HomeMy WebLinkAbout00 - Non-Agenda Item - HandoutM�16 GoMNio'fS
�R04 14) 2023
PRESENTATION TO THE CITY COUNCIL ON MARCH 14, 2023
Assessment District 124 on Balboa Island has risen its ugly head again.
To summarize, there are three groups of property owners on Balboa Island. (A) Those who crave
under -grounding, no matter what the cost. (B) Those who want under -grounding, but at a fair
and agreed price. (C) Those who do not need under -grounding or have other financial priorities.
Whether one likes it or not (I don't), the Municipal Improvement Act of 1913 is used as a
democratic means for forming Assessment Districts.
Over a decade ago, Groups B and C prevailed in stopping the creation of an under -grounding
district on Balboa Island. Group A did not take kindly to it. It went to work over the next several
years, working hand in glove with City Staff (their protests notwithstanding), to bring it up again.
Group A was finally successful and on July 27, 2021 AD-124 was formed. The vote was based on
the project not costing more than $32,800,000 +/-, and the bond rate for those opting to pay
over a period of 20 years not exceeding 5%. Groups B and C accepted their defeat without
recrimination.
It came as a total surprise to some of us when we learned that the City Staff believes that there
is a possibility that additional funds may be needed, but the staff will not know the amount until
the bid numbers for the last of the 3 phases are in hand. In February, the City awarded a
contract for the first phase, knowing the project will need more money. In bypassing approval
from the property owners for (unknown and unlimited) cost increases, the City EXPLICITLY
accepted responsibility for all additional costs associated with AD-124.
To properly administer work under AD-124, the City Staff should have gone for bids for the
whole project, so that the total cost would be known before moving ahead. Also, a firm price for
the whole project puts the responsibility for inflation on the shoulders of the contractor and not
the Property Owners. It is also a no-brainer that if the project was bid as a whole, the total cost
would be less due to economies of scale. That is water under the bridge now.
I understand that City Staff is going to make a presentation on April 22 at the Balboa Island fire
station explaining what is going on with AD-124. In view of the fact that payment of
assessments is due on March 31, it would be best for all concerned if the meeting could be held
prior to March 31. If that is not practical, I humbly request that the date for payment of
assessments be move to April 3Q. Thank you for your consideration.
Jamshed Dastur
Balboa Island
949-887-1938
jhdastur@aol.com