COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Brett Fulgoni, Director of Public Works
DATE: July 1, 2025
SUBJECT: Adoption of Resolution Granting to PG&E a Portion of City Property Located on South McClelland Street to Accommodate the Necessary Infrastructure for the Rule 20A Program
Description:
The City Council will consider granting an easement to PG&E on City property to accommodate the Rule 20A Program.
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
RECOMMENDATION:
1. Adopt a Resolution granting to PG&E a portion of City Property located on South McClelland Street to accommodate the necessary infrastructure for the Rule 20A Program; and
2. Authorize the Mayor to execute all documents necessary to complete the grant of easement.
BACKGROUND:
Since 1967, the undergrounding of electric utilities in California has been performed under California Public Utility Commission (CPUC) Rule 20. Under Part A of Rule 20, (Rule 20A) undergrounding is paid for and performed by the local electric utility, Pac ific Gas and Electric (PG&E). Through the Rule 20A program, PG&E annually sets aside funds from electric utility ratepayers, in the form of work credits, to financing the undergrounding of overhead utilities.
Criteria used to identify qualifying areas for the Rule 20A program include improvements that “benefit a civic or a public recreation area.” The City Civic Center, generally bounded by Broadway (State Route 135) to the west, Cook Street to the north, Miller Street to the east, and Jones Street to t he south, meets this criterion. The area includes City government offices, Elks Field, and the Abel Maldonado Youth Center.
2 DISCUSSION:
To accommodate the Rule 20A Program, easements from both the City and private property owners are necessary. City staff, in coordination with PG&E, has reached out to property owners to explain the program’s benefits and help secure the necessary easements. Private property easements do not require Council action and may be recorded once agreed upon.
One private property owner adjacent to the Recreation and Parks Department offices did not support the Rule 20A Program. Consequently, PG&E and City staff identified an alternative location on City owned property. The City's Recreation and Parks Director was consulted and expressed no opposition to the proposed location.
To enhance the aesthetics of the project, staff propose installing transformer equipment in underground vaults. PG&E is aware of the request and will attempt to comply, if feasible.
The easement requested by PG&E is necessary to support construction and accommodate the required infrastructure for converting overhead utilities to underground.
Additionally, the grant of easement provides PG&E the right to periodically construct, reconstruct, install, inspect, maintain, replace, remove, and operate facilities within the easement area.
Alternative(s)
The City Council may choose to deny the request to grant PG&E the necessary easement. However, this alternative is not recommended, as denial would pro hibit implementation of the Rule 20A Program and result in the loss of proposed project funding.
Fiscal Considerations
The grant of easement for the Rule 20A Program will result in no significant cost to the City other than staff time required to coordinate City and private easements.
Impact to the Community
The community will benefit from the aesthetic enhancement to the Civic Center through the elimination of overhead utilities and conversion to underground infrastructure.
ATTACHMENT(S)
A. Resolution
B. Grant Deed Legal
C. Grant Deed Exhibit