Residential Solar Installation — A Cautionary True Story

By Lorianna Kastrop, VP/CFO, The Kastrop Group, Inc. Architects

This is the most difficult blog that I’ve written, but I think it is important to share the bad experiences of residential construction as well as the good ones, so that our clients are well-informed.  We hope to help you avoid the same problem.

As you may have read in our blog post “Installing a Solar Power System for New Residential Construction” posted on August 2, 2021, we wrote that we received bids from three companies for a system with solar panels and battery for an Accessory Dwelling Unit (ADU) at our own home.  In this case, we were the clients, as well as the architectural firm for the project.  We did our due diligence and believed that we made a good choice when we picked SunPower to install our solar system.  We no longer believe that.  We will NOT recommend SunPower to our clients in the future.  The following is the true story of what we experienced as customers of that company and the outcome.

In our previous blog article, we wrote that SunPower asked us to provide our billings from Pacific Gas & Electric to determine the size of our new solar system.  We explained repeatedly that the ADU is new detached construction with a separate electrical meter and address.  Therefore, there were no energy use records from a prior period.  SunPower insisted that they needed the records for the past year as part of their process and that it was just a formality.  There was no reason that this information was necessary for our ADU, and we should have refused to provide it.  That is the main takeaway of this entire blog.  Do not, I repeat, do not provide the solar company with records from your main house if you are building a new detached ADU!

From that time on, the paperwork and application for service interconnection between our ADU and PG&E was handled incorrectly by SunPower.  To be fair, except for forgetting to install the emergency cut-off required by the Fire Department, SunPower did a good and prompt installation of the solar panels and battery system. 

What SunPower did incorrectly, and repeatedly, was the paperwork for PG&E.  When I was asked to sign the document, I refused because it was all wrong and did not correctly reference the ADU.  Apparently, the “back office” administrative team just did not understand the situation, and they dropped the ball on the paperwork.  The application to PG&E was not made in a prompt fashion.

The ADU had power being produced by the solar panels and stored in the battery.  Everything was working by late April 2021, and we paid the initial fee of $9,752.00 which was due upon completion of the installation.

We could not yet rent out the ADU because the system was not connected to the power grid. PG&E warned us that could result in damage to our system.  We were forced to shut everything down until the paperwork was corrected and an authorization provided by PG&E.  A SunPower technician came out on September 13^th to shut down the solar system until we had an interconnection agreement with PG&E. 

After dozens of back-and-forth emails with SunPower, we asked for help from Energy Pal, the broker who had connected us with SunPower in the first place.  On September 3, 2021, we received an email from Carlene Guishard at Energy Pal that they had referred our concerns about the interconnection with PG&E to a supervisor at SunPower named Ken Melton.  Ken did contact us, and we emailed him many times.  A small sample of the emails are listed below.  (This is not a complete list.)

I called PG&E Solar Department to find out the exact Energy Service Identification Number (ESAID), and meter number that were assigned to the ADU.  PG&E was very helpful each time I called.  I asked PG&E if I could fill out the paperwork instead of SunPower.  PG&E said no, it needed to be done by the solar company. 

I gave the information from PG&E to Ken by email.  On September 17^th I was sent a “revised” Interconnection Agreement, that still referenced the main house—utilizing the wrong square footage, etc.  SunPower STILL didn’t understand that the ADU was a different building!  I emailed Ken immediately, receiving no reply.  (He did not provide us with a phone number to call.)  On September 21, I emailed again, asking if he had received the previous message.  I continued to receive automated reminders from SunPower to sign the document which had the incorrect information.

After several more email exchanges with Ken Melton, it was determined that SunPower had never even applied for solar service for our ADU to PG&E because they were waiting for an “Authorization” to act on our behalf, signed by me, the homeowner.  (I had digitally signed that authorization back on May 24, 2021 but SunPower had overlooked it.) 

On October 7, I called the PG&E electric grid interconnection department again to verify the information they needed, and I forwarded it to Ken by email the same day.  PG&E had been waiting for the application from SunPower since April because they could see the new solar system had been operating at that time.  We again requested installation of the disconnect switch. 

On October 8, the installer came to install the disconnect switch and mistakenly put it on the main house, not the ADU.  Mike Kastrop emailed SunPower that it needed to be removed and moved to the detached ADU. 

Finally, Ken agreed to call me to work out the problems.  We spoke on October 11^th.  On October 12, Ken confirmed by email that a SunPower installation would come on the 19^th to remove the cutoff switch, patch the holes in the stucco, and install it on the ADU.   

The emergency power shutoff switch for our ADU.

On October 13, the corrected interconnection agreement was completed and signed.  I asked how quickly we could get our system back on, hoping to rent out the ADU by November 1^st.  On October 21, I called PG&E again and was told that since our account was not set up correctly by SunPower in February the account has been on “pending start status” with the PG&E billing department since then.  They said there is a 4-month backlog, but the representative said that she would ask for it to be “expedited”.  I wrote back to SunPower to complain about the further delay and to see if they could do anything to move the process faster.

On October 22 I forwarded a copy of the Authorization Agreement which I had signed back in May to SunPower to prove that was not the reason for the delays.  I received no reply to that email.

On October 27 I called PG&E again and was told they had not yet received the interconnection agreement from SunPower.   I called Carlene at Energy Pal to see if she could help us again by finding out why SunPower had not quickly sent the interconnection agreement to PG&E.

On November 3 SunPower sent a Reservation Request Form (SGIP) to Mike.  It should have been sent to me, since I am the account holder of the energy account.  It again listed our main house address not the ADU address, the wrong account i.d., the wrong service i.d., the wrong service agreement number, the wrong square footage, the wrong email address and the wrong phone number in the contact information. It seemed like we were back at square one with the paperwork.

Mike wrote to Ken Melton and copied the team at Energy Pal citing the “incompetence” of SunPower, our dissatisfaction, and asking for an immediate resolution.  I wrote back to SunPower using bold letters to list all the information that needed to be corrected on the SGIP form.  The SGIP form was one of the first forms that should have been initiated with PG&E at the beginning of the installation.  According to PG&E, SunPower could have sent it in anytime between February and early June to avoid all the delays we experienced. 

On November 10, Mike wrote to Ken Melton asking why we had not received a response and stating bluntly that the delay was costing us $3,000 per month in lost rent revenue. On the same day I wrote to Ken asking why I had not yet received a corrected SGIP form.

On November 11, this is the response from Ken Melton at SunPower: “The agent referenced the utility bill that was submitted at the beginning of your project. That utility bill is irrelevant to the interconnection and rebate process. I’m not certain why she defaulted to our normal process when we’ve all been involved with resolving the IA and PTO process for months. I did reach out to her and her manager to correct the form. Since the interconnection team has the authorization form, they’ve confirmed they can access your account to get the correct information for the SGIP form. We should have an updated copy of the form in your inbox today or a status update. Just to align here, this form is for your PG&E rebate, and it has no impact on your interconnection process for system activation. If you’ve received a copy of the utility bill for 28A Meadow Ln, please send it to me. It could help prevent further delays.” 

On the same day, November 11, I replied “The utility bill we provided at the beginning of the project, was at SunPower’s insistence.  We told everyone that our PG&E bill for the main house didn’t matter because the ADU was new construction.  I was told by SunPower that I needed to provide it anyway as part of “the process”.  Had I known how much trouble this would cause I would have refused SunPower’s request. We have not received any bill from PG&E for our ADU at 28A Meadow Lane.  We desperately want to be connected to PG&E so that we can restart the solar system for the ADU and get it rented out.”

On November 18, I called PG&E again and they still had not received the interconnection agreement from SunPower. PG&E told me that the reason we are not yet billed for the ADU is that the new ADU account is in “pending” status awaiting the solar 1) Application, 2) Agreement & Authorization, 3) Interconnection Agreement, all of which are supposed to be submitted by SunPower.  SunPower never did step 1 Application.  I wrote all of this to SunPower and to Energy Pal.  I stated that “I assume that steps 2&3 could be submitted immediately after PG&E receives the Application.  I have verified this information at least three times with PG&E from three different people.”

On November 19 Ken Melton called me.  He followed up with this in an email: “I shared the details we discussed and your project’s development with my manager, my Director, and both the Supervisor and Manager of the interconnection department.  I’ve also requested someone that works and understands all the details with this process immediately take ownership and contact you to discuss and assist with resolving this issue. I shared the link you sent me as well.”

On November 30, I received a confirmation from PG&E that the Interconnection was received.  PG&E approved the system to operate on December 8, 2021.  SunPower came to the ADU on December 11^th to complete the installation. I received a bill for the final payment from SunPower on December 14, with a due date of December 20.  We paid the remaining $14,628.00 due by December 31.  The ADU solar system was completed.  We signed the Solar System Certificate of Acceptance document from SunPower on January 6, 2022.

The original contract to purchase the system from SunPower via Energy Pal was signed on January 21, 2021 and completed almost one year later.  Since the system was physically ready and installed in late April, the paperwork problems, and the overlooked cut-off switch by SunPower caused about 9 months of delay in completion. 

Epilogue:  We listed the Casita for availability starting February 1, 2022, at $2,950.  The day the listing went live online we received 5 responses.  We deactivated the listing in 24 hours because it was rented to the first person who responded.  SunPower’s delays from May-January cost us over $26,000 in rental income.

The moral of the story:  Don’t let this happen to you.  Never provide energy usage bills for new detached construction.  Make sure that the solar company does not treat a detached unit as an addition to your main house.  Make sure that the solar company submits your new application to your energy company (PG&E, or the utility in your area) promptly.  Don’t sign anything from the solar company without reading it very carefully for errors.  Call the solar department of your energy company early in the process to check that the solar company is completing the paperwork in a timely and correct way.  For obvious reasons, we do not recommend SunPower.

Thanks for reading, and as always, we are Designing for Your Reality.

Communications for your Project—Mixing the Latest Technology with Best Practices

By Lorianna Kastrop, Vice President/CFO, The Kastrop Group, Inc., Architects

Hello there, new client!  Yes, we know you would like to text us or call our cell phones whenever you wish. It’s convenient for you and it is efficient to keep the communication lines open on your project.  Here’s why we recommend that you continue to communicate with us via our company phone or by email. 

First, we have many projects in the office in various stages of effort.  We do not take calls while we are in project meetings or on job sites, so it is best to call the office and they can communicate when we will be available for a callback with you or put you through to voicemail.  We receive notifications on our devices whenever a voicemail is recorded.  We also want our employees to have a healthy work/life balance and if they take client calls on their personal cell phones, they would be working 24/7.  That’s not sustainable.

Second, text messages are difficult to log and track.  Text messages tend to be less formal and piecemeal, being sent on a small screen, very on-the-go.  Emails allow us to keep our correspondence accurate, clear, and concise, improving our overall efficiency on your project.  We read and log every email and have a process to follow-up.  Text messages could “drop through the cracks” and not get the same attention as email communications.

Lastly, and most importantly, we need to be able to document what has been said and done about any ongoing issues on your project.  For example, we may have obtained an approval from a City department about your project and then another City employee contradicts the approval.  With email, we can easily show that the approval was documented, and work proceeded accordingly.  We can prove follow-up communications with you, our Client, and the General Contractor.  With this meticulous amount of documentation, we can avoid confrontations and reversals in the permit approval process.

So, we hope that you will understand, and appreciate, that it is in your best interest to use the slightly older technology of email and office voicemails to document your project.  I fully expect to get feedback from someone about how to track, print and store text messages in the same way that we handle email.  Maybe it is already happening, and we just haven’t implemented software to do it.  We are still on that journey with our systems, and we hope to advance as we learn. 

Thanks for reading, and as always, we are Designing for Your Reality. 

Consider a Roof Garden for Safer Gathering Space (Part 2)

By D. Michael Kastrop, A.I.A., Principal Architect, The Kastrop Group, Inc.

Being on top of the roof exposes you to weather, including sun, wind, and rain.  Sunlight can be controlled using trellis structures and umbrellas.  Note that umbrellas and furniture need to be well secured to the roof so that they do not lift and blow off the roof in a big storm.  Consider heavy-duty commercial grade outdoor furniture that has attachments for bolting it to the roof.  We do not recommend using standard residential patio furniture.  Sunbrella ® fabric wears well in sun and rain.  It is easy to clean.  We recommend that any cushions used have sewn-on loops so that the cushions can be zip-tied to the furniture.  (The loops can be added if the cushions don’t come with them built-in, but if you add them be sure to use thickly-corded loop material and heavy-duty thread that is rated for being in the sun, such as used in curtains.  Any fabric store can recommend what you need.)

The wind generally blows in one prevailing direction (and maybe a secondary direction during parts of the year), so it is possible to include partial glass partitions in the design to block the wind from the prevailing direction while still maintaining the rooftop views.  These need to be placed far enough from the roof edge to allow for cleaning.

Photo of the roof garden we recently completed for a San Mateo office building which included glass partitions and an accessible ramp.

As mentioned in the last blog, it is important to replace the roof before creating the Roof Garden.  It must drain well to roof drains and overflow spouts and be completely watertight.  Of course, you don’t want people walking directly on the roofing surface, so pavers should be installed for a good, durable-wear surface.  We recommend a grid system mounted on adjustable feet for paving.  There are many choices of finish pavers that can be installed.  The important features to look for are durability and light weight.  The weight of the pavers should be included in determining any structural reinforcing that is required. 

Construction progress photo of the pavers and grid mounting system for our roof deck project in Burlingame.

The color of the roof material will be a big factor in the comfort of the outdoor Roof Garden.  We recommend light-colored roofing as well as a light-colored paver material to reduce the summer roof heat absorption.  Some of the materials we have used include IPE wood, porcelain pavers and planks, concrete pavers, and composite wood planks.  Again, be sure to include the thickness and weight of the paver material in your structural design.

Make sure that you include a water spigot for drip irrigation and cleaning and waterproof electrical outlets.  Plant selection is best done with the advice of a local master gardener or horticultural specialist.  Trees can create issues with weight and toppling in high winds.  We recommend that you select full-sun, drought-tolerant plants to keep the watering to a minimum.  Set up a drip irrigation system   Plants that lose their blossoms or drop leaves in a heavy afternoon breeze should be avoided, for less sweeping or leaf-blowing clean-up.  Putting in a spreading groundcover between the larger plants will help to keep the soil from blowing as well.

See photos here of a completed Roof Garden project.  Thank you for reading, and as always, we are Designing for Your Reality. 

Installing a Solar Power System for New Residential Construction

By D. Michael Kastrop, A.I.A., Principal Architect and Lorianna Kastrop, VP/CFO, The Kastrop Group, Architects

Adding solar energy systems to new and existing buildings is an important step in reducing our reliance on fossil fuels (coal and natural gas) and less environmentally-friendly energy sources such as nuclear power plants.  Building codes are changing as more communities require solar power to be used in construction to reduce loads on an aging and inadequate power grid infrastructure.  There are tax incentives available to encourage homeowners to add solar power to their residences.  Residential solar power is big business these days.  Installers are very familiar with and competent at retrofitting existing homes with solar panels and systems.  They can use the past year of bills from your existing power company to determine the amount of energy you typically use.  Unfortunately, that data is not available when you are building a new home that is primarily going to be solar-powered. 

When we started building a 699 S.F. Accessory Dwelling Unit in our backyard, the solar companies bidding on the project were very erratic in determining system size and battery capacity.  That meant that their bids were VERY different in cost and energy production.  It seemed to us that they didn’t know how to use the architectural plans that they received to determine the projected power use. 

The following is information on lessons learned from this first-hand experience.  We hope that these will help you avoid costly problems with your new home or ADU construction.

Start with determining your goals.  A common target would be to have the solar system provide 50% to 75% of your electrical needs in a new residential building.  If you want to go to 100% and be able to be off the grid, the cost increases quite a bit.  Also, decide if you want to pair your solar panels with a home battery.  That adds cost, but it allows your home to have power during outages.  Depending on weather, and if you reduce load by not using appliances that are non-essential, you could stay powered by your home battery while waiting for the power company to re-establish service.  That could be a real benefit in an emergency.   Determine what appliances and systems are critical and how long they will be needed if the power is off.  For example, you will probably want your refrigerator, overhead lights, the microwave, and the HVAC system.  In our casita (ADU), we will not use the washer/dryer and the electric range during a power outage, as they will be big drains on the battery.   You may be required to have a separate electrical meter from the main house.  This is usually required if the ADU will have a separate address or suite number.

Ask your architect to design your ADU with the maximum south facing roof area possible.  Think about where the home battery will be installed so that it is in an inconspicuous place.  Consider existing landscaping.  Will trees need to be trimmed or removed to allow the sun to hit the roof?   It is also important that your ADU is very energy efficient.  Specifying additional insulation, LED lights, and good quality windows are a few of the details that your architect can include for energy efficiency.

The solar companies are almost all geared toward selling and installing in the residential market as a retrofit and it is difficult to get them to shift gears to do new construction.  The first thing they will ask you for is your electrical bill for the past 12 months.  After talking to several companies and getting basically nowhere, we ended up finding EnergyPal.  They are basically a broker that represents several solar companies.   Marcus Joo at EnergyPal worked with us to get the right fit for our project. 

We received bids from three solar companies.  These bids do not reflect an expected 26% solar tax credit when we file our federal tax return for 2021.  They also do not include the Self-Generation Incentive Program (SGIP) rebate available from your California energy provider; for us that is Pacific Gas & Electric (PG&E).  The SGIP rebate is approximately 15-20% of the solar home battery cost (not the panels).  We must apply for that rebate ourselves.  So, the following bids are what gets paid up-front to the solar company before any tax credits or rebates that might bring down the net price of the system.

Luminalt Solar Energy Solutions bid $17,315 for a Tesla Powerwall battery storage system and installation.  On top of that they bid $26,765 for 11 Sunpower photovoltaic solar panels and inverters, with a power rating of 4.51 kW system.  That’s $44,080 for the total system.  Their bid showed that as being enough energy to power our main house of 2,000 S.F., not our little casita.

The bid we received from Sunrun was more affordable, but the system was even bigger.  It had 16 LG panels, and 1 inverter, and 1 LG battery for a 5.68 kW system.  The price was $29,867. 

The last bid was from Sunpower.  The price was $24,380 for a much smaller system of 2.68 kW.  It has 8 panels, 1 inverter and the SunVault storage system (battery). 

We chose Sunpower not just based on price, but on the more closely matched power production based on the expected usage.  In addition, Sunpower has been a solar power manufacturer since 1983 and is based in San Jose, CA, which avoided some of the major supply chain problems experienced during the pandemic in getting panels from other parts of the country or overseas.  Their warranty is 25 years and includes replacement/repair and labor.  They make their own SunVault battery that has a greater capacity than the Tesla Power Wall and can handle more of the home circuits.  We designed our roof to be able to fit up to 12 solar panels, but the design only required 8 panels and a single battery ….and yes, we still had to provide a copy of our main house’s utility bill to get the process started, even though our main house was not being powered by their system!

Solar panels usually produce between 250 and 400 watts of power.  Sunpower’s panels rate 380-400 kw per year.  There are variables based on your roof orientation, shading and hours of sun (time of the year). Our system for our ADU is designed to provide 3,157 kW per year with our estimated usage of 3,684.  This covers 86% of the projected use. 

Batteries:  We looked at two batteries.  The Tesla Power Wall limits you to four 20A circuits and then you buy another Power Wall if you need to expand.  It is our understanding that the Power Wall requires recharging when it is down to 30% capacity, and we wanted one that will drain down farther in an emergency outage.  (We live in earthquake country, after all.)  The SunPower SunVault system has a single battery that handles all eight of our ADU’s 20A circuits in power outages.  We are still learning the system, but we expect to be able to set our power preferences to apply the solar power and battery to engage during peak billing times so that we will be “off-the-grid” when power is most expensive. 

The solar battery installed at our ADU.

Timing:  Plan ahead and order as soon as you can in the construction process.  The solar company will do their own drawings and apply for their own building permit, separate from the permit for the ADU construction.  This takes a long time!  They also will set up their own inspections with the Town/City Building Department. We signed the contract with the solar company on January 21^st and they are finishing up the final installation steps on July 27th.

Construction:  Try to get the solar company installer to work with the ADU electrician subcontractor to make the installation smoother.  (Remember, they always think retrofit, so explanations by the electrician may help.)

Permitting:  We found out that the Fire Department now requires an emergency shut-off for the solar system in the event of a fire so that emergency personnel can turn off all the power.  The solar company was not aware of that.  It also requires special signage at the home battery.  This signage is to alert first responders that there is a solar system and battery that will still have an electrical current even with the main switch shut off.  This emergency shut off switch requirement does change from area to area, but it is a great idea to have one installed. 

As you can see, the most important lesson from this experience is that if you are doing new construction you need to do some homework with your architect and your solar energy supplier to right-size the system for your actual projected energy use.  (And try to stop them from looking at the PG&E bills from a different house!!!) 

Thanks for reading, and as always, we are Designing for Your Reality.

ADU Costs: A Reality Check

By Lorianna Kastrop, Vice President/CFO, The Kastrop Group, Inc. Architects

You want to build an Accessory Dwelling Unit on your residential property.  How much will it cost?  That’s the big question and it’s difficult to answer.  I decided that I would share with Kastrop Group blog followers the general costs that we paid for an ADU on our own property.  I am showing the costs paid by category, knowing that your own local providers may be able to give you more competitive bids.  But this article will give you an idea of what this type of construction currently costs on the mid-Peninsula in the San Francisco Bay Area.  Please understand that there is some leeway in what you decide to spend, especially on the finishes.  Do not be discouraged if these costs are higher than what you had in mind.

It is also important to note that we were building during the COVID-19 epidemic.  Materials prices, especially lumber, have soared due to the interruption of supply chains and the ravages of west coast wildfires over the past few years.  The contractors may have taken longer (more labor cost) to complete the work, because to maintain social distance requirements there were fewer workers on the site. 

Another factor that increased the cost for us was having a fully handicap-accessible ADU that has lots of storage (custom cabinets).  We designed it to be suitable for us to live in after retirement if we should wish.  That resulted in choosing elements that include vaulted ceilings, clerestory windows, more elegant roof style and double thick walls.  Therefore, we did not always choose more economical solutions that would be adequate for a rental unit.

Photo of our ADU, taken by Mike Kastrop.

On the other hand, we got preferred pricing as a professional courtesy from the engineers and the general contractor because we have worked together on many projects.  Since our Principal Architect D. Michael Kastrop, AIA was working on this project for himself, his time was heavily discounted as well.  Normally the Professional Fees are about 8-12% of the construction cost.  For us they were less than 5%.   

We spent $470 per square foot to build our ADU.  I know, that sounds like a crazy amount of money.  But here’s how it broke down:

Permits and fees:

$8,136

includes planning & building permits, school impact fees, new electrical meter, new street address processing fee

Professional fees:

$15,070

includes architect, surveyor, structural engineer, mechanical/electrical/plumbing engineer, Title 24

Landscape:

$9,749

includes tree removal, landscape repair & planting after construction

General Contractor:

$247,661

includes sub-contractors for custom cabinets and painting

Solar system:

$24,380

includes panels & a high-capacity home battery

Purchase & Installs:

$23,582

appliances, hardware, light fixtures, doors, windows, skylights, countertops, tile, accessibility hardware, flooring, purchased by owner and installed by contractor

Total:

$328,578

for a 699 square foot ADU

Note:  These numbers do not include any contents or furnishings. 

It is always a big step to start a construction project.  Plan ahead and arrange your financing so that you don’t get caught short.  We usually tell our clients to add a 10 to 15% contingency to cover unanticipated costs.  In this case, we initially budgeted $300,000, so we did fall within that +10% margin.  The bottom line is that ADU’s cost more per square foot than ordinary residential construction.  See our website for more photos of the completed ADU at:

https://www.kastropgroup.com/kastrop-adu

Thanks for reading and as always, we are “Designing for Your Reality”.

ADU Construction: Homeowner Purchase & Install Decisions

By Lorianna Kastrop, VP/CFO, The Kastrop Group, Inc. Architects

You’ve been working with a qualified licensed Architect and hired a recommended licensed General Contractor.  So, you can now just sit back and wait for your ADU to be completed, right?  Wrong!  There are likely to be many decisions that you will be making in collaboration with your architect and contractor to customize the space to fit your needs.  Typically, the contract will call for several items to be Purchased by Owner/Installed by Contractor.  We call these P&I.  P&I can include appliances, light fixtures, countertops, sinks, paint, tile, and other installed décor items like door & cabinet hardware. 

For our ADU we also selected flooring, doors & windows, skylights, accessible elements such as the shower stall and toilet, and more.  The decisions must be made quickly, and orders placed, so that construction is not slowed down. 

What is the best process to make these decisions for customizing the space without going down a rabbit hole and taking too much time? 

1. Check with your General Contractor about which P&I items are needed and when they will be installed.
2. Start with your budget.  If you want very high-end finishes and custom items, you may want to work with an Interior Designer who can help you decide and order quickly since these items typically are not available to ship overnight.  If you are on a tight budget and have time to scour the internet for deals, start with your favorite retailers and see what is available in stock and can ship within the needed window of time.  Once you have an idea of prices, don’t forget to check with your local brick-and-mortar retailers, who will give you more personalized service (and support the local economy).
3. Major items like cabinetry, appliances, tile, countertops, paint, and flooring are items that you should see in person at a showroom and purchase locally.  Keep in mind that the built-in items are more expensive and difficult to change later.  Pick those with care.
4. Once you have selected a few of your built-in finishes, you will have a palette to work with for the rest of your décor—the wood color for your cabinets, the wall paint, the flooring, the countertops, and the tile should all be selected to complement and enhance each other.  Take samples with you when you are shopping so that you can see how the colors and finishes work together.  (Cell phone photos are not good for this—the colors are not accurate enough.)
5. If looking online for purchases, use as many clarifying words or search features as you can for your search to narrow the number of results.  Typical features are price, customer ratings, in-stock, color, and size.  Once you have an idea of what you like (and have discussed it with your significant other), don’t forget to check discount sites like Groupon, Amazon, or eBay to see if you can get a bargain.  Put the items that you like best in your online “cart” or on a saved list of favorites so that you can find them again later to make a final decision.
6. Color variations matter.  For example, if you are working with the color gray, you need to decide on a brown-tinged gray, or something that is bluer.  Whites can be warm or cool.  Knowing your accent colors and the complementary colors will help you.  There is a lot of information available about color selection online or in home decorating magazines.  Paint companies are very helpful in providing color palettes and matching neutrals with accent colors.
7. For a small space, like an ADU, it will look bigger if you decorate it as one space instead of as separate rooms.  In other words, you do not have to pick out different flooring or paint for each room.
8. Stay consistent on finish items.  For example, will your hardware be a brushed finish or shiny?  Will you be using a finish that stands out, like copper or brass?  Try not to use different colors of hardware.  This also applies to lighting fixtures.

Choosing our countertop. Remember to have your other selected finishes handy as you refine your palette.

Costs are the big question.  Everyone asks about costs.  With our ADU we knew that we would be using it ourselves sometime in the future, and we decided to make it accessible, which adds to the cost.  We did not always go with the lowest cost alternative.  My next blog article will get into some more specifics about our construction expenses.  So please check back to www.kastropgroup.com/blog

On a personal level, as the “client” in this scenario, the decisions were sometimes difficult, often rushed, many were costly, and most at least a little bit stressful.  I am very sympathetic with clients going through this process.  Don’t second-guess yourself.  Do your research, make the best decision you can and move on. 

Some examples of difficulties that we encountered include the following:

We decided on a backsplash tile that I really liked and then the installer said the mosaic fell apart when he tried to cut it.  Not only did we have to buy replacement tile, but we lost money on the “custom” tile that we could not use. 

We ordered an appliance that was installed incorrectly and spent a lot of time and energy correcting the problem. 

Some of the products and installers did not arrive on schedule or finish in the agreed-upon time window.

The solar company was unreliable and pushed off the installation date twice.  I will write a separate blog article about solar installation—both providers and sales reps.  There is a big push for solar installation in California, but the companies are lagging in both sales analysis of client needs and installation.  In fact, they are just getting started on understanding how to handle new construction, not just retrofitting existing homes.

On the other hand, we congratulate our General Contractor on pushing to get everything completed by our absolute deadline, which is my surgery date for knee replacement.  (I wouldn’t recommend scheduling surgery as an incentive for making sure your construction is done in time.  I know that several of our pregnant clients did not have the construction done in time for the baby’s arrival.)  But in our case, it helped everyone stay focused on a completion date.

Thanks for reading, and as always, we are “Designing for Your Reality”.

Building an ADU: Part 3 Demolition

By Lorianna Kastrop, VP/CFO, The Kastrop Group, Inc., Architects

This is a continuation of our series on building an ADU.  Mike and I are building one in our own backyard.  In this blog post I would like to reflect on the emotional impact of construction on the affected homeowners.  When thinking of construction, most people think of things being created, not destroyed.  The fact is, for construction, even construction from the ground up, some demolition will have to occur.  This can consist of clearing vegetation and trees, digging the trenches for utilities, and perhaps removing paving, a deck, or other structures.  Then, there will be digging for the foundation.  Even if you have mentally accepted this inevitability, the actual demolition can have an impact.  It can range from a mild annoyance at the mess to a sense of devastation and loss. 

I like things to be neat and organized.  I enjoy the backyard—the plants, the deck, the patio.  I like to read and eat outside if the weather allows.  Now the backyard is torn up.  There is a big trench, and with rain expected, it is going to be muddy.  I admit to feeling disrupted and unhappy.  The destruction in the yard is causing mental and physical reactions that are negative.  I was not expecting the intensity of these feelings.  I thought I was prepared, but I was not.

The “2ft wide trench” in our backyard. As you can see, the footprint of impact is much wider than “2ft”.

If you are remodeling your home, it could be even worse.  You may be tearing out walls and changing rooms that hold memories.  Even if you look forward to the new space you will be creating, the old space held meaning for you.  I recommend that you try to prepare yourself to experience the loss, and to find coping mechanisms that can help you accept the demolition before renewal and creation. 

My coping mechanism, besides writing this blog, is to visualize the completed project.  You can get sketches and renderings from your architect.  You can clip photos from design and architectural magazines that are inspirational.  Hang them up on the wall or pin them on a vision board.  Try to keep your emotions focused on the journey, and not just the status of your project now.  If you like photography, create a photobook of all the steps on the road to completion of your dream project.

The other emotional impact is the financial one. You have planned and saved, obtained the construction loan and are ready to go.  But when it is time to start spending the money you may feel resistant.  I did not fully anticipate how hard it is to write checks for many thousands of dollars out of our own checking account—even though I signed the contracts and made the commitments to pay out those funds.  It is disconcerting, maybe even a little bit frightening.  Those feelings are normal!  It is reasonable to sense the risk involved in spending large amounts of cash. 

Take a deep breath and create your spreadsheet.  In the first column, make a list of the planned expenditures—the General Contract, the permit fees, and the payments to other professionals such as architecture and engineering.  Don’t forget to include a “contingency” amount—usually 10% for unforeseen costs.  There are probably some construction costs (materials, delivery fees, appliances, etc.) that are not included in the General Contract.  Your architect can help you create this list of planned expenditures.  In the second column, start listing your actual payments as you go—contractor progress payments, as well as the add-ons for supplies, unanticipated costs, fees, repairs, etc.  Note the amount paid, who it was paid to, the date paid and the method of payment.  This will also help when you need to obtain lien releases from subcontractors.

Then create a third column for everything that you might spend on the project, including furniture & décor that you may wish to buy.  In this column you can dream a little.  It could be a long list.  This is the column where you can make changes if you start feeling tight on funds.  For example, I was looking at designer shower stalls.  I priced them out on several websites.  I decided on my favorites.  But ultimately, I believe we are going to go with something simpler and more traditional as included in the contractor’s bid.  I allowed myself to dream a little, but the reality is that we probably won’t spend the extra money unless the project seems to be coming in under budget.  And I’m OK with that.  I needed to go down that road for a little way before I turned back.

The list gives you a feeling of control.  You don’t have to obsess about the huge payments in the second column, because they are already anticipated in the first column.  They are “on the list”.  They are expected.  They are part of the process to your goal. 

In writing this blog post, I hope that I have given voice to experiences that many of our clients have experienced and will experience.  We understand and will help you get through this disruptive process of demolition and construction. 

Thanks for reading, and as always, we are “Designing for Your Reality”.

Building an ADU: Part 2 Ordering Finishes

By Lorianna Kastrop, VP/CFO, The Kastrop Group, Inc. Architects

I’m writing this in a state of aggravation, which I will explain below.  This is to give you a few tips and warnings for ordering your own finishes to be installed in your ADU (Accessory Dwelling Unit).  For many people, customizing your space is a joy, not a chore.  You can use your own taste, style, imagination, budget, and free time to get just the look you want.  There are so many choices available, and most of them can be easily researched on the internet.

You will want to decide on a style, such as modern (which can include Danish Modern and many other choices), or maybe cottage (such as Cape Cod, or beachfront), or even something traditional (Victorian, Georgian).  You could go rustic, with a casual farmhouse feel, or trendy with bold colors and angular edges.  I tend to like things that have curves and look organic, with colors that feel soft, cozy, and natural such as mossy green, caramel brown, or beige.  My husband really likes ocean tones of navy, aqua and greyish blue.  Anyway, the choices are endless, so you need to settle on your preferences to narrow it down. 

Keep in mind that some colors & finishes are difficult to change later (floors, tiles, countertops, installed fixtures, and appliances).  Things that are easy to change are paint, rugs, furnishings, and décor.  Make bolder choices on things that are easy to change and use the more neutral choices in your palette on the hard to change items.  That way when you want a “new look” you can do it without difficulty.

Usually, if you want to buy your own products your General Contractor is happy to oblige.  Your GC may have given an “allowance” in his/her bid for things like paint, flooring, carpeting, lighting fixtures, hardware, and appliances.  Contractors have experience ordering these products for on-time delivery at the best price available.  But if you don’t want his/her “standard” product you can ask what the “allowance” for that item is and then go out and pick your own version.  You will, of course, have to pay any upcharge between the bid amount and the cost for the item you choose.  You may be able to get a credit on the construction cost if you get the item for less than the allowance.

Here’s the aggravating story that I want to share.  We received a printed advertisement from Costco for flooring.  I had been looking at luxury vinyl tile (LVT) for our ADU.  Since it is such a small space, it is not recommended to pick a different flooring for each room.  I felt that a neutral flooring that will be easy to maintain, reliable and fit every room would be a good idea.  LVT comes in a wide variety of nice colors and patterns.  The reliability comes from the quality, and of course, you get what you pay for with LVT.  Many of the low-cost brands are very thin, typically 3 mm or less.  They might not hold up well in high traffic areas.  On the other hand, for not too much more money you can get thicker flooring that will be long-lasting.  The trick is to look online at lots of vendors.  I searched at Wayfair, Home Depot, Lowe’s and Costco.  Costco’s ad offered Mohawk 5mm flooring with 1 mm pad that is waterproof.  We checked with our GC and he said it was a good price and we should go for it.  The ad said, “no limit”, so we could buy enough for the whole ADU.  The sale had not started yet, so I put an alert on my calendar. 

I understand that when good promotions occur, many contractors buy out all the stock for re-sale if they have storage space available.  I wanted to get a jump on the other buyers, so I went online to Costco at 9:00 pm Pacific time to see if the sale started at 12 am Eastern time.  Nope, the regular price of $44.99 a case was still posted.  I showed my husband the colors available and we made a choice.  He offered to wait up until midnight to buy our 35 cases when the promotion of $10/case discount started.  That would be a savings of $350 plus tax, and well worth the lost sleep.

When I awoke, I asked if he made the purchase, and indeed he had.  But, he said, the price before discount had gone up to $49.99 a case!  Basically, Costco had advertised the $10 off, but then jacked up the price by $5, so the actual discount was only $5 per case to $39.99.  I was appalled and was sure that Costco would make good on the advertised price.  I started an online chat with their customer service at 7:30 am.  I explained the situation to the first representative, who couldn’t help me.  OK, I asked her to connect me with her supervisor.  They couldn’t transfer the “chat” conversation online, but she waited until her supervisor called me on another phone. The supervisor called me, but also was no help.  She said that the printed brochure was for items purchased in Costco warehouses only and didn’t apply to online sales.  I said, that would be fine except that the online sale price was the same as the warehouse price the day before the sale started, so the $10 off should still apply.  They can’t increase the price at the same time the sale starts.  It is false advertising.  She kept saying that there was nothing she could do, and she said, “I apologize for the inconvenience” multiple times.  I asked to speak to her supervisor. 

This is when it got weird.  I was put on hold for a very long time—over an hour.   I left the phone on “speaker mode” and took a shower, got dressed, and went to work.  Every few minutes the 1^st supervisor would come on the line to see if I were still waiting, and I said, “Yes, I am waiting, thank you”.  At around 9:30 am the 1^st supervisor said she was “speaking to” her supervisor and explaining the situation.  I never spoke to the 2^nd supervisor.  I explained over and over that I didn’t care about the warehouse price versus the online price.  I only cared that they increased the online price the same minute the sale went into effect, which meant that the “$10 discount” was a scam.  (By the way, there was no language barrier, everyone I spoke to had excellent English skills and nice manners.)

Finally, I was told that the 2^nd supervisor offered a credit, but it was not close to covering the cost differential of the sudden price increase.  Take it or leave it.  The 2^nd supervisor never spoke to me, nor did anyone I spoke to acknowledge my long-term membership or considerable history of purchasing with Costco.  I am now very aggravated with Costco, a company I used to believe was reliable.  Be forewarned.

A lesson that I have learned from this experience (besides being very suspicious of Costco advertised prices) is that when you do online searches TAKE SCREEN SHOT PHOTOS of the exact item and price.  That way if they try to charge you differently, you have some evidence to back up your argument.

Happy ending, though, because the Costco warehouse near us had a very good supply of the item we wanted, and we bought it at the advertised price.  We cancelled the online order.  Please readers, be sure to check the actual retail store if you have one nearby.  They may beat the online price, as counter-intuitive as that may seem.  They hire local workers, they pay taxes to your local city or town, and they will usually provide you with better customer service.  I know, it’s more difficult than buying online and having items shipped to you.  I, too, love convenience.  But when you are talking about purchases worth hundreds or thousands of dollars, consider buying locally!

Thanks for reading, and as always, we are Designing for Your Reality.

Building an ADU – Part 1

By Lorianna Kastrop, VP/CFO, The Kastrop Group, Inc. Architects

Today I will blog about what I am learning as the client of my own architectural firm.  (Just to be clear, I am not an architect.  My husband Mike Kastrop is the Principal Architect at The Kastrop Group.  I handle administrative and financial matters.)  As residents of the San Francisco Bay Area, we are acutely aware of the housing shortage in our region, leading to skyrocketing housing costs and rents.  In our firm we have promoted and participated in the design of Accessory Dwelling Units to help provide more local housing options. 

Building an ADU/backyard cottage/granny unit, or whatever you like to call them, provides multiple benefits for homeowners.  The rental income from the ADU can help to offset mortgage and property tax expenses.  It improves security to have someone else on the property when the homeowner is away.  It facilitates aging-in-place for elderly homeowners.  It increases property value.

Renters of ADU’s gain important benefits as well.  The rents are often more affordable than other options.  You can live in a single-family neighborhood, rather than an apartment complex.  You may be able to find an ADU that allows you to own a pet.  You may find that the homeowner becomes a friend and helps you become familiar with the community.  You may be able to trade your services caring for the property in exchange for rent reduction, such as gardening or small home improvements/repairs.

Mike and I started thinking about building an ADU a few years ago.  We have a large backyard, so we knew that we have enough room for it.  I was reluctant only because I really value privacy and I couldn’t picture having someone around all the time if I wanted to just relax in my backyard.  Then Covid-19 hit, and I realized that I might like having someone around all the time, just to socialize with.  I have a friend who rents out part of her home and she tells me that she has had good experiences with her renters.  We also like the idea that we might be able to provide housing for family members or the adult children of our friends who cannot yet afford to buy a home in the Bay Area.  Our ADU could be perfect for a young couple starting out, a recent college graduate, or someone who has a job in Redwood City and would rather bike to work.

Construction starts on our ADU. The form boards show the outline.

Interest rates dropped so low that we could refinance our mortgage and get enough money to build the ADU.  I checked with our financial advisor and she was enthusiastic about it.  She said that for most people their home is their biggest financial asset, but it doesn’t produce income.  She showed me the projections for our financial status.  Even if we used below-market rent to run the calculations, the savings really add up.  It’s even more astonishing if we decide to move into the ADU and rent out our main residence.  So, I was convinced.  I told Mike, “Let’s do it!  I’ll get the loan.” 

As an architect, Mike worked with me to prioritize our goals.  In every construction project you must decide what you need and what is less critical.  With an ADU there will be space restrictions.  If you will be renting it, you want it to be low-maintenance and cost-efficient.  Our priorities were energy-efficiency, accessibility, and storage.  Mike designed the ADU to be all-electric (powered by solar panels and a home battery) so that it would be safe during the increasingly frequent summer heat waves and power outages.  It has double-width walls for tremendous insulation as well as sound-proofing.  We designed it to be accessible so we could have the option of moving into it comfortably when we are elderly.  (It will also make it available to differently-abled renters.)  We want it to feel roomy, so that means high ceilings.  Mike loves natural light, so he designed clerestory windows and specified Solatube skylights www.solatube.com .  I wanted storage, as much closet space and cabinets as possible.   I was willing to have a smaller living room in exchange for a walk-in closet in the bedroom.  Think about your electrical and technology needs in the design process.  We will have USB ports throughout the ADU, and we considered where computer monitors and the television would be located so that glare on the screens will be reduced.

Mike went to work on the design, and Marie, our Design Associate at The Kastrop Group, created the construction documents and did a lot of the research for materials.  Brian, our Project Manager, gave input based on his long experience with residential projects.  It was a team effort.  Once we had a design, we started getting bids.  Construction is always more expensive than you hope.  I will share the cost information in a future blog article. 

Foundation complete and wall framing begins.

I mistakenly believed that we didn’t have to pay school impact fees (taxes) on our ADU, but I checked the state ADU handbook (include the url here).  It clearly explains that while local jurisdictions can’t impose other types of impact fees (such as for parks), school impact fees are allowed.  We submitted our plans to the local high school district, and they called us to let us know the amount owed for the high school district and the elementary school district.  These 2 checks must be paid before you can get your building permit.  Because of the COVID-19 shut down I had to call and make an appointment to come to the High School District and drop off the checks.  I recommend that you call every agency in advance to find out their procedures before going there in person.  A lot of public agencies have new rules because of the pandemic.

We had more trouble getting a building permit than expected because our street has less water pressure than the City Fire Department recommends.  We didn’t want the extra expense of fire sprinklers (cost of about $20,000).  We know that CA state building code doesn’t require sprinklers for the ADU if the main house is not sprinklered.  Another ADU had been permitted on our street without sprinklers.  But the inadequate water pressure was a concern.  We checked with the head of the Public Works Department and he said that our street is scheduled to have the water main replaced within the next 2 years.  So, we feel confident that the problem will eventually be solved.  Since many towns have aging infrastructure, it is important to anticipate issues like this.  Check with your City early, possibly before your architect starts designing your ADU, to see what requirements might affect your plans.

An issue that affects many homeowners are existing trees on the property.  You cannot just cut down trees to build.  You may be required to get a tree permit or an arborist report.  We have a row of very tall Italian Cypress trees along the fence in our backyard.  They created too much shade for the solar panels.  We talked to the City Arborist and he was kind enough to come to our house and give his advice.  Since our trees have narrow trunks (less than 12 inches) and were not trees that need to be protected, he suggested cutting down three of them and replacing them with a nice shade-producing silk tree in another part of the yard.  That is our plan.

Framing almost complete. Trees removed.

The next issue is that the electrical panel needs an upgrade.  We are going from 100-amp to 200-amp service.  We contacted Pacific Gas & Electric to get going on that right away.  They have a long lead time, so you need to schedule months in advance.  We also decided to add a separate electrical meter so that the renters could have their own utility bill, which should be quite low due to the solar panel output. 

Keep in mind that an Accessory Dwelling Unit is an “accessory building” by definition.  It is not supposed to be considered an additional residential unit.  Other examples of an accessory building include a storage shed, a detached garage, or a pool cabana.  These are an accessory to the main residence, as is an Accessory Dwelling Unit.  But PG&E treats it as a separate residence, so you may be required to do a separate meter even if you don’t think you will need one.  Check this out in advance because it adds to your costs.  By the way, it is not easy to find the PG&E request form.  Log into your residential account at pge.com and click on “Start or Stop Service” on the left-hand side menu.  Then click on “New Construction” to get to the application form.  I highly recommend that you opt in for “Notifications” of project status updates as you will be waiting a while to hear back from them, and you don’t want to keep checking on your application.

Like many cities and towns, Redwood City requires you to get a separate address for the ADU, for public safety reasons.  They want police and fire to know that other people are living on the property.  You need to apply for that.  Go to your city’s website and type “ADU address application” in the search bar.  In Redwood City it is a one-page form that you send in and pay a fee of $144.  It will be assigned as Suite A at our address. 

We got two bids from General Contractors.  Good contractors are very busy in the Bay Area and you might need to wait to get on their schedule.  Give yourself plenty of time to find the right contractor for your project.  Cost is an important consideration, but you also want someone who communicates well, and keeps you informed as questions come up. 

Framing complete. Continuous rigid insulation installed around the double thick walls.

There will be many questions.  Today we picked out a front door for our cottage.  We also decided on brushed nickel (satin finish rather than shiny) for the finishes on the bathroom fixtures.  You may have specific requests for the appliances, cabinets, finishes, etc., to fit your needs and tastes.  Be sure to keep your GC informed as you move through the project.  By the way, as Architects we could have specified these details up front, but we find that the GC can be savvy about what is available and where to get it at a good price.  Working collaboratively with your GC and your architect can save you time and money.  By making these decisions with your General Contractor you avoid having to change out specified items that are unavailable or too expensive.

General Contractors may make suggestions for cost savings, recommended suppliers, or possibly things you can do to keep your costs down.  For example, we had our contractor bid the project with painting as an optional line item, because we may do some of that ourselves.  We are also going to buy the appliances ourselves.  Accessible appliances can be a little tricky to order.

Lumber prices are very high right now and some construction supplies (such as doors and windows) have long lead times.  Luckily, we have worked with our General Contractor on many other projects and he is making sure that our orders are submitted so that construction will proceed in a timely manner. 

An up to date photo of our ADU, with exterior finishes to be applied soon!

I hope you have enjoyed reading about our ADU project.  I plan to blog more information soon.  If you have questions or comments you can reach me at info@kastropgroup.com.  As always, we are “Designing for Your Reality”.  Stay healthy and best wishes for the new year.

The best resource for the new laws regarding ADUs: The Accessory Dwelling Unit Handbook

By Lorianna Kastrop, Vice President/CFO, The Kastrop Group, Inc. Architects

Sometimes even when you think you understand something, you get tripped up in the details.  This happened to me on an Accessory Dwelling Unit (ADU) project recently.  Our firm designed a 699 S.F. backyard cottage and I thought that under the new CA state laws that went into effect on January 1, 2020, no impact fees would be charged to the client.  Well, that is almost true.  The City and County do not charge any impact fees, but the school districts can still charge impact fees for units over 500 S.F. under the new laws. 

It took a little research to come to this realization, and that is because most of the news reports and articles about ADUs have used summaries of the changes to the law and therefore important details are lost or glossed over.  This article is an effort to help the average homeowner get a better resource for information and cut through the confusion.

In September, 2020 the California Department of Housing and Community Development published an online “Accessory Dwelling Unit Handbook”.  It is the best go-to resource that we have found to clarify the new rules in a format that is well-organized.  It has a clear Table of Contents, a State Standards Checklist, and copies of the Statutory Changes showing exactly what was amended in the new laws.  It even has a Bibliography if you want to pursue further research. 

Click here to view/download a copy of the ADU Handbook.Download

But the average homeowner only needs to look at the first half of the 41-page document: a 2-page introduction, a 3-page summary of recent changes, and 14 pages of Frequently Asked Questions.  This information is exactly what you need to get started on your ADU project and become knowledgeable about what you can or cannot do.  You will also learn the terminology to ask intelligent questions of the permitting agency (City or County), and your architect, engineer(s) and general contractor.

Government agencies are often taken for granted or criticized for missteps.  In this case we would like to thank and congratulate the CA Department of Housing and Community Development for a job well done.  They have filled a great need by providing this document.  The Dept. of HCD is elevating and promoting the intent of the state legislature when the pro-housing policies were passed.  Instead of acting as gatekeepers, they are acting as facilitators.  Bravo!!  We hope that our clients and others who are considering building an ADU will use the link above to download the handbook and take a look.  Let your friends and neighbors know about it too.  Plentiful and more affordable housing is an urgent need in California, and this is a step in the right direction.

Thanks for reading, and as always, we are Designing for Your Reality.