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RESOLUTION SETTING A PUBLIC HEARING TO ESTABLISH AN UNDERGROUND UTILITY DISTRICT IN THE STOCKTON DOWNTOWN AREA
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution authorizing the City Manager to:
1. Set a public hearing by the City Council for November 7, 2017, to determine whether public necessity, health, safety, or welfare requires the formation of an underground utility district in the Stockton downtown area bound by Miner Avenue, Aurora Street, Weber Avenue, and Sutter Street 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 Downtown 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 to convert overhead facilities to underground. These undergrounding projects are commonly known as Rule 20A projects. As of October 2016, the City accumulated approximately $11.2 million in PG&E credits that can be used to relocate eligible overhead powerlines and communication utilities underground. PG&E typically takes the lead on Rule 20A projects and uses the credits to fund the design, construction, and administration costs. The cost to adapt electric panels to receive underground service will also be covered by the Rule 20A project at no cost to the property owners. Relocation of City street lighting that is attached to utility poles is not eligible for Rule 20A funds. The City normally takes the lead in relocating the street lighting as a separate project.
On July 17, 1989, 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. Based on a review of the 50-year Master Plan, together with current and future funded projects, staff identified the Miner Avenue corridor as a high priority for establishing an undergrounding district.
Staff recommends formation of an Underground Utility District for the area as it meets the Public Interest Criteria required under the CPUC guidelines. This will enable staff, PG&E, and other utilities to start the process of relocating facilities underground in coordination with the construction of the Miner Avenue project. Other areas of the proposed district will be undergrounded as separate phases based on priorities and funding. Staff recommends Council adopt a resolution authorizing the City Manager to set a public hearing for November 7, 2017, and authorize the City Clerk to publish notice of the public hearing.
DISCUSSION
Background
PG&E is mandated by the CPUC, under Tariff Rule 20, to budget monies to convert overhead facilities to underground. These undergrounding projects are commonly known as Rule 20A projects. As of October 2016, the City accumulated approximately $11.2 million in PG&E credits that can be used to relocate eligible powerlines and communication utilities underground within the City. PG&E typically takes the lead on the project and uses the credits to fund their design, construction, and administration costs. City street lighting is often attached to utility poles, and relocation of this lighting is not eligible for Rule 20A funds. The City normally takes the lead in relocating the street lighting as a separate project.
Rule 20A projects are typically identified by the City, PG&E, and other affected utilities. Following this consultation with the utility providers, Rule 20 requires the local government agency to hold a public hearing to determine if the proposed Rule 20A project serves the interest of the public based on one or more of the following criteria:
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.
Removing utility poles and relocating overhead facilities below ground improves safety and aesthetics of roads, sidewalks, neighborhoods, and civic areas. Potential hazards associated with downed lines or poles being situated close to vehicle travel areas are also eliminated. 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 50-year 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 funded road projects, and identified the Miner Avenue corridor as a high priority for the establishment of an Undergrounding Utility District. This corridor has also been included in the Rule 20A Streetlighting Program as part of the FY 2017-22 Capital Improvement Plan.
Present Situation
On February 21, 2017, by Resolution No. 2017-02-21-1601, Council adopted the environmental document and Precise Road Plan for the Miner Avenue Complete Streets project between Center Street and the Union Pacific Railroad tracks. This effort was funded by federal Active Transportation Program (ATP) funds. Per the Precise Road Plan, the footprint of Miner Avenue will include two travel lanes, Class II bicycle lanes, median islands with landscaping, a roundabout at San Joaquin Street, intersection bulb-outs, and traffic signal modifications and street lighting. Staff obtained additional federal ATP funding for design of the entire Miner Avenue corridor and construction of improvements between Center Street and Sutter Street. Efforts to obtain grants to fund construction of the remainder of the Miner Avenue improvements are ongoing.
A portion of the downtown area surrounding the Miner Avenue corridor has above ground electrical and communication facilities that could be relocated below ground prior to the construction of the Miner Avenue project more cost effectively. The area is generally bounded by Miner Avenue, Aurora Street, Weber Avenue, and Sutter Street (Exhibit 1 to the Resolution). Staff recommends formation of an Underground Utility District for this area as it 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 in coordination with the construction of the Miner Avenue project. Other areas of the proposed Underground Utility District will be undergrounded utilizing Rule 20A funds as separate phases based on priorities and funding. Staff anticipates the undergrounding of Miner Avenue to be completed as early as December 2018.
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 November 7, 2017;
2. Authorize the City Clerk to publish notice of the public hearing;
3. Authorize the City Clerk to notify all affected property owners by mail of the public hearing pursuant to SMC section 13.36.020.
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 October 27, 2017.
PG&E takes the lead in the design and construction of Rule 20 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 20 project at no cost to the property owners. Upon formation of the Rule 20 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 December 2019.
FINANCIAL SUMMARY
As of October 2016, the City has accumulated approximately $11.2 million in the Rule 20A account with the utility companies. Some costs, such as base mapping, right-of-way acquisition, and street light relocation are not funded by Rule 20A and must be funded by the City. Sufficient funds exist in the Rule 20A Streetlighting program (PW1521) to fund the necessary activities and staff time associated with the Miner Avenue project. The program currently has an unencumbered balance of $87,000.
There is no additional impact to the City’s General Fund or any other unrestricted fund as a result of taking the recommended action.
Attachment A - SMC Chapter 13.36, sections 13.36.010 to 13.36.110