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RESOLUTION SETTING A PUBLIC HEARING TO ESTABLISH AN UNDERGROUND UTILITY DISTRICT ALONG LOWER SACRAMENTO ROAD
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Set a public hearing for August 20, 2024, to determine whether public necessity, health, safety, or welfare requires the formation of an underground utility district along Lower Sacramento Road pursuant to Stockton Municipal Code section 13.36.020.
2. Authorize the City Clerk to notify all affected property owners by mail of the public hearing pursuant to Stockton Municipal Code section 13.36.020.
3. Authorize the City Clerk to publish notice of this public hearing in a newspaper of local circulation, at least ten (10) days prior to said hearing.
4. Approve the proposed area to be included in the Lower Sacramento Road Underground Utility District.
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. It is recommended that Council approve the formation of an Underground Utility District between Pixley Slough and Bear Creek, as shown on Exhibit 1 to the Resolution, as it meets the Public Interest Criteria required under the CUPC guidelines.
It is also recommended that Council adopt a resolution authorizing the City Manager to set a public hearing for August 20, 2024, and authorize the City Clerk to publish notice of the public hearing.
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.
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, Council adopted policies and procedures for a Master Plan of Underground Utility Districts. This outlined the development of a long-range (30 to 50 years) Plan. First priority was given to major street widening and reconstruction projects by the City, and second priority was given to areas of civic, scenic, or historic importance.
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.
Present Situation
The Lower Sacramento Road Widening and Bridge Replacements project will require the undergrounding of existing electrical and communication utilities before the widening project starts. As noted above, the City must create an Underground Utility District and determine the public interest the undergrounding would satisfy. It is recommended that Council approve the formation of an Underground Utility District between Pixley Slough and Bear Creek as shown on Exhibit 1 to the Resolution.
The Underground Utility District meets the Public Interest Criteria required under the CPUC guidelines. Formation of the proposed District will enable staff, PG&E, and other utilities to utilize Rule 20A funds to underground eligible facilities before the Lower Sacramento Road Widening and Bridge Replacements project starts. The full scope of undergrounding will be coordinated with the City’s design of the Lower Sacramento Road Widening and Bridge Replacements project in the next two or three years. After which, it is estimated PG&E can begin coordinating utility relocation and underground work no sooner than 2030. The construction of the City’s Lower Sacramento Road Widening and Bridge Replacements project is dependent on funding availability.
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, establishes regulations and procedures for the formation of Underground Utility Districts (Attachment A). In accordance with SMC section 13.36.020, a public hearing is required to determine whether the 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.
Pursuant to SMC section 13.36.020, at least ten (10) days prior to the public hearing, the City Clerk will notify all affected property owners and respective utilities of the time and place of the hearing. Owners within the proposed district will be notified of the public hearing by mail based on the last equalized assessment roll. A copy of the resolution with a map of this district will be included as well.
The recommended resolution will:
1. Set a public hearing for August 20, 2024.
2. Authorize the City Clerk to notify all affected property owners by mail of the public hearing pursuant to SMC section 13.36.020.
3. Authorize the City Clerk to publish notice of the public hearing.
Notice of the public hearing is required to be published a minimum of ten (10) days prior to the public hearing pursuant to SMC section 13.36.020. The required notice will be published in The Record on August 6, 2024.
PG&E takes the lead in the design and construction of Rule 20A projects. Rights of entry from adjacent property owners will be needed to allow PG&E contractors to make modifications to electrical panels to receive underground service. The cost to adapt electric panels to receive underground service will be covered by the Rule 20A project at no cost to the property owners. Upon formation of the Rule 20A underground district, PG&E will start coordination activities and design of the underground project. Design is anticipated to take approximately 12 months with underground construction activities starting as early as 2025.
FINANCIAL SUMMARY
As of March 2024, the City has 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. Partial funding exists in the Rule 20A Streetlighting program (PW1521) to fund the necessary activities and staff time associated with the Lower Sacramento Road Widening and Bridge Replacements project. The program currently has an unencumbered balance of $24,320.
Per SMC section 16.72.230, Developers remain to be responsible for the cost of utility undergrounding for their new development adjacent to the project.
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 - SMC Chapter 13.36