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HomeMy WebLinkAbout23 - BA-072 - Underground Assessment District 69 - West Newport• May 24, 1999 CITY COUNCIL STUDY SESSION ITEM NO. 23 TO: Mayor and Members of the City Council FROM: Public Works Department SUBJECT: UNDERGROUND UTILITIES IN WEST NEWPORT (PROPOSED UNDERGROUND ASSESSMENT DISTRICT NO. 69) RECOMMENDATIONS: Authorize an advance to Underground Assessment District No. 69 in the amount of $247,800 to provide for the design of the project by Southern California Edison and Pacific Bell. Authorize a Budget Amendment to appropriate $47,800 from the General Fund unappropriated surplus to the Assessment District Capital Project Fund for proposed Assessment District No. 69, Account No. 7401- C5100212. DISCUSSION: City Council at their March 8, 1999, meeting directed staff to obtain estimates from Edison and Pacific Bell to determine design costs for undergrounding the overhead utilities in Underground Assessment District No. 69. Edison and Pacific Bell estimate that it will cost $60,000 and $187,800 respectively to design for the proposed underground district and have asked that the fees be deposited with them prior to commencement of design. The design estimate includes the entire district from the Santa Ana River to 23d Street. Petition signatures submitted to the City represents approximately 51% of the property owners as of May 1998 (The figure assumes that the City is considered as submitting a favorable petition for its park parcels). The property owners in West Newport are anxious to move forward with proposed Underground Assessment District No. 69 and are requesting that the City advance funds so that the district may move forward. The City has typically established 60% as a minimum number of petitions required to proceed with the formation of a district, not including City parcels. Since 1994 the City has advanced $55,000 to this district for assessment engineering. The next step is for the City to either advance design funds for the district if the City Council feels comfortable with petition signatures from owners representing 51% of the area within the district or to require additional petition signatures prior to advancing the funds. The proposed FY 1999 -2000 CIP budget provides CDBG funds for this district. At the time the district is formed and funded by the residents, the CDBG funds would be repaid and used for other revitilization projects in the community. The remaining $47,800 is being appropriated from SUBJECT: Underground Utilities in Newport Shores in West Newport (Proposed Underground Assessment District No. 69) May 24, 1999 Page 2 the General Fund unappropriated surplus to the Assessment Distirct Capital Project Fund, Account No. 7401- C5100212. The timeline chart below shows the steps that remain to complete the undergrounding process: ASSESSMENT DISTRICT NO. 69 ESTIMATED SCHEDULE MONTHS PROCESSING ITEM Start City Council awards funds for the design 6 -12 Edison prepares plans which will later be used by Pacific Bell Plan review 2 6 -8 Pacific Bell and Comcast prepare plans 1PIan review 2 2 -3 Edison and Pacific Bell submit formal estimates and Engineer's Report is prepared 1 Property owner information meeting is held 1 -2 Set and hold Public Hearing to vote on district 1 30 -day cash payment period 1 Bond sale 1 -2 lConstruction bids obtained 23 -34 JUntil construction begins Once engineering is completed and the assessment engineer has determined the assessment for each parcel, a public hearing must be held to allow the members of the district to respond. With the passage of Proposition No. 218, the City must send ballots to each property owner with the public hearing notices. If the City receives a majority of yes votes, the district will be formed and the City will recover the funds that it advanced to the district. If the City receives a majority of no votes by the close of the public hearing, the district will fail and the City will not be reimbursed for the money advanced to the district, approximately $300,000. R tfully S Itted, Don Webb Public Works Director By: chard L. Hoffstad , P.E. Development Engineer Attachments: Exhibit "A ", Boundary Maps of Proposed District Exhibit "B ", City Council Staff Report from March 8, 1999 F:\ Users \PBW\Shared\COUNCIL\FY98 -99 \May- 24\AD -69 Estimate.doc • • E • March 8, 1999 Study Session Agenda Item No. 2 TO: Mayor and Members of the City Council FROM: Public Works Department SUBJECT: UNDERGROUND UTILITIES IN WEST NEWPORT (PROPOSED UNDERGROUND ASSESSMENT DISTRICT NO. 69) RECOMMENDATIONS: Direct staff to move forward with Assessment District No. 69 between the Santa Ana River and 29`h Street and obtain design costs from the utility companies and bring back to the City Council for consideration of funding options to advance these costs. 2. Review the status of the other assessment districts. DISCUSSION: • The property owners in West Newport are anxious to move forward with proposed Underground Assessment District No. 69. The district was initiated in 1992 and the process of obtaining required petitions has been ongoing and the first petitions were submitted in 1994. The district was originally divided into 7 zones, A through G, with a proponent in each zone responsible for collecting the necessary petitions (see attached exhibits). E To date they have been able to obtain petition signatures from approximately 51% of the property owners. (That figure assumes that the City is considered as submitting a favorable petition for its park parcels). Berryman and Henigar Associates submitted an updated percentage of petition signatures in May 1998. The percentage of petitions in each zone, including the City Park parcels, are as follows: ZONES % OF PETITION SUBMITTED MAY 1998 A 62.06% B 55.81% C 73.57% D 47.76% E 53.79% F 49.92% G 26.80% OVERALL % 50.61% SUBJECT: UNDERGROUND UTILITIES IN NEWPORT SHORES IN WEST NEWPORT (PROPOSED UNDERGROUND ASSESSMENT DISTRICT NO. 69) March 8, 1999 Page 2 The City has typically established 60% as a minimum number of petitions required to • proceed with the formation of a district, not including City parcels, since the City has been neutral in the past. Since 1994 the City has advanced $55,000 for assessment engineering for this district. To proceed with the district, the next step is to obtain design estimates from Edison and Pacific Bell. A City advance of approximately $200,000 for the Edison and Pacific Bell designs will be needed. A loan from CDBG Funds for all or part of the $200,000 may be possible. The Ad -Hoc Committee, Promote Revitalization of our Peninsula, agreed with the concept of using CDBG Funds for this purpose. The timeline chart below shows the steps that remain to complete the undergrounding process: ASSESSMENT DISTRICT NO. 69 ESTIMATED SCHEDULE MONTHS PROCESSING ITEM Start City Council awards funds for the design 6 -12 Edison prepares plans which will later be used by Pacific Bell Plan review 2 6 8 Pacific Bell and Comcast prepare plans Plan review 2 2 -3 Edison and Pacific Bell submit formal estimates and Engineer's Report is prepared Property owner information meeting is held Set and hold Public Hearing to vote on district 30 -day cash payment period Bond sale Construction bids obtained 1 1 -2 1 1 1 -2 23 -34 until construction begins When engineering is completed and the assessment engineer has determined the assessment for each parcel, a public hearing must be held to allow the members of the district to respond. With the passage of Proposition No. 218, the City must send ballots to each property owner with the public hearing notices. If the City receives a majority of yes votes, the district will be formed and the City will recover the funds that it advanced to the district. If the City receives a majority of no votes by the close of the public hearing, the district will fail and the City will not be reimbursed for the money advanced to the district, approximately $255,000. The percentage of petitions can be increased slightly by reducing the scope of the • project to include only zones A through F, or by including all zones except the portion of 11MIS_11SYSIUserslPB Wl SharedI COUNCILIFY96- 991Mar•81AD- 69.doc SUBJECT: UNDERGROUND UTILITIES IN NEWPORT SHORES IN WEST NEWPORT (PROPOSED UNDERGROUND ASSESSMENT DISTRICT NO. 69) March 8. 1999 Page 3 • Zone G, easterly of 291h Street. The attached table (Exhibit "C ") explains both options. It is recommended that the area easterly of 29'h Street be deleted from the district. Attached are pictures that show the West Newport area as it exists today with overhead lines and a computer modified picture with overhead lines removed. There is no doubt that undergrounding would improve the appearance of the area. In addition to improving the visual appearance of the neighborhood, the undergrounding would remove poles from sidewalk areas. These poles reduce the width for pedestrian passage to less than 2 feet (see the 2 pictures of poles that are on Seashore Drive). If the City Council wishes to move forward with this district, it will take a minimum of 2 years before construction would begin. Edison's design could take 6 months to 1 year. Pacific Bell and Comcast's designs would take an additional 6 months. Currently the City has 8 undergrounding districts waiting for designs to be completed by Edison and /or Pacific Bell. There are 10 districts that are currently collecting signatures trying to qualify for a district formation. An oral report will be given. Respectfully submitted, • Don Webb P lic Works Director Richard L. Hoffstad , E. Development Engineer • Attachments: Exhibit "A ", Boundary Maps of Proposed District Exhibit "B ", Pictures showing West Newport with and without overhead lines Exhibit "C ", Letter from Berryman and Henigar dated September 10, 1998 \\MIS_t \SYS \Users\PB W \Sha red \COU NCI L \FY98 -99 \Mar- 8\AD- 69.doc P U � � OQ 'nt, ° Ld D Mnn F- En p0�pn71n V =Z E LJ cr- X: n �n LjF— CM ELI En O / • F- W Q F W O C3 �^ 3L u W Y W c z O e @� O W ¢ H lug U L b H m � OX � .. a- ML / ru m m Ln cn U CE CE w Cr J � J Ill Z a N C® Ld 0— J ... t9En 7 CM � Z 0 Ln Z M W � CM LLI =C = I-- � LLI 0 L M /n X91 v ®® 2 • Exhibit "All "o N�9• r / • / • O W / • O W F W Z F Z_ W W � Vi W ¢ 0 d' 0 � W / N o m O w O Z Z m Z % • ® % O U7 LJ LJ um) J J z ® w O O Q Q F / Z m cc CL CL 2 2 Ln Ln /• W C7 Z) ° o ° O w w Lnn W m 3 O 3 o J / J 1 ci- Ln 0 0 I 1 j O 1 O i 1 Z 1 r • A g> N \e A, W J Q U U7 O Z O Z W cm W J 0 w uop, L d v cn cu) 0 C3 LJ =z En w W~ LRJ ( ® ni Oc9 � MOK F— c - � Q1 C°I 6— � U9 cn o = 3 cn I� U' 0.l z C w ®WC® WY a b Q Zo LU?l FOX O �Nz � 3 OU Wpl- H cl: W ® N d Q' 3 i Cn U a_ N �f O d O W A g> N \e A, W J Q U U7 O Z O Z W cm W J • O 1 0 1 Exhibit "A" 0 w 0 C3 LJ w w 0 U W 0.l ti a a: 2 L O 2 Wpl- H Wpl- N Q' N L O O O W � � Z ti O (n (n J M W W Z >- J J 4 W 2 O O Q L CL d W N O N C3 C3 O O O > m 3 3 O Q • O 1 0 1 Exhibit "A" I � � Q W 0 2 Z o LJ ULLJ W ~ CM� M Q cu �l m WW Q O 3 cn N W Y z o V a o H OU H a: (Z Ln I---I F---I W W Q (D �a_ a m of W J v cn Z LaJ LaJ j O 6— En O Z z U) � O CD O J zz LLJ Co Z cc "Ob ,f- 47 J w w Of W J GExhibit "A" 0 Q W 0 o LJ V W H Q7 H a: (Z W W (D W U) m of m H ly H J W W Z Y J J Q W °a °a w vii z o o � w °o 0 0 > Ln w 3 3 0 1 1 � 1 I 0 O 1 � GExhibit "A" 0 Ll Of w J cr �- Lf1 _z o F- 0 zz o•" nIJ o U) W F— cn � Z 2Z � = (41 w J>- � W F- N �� m Z: LL, F- W C) � Ln - >- � � Lj LJ � O� Z O m C!) O LL 3 ©� 2 m OU Of Q' F O Z fi F- J CD y� fc-)L- Gn Ll Of w J cr �- Lf1 _z o Exhibit "A" F- 0 zz Exhibit "A" 0 w o w w (D U w m 2 m Of Q' F O Q' Gn .N. U) F C7 O O w L. ti O W W J m >- J J C=l w w O O Q z 0 X CL 2 W N w o o w c m LLI m 3 O Q J 1 1 0 O 0 1 ' 1 i Exhibit "A" e� 0 w Z LeJ c` En LLJ lsl 3 W 0 : � Cr- F— C3 E m L— U W w w «� w WF- �CC en 0) =DLO F-- U- en Q m Lp _L, as oR � z �oM LO U O zW O=� 3Un WY we u Q (�, ZO Ln � cmC1N OU O to ii H m b N 00� CO [OY cr- 0 O O W Y� i W �- cUn — Z o C- z z O Z W t, W J • O Exhibit "A!' i 9 9 0 w 0 C3 E w w 0 z w m �WW 2 O w ti m Q� N O O W H H Z Z O (n to J >- J J O W 2 O O Q ¢ a a o = N °O °O � w twn O O O > cn W 3 3 O Q • O Exhibit "A!' i 9 9 i • U .i �,•rja� ra ^ • �0a .' ' f rr�•J a G =" III I�� Q� ^��J - • - - . rj -XV, • - ----- ._.. - Exhibit "At, Cl-) � RA Z, �� - Vic:•` %� • }� r • 47' 5 SE ASHORE p�VE AT '� ff Exhibit "S" z a 0 x x w a z a F w H N H A z x a w o � x x w a 0 w w as 0 0 c. ago i L>/A\ �V >y _ J H4S 1 � � 1 1 � ZT� Exhibit "C" PETITION PERCENTAGE CALCULATIONS . 1. Summary of petition area to date, by original zone. 2. Summary of petition area to date, Zones A - F. All Petition % excluding Petition % excluding Zone Petition % questionable petitions' Utility Agrmts" A 62.06% 58.13% 61.34% B 55.81% 54.96% 55.81% C 73.57% 73.57% 73.57% D 47.76% 44.98% 46.88% E 53.79% 51.58% 51.01% F 49.92% 48.03% 49.10% G 26.80% 24.16% 25.47% 50.61% 48.36% 49.68% 2. Summary of petition area to date, Zones A - F. 3. Summary of petition area to date, Zones A - G (only through 29`" Street). All Petition %excluding Petition %excluding Zone Petition % questionable petitions' Utility Agrmts" A 62.06% 58.13% 61.34% 8 55.81% 54.96% 55.81% C 73.57% 73.57% 73.57% D 47.76% 44.98% 46.88% E 53.79% 51.58% 51.01% • F 49.92% 48.03% 49.10% G 55.03% 52.85% 54.17% 3. Summary of petition area to date, Zones A - G (only through 29`" Street). Questionable petitions are those signed by a person with the same last name as the owner of record. Parcels with Utility Agreements are required to vote in favor of the District but do not necessarily have petitions riled. All Petition %excluding Petition %excluding Zone Petition % questionable petitions' Utility Agrmts" A 62.06% 58.13% 61.34% B 55.81% 54.96% 55,81% C 73.57% 73.57% 73.57% D 47.76% 44.98% 46.88% E 53.79% 51.58% 51.01% F 49.92% 48.03% 49.10% G 34.16% 29.35% 31.73% 53.10% 50.67% 52.09% Questionable petitions are those signed by a person with the same last name as the owner of record. Parcels with Utility Agreements are required to vote in favor of the District but do not necessarily have petitions riled. City of Newport Beach BUDGET AMENDMENT 1998 -99 )ECT ON BUDGETARY FUND BALANCE: Increase Revenue Estimates Increase Budget Appropriations AND X Transfer Budget Appropriations from existing budget appropriations from additional estimated revenues Hx from unappropriated fund balance EXPLANATION: NO. BA- 072 AMOUNT: $a7,aoo.00 Increase in Budgetary Fund Balance Decrease in Budgetary Fund Balance No effect on Budgetary Fund Balance This budget amendment is requested to provide for the following: To advance $47,800 to the Assessment District Capital Project account for undergrounding utilities in West Newport. The City has obtained 51 % of property owner's signatures at this time (as opposed to the normal 60% before advancing funds in the past). CDBG funds will pay for $200,000 leaving $47,800 to come from fund Balance. There have been no prior budget amendment ACCOUNTING ENTRY: BUDGETARY FUND BALANCE Fund Account Assessment District 400 3605 REVENUE APPROPRIATIONS (3601) Fund /Division Account EXPENDITURE APPROPRIATIONS (3603) Signed: Signed: Description Unappropriated Fund Balance Description S; -red: City Council Approval: City Clerk Amount Debit Credit $47,800.00 . 0 $47,800.00 Date oqfr Date Date . Description Division 7401 Assessment District - Capital Projects Account C5100212 Assessment District #69 Division Account Division Account Division Account Division Account S; -red: City Council Approval: City Clerk Amount Debit Credit $47,800.00 . 0 $47,800.00 Date oqfr Date Date .