HomeMy WebLinkAboutA005 - Council Action Form for May 4, 1982 COUNCIL ACTION FORM Agenda No: 5-4-82
SUBJECT: Underground Utility System and Cable TV Service for CBD
BACKGROUND•
In 1961-62 the City Council approved a proposal to install an underground secondary
electric distribution network in the Central Business District area. The existing
overhead system was deteriorated, and the load growth which was predicted dictated
economics favoring the proposed system. Air-conditioning became common throughout
the area in the 1960's. Stores were modernized, new storefronts were added, and
new businesses opened in the CBD area.
During a period of four to five years, fourteen transformer vaults, 40 manholes,
and approximately 25 blocks of duct lines were installed underground and operation-
alized. Some customers were able to be connected easily and economically to this
new system and, therefore, they voluntarily modernized their systems and worked
cooperatively to connect underground. For those customers in the CBD area who
found it too expensive to justify a conversion to the underground system, no action
was taken at that time. Each building, however, was allotted in the design a conduit
or conduits in a suitable location for future completion of its permanent under-
ground connection.
Since this work began in the 1960's, many more buildings have been modernized and
services completed in a permanent manner. Underground extensions into the area west
of the telephone building have been progressing as new structures were erected. The
most recent examples are located behind the Payor and Midland Finance buildings, thus
completing the basic duct system to Pearl Street.
The overhead feeders on 6th Street, and the alley north of Main Street, and in the
alley south of Main Street, were removed. Telephone systems and gas systems also
were adjusted to allow completions. Railroad and telegraph signal lines were moved
out of the area. A new ornamental lighting system was installed using 1000 watt
mercury fixtures to provide for safety and beautification of the downtown area. The
railroad switching yard was moved to a point near Nevada, and a parking lot was estab-
lished for over 500 vehicles. Furthermore, since the time this was completed, Main
Street has been reworked with new sidewalks, curbs, plantings, and an additional
underground-wired lighting system to compliment the earlier system. It is important
to note that in excess of five hundred thousand dollars was spent for underground
electric facilities in this area in addition to the ornamental lighting, parking,
street, railroad, and sidewalk work already mentioned. This total equates to a
two million dollar project in terms of todays dollars. Furthermore, the business
community also has expended in excess of one hundred thousand dollars to modernize
their facilities.
In order to continue the improvements in this area, the City Council has supported a
policy which required that all utilities constructed in the Central Business District
should be placed underground. This district as delineated in Attachment I is bounded
by Duff to the east, Grand to the west, the railroad tracks to the south, and approx-
imately mid-block between 5th and 6th streets to the north. This policy requiring
underground utilities in this area is evidenced in the Electric Tariff established
by the City of Ames as well as the Cable TV franchise (Attachment's II and III) .
One question that has been asked is whether the Cable TV lines can be installed in
the duct systems of other utilities in the downtown area. It is important to note
that the basic underground electric utility system which has been installed over
a period of time in the CBD area has allowed for necessary secondary, primary and
street light cables in the main runs, and generally one conduit to each building
for service. In the few instances where more than one conduit was allowed, it
was based on anticipated load, not spare space. In fact, there is no space avail-
able in the City's underground ducts which connect to buildings in the area. Further-
more, the system was designed for an electrical system only operated with electrically
trained personnel. It would be very dangerous for cable personnel to work in these
ducts near the electric lines.
The telephone company also maintains a duct system in part of the Central Business
District area. Most of the system is west of Kellogg and very limited since it is
extremely old in those areas in excess of one block from the telephone building. The
South Main Street alley and along 6th Street is mostly direct burial. The City has
been advised by Mr. Boelman, telephone engineer, that while Northwestern Bell does
have a duct rental policy, there is no spare usable space in the district.
In terms of the water or sewer utilities it would be physically possible to run
Cable TV through City pipes. However, this technique would not be advisable. A
problem with the cable lines might require an interruption in our water or sewer
service when the TV lines are being repaired. In addition, the Cable TV lines
might serve to block flow through the sanitary or storm sewer lines and thereby
disrupt service or damage the cable lines.
ALTERNATIVES TO PROVIDING CABLE TV TO CBD AREA:
1. Maintain the current City policy and require all new cable construction to be
underground in the Central Business District area. The affirmation of this
policy will preserve the economic investment which has been made over the years
to improve the aesthetics of the CBD area. According to estimates supplied by
Terry Rich, Ames Cablevision, the cost to his company for installation of an
underground system in the CBD area would be approximately $139,498.
2. Reverse the existing City policy and allow the Ames Cablevision to install all
overhead lines in the downtown area to accomodate potential customers. Accord-
ing to estimates furnished by Terry Rich of Ames Cablevision the cost of provid-
ing aerial hookups throughout the CBD area will be approximately $15,649.
3. Reverse the City policy requiring underground utility lines in the CBD area
and allow for Cable Television lines to be attached to the buildings in the
downtown area rather than on poles (Attachment IV) . The only underground re-
quirement would be when the Cable TV lines cross City streets. Only in these
instances would lines be placed underground. According to preliminary estimates
the cost to Ames Cablevision for this alternative would be approximately $50,000.
It would be advisable in this alternative for there to be an understanding that
if and when any utility (telephone, electric, etc.) adds new underground facil-
ities in the downtown area, the Cable Television Company should be required to
make the underground conversion at the same time. In addition, strict installation
standards should be established by the City to insure that cables attached to
buildings will be accomplished in a safe and aesthetically pleasing manner. It
should be emphasized that in order for this to be a viable alternative, Ames
Cablevision must obtain the approval of all the building owners to allow the
attachment of cable lines.
4. Eliminate the obligation outlined in the current franchise agreement which re-
quires Ames Cablevision to extend its system and service to all areas of the
City within 18 months after receiving permission from the FCC to operate in the
City. The altering of this obligation will allow Cablevision to defer placing
its installation of service in areas such as the downtown which proved to be un-
profitable to provide underground installation. The City Attorney has drafted
language which will accomplish this alternative. This amendment to the Cable
oZ�D Ordinance would designate that the Cable Television Company must realize at
least a`15K rate of return from their efforts in expanding into certain areas of
town. This alternative, however, will still require that all new services in the
downtown area be installed underground when it becomes economically feasible for
Ames Cablevision to extend the system to this area.
MANAGER'S RECOMMENDATION:
Since 1962 hundreds of thousands of dollars have been spent by the City as well as
private commercial owners in the downtown area to improve the aesthetics in the Cen-
tral Business District by converting overhead electric lines to underground install-
ations. As evidenced by the slide presentation, which will be presented at the
Council Meeting, major improvements have been made in the downtown area. Therefore,
it is recommended that Alternative #1 be adopted, and the City Council reaffirm the
City policy that all utility lines constructed in the downtown area must be installed
underground. If the City Council wishes to protect Ames Cablevision from any economic
hardship involved in expanding to the downtown area, then it is recommended that the
Council approve a temporary increase in monthly rates to be spread among all users
of Cablevision to finance the construction in this area. In this way the underground
policy will be maintained, the company will be able to recoup the cost of this venture,
and potential customers in the downtown area will be served by cable television.
The Cable Television Commission approved Alternative 4 which would amend the existing
franchise agreement and no longer specify that Ames Cablevision shall extend service
to all areas of the City within eighteen months. The Cable Commission is recommend-
ing that a profitability formula be substituted.
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AMES MUNICIPAL ELECTRIC UTILITY ELECTRIC TARIFF NO. 3 Attachment ZI
EAST 5th & Carroll
AMES, IOWA 50010 ORIGINAL SHEET NO. 12
TARIFF
2 . 5(4.2 ) Central Business District Underground Network
Service
Service is provided at 120/208 volts, three phase,
four wire. All requests for service shall be re-
ferred to the Director of the Electric Utility to
allow electric utility staff to approve and locate
such service before achitects or engineer' s plans
are made final for such service.
The customer shall furnish any ditch required from
the property line to the building. The Utility shall
furnish and install all cable to the service entrance
switch lugs, pull box, or meter point as required.
The Utility will furnish and install five (5 ) feet
of conduit from the alley edge, or the amount required
to reach the building wall, whichever is least. The
customer shall furnish and install the remaining
conduit. All cable required in excess of 10 feet
from the alley edge will be billed to the customer.
Installation cost will be borne by the Utility.
Four inch transite in earth or concrete, or four
inch fiber duct enclosed in concrete shall be con-
sidered as standard size conduit. Rigid conduit
may be used in areas having no cinder fill.
Nominal size conductors stocked by the Utility are
#2, #1/0, #2/0, #4/0, 350 MCM and 500 MCM. Service
switch lugs shall be designed to accept these
conductors, or multiple thereof if required for
larger services. Service switches shall have
interrupting capacity suitable for network opera-
tion. Current limiting fuses may be used. All
equipment installed for operation on this system
shall be rated for operation at 120/208 volts with
ranges of operation in accordance with NEMA standards
for this voltage.
2 . 5(4 . 3 ) Residential Underground Areas
The developer or owners may be served with underground
primary and secondary cables in newly developed areas
by paying the extra cost for the underground facilities
compared to the current installation costs for an
overhead system. The Utility maintains the entire
system except the customer must provide a 36" deep
trench or conduit should the service drop fail and
need to be replaced. (This includes digging the
trench, backfilling without debris or rock that would
damage the wire, and restoring the yard. )
ISSUED December 2 , 1980 EFFECTIVE January 1, 1981
SUPP . 2 H-12 Jan. 1, 1981
CABLE TELEVISION ORDINANCE Attachment III
of a grantee's equipment and plant to provide room for city
attachments. Upon expiration, termination, or revocation of a
franchise, or should a grantee wish otherwise to dispose of
any of its poles being used by the city, the city shall have
the first right and option to purchase them in place for their
fair value based on reproduction cost less depreciation. Upon
expiration, termination or revocation of a franchise, title to
all of a grantee's underground conduits and manholes shall
pass to the city, unless otherwise agreed by the grantee and
the city in writing.
(4) In those areas and portions of the city where transmission or
distribution facilities of both the public utility providing tele-
phone service and the utility providing electric service are
underground or hereafter may be placed underground, then a
gr n ee shall ewise cons ruc ,-operate and maintain all of
its transmission and distribution of facilities underground to
the maximum extent that then existing technoloEry permits and
i i conformance with the National Electrical Safety Code, the
Bureau of Standards handbook number 130, and Telephone
Systems Practices governing joint attachments practices, as
well as in conformance with all applicable state and municipal
ordinances and codes. If and when necessary, amplifiers
and/or transformers in a grantee's transmission and distribu-
tion lines may be in appropriate housings upon the surface of
the ground. Said housings, and the location and construction
of all work required by or pursuant to this section shall be t
approved in advance by the bodies, persons and manner set
forth in section 25. 16(2) .
(5) The grantee may use without charge, any city owned pole
used for the sole purpose of providing cable television service
installation without charge.
(Ord. No. 2435, Sec. 1, 2-27-73; Ord. No. 2661, Sec. 1,
7-18-78)
Sec. 25. 17. RECEIVERSHIP, FORECLOSURE, ETC.
A franchise granted to a grantee shall at the option of the city
council cease and terminate one-hundred twenty (120) days after the
appointment of a receiver or receivers or trustee or trustees to take
over and conduct the business of the grantee, whether in a receiver-
ship, reorganization, bankruptcy or other action or proceedings unless
such receivership, or trusteeship, shall have been vacated prior to the
expiration of said one-hundred twenty (120) days, or unless:
(1) Such receivers or trustees shall have, within one hundred
twenty (120) days after their election or appointment, fully
complied with all the terms and provisions of the franchise
and the receivers or trustees within said one-hundred twenty
(120) days shall have remedied all defaults under said fran-
chise; and
25-14
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