Palm Springs homeowners raise concerns over proposed utility undergrounding project, assessments reaching nearly $139K
PALM SPRINGS, Calif. (KESQ) – The City of Palm Springs has postponed a public hearing and assessment ballot count for a proposed utility undergrounding project in the Old Las Palmas neighborhood after some homeowners raised concerns over costs reaching nearly $140,000 per property.
The project would move existing overhead utility lines underground, an improvement some residents say is long overdue for safety and neighborhood aesthetics.
However, proposed assessments ranging from approximately $92,000 to $139,000 per parcel have sparked concerns among homeowners about affordability, transparency and whether residents have been given enough time to review the project’s financial implications.
The public hearing and assessment ballot count were originally scheduled for October 28. City officials confirmed Thursday that the item has been removed from the City Council agenda while staff reviews concerns raised by property owners.
Homeowners divided over proposed projectThe proposal has drawn differing opinions from Old Las Palmas residents, with some welcoming the potential improvements and others questioning the financial burden.
During the October 14 Palm Springs City Council meeting, homeowner Don Sherwood expressed his shock over the proposed assessment.
“Something like this was coming. It certainly wasn’t in my budget. It’s similar to going to your mailbox, opening a bill for medicine, and getting a bill for $140,000,” Sherwood told councilmembers.
Sherwood, who has lived in Old Las Palmas for more than a decade, also raised concerns about the fairness of the assessments.
According to a written statement he submitted to the city, the utility lines serving his property were already placed underground in 1993, before he purchased the home.
Despite that, Sherwood says his property faces a proposed assessment of $138,872.26.
He is questioning what additional benefit the project would provide to homeowners whose utility lines are already underground.
Other residents, however, believe the project is a necessary investment.
Old Las Palmas resident Tom Ellicott told News Channel 3 that he and his neighbors have been hoping to move the area’s overhead utilities underground for several years.
“Well, we have more than enough information. The chief pros are safety and esthetics,” Ellicott said.
Ellicott pointed to the neighborhood’s large trees and the potential safety benefits of removing overhead power lines.
He acknowledged the project would be expensive but said he believes the improvements are worthwhile.
Another resident, Garth Gilpin, expressed similar support, citing fire safety and neighborhood beautification.
Gilpin said he understands some homeowners are concerned about the cost, but believes delaying the project may not make it more affordable.
“It’s never going to be any cheaper than it is right now,” Gilpin said.
Gilpin also raised questions about the additional expense of connecting individual homes to the underground utility system, a cost separate from the proposed assessments.
Residents question costs and transparencyAt the October 14 City Council meeting, several residents spoke out about the proposed assessments and the timeline for making a decision.
Sarah Barton told councilmembers that her household received its first official communication from the city about the project in early September.
“Our home’s only first and only official communication from the City of Palm Springs regarding this project was at the beginning of September,” Barton said.
She questioned whether homeowners had been given sufficient time to understand the project’s financing terms and potential long-term financial obligations before the originally scheduled October 28 hearing.
Residents also raised concerns about the assessment calculations, district boundaries, construction impacts and the availability of engineering and environmental review documents.
Some homeowners have requested additional information about financing options and the total amount they could ultimately be required to pay.
The proposed assessments do not necessarily represent the full cost to each homeowner. Depending on the property’s circumstances, financing expenses and private connection work could add to the overall cost.
Councilmembers seek additional answersThe concerns also prompted questions from Palm Springs City Councilmember Grace Garner during the October 14 meeting.
Garner requested additional clarity about the proposal, particularly concerning properties that already have underground utilities but would still face assessments.
She also asked city staff and the city attorney to clarify the council’s legal options for addressing residents’ concerns.
“So if we can get just a lot more clarity and then Jeff, find out legally what our options are on this,” Garner said during the meeting.
The discussion came as residents requested additional time to review the project’s details before assessment ballots were counted.
City postpones hearing and ballot countOn Thursday, October 22, the City of Palm Springs confirmed to News Channel 3 that the proposed assessment item had been pulled from the October 28 City Council agenda.
In a statement, city officials said:
“The City has received a number of questions and concerns over the last several weeks regarding this owner-initiated assessment district. In order to thoroughly evaluate those issues, the City pulled the item from the October 28 Council agenda.”
The city said staff will work with its assessment engineer, financial team and legal team to review the issues and determine what should happen next.
“The City of Palm Springs values the input of our residents, and will be considering that input to ensure an outcome that is legally appropriate and fair to all of the parties,” the statement continued.
News Channel 3 also asked city officials whether removing the item from the agenda would formally postpone the public hearing and assessment ballot count, and what would happen to ballots that homeowners had already submitted.
The city confirmed that both the public hearing and ballot tabulation are postponed.
Previously submitted ballots will remain unopened until the city determines its next course of action.
The assessment ballots are separate from the November 3 general election. They were issued to affected property owners as part of the process for determining whether the proposed assessments can move forward.
What happens next?The undergrounding project has not been canceled.
City officials say their engineering, financial and legal teams will continue reviewing the concerns raised by property owners before determining the next steps.
As of Thursday, no new public hearing date has been announced.
It also remains unclear whether the city will make changes to the proposed assessments, financing arrangements or other aspects of the project following its review.
For now, homeowners on both sides of the issue will have to wait for the city’s next decision.
Stay with News Channel 3 for continuing coverage of the Old Las Palmas utility undergrounding proposal.
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