APPENDIX 1: UNDERGROUND WIRING
DATE:
April 11, 2017
T O:
Budget & Infrastructure Committee
FROM:
Siu Tse, PEng, Manager of Development Services
SUBJECT:
UNDERGROUND WIRING IN AREAS WITH OVERHEAD SERVICES
1.0 BACKGROUND 1.1
Context: In March, the Smart Growth Committee (SGC) determined it wished to consider changing the City’s underground wiring requirements as part of its 2017 work program, as outlined in the Director’s covering report. This appendix provides technical information on the issue and identifies options to address SGC’s concerns including a discussion of options. With the exception of sites in the downtown and new subdivisions of more than 3 lots, the City’s policies and regulations do not require new development to provide for removal of an existing overhead service along roadways. However, we do require new buildings to be serviced underground between the building and the nearest power poles except for single family residential construction. For clarification, “underground service” means the hydro and telecommunications service line leading from the street to the house or building is located within the ground (the pole and overhead primary power lines that run along the street remain). “Underground wiring” means the service lines are underground (the overhead primary power lines along the street and the power poles are removed).
1.2
Policy and Regulations: The Official Community Plan (OCP) contains policies which support cooperating with other utility providers to ensure that their services are provided where needed and minimize neighbourhood impacts. Under the Local Government Act, there are three “triggers” for local governments to be able to require offsite works associated with developments: subdivision (generally frontage only), rezoning, if offsite works are required as a condition of approval; and, building permit (also generally frontage works only). The Parking and Management of Development Bylaw requires provision of works and services on the lands being developed and roads adjacent to the lands prior to issuance of a building permit. The requirements are set out in the Subdivision Servicing Bylaw and include highway, water, sewage disposal, storm drainage, street lighting, sidewalk, and underground utility services.
Underground Wiring April 11, 2017 Page 2 Underground electrical and telephone wiring is a requirement for all subdivisions throughout the City, involving more than 3 lots. The Bylaw further provides that underground wiring is not required for a development unless it is in the Downtown and that undergrounding of highvoltage and transmission line is not required anywhere in the City. Since 2008, the City has required underground wiring for any new buildings in the Downtown (not including single houses). It should be noted that the City could impose any conditions at the time of rezoning relating to underground wiring (in excess of the bylaw), however, our practice has been to apply the Parking and Management of Development Bylaw at the time of rezoning (or alternatively at Building Permit if rezoning is not required). 1.3
Current Practice: The Transportation Solutions and Operations (TSOC)/Public Works Committee discussed underground wiring requirements in the past. In 2008, staff were directed to continue current practices of underground wiring in the downtown only. In 2012, Council confirmed a longstanding practice that the City does not require undergrounding of high voltage lines due to the high cost (estimated at that time to exceed $10,000 per metre) and technical concerns. The City’s requirements for underground wiring were reviewed in 2015 by the Smart Growth Committee as a result of its consideration of development applications in the Prairie/Salisbury area. The City’s practice in implementing underground wiring in areas with established overhead services is as follows: (1) Provision for installation of underground wiring is required in the Downtown. If it is not feasible to place the wiring underground at the time of development due to the location of the property, developers normally wish to make a cash contribution for this purpose and the wires are then placed underground when sufficient development occurs and funding accrued to provide for undergrounding of a block. The amount required is as determined by BC Hydro provided that it has designed that section. There are a number of issues associated with this practice, as it is a piecemeal approach and it is not based on a detailed, site-specific design, which means the actual costs are unknown. Furthermore, the works cannot be implemented until a later date when sufficient properties have paid within a large enough block or area to meets BC Hydro’s requirements. Staff have long been aware of this issue and, as a future work program item, intend to submit a request for funding approval to develop an overall implementation plan. (2) Installation of underground wiring in all new subdivisions of more than 3 lots is required. As with sites in the Downtown, if the installation is not feasible at the time of development (due to a mid-block location or other circumstances), funding is obtained for future works. (3) Underground wiring is not required subdivisions of less than 3 lots in locations other than in the Downtown.
Underground Wiring April 11, 2017 Page 3 2.0
TECHNICAL INFORMATION
2.1
Feasibility Assessment: Utility companies will only assess the feasibility of undergrounding their overhead utilities upon receipt of an application and security for the design work. A cost estimate will be prepared as part of this assessment but, in some cases, the utility companies are reluctant to undertake the work given the size and scope of a proposed project. If accepted for review, the estimated cost provided by BC Hydro for the works will vary substantially depending on factors such as the number and age of the poles, voltage of the wires, need for transformers or underground vaults, restoration of the infrastructure and services, and re-establishing existing service connections. Costs and design parameters for undergrounding cable and telephone services also vary significantly and may result in their technical requirements for undergrounding being different from those designed for undergrounding the hydro service.
2.2
Scope: The scope of each project is unique and must consider the following issues: Design Considerations Capacity of the overhead lines Type of materials Number of pairs or phases Location of dips and existing service connections Other service providers Construction Considerations Transmission lines can be difficult to underground due to size of vaults and concreteencased conduits Three-phase wiring requires longer spans (approximately 250m) Availability of underground corridors Impacts to land not included in the project Cost Considerations The price per metre to u/g wiring is an unknown: there is no amount per metre that can be applied due to highly variable circumstances, and for a City to include a set funding amount in its bylaws it would need to have confidence that it is setting the right amount. In 2014, Maple Ridge estimated the cost to be between $2500 to $4000/metre. Staff have seen costs for pole relocation range from as little as $5000 to as much as $80,000. Fiber optics is making Telus infrastructure more expense to underground as it requires more vaults and switches, etc. Telus designers are now saying that some of their infrastructure may be as expensive as Hydro’s to underground. Uncertain redevelopment time frames related to individual ownership of properties. Redevelopment to higher density development may never proceed if a property owner does not wish to redevelop, and the smaller the lot size the more unlikely it is that lot consolidation will occur. Staff reviewed a proposed capital project as a means of obtaining a comparable estimate. This project provided an estimated cost for hydro work of $4000- $5000/metre but did not include estimated costs for telephone and cable utilities, which can range from a charge of an additional 10% to double that of the hydro costs. For example, removing connector poles and lines to the homes on the south side of the street would require
Underground Wiring April 11, 2017 Page 4
costly trenching to bury the ducts across Prairie Street and through the private properties. BC Hydro provides a small amount of funding for beautification projects on an annual basis. If a project is approved, it pays up to 1/3 of the total project costs, limited to those directly attributed to the hydro services. Staff are not aware of external funding sources for undergrounding of telephone and cable services.
Other Aspects Utility companies will generally only provide a construction cost estimate based on a design for specific circumstances It is difficult to determine an accurate cost estimate New technology is changing previously held assumptions (e.g., fiber optics) Applicant may have completed some of the works, which can impact the amount of funds to be collected and the works may not be acceptable to BC Hydro when looking to use the works Currently, monies received for the provision of a specific service must be used for the intended purpose and cannot be transferred to an alternative location or other project. The cost to underground utilities is normally be funded by new development where feasible or through a capital program initiated by the municipality. If funded through a local improvement process, the total cost would be shared among the property owners on both sides of a street 3.0 REQUIREMENTS OF OTHER COMMUNITIES Staff have not had sufficient time to complete a comprehensive review of requirements in other communities but would obtain this information as part of a further review process. Examples of some reviews are:
Abbotsford recently reviewed its underground policies as part of its view of its OCP and determined it would update its underground wiring policy to prioritize mixed use centers. Maple Ridge recently undertook a comprehensive review and and provided on-line information related to the challenges and costs of undergrounding. Staff are contacting Maple Ridge to determine the status of this work. The City of Ottawa completed a major study of how it might achieve underground wiring and at what cost. It determined that, due to cost, the only underground wiring projects in the City would be developer-initiated (i.e., no public funding). The community continues to seek a review of this policy as there is a strong desire to enhance a number of Ottawa’s major streets.
4.0 POTENTIAL DIRECTIONS IF UNDERGROUND WIRING REQUIREMENTS ARE TO BE REVIEWED 4.1
Amend the Development Engineering Division’s work program to undertake a specific review of underground wiring, including community consultation. This would provide for focused consideration of the issue and would be expected to result in Council setting clear expectations and providing certainty to developers. . Some funding for the consultation process and obtaining additional information to address questions such as potential costs would be anticipated.
4.2
Proceed directly to require developer contributions for underground wiring by requesting staff bring forward a proposed amendment to require funding at the time of any development.
Underground Wiring April 11, 2017 Page 5 Depending on how such a bylaw amendment was drafted, and where Council wishes to apply the requirement, this option could have a significant impact on the feasibility of new development in Port Coquitlam. Staff would require funds to prepare the design and estimate the cost of works for the selected streets or areas where underground wiring is to be required. A levy of this nature must be based on the specific works provided and the defined benefitting area. 4.3
Not change the work program and review of underground wiring as part of the Subdivision Servicing Bylaw review. The scope of work for the subdivision servicing bylaw review is intended to provide for consideration of the community’s expectations with respect to underground wiring requirements.
Prepared by Siu Tse, Manager of Development Engineering