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HomeMy WebLinkAbout17 - Measure X Revised Cost EstimatesCITY OF NEWPORT BEACH CI'T'Y COUNCIL STAFF REPORT Agenda Item No. 17 September 12, 2006 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: City Manage r` s. Office Sharon Wood, Assistant City Manager 949- 644 -3222, swood @city;newport= beach.ca.us SUBJECT: Revised Cost Estimates for Initiative Requiring Voter Approval of Major Development Over As -Is Conditions (Measure X) RECOMMENDATION: Receive and file. DISCUSSION: The City Attorney presented a report which included an estimate of costs to the City and private property owners of the initiative requiring voter .approval of major development over as -is conditions (Measure X) on July 11, 2006: The same report was presented to the Economic Development Committee (EDC) on July 19, 2006. EDC noted that the report used an assumed hourly rate of $40. per hour for City staff time, rather than the actual hourly rate that is billed to development applicants (up to $135). The Committee also believed that additional costs could be quantified, with low and high estimates: to show the range of potential costs. Staff revised the cost estimates for the EDC meeting of August 16, 2006, at which time the Committee requested additional revisions, and directed staff to.present the cost estimates to the City Council as EDC's recommendations on what the range of costs is likely to be. The attached table differs from the estimates provided to the City Council in July in the following ways. City Costs ■ The cost of all staff time is calculated using hourly fees approved by the City Council, or actual hourly rates, including benefits and City overhead. ■ A one -time cost to prepare guidelines to implement the measure is included. ■ Annual ongoing costs for research and consultation with potential applicants are included. Revised Cost Estimates for Measure X September 12, 2006 Page 2 • Legal defense costs for one case are included in the total for one -time costs. • Ongoing City costs are given for one year and as a total over the course of 10 years (in current dollars). Property Owner Costs • A cost range for summer traffic analysis is included. • Election costs are included in the total costs for property owners. With the revisions recommended by EDC, the potential costs of the initiative to the City are estimated to be $95,300 - $139,200 one -time plus $47,253 - $73,649 annually. Over ten years, City costs could range from $567,830 - $875,690. Potential costs to property owners are estimated to range from $37,150 to $290,600 for each project that is subject to the provisions of the initiative. The EDC also raised the possibility that the City would be required to pay damages to a property owner if both Measure X and Proposition 90 pass in November. Proposition 90, on the State ballot provides that private property may not be taken or damaged for private use. Proposition 90 is written so that restrictive land use regulatory actions that result in substantial economic loss to private property, such as downzoning, would be considered "takings," for which the local government would be required to pay damages. The City Attorney has advised that it is likely, should Prop 90 pass, the City would be subject to a takings claim, if the development rights for a property were reduced from what the City's General Plan and zoning allow as a result of an election pursuant to Measure X. The City could be liable to pay damages for the reduced value of the property. However, it is impossible to estimate potential damages, since they would depend on the value of the property, the extent to which development rights were reduced, etc. Submitted by: SRaron Wood Assistant City Manager POTENTIAL COSTS INITIATIVE REQUIRING VOTER APPROVAL OF MAJOR DEVELOPMENT OVER AS -IS CONDITIONS City Costs — without Elections Item One -Time Low One -Time High Annual Ongoing Low Annual Ongoing High Specific Plan Preparation $16,000 $47,000 Specific Plan Review Preparation of Guidelines $37,800 $56,700 $5,000 $7,500 Programming for neighborhood tracking $7,500 $7,500 Maintenance of neighborhood tracking data TOTAL $37,150 $25,233z $44,609 Research and consultation with potential applicants $7,0204 $14,040 Summer traffic counts $15,000 $15,000 Legal Defense $50,000 $75,000 TOTAL $95,300 $139,200 $47,253 $73,64.9 TOTAL 10 -YEAR COST $567,830 $875,690 Assumes 200 -300 hours City Attorney @ $189 Assumes 1 -2 hours professional time per week @$135 +.5-1 hour clerical per day @$55 + 10- 15 min. engineer @ $95 per case (685 in FY 2005). Assumes 1 inquiry per week, requiring 1 -2 hours of professional time @ $135. Assumes one case; writ only. Property Owner Costs — per Project Item Low High Specific Plan Preparation $16,000 $47,000 Specific Plan Review $12,150 $21,600 Summer Traffic Analysis $5,000 $7,500 Election $4,000 $214,500 TOTAL $37,150 $290,600 Assumes 90 -120 professional hours, not including environmental review. Assumes 25% more than typical traffic study. Election costs are for consolidated and special elections. These costs could be shared by the City.