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If constructed, the Underground Utility District improvements, once accepted by the public utility companies, will be operated and maintained by the respective utilities and will have no financial impact on City maintenance and operations costs. BACKGROUND The design package for the Old Stanley Boulevard Improvement Project, CIP No. 055022, was completed in 2008. The project includes construction of a new roadway section; concrete curbs, gutters, and sidewalks; landscaping; decorative street lighting; and sewer and storm drain improvements. As currently designed, the project does not include undergrounding of the overhead utilities. At the March 17, 2009 meeting, City Council directed staff to solicit engineering design proposals from consulting firms to produce construction plans and associated documents to underground the overhead utilities and inform the City Council of the design cost. As part of this effort, Undergrounding Rule 20B requires that PG &E complete the electrical design for the Underground Utility District. As a result, staff anticipates that its design consultant, Bellecci Associates, Inc. will coordinate with and incorporate PG &E's electrical design into their Underground Utility District design documents, to ensure a complete project. PG &E's design, coordination, plan review and project approval costs are estimated to be $80,000. Should implementation of the undergrounding be approved, Phase 1 construction would be performed by a licensed electrical contractor and would include the installation of electrical, telephone, and cable TV wires into underground conduits. The location of conduit feeds from the public roadway to the adjacent private buildings would be coordinated with the adjacent property owners and would ultimately become the responsibility of the private property owners. The project requires approval from the respective utility companies for those portions of the project that are public, and approval from the City's Building Department for the onsite private improvements in compliance with local building and electrical codes. Cooperative agreements and rights of -entry need to be obtained from all affected property owners to investigate existing conditions and prepare design plans for the utility conversions. Cooperative agreements to perform work on behalf of the private property owners on private property are also needed. Upon completion of the electrical and cable system, PG &E would then energize the underground electrical system and remove the existing power poles. Once the power poles have been removed, the City would then award a separate contract (Phase 11) for the roadway improvement project and the remainder of the work. Since the completion of the underground utility work would be dependent upon PG &E and its crews to complete, staff divided the work into two separate projects to avoid any potential delay claims from the Phase 11 Contractor that could arise should the utility project incur delays. Page 2 of 3