Undergrounding FAQ's

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

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 will be approximately ~$12,000 if they wish to pay in a lump sum. If you choose to finance, the cost will increase to ~$14,700.

Important note: we have been assured by the engineers that these estimates are conservative, meaning these costs will only go down. The final numbers will be on the March ballot and after they are voted on, they legally cannot be raised.
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 of ~$12,000 anytime between June 2008 and January 2009, or

If you choose to finance, after January 2009, your assessment cost will automatically increase to ~$14,700 to cover the costs of the bond. In fall 2009, the first payment will be added to your property tax bill.

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 in 2011.

	Cost	Payment Method	When
Assessment	$12,084 or $14,700 if financed ($2,657 financing fee)	Cash or	June 2008 - January 2009
Assessment	$12,084 or $14,700 if financed ($2,657 financing fee)	Pay property tax bill	December 2009
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.	2009 - 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	2009 - 2001, 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 January 2009, 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 April 2009 to June 2011.

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.

6. What are the 3 phases for the current undergrounding plan?

If approved by voters, following is the projected construction schedule (Subject to change):

Phase I: April 2009 – June 2011
Wilton, Burton, Mountain, Ascot and portions of Skyline

Phase II:
Carisbrook, Darnby and Chelton

Phase III:
Skyline, Castle and Mountaingate.

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

2. Are new streetlights installed where existing streetlights are located?

New lights will be in the same general vicinity and will provide roughly the same level of light. Additional lights can be requested, but their maintenance costs will be added into the Assessment District fees. During the design phase, each resident will have an opportunity to discuss location of lights that directly affect their property.