SUPPLEMENTAL REPORTS & COMMUNICATIONS
Office of the City Clerk
City Council of the City of Napa
Regular Meeting
February 17th, 2026
SUBMITTED PRIOR TO THE CITY COUNCIL MEETING
AFTERNOON SESSION
7. ADMINISTRATIVE REPORTS
7.A. CDBG Program Income Funding
• Presentation from Staff
7.B. Jefferson Street Undergrounding Project Update
• Presentation from Staff
CDBG
Program
Income
February 17, 2026
7.A.
Meeting Purpose
• Receive report on the CDBG program
income resulting from the sale of 1051-
1199 Pearl Street
• Provide direction on prioritizing or limiting
the applications in the upcoming special
round of program income funding
2 CDBG Funds Available
• Program Income
• Building parcel sale $869,348
Total available to allocate $869,348
3 CDBG Regulations
• Up to 20% of the current year program
income can be used for administrative costs
• Up to 15% of previous year program income
can be used for public services
• Affects the calculation for public services in the
Fiscal Year 26-27
• Remainder to be spent on community
development projects
4 CDBG Requirements
Program or project must:
– benefit low- or moderate-income persons
– be an eligible use under CDBG regulations
– meet one (or more) of the goals identified in
the 2025-2030 Consolidated Plan
– utilize CDBG funding in a timely manner
• December 31, 2026
5 Consolidated Plan Priority
Needs
• Affordable Housing
– Housing rehabilitation
– Construct new affordable rental units for
families
– Acquire and rehabilitate existing units
– Provide rental assistance
– Farmworker housing
– First time homebuyers
– Permanent supportive housing
– Non-profit capital improvement projects
6 Consolidated Plan Priority
Needs Continued
• Homeless Services
– Emergency shelter services
– Outreach/referral for racial/ethnic minority
groups
– Services for children aging out of foster care
– Non-profit capital improvement projects
7 Consolidated Plan Priority
Needs Continued
• Community Development
– Outreach/referral for racial/ethnic minority
groups
– Fair housing activities
– Services for children aging out of foster care
– Non-profit capital improvement projects
– Infill sidewalks in low-income neighborhoods
– Improvements to access of parks and rec
facilities
– Local business support
– Affordable childcare facilities
8 Recommended Actions
• Provide direction on limiting or prioritizing
CDBG applications
9 Jefferson Street Undergrounding
Project Update
7.B
Jefferson Street
Undergrounding Project
• Funded by Rule 20A
• Relocate overhead utilities
underground
• Lincoln Avenue to Trancas Street
(original project boundary)
• Aesthetically enhance the area
• Improve safety
• Clear sidewalk barriers
• Prepare for Jefferson Street corridor
study
Project Background
Underground Utility District Formed by City
• 2013 Public outreach meetings
• 2014 Underground Utility District formed
• Original district limits: Lincoln Avenue to Trancas Street PG&E Designs Project
• 2015 Survey and mapping begin
• 2018 PG&E initiates design
• 2021 Right-of-way acquisition completed by City
Project Bid by PG&E
• 2021 PG&E bids project
• Bids higher than available work credits
CPUC Issues New Program Rules
• 2021 project paused by PG&E during CPUC rulemaking
• Newly issued rules govern how Rule 20A projects move forward • CPUC sets deadlines for Rule 20A projects
4 What is Rule 20?
In 1967, the California Public
Utilities Commission (CPUC)
passed the Electric Tariff Rule 20.
This tariff allows customers of investor-
owned utilities to request the
conversion of overhead electric
distribution lines to underground
service.
This is separate from PG&E’s wildfire-
safety undergrounding work.
5 Rule 20A Public Interest Criteria
Rule 20A projects must meet at least one public interest criteria set by the Rule 20 Tariff. This includes:
Undergrounding will avoid or eliminate an unusually heavy concentration of overhead electric facilities
Street or road or right-of-way is extensively used by the general public and carries a heavy volume of pedestrian or vehicular traffic Wheelchair access is limited or impeded in a manner that is not compliant with the Americans with Disabilities Act
The street or road or right-of-way adjoins or passes through a civic area or an area of significance
The street or road or right-of-way is considered an arterial street or major collector as defined by the California Department of Transportation’s California Road System functional classification system.
6 • Along Jefferson St.
• Between approximately
Lincoln Ave. and Trancas St.
• Bisected by the Napa Valley
Wine Train Railroad
Jefferson St. Rule 20A Project Overview
The 2014 resolution and current
boundary map for this project runs:
The full project scope was
designed and put out to bid in
2021. The bids came in
above Napa's work credits.
7 Rule 20A Sunset Timeline – CPUC Decisions
Jun 3, 2021
CPUC issued OIR Phase 1
decision eliminating work
credit allocations, five-year
borrow, and banning work
credit trading
Dec 31, 2022
No new work
credits authorized
after 2022
2021 2022 2023
Jun 8, 2023
CPUC issued OIR
Phase 2 decision
that work credits
will expire in 2033
8 Rule 20A Sunset Timeline – PG&E’s Role
Jun 6, 2025
All work credits in inactive
communities expire
Mar 10, 2025
PG&E submits
comprehensive work
credit reallocation plan
2024 2025 2033
CPUC reviews
and approves
reallocation plan
Dec 31, 2033
All work
credits expire
9 Jefferson St. Rule 20A Project Finances
City of Napa Work Credit* Balance $9,920,852
Project Base Estimate** $11,459,027
Weighted Risk Value $3,710,847
(shared with Napa PWD/Engineering Team in Q3 2025)
Net Estimate $15,169,874***
Difference Between Napa Work
Credit Balance and Net Estimate $5,249,022
*Work credits are not monies, but credits as described in the Electric Tariff Rule 20. One work credit is equal to one U.S. dollar. Municipalities can use work credits to pay for the full or partial cost of a project. If a municipality elects to move forward with a Rule 20A project without having enough work credits to cover the full cost, community funds must be used to make up the difference.
**Project forecast financials are from early November 2025 and assume that the project will enter construction in 2026. ***Includes billing credits
Project Options
1 Cancel Project Stop all work; City’s allocated work
credits expire in 2033
2 Assessment District Generates revenue by assessing
property owners
3 Pay PG&E $5.25M Fund the gap; complete entire project 4 Reduce Project Scope Use all available work credits to maximize undergrounding area
Primary Options for Reduced Scope
JEFFERSON STREET
TRANCAS STREET
LINCOLN STREET
B
A
Prioritization Considerations
R R
Traffic Safety and Pedestrian Access
Land Use and Business Impacts
Major Barriers
Connectivity
• Pedestrian Barriers: 13
poles in the walkable path
• Close the fiber gap to
traffic signals along
Jefferson (Pueblo to
Trancas) and along Trancas
(SR29 to Soscol)
Option 4A: North Segment
(Trancas south towards RR Tracks)
Option 4A: North Segment
(Trancas south towards RR Tracks)
• Primary Land Use: Commercial
• Residential: mobile home park
• Connectivity: adjacent to Bel Aire
Plaza, most visited destination in
Napa County
• City owned frontage at
‘The Grape Yard’
Option 4B: South Segment
(Lincoln north towards RR Tracks)
• Pedestrian Barriers:
walkable path exists for
entire length
• Impacts from vehicle
crashes (power outage,
closed street, safety)
• Fiber infrastructure exists
for future connectivity
project
Option 4B: South Segment
(Lincoln north towards RR Tracks)
• Primary Land Use: Public Serving (Napa High) –
40%, Commercial
• Residential: None along frontage
• Connectivity: Utilities are underground along
Jefferson from Lincoln Avenue to Polk Street
• Largest single landowner is NVUSD
Options 4A & 4B Comparison
North Segment
(Trancas Street towards RR)
South Segment
(Lincoln Avenue towards RR)
Pedestrian Barriers 13 poles in walkable path 0 poles in walkable path Primary Land Uses Mixed Use, Commercial Commercial, Public Serving Connectivity
Underground utilities along Trancas
Street to SR29;
Bel Aire Plaza - #1 destination
Underground utilities continue to
Polk Street
Residential High Density Residential
(mobile home park) None
Other Considerations Would provide fiber infrastructure for traffic signals
Infrastructure to support fiber
already exists
Next Steps and Timeline
Council
Direction
PG&E Refines
Design Bid Project Construction
Construction mid-2027
Timeline is dependent on PG&E re-scoping and design responsiveness Today 6-12 Months 3 Months 12-36 Months
Recommended
Action:
Provide direction to staff to
reduce the project scope.