REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF BOARD GOVERNED COUNTY SERVICE AREAS
AND RECORD OF ACTION
January 9, 2024
FROM
TREVOR LEJA, Assistant Executive Officer, Department of Public Works - Special Districts
SUBJECT
Title
California Environmental Quality Act Finding and Agreement with Southern California Edison for Extension of Electric Distribution Line for the Lilac Avenue Streetlight Project in the Rialto Area
End
RECOMMENDATION(S)
Acting as the governing body of County Service Area 70 SL-1 Countywide:
Recommendation
1. Find that the Lilac Avenue Streetlight Project in the Rialto area is exempt under the California Environmental Quality Act, Title 14 of the California Code of Regulations Section 15301(b) Class 1 (alterations of existing facilities) and Section 15302(c) (replacement or reconstruction of existing structures or facilities).
2. Approve the Lilac Avenue Streetlight Project in the Rialto area as defined in the Notice of Exemption.
3. Approve Contract for Extension of Electric Distribution Line Rule 15 agreement with Southern California Edison, including non-standard terms, for extension of electric distribution line in an amount not to exceed $21,169 for the proposed streetlights on Lilac Avenue, from Walnut Avenue to Easton Street, in the Rialto area.
4. Direct the Department of Public Works - Special Districts to file the Notice of Exemption in accordance with the California Environmental Quality Act.
(Presenter: David Doublet, Assistant Director, 387-7906)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Ensure Development of a Well-Planned, Balanced, and Sustainable County.
Provide for the Safety, Health and Social Service Needs of County Residents.
Pursue County Goals and Objectives by Working with Other Agencies and Stakeholders.
FINANCIAL IMPACT
Approval of this item will not result in the use of additional Discretionary General Funding (Net County Cost). On April 25, 2023 (Item No. 70), the San Bernardino County Board of Supervisors (Board) approved the Lilac Avenue Streetlight Project (Project) in the amount of $367,000. Additionally, funding was also approved for the Project from the Fifth District’s Priorities Program (General Fund) in the amount of $167,000 and from County Service Area 70 SL-1 Countywide (District) in the amount of $200,000. A portion of this funding will be used to fund the $21,169 cost of the recommended agreement with Southern California Edison. The District included sufficient appropriation in its 2023-24 budget for the Project and will include necessary appropriation in future recommended budgets as needed.
The appendices to the Agreement provide the District with a refundable option of $23,400.94 or a discount option of $21,169.55 for construction of the line extension. The refundable option is selected when it is anticipated that other SCE customers will tie into the line extension, thereby generating a refund to the District. However, the District has selected the discount option at a cost of $21,169.55 since the area is developed and a connection to this line extension may be unlikely.
BACKGROUND INFORMATION
The District, which was established by the Board on December 27, 1965, is managed and administered by the Department of Public Works - Special Districts (Department) and annually receives property taxes to fund the operation of approximately 3,511 streetlights in various unincorporated communities throughout the County.
The Project consists of the replacement of six existing poles with pole mounted streetlights on new, taller wooden poles along the west side of Lilac Avenue, from Walnut Avenue to Easton Street, in the Rialto area. The Department reviewed the Project and determined that a categorical exemption exists in accordance with the California Environmental Quality Act (CEQA) Guidelines, Title 14 of the California Code of Regulations, Section 15301(b) Class 1 and Section 15302(c) Class 2. The Class 1 exemption allows for minor alteration of existing public or private structures or facilities. The Class 2 exemption allows for the replacement or reconstruction of existing structures or facilities where the new structure will be located on the same site as the structure replaced and will have substantially the same purpose and capacity as the structure replaced. When the Board considers the environmental finding, the filing and posting of a Notice of Exemption is recommended.
Approval of this item will also allow the District to enter into a Contract for Extension of Electric Distribution Line Rule 15 (Agreement) with Southern California Edison (SCE) for SCE’s extension of electric distribution lines for installation of the six new streetlights on Lilac Avenue.
The Department has requested SCE to install an electric distribution line extension to energize the streetlights. The Agreement is SCE’s standard contract for extensions of electric distribution lines, which is on file with the California Public Utilities Commission (CPUC). SCE requires the Agreement and its appendices to be executed by the District under SCE’s Rule 15. The Agreement delineates each party’s responsibilities in relation to the extension of electric distribution lines and is based on SCE’s contract for electric distribution line extensions and contains the following omitted or additional terms that differ from the County’s standard terms and conditions:
1. The District is required, at its own cost, to defend, indemnify, and hold harmless SCE, its officers, agents, employees, assigns and successors in interest from and against any and all liability, damages, losses, claims, demands, actions, causes of action, costs including attorney’s fees and expense, or any of them, resulting from the death or injury to any person or damages to any property caused by District or its contractor and employees, officers or agents of District or contractor, arising out of the performance or nonperformance of their obligations under the Agreement.
• The County standard contract does not include any indemnification or defense by District of a Contractor.
• Potential Impact: By agreeing to indemnify SCE, the District could be contractually waiving the protection of sovereign immunity. Claims that may otherwise be barred against the District, time limited, or expense limited could be brought against SCE without such limitations and the District would be responsible to defend and reimburse SCE for costs, expenses, and damages, which could exceed the total contract amount.
2. The Agreement does not require SCE to indemnify the District.
• The County standard contract indemnity provision requires contracting parties to indemnify, defend, and hold the District harmless from third party claims arising out of the acts, errors, or omissions of any person.
• Potential Impact: SCE is not required to defend, indemnify, or hold the District harmless from any claims, including indemnification for claims arising from their negligent or intentional acts and intellectual property infringement. If the District is sued for any claim, the District may be solely liable for the costs of defense and damages, which could exceed the total contract amount.
3. The Agreement does not require SCE to meet the County’s insurance standards as required pursuant to County Policy 11-07.
• The County Policy requires contracting parties to carry appropriate insurance at limits and under conditions determined by the County’s Risk Management Department and set forth in the County standard contract.
• Potential Impact: The Agreement does not include County standard insurance requirements. This means that the County has no assurance that SCE will be financially responsible for claims that may arise and result in expenses to the District that exceed the total contract amount.
4. There is no termination for convenience in the Agreement. If at any time during the term of the Agreement, SCE is not the sole deliverer of electrical requirements for the Project, the Agreement may be terminated. Upon termination of the Agreement, the District agrees to forfeit that portion of any advance paid to SCE for its expenses covering any engineering, surveying, right of way acquisition and other associated work incurred by SCE. If such expenses are greater or less than the refundable and/or nonrefundable advance, the District shall pay to SCE, or SCE shall refund the balance to the District, without interest, as the case may be.
• The County standard contract gives the District the right to terminate the contract, for any reason, with a 30-day written notice of termination without any obligation other than to pay amounts for services rendered and expenses reasonably incurred prior to the effective date of termination.
• Potential Impact: District can only terminate the Agreement if SCE is not the sole deliverer of electrical requirements for the Project or during the term of an uncured breach. Any attempted termination by District without cause would result in payment liability for the full contract amount, which could result in payment liability where no funds are available due to the lack of allocation or loss of funding.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Aaron Gest, Deputy County Counsel, 387-5455) on December 12, 2023; Risk Management (Greg Ustaszewski, Staff Analyst, 386-9008) on December 14, 2023; Finance (Tom Forster, Administrative Analyst, 387-4635) on December 13, 2023; and County Finance and Administration (Paloma Hernandez-Barker, Depuy Executive Officer, 387-5423) on December 18, 2023.