ADMINISTRATIVE REPORT
MEETING DATE: May 14, 2025 AGENDA CATEGORY: Consent - Agreement TO: Honorable Mayor and City Council
FROM: Zachary Meyer, Public Works Director
DATE: April 28, 2025
SUBJECT: Work Plan Agreement with Pacific Gas and Electric Company (not-to-exceed $674,394) for 34th Street Rule 20-A Utility Undergrounding (Ward 3)
RECOMMENDATION:
Staff recommends approval of the agreement.
BACKGROUND:
The California Public Utilities Commission has a program administered through Pacific Gas & Electric (PG&E) to relocate overhead power and other utility lines underground. This program, known as Rule 20- A, is funded through a surcharge on all PG&E bills. PG&E periodically meets and coordinates with the City staff to prioritize and plan underground projects as funds become available in the City’s account.
PG&E notified the City in May 2020 that the 34th Street Rule 20 -A Proj ect was next on the list and sufficient funds had been collected for the project. Sufficient Right-of-Way has been acquired and PG&E has completed the design of the project. The project will underground the pole mounted utilities and remove the poles alo ng 34 th Street from Chester Avenue to Union Avenue. Through the Rule 20 -A program, PG&E has $8,223,526 available towards funding the project. The project estimate provided by PG&E is $8,897,920. The City allocated $1,500,000 in the Fiscal Year 2024-25 Budget towards funding the gap.
The City will enter into a Work Plan Agreement with a not-to-exceed amount of $674,394 in order to fund the completion of the project.
FISCAL IMPACT:
The project is funded with Utility Surcharge Fund from Project No. T1K3 25 34th Street Rule 20-A Utility.
There is no General Fund impact for these services or project.
COUNCIL GOAL:
Reliable Infrastructure
ATTACHMENTS:
Agreement – PGE – Perform Tariff Schedule