HomeMy WebLinkAbout3B - PresentationUtility Undergrounding and Formation ofUnderground Utility Assessment Districts
November 21, 2024
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Presentation Outline
1.Ordinance-Amending Muni Code Article V Chapter 8.042.District Formation Phases
•Exploratory
•Petition
•District Formation and Formal Voting Phase
•Calculation and Payment of Assessment
•Construction Phase
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Exploratory Phase
•Form Neighborhood Committee
•Submit Letter of Interest (minimum of 5 properties and 600 linear feet of overhead utilities signed by 60% of the properties)
•Kick off meeting with City
•Obtain Preliminary Cost Estimates
•Letter of Continued Interest based on approximate costs
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Petition Phase
•Collect Fund Deposit from Neighborhood Committee
•Retain Consultants (Financial, Bond Counsel, Assessment Engineer)
•Prepare Formal Petition “show of interest” (not binding)
•Petition must be signed by at least 60% of owners to continue
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Assessment District Formation & Formal Voting Phase
•City Council approval to initiate formation of District (Resolution of Initiation)
•Assessment Engineer’s Report Precise assessment amount on each property according to specific benefit
•Resolution by City Council approving Assessment Engineer’s Report
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Formal Voting Phase
•Notice of Public Hearing and Assessment Ballot mailed to property owners
•45 Days to return ballots
•Ballots opened and tabulated at Public Hearing
•Ballots are “weighted” according to property assessment amount as calculated in Engineer’s Report
•Majority (50% + 1) of THE VALUE OF returned ballots must be in favor for District to form
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Calculation/Payment Phase
•If District passes, all owners must pay regardless of their individual vote
•Payment options
•1. Payment in Cash for full amount or a portion within 30-days of close of Public Hearing
•2. Bonding – unpaid portion of assessment financed through issue of bonds with assessments payable in annual property tax installments (lien on property)
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Detailed Design
•Base Mapping
•Southern California Edison electrical design
•Telephone, Cable and other Utility design
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Construction Phase
•Bid Construction/Select Contractor/Bond for Project
•If bids are higher than budget approved in balloting process, property owners must decide whether to continue to fund or disband the District
•If property owners wish to continue to fund the project
Option 1 - Pay out of pocket for excessOption 2 - Amend Engineer’s Report and Repeat Balloting process
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Completion of Construction
•Owners notified to connect to underground utilities(“private conversions”)
•Licensed electrical contractor to connect and removeabove ground lines
•Cost typically range from $5,000 to $30,000
•Property owner responsible to convert withindesignated timeframe
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