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Attachment I Staff Report

Council Sustainability Committee
January 8, 2024

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Attachment I Staff Report
Meeting
January 8, 2024
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Council Sustainability Committee
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1
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DATE: January 8, 2024
TO: Council Sustainability Committee
FROM: Director of Public Works
SUBJECT: Proposed PG&E Transmission Line Over Highway 92: Discussion and Recommendation to Council

RECOMMENDATION
That the Council Sustainability Committee (CSC) reviews this report and provides a recommendation to Council to approve agreements with PG&E and Caltrans.

SUMMARY
PG&E has proposed a new electrical transmission line that would cross Highway 92 to serve a new data center located on Clawiter Road. The crossing is part of a large industrial project that was approved by the Planning Commission in 2021. The proposed alignment of the transmission line has been modified and would require the removal of several additional mature trees. PG&E is offering mitigation funds to Caltrans, however, by law, Caltrans cannot enter into agreements with private entities. Therefore, Caltrans has requested that the City serve as an intermediary and enter into an agreement with PG&E to accept the funds and an agreement with Caltrans to transfer the funds to Caltrans for tree mitigation. Staff is seeking the Committee’s direction to negotiate the necessary agreements, which would be presented to the full Council for approval.

BACKGROUND
The Hines project was approved by the Planning Commission on February 11, 2021. The project consists of four industrial buildings, including a three-story data center, on an approximately 26-acre site located at 25800 Clawiter Road. The site is also adjacent to the California State Route 92 (SR92) highway. See Figure 1 below.

Figure 1. Site Plan
The three-story data center, approximately 279,000 square feet, is shown as Building 4 in Figure 1. The project, which is nearing completion, includes a transformer yard at the east end of the site that will serve the data center and new high voltage transmission lines connecting to an off-site PG&E substation across SR92.

DISCUSSION
The developer of the data center is working with PG&E to connect the on-site data center transformer yard to PG&E’s substation located on Arden Road. PG&E has submitted encroachment permits to the City and Caltrans seeking permission to work within the street and highway rights of way to construct the required 230kV transmission towers and line as shown below in Figure 2.

Figure 2. Proposed Route for new 230kV Transmission Towers and Line Due to minimum clearances required for the proposed transmission line, the segment shown above in orange would require the removal of several mature trees. PG&E has offered to provide mitigation funds for alternative landscaping. Caltrans is prohibited from entering into an agreement with a private entity such as PG&E. The parties have requested that the City help facilitate the tree and landscaping mitigation by entering into agreements with PG&E and Caltrans.

SR92 is designated as a scenic highway in the Alameda County Scenic Route Element of the Alameda County General Plan. The Scenic Route Element, last updated in 1994, also prohibits the installation of new billboards along designated routes, including Highway 92. This section of SR92 is also designated as a Classified Landscaped Freeway (CLF). CLF is a section of freeway with ornamental vegetation planting that meets the criteria established by the California Code of Regulations, Outdoor Advertising Regulations, Title 4, Division 6. This designation is used by Caltrans for the control and regulation of outdoor advertising displays. Landscaped Freeways are sections of freeway that have been landscaped within the State right-of-way and are generally in urban areas. To qualify for classification, planting must be:

Within State Right of Way
Minimum 1000 feet long and contiguous (no gaps greater than 200 feet) Ornamental
On at least one side of the freeway
Require reasonable maintenance
The PG&E mitigation funds would be used to prepare a landscape design plan that will likely include new shrubs below the transmission line to replace the existing trees. The landscape design plan may also include tree planting in nearby areas where they would not conflict with the overhead transmission line. The new landscaping should allow Caltrans to maintain SR92’s CLF designation.

FISCAL IMPACT
The proposed PG&E transmission line will have no impact on the City’s General Fund. The City staff coordination efforts will be provided by existing budgeted staff positions.

ECONOMIC IMPACT
The proposed PG&E transmission line is needed to allow for the operation of the data center, which was previously approved by the City. The project will not have a significant impact on the local economy.

STRATEGIC ROADMAP
This agenda item does not relate to any Strategic Priorities or projects in the Strategic Roadmap.

SUSTAINABILITY FEATURES
The proposed landscape mitigation to be completed as part of the transmission line installation will seek to minimize the loss of existing trees and vegetation. Mitigation work will be required to establish new landscaping of equal value as required to maintain the Classified Landscaped Freeway designation of State Route 92, and will be designed to maintain its scenic qualities.

PUBLIC CONTACT
No public contact was made for this agenda item.

NEXT STEPS
Upon direction from the Committee, staff will negotiate agreements with Caltrans and PG&E and then seek authorization from the full Council to execute the agreements.

Prepared by: Erik Pearson, Environmental Services Manager Recommended by: Alex Ameri, Director of Public Works
Approved by:
___________________________________________
Kelly McAdoo, City Manager

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