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CONDUCT A PUBLIC HEARING AND ESTABLISH AN UNDERGROUND UTILITY DISTRICT ALONG LOWER SACRAMENTO ROAD
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RECOMMENDATION
It is recommended that the City Council:
1. Conduct a public hearing to determine whether public necessity, health, safety, or welfare requires the formation of an Underground Utility District along Lower Sacramento Road bound between Pixley Slough and Bear Creek.
2. Adopt a resolution authorizing the establishment of an Underground Utility District along Lower Sacramento Road bound between Pixley Slough and Bear Creek.
3. Authorize the City Manager to approve the filing of Notice of Exemption No. NOE65-23 under the California Environmental Quality Act for the Underground Utility District along Lower Sacramento Road.
4. Authorize the City Clerk to notify all affected utilities and real property owners within the Underground Utility District along Lower Sacramento Road by mail of the adoption of the resolution within 10 days of its adoption.
It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this resolution.
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Summary
Pacific Gas & Electric (PG&E) is mandated by the California Public Utilities Commission (CPUC), under Tariff Rule 20, to budget monies for communities to convert overhead facilities to underground. These undergrounding projects are commonly known as Rule 20A projects. As of March 2024, the City accumulated approximately $4.8 million in PG&E credits that can be used to relocate eligible overhead powerlines and communication utilities underground for eligible priority project(s) in the City of Stockton. PG&E typically takes the lead on Rule 20A projects and uses the credits to fund the design, construction, and administration costs.
The Lower Sacramento Road Widening and Bridge Replacements project is a priority project for Public Works that will require undergrounding of existing electrical and communication utilities. The limit of the project is between Royal Oaks Drive and Pixley Slough just north of Eight Mile Road. The project will generally widen the existing roadway from two to four/six lanes and was included in the 2019-24 Five-Year Capital Improvement Plan (CIP).
The CPUC Rule 20A guidelines require the City to establish an Underground Utility District and to determine the public interest the undergrounding would satisfy. Establishment of a District will enable staff, PG&E, and other utilities to start the process of relocating facilities underground in coordination with the construction of the Lower Sacramento Road Widening and Bridge Replacements project.
On July 9, 2024, by Resolution No. 2024-07-09-1215, Council authorized the City Clerk to notify all affected property owners and respective utilities of the time and place of the hearing. Owners within the proposed district were notified of the August 20, 2024, public hearing, and a notice was published in The Record on August 9, 2024.
After the public hearing, staff recommends Council adopt a resolution authorizing the establishment of an Underground Utility District along Lower Sacramento Road bound between Pixley Slough and Bear Creek as shown on Exhibit 1 to the Resolution.
DISCUSSION
Background
PG&E is mandated by the CPUC, under Tariff Rule 20A, to budget monies for communities to convert overhead facilities to underground. The CPUC Rule 20A program defines the policies and procedures for conversion for overhead power lines and other equipment to underground facilities where there is a public interest to do so. These undergrounding projects are commonly known as Rule 20A projects. As of March 2024, the City accumulated approximately $4.8 million in PG&E Rule 20A work credits that can be used to relocate eligible overhead powerlines and communication utilities underground within the City. PG&E typically takes the lead on Rule 20A projects and uses the credits to fund the design, construction, and administration costs. The City takes the lead in relocating any street lighting attached to PG&E utility poles that will be undergrounded. Existing funds of $154,314.32 are available in the Measure K and Gas Tax funded Rule 20A Street Lighting Capital Project, Project No. WT15021. Additional funding will be budgeted as part of the City’s Five-Year CIP.
In general, removing utility poles and relocating overhead facilities below ground improves safety and aesthetics of streets, sidewalks, neighborhoods, and civic areas. Potential hazards associated with downed lines or poles being situated close to vehicle travel areas are also eliminated. Rule 20A projects are typically identified by the City, in coordination with PG&E, and other utility providers. Following this coordination, PG&E will, using available credits, replace its existing overhead electric facilities with underground electric facilities along the public street provided that the governing body of city has:
A. Determined that undergrounding the utilities is in the general public interest for one or more of the following reasons:
1. Undergrounding will avoid or eliminate an unusually heavy concentration of overhead electric facilities.
2. The street is extensively used by the general public and carries a heavy volume of pedestrian or vehicular traffic.
3. The street adjoins or passes through a civic area, recreation area, or an area of unusual scenic interest to the general public.
4. The street is an arterial or major collector road defined in the City’s General Plan.
B. Adopt an ordinance which approves the formation of an underground district where existing utilities will be removed and relocated underground; specifies all property services will be ready to receive underground services; and PG&E can discontinue its overhead service.
On July 17, 1989, by Resolution No. 89-0469, Council adopted policies and procedures for a Master Plan of Underground Utility Districts with first priority given to major street widening and reconstruction projects by the City, and second priority given to areas of civic, scenic, or historic importance (Attachment A).
Staff has reviewed the 50-year Master Plan, together with current and future priority road projects and identified the Lower Sacramento Road Widening and Bridge Replacements project (generally between Royal Oaks Drive and Pixley Slough just north of Eight Mile Road) as a priority project. This project is a key north-south primary arterial that serves as a primary connector to Lodi. San Joaquin County recently completed the widening of the Lower Sacramento Road segment north of Eight Mile Road including the undergrounding of aerial facilities. In addition, the Lower Sacramento Road Corridor is a project listed on the San Joaquin Council of Governments Measure K Strategic Plan. As such, the Lower Sacramento Road Corridor is a high priority for the establishment of an Undergrounding Utility District
Public Works issued a Request for Proposals for professional engineering services to complete a Precise Roadway Plan and to design the Lower Sacramento Road Widening and Bridge Replacements project. The limit of the project is between Royal Oaks Drive and Pixley Slough just north of Eight Mile Road. Design work is expected to start by the end of 2024. The project will generally widen the existing roadway from two to four/six lanes and include the reconstruction of the bridges over Pixley Slough and Bear Creek. The project was included in the 2019-24 Five-Year CIP.
Stockton Municipal Code (SMC) Chapter 13.36 Regulations and Procedures for the Removal of Overhead Utility Facilities and the Installation of Underground Facilities in Underground Utility Districts, establish regulations and procedures for the formation of Underground Utility Districts (Attachment B). In accordance with SMC section 13.36.020, a public hearing is required to determine whether public necessity, health, safety, or welfare requires the undergrounding of overhead facilities. This also satisfies the CPUC Rule 20 requirement that the local government determines if a proposed Rule 20A project serves the public interest pursuant to a public hearing.
Present Situation
On July 9, 2024, by Resolution No. 2024-07-09-1215, Council authorized the City Clerk to notify all affected property owners and respective utilities of the time and place of the hearing. Owners within the proposed district were notified of tonight’s public hearing by mail based on the last equalized assessment roll.
After the public hearing, staff recommends Council adopt a resolution authorizing the establishment of an Underground Utility District along Lower Sacramento Road bound between Pixley Slough and Bear Creek as shown on Exhibit 1 to the Resolution. This will enable staff, PG&E, and other utilities to start the process of undergrounding facilities in coordination with the construction of the Lower Sacramento Road Widening and Bridge Replacements project. Conversion of the electrical services on private property will be included in the Rule 20A project and undertaken at no cost to the property owners. Subsequent agreements will be required to finalize the details from the coordination with PG&E. Staff anticipates the undergrounding of Lower Sacramento Road to be completed as early as 2027.
The conversion of overhead utility distribution system facilities to underground is in conformance with the City’s General Plan, pursuant to California Government Code, Section 65402, and is categorically exempt from the requirements of California Environmental Quality Act (CEQA) as specified under Section 15302(d) of the CEQA Guidelines. The activities constitute a discretionary project under the City’s jurisdiction and qualify as a project that does not have a significant effect on the environment. Staff recommends Council adopt a resolution authorizing the filing of Notice of Exemption No. NOE65-23 under CEQA.
Public Notification
Notice of the Public Hearing was published in The Record on August 9, 2024. The notice is required to be published a minimum of 10 days prior to the public hearing.
FINANCIAL SUMMARY
The recommended actions to establish the district will enable staff, PG&E, and other utilities to coordinate and plan phasing of the conversions. As of March 2024, the City accumulated approximately $4.8 million in the Rule 20A account with the utility companies. Some costs, such as right-of-way acquisition and street light relocation, are not funded by Rule 20A and must be funded by the City. Subsequent coordination with utility companies will provide information needed to assist with an estimate of the cost to the City. Additional funding will be budgeted as part of the City’s Five-Year CIP. Efforts to obtain additional funding through PG&E’s Work Credit Reallocation Plan and grants are ongoing.
There is no additional impact to the City’s General Fund or any other unrestricted fund as a result of taking the recommended actions.
Attachment A - Master Plan of Underground Utility District
Attachment B - SMC Chapter 13.36, sections 13.36.010 to 13.36.110