HomeMy WebLinkAboutPW Freitas Parkway Underground Utility District____________________________________________________________________________________
FOR CITY CLERK ONLY
File No.: 6-57
Council Meeting: 07/15/2019
Disposition: Resolution 14710
Agenda Item No: 6.d
Meeting Date: July 15, 2019
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Public Works
Prepared by: Bill Guerin,
Director of Public Works
City Manager Approval: ________
File No.: 01.18.31
TOPIC: FREITAS PARKWAY UNDERGROUNDING DISTRICT
SUBJECT: ADOPT A RESOLUTION TO FORM A UTILITY UNDERGROUNDING
DISTRICT ON MANUAL T. FREITAS PARKWAY BETWEEN U.S. HIGHWAY
101 AND LAS GALLINAS AVENUE.
RECOMMENDATION:
Hold a public hearing and adopt a resolution to establish an underground utility district on
Manual T. Freitas Parkway between U.S. Highway 101 and Las Gallinas Avenue.
BACKGROUND:
In 1967, the California Public Utilities Commission (CPUC) established tariff rules for what is
now commonly referred to as the “Rule 20A Utility Undergrounding Program” (Rule 20A). This
statewide program was created to eliminate the concentration of overhead electric and
telecommunication lines and wooden utility poles along major arterial streets, public areas of
scenic value, and the downtown or civic center core.
Rule 20A allows cities and counties to receive an annual allocation of monetary credits that can
accumulate for the eventual expenditure and benefit of undergrounding unattractive overhead
wires in their community. The program is financed by the rate payers through the utilities. Each
year, PG&E sets aside a specified number of work credits from rate payers within each City to
underground overhead utility lines; this program is called a Rule 20A project. To initiate an
undergrounding project, a jurisdiction is required to make a finding of necessity, health, safety,
and welfare that requires the removal and undergrounding of overhead utilities within a specified
area, known as an underground utility district. In addition, future overhead utility facilities within
this district would not be allowed. Some exceptions exist to these conditions, such as street
light cabling.
On June 3, 2019, PG&E notified the Department of Public Works via email that a portion of San
Rafael’s current Rule 20A allocation will be redistributed to the City of Live Oak based on CPUC
Resolution E-4971 as Live Oak is actively working on their own Rule 20A undergrounding
project. This CPUC resolution orders PG&E to reallocate $554,000 of statewide unused credits
from communities that have not participated in the Rule 20A program in the past eight years, of
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
which San Rafael is one. As of June 3, 2019, San Rafael’s current Rule 20 A allocation is
$5,106,823. Pursuant to CPUC Resolution E-4971, PG&E proposes to reallocate approximately
$17,363 (0.0034*$5,106,823) of this allocation to the City of Live Oak. To avoid this
reallocation, San Rafael may adopt a resolution establishing an underground utility district prior
to July 24, 2019, which will allocate a portion of the City’s current Rule 20A credits.
San Rafael Municipal Code (SRMC) Chapter 11.28 authorizes the City Council to establish an
underground utility district by resolution, following notice to affected property owners and a
public hearing.
Recent undergrounding projects performed in San Rafael occurred in 2002 along Francisco
Boulevard West, in conjunction with a U.S. Highway 101 project, as well as in 2008 on the west
end of Fourth Street, which also included undergrounding overhead utilities.
ANALYSIS:
Since 2008, the City has accumulated work credits in preparation for undergrounding overhead
lines on Manual T. Freitas Parkway from U.S. Highway 101 to Monticello Road, and has worked
with PG&E Rule 20A representatives regarding this project over the last several years. PG&E
recently estimated the cost of this undergrounding to be $11 million.
San Rafael’s current annual allocation to the Rule 20A program is approximately $227,000. In
order to underground the entire length of Manual T Freitas from U.S. Highway 101 to Monticello
Road, the City has a current shortfall of $5.9 million ($11 million – $5.2 million). Based on our
current allocation rate, it will take approximately 26 years to accumulate sufficient Rule 20A
funds to underground the entire segment of Manual T Freitas Parkway, ignoring inflation and
changes in construction cost.
While separating the undergrounding project into phases is not preferable, it is important to
move forward with establishing an underground utility district to avoid losing any of our current
Rule 20A allocation and to demonstrate San Rafael’s commitment to this program. Therefore,
staff recommends adopting the attached resolution to establish an underground utility district on
Manual T. Freitas Parkway from U.S. Highway 101 to Las Gallinas Avenue, as shown
graphically in Exhibit A to the resolution. PG&E estimates the cost of this first phase
undergrounding to be $4.6 million.
SRMC Section 11.28.070 requires affected property owners to be noticed and given an
opportunity to be heard at a public hearing prior to establishment of an underground utility
district. In this case, adjacent properties would be unaffected because they are serviced by
utility lines from side streets. Therefore, although notice of the City Council’s public hearing was
published in the Marin Independent Journal (Attachment 2), mailed notices to property owners
was not required prior to the City Council’s action. Written notification to property owners and
utilities is required after the City Council establishes a district. Public Works met with
representatives of PG&E, Comcast, and AT&T in 2018 to walk the full length of Manual T.
Freitas Parkway in anticipation of undergrounding the overhead lines within the next three
years. At that time, no objections were raised by these utilities about the undergrounding.
Public Works staff has contacted PG&E, who is anticipated to be the project lead for this
undergrounding project to determine timeline for the work. PG&E is currently working on
system hardening and resiliency against wildfire threats. Pursuing an underground utility district
at this time will require PG&E and associated utilities to develop construction plans and
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
coordinate the construction project. PG&E staff estimates that work on this project, if approved,
will not begin for another five to seven years as this project is primarily for beautification
purposes. SRMC Section 11.28.030 requires that a fixed time be detailed in the resolution for
undergrounding. Based on PG&E’s estimated start time of five to seven years, staff
recommends requiring completion within 10 years of establishing the district.
FISCAL IMPACT:
No fiscal impact is associated with this item, especially since there are no service connections
within the proposed underground utility district for which the City may be financially liable.
OPTIONS:
Council may consider the following actions:
1. Adopt a resolution to establish an underground district on Manual T. Freitas Parkway
from U.S. Highway 101 to Las Gallinas Avenue as shown in Exhibit A to the resolution.
This option obligates the use of the City of San Rafael’s Rule 20A funds and will require
utilities in this district to underground their overhead services.
2. The City Council may elect not to establish an underground utility district on this stretch
of Manual T. Freitas Parkway. Consequently, approximately $17,363 of the City’s
current Rule 20A allocation will be redistributed based on CPUC Resolution E-4971.
RECOMMENDED ACTION:
Hold a public hearing and adopt a resolution to establish an underground utility district on
Manual T. Freitas Parkway between U.S. Highway 101 and Las Gallinas Avenue.
ATTAC HMENT:
1. Resolution with Exhibit A – Map of Manual T. Freitas Parkway Underground Utility
District Boundaries
2. Notice of Public Hearing
RESOLUTION NO. 14710
RESOLUTION OF THE SAN RAFAEL CITY COUNCIL TO FORM A UTILITY
UNDERGROUNDING DISTRICT ON MANUAL T. FREITAS PARKWAY BETWEEN
U.S. HIGHWAY 101 AND LAS GALLINAS AVENUE
WHEREAS, Chapter 11.28 of the San Rafael Municipal Code establishes a
procedure for the creation of underground utility districts and requires the San Rafael
City Council to hold a public hearing to ascertain whether public necessity, health,
safety, or welfare requires the removal of poles, overhead wires and associated
overhead structures and the undergrounding installation of wires and facilities for
supplying electric, communication or similar or associated services in any such district;
and
WHEREAS, staff has recommended that such an underground utility district be
formed within the area of the City of San Rafael described as follows: The area
contained within the public right of way of Manual T. Freitas Parkway from U.S.
Highway 101 to Las Gallinas Avenue, as shown on the map attached hereto as “Exhibit
A” entitled “Proposed Boundary for Rule 20A District, Manual T Freitas Parkway,
Highway 101 to Las Gallinas Ave”, dated June 2019; and
WHEREAS, no properties adjacent to the area delineated on Exhibit A are
serviced by overhead lines, therefore no separate notification to property owners is
required as specified in Section 11.28.030 of the San Rafael Municipal Code; and
WHEREAS, based on previous meetings with San Rafael staff, affected utilities
have no objection to undergrounding overhead lines within the proposed district as
shown on Exhibit A; and
WHEREAS, at its regular meeting on July 15, 2019, the City Council held a
public hearing to receive and consider public comments regarding the establishment of
the proposed underground utility district;
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of San
Rafael as follows:
1. The City Council finds that the public necessity, health, safety, or welfare
requires the removal of poles, overhead wires and associated overhead structures and
the undergrounding installation of wires and facilities for supplying electric,
communication or similar or associated services in the area depicted on that certain
map entitled “Proposed Boundary for Rule 20A District, Manual T Freitas Parkway,
Highway 101 to Las Gallinas Ave”, dated June 2019, attached hereto as Exhibit A and
on file in the offices of the Department of Public Works City of San Rafael.
2. Pursuant to Chapter 11.28 of the San Rafael Municipal Code, the City
Council hereby declares the area shown in Exhibit A to be an underground utility district
and orders the removal of poles, overhead wires and associated overhead structures
and the undergrounding installation of wires and facilities for supplying electric,
communication or similar or associated services in that district within ten years following
the adoption of this Resolution.
3. The City Clerk is directed to give all notices required by Chapter 11.28 of
the San Rafael Municipal Code.
I, LINDSAY LARA, Clerk of the City of San Rafael, hereby certify that the
foregoing resolution was duly and regularly introduced and adopted at a regular
meeting of the Council of said City on the 15th day of July 2019, by the following vote, to
wit:
AYES: COUNCILMEMBERS: Bushey, Colin, Gamblin, McCullough & Mayor Phillips
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
LINDSAY LARA, City Clerk
File No. 01.18.52
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EXHIBIT A
PROPOSED BOUNDARY FOR RULE 20A DISTRICT
MANUAL T. FREITAS PARKWAY
HIGHWAY 101 TO LAS GALLINAS AVENUE
□ I I ! Proposed Boundary for Manuel T Frietas Rule 20A
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DEPARTMENT OF PUBLIC WORKS
CITY OF SAN RAFAEL
NOTICE OF PUBLIC HEARING
The City Council of the City of San Rafael will hold a public hearing:
PURPOSE: Public Hearing to consider a Resolution to form an undergrounding
district on Manual T. Freitas Parkway from State Highway 101 to Las
Gallinas Avenue.
Pursuant with Chapter 11.28 of the San Rafael Municipal Code, the
Resolution would establish an undergrounding district on Manual
T Freitas Parkway State Highway 101 to Las Gallinas Avenue
The area encompasses only the roadway and no adjacent properties
and is more specifically described in Exhibit “A” on file with the
Department of Public Works and is also available from the City
website, and posted on-site.
DATE/TIME/PLACE: Monday, July 15, 2019 at 7:00 PM City Council Chambers, City Hall,
1400 Fifth Avenue, San Rafael.
WHAT WILL HAPPEN: You may comment on the proposed undergrounding district. The
City Council will consider all public testimony and will then decide
whether to approve the resolution to establish the undergrounding
district along Manual T Freitas Parkway from State Highway 101 to
Las Gallinas Avenue.
IF YOU CANNOT ATTEND: You may send a letter to Lindsay Lara, City Clerk, City of San Rafael,
P.O. Box 151560, San Rafael, CA 94915-1560. You may also hand
deliver a letter prior to the meeting.
FOR MORE INFORMATION: You may contact Kevin McGowan, Assistant Public Works
Director/City Engineer at (415) 485-3389, Department of Public
Works, 111 Morphew Street, San Rafael, CA
San Rafael City Council
Lindsay Lara, City Clerk