Want to keep your underground utilities? Reach for your wallet.

September 8, 2019 – Palo Alto Matters

Green Acres I may have to self-fund keeping their electric utilities equipment underground 

Under a program started in 1965, 33 districts in Palo Alto had their utility wires undergrounded, with transformers and other equipment placed in subsurface vaults. As utilities standards have changed over the years, most of those subsurface vaults have been converted to above-ground, pad-mounted installations, but nine districts still enjoy fully underground electric utilities in their neighborhood. One of those, Green Acres I, is due for a system rebuild. Citing aesthetics, safety and property values, many residents want to keep their system fully undergrounded. 

City of Palo Alto Utilities says meeting current functional and safety requirements while keeping the infrastructure fully underground would require costly and extensive new subsurface construction. So if the neighborhood wants to avoid the switch to pad-mounted, above ground equipment boxes, city staff and the Utilities Advisory Commission recommend making the neighborhood responsible for raising funds and paying up front for the cost difference.

A resolution going to City Council for a vote on September 16, would amend city regulations to allow a community to keep the equipment underground if they pay both the incremental installation costs and ongoing ownership costs for undergrounding. CPAU roughly estimates that for the Green Acres I project, property owners would have to prepay a total of about $475,000. The remaining eight districts that have not already been converted to above ground equipment boxes would also have access to the self-funding option when their area comes due for a system rebuild.

To initiate subsurface installation under the proposed self-funding option, a proponent would have 45 days to collect signatures from owners of at least 60 percent of the affected parcels and gather funds sufficient to cover the cost of developing a cost estimate for non-standard, subsurface improvements. CPAU would then prepare a cost estimate for the installation and the neighborhood would have 90 days to collect and prepay the difference between the planned standard installation and the fully subsurface installation (including the net present value of the higher continuing ownership costs).  

Council discussion will begin at 7:00 pm on September 16. For more information about the thinking behind the self-fund option, read the staff report.

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