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done by PG & E, however, the individual service connections are typically the responsibility o£ <br />the individual property owners. Under the newly formed District, the City Council has opted to <br />provide for the design and construction cost for converting from overhead to underground <br />services for residential properties and has invoked Rule 20A provisions, which pays for the <br />construction of the underground conduit 100 feet into private property and the payment of up to <br />$1500 for each panel box conversion for both residential and commercial properties utilizing <br />available Rule 20A funds. Commercial properties may still incur costs for conversions not <br />covered by Rule 20A and not paid for by the City. The project documents include line item <br />costs for each property conversion and therefore cost can be easily separated out for <br />reimbursement to the City by the commercial property owners. <br /> <br />As stated above, in establishing the underground utility district, the City had agreed to pay all <br />residential property conversion costs not covered by Rule 20A funding. With the City taking on <br />this responsibility (private property conversions), the coordination efforts will be limited to the <br />City's contractor and PG&E, versus having PG&E coordinating the conversion efforts with 42 <br />individual property owners and potentially 42 separate contractors. Having all of the work done <br />by one contractor will improve efficiency and reduce overall project costs. The successful <br />future City contractor will perform all work for private property conversions, and in turn, the <br />City will pay the contractor as work progresses. Once completed, the City will invoice PG&E <br />for all reimbursable costs covered under the Rule 20A provisions, and will invoice commercial <br />property owners for that conversion work not covered by the provisions of Rule 20A. <br /> <br />BIDDING PROCESS <br /> <br />The project was advertised on October 31, November 7 and November 21, 2004. Bids were <br />opened on December 2, and only one bid was received. In talking to other plan holders, several <br />reasons were cited for not bidding the project that included: nature of work and difficulty <br />dealing with (42) separate property owners; dealing with the uncertainty and unpredictability of <br />PG&E's schedule; the duration of the project (1-1/2 to 2 years); and the number of potential <br />move-ins on the project. In addition, it appears the project was competing with several other <br />large utility projects in the area that were out to bid at the same time. Because of the reasons <br />cited above, it has been difficult to accurately assess the cost of doing this work. However, by <br />readvertising the work, it is expected that more bids will be received and a more competitive and <br />accurate assessment of actual project costs will be obtained. In addition, the plans and <br />specifications will be available at no cost to potential bidders and mailed to construction firms to <br />actively solicit their bid. <br /> <br />PROJECT BUDGET <br /> <br />The cost for this work will be drawn from the funds allocated for this project and appropriated <br />from the City's Street CIP Fund under "First and Kottinger Undergrounding Phase I & II Street <br />Lights and Electrical Service Laterals" (CIP Project No. 025071). The project involves two <br />separate and distinct types of work that include the installation of street lighting and the electrical <br />panel conversions on private property. For tracking purposes the street lighting portion is <br />SR:05:003 <br />Page 2 of 4 <br /> <br /> <br />