A cheaper-than-expected SDG&E cost estimate has triggered a new round of calculations for Del Mar's Utility Undergrounding Program, which has faced financial challenges tied directly to SDG&E costs.

Last year, the utility had estimated its share of costs for the Stratford Court South undergrounding district would total $3.6 million.

On April 21, staff reported to the City Council that a revised SDG&E estimate places the utility's costs at $1.6 million. That's a $2 million or 55% reduction.

As estimated, SDG&E's work-namely to install cable and connections, service cutovers, pole removals and engineering and inspection fees-would cost $145 per linear foot of trench. Earlier, for the Tewa Court/10^th Street undergrounding project, SDG&E's adjusted cost per linear foot was $219.

As for the Crest Canyon district, which is next in line for utility undergrounding, SDG&E anticipates reduced costs from its original, $4.9 million estimate.

The Crest Canyon bidding process, for both the City and SDG&E, will serve to further refine estimating costs estimates.

The Undergrounding Program seeks to remove utility poles and overhead cables throughout Del Mar. Based on current data, total costs range from $91 million to $93 million in today's dollars, down from a November 2024 estimate of $105 million.

According to SDG&E, lower-than-anticipated labor costs and a reduced scope of work are responsible for the price reductions.

Open staff report

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