Construction of a new public library serving North Beach will move forward after completion of an agreement reached between The City and PG&E to split the cost of utility work on part of the project, the Mayor’s Office has announced.

The project — which was approved last year amid some controversy, with some locals arguing that the existing library at 2000 Mason St. should be preserved — will create a larger and more modern library just up the street at Lombard Street and Columbus Avenue and expand Joe DiMaggio Playground.

PG&E has agreed to remove electric poles and underground existing electrical transmission lines on Mason Street, improving aesthetics and freeing up more space for the park, according to the Mayor’s Office.

The new, two-story, 8,500-square-foot North Beach Public Library will be more environmentally sustainable and more accessible for residents, families and children, Mayor Ed Lee and District 3 Supervisor David Chiu said in a joint statement.

It will include separate areas for adults, teens and children; a community program room; an expanded collection of books and other materials; more computers; and fully accessible spaces, the Mayor’s Office said.

The project, along with the creation or renovation of 23 other branches, is funded by a $105.9 million bond measure approved by voters in 2000.

aburack@sfexaminer.com