Council continues undergrounding hardship loan proposal, asks staff to seek private financing options

Council members and public commenters expressed broad support for undergrounding overhead utilities as a public‑safety and neighborhood‑improvement measure, but several councilmembers said the city should avoid acting as a bank.

Staff described the proposed program — a loan option for eligible homeowners where costs (staff estimated about $55,000 per property) could be paid in cash, added to property taxes, or offered as a city loan paid back over 20 years. The staff presentation noted eligibility limits and an intent that the program be conservative and protect the city’s financial position.

Councilmember Barto, who pulled the item for discussion, said she supports undergrounding for fire safety but wanted alternatives to the city serving as lender. "I move that we continue item 4 and direct staff to return as close as possible to 60 days with the revised program framework that evaluates [a] private lender RFP partnership and structures internal to assessment districts and coordinate with the State Comptroller’s Property Tax Postponement Program," she said. Mayor Pro Tem Blom and Councilmembers echoed support for the program but preferred options that avoid the city taking on lending risk.

The council voted unanimously to continue the item and asked staff to expedite work on financing alternatives and additional coordination for hardship assistance so the program can be returned to the council quickly.