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File Number: 12 -250 <br />• Overall community aesthetic benefits of a conversion project <br />• Cost of a project <br />The California Public Utilities Commission (PUC) directs Pacific Gas and Electric Company <br />(PG &E) to set aside funds for electrical undergrounding projects. These funds are known as <br />Rule 20A funds and included an escalation factor designed to have the Rule 20A work credit <br />allocations keep pace with inflation and maintain local agencies' Rule 20A buying power. <br />However, in 2011, PG &E obtained PUC's approval to end the escalation of these allocations, <br />which resulted in reduced allocations to cities. Prior to the PUC's approval, the funds were <br />allocated to local jurisdictions to perform electrical undergrounding work (Rule 20A Work only) <br />at an average of $600,000 /year. Based on the said PUC approval, the current reduced City's <br />allocation of PG &E's Rule 20A funds has been estimated to average approximately <br />$310,000 /year. To obtain adequate funds to construct an electrical undergrounding project, <br />the City is allowed to use future allocations up to five (5) years into the future. Without <br />amendments to the current five (5) year borrow ahead clause, the current lower rate of <br />accumulation of funds will certainly impact the City's ability to timely deliver its projects. As <br />each project moves into the implementation phase, it will be analyzed for funds sufficiency. <br />When there are insufficient Rule 20A funds, or when a project is ineligible for Rule 20A funds, <br />other funding sources can be used for PG &E undergrounding work. <br />City, Comcast, and AT &T facilities are not funded through the Rule 20A process. The cost for <br />placing these facilities underground falls either to the facility owner or, in some cases, to a <br />developer. <br />Based on the above criteria and the need to develop utility undergrounding priority areas, staff <br />recommends that the following areas be established as the priority areas for the 2012 -2013 <br />Five -Year Project List for Underground Utility District Conversion Projects: <br />1. East 14th Street Phase 2 (150th Avenue to Thornton Street /Maud Avenue) <br />2. Merced Street (Marina Boulevard to Fairway Drive) <br />3. Future Eden Road, which consists of the existing Eden Road right -of -way plus the <br />extension of Business Center Drive north of Davis Street to the existing Eden Road <br />4. Marina Boulevard (Doolittle Drive to Monarch Bay Drive) <br />5. MacArthur Boulevard (Superior Avenue to Joaquin Avenue) <br />The following lists the rationale for including each project: <br />Project Rationale <br />East 14th Street Phase 2 Incentive to encourage development along corridor <br />Merced Street Anticipated road widening and major new development (Kaiser <br />Hospital Campus) <br />Eden Road Anticipated significant street improvement <br />Marina Boulevard Anticipated development of the Marina Area <br />MacArthur Boulevard Anticipated significant street improvement <br />Undergrounding of utilities on East 14th Street from 150th Avenue to Thornton Street and <br />Maud Avenue is already a designated district and project. This project is likely to require all of <br />the existing and advance PG &E Rule 20A funds. Utility undergrounding of Merced Street is <br />currently being undertaken by Kaiser Permanente. The remaining projects will either be paid <br />City of San Leandro Page 2 Printed on 612612012 <br />