The high cost of going underground The high cost of going underground (September 16, 2005)

City could offer relief for property owners asked to pony up thousands

by Bill D'Agostino

A new program could allow Palo Alto property owners to defer their share of the cost for undergrounding utility lines until selling the site in question.

The city's ambitious 40-year-old program to place all of Palo Alto utility lines underground was criticized this summer by residents who complained they couldn't afford their share, which can cost more than $10,000.

The city and the other communications company pay for most of the undergrounding work. But property owners have to pay for the portion of the project that connects the lines to their individual properties.

That cost has been spiraling in recent years due to a combination of factors, including inflation and decreased competition from contractors.

Under the new plan, which the City Council will review and likely approve on Monday night, the city would place a lien on a property in the amount of the owner's share of the work.

When the owner sells the property, the undergrounding costs would be repaid with interest, according to Tomm Marshall, the interim assistant director of utilities engineering

"That sounds good to me," said Mary Emard, who lives on Bryson Avenue and has been leading the group asking the council for help.

Emard's neighborhood is the first to actively lobby the city for help. Labeled "District 41," it stretches from Oregon Avenue to just past Colorado Avenue, and from Middlefield Road to Cowper Street.

"I can't believe for 40 years not one block has spoke up," Emard said.

In late July, the neighborhood's pleas got the council to reverse an earlier decision to move forward on District 41.

If the council approves the deferred payment plan, it would be available for all future undergrounding districts. It'll be the second city program to help property owners; the city already offers low-interest, 10-year loans to ease the burden.

Another option is to have the Utilities Department pay the property owners' share of the work. But city administrators don't consider that fair to those who already paid.

Approximately 40 percent of the city's utility lines have been placed underground through the program, which was originally envisioned to take only 40 years. The citywide program is estimated to take 50 more years to complete.

Emard, a single mother who runs a day care, said she and her neighbors plan to attend Monday night's meeting with signs again asking for assistance.

Regardless of what the council decides, Emard added, "At least our voice has been heard."

Staff Writer Bill D'Agostino can be e-mailed at bdagostino@paweekly.com.

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