Utility Undergrounding

History
Timeline
Map of 3 phases
Phase 1 Addresses
Frequently Asked Questions (FAQ's)

Brief History

In 1987, Piedmont Pines filed a petition with the City to have all utility lines within its boundaries undergrounded under the California Public Utilities Commission’s Rule 20A, which basically sets out a pot of money from the tax on utility bills to cover 85% of the utilities’ expenses.

Not until 11 years later did the association rise to the top of the waiting list in Oakland. In 1999, just as we finished tabulating votes among residents to establish an assessment district to cover the remaining 15% of the costs, the project hit the skids. The association spent time in front of the CPUC and the state legislature in hearings about what criteria should be considered in forming undergrounding districts. We were joined by the City in our argument that public safety and emergency access should be heavily weighted. We were denied, and a new provision restricting 20A undergrounding to arterial streets meant that over half our streets have been eliminated from the undergrounding project.

We couldn’t get the work back on track until 2004 when we reluctantly accepted a compromise offered by PG&E, the lead utility in this project, that we break the project into three phases.

Timeline

Construction of Phase 1 is scheduled to begin in the 2nd quarter, 2010, and will take the better part of two years. Phase 2 design will begin after Phase 1 construction is completed; likewise Phase 3 will follow Phase 2.

For Phase 1 residents, the window for making a lump sum payment closed the end of October; for those financing the assessment, annual property tax bills will begin including the charge in November 2010.

Map of 3 Phases

2007 Undergrounding Map

Phase 1 Addresses

Ascot Ct	2 – 32
Ascot Dr	5450 – 6644
Ascot Pl	5 – 20
Burton	2820 – 2873
Camelford Pl	6 and 96
Camino Lenada	2600 – 2615
Chelsea Dr	2885, 2893 and 2899
El Caminito	2550
El Patio	10, 42 and 63
Holyrood Dr	2901 and 2911
La Cuesta Av	2600, 2601 and 2607
Larry Ln	10
Longcroft Dr	6301, 6309, 6501, 6511, 6521
Melville Dr	6501, 6505, 6507
Morley Dr	2815
Mountain Blvd	2554, 2560 and 2564
Mountaingate Way	2601,2614
Skyline Blvd	9014 – 9212
Wilton Dr	6708 – 6933

Undergrounding FAQ's

Updated March 5, 2008
General Questions and Process
1. What is Undergrounding?
2. Steps to Undergrounding for Phase I
3. What is an Assessment District?
4 . What is the property owner's role?

Why Underground?
1. What are the advantages of undergrounding?
2. What are the disadvantages?
3. Why now?
4. Who is Included?

Costs
1. How much will it cost?
2. How do I pay?
3. Can I pay off my assessment at any time?
4. What are the details of the financing?
5. What happens if I don't pay my assessment?

Construction
1. How long does construction take?
2. How much will I be inconvenienced by the construction?
3. How long will the contractor be in front of my property?
4. How long will I be without utility service?
5. When will they repair the roads?
6. What are the 3 phasess for the current undergrounding plan?

New Steetlights
1. What will the new streetlights look like?
2. Are new streetlights installed where eexisting streetlights are located?

General Questions and Process

1. What is Undergrounding?
Replacing all overhead lines and supporting structures with a state of the art underground system

2. Steps to Undergrounding for Phase 1

A petition to show our interest and commitment to the project was submitted to signal the go-ahead for the City of Oakland to start its proceedings.
The issue went through Rules, Finance and Public Works Committees before the City Council voted.
After the project was approved by the council, the official ballots were mailed to Phase 1 residents.
Over 50% of residents voted in favor, an “Assessment District” was created and design work was scheduled.
A payment window became available for those choosing to pay upfront in a lump sum.
Bonds are issued and construction begins.
For those financing, property bills will increase in accordance with the assessment costs starting November 2010 for Phase 1.
Construction work on phase 1 will begin late January 2010 and take about two years, including removal of the poles and overhead lines.

3. What is an Assessment District?
When the Phase 1 property owners marked their ballots in support of undergrounding, they allowed the city to create an “Assessment District”.

Technically speaking, the Assessment District is the legal boundary inside of which owners will be obligated to pay for the neighborhood’s portion of the undergrounding costs. These boundaries are based on connecting power lines and streetlights and are used to select which properties are undergrounded in each phase.

4. What is the property owner's role?

Votes to authorize creation of a Special Assessment District and pays a small percent of the overall cost.
Hires a contractor to upgrade and or modify electrical service entrance to accept underground service on their properties. This is reimbursable by PG&E up to $1,500 per property as authorized by Council. (Piedmont Pines will negotiate a bulk rate with a contractor which individual homeowners can choose to take advantage of.)
Cooperates with contractor and utilities on panel conversion, trenching and cut-over.
Endures inconvenience of construction (noise, heavy equipment, dirt and dust, and traffic congestion, etc)

Why Underground?

1. What are the advantages of undergrounding?

Eliminates danger of fire from downed power lines.
Eliminates escape routes blocked by downed poles and lines.
Eliminates danger from falling wires and equipment.
Reduces outages from falling trees.
Reduces risk to computers and appliances from power surges.
Improves our scenic views.
Increases our property values from 10-20%.
Leverages utility investment of ~80,000 per home (85% of the total costs)

2. What are the disadvantages?

Cost to property owners for the ~15% not subsidized by utilities.
Inconveniences during construction.
Costs for lateral trenching over 100 feet and panel upgrade costs over $1,500.

3. Why now?

Every year, money is set aside by the utilities as well as The City of Oakland to pay for undergrounding projects. Combined, they will subsidize this $25-30 million project by around 90%.
Piedmont Pines has slowly been climbing the waiting list for over 20 years and it is finally our turn.
If Piedmont Pines does not underground now, it will be passed over for the next neighborhood in line. We will not get another chance!

Who is Included?
For Phase 1, properties on Ascot, Burton, Wilton and portions of Skyline and Mountain. See the map for all three phases. Exact addresses for Phases 2 and 3 will be determined during their respective design phases.

If my utility services are already underground, do I need to do anything?
Yes, you still need to vote. If your street is in the Undergrounding District and has streetlights, you will be included in the Assessment District.

If my utilities are already underground, there are no streetlights on my block, and I don’t want any, what do I need to do?
You need to submit a petition to the City, signed by the majority of property owners on your street, requesting exclusion from the Undergrounding District.

Costs
1. How much will it cost?
There are three costs to the homeowner:

The main undergrounding cost is the assessment. This covers the new streetlights, project coordination, engineers report, council reports and a portion of the trenching cost. The cost per household for Phase 1 will be approximately ~$12,500 if they wish to pay in a lump sum. If you choose to finance, the cost will increase to ~$14,750.
If you live more than 100 feet from the edge of the asphalt, then there will be a charge for trenching beyond the 100 feet covered by PG&E. (This will not be a big problem in Piedmont Pines) The cost per extra foot is usually around $55.
Each home also has to have its electrical panels converted to accept the new lines. The cost can range up to $4,500 and is reimbursable up to $1,500 by PG&E.

2. How do I pay?
You have two options to pay the assessment costs, cash pay or financing.

You can pay a lump sum during the open window provided
If you choose to financeyour assessment cost will increase to cover the costs of the bond. In fall 2010, the first payments will be added to property tax bills in Phase 1.

The costs from the lateral trenching over 100 feet and panel conversion over $1,500 will be paid by the homeowner when the work on your property is done.

The excess trenching will be done by the PG&E or its contractor.

The panel upgrade will require two visits by the contractor. (Combining in the total cost mentioned earlier). One will be to do the preliminary work anytime during the construction process and the other will be to hook up the new lines when construction is complete.

	Cost	Payment Method	When
Assessment	$12,500 or $14,750 if financed (includes financing fee)	Cash or	Phase 1: fall 2009
Assessment	$12,500 or $14,750 if financed (includes financing fee)	Pay property tax bill	December 2010
Panel Upgrade or Conversion	Typically $2,500 - $4,500, with $1,500 reimbursed by PG&E	PPNA will negotiate a bulk deal with contractors. Owners can also make individual choices.	2010 - 2011, in two payments: * One when the work starts * One when the project ends
Trenching	Trenching to houses with panels more than 100 feet from the curb line	$55/foot beyond 100 feet past curb line	2010 - 2011, depending on the trenching date for your property. Not a PG&E bill but a separate bill.

3. Can I pay off my assessment at any time?
Yes, by contacting the Treasury Division of the Finance and Management Agency: 510-238-3830. After the cash pay period ends in fall 2010 for Phase 1, however, you will have to pay financing costs.

4. What are the details of financing?
The bonds will be issued with a term of 30 years with interest based on the current market in 2009. For some guideline as to what that may be, the current interest rate is 6%.

5. What happens if I don't pay my assessment?
It becomes a lien on your property which could result in foreclosure by the City.

Construction
1. How long does construction take?
Phase 1 is scheduled to take 27 months, from January 2010.

2. How much will I be inconvenienced by the construction?
This is a significant time for construction crews to be blocking some of our streets so the city will work with PG&E be as unobtrusive as possible. This will include working on school property in the summer or providing adequate detour routes. Coordinating these efforts will be the responsibility of the Public Works Project Manager and City Inspector.

3. How long will the contractor be in front of my property?
Usually only a few days for trenching, installation of boxes and foundations, etc. Otherwise, work is intermittent and access is provided for walkways and driveways.

4. How long will I be without utility service?
Typically, less than 4 hours. PG&E will work closely with the property owner and their contractor to coordinate the cut-over and minimize power disruption.

5. When will they repair the roads?
PPNA is negotiating with the City to coordinate the end of construction with the City’s existing resurfacing timeline. Until then, it will be the responsibility of the utilities to make the streets level. Making sure they live up to this promise will be the job of the City Inspector.

New Streetlights
1. When will the new streetlights look like?
PPNA voted and decided that the new lights will be the cobra head lights on 28 – foot poles. The cobra was chosen because of reduced cost and longer life. The other option was 16 foot ornamental lights which were decided to be overpriced and less practical