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HomeMy Public PortalAbout2020-03-10 Item 8CITY COUNCILAGENDA REPORTCI^.<f€1,1>1£»^s0CITY OF MILLBRAE621 Magnolia AvenueMillbrae, CA 94030SUBJECT: Hold Public Hearing and Adopt ResolutionEstablishing an Underground Utility Districton Millbrae Avenue between MagnoliaAvenue to Minorca WayATTACHMENTS; (1) ResolutionReport No. (^ ^ J^For Agenda of: March 10, 2020Department: Public WorksOriginator: Jane^K^ec^^^--Approved: /^^^Budget ActionYes:No: XFinance^w.^/rxINFORMATIONALREPORT TYPE: ACTIONITEM TYPE: CONSENT PUBLIC HEARINGEXISTING BUSINESS NEWBUSWESS XRECOMMENDATION:Staff recommends holding a public hearing and adopting a resolution establishing an underground utilitydistrict on Millbrae Avenue between Magnolia Avenue and Minorca Way, approximately 3,000 linear feet("Proposed District").BACKGROUND:Rule 20A Undergrounding ProgramIn 1967, the California Public Utilities Commission (CPUC) established tariff rules for what is nowcommonly referred to as the "Rule 20A Utility Undergrounding Program" (Rule 20A). This statewideprogram was created to eliminate the concentration of overhead electric and telecommunication utilitylines and wooden utility poles in areas with heavy concentrations of overhead electric facilities, alongstreets or roads that are extensively used by the general public and carry heavy volumes of pedestrian orvehicular traffic, along streets or roads that adjoin or pass through civic or public recreation areas or areasof scenic interest to the general public, and streets or roads that are considered arterial or major collectors.Rule 20A allows cities and counties to receive an annual allocation of monetary credits that accumulatefor the eventual expenditure and benefit of undergrounding unattractive overhead wires in theircommunity. The program is financed by the rate payers through Pacific Gas & Electric Company (PG&E).Each year, PG&E sets aside a specified number of work credits from rate payers within each city tounderground overhead utility lines. Cities can also trade or sell unallocated Rule 20A credits to interestedcommunities for approximately 50% on the dollar.As of March 10, 2020, the City ofMillbrae's (City) current Rule 20A allocation is $3,809,079. Since thelast undergrounding project, the City has implemented a practice of allowing the annual credits toaccumulate until sufficient funds are available for another impactful project. However, on May 2, 2019,PG&E notified the Department of Public Works that a portion of the City's current Rule 20A allocationwill be redirected to the City of Live Oak based on CPUC Resolution E-4971 because the City of LiveOak is actively working on their own Rule 20A undergrounding project. This CPUC resolution ordersPG&E to reallocate $554,000 of statewide unused credits from communities that have not participated inPage 1 of 416362207.2 the Rule 20A program in the last eight years. The City was identified as an inactive community. Pursuantto CPUC Resolution E-4971, PG&E proposed to reallocate approximately $19,901 of this allocation tothe City of Live Oak. To avoid this reallocation, the City may adopt a resolution establishing anunderground utility district prior to March 11, 2020, which will prevent the reallocation of a portion ofthe City's current Rule 20A credits to the City of Live Oak.Formation of an Underground Utility DistrictFormation of an underground utility district is necessary to qualify a project for the use of Rule 20A funds.CPUC rules allow participating cities and counties to establish legislation authorizing the creation ofunderground utility districts within which existing overhead electric and telecommunication distributionand service facilities will be converted to underground. Chapter 8.30 "Undergrounding of Utilities" of theMillbrae Municipal Code authorizes the City Council to designate areas within which all existing overheadpoles, overhead wires and associated overhead structures should be removed and replaced withunderground installation of wires and facilities for supplying electric, communication, or similar orassociated service.Chapter 8.30 requires the City Council to call public hearings to determine whether public necessity,health, safety and welfare requires the removal of poles, overhead wires and associated overhead structuresand the underground installation of wires and facilities for supplying electric, communication, or similaror associated services prior to the formation of a district. After the public hearing, the City Council mayadopt a resolution declaring a designated area an underground utility district and ordering the removal andunderground installation of poles, overhead wires and associated overhead structures.ANALYSIS:Proposed ProtectStaff has conferred with PG&E to identify and review the boundaries of potential underground utilitydistricts within the City. Staff has identified the area depicted in Exhibit A of the attached Resolution(Proposed District) as an area that can benefit from Rule 20A funds. There are 41 affected propertieswithin the Proposed District. The project will entail removal of all poles, overhead wires and associatedoverhead structures within the District, and the undergrounding of these utilities. The project will alsoinclude connection of individual parcels to the new undergrounded lines. Some parcels within theProposed District may already receive service from an underground source and there will be no change tothese individual service lines. The City will remove, at its own expense, all city-owned equipment fromall poles in ample time to enable the owner or user of such poles to remove the same within the timespecified in the resolution.The City currently has of $3,809,079 in Rule 20A work credits available, including its currently accruedbalance and five years of permitted borrowing against future work credits. The City's current annualallocation to the Rule 20A program is approximately $78,362. PG&E indicated that their most recentundergrounding projects have ranged between $1,000 and $1,300 per linear foot. Rule 20A funds can beused toward construction cost, design, service laterals, and panel conversions, and other costs; however,the City will be responsible for certain costs to implement the project, including staff time, projectcoordination and inspection, and streetlight conversions infrastructure, if any. Since most of the recentundergrounding projects have ranged between $1,000 and $1,300 per linear foot, the total cost tounderground is approximately $3.9 million, which could create a shortfall of about $100,000. The Cityintends to cover any potential shortfall for the project in the event that Rule 20A funding is insufficient.Remaining Rule 20A work credits may be used towards any additional cost related to the project.Page 2 of 416362207.2 Eligibility Findings for Rule^OAThe Council must make a series of findings in order for the project to be eligible for Rule 20A funds. Inparticular, the City must find, after consultation with PG&E that such undergrounding is in the generalpublic interest for one or more of the following reasons:a. Such undergrounding will avoid or eliminate an unusually heavy concentration of overheadelectric facilities;b. The street, road or right-of-way is extensively used by the general public and carries a heavyvolume of pedestrian or vehicle traffic;c. The street, road or right-of-way adjoins or passes through a civic area, public recreation area or anarea of unusual scenic interest to the public; andd. The street, road or right-of-way is considered an arterial street or major collector as defined in theGovernor's Office of Planning and Research General Plan Guidelines.After consultation with PG&E staff recommends that the Council find the Proposed District meets all fourcriteria above for the following reasons:There are heavy concentrations of overhead electric facilities along the Proposed District and theundergrounding will avoid or eliminate these heavy concentrations;The Proposed District is between two major freeways, is extensively used by the general public,and carries a heavy volume of pedestrian or vehicular traffic;The Proposed District adjoins Millbrae Station, a regional intermodal transit center—a civic area,and the Spur Trail—an area of scenic interest to the general public; andThe Proposed District is considered a minor arterial street as defined in the Governor's Office ofPlanning and Research General Plan Guidelines.Establishment of Underground Utility DistrictEstablishment of an underground utility district pursuant to Chapter 8.30 of the Municipal Code isnecessary to facilitate the project. For those property owners that may be affected, the City has notifiedthe owners by mail of the scheduled March 10, 2020 public hearing, which waa aloo ad'rortiood in tho SanMatoo County Timoa. Staff has also reached out to various utility companies, such as AT&T, to determinewhether they have any concerns regarding the proposed project. Formation of an underground utilitydistrict requires the Council to find that the public necessity, health, safety or welfare requires the removalof overhead utility lines and the undergrounding of such lines within the designated area. Staffrecommends that the Council make these findings for the reasons stated above establishing that the projectis in the general public interest.The resolution creating the Proposed District also requires the removal of all poles, overhead wires, andassociated overhead structures within the District by March 31 , 2024 and that all property owners withinthe District must be ready to receive underground service by March 31, 2024.Execution of Pro j ectPG&E will take the lead role in design and construction of the project, and coordinate with the City andother utility companies to underground their own utilities. In order to receive the Rule 20A allocation,the City must execute the Rule 20A General Conditions agreements with PG&E. The agreements providethat the City will work cooperatively with PG&E by contribute staff time, project coordination andinspection, and streetlight conversions infrastructure, if any. The City is responsible for holding a publichearing about the proposed Rule 20A project, adopting a resolution establishing the underground utilitydistrict, providing boundary maps and available drawings to PG&E, providing lists of affected propertyowners and standards for trenching and construction, mailing PG&E-prepared easements to propertyowners, coordinating meetings to assist PG&E with acquiring easements, and scheduling the project,Page 3 of 416362207.2 Following the establishment of the underground district, staff will coordinate with PG&E and begin designof the undergrounding and associated infrastructure project.FISCAL IMPACT:The City's ciirrent Rule 20A allocation of $3,809,079 is approximately sufficient for undergrounding theProposed District. The Rule 20A funds can be used towards construction cost; however, the City wouldbe responsible for certain costs to complete the project including staff time, project coordination andinspection, and street light conversion infrastructure, if any. Actual construction cost estimates will bedeveloped once the project's preliminary design is complete by PG&E.COUNCIL ACTION:Hold public hearing and adopt resolution establishing an Underground Utility District on Millbrae Avenuebetween Magnolia Avenue to Minorca Way.Page 4 of 416362207.2 CITY OF MILLBRAE, COUNTY OF SAN MATEOSTATE OF CALIFORNIA***RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MILLBRAEESTABLISHING UNDERGROUND UTILITY DISTRICT OF MILLBRAEAVENUE SPUR TRAILWHEREAS, the California Public Utilities Commission (CPUC) has authorizedelectric and telecommunication utilities to convert overhead utility lines and facilities tounderground pursuant to Electric Rule 20 and Telecommunication Rule 32; andWHEREAS, each year the City of Millbrae is notified by PG&E regarding theallocation of work credits for conversion of overhead electric distribution lines andfacilities to underground, known as Rule 20A allocations; andWHEREAS, the Director of Public Works for the City ofMillbrae has consultedwith PG&E and determined that the City has accumulated Rule 20A work credits sufficientto complete the conversion of certain overhead lines to underground lines within theboundaries of the proposed Underground Utility District of Millbrae Ave Spur Trail("District") located in the area commonly known as the 300 to 1100 blocks ofMillbraeAvenue, as more particularly described and depicted in "Exhibit A," attached hereto andincorporated as part of this resolution ("Project"); andWHEREAS, pursuant to Rule 20A, PG&E will, at its expense, replace existingoverhead electric facilities along public streets and roads, public lands, and private propertyprovided that the City of Millbrae finds an underground utility district is in the generalpublic interest; andWHEREAS, the City ofMillbrae will work cooperatively with PG&E to carry outthe removal of overhead poles, overhead wires and associated overhead structures andunderground installation of wires and facilities for supplying electric, communication, orsimilar or associated service; andWHEREAS, the City ofMillbrae will enter into agreements with PG&E to performwork for electric panel conversion and replacement of overhead with underground electricfacilities pursuant to Rule 20A; andWHEREAS, CPUC rules allow participating cities and counties to establishlegislation authorizing the creation of underground utility districts within which existingoverhead electric and telecommunication distribution and service facilities will beconverted to underground; andWHEREAS, Chapter 8.30 "Undergrounding of Utilities" of the MillbraeMunicipal Code authorizes the City Council to designate areas within which all existing16294822,1 overhead poles, overhead wires and associated overhead structures should be removed andreplaced with underground installation of wires and facilities for supplying electric,communication, or similar or associated service; andWHEREAS, on March 10, 2020, the City Council held a public hearing pursuantto Millbrae Municipal Code Section 8.30.020 for the purpose of ascertaining whetherpublic necessity, health, safety or welfare require the removal of poles, overhead wires andassociated overhead structures and the underground installation of wires and facilities forsupplying electric, communications, or similar associated service; andWHEREAS, such public hearing was called by the City of Millbrae for Tuesday,March 10, 2020 at the hour of 7:00 p.m. in the City Council Chambers, 621 MagnoliaAvenue, Millbrae; andWHEREAS, such notice of hearing was given to all affected property owners asshown on the last equalized assessment roll and utilities concerned in the manner and forthe time required by law; andWHEREAS, such hearing has been duly and regularly held, and all personsinterested have been given the opportunity to be heard.NOW, THEREFORE BE IT RESOLVED THAT THE CITY COUNCIL OFTHE CITY OF MILLBRAE FINDS AS FOLLOWS:SECTION 1.The City Council finds and determines pursuant to Section 8.30.030 of the MillbraeMunicipal Code that the public necessity, health, safety and welfare require the removal ofpoles, overhead wires and associated overhead structures and the underground installationof wires and facilities for supplying electric, communication, or similar or associatedservices within the District, and designates the District an underground utility district; andSECTION 2.The City Council finds that, consistent with the requirements of Rule 20A, theundergrounding of utilities within the District is in the general public interest because:(a) the undergrounding will avoid or eliminate an unusually heavyconcentration of overhead electric facilities;(b) the District is extensively used by the general public and carries a heavyvolume of pedestrian or vehicular traffic between two major freeways;(c) the District adjoins a civic area, the region's intermodal transit center, andSpur Trail, an area of scenic interest to the general public; and(d) the District is considered a minor arterial street as defined in the Governor'sOffice of Planning and Research General Plan Guidelines.16294822.1 SECTION 3.The City Council hereby orders that all poles, overhead wires, and associated overheadstructures within the District must be removed by March 31, 2024, after which date it shallbe unlawful for any person or utility to erect, construct, place, keep, maintain, continue,employ or operate poles, overhead wires and associated overhead structures in the District,except as stated in Chapter 8.30 of the Municipal Code and Section 5 of this Resolution.SECTION4,The City Council hereby orders that all property owners within the District must be readyto receive underground service by IVIarch 31, 2024.SECTION 5.Pursuant to Municipal Code Section 8.30.060, the following exceptions to the provisionsof Section 3 are hereby authorized:(a) Any municipal facilities or equipment installed under the supervision andto the satisfaction of the city engineer;(b) Poles, or electroliers used exclusively for street lighting;(c) Overhead wires (exclusive of supporting structures) crossing any portion ofa district within which overhead wires have been prohibited, or connectingto buildings on the perimeter of a district, when such wires originate in anarea from which poles, overhead wires and associated overhead structuresare not prohibited;(d) Poles, overhead wires and associated overhead structures used for thetransmission of electric energy at nominal voltages in excess ofthirty-fourthousand five hundred volts;(e) Overhead wires attached to the exterior surface of a building by means of abracket or other fixture and extending from one location on the building toanother location on the same building or to an adjacent building withoutcrossing any public street;(f) Antennas, associated equipment and supporting structures, used by a utilityfor furnishing communication services;(g) Equipment appurtenant to underground facilities, such as surface-mountedtransformers, pedestal-mounted terminal boxes and meter cabinets, andconcealed ducts.SECTION 6.The utility companies, cable television services and other affected services shall commencework on installation of underground facility in the District and that all fronting propertyowners shall be notified by first class letter, postage pre-paid, of the schedule forconversion of all utility service lines.16294822.1 SECTION 7.The electric utility shall use the underground conversion allocation computed pursuant todecisions of the CPUC for the purpose of providing, to each premises requiring it, amaximum of one hundred feet of individual electric service trenching and conductor (aswell as backfill, paving and conduit, if required).SECTION 8.The electric utility shall use said underground conversion allowance allocation for theconversion of electric service panels to accept underground service in the District, and theCity of Millbrae shall be financially responsible for any and all costs not covered by theelectric utility for the installation and maintenance of the conduit and termination boxlocated on, under or within any structure on the premises served.SECTION 9.The City Council has determined that this action is categorically exempt fromenvironmental review pursuant to the California Environmental Quality Act. This actionfall under the Class 1 exemption for minor alterations of existing public structures andfacilities with negligible or no expansion of an existing use. (14 C.C.R §15301.) Thisexemption includes existing facilities used to provide public utility services. (14 C.C.R.§15301 (b).) The action taken under this resolution will not expand existing use of thepublic utility services.SECTION 10.The City Clerk is hereby directed to notify all affected utilities and all persons owning realproperty within the District as described in the Millbrae Municipal Code 8.30.070.SECTION 11.The City Manager, or designee, is authorized to extend the times set forth in Sections 3 and4 of this resolution for good cause, and to take all acts necessary and proper to carry outthe intent of this Resolution, including but not limited to entering into agreements withPG&E to perform work for electric panel conversion and replacement of overhead withunderground electric facilities, all in a fonn approved by the City Attorney.REGULARLY PASSED AND ADOPTED this 10th day of March, 2020.MayorATTEST:City Clerk16294822.1 avaniiwo£o»6 -vs '3Vtianiw•3AV VHONOVN tZgavaanin jo AIIO&dVN AUVQNnOSioiyisia QNnoyoy3aNns^syHin •-03AV VnONOVM9Sl^00bss£^.§-; I^y2CNwy3AV SIM31^yt-5 g1<§sQ^^0g.sg^^0a-ssu3AV MQ^^IM^§^g00—^[^ N OrMr?ssa3AV yVldOd---»y^i^Sa^S^5^^3^335^S5si£&&rssmssss&sss&&isst^^^^^^^^^s5sIII2335522255555235355555553oooooacM'+tpoointninotpr^oo—"ina o r- ncM^nfO-^--^-tnintO(£)r^.r^cocooo(ODOoicn[j)cnCT)oiCT>[j>g3AV d3a-13~"Ld"I!<sS-ids —3AV WIVdwytes13?=T!u^Jia2g3AV -13ZVHssrSeLJ8^s"ts.1I!J...........1.-!,-I30s83g•sssCO•sI15^IIsISsu's3AV i3ynvi3^ut "<q:^u^<s ?3033sLO§as0's^3A\N01HSV^/It^g^sv£•s/l^J=1'0£g/!52CL03SVJ 13sR>-ssL.-10s'gIIsg^^£gss8^<gI^^amJ\3:^26^^kV '4I