Item No. 7
Town of Atherton
CITY COUNCIL STAFF REPORT – REGULAR AGENDA
TO: HONORABLE MAYOR AND CITY COUNCIL
GEORGE RODERICKS, CITY MANAGER
FROM: ROBERT OVADIA, PUBLIC WORKS DIRECTOR
DATE: MAY 21, 2025
SUBJECT: PROVIDE FEEDBACK AND DIRECTION REGARDING UTILITY
SERVICES EXEMPTIONS PROCESS FOR DEVELOPMENT
PROJECTS AND APPROVAL OF OVERHEAD ELECTRICAL
UTILITY SERVICE CROSSING OF THE ATHERTON CHANNEL
FOR 39 BARYY LANE
RECOMMENDATION
It is recommended that the Council review and provide feedback and direction to staff regarding the proposed process for exemptions to the underground utility service connections required by the Town’s construction regulations associated with development and redevelopment construction projects; and approval of an overhead electrical utility service crossing of the Atherton Channel at 39 Barry Lane.
BACKGROUND
Atherton Municipal Code (AMC) Section 15.40 regulates various construction activities including but not limited to screening, parking, noise, signage, and utility services. AMC Section 15.40.010, adopted in 1966 states:
“All telephone, telegraph, electric wires and other such service facilities to newly constructed dwellings shall be placed underground from the point of the utility company pole. This section shall apply to all dwellings where building permits have not been issued prior to the date of the ordinance codified in this section. (Ord. 272, 1966)” This ordinance was likely enacted for multiple reasons including an effort to reduce the proliferation of overhead wires as the Town continued to develop, public safety and resiliency and aesthetics.
Staff interpretation of this ordinance requirement prohibits the installation of new overhead service lines or extension of service lines from existing infrastructure. The installation of new poles is limited to direct frontage along an existing pole line, unless agreement from other affected Construction Regulations
Underground Electrical Services
MAY 21, 2025
properties is obtained. Pole replacement is permitted to allow for required services.
PG&E regulations limit the number and size of overhead transformers on utility poles and do not allow for primary power lines to be undergrounded on poles with transformers. PG&E is also limiting the approval/installation of new underground transformers related to availability, safety, and other concerns.
PG&E has indicated that they are generally able to provide a 400 Amps service for primary residences and an additional 200 Amp service for detached accessory dwelling units (ADU’s) with limited additional infrastructure. Many new full site development/redevelopment projects require services of 600 Amps or greater for the primary residence and accessory structures with additional service needs for an ADU if included. These large services typically require dedicated transformers from primary (high-voltage) power lines, or the extension of the primary lines to the private property with transformer located on site to accommodate the project’s power needs. Due to rightof-way constraints, aesthetics and impacts to neighboring properties, staff does not permit new above ground pad-mounted transformers within the public right-of-way.
With the increased power needs for projects and the number of utility poles with existing transformers, it is often difficult to locate a nearby utility pole that can easily accommodate the power needs for a large-scale development project. Developers, property owners and PG&E often seek the easiest/cheapest solution of installing a new pole and/or extending utility lines, most often affecting other’s property frontage as the most expedient way to provide power to their projects.
In consideration of heritage trees within and along the right-of-way and on property, installation of underground utility services often include directional boring or hand digging to minimize tree impacts. As outlined above, undergrounding of utility services and minimizing additional overhead utility infrastructure is increasingly important for public safety and resiliency, and minimizing impacts to residents and property values.
ANALYSIS
At the March 5, 2025, City Council Study Session, staff presented various development projects, issues related to the provision of underground utility service, outlined constraints and various solutions developed for various scenarios. In consideration of increasing climate risk, public safety concerns, aesthetics, and potential permanent impacts to current residents and their properties, the City Council confirmed the need to require undergrounding of service lines for development projects to the maximum extent possible. The City Council further directed staff to develop a procedural outline for instances where the provision of underground electrical utility services is not possible. The following is the proposed outline for granting an exception to the ordinance requirement for underground electrical utility service to a development/redevelopment project:
1. Applicant shall plan for and design underground electrical utility service connections for the proposed development project from the nearest underground transformer, or electrical utility pole capable to provide such service.
2. Applicant shall apply to PG&E for said underground service, including payment of all application and engineering design fees.
Construction Regulations
Underground Electrical Services
MAY 21, 2025
3. PG&E shall advise the Town if electrical underground service is unavailable, unconstructable or otherwise infeasible, regardless of cost.
4. PG&E shall analyze all options to serve the proposed development project, including but not limited to extended trenching to available infrastructure, setting of subsurface transformers, and any other means of providing underground service.
5. Developer shall submit a formal application (to be developed) along with a fee payment to the Town, outlining the scope and overall cost of the development, type of electrical service needed, an outline of the various service connection options considered, desired service connection, and a letter from PG&E that there is not other feasible option for an underground service connection.
6. Staff shall review the application and coordinate a field review and meeting with PG&E to review constraints associated with the project. Staff may require analysis and additional reviews of additional options, at applicant’s expense, to validate the feasibility of any options.
7. Should PG&E determine that there are no feasible options to overhead service, a letter outlining the various analyses completed and reviews conducted shall be provided to the Town along with options to provide service to the property with the least amount of above ground infrastructure possible. All nearby facilities shall be analyzed for potential connection to provide underground service.
8. Staff shall review the various design alternatives evaluated by PG&E and the potential service options that minimize overhead and above ground infrastructure associated with the provision of service and make a recommendation to the City Manager to process an exemption request.
9. Should the City Manager concur with staff’s recommendation, the application shall be forwarded to the City Council for review and approval.
10. Staff would also require noticing of the neighbors, within 500 feet of the subject property regarding the meeting.
39 Barry Lane
As noted above, staff presented various development project scenarios to the Council as part of the March 5, 2025, Study Session. Included in the presentation was the current development project at 39 Barry Lane.
The developer at 39 Barry Lane had been working with PG&E to obtain underground service through the front of the property via a transformer in the cul-de-sac, locatted in front of 53 Barry Lane. The transformer was installed with the development of 53 Barry Lane, also owned by the same property owner of 39 Barry Lane, and included the installation of an underground electrical line from the intersection of Atherton Avenue at Barry Lane. This installation included the use of PG&E Betterment Funds, as it was planned to serve more than the 53 Barry Lane property.
As the developer was working with PG&E, PG&E advised that they would not be able to bring underground service to the property via the front, and advised that the only viable power option Construction Regulations
Underground Electrical Services
MAY 21, 2025
was through the rear of the property, where a pole line exists, on the other side of the Atherton Channel. PG&E proposed to install an overhead line, over the channel, from the existing pole line to a new pole, located in the rear yard of 39 Barry Lane. This was the original service point for the property, prior to demolition. The line would then come underground to a new transformer, to be located outside the required setbacks.
Staff contacted PG&E and asked them to review various options, including a new line from the existing transformer within the cul-de-sac, upgrade of the existing underground transformer, and other options for underground service from the front of the property. PG&E advised that they could not upgrade the underground transformer, nor was sufficient power available from the Atherton Avenue connection. Staff further asked if the crossing of the Atherton Channel could be bored under the channel and PG&E advised that they could not do so. The PG&E Government Liaison attended the March 5, 2025, Study Session and advised of certain limitations that PG&E had and stated that he would review the various options with their engineering teams regarding upgrading the transformer or other opportunities to provide underground service to the property. Following the meeting, the Government Liaison connected with PG&E teams to review the various options and advised that the only viable connection was through the rear, across the channel, via an overhead line connecting either to the original service pole in the rear of 70 Elena Avenue, where the original service connection was, or on the side of 59 Barry Lane, where the temporary power connection was provided for construction. The developer’s preferred and least difficult connection of those two is via the pole on the side of 59 Barry Lane.
Staff is recommending that the Council approve the proposed overhead electrical line, over the Atherton Channel easement, from the existing pole in the rear of 70 Elena Avenue, to a new pole to be located in the rear of 39 Barry Lane, close to the channel easement, where it would then be brought underground in to serve the property.
Staff is also recommending that the Council approve the proposed process, as outlined above. The fee, once developed, will be included in the June 2025 Fee Resolution for adoption.
FISCAL IMPACT
None at this time.
GOAL ALIGNMENT
This Report and its contents are in alignment with the following Council Policy Goals:
• Goal A - Preserve Small Town Character & Quality of Life • Goal C - Maintain Conservative Fiscal Policies and Financial Transparency • Goal D - Be Forward Thinking
POLICY FOCUS
Construction Regulations
Underground Electrical Services
MAY 21, 2025
The policy focus for this item is regarding construction regulations associated with development and redevelopment projects – particularly utility underground requirements.
PUBLIC NOTICE
Public notification was achieved by posting the agenda, with this agenda item being listed, at least 72 hours prior to the meeting in print and electronically. Information about the project is also disseminated via the Town’s electronic News Flash and Atherton Online. There are approximately 1,200 subscribers to the Town’s electronic News Flash publications. Subscribers include residents as well as stakeholders –to include, but be not limited to, media outlets, school districts, Menlo Park Fire Protection District, service provides (water, power, and sewer), and regional elected officials.
COMMISSION/COMMITTEE FEEDBACK/REFERRAL
This item has not been before a Town Committee or Commission
ATTACHMENTS
1. 39 Barry Lane – Layout and Proposed Electrical Service Location