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Neighborhood Organization

Neighborhood OrganizationNeighborhood Organization

A Vision For Unobstructed Views in LBH

Palm Springs Underground Utility District

Overhead power lines are a leading cause of wind-driven wildfires – like those that have devastated parts of Los Angeles. They’re also prone to outages and detract from the appearance of our neighborhood.


The Palm Springs City Council recently passed an ordinance that empowers neighborhoods like ours to take the lead on undergrounding utilities.  But, moving forward requires significant community interest and the expense is borne by homeowners.


The information provided below provides background information about this available opportunity.  Informational meetings will be forthcoming to discuss this idea and determine interest.


Please note that 60% of homeowners (i.e. 51 of the 84 single family homes) would need to approve the project in order to proceed.

Benefits of Undergrounding

Fire Safety

Power Reliability

Power Reliability

Reduces risk of wildfire ignition during high winds

Power Reliability

Power Reliability

Power Reliability

Fewer outages from storms, wind, or accidents

Property Value

Property Value

Property Value

Studies show undergrounding can increase values by 5-20%.

Curb Appeal

Property Value

Property Value

No more poles, wires, or transformers cluttering our views

Project Timeline

This process is expected to TAKE three to FIVE years.

Phase I: Exploratory Phase

  • LBHNO Board forms Utility Committee.
  • City and Utility Committee contacts utilities for detailed district maps.
  • Utility Committee conducts outreach, education, and an initial survey to inform and refine proposed district boundaries.
  • Utility Committee submits Letter of Interest (with preliminary boundaries + 60% signatures).
  • LBHNO raises $25,000–$50,000 to fund Petition Phase costs (consultants, preliminary financial/assessment work).

Phase II: Petition Phase

  • City retains consultant team (Bond Counsel, Financial Advisor, Assessment Engineer).
  • Consultants prepare the formal petition with approximate parcel assessments.
  • Petition circulated to property owners. Requires 60% signatures to advance.
  • Focus is financial/legal/assessment groundwork, not full design.
  • Funds must be secured for Phase III which covers design and engineering report. It’s not clear whether the City will bridge this expense to the bond issuance.

Phase III: Assessment District Formation & Formal Vote

  • City Council adopts resolution of initiation.
  • Assessment Engineer prepares Engineer’s Report (benefits, costs, contingencies).
  • Ballots mailed to property owners under Prop 218.
  • If approved by majority (50% + 1 weighted by assessment) → district is formally created.

Phase IV: Assessment & Payment Phase

  • Property owners select payment option:
    • Full payment within 30 days, OR
    • Bond financing (added to property tax bills over 15–30 years).
  • After ballot approval, detailed design begins:
    • Base mapping
    • SCE electrical design
    • Telecom/cable design
  • Design takes 12-18 months.

Phase V: Construction Phase

  • Bonds issued, project bid, and construction begins.
  • Construction timeline: 12–18 months.
  • Private property conversions occur at the end.

Frequently Asked Questions

Most of the cost is covered by a 30 year bond which is paid through an increase in property taxes.


Enhanced Safety


  • Underground power lines eliminate the risk of downed live wires from storms, car accidents, or fallen trees.
  • In wildfire-prone areas like Palm Springs, undergrounding can significantly reduce fire ignition risk, helping protect homes and lives.


Fewer Power Outages


  • Underground systems are far less susceptible to outages from storms, wind, or equipment failure.
  • That means less disruption to your daily life, fewer spoiled groceries, and less risk to vital systems like air conditioning during extreme heat.


Increased Property Value


  • Studies show undergrounding can increase home values by 5% to 20%, particularly in areas where views and aesthetics are a major selling point.
  • Buyers prefer clean streetscapes with no poles or wires obstructing mountain or desert views.


Quieter and More Peaceful


  • No humming transformers or buzzing wires near your yard or bedroom window.
  • Fewer utility trucks blocking the street for repairs or maintenance.


Long-Term Cost Benefits


  • While undergrounding requires upfront investment, it saves money over time through reduced maintenance, fewer emergency repairs, and potential insurance savings.
  • Some property owners may also benefit from lower energy losses due to improved infrastructure efficiency.


  • Read about Old Las Palmas Utility Undergrounding Project.
  • Read about Racquet Club Estates Utility Undergrounding Project.



References

State of California: Public Utilities Commission Rule 20

Rule 20 is the tariff that governs utility undergrounding of overhead wires at the request of third parties (e.g., local governments, businesses, and residential customers). 

Read More

Palm Springs: Underground Utility District Formation Guidelines

City regulations for Rule 20B and Rule 20C Projects

Read More

Clear Skies Ahead: The Case for Undergrounding Utility Infrastructure

Read More

Amendments to the Stafford Act to Support Undergrounding

Read More

Undergrounding Case Study: Pacific Gas & Electric (PG&E)

Read More

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