REPORT TO THE CITY COUNCIL December 4, 2014 FROM: SCOTT L. MOZIER, PE, Director Public Works Department THROUGH: ROBERT N. ANDERSEN, PE, Assistant Director Public Works Department, Capital Management Division BY: JIM POLSGROVE, Supervising Engineering Technician Public Works Department, Capital Management Division SUBJECT ..Title RESOLUTION - Rescinding Resolution 2006-472 and removing UUD FRE-87 from the current Three Year Plan (Council District 3) ..Body RECOMMENDATION Staff recommends City Council adopt the attached Resolution rescinding Resolution 2006-472. EXECUTIVE SUMMARY Rescinding Resolution 2006-472 will remove a beautification district, as designated by Pacific Gas and Electric (PG&E), from the current Three-Year Plan due to shifts in priority and funding. It is FRE-87 located on Orange Avenue between North Avenue and State Route 99. The district is being rescinded due to shifts in available funds to construct the City's portion of the underground district. This action will unencumber Rule 20A funds so that they will be available for areas with higher priority and available funding. BACKGROUND The California Public Utilities Commission (CPUC) Rule 20A requires that PG&E allocate funds for the underground placement of existing overhead electrical facilities. These funds accrue to PG&E from all rate payers as part of their monthly bill, and are strictly reserved to underground overhead facilities in approved Underground Utility Districts (UUDs). Specific UUDs are formed by City Council action at noticed public hearings using criteria established by CPUC Rule 20A: 1. Such undergrounding will avoid or eliminate an unusually heavy concentration of overhead electric facilities; 2. The street or road or right-of-way is extensively used by the general public and carries a heavy volume of pedestrian or vehicular traffic; 3. The street or road or right-of-way adjoins or passes through a civic area or public recreation area or an area of unusual scenic interest to the general public; 4. The street or 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. Underground installation of PG&E overhead electrical facilities are funded by funds set aside pursuant to the CPUC Rule 20A. The Rule 20A specifically identifies funding for undergrounding existing overhead utilities only. The other utility companies provide the funding to convert their existing overhead facilities to underground. The formation of the UUD requires utility companies to convert their existing overhead facilities to underground service. The formation of the UUD also requires affected property owners to modify their existing overhead services to accept utility service from the underground facilities. Rescinding Resolution 2006-472 will remove a beautification district, as designated by PG&E, from the current Three-Year Plan due to shifts in priority and funding. It is FRE-87, located on Orange Avenue between North Avenue and State Route 99. The UUD is being rescinded due to shifts in available funds to construct the City's portion of the underground district. This action will unencumber Rule 20A funds so that they will be available for areas with higher priority and available funding. This Resolution has been approved as to form by the City Attorney's Office. ENVIRONMENTAL FINDINGS By the definition provided in the California Environmental Quality Act Guidelines Section 15378 this item does not qualify as a "project" and is therefore exempt from the California Environmental Quality Act requirements. LOCAL PREFERENCE Local preference was not implemented because rescinding a resolution does not include a bid or an award of a construction or services contract. FISCAL IMPACT There will be no impact to the City's General Fund. Attachments: Resolution No. 2006-472 (rescinding) Resolution