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control over the project and its design, providing a better ability to coordinate the design and construction efforts. Without subsidizing this effort, each individual property owner would be responsible for the cost of work on their property, obtaining design engineered plans by a licensed electrical engineer, overseeing the construction and permitting related to their property, and coordinating their contractor's construction schedule with PG&E, Comcast and AT&T. The difficulty becomes readily apparent when you increase the coordination efforts from four entities to 30 or 40 by potentially adding each individual property owner and their engineer and contractor. On the First Street Utility District, none of the affected property owners opted to oversee this work and were grateful to have the City oversee the design and construction activities. In addition, having all of the design and construction under one designer and contractor will promote cost efficiencies for the design and construction effort and shorten the project schedule. After presenting the impacts to the residents of including undergrounding of the overhead utilities to the project and the associated impacts to the project schedule and the potential for residents incurring costs beyond the capped amount of $8000 per property owner, the majority of residents in attendance at the public meeting were still in support of undergrounding the overhead utilities. Underground Utility District (UUD) Rule 20A Funds For a number of years the City has had an active utility conversion program to underground overhead utilities on major streets. Moving overhead utility lines underground improves aesthetics, increases property values, provides more reliable utility service and eliminates unsightly tree trimming for overhead wires. For the past 25 years, the California Public Utilities Commission (CPUC) has required PG&E and Pacific Bell (AT&T) to set aside an annual conversion allocation, which is apportioned to cities and counties in their service areas based upon the number of electric meters for overhead electrical services within the city's boundary. These funds are commonly referred to as Rule 20A funds. The most recent completed project which utilized Rule 20A funds was for First Street between Neal Street and Stanley Boulevard, and Kottinger Drive between First and Second Streets. The City has expended all of its allocation of Rule 20A funds on the First Street conversion project. It currently receives an annual allocation of approximately $265,000 per year for future projects. It would take approximately 12 years to fund the undergrounding of Stanley Boulevard at its present allocation rate of $265,000 per year. City staff had previously developed a list for future use of Rule 20A funds. The list is composed of projects for which the City has collected partial funding (development fees). 1. Division Street -- Del Valle Parkway to Pleasanton Avenue 2. Rose Avenue -- Pleasanton Avenue to Fair Street Page 5 of 7