Item #14
Date: July 18, 2023
To: Mayor and City Council
From: Vincenzo S. Corazza, Public Works Director
Jim Schaad, City Manager
Subject: Revise the Boundary of Underground Utility District 20-1 Recommendation:
Pass a Motion to 1) conduct a Public Hearing, 2) adopt Resolution 2023-XX to revise the boundary of Underground Utility District 20-1 on the east and west sides of B Street (SR 70) between 13th and 17th Streets and the north and south sides of 14th Street between Chestnut St and High St, in accordance with the attached Underground Utility District (Exhibit 1), and 3) authorize the City Manager, or designee, to execute agreements with involved parties to facilitate the undergrounding of existing overhead utilities in the Underground Utility District 20-1.
Rationale for Recommendation:
To improve the operation and aesthetics of public utility facilities along B Street (SR 70) as part of other planned improvements along this corridor as well as along 14th Street. Furthermore, to secure and expend $2.7 million in Pacific Gas & Electric work credits before the 2033 deadline when all unused work credits will expire.
Background:
On or before March 10, 2020, the City was notified approximately that $2.6 million in PG&E work credits were going to be reallocated by March 11, 2020 should the City fail to form an Underground Utility District and start a project with PG&E. Subsequently, a special council meeting was held on March 10, 2020 and resolution 2020-07 was passed establishing Underground Utility District 20-1 that encompassed primarily the B Street property between 12th St and 14th Street and Bryant Field.
By establishing an underground utility district by March 11, 2020 those work credits were secured and considered active. As a result, they were no longer be subject to a reallocation order.
In 2022 with Caltrans Binney Junction Project and the B Street Property DDA/ Engstrom-Presidio opportunity, Staff began working with PG&E in earnest to move underground the existing overhead utilities along B Street and Chestnut St.
On November 16, 2022, Caltrans held a utilities verification field meeting for its Binney Junction Project and determined that they would not need to underground the PG&E utilities along B Street between 14th and 24th St and would design their project around the undergrounding.
Item #14
On May 24, 2023, Staff, PG&E and other utilities met for a field verification meeting to solidify Marysville’s Rule 20A PG&E project, which at that time was scheduled out approximately 8 years for construction on PG&E’s project list. During the field meeting, PG&E informed City staff of an upcoming California Public Utility Commission decision to determine whether or not to sunset (let expire) any unused work credits of any agency who does not begin a project. The results of the meeting indicated a need to revise the Underground Utility District 20-1 boundary to optimize the City’s available work credits and move the project forward.
Discussion & Analysis:
PG&E converts many miles of overhead electric facilities to underground annually. This work is completed by following the California Public Utilities Commission (CPUC) Rule 20 guideline that is an electric distribution tariff.
Rule 20 has three sections (A, B and C). The use of a particular Rule 20 section is determined by the type of area to be undergrounded and who pays for the work.
Understanding Rule 20A
A Rule 20A project is initiated by a city or county and typically occurs in areas of a community that are used by the public. Customer electric rates fund the projects after construction completion.
A city, county or municipal agency determines the potential project location, and the boundary is discussed with PG&E and other utilities. The governing body of a city or county must determine, in consultation with PG&E and after holding public hearings on the subject, that undergrounding is in the general public interest for one or more of the following qualifying reasons:
Such undergrounding will avoid or eliminate an unusually heavy concentration of overhead electric facilities.
The street, road or right-of-way is extensively used by the General Public and carries a heavy volume of pedestrian or vehicle traffic.
The street, road or right-of-way adjoins or passes through a civic area, public recreation area or an area of unusual scenic interest to the public.
The street, road or right-of-way is considered an arterial street or major collector as defined in the Governor’s Office of Planning and Research General Plan Guidelines.
Per the City of Marysville Municipal Code, Council may designate areas as an Underground Utility District by resolution. Upon establishing an Underground Utility District, it then becomes unlawful to erect or construct new overhead equipment in the district and all existing poles, wires, and associated overhead structures must be placed in underground facilities within a reasonable time frame. All work associated with undergrounding the utilities will be done by PG&E and the other involved utilities, including engineering, excavation, backfill and restoration of paving, concrete, and landscaping.
In 2020, staff identified the best location for establishing an Underground Utility District that qualifies under the rule 20A guidelines. The rules allow for modifying the District at any time once established. By identifying a project and passing a resolution, the reallocation of funds to another jurisdiction were avoided.
On June 8, 2023, the California Public Utilities Commission (CPUC) approved Decision 23-06-008 revising Electric Rule 20. As part of this decision, the CPUC has outlined specific details on how the Rule 20A program will be phased out, including a provision that any unused work credits will expire on December Item #14
31, 2033. As of June 23, 2023 the City of Marysville has $2,755,994 available work credits. It is staff’s intention to program and expend all available work credits allocated to Marysville by 2033. Revising the district boundaries removes ineligible areas and extends eligible areas where undergrounding would be beneficial to the City and aid in expending all work credits.
Fiscal Impact:
There are no fiscal impacts other than negligible administrative costs associated with the revision to the Underground Utility District 20-1 Boundary. These costs will be absorbed in the existing budget.
Attachments:
1) Resolution No. 2023-XX
2) Exhibit 1: Proposed map revision to Underground Utility District 20-1 3) Resolution No. 2020-07
4) Exhibit 1: Current map of the 2020 Underground Utility District 20-1