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HomeMy WebLinkAbout5/21/2003 - STAFF REPORTS (18) DATE: May 21, 2003 TO: City Council FROM- Director of Public Works/City Engineer APPROVE RESOLUTION AUTHORIZING A BALLOT VOTE AND SETA PUBLIC HEARING DATE TO DETERMINE OWNERS SUPPORT FOR A REBUILD OF STREET LIGHTING DISTRICT NO. 1 RECOMMENDATION: It is recommended that the City Council approve a Resolution authorizing a Proposition 218 mailed Ballot and setting July 16, 2003 as the Public Hearing date to determine if the majority of the 165 property owners within Street Lighting District No. 1 (Tennis Club area) wish to proceed with a rebuilding of the existing deteriorated street lighting system. SUMMARY: Neighborhood Street Lights were installed in the 1960's in a 9-block area (Tennis Club area) of Palm Springs, bounded by Tahquitz Canyon Way- Belardo Rd.- Baristo Rd.-Tahquitz Drive. After over 3 decades, the lighting system began to deteriorate and now only 80% of the lights function due to rusted steel conduits, failed wiring and obsolete light fixtures no longer being manufactured. The Public Works department has met with the property owners twice; conducted a mail-in survey and upon meeting with the City Attorney, determined that a Proposition 218 Ballot should be conducted. The ballot would determine if a majority of the property owners wish to reconstruct their neighborhood lighting system. BACKGROUND: In 1967 the majority of the 165 property owners, within what became known as Lighting District No. 1, (formed under the Street Lighting Act of 1931) petitioned the City to design and build a neighborhood lighting system at the property owner's expense in a portion of the Tennis Club area of Palm Springs.The construction cost was paid off by the owners over a period of years and the on-going annual lighting maintenance cost has been on the property owner's tax bills for the past 36 years. The current annual maintenance cost averages about $52 per property per year, but the actual amounts vary based on individual lot sizes. The rebuild of the lighting system has been estimated at $499,000 which includes street cuts, new conduits, new wiring, street patching and new lighting fixtures, but retaining the existing poles to save on costs (the most popular choice by owners via the postcard survey in February, 2003). The rebuild cost would average $3,024 per property owner, which could be mortgaged out over 10-years to reduce the cost impact to the property owners(see Exhibit"A").After completing the Ballot(June 30th deadline),the City staff will tabulate the results using Prop. 218 rules which determines a majority vote based solely on the "returned" ballots. A Public Hearing, proposed for July 16, 2003, would be an opportunity for the property owners to voice their public opinions upon completing the ballot on June 30, 2003. ROBERT L. MOHLER DAVID J. BARAKIAN Grants and Government Affairs Manager Director of Public Works/City Engineer APPRovEo REVIEWED BY DEPT. OF FINANCE Gity Manager Exhibits: Memo & Cost Estimate; Sample Ballot; Location Map; Resolution Lighting Maintenance District No. 1 "Tennis Club" Area (Baristo/Belardo Vicinity) Year Formed: 1967 Legal Proceedings: "Street Lighting Act of 1931" No. Properties: 165 No. of Streets: 9 (Baristo, Cahuilla, Lugo, Patencio, San Jacinto, Tahquitz Dr., Tahquitz Canyon, Arenas, Belardo) No. of Street Lights: 49 FY 2002103 Maintenance Assessment: $8,581 Average Annual Maintenance Cost: $52 per property in FY 02/03 PROBLEM: Existing lighting system is 36 years old and failing. According to City Electricians and a lighting consultant, the existing steel conduits and wiring are corroded, causing breakdowns in the electrical system. The wiring is carrying 4,000 volts and was installed in series runs, so if one segment goes out, the entire run goes down. Also the Poles and light fixtures are obsolete and no longer being manufactured. According to City inspectors about 9 or 10 (20%) of the 48 Street Lights are currently not functioning or fixtures are missing altogether. Several lights had been repaired recently however after residents reported the faulty lights, Engineering Cost Estimate to Replace Lighting System (Retain Exist. 49 Poles): DESIGN: $30,000* CONSTRUCTION: 449,000** ADMIN: 20,000 (Design review, bidding, award, contract administration) TOTAL: $499,000 (Must be authorized by majority vote of property owners) * PHASE 1: Design System in FY 2003/04 ($30,000) **PHASE 2: Construct New Lighting System in FY 2004/05 ($449,000) ASSESSMENT COST ESTIMATES (if approved by majority vote of owners): $499,000 Total Cost (divided by 165 lots)= $3,024 average cost per property*** ** Amortized for 10 Years @ 7% Interest= $421/ Yr. per lot ($35.08 per month) (Plus annual maintenance costs)= 5$ 2/ Yr. Per lot ($ 4.33 per month) Average" cost (for 165 varying size lots)= $473 per year ($39.41 per month) Note: Smallest lots assessed $61/ year ($5.08/Month) (13% of average) Note: Actual annual interest may be lower(depending on economy in FY 04/05)*** HABobMTataMocumentlLighting District NoA.Repair&Assessment Cost Est.b.4-24-03 wpd Updated 4/24103 RLM J W9- Palm Springs Ballot Proposition LIGHTING DISTRICT NO. 1 Portion of Tennis Club Area of Palm Springs Shall the City of Palm Springs levy a special maintenance assessment on all parcels of land within Lighting District No.1 of said vEs City; such assessment estimates not to exceed $499,000 in total See individual assessment estimates indicated on your cover letter), based on square footage of property; such assessments to the be collected over a period of not to exceed ten (10) years; and such assessments being subject to annual increase of not to exceed 5% per annum to reflect increased costs of maintenance of District Lighting facilities and of the cost of the purchase electrical energy therefor? NO Note: Please return this ballot ASAP to City of Palm Springs, attn: Patricia A. Sanders, CITY CLERK (Note: Monday June 30 2003 is Ballot Deadline AP .-.1. - .... ....y. ��w � :.1. � _ -nrrw.•r eo�,vw,.r — ......�..�...�... 11r. FIT f�el -�- ° Zt Ti q�drr ,pfe GLL UiE/ pEiv£ f1+ 1l.•Ol! ''l a * C �® 0 fIr III _ 11.. i � - r r 7�� n. •rs ;t. R f -+E 1 r •?. .1. if3' .JJ V ��• 4 ..i.. � - .r- - 4[ f � .Rzws - ARENAS ROAD .eo.ro 14 1 3— _ ti � ���— � � r,�• fin,".., _y t a II w ,u.• F iie. y(y33 gARiSTb ROAD " � OOC�00600 STREET LIGHTING DISTRICT NO. I . SKET M 2 V 2 RESOLUTION NO. OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING A RESOLUTION AUTHORIZING A PROPOSITION 218 BALLOT TO DETERMINE PROPERTY OWNER SUPPORT FOR A REBUILD OF EXISTING STREET LIGHTING AND SETTING THE DATE FOR A PUBLIC HEARING FOR JULY 16, 2003 FOR STREET LIGHTING DISTRICT NO. 1. WHEREAS, in 1967 the City Council of the City of Palm Springs authorized the formation of Street Lighting District No. 1 in the Tennis Club area of Palm Springs under the Street Lighting Act of 1931, based on a petition signed by a majority of the 165 property owners within a 9-block area bounded by Tahquitz Canyon Way- Belardo Road- Baristo Road-Tahquitz Drive; and WHEREAS, the City designed and constructed Lighting District No. 1 at the sole expense of the 165 property owners, who paid off the construction cost over a period of years and have paid the ongoing annual lighting maintenance costs for the past 36 years on their annual tax bills; and WHEREAS, over a period of years, the lighting system has begun to deteriorate due to corroded metal underground conduits, rusted wiring and faulty light fixtures which have caused 20% of the 49 original light fixtures within the district to become inoperable and dangerous; and WHEREAS, the City conducted two property owner meetings (on February 6 and April 24, 2003) where method and costs (estimated at up to $499,000) of repairing the lighting was discussed and then conducted a property owner postcard "survey" mailed to the property owners (on February 27 and returned by March 14, 2003). The City determined that the majority of responding property owners indicated their preference to repair the ailing lighting system and to continue the night lighting on their streets for safety and convenience. NOW, THEREFORE, BE IT RESOLVED, As follows: 1. Proposition 218 Ballot. The public interest, convenience, safety and necessity require, and this City Council intends to determine the wishes of the majority of property owners within Lighting District No. 1 by mailing a ballot to all 165 property owners within the district, asking if they support the reconstruction of the ailing lighting system, at their expense (at an estimated cost of$499,000). That cost would be placed on their annual tax bills (mortgaged out for up to 10-years), to lower the cost impact to the property owners. The ballots will be mailed by May 22, 2003 and must be returned to the City Clerk no later than June 30, 2003 (40 day period). Under Prop. 218 rules, a majority vote will be determined by the "returned" ballots only. 2. Public Hearing. Upon completing the ballot on June 30, 2003, the City Clerk will determine the majority vote of the property owners and the City Council will conduct a Public Hearing to discuss the future of Lighting District No. 1 at a City Council meeting to be held at 7:00 PM on Wednesday July 16, 2003. Adopted this day of 12003. AYES: NOES, ABSENT: ATTEST' CITY OF PALM SPRINGS, CALIFORNIA by City Clerk City Manager REVIEWED AS TO FORM