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RESOLUTION SETTING A PUBLIC HEARING TO AMEND THE EXISTING UNDERGROUND UTILITY DISTRICT IN THE STOCKTON DOWNTOWN AREA TO ADD ADDITIONAL AREAS
...recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Set a public hearing for March 5, 2019, to determine whether public necessity, health, safety, or welfare requires an amendment of the existing underground utility district in the Stockton downtown area pursuant to Stockton Municipal Code section 13.36.020. The amended district will be bound by Miner Avenue, Sutter Street, Weber Avenue, and the western boundary of the Union Pacific Railroad Corridor.
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 amended area as 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. 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 is also 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.
On November 7, 2017, Council approved Resolution No. 2017-11-07-1503 which established an underground district for the area generally bounded by Miner Avenue, Sutter Street, Weber Avenue, and Aurora Street. PG&E is currently designing the undergrounding of utilities within this newly formed district. While coordinating the design with PG&E, a few existing poles were found to be just outside the established underground boundary. These poles are located near the Union Pacific Railroad (UPRR) corridor on the east side of the approved underground district boundary. Therefore, amending the boundary previously approved by Resolution No. 2017-11-07-1503 is required so that PG&E can utilize Rule 20A funds to underground these additional poles that were not included in the previous boundary.
Staff recommends amending the Underground Utility District approved by Resolution No. 2017-11-07-1503. The amended boundary is as shown on Exhibit 1 to the Resolution. The new boundary limits are Miner Avenue, Sutter Street, Weber Avenue, and the west boundary of the Union Pacific Railroad Corridor. Amending the boundary will require a public hearing. Staff recommends Council adopt a resolution authorizing the City Manager to set a public hearing for March 5, 2019 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. 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. The cost to adapt electric panels to receive underground service is also covered by the Rule 20A project at no cost to the property owners. 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.
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. Removing utility poles and relocating overhead facilities below ground improves safety and aesthetics of roads, sidewalks, neighborhoods, and civic areas.
Staff 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.
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 and local Measure K funding for design and construction of the entire Miner Avenue corridor between Center Street and Aurora Street.
A portion of the downtown area surrounding the Miner Avenue corridor has above ground electrical and communication facilities that will need to be relocated below ground prior to the construction of the Miner Avenue project. The area is generally bounded by Miner Avenue, Aurora Street, Weber Avenue, and Sutter Street.
On November 7, 2017, Council approved Resolution No. 2017-11-07-1503 which established an underground district for the area generally bounded by Miner Avenue, Sutter Street, Weber Avenue, and Aurora Street. PG&E is currently designing the undergrounding of utilities within this newly formed district. While coordinating the design with PG&E, a few existing poles were found to be just outside the established underground boundary. These poles are located near the UPRR railroad corridor on the east side of the approved underground district boundary. Therefore, amending the boundary previously approved by Resolution No. 2017-11-07-1503 is required so that PG&E can utilize Rule 20A funds to underground these additional poles that were not included in the previous boundary. The amended boundary is as shown on Exhibit 1 to the Resolution. The new boundary limits are Miner Avenue, Sutter Street, Weber Avenue, and the west boundary of the Union Pacific Railroad Corridor.
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 amended boundary 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 March 5, 2019;
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; and
4. Approve the amended area as the Downtown Underground Utility District.
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 a newspaper of local circulation, at least (10) days prior to said hearing.
As mentioned above, staff is currently coordinating the Rule 20 project with PG&E. PG&E has started the design phase of undergrounding poles within the district boundary. 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 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 $174,700.
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