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THE CITY OF n CITY COUNCIL AGENDA REPORT PLEA al "Ni"A T0N April 3, 2012 Community Development Engineering Division TITLE: HOLD A PUBLIC HEARING AND ADOPT RESOLUTION FOR THE FORMATION OF A RULE 20A UNDERGROUND UTILITY DISTRICT ALONG STANLEY BOULEVARD, BETWEEN SANTA RITA ROAD AND FIRST STREET SUMMARY Staff is proposing that Rule 20A funds be used as a potential source of funding to underground the electrical utilities on Stanley Boulevard between Santa Rita Road and First Street. In order to use Rule 20A funds a public hearing must be held to receive public testimony, and if deemed appropriate, a resolution must be adopted to form an undergrounding District. Notwithstanding the formation of a District, PG&E has stated that the current Rule 20A work queue is four years, so using these funds for the project means the work will not occur until 2016. RECOMMENDATION 1. Conduct a public hearing and receive public testimony regarding the undergrounding of overhead utilities on Stanley Boulevard. 2. At the close of the public hearing, if deemed appropriate, adopt a resolution finding that the public necessity, health, safety or welfare requires the removal of the poles, overhead wires and associated overhead structures, and the undergrounding of wires and facilities for supplying electric communication, or similar or associated services is required; and establishing the formation of the Underground Utility District 12-01, Stanley Boulevard. 3. Approve using Rule 20A funds for "100 Foot Rule" and panel conversions for residential and commercial units. 4. Direct the City Clerk to mail copies of the resolution to all affected property owners and utilities companies. FINANCIAL STATEMENT The formation of the Rule 20A Underground Utility District at this time will allow us the option to use Rule 20A monies to fund construction when those funds become available. The final funding source(s) for construction will be identified at the time Council awards a construction contract. The underground utility district improvements, once accepted by the public utility companies, will be operated and maintained by the respective utility companies and will have no financial impact on City maintenance and operation costs.