EPWM:CP:AA:PT:S:\Staff Reports In Process\3_08\CC1978.DOC    

Council Meeting:  March 8, 2005                                                    Santa Monica, California

 

 

 

TO:                  Mayor and City Council

                                                                                                           

FROM:            City Staff

 

SUBJECT:     Public Hearing to Form an Assessment District for Various Street Improvements on Yale Street

 

Introduction

This report recommends that the City Council adopt a resolution of intention to proceed with various street improvements on Yale Street between Montana Avenue and Wilshire Boulevard and hold a public hearing to receive public input.

 

Background

In September 2003, residents of Yale Street, between Montana Avenue and Wilshire Boulevard, held a community meeting to discuss with City staff the City’s recommendation to remove existing trees to complete pavement and sidewalk repairs.  The City agreed to postpone scheduled repairs and meet with Yale Street representatives to discuss other improvement alternatives that would preserve the street tree canopy and implement traffic calming measures.  After several meetings three improvement alternatives were developed:  1) installation of medians, 2) curb extensions, and 3) widening of parkways.  In April 2004, Yale Street representatives reported a preference for the widening of parkways alternative, which includes the following elements:

  • Widen parkways by four feet on each side of the street;
  • Remove and replace approximately 15 street trees;
  • Evaluate an additional 14 street trees for possible removal and replacement;
  • Retain parking on both sides of the street; and
  • Install enhancements (utilities, asphalt pavement, sidewalks) resulting from changes to street grade and alignment due to the widening of the parkways.

The proposed improvements will not result in loss of travel or parking lanes.

 

On September 27, 2004, the Civil Engineering & Architecture Division received a completed petition from Yale Street residents, verifying their interest in the proposed street improvements and support for an assessment district.  On January 11, 2005, the City Council accepted the completed petition from Yale Street residents and approved a public hearing on the proposed assessment. 

 

The Council is requested to adopt the attached resolution of intention to form the assessment district.  Notices of the City’s intent to form an assessment district, and hold a public hearing were mailed to owners/occupants forty-five (45) days in advance of the public hearing.  Ballots to be marked in support of or in opposition to the proposed assessment were included with the notices.  Notice of the public hearing was also published in the Los Angeles Times on February 18th and 19th.

 

An Engineer's Report was prepared for this project, which determined the general and special benefits of the street improvements.  General benefits enhance the public as a whole, while special benefits enhance a particular parcel. A copy of this report is available in the offices of the City Engineer and the City Clerk.  

 

Discussion

Article XIIID of the California Constitution and the Improvement Act of 1911 establish procedures for the creation of assessment districts for public improvements. These regulations require the City to hold a public hearing and provide affected property owners with the opportunity to voice their support of or opposition to the assessment on ballots weighed based on the proportional amount of the financial obligation. Eligible property owners have until the conclusion of the public hearing tonight to submit ballots. In order to provide the City Clerk with sufficient time to count the ballots, staff recommends that following closing of the public hearing,  this matter be returned to Council for further action, as appropriate, at the March 22, 2005 meeting.  At that time the results of the ballot tabulation will be reported, and further action, as appropriate will be taken.   The ballots will remain sealed until their opening by the City Clerk or her designee on Wednesday, March 9, 2005, at 2:00 p.m. in the City Clerk’s Office located in Room 102, 1685 Main Street, Santa Monica, California, which opening and counting of the assessment ballots shall be available for public review.  The assessment is approved if the majority of the returned weighted ballots cast are in favor of the assessment. If the results of assessment ballot procedure are in favor of the assessment, Council would adopt a resolution to establish the assessment district.  Upon completion of design and bidding for the improvements staff, would return to Council in the fall to award a construction contract for the assessment district improvements.  Completion of the project improvements is anticipated to take approximately four months, at which time, staff would return to Council for final confirmation of the assessment amounts. 

 

The project cost is approximately $1,228,000 which includes labor and incidental costs, such as staff time for engineering surveys, public notifications, advertisements, construction management, inspections, and design and construction costs.  The City will contribute $320,000, the amount originally budgeted for street improvements in the area; and the property owners in the improved district will pay the balance, approximately $908,000. For a property with a frontage of fifty feet, the assessment would be $9,750.  Since this type of assessment is not identified in the City’s Rent Control Charter as allowable pass-through costs to tenants, property owners of controlled units will not be able to pass-through any of the assessment costs to tenants. 

 

Upon project completion, invoices will be mailed to property owners within the assessment district.  Property owners may pay the entire balance, without incurring any interest, within thirty days of the invoice date.  If the balance is not paid, bonds will be issued for the unpaid amounts and a lien will be placed upon the property until the full assessment cost, including interest, has been paid.  Payments will be made twice a year for ten years with an annual interest rate not to exceed 8%.  The Finance Director is authorized and directed to determine the exact amount of the interest rate for the bonds at or prior to the time of execution of the construction contract for the assessment district improvements.

 

If the assessment does not pass, only the street and sidewalk will be repaired as part of the next annual street resurfacing project anticipated to be awarded this summer.

  

Budget/Financial Impact

If the assessment district is approved, the estimated breakdown of costs are as follows:

 

Estimated Property Owner Assessments

 

$908,000

 

 

Estimated City Contributions

 

$320,000

 

 

 

 

 

 

 

Total Project Estimate

 

$1,228,000

 

 

If the assessment district is approved, $320,000 is available in account M010152.589000 for the City’s contribution.  Account 80.201238 will be established for the property owners’ share.

 

Recommendation

Staff recommends that the City Council:

1.      Adopt the attached resolution of intention to proceed with the project;

2.      Hold a public hearing; and

3.      Continue further action on this item to the March 22, 2005 Council meeting; where the results of the assessment ballots will be declared.

 

Prepared by:  Craig Perkins, Director, Environmental and Public Works Management

                        Anthony Antich, P.E., City Engineer

                        Dave Britton, P.E., Principal Civil Engineer

                        Bill Zein, P.E., Principal Civil Engineer

                        Ruth Firestone, Support Services Supervisor

                        Phil Tong, Administrative Analyst

                       

 

Attachment:  Resolution of Intention