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CONDUCT A PUBLIC HEARING AND AMEND THE ESTABLISHED UNDERGROUND UTILITY DISTRICT IN THE STOCKTON DOWNTOWN AREA
recommended action
RECOMMENDATION
It is recommended that the City Council:
1. Conduct a public hearing to determine whether public necessity, health, safety, or welfare requires an amendment of the established underground utility district in the Stockton downtown area bound by Miner Avenue, Sutter Street, Weber Avenue, and Aurora Street.
2. Adopt a resolution authorizing the amended boundary to be added to the established underground utility district in the Stockton downtown area. The amended district will be bound by Miner Avenue, Sutter Street, Weber Avenue, and the western boundary of the Union Pacific Railroad Corridor.
3. Authorize the City Manager to approve the filing of Notice of Exemption No. CE01-19 under the California Environmental Quality Act for the amended Underground Utility District in the Stockton downtown area.
4. Authorize the City Clerk to notify all affected utilities and real property owners within the amended area by mail of the adoption of the resolution within ten (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 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 programmed in the City’s Capital Improvement Program (CIP).
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.
On November 7, 2017, Council approved Resolution No. 2017-11-07-1503 which established an underground district generally bound by Miner Avenue, Sutter Street, Weber Avenue, and Aurora Street. PG&E is currently designing underground utilities to replace utility poles within this newly formed district. PG&E identified six poles located just outside the established underground boundary that are recommended for inclusion in the project. 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 poles.
Staff recommends the formation of an Underground Utility District for the amended area as it meets the Public Interest Criteria required under the CPUC guidelines. The new district boundary limits are Miner Avenue, Sutter Street, Weber Avenue, and the western boundary of the Union Pacific Railroad Corridor. Completion of all undergrounding work within the District is estimated to utilize approximately $5 million of the $11.2 million of Rule 20A credits.
On February 5, 2019, 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 amended area were notified of the March 5, 2019, public hearing, and a notice was published in The Record on February 22, 2019.
After the public hearing, staff recommends Council adopt a resolution authorizing the amended boundary to be added to the established underground utility district in the Stockton downtown area. The amended district will be bound by Miner Avenue, Sutter Street, Weber Avenue, and the western boundary of the Union Pacific Railroad Corridor as shown on Exhibit 1 to the Resolution. The Rule 20A undergrounding project is being coordinated with the Miner Avenue Complete Streets project. Undergrounding work along Miner Avenue is anticipated to be completed in summer of 2019.
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 December 2018, 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 programmed in the City’s CIP.
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 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 the 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 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.
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. This corridor was included in the Rule 20A Streetlighting Program as part of the FY 2017-22 CIP.
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 grant funding for design of the entire Miner Avenue corridor and construction of the improvements.
The Rule 20A undergrounding will occur prior to the Miner Avenue Complete Streets capital project and will remove existing lights attached to wood poles. City staff and PG&E will coordinate the installation of temporary lighting utilizing the Measure K funded Rule 20A Streetlight project (PW1521) programmed in the CIP. Permanent street lights will be installed along the corridor as part of the federally ATP funded Miner Avenue project.
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 A). 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.
On November 7, 2017, Council approved Resolution No. 2017-11-07-1503 which established an underground district generally bounded by Miner Avenue, Sutter Street, Weber Avenue, and Aurora Street. PG&E is currently designing the underground utilities to replace utility poles within this newly formed district. PG&E identified six poles located just outside the established underground boundary. These poles are located near the Union Pacific Railroad Corridor on the east side of the approved underground district boundary and are recommended for inclusion in the project. 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. Completion of all undergrounding work within the District is estimated to utilize approximately $5 million of the $11.2 million of Rule 20A credits.
Present Situation
On February 5, 2019, 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 amended boundary 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 to add the amended area to the established Underground Utility District in the downtown area. The amended district will be bound by Miner Avenue, Sutter Street, Weber Avenue, and the western boundary of the Union Pacific Railroad Corridor as shown on Exhibit 1 to the Resolution. This will enable staff, PG&E, and other utilities to underground the additional poles in coordination with the construction of the Miner Avenue project. The action will also allow the Rule 20A funding to cover the undergrounding cost. 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 Miner Avenue to be completed in summer of 2019.
The conversion of overhead utility distribution system facilities to underground is in conformance with the City’s General Plan and is categorically exempt from the requirements of California Environmental Quality Act (CEQA) as specified under Article 19, section 15302, Class 2(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. CE01-19 under CEQA.
Public Notification
Notice of the Public Hearing was published in The Record on February 22, 2019. The notice is required to be published a minimum of 10 days prior to the public hearing.
FINANCIAL SUMMARY
The recommended actions to amend the district will enable staff, PG&E, and other utilities to coordinate and plan phasing of the conversions of the additional utility poles. As of December 2018, the City accumulated approximately $11.2 million in the Rule 20A account with the utility companies. These funds can only be used by the utility companies for design and construction of a City-authorized undergrounding project. Approximately $5 million of these accumulated funds will be utilized to construct the Miner Avenue project. 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. Subsequent coordination with utility companies will provide information needed to assist with an estimate of the cost to the City. The CIP includes a project (PW1521) for these City funded Rule 20A project costs. PW1521 has an unencumbered balance of $173,000 which is sufficient to fund any design related costs. If additional funding is needed for construction, it will be budgeted as part of the City’s Five-Year CIP.
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