The URL can be used to link to this page

Home My WebLink AboutSS4 - Utility Undergrounding Follow-up - PowerPoint (Staff)February 10, 2015 Item No. SS4 UNDERGROUND UTILITY ASSESSMENT DISTRICTS Continued Study Session Public Works Department A Well-Engineered Machine Background Procedures Policies February 10, 2015 Continued Council Study Session datedC�u V - 20 rrent Potential 20B Projects Gathering Petitions ed By) Parcels Estimated Project Cost Petition Cost Estimate (per parcel) Estimated Petition Collection Status 3rd St / Ocean Front W / 31st St 278 $3,990,000 $14,500 50% g Island 1,176 $25,250,000 $21,500 0% ,ve / 15TH St and Irvine Ave 249 $5,725,000 $23,000 35% Dtrope Ave / Ocean Blvd and Jasmine Ave 100 $2,566,300 $25,700 30% er Ave / 38th St and Rivo Alto 96 $2,011,300 $21,000 60% Street, Balboa Blvd., 38th Street and Seashore 172 $2,985,900 $17,500 25% fic Or / Coast Hwy and Carnation Ave 272 $5,027,700 $18,500 40% 510 $12,656,000 $20,000 20% Poppy Ave /5th Ave /Ocean Blvd 670 TBD TBD 0% E 3,523 $60,212,200 Policy Guidance City Facilitation of District Formation ✓ City Website and Resource Documents ✓ Staff Resources for formation ❑ Community Meetings Hosted by Staff ❑ Post Cards, Mailings & Outreach ❑ City Council Policy Supporting UUAD's �da�ed �5 Policy Guidance Reducing the Petition Process lower than 60% 60% is Current Procedure Based on Laws, Codes & Common Practice Property Owner Rights 60% reduces the risk of District failure and of City advanced funds ✓ Good indication if the properties will actually approve the ballot assessment ✓ Resident driven process to assess properties ❑ Reduce the petition collecting burden ❑ Less than 60% is an Option (50% min. required) S,*,de 5 Policy Guidance Recent Opposition to a District example: cost to each property d payments of $1,706 for 15 years or - $29,000 with interest and fees. the new utility lines to each property would be an additional costing at least $2,000 for each house, and possibly thousands more depending on the existing hookup. ou can stop this oject now - just don't send in the petition card! Policy Guidance Reducing Edison and Telecom Costs ✓ Economies of scale for design, construction and financing ✓ Staff currently works with Edison and Telecom's to reduce costs where possible ❑ Pursue further cost reductions ❑ Allow above ground pad transformers and switches instead of underground transformer vaults where possible ❑ Alternative construction delivery methods ❑ District formation costs NSV %dIsCityConstruction Option... Staffing, Consultants, Inspection, Administration Time and Funding ■ Prevailing Wage and Public Contract Code Requirements ■ Cost Risk for Unknowns ■ Edison /Utilities still do the cabling /components and have direct and overhead labor, materials, inspection & administrative costs Policy Guidance uncial Options for Property Owners for the Assessment Assessment pre - payment, typically 10% discount • Cash on hand • Personal loans, Home Equity, Mortgage, Investment Funds • "Reverse Mortgage" financing Annual Assessment over 15 — 20 years • No- qualification process • Financed over a long period of time with tax exempt bonds • Annual Assessment ❑ Extend the assessment out further to 30 years ❑ State Controller's Office Property Tax Postponement Program will be available on September 1, 2016 Policy Guidance Assessment Financing Example: $201000 Assessment Amount Rate Term Annual cost Monthly cost Total cost Pre - payment Amount 10% Discount up -front $ 18, 000.00 $ 18, 000.00 15 -year Bond 20 -year Bond 3.25% 15 years $ 1)705.78 $ 142.15 $ 25, 586.58 Example: 15 -year bond = $1,705 /year or $142 /month 3.75% 20 years $ 11439.25 $ 119.94 $281784.84 b Policy Guidance Financial Options for Property Owners for "Property Hook -up" ✓ 12 -24 months of time to obtain contractor bids and perform the work • Cash on hand, credit card • Personal loans, Home Equity, Mortgage, Investment Funds ■ Contractor financing ■ "Reverse Mortgage" financing ✓ Municipal Code ✓ Allows for additional time extensions ✓ Allows for the City to perform the work and lien the property ❑ State Controller's Office Property Tax Postponement Program will be available on September 1, 2016 Policy Guidance City Owned Parcels ✓ Parks, Fire Stations and other City owned land are often in undergrounding areas ✓ Policy L -28 speaks to voting on the assessment on a case by case basis ❑ Amend the policy to include the City's desire to participate in the undergrounding process for the purposes of the petition ❑ Petition proponents can count City owned land as part of their petition gathering (up to 10 %) Policy Guidance Leveraging Opportunities ✓ Adjacent 20A and 206 projects ✓ Coordinate with necessary City Projects ❑ City owned parcels ❑ Purchase 20A Agency credits ❑ Further City facilitation Staff Recommendation ❑ Continue Community Meetings Hosted by City ❑ Amend City Council Policy L -28: ❑General Statement of support for UUAD's ❑Authorize the City Manager to sign in support of a petition affecting City owned land. ❑ Work with Edison and Telecom's to reduce costs and speed the process ❑ Pursue Purchasing other 20A Agency credits ❑ State Controller's Office Property Tax Postponement Program will be available on September 1, 2016