Photos i RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA GIVING NOTICE OF ITS INTENTION TO ESTABLISH A RULE 20A UTILITY UNDERGROUNDING DISTRICT ON THE SOUTH SIDE OF EAST PALM CANYON DRIVE FROM GENE AUTRY TRAIL TO PALM CANYON WASH WHEREAS, Rule 20 was approved by the California Public Utilities Commission (CPUC) and provides or a conversion of overhead electric facilities to underground facilities; and WHEREAS, it is recommended that such an undergrounding utility district, hereinafter called District be formed within the City of Palm Springs, County of Riverside, State of California, on the south side of East Palm Canyon Drive from Gene Autry Trail to Palm Canyon Wash. THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS: Section 1. THE CITY COUNCIL HEREBY DECLARES its intention to conduct a Public Hearing concerning the Rule 20A Utility Undergrounding District on the south side of East Palm Canyon Drive from Gene Autry Trail to Palm Canyon Wash. This public hearing is to ascertain whether public necessity', health, safety or welfare requires the removal of poles, overhead wires and associated overhead structures and the underground installation of wires and facilities for supplying electric, communication or similar or associated service in any such District herein described above. Section 2. Any interested person may file a written protest with the City Clerk prior to the conclusion of the hearing, or having previously filed protest, may file a written withdrawal of that protest. A written protest shall state all grounds of objection and protest by a property owner, shall contain a description sufficient to identify the property owned by such property owner. At the public hearing, all interested persons shall be afforded the opportunity to hear and be heard. Section 3. NOTICE IS HEREBY GIVEN that a Public Hearing on these matters will be held by the City Council of the City of Palm Springs, California on Wednesday, February 1, 2006 at 6:00 p.m., or as soon thereafter as feasible in the City Council Chamber at City Hall, located at 3200 East Tahquitz Canyon Way, Palm Springs, California. Section 4. The City Clerk shall cause notice to be given of the time and place of the Public Hearing by causing the publishing of this Resolution once in the local paper not less than ten (10) days before the date of the hearing and shall notify all affected property owners by mailing a copy of this resolution to such property owners and utilities concerned at least ten (10) days prior to the date thereof and by posting a copy of this Resolution on the official bulletin board customarily used by the City Council for the posting of such notices, pursuant to the Act. Section 5. The area proposed to be included in the District is shown upon that certain map entitled Rule 20A project on the south side of East Palm Canyon Drive from Gene Autry Trail to Palm Canyon Wash, which is on file with the office of the City Clerk of the City of Palm Springs, California. ADOPTED THIS day of , 2006. David H. Ready, City Manager ATTEST: James Thompson, City Clerk CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, California hereby certify that Resolution No. , is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the city of Palm Springs, California on by the following vote: AYES: NOES: ABSENT: ,ABSTAIN: James Thompson, City Clerk City of Palm Springs, California RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA GIVING NOTICE OF ITS INTENTION TO ESTABLISH A RULE 20A UTILITY UNDERGROUNDING DISTRICT ON THE NORTH SIDE OF RAMON ROAD FROM CERRITOS TO 500'WEST OF EL CIELO WHEREAS, Rule 20 was approved by the California Public Utilities Commission (CPUC) and provides or a conversion of overhead electric facilities to underground facilities; and WHEREAS, it is recommended that such an undergrounding utility district, hereinafter called District be formed within the City of Palm Springs, County of Riverside, State of California,on the north side of Ramon Road from Cerritos to 500, west of El Cielo. THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS: Section 1. THE CITY COUNCIL HEREBY DECLARES its intention to conduct a Public Hearing concerning the Rule 20A Utility Undergrounding District on the north side of Ramon Road from Cerritos to 500' west of El Cielo. This public hearing is to ascertain whether public necessity, health, safety or welfare requires the removal of poles, overhead wires and associated overhead structures and the underground installation of wires and facilities for supplying electric, communication or similar or associated service in any such District herein above described. Section 2. Any interested person may file a written protest with the City Cleric prior to the conclusion of the hearing, or having previously filed protest, may file a written withdrawal of that protest. A written protest shall state all grounds of objection and protest by a property owner, shall contain a description sufficient to identify the property owned by such property owner. At the public hearing, all interested persons shall be afforded the opportunity to hear and be heard. Section 3. NOTICE IS HEREBY GIVEN that a Public Hearing on these matters will be held by the City Council of the City of Palm Springs, California on Wednesday, February 1, 2006 at 6:00 p.m., or as soon thereafter as feasible in the City Council Chamber at City Hall, located at 3200 East Tahquitz Canyon Way, Palm Springs, California. Section 4. The City Clerk shall cause notice to be given of the time and place of the Public Hearing by causing the publishing of this Resolution once in the local paper not less than ten (10) days before the date of the hearing and shall notify all affected property owners by mailing a copy of this resolution to such property owners and utilities concerned at least ten (10) days prior to the date thereof and by posting a copy of this Resolution on the official bulletin board customarily used by the City Council for the posting of such notices, pursuant to the Act. Section 5. The area proposed to be included in the District is shown upon that certain map entitled Rule 20A project on the north side of Ramon Road from Cerritos to 500' west of El Cielo, which is on file with the office of the City Clerk of the City of Palm Springs, California. ,ADOPTED THIS day of 12006. David H. Ready, City Manager ATTEST: James Thompson, City Clerk CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, California hereby certify that Resolution No. , is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the city of Palm Springs, California on by the following vote: ,AYES: NOES: ABSENT: ,ABSTAIN: ,James Thompson, City Clerk City of Palm Springs, California ©,, I ,' •ono � A ' � � 4 c�' aE s �a•5 mN9{ y.ti •I'�� PORiOT 1. .vr �E K "2 \\ & z 152 6©« V LSSESSOPS MYP BN 60/4G/5 Q NOV F/VEFS/OE,la/Nry Cx[/FA J 1,... — ea� .r✓ daeu.w �' �_�� /PeecN sj ,® ,m vav •sz[. ..-.. _ �, a"p .o®c.r o.o.lx-J ,aJ 'a,.. 0 :ga 2 OC' i o RAMON ROAD -- A� OAD BAMOK_�O n ._ ._ {•• t 9.. zh N Ir RA-_CH RC — — _ - _� -iQ40____ tiN AQUERO--ROAD : V14 AQWEo6 k_G4W O O -- .ti • ' �,_ "" v. —_ _ —•,,�_— — — SASTOBRSTO -ROAD —ROAD T.,." �rRROAb' -- Dave Barakian I From: Mike.Beard@SCE.com Sent: Wednesday, December 21, 2005 3:14 PM To: Dave Barakian Cc: Lin.Juniper@SCE.com; Mike.Beard@SCE.com Subject: RE: Rule 20A E. Palm Canyon/Gene Autry Ramon Rd. Cerritos to Cielo. � Dave. I conducted a field survey on E. Palm canyon and Ramon Rd. on 12/20. My estimated cost are listed below. E. Palm Canyon, From Gene Autry to Palm Canyon Wash. Approx 5700 feet. 1- 33kv circuit 1-12kv circuit 1-4. 8kv circuit The estimate for converting this section of line to underground is $ 2.6 m. Approx. 3500 feet. 1-33kv circuit 1-12kv circuit The estimate for converting this section of line to underground is $ 1.225m A revised estimate will be sent to you after the design is completed. Please call me if you have any questions. See you on January 4th, 9a. 1 I ,nr 2 u:. LOOKING WESTBOUND ON RAMON ROAD FROM 500 FEET WEST OF EL CIELO ROAD it * , Emmarawµ • LOOKING EASTBOUND ON RAMON ROAD AT CERRITOS ROAD iR` I er, •� � ♦ 1 `It 1 III I• 4 LOOKING WESTBOUND ALONG PALM CANYON DRIVE • • , LOOKING e xi uvF1 w m� 'e'�elillA �� �4f� 9.�1,�A���'9'.4� :• ,bw�Mvhrc, y M. u MY:M�"aMFmM4W"; .. '• nwaimla♦R �0. '�°L'qi g u f r ,i .. uu..r• . sn..a.r.,.,;.+AAIA'tapx rxMmnAfM. .I. h� 4. i� i pis.r , .g .�.�, I r• ...wsl�,,e,pn. p�°. ., i� r n, ... _ ,� .n�_a . .,MNIe,.n•,gxa•µnrc u. EASTBOUND , i I ,..... [ Am LOOKING EASTBOUND ALONG EAST PALM CANYON DRIVE ADJACENT TO V.I.P. MOTORS, WEST OF CHEROKEE WAY 71 ECF-i"ED Tirmthy L Hohrrreier 'III'Y OF IDA r? Si)RINIGL -al VIM 0 AN ! E P11 6: 39 January 11, 2006 J .NES CITY CLCI iK% David J. Barakian, City Engineer Tom Wilson, Assistant City Manager City of Palm Springs Via Email Dear David and Tom: RE: Rule 20A Utility Undergrounding Districts Attached is a draft of our position paper for our meeting at 1 PM this Friday, January 13 in preparation for the City Council meeting January 18. Background: Item 3A of the January 4, 2006 City Council meeting included a resolution of intention for a Rule 20A utility undergrounding district along East Palm Canyon Drive with funds for the project being transferred from a similar project previously proposed on Sunrise. Discussion of Item 3A was postponed until the January 18 City Council meeting at the request of the Deepwell Estates Neighborhood Organization in order to give us time to discuss our position with the City. We understand that our position paper needs to be filed with the City Clerk by this Friday in order to be included in the package sent to council members for next week's meeting. Accordingly, we are submitting the same draft position paper to the City Clerk and others at this time with the caveat that it may be amended after our Friday meeting. Thank you for your assistance and attention to this matter. Best regards, Tim Hohmeier Chairman, Deepwell Estates Neighborhood Organization CC: Mayor Ron Oden Mayor Pro Tern Ginny Foat Councilmember Mike McCulloch Councilmember Chris Mills Councilmember Steve Pougnet David H. Ready, City Manager Lee Husfeldt, Director of Public Affairs James Thompson, City Clerk DENO Board and Powerline Committee Dial}1/10/0 G POSITION PAPER: RULE 20(A) UTILITY UNDERGROUNDING DISTRICTS I DEEPWELL ESTATES NEIGHBORHOOD ORGANIZATION iCOMMITTEE TO BURY THE POWERLINES BACKGROUND: Rule 20(A) funds are funds which are automatically collected through electric bills. The City currently has a limited amount of Rule 20(A) money to underground utility lines along arterial or major collector roads. City staff originally proposed to underground the lines along S. Sunrise from East Palm Canyon to Sunny Dunes and on N. Sunrise north of Vista Chino to San Rafael Drive. Twelve homeowners on N. Sunrise and one homeowner on S. Sunrise have covenants on their property requiring them to pay for the portion along their frontage. At a public hearing on the matter, several of the twelve homeowners on N. Sunrise protested against the project on N. Sunrise. There was no property owner opposition voiced to the project on S. Sunrise. In response to the homeowner's opposition on N. Sunrise and concern about waiving the covenants, City Council directed staff to investigate other locations to use the money. Staff is now recommending a project along East Palm Canyon from Gene Autry Trail to Palm Canyon Wash (east and west of the Mercedes dealer). An alternate project along Ramon Road from Cerritos to 500 feet west of El Cielo was also considered by staff. Vn an ideal world, all four projects should be done. However, given limited resources, the City must consider public policy to determine the most appropriate location(s) to be funded at this time. OUR POSITION: I. Public Policy favors burying the utility lines on S. Sunrise over E. Palm Canyon, 1. The City must find a solution to the problem on S. Sunrise now since the existing situation isn't going to change. Otherwise they are effectively abandoning S. Sunrise from ever having its lines buried. There are no remaining vacant properties along this section of S. Sunrise and if they can't find a solution now, they won't find one in the future, thereby dooming the lines from ever being buried on S. Sunrise. i. Potential solution. Since the one property owner on S. Sunrise with a covenant has lines on both the front and the back of his property (both west and east sides), the covenant could be altered to apply only to the lines on the back or west side of his property, thereby setting no precedent for waiving such covenants in the future unless a similar situation were to arise (which is somewhat unlikely). The property owner would in effect be allowed to benefit from the Rule 20(A) funding similar to all other property owners who have paid into these funds as part of their monthly electric bills Pagel of 4 Dmft 1/10/06 while still retaining a covenant on the property to be enforced if/when the remaining lines are undergrounded through a neighborhood undergrounding project. ii. If this option is not available and if there are no other options available, then the City must ultimately enforce its covenant on the property in order to bury the lines. Now is better than later as there j has already been a public hearing on the project and the public i records indicate that there was no opposition voiced to burying the lines on S. Sunrise. All of the opposition was for a separate project on N. Sunrise. So there is no impediment to going forward with the jproject on S. Sunrise as supported by the public records. I 2. Since there are no similar concerns on E. Palm Canyon, it could be done at any time. But as indicated in item 6 below, there will be more funds available later than now for E. Palm Canyon, so later is better than now. 3. It is to the City's benefit to bury as many lines in the City as possible. The Deepwell neighborhood is in the process of trying to underground all of the lines in the neighborhood. Burying the lines along S. Sunrise will further this project by making the overall project more feasible and more likely to go forward in the future. 4. Rule 20(A) funds should benefit those who have contributed to the fund over those who have not. There are 350 homeowners in Deepwell as well as additional homeowners north of Mesquite Avenue (Tahquitz River Estates neighborhood) who have contributed Rule 20(A) funds through their electric bills. Similar contributions have been made by homeowners in the residential developments along the east side of S. Sunrise Way who have mountain views that are negatively impacted by the existing utility lines. In contrast, there are numerous properties along the E. Palm Canyon project length which are still vacant commercial land which has never contributed to the fund and should be expected to accept covenants or actually complete the undergrounding of their utility lines as a condition of future development. 5. With limited funds, the city should spread the use of funds around the City. We understand that the last area to be undergrounded was on E. Palm Canyon west of Farrell. To be equitable, S. Sunrise should take precedent over another E. Palm Canyon project this time. 6. The City will lose a significant source of funds if it undergrounds the lines on East Palm Canyon now rather than later. i. The commercial vacant land along E. Palm Canyon currently does not have covenants to pay for undergrounding. Covenants will be Page 2 of 4 Draft 1/10/06 i placed on the property or the developers would be required to complete the undergrounding once commercial projects are japproved thereby giving the city more funds for undergrounding in the future. Several of these lots have real estate signs indicating i that they have been sold or are pending sale so development of these properties in the near future is a realistic possibility thereby offering additional funding sources for undergrounding utilities. I ii. Since portions of the E. Palm Canyon project are located in a redevelopment project area, the Redevelopment Agency is another source of potential funds for undergrounding the lines. These funds are not available to the S. Sunrise project since it is not located in a redevelopment project area. 7. Using Rule 20(A) funds on E. Palm Canyon now would be a windfall to its vacant commercial land owners. And the money will come right out of the pockets of the City's homeowners. Since there are currently no covenants on the E. Palm Canyon vacant land, the value of that property will go up by an amount equal to or greater than the cost of undergrounding the lines if they are done now. This will reduce by the same amount the Rule 20(A) funds available for other projects. Since homeowners contributed these funds through their electric bills, in effect, money is coming out of the pockets of the homeowners into the wallets of the vacant commercial landowners rather than being used to benefit the citizens of Palm Springs. 8. Using the funds on S. Sunrise rather than on E. Palm Canyon will have no adverse affect to its vacant landowners or any future proposed commercial protect on E. Palm Canyon. Since everyone already knows the City will require covenants from commercial projects approved on the land, the value of the land is already set. So doing nothing on E. Palm Canyon will have no adverse affect on the current property values nor will it enhance nor detract from the commercial projects. II. It would be better to find a solution now rather than spending additional time and energy at this time holding another public meeting regarding the transfer of the funds from S. Sunrise to East Palm Canyon. The appropriate time for another public hearing on an alternate project would be at the time additional funds become available from continued rate payer payments into the Rule 20(A) funds, commercial development along E. Palm Canyon and/or redevelopment project funding. In the event of a public hearing, we are confident that we will be successful in arguing our position and would be happy to discuss with you our reasons for believing this to be true. Page 3 of 4 i Draft 1/10/06 I III. We have no position on the N. Sunrise or Ramon projects. However, we understand that: 1 . N. Sunrise is not feasible without the contribution of significant additional funds from the twelve covenants which is strongly opposed by property owners along N. Sunrise. I 2. There are sufficient funds to do both S. Sunrise and Ramon at this time. Page 4 of 4 TimDthy L Hohmeier (SECiiI`JF:C� ifiN 13 Fii 3: 11 January 13, 2006 J ;ptE; 1 IIQI1PSOiJ CI i Y CLERK David J. Barakian, City Engineer Tom Wilson, Assistant City Manager City of Palm Springs Via Email I Dear David and Tom: I RE: Rule 20A Utility Undergrounding Districts Thank you for meeting with the Deepwell Neighborhood Organization this afternoon regarding the Utility Undergrounding on Sunrise. From the meeting we understand that: • The one covenant on S. Sunrise differs from the twelve on N. Sunrise in that, unlike the owners on N. Sunrise, the current owner of the property on A S. Sunrise signed the covenant and built his home. The ones on N. Sunrise inherited the covenants when they purchased their homes. • We discussed some proposed solutions to the covenant that would not set a precedent for waiving such covenants. • Even though there has already been a public meeting on S. Sunrise with no homeowner opposition, and the public records support there is no impediment to going forward on S. Sunrise, we understand that another public meeting would be necessary on S. Sunrise before that project could go further. Accordingly, we recommend that the proposal to set up a Utility Undergrounding District for E. Palm Canyon is premature. Instead, there should be another public hearing on S. Sunrise to determine whether that project is feasible and whether a solution can be found to the covenant that would not set a precedent of waiving such covenants. Thank you for your time and attention to this matter. Best regards, Tim Hohmeier Chairman, Deepwell Estates Neighborhood Organization CC: James Thompson, City Clerk