Cities Index.
Presentation - est. 10 minutes

San Jose City Council
September 19, 2023

Document
Presentation - est. 10 minutes
Meeting
September 19, 2023
Body
San Jose City Council
Original file
729 KB
Text extracted from the city's file for reading and search. Open the original on legistar.granicus.com. That file is the official record.

Ru le 2 0
U ti l i ty U nderground
Program
Item 3.5 - September 19, 2023
RULE 2 0 UNDERGROUNDING
Matt L oesch, Di rector o f Pu b lic Wo rks
Ka th e rin e Bro wn , In te rim Assista n t Dire c to r o f Pu b lic Wo rks J. Guevara, Deputy Di rector of Publ i c Works
1 What is Undergrounding? 1
2 3
4 5
September 19, 2023
RULE 2 0 UTILITY UNDERGROUND PROGRAM
AGENDA
R ule 20 A B Cs
R ul e 20B A nnual Workplan
Why Now? - The Opportunity
R ecommendati on
2 What i s U ndergroundi ng?
Be fore
Aft e r
3 Typ e Who Pays Who Constructs
20A PG&E PG&E
with City Council legislating locations to secure the
work credit
20B Private Developers
In-Lieu Undergrounding Fee at $605 per
linear foot of property frontage
City of San José
20C Project Developer
(public or private)
Developer and PG&E
coordinate project -specific implementation that
does not meet 20A or 20B criteria
Rule 20 ABCs
4 $9 million Rule 20B fund balance in 2022
$1 mi l l i on proj ected revenue i n the next
f i ve years f rom devel oper contri buti ons to
in -l i eu f ees
M cK ee/Jose Fi gueres R ul e 20B Proj ect i s
i n desi gn, expected to start July 2024
$4.1 mi lli on f und balance proj ected f or
FY 2027- 2028
Rule 2 0 B Workp lan
5 California Public Utilities Commission (CPUC) is
sunsetting the R ule 20A program by June 2025.

CPU C i s concerned about oversi ght, ti me to
compl ete, and equi ty i n uti l i ty under gr oundi ng.

City’s c u rre n t Ru le 20A c re d it is $38 millio n b u t o n ly $17 mi l l i on i s l egi slated and secur ed bef or e sunset.

Why Now?
6 If we don't act now, we leave millions on the table
when ratepayers have pai d i nto the PG& E 20A
pool f or decades.

San José can legislate f or the f ull $59M R ule 20A
U nder gr oundi ng work cr edi ts bef or e they ex pi r e and tar get addi ti onal f unds.
• $21 millio n is u n le g isla te d to ma ximize fu ll $38 millio n wo rk c re d it
• +$21 million ad d ition al un allocate d fun d s from o th e r ju risd ic tio n s c a n b e p u rsu e d
The Opportunity
7 $ 5 9 m illion Op p ortu n ity
Legislated 17
Unlegislated 21
Unallocated 21
0 10
20 30
40 50
60 70
Rule 20A ($ in millions)
Legislated Unlegislated Unallocated
8 Add combi ned equi ty scores fro m th e
Equity A tlas to strengthen R ul e 20A and
2 0 B c rite ria
Di rect staf f to ex ecute new analysi s,
uti l i ty coordi nati on, publ i c outreach f or
new di stri cts by March 2024
Ci ty Counci l can l egi slate bef ore June
2025
R ecommendation
https: //gi s. sanj oseca.gov/maps/equi tyatlas/
9 Ru le 20
Underground
Utility Program
September 19, 2023 – Ite m 3 .5
RULE 2 0 UNDERGROUNDING
10 Matt L oesch, Di rector of Publi c Works
Ka th e rin e Bro wn , In te rim Assista n t Dire c to r o f Pu b lic Wo rks J. Guevara, Deputy Di rector of Publ i c Works

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