Council accepts utilities undergrounding status report and approves new project list

City staff presented the semiannual status report on the utilities undergrounding program, describing funding sources (CPUC Rule 20A funds managed by SDG&E and a city surcharge fund), a project backlog, an increase in surcharge revenue and a proposed list of new projects to move into design and construction.

Deputy Director Hassan Youssef and Utilities Undergrounding Program Manager Jim Nabang said the program has converted more than 400 miles of overhead utilities to date and that increased annual surcharge revenue (budgeted at about $68 million for FY2017) would allow the city to accelerate project delivery. Staff proposed initiating 29 new surcharge projects, increasing future commitments by roughly $207 million to cover approximately 51 miles of overhead utility conversion; staff also described a master‑plan update and a five‑year implementation plan intended to improve coordination with other right‑of‑way work.

Councilmembers focused on project coordination with SDG&E and on using available reserves to deploy more projects sooner. Staff said SDG&E is working more closely with the city and that six new staff positions were added to support planning, inspection and construction management. Councilmember Sherman moved to accept the report and approve the project list; the motion was seconded and passed unanimously.