Item Coversheet

Agenda Item No: 10.






AGENDA REPORT

DATE:

August 4, 2020 

TO:

Mayor and City Council

FROM:

Stefan T. Chatwin, City Manager


SUBJECT:Heart of Fairfield – Second Reading, and Adoption of Ordinance 2020–12 of the City Council of the City of Fairfield Creating the Webster and Empire Street Underground Utility District

RECOMMENDED ACTION 
Provide second reading and adopt Ordinance 2020–12.
STATEMENT OF ISSUE 
Utility companies have allocated funding, commonly known as Rule 20A funds, to help pay for the undergrounding of the existing poles, overhead wires and associated structures within areas of the City designated as underground utility districts if certain conditions are met. As of May 13, 2020, there is $6,182,504 of Rule 20A funds designated for the City. Staff recommends forming the Webster and Empire Street Underground Utility District to utilize these funds to underground a portion of the existing overhead lines within the Heart of Fairfield Plan area. Conducting a public hearing is a required step to create an underground utility district.
DISCUSSION
The procedure for the creation of underground utility districts was established by Ordinance No. 68-6, as amended by Ordinance No. 68-8, and comprises Section 7.4 through 7.18 of the Fairfield Municipal Code. A required initial step to create an underground utility district is the holding of a public hearing for the City Council to decide whether the public necessity, health, safety, or welfare requires the removal of poles, overhead wires and associated overhead structures and the underground installation of wires and facilities for supplying electric, communication, or similar associated service.

Staff recommends creating the Webster and Empire Street Underground Utility District, which includes the right-of-way and portions of the adjacent properties along Webster Street from Kentucky to Delaware Streets and Empire Street from Great Jones Street to Union Avenue. This area was selected to be incorporated into an underground utility district for the following reasons:

1. The Council adopted Heart of Fairfield Plan identified several strategies to ensure the downtown area is adequately served by safe and reliable dry utilities. The conversion from overhead to underground utilities makes the utilities less susceptible to outages during high winds and thunderstorms and consumes less property space. Additionally, the Heart of Fairfield Plan identifies this work as an opportunity to free street frontage from visual clutter and a general unattractive appearance.

2. Webster and Empire Street are major collectors in the City of Fairfield and their rights-of-way are extensively used by the public and carry a heavy volume of vehicular and pedestrian traffic.

3. The removal of the power poles and relocation of the overhead facilities to underground facilities will precede potential future development and/or improvements on Webster and Empire Street that would require these relocations.

The undergrounding project, subsequent to District formation, is a collaborative effort between the City, Pacific Gas and Electric Company (PG&E), AT&T, and Comcast. As the owner of the existing electrical and telecommunication facilities, each utility company will furnish their specific design information and control the timing on the progress of the work. City staff will have the composite drawings prepared showing the necessary facility improvements, removals, and the configuration of the joint trench. City staff will solicit bids to retain a contractor for the undergrounding project, who will work together with the utility companies to complete the work. Design work for this undergrounding project is anticipated to commence this summer.

FINANCIAL IMPACT
The undergrounding project is funded utilizing Rule 20A funds that are designated for the City of Fairfield by the utility companies for the express purpose of funding the undergrounding of overhead facilities within the City. As of May 13, 2020, there is $6,182,504 designated for the City. Rule 20A funds are intended to facilitate the removal of all utility poles and other overhead facilities, for the placement of the utilities in underground conduits, and for the installation of customer service lines. Staff anticipates there will be no cost to the property owners, residents, or tenants located within the boundary of the utility District.

Any expenses that are not eligible for Rule 20A reimbursement (i.e. project management, permitting, etc.) are budgeted in Streets Capital Projects Fund (Fund 252, Division and Responsibility Code, 99518, $400,000.00) utilizing construction license tax.
CITY COUNCIL WORKPLAN 
Community Safety
 Community Infrastructure Quality of Life
Financial and Operational Sustainability Economic Development Travis Air Force Base

City Council Goal this item supports: 
Economic Development
 

Priority Project:
#5B.1 Heart of Fairfield Plan
Project:
One-time item not recommended for including in the Workplan
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION 
On June 5, 2020, a notice of the hearing was mailed to all affected property owners. A majority of residential and commercial properties will require the conversion of electric meters from an overhead service to an underground service. Rule 20A funds will be used for the underground conversion of each individual electric service on private property. The City will coordinate the work with all property owners. The first reading of this ordinance was approved on July 7, 2020.
ALTERNATIVE ACTION 
The City Council could choose not to adopt the proposed ordinance. However, this is not recommended because the City would lose its ability to utilize the Rule 20A funding.
STAFF CONTACT 
Ryan Panganiban, Assistant Public Works Director/City Engineer
(707) 428-7017
rpanganiban@fairfield.ca.gov

COORDINATED WITH 
City Attorney's Office
ATTACHMENTS:
Description
Proposed Ordinance
Webster and Empire Street Underground Utility District Boundary Map
REVIEWERS:
ReviewerActionDate
Panganiban, RyanApproved7/20/2020 - 8:38 PM
Kaushal, PaulApproved7/20/2020 - 9:26 PM
Ballard, KellyApproved7/21/2020 - 1:06 PM
Ballard, KellyApproved7/29/2020 - 12:31 PM