TITLE
Recommendation to authorize City Manager to execute all documents, and any necessary amendments, with Verizon California, Inc. (Verizon), to enter into a reimbursement Memorandum of Understanding (MOU) for completion of Underground Utility District No. 41 (UUD 41) on portions of Alamitos Avenue. (Districts 1,6)
DISCUSSION
On October 17, 2006, the City Council established UUD 41 to underground utilities along Alamitos Avenue, between 7th Street and Pacific Coast Highway. On January 22, 2013, the City Council adopted a resolution extending the time of completion for UUD 41 to December 30, 2014. The project is paid for by funds collected from Southern California Edison’s (SCE) electric ratepayers, pursuant to California Public Utilities Commission (CPUC) Rule 20A.
Verizon is currently working with SCE to complete the undergrounding project. Verizon has agreed that, pursuant to its Tariff Rule 40A.1, it will pay the pro-rata share of the conversion costs attributable to its facilities located in the public right-of-way. However, they also have informed the City of Long Beach (City) that they will not assume the costs for converting services on any individual property owner’s private property, except for the wiring and/or cables that transverse the conduit. This is consistent with a position that Verizon has held for several years now.
On January 11, 2010, the City of Santa Barbara (Santa Barbara) filed a complaint against Verizon with the CPUC (Proceeding No. C.10-01-005) on the issue of whether Verizon is required to pay for the pro-rata share of costs of the installation of each customer’s underground service connection facility for one of Santa Barbara’s underground utility districts. The status of the complaint has yet to be finally decided by the CPUC.
The City has determined that it is in the public interest not to wait for the CPUC case against Verizon to be resolved and instead to pay for Verizon’s disputed charges in order to expedite the lar...
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