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.