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October 16"', 2018 UUD No. 37
<br />work will consist of construction of underground utility facilities and removal of all overhead utility wires and
<br />utility poles within the district boundaries.
<br />The California Public Utilities Commission (CPUC) instituted a Utility Undergrounding Program in 1967 aimed at
<br />replacing overhead with underground facilities. The CPUC provides three rules relative to utility undergrounding
<br />projects with the State, Rule 20A, Rule 2013, and Rule 20C. The difference among these three rules involves the
<br />funding source to pay for underground project costs. Under Rule 20A, private electric and telecommunication
<br />companies are required to set aside a certain percentage of their income to achieve the conversion. In the case of
<br />Southern California Edison Company (SCE), this conversion outlay is to be expended in cities in the same ratio that
<br />the number of customers in each city bears to the total number of customers in the system. For a project to qualify
<br />as a 20A project, it must be determined, after consultation with the electric utility, that such undergrounding is in
<br />the general public interest for one or more of the following reasons, all of which have been determined to apply to
<br />the subject project:
<br />(a) Such undergrounding will avoid or eliminate an unusually heavy concentration of overhead electric,
<br />facilities;
<br />(b) The street or right-of-way is extensively used by the general public and carries a heavy volume of
<br />pedestrian or vehicular traffic; or
<br />(c) The street, road, or right-of-way adjoins or passes through a civic area, public recreation area, or an
<br />area of unusual scenic interest to the general public.
<br />At this time, the City of Santa Ana has a reserve allocation balance of $2,099,820 in Rule 20A funds. The City
<br />receives an annual allocation of approximately $539,601 in Rule 20A funds from SCE. Currently, the CPUC allows
<br />up to five years of mortgaging, or "saving up," allocations levels by local governments, provided adequate utility
<br />capital and personnel are available. The project will have an estimated amount of $6,416,626 in Rule 20A funds by
<br />2021.
<br />Notes: ' CPUC Decision 01-12-009 allows local agencies to spend ahead up to five years' worth of annual allocations.
<br />Under Rule 2013, the City would fund for most of the cost, excluding the cost of removing overhead poles, lines and
<br />facilities. Under Rule 20C, the City would pay for most of the cost, less a credit for the salvage value of the
<br />removed facilities.
<br />Prepared under t supervision of
<br />win "William" G ve
<br />City Engineer
<br />Public Works Agency
<br />City of Santa Ana
<br />75C-4
<br />Page 2 of 3
<br />YEAR 2018
<br />2019
<br />2020
<br />2021
<br />Available Funds
<br />Rule 20A Beginning Balance
<br />$2,099,820
<br />$2,639,421
<br />$3,179,022
<br />$3,718,623
<br />Rule 20A Estimated Annual Allocation
<br />$539,601
<br />$539,601
<br />$539,601
<br />$539,601
<br />Rule 20A Mortgage (up to 5 ears)
<br />Not Used
<br />Not Used
<br />Not Used
<br />'$2,698,005
<br />RULE 20A YEAR END BALANCE
<br />$2,639,421
<br />$3,179,022
<br />$3,718,623
<br />$6,416,628
<br />Notes: ' CPUC Decision 01-12-009 allows local agencies to spend ahead up to five years' worth of annual allocations.
<br />Under Rule 2013, the City would fund for most of the cost, excluding the cost of removing overhead poles, lines and
<br />facilities. Under Rule 20C, the City would pay for most of the cost, less a credit for the salvage value of the
<br />removed facilities.
<br />Prepared under t supervision of
<br />win "William" G ve
<br />City Engineer
<br />Public Works Agency
<br />City of Santa Ana
<br />75C-4
<br />Page 2 of 3
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