The City Council Audit Subcommittee will meet on Thursday, September 22nd at 7:30 p.m. to review and approve a preliminary report to the City Council.

The draft Preliminary Report and all the materials used by the subcommittee are available on-line.  The committee may not issue a final report until after litigation involving the District has been concluded and  matters in the  litigation can be explored more fully.

> Click to read more…

A letter from Thomas Clark notes recommendations leave the City on the hook for cost overruns

The subcommittee has labored mightily at producing an autopsy of the  financially disastrous City involvement in undergrounding projects.  But so far as I can determine from reading over the glut of words it has produced, it has not focused on what really matters to me as a City resident and taxpayer.  > Click to read more…

“Maybe I’m missing something, but it seems that the Committee has missed the forest for the trees. The only questions I’m interested in hearing an answer to is whether anyone on the council asked “What happens if there is a cost overrun?“ and, if there is, “Who is going to pay for it?”.  The Council should never have approved a project for private benefit if there was a risk of the public having to pay for it  . . .”

Correspondence has been submitted to the Audit Sub-committee by Sanford H. (“Sandy”) Margolin (excerpted above), Neil Teixeira, Joe Hurwich, and Rick Schiller, members of the community who have followed the Sub-committee’s work and are displeased with the results of the investigation.  Rick Schiller points out a list of items omitted in the draft report and concludes the Committee’s work is a self-examination by two Council members and requires an independent audit to appropriately investigate the matter.  See all correspondence for 8.23.11 meeting. > Click to read more…

Final draft report released by Audit Subcommittee

The Piedmont City Council Audit Subcommittee will discuss a final draft report on utility under-grounding on Tuesday, August 23 at 7:30pm in the City Council Chambers.  The report extensively details contract administration and policy issues encountered by private utility under-grounding districts.  This meeting will also provide an opportunity for the public to comment on the draft. > Click to read more…

The Final Draft Report of the City Council Audit Subcommittee on undergrounding has been released and posted online.  Public comment has been invited prior to the next Subcommittee meeting which will be held on Tuesday, August 23rd.  (See also Undergrounding Recommendations of the League of Women Voters, PCA Suggestions for Further Review of Undergrounding Issues, and other PCA undergrounding articles.)

> Click to read more…

The Piedmont League of Women Voters Task Force on utility undergrounding presented its extensive investigation in a public forum entitled “Lessons Learned in Undergrounding”on April 26.  Task Force members Mary Heller, Rob Hendrickson, Kathleen Quenneville [Chair], Al Peters and Alex Gunst discussed their findings and recommendations.  The Task Force expertise includes construction litigation, public policy administration and legal issues, engineering, accounting, mediation, construction management, and past experience as a Piedmont Mayor.

The City Council Chamber was filled to capacity with  citizens interested in the presentation and discussion of a failed and costly private undergrounding district. The Task Force made the following suggestions for changes to Council and staff procedures and policies to prevent failure and cost overruns in future underground utilities and other civic projects.

The City Council’s Role > Click to read more…

The Piedmont Hills Undergrounding Project has been controversial and several studies have been undertaken.   Join the Piedmont League of Women Voters for a presentation from the members of the League’s Undergrounding Task Force on Tuesday, April 26 at 7:30 in the City Council Chambers at 120 Vista Avenue. A panel will discuss lessons learned from this project and a question and answer period will follow.  > Click to read more…

On March 15, 2011  the Piedmont City Council Audit Subcommittee met to continue their investigation of the Piedmont Hills Underground Assessment District (PHUAD) bailout of $2.2 million by the taxpayers of Piedmont, considering extensive public comment.

At its prior meeting on January 26,  2010, the Subcommittee asked for public input on individually written reports by  Subcommittee Members.  (See Chiang Report, Kawaichi Report, Barbieri Report)  Numerous comments were submitted by individuals and organizations, including a report from the Piedmont League of Women Voters Task Force and detailed Commentary from the Piedmont Civic Association. > Click to read more…

Property owners in the Piedmont Hills Underground Assessment District have been scratching their heads, wondering when their undergrounding project will be completed. The City contributed $2.1 million from the General Fund in 2009 and 2010 to make up the difference between the bid specifications and actual work needed.  The Council acted to pay the difference between what property owners committed to and real cost to  expeditiously complete the project.  However, the construction work which began nearly two years ago has yet to be completed. Telephone poles hung with AT&T and Comcast lines remain in place in the District.

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…