Over $450,000 of City funds prioritized for undergrounding Moraga and Oakland Avenues have been loaned to, but not repaid by, private undergrounding district homeowners.  The history of how this occurred goes back many years.

The Public Utility Commission requires that PG&E set aside money it receives from utility users in a special 20A fund reserved for public undergrounding projects*.  This is in contrast to 20B and 20C districts which rely on private funding:

• 20A Projects use 20A funds to pay for public undergrounding projects. In Piedmont, Moraga, Oakland and Grand Avenues, major corridors, were prioritized for the City’s 20A funds after a comprehensive study conducted by staff. (See Resolution 85-85, p. 1, p. 2, p. 3.)  Grand Avenue undergrounding was completed using 20A funds.

• 20B Projects use money from property owners self-selecting themselves. City Council approval of the district allows a special assessment district to be formed and bonds issued; construction is performed under the management of the City.  Current 20B agreements between the City and homeowners open the City General Fund to invasion for costs not originally a part of the City’s agreements with property owners who desired the undergrounding project.  The City may bear the risk of cost overruns beyond contingency funds and Acts of God. (Chiang report, p. 6 and 13.)

• 20C Projects use money solely from property owners self-selecting themselves who work directly with PG&E to manage the undergrounding project.  The property owners pay all expenses incurred and the City plays no management role in these projects.  There is no risk to the City.

Using 20A public funds for the benefit of private districts

Undergrounding proponents have urged the City to make 20A public funding available to 20B private district as seed money since 2003.  (See p. 5-7 and Source Materials below).  At a 2-3-03 City Council meeting the City Administrator advised there were too few 20A monies to fund the undergrounding of any properties except those owned by the City and School District.  (p. 4)  However, the Council supported their use, “agreeing that the likelihood the City will ever use Rule 20A funds to finance utility undergrounding along Oakland Avenue is remote.”  (5-5-03, p. 7.)

In October, 2003 the Council considered and authorized $25,000 to Central Piedmont when proponents ran short of funds.  > Click to read more…

Piedmont Civic Association Commentary on Undergrounding Reports from the Audit Subcommittee and the League of Women Voters

To date, the efforts of the Audit SubCommittee and the League of Women Voters have emphasized contract administration analysis.  Information and analysis of undergrounding concerns provides a valuable shared knowledge base to the Council and residents in their upcoming efforts to undertake substantial revisions to City undergrounding policy.  It is hoped both the Audit Subcommittee and LWV will continue their much appreciated efforts, providing analysis and recommendations to the Council and the community on:

• The use of public funding to facilitate the creation of  private undergrounding districts
• The loss of 20A public funds
  
• The City’s financial stake in approving Districts
• The potential or perceived impact of a financial stake on the decision-making process
• The magnitude of 20B projects in comparison to City revenues and reserves
  
• Other  undergrounding options:  20C Districts and city-wide undergrounding
  
• Chiang analysis:  Does the City become the  “ultimate insurer” of every 20B undergrounding project?
• Will immediate knowledge and reporting of cost overruns improve the City’s options?
• Shifting cost risk from the City to private districts
• Preventing misunderstandings by Staff and/or Council of the nature of City contracts
  
• The extent and appropriate use of informal meetings, without formal public notice, between homeowners and city staff
• Review of additional aspects of past experience
• Optimum threshold level of support – review, comparison and a specific recommendation
• Grounding the report upon the Piedmont City Charter
  

The use of public funding to facilitate the creation of  private undergrounding districts

Current undergrounding policy prohibits the use of “general funds” for pre-formation expenses.  However, this policy has been interpreted to refer only to the City’s General Fund, and to allow the use of 20A public funds (a separate account containing monies received from PG&E for undergrounding major arterial streets) for the benefit private 20B districts.  Use of these public funds has been authorized as follows:

• $25,000 for Central Piedmont (due to seed money shortage – see p. 15)
• $128,000 for Central Piedmont (to satisfy remaining district debt when it failed to be approved)
• $150,000 for Piedmont Hills
• $150,000 for Hampton Sea-View (p. 5) > Click to read more…

The following are recommendations and highlights from individual draft reports prepared by Mayor Dean Barbieri, Vice Mayor John Chiang and Judge Ken Kawaichi, the three members of Piedmont’s City Council Audit Subcommittee.  Their separate drafts are scheduled to come together in a final report to the Piedmont City Council which examines  the Piedmont Hills Underground Assessment District problems and provides recommendations for policy changes to preventing future similar problems.  Public input is requested by the Subcommittee prior to its next hearing on March 15.  Email dbarbieri@ci.piedmont.ca.us, jchiang@ci.piedmont.ca.us, kkawaichi@ci.piedmont.ca.us. > Click to read more…

Editors’ Note: This is the League of Women Voters’ Report in its entirety.

League of Women Voters Task Force to Investigate and Report

on Piedmont Hills Undergrounding District

February 22, 2011

Summary of Preliminary Findings

The Piedmont Hills Undergrounding District (the “District”) project (the “Project”) incurred significant construction cost overruns, of which over $2 million was paid by the City out of its general funds in early 2010.  The City Council thereafter appointed a three-person Audit Subcommittee to investigate how and why the overruns had occurred, and now approximately one year later, it has just recently released its members’ preliminary draft reports.

The League of Women Voters (“League”) felt that the events and circumstances raised issues of civic importance to all City voters, and created a volunteer Task Force with the goal of providing an independent investigation and report.  This preliminary report by the Task Force identifies what it believes to be some of the significant problems that led to the unprecedented cost overruns.  Within the next month, the Task Force anticipates providing the Audit Subcommittee with comments on its members’ preliminary draft reports and anticipates participating in the public comment process.  The Task Force may issue a further report if the Audit Subcommittee’s final report has material changes.

Executive Summary

The Task Force was formed by the League in early 2010.  The magnitude of the cost overruns raised issues regarding the City’s ability to manage and administer major contracts.  Potential members for the Task Force were interviewed by the League, and the following long-time Piedmont residents were selected: Alex Gunst, Mary Heller, Rob Hendrickson, Al Peters, and Kathleen Quenneville.  Task Force members’ backgrounds include construction project management, accounting, city governance, and legal. > Click to read more…

The ongoing debate on health care will be the featured topic at the Wednesday, March 16, 2011 program sponsored by the Piedmont League of Women Voters.  The program, titled “Health Care for All,” will be held at 1085 Winsor Ave. in Piedmont, from 9:30 to 11 a.m.

Dr. Li-Hsia Wang, a retired pediatrician and family practitioner and an expert in health care policy, will discuss the many pieces of the federal health care plan passed by Congress in 2010 and concerns about containing health care costs.  She also will discuss the League of Women Voters’ position supporting “Medicare for All,” a single-payer plan, as well as health care activity in the California legislature.

Dr. Wang. a strong advocate for quality, affordable health care available to everyone in the U.S., worked in public hospitals and community health centers in New York City, Chicago, West Virginia, and Berkeley. She earned her undergraduate degree from Radcliffe College and medical degree from Case Western Reserve Medical School. She is a member of Physicians for Social Responsibility, Physicians for a National Health Program and of the Berkeley, Albany, Emeryville League of Women Voters.

The Piedmont League program is free and open to the public.

An opponent of the Blair Park development provides the following 10 minute video clip of excerpts from the Planning Commission hearing of February 24 on Blair Park/Moraga Canyon sports facilities

Video Clip:  Planning Commission Hearing Excerpts

Editors’ Note: The following is the email sent with the above video clip.

As you may remember, my neighbors and I have been involved in a long battle with the city over the conversion of Blair Park to a soccer facility. I am aware that some Piedmonters and Oaklanders view the claims of the neighbors as biased. I am, therefore, providing this link to a You Tube video of the Planning Commission reaction registered at last week’s meeting. The Commission unanimously rejected the plan but the City Council appears poised to move ahead with the project at its March 21st meeting.I hope you might take about 10 minutes to watch the video and perhaps pass the link along to any friends who might be interested in the controversy.

Ralph Catalano

Editors Note: The complete video of the February 24, 2011 Planning Commission meeting may be viewed on the City website.

(This letter expresses the personal opinions of the author. All statements made are the opinion of the writer and not necessarily those of the Piedmont Civic Association.)