CITY COUNCIL STAFF REPORT
DATE: JANUARY 28, 2026 BUSINESS & LEGISLATIVE
SUBJECT: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM
SPRINGS, CALIFORNIA, AMENDING PALM SPRINGS MUNICIPAL
CODE ARTICLE V OF CHAPTER 8.04 OF TITLE 8 REGARDING
UNDERGROUNDING OF UTILITIES AND CLARIFYING
RESPONSIBILITIES AND ENFORCEMENT MECHANISMS FOR
PRIVATE CONNECTIONS TO UNDERGROUND PUBLIC UTILITIES
FROM: Scott C. Stiles, City Manager
BY: Engineering Services Department
SUMMARY:
This action will amend Municipal Code Article V of Chapter 8.04 of Title 8, modifying Section 8.04.452 and adding Sections 8.04.453 through 8.04.456 clarifying responsibilities of utility companies, the City and property owners regarding private utility service connections to underground public utilities within a designated time following completion of underground utility projects.
RECOMMENDATION:
1. Conduct first reading and introduce an Ordinance entitled, “AN ORDINANCE OF
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING PALM SPRINGS MUNICIPAL CODE ARTICLE V OF CHAPTER 8.04 OF TITLE 8 SECTION 8.04.452 AND ADDING SECTIONS 8.04.453 THROUGH
8.04.456 CLARIFYING RESPONSIBILITIES AND ENFORCEMENT
MECHANISMS FOR PRIVATE CONNECTIONS TO UNDERGROUND PUBLIC UTILITIES”.
2. Authorize the City Manager to execute all necessary documents.
BACKGROUND:
The City supports undergrounding overhead utility wires and poles. Undergrounding improves public safety by reducing the threat of fire, impacts from earthquakes and high wind events, and reduces utility company maintenance costs. It also improves the aesthetics of the community through the elimination of overhead wires.
City Council Staff Report
January 28, 2026 -- Page 2
Ordinance Amending Article V of Chapter 8.04 PSMC
On November 21, 2024, City Council conducted the first reading of Ordinance No. 2104, amending the Palm Springs Municipal Code Article V of Chapter 8.04 of Title 8 regarding undergrounding of utilities and the formation of new underground utility districts (UUDs) under the Rule 20B Program. The City Council also passed Resolution No. 25261 adopting a policy and procedural document to guide residents in undergrounding overhead electrical and other utilities in their neighborhoods.
The Rule 20 Program was created in the 1970s by the California Public Utilities Commission (CPUC) to assist residents and municipalities with financing the cost of undergrounding their utilities. Rule 20B programs empower private property owners to support the cost of undergrounding projects in their neighborhoods through creation of assessment districts.
Staff have been contacted by various residents that are interested in forming property- owner-funded Utility Undergrounding Assessment Districts (UUDs) to convert overhead utilities to underground and to finance these projects through City revenue bonds secured by a special assessment on their property taxes.
Ordinance No. 2104 adopted January 9, 2025 established a process for owner-funded UUDs to implement undergrounding of public utilities but did not specify the responsibilities of utility companies, the City and the private property owners for private connections to underground public utilities upon completion of the public project. The purpose of this ordinance, Attachment A, is to amend the municipal code to ensure the timely connection of private utility service lines to the public utilities.
STAFF ANALYSIS:
This ordinance is an update to the City’s Municipal Code amending Section 8.04.452 and adding Sections 8.04.453 through 8.04.456 clarifying the responsibilities of utility companies, the City and the property owners to ensure the underground utility project can be successfully completed.
The procedural guidelines adopted by City Council on November 21, 2024 outline five phases in forming a UUD and implementing a utility undergrounding project. The initial phase is designed to allow interested residents to form neighborhood committees and communicate with the City to explore the potential for a utility undergrounding project.
The second and third phases are the Petition and Assessment District Formation phases that will ultimately result in formal voting through the mailing of ballots and the opening and tabulation of ballots at a scheduled Public Hearing. If a majority of the returned ballots (50% +1) are in favor of the project, an Assessment District is formed and the project will advance to design and then construction.
The benefits of utility undergrounding are multiple and include improved aesthetics (removal of unsightly poles and overhead wires), safety (reduced risk of fires caused by exposed electrical lines subject to weather and other natural disasters or impact) and City Council Staff Report
January 28, 2026 -- Page 3
Ordinance Amending Article V of Chapter 8.04 PSMC
reliability (underground utilities are better protected, less costly to maintain and less likely to experience outages).
When construction of the main utility underground infrastructure has been completed, and utility company(ies) complete all wiring, power and cabling work, property owners are notified that it is time to perform their private conversions connecting to the newly undergrounded utilities. The assessment amount only covers work performed in the public right-of-way. Therefore, private conversions require property owners to hire a licensed electrician to connect the property’s existing overhead connection to the underground infrastructure. The current Ordinance in the Municipal Code does not provide an enforcement mechanism to ensure that property owners will perform the conversion within the designated time frame. Until all private connections are made, the overhead poles and utilities cannot be removed. Other California cities that have successfully implemented underground utility projects under the Rule 20B program have built into their municipal codes, an enforcement mechanism. The proposed Ordinance clarifies the responsibilities of all parties and enforcement controls to ensure that private conversions will occur in a timely manner.
ENVIRONMENTAL ASSESSMENT:
The proposed specific plan amendment is not subject to the California Environmental Quality Act (“CEQA”) (Public Resources Code Section 21000 et seq.) pursuant to Section 15060(c)(2) of the State Guidelines, because the amendment relates to organizational or administrative activities of government that will not result in a direct or reasonably foreseeable indirect physical change in the environment, and is not a “project” as that term is defined in Section 15378 of the State CEQA Guidelines. As projects are submitted and reviewed for compliance with this amendment, the City will conduct CEQA review as required by law.
ALIGNMENT WITH STRATEGIC PLANNING:
This item aligns with the City Council Priority of “Community Infrastructure”.
FISCAL IMPACT:
None.
REVIEWED BY:
City Engineer: Joel Montalvo
City Attorney: Jeffrey S. Ballinger
Assistant City Manager: Flinn Fagg
City Manager: Scott Stiles
ATTACHMENTS:
A. Ordinance No. _____