FAQs

Transformers will be located in subsurface vaults covered by manhole covers. Each vault requires two, 12-inch diameter by 30-inch high vents. Telephone systems may also require small above terminals to provide maintenance access. 

Street lights located on the power poles will be removed unless residents request them to be replaced. The replacement cost will be included in the overall assessments. For street lights in alleys, private easements are necessary to locate poles outside the alley right-of-way. If those easements are not received, a replacement street light will not be installed. 

The locations of the vents will be marked on the ground after the plans have been completed so that the property owners can see the proposed placements. Locations for these structures have been placed in the public right-of-way selected by both the City and utility companies in the best interest of the property owners. Location adjustments to these structures are typically not allowed after the designs are finalized. City staff attempts to contact property owners adjacent to the proposed above ground equipment prior to design completion. 

Yes, during the 30-Day Cash Payment Period, the property owner will save approximately eight percent (8%) on the portion of the assessment paid. After this period, the property owner can at any time make cash payments to pay off the assessment by paying off any outstanding delinquencies, a portion or the remaining principal amount, applicable bond redemption premium, interest to the next available bond call date, and an administrative fee fixed by the City. Any payments made after the 30-Day Cash Payment Period will not receive the 8%+/- bond financing discount. 

The assessment can be paid in cash or through bond financing. Once the Assessment District has been approved by the City Council, property owners have a 30-Day Cash Payment Period to pay their assessment. After the 30-Day Cash Payment Period, any unpaid portion of the assessment will be financed through bond sales. If the property owner elects to finance the costs, annual installments of principal, interest and administrative fees will be collected with the property tax bill.

Cost vary substantially from district to district depending on the size, physical constraints, specific benefit of each property, how many overhead lines need to be placed underground, labor and material costs and inflation. Based on recent cost estimates prepared, a typical single-family residence would be assessed between $20,000 and $30,000. Please note that the assessment amount does not include the private conversion portion of the project, which is usually an additional $1,000 to $4,000 per residence. 

The state offers two programs to assist persons who meet minimum requirements for economic and physical hardship. For general information on these programs, please call the State Controller's Office at 916-445-2336 or visit one of the following websites:

• Homeowner and Renter Assistance - State of California Franchise Tax Board 

• Property Tax Postponement program - California State Controller's Office 

The City has been informed that the state has suspended these programs until further notice.  For additional information, contact the State Controller's Office at 916-445-2336.

Please direct any tax-related questions to your tax advisor or accountant. 

The assessment amount includes design engineering, legal, administration and bond insurance costs. 

This is a matter that can be negotiated between the buyer and seller. The lien is placed on the property and will be transferred to the new owner unless the assessment is paid in full. This information should be disclosed to the buyer.

The 8%+/- is the cost of the bond insurance and administration. If a property owner pays the assessment in cash during the 30-Day Cash Payment Period, he/she will save the 8%+/- bond financing cost. Paying cash also saves the cost of paying interest. 

A rule of thumb is ten percent (10%). For example, if the assessment amount is $10,000 the assessment amount would be roughly $1,000 per year. 

The bond financing reflects the market rate at the time of issuance. The City does not have the capability to predict such rates.

Usually the bonds are financed over a 15-year term. For more information, take a look at the Finance Department's Special Assessments.

The process begins when property owners submit a letter of interest to the City. After City staff and the utility companies perform some preliminary work, a bond counsel is retained and a petition, which includes a cost estimate, is circulated among the local property owners. If at least 60 percent of the property owners express interest, the process continues and an Engineer’s Report is created. This report is important because it includes the assessment amount – the share of the improvement costs that each property owner would pay. A ballot is prepared and mailed to each property owner who then votes for or against forming the district. Under Proposition 218, a majority of property owners that will benefit from the proposed improvements must vote in favor of forming the district. 

The main advantages to utility undergrounding include improved aesthetics, system reliability and safety. Some proponents believe that undergrounding increases property values. The disadvantages include the cost and inconvenience caused by construction. 

An assessment is a levy or charge against private property for improvements such as undergrounding utilities.

An underground utility assessment district is a special district formed by a local government agency at the request of local property owners for the purpose of undergrounding utilities in the public right-of-way. The district includes all property owners that will directly benefit from the undergrounding improvements.

All existing overhead utilities such as electric, cable television and telephone poles and wires are removed and the wires are placed in underground conduit. In the public right-of-way, this involves trenching, laying conduit lines in the trenches, installing new utility vaults, backfilling, repaving the street and removing the overhead poles and wires. Property owners are responsible for the "private conversion" portion of the project. 

The California Public Utilities Commission's Rule 20 sets policies and procedures for converting overhead utilities (electric, telephone, cable television) and other equipment to underground facilities. Under Rule 20, undergrounding projects can be financed by utility rate money, combined rate funds and local tax proceeds, or private funds depending upon what section of the Rule is applicable.

• Rule 20A projects are paid for by the utility companies as directed by the Public Utilities Commission. In order to qualify for full funding, projects must provide a benefit to the general public and the utilities must be located within a civic, recreational, or scenic area or along an arterial or major collector road in a local government's general plan.
• Rule 20B allows property owners who do not quality for Rule 20A funds to form an underground utility assessment district.
• Rule 20C enables a property owner to privately fund the undergrounding of overhead facilitates if neither Rule 20A nor 20B applies. 

No. The cost of the private conversion is negotiated between you and your contractor. Each property owner pays for this service separately from the assessment. 

Private conversion involves undergrounding the service wires and equipment that are on private property - that connect from the main service conduit in the public right-of-way to the property owner's home or business. This work includes trenching, backfilling and installing conduit, conductors and conversion panels. 

Each property owner must connect their overhead utility lines to the underground utility system. It is recommended to obtain bids from licensed contractors to perform this work. This cost is not included in the assessment amount. 

It typically costs between $1,000 and $4,000 to convert overhead utilities to underground. These costs are not included in the assessment. 

If there are enough votes to form a district and it is approved by the City Council, the property owners are required to underground the utilities regardless of each individual owner's vote. 

The process occurs in phases and will take approximately seven (7) years from start to finish. 

One of the trustees of the properties should sign for the property and indicate that he/she is a trustee of the property. 

If a property owner cannot arrange a time to sign the petition in the presence of a proponent of the assessment district, the property owner must submit a notarized petition to the proponent. 

Click here to download the step by step process.