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The streets listed above have been recently reconstructed and staff does not anticipate reconstruction of these streets for another 15-20 years and therefore they will not be immediate candidates for undergrounding of overhead utilities. Underground District Rule 20B Program Since the City's Rule 20A allocation balance has been depleted, new undergrounding projects must be funded from a different source. Undergrounding the overhead utilities for the subject project can be constructed under Rule 206 criteria. Under Rule 20B, the applicant (City/Property Owner) is responsible for the design and installation of the underground conduit, substructures, transformer pads and splice boxes. PG&E would then be responsible for the installation of conductor wires, transformers, energizing the electrical system and the removal of power poles within the public right-of-way. The City's share of these costs are estimated to be between 60-80% of the $3 million construction cost (approximately $2.4 million). Rule 206 criteria states that the applicant (City) requesting the undergrounding of overhead facilities pays in advance, anon-refundable sum equal to the estimated cost for PG&E's design review and approval costs for undergrounding the overhead facilities. Once the system has been installed and accepted by the utility companies, they would take responsibility for maintaining the utilities. Once the conversion takes place, PG&E would subsequently remove the existing power poles and overhead utility lines within the private and public right-of-way. In order to achieve the undergrounding of utilities under Rule 20B, an Underground Utility District must be formed. Such a formation requires a public hearing, and a formal resolution to underground the overhead utilities, specifying the exact limits of the district, and stating the public necessity for this conversion. Implementing such a district requires cooperation and coordination among residential and commercial property owners, and all utility companies including PG&E, Comcast, AT&T and the City of Pleasanton to complete the improvements. In many cases in California where underground utility districts fall under Rule 20B, property owners contribute a share of the undergrounding cost based on the benefit to their property; however, staff is recommending that the City provide funds for the undergrounding in the City's right-of-way, and also subsidize property owners (up to $8,000 per parcel) for that portion of undergrounding that must occur on private property. Stanley Boulevard falls within the Downtown Specific Plan, and previous undergrounding of overhead utilities in this area was completed using Rule 20A funds, with the City contributing funding toward undergrounding the private property portion of the work. Rule 20A allows the local municipality to fund trenching of the utilities up to 100 feet into the private property and up to $1,500 per panel box conversion. The combined value was estimated at $6,500 for trenching and $1,500 for the panel box conversion, with a sum total valued at $8,000. The proposed Underground Utility District would underground the existing overhead utility lines on Stanley Boulevard between Santa Rita Road and First Street. This Page 6 of 7