City plans ambitious undergrounding project amid rising costs

In a recent government meeting, officials discussed the complexities and rising costs associated with infrastructure projects, particularly focusing on the undergrounding of utility wires in the city. The conversation highlighted the approach taken by large corporations, such as Amazon, which prioritize understanding the total cost of projects rather than breaking down individual components. This methodology, officials argued, is essential for effective project management and accountability.

The meeting revealed that costs for San Diego Gas and Electric (SDG&E) projects have surged by 54% since late 2022, while general contractor costs have increased by 35%. Officials acknowledged the necessity of a contingency budget of 11% to mitigate potential overruns, emphasizing the importance of adhering to specifications set by SDG&E.

A significant point of discussion was the timeline for the undergrounding initiative, with officials conceding that completing the project by 2036 is unrealistic. They stressed that while the city is committed to the undergrounding of all utility wires, the process will require time, dedicated staff, and collaboration with SDG&E.

The meeting also touched on the need for a comprehensive understanding of project costs and logistics, which led to the development of the TWA (Total Work Assessment) initiative. This program aims to provide clearer estimates and streamline future projects.

Officials concluded by addressing concerns regarding staff performance, noting that directives from the council can create pressure on staff to meet expectations, which may not always align with project realities. The meeting underscored the challenges faced in managing large-scale infrastructure projects amidst rising costs and the need for strategic planning and collaboration.