City Council Meeting: July 10, 2007

Agenda Item: 1-C  

To: Mayor and City Council 

From: Craig Perkins, Director – Environmental and Public Works Management

Subject: Resolution to Set a Public Hearing to Confirm Assessment Costs for the Yale Street Improvement Project

Recommended Action

Staff recommends that the City Council adopt the attached resolution to set a public hearing on September 25, 2007 to hear any protests to the confirmation of assessment costs for the Yale Street Improvement Project.

Executive Summary

The Yale Street Improvement Project was a collaborative project between the residents and the City to preserve the character of Yale Street between Montana Avenue and Wilshire Boulevard. The project widened the existing parkway which preserved the street’s tree canopy while allowing for necessary street repairs. Construction was completed in February 2007 and a Notice of Completion was executed on March 1, 2007. Final assessment costs have been compiled and need to be confirmed prior to proceeding with invoicing. The final costs are lower than the original estimates. A public hearing to confirm assessment costs is required by State Law. The recommendation presented in this report does not have any budget or financial impact.

Discussion

Background

In September 2003, residents of Yale Street, between Montana Avenue and Wilshire Boulevard, held a community meeting to discuss the City’s intentions to remove existing trees to allow for the completion of pavement and sidewalk repairs. As a result of the meeting, the City agreed to postpone scheduled repairs to meet with Yale Street representatives to discuss improvement alternatives that would preserve the existing street tree canopy and to address parking and traffic related issues. After various meetings and the evaluation of several alternatives, Yale Street representatives reported a preference for the parkway widening alternative.

On September 27, 2004, the Civil Engineering & Architecture Division received a completed petition from Yale Street property owners verifying their interest in the proposed street improvements and support for an assessment district. Following the receipt of the completed petition, proceedings to form an assessment district were held and established in accordance with Article XIIID of the California Constitution and Improvement Act of 1911.

Previous Council Actions

On March 8, 2005, the City Council held a public hearing for the formation of an assessment district on Yale Street. Following the public hearing, ballots were opened and tabulated before the public by the Office of the City Clerk on March 9, 2005. Ballots received were counted and weighted according to the proportional financial obligation of the assessed property. Of the ballots received, 55% favored the assessment district.

On March 22, 2005, after announcement of the certified election result, City Council approved the formation of an assessment district on Yale Street, between Montana Avenue and Wilshire Boulevard, and adopted Resolution No. 10027 (CCS) to proceed with the Yale Street Improvement Project. The assessment proceedings included full notice and opportunity for protest prior to the Council’s approval of the assessment. After the adoption of this resolution, there is no additional opportunity for the assessment to be overturned.

On September 12, 2006, City Council awarded a construction contract to Griffith Company (CCS 8633) in the amount of $969,662 (plus a 10% contingency amount of $96,966) for the Yale Street Improvement Project.

Confirmation of Assessment Costs

At the completion of the Yale Street Improvements, property owners are assessed for the improvements based on the front footage of their property. The assessment cost is $188.03 per front footage for both commercial and residential property owners, which is $6.97/LF less than the original estimate of $195/LF that was approved by a majority vote of the property owners at the formation of the assessment district. As established by the City Engineer’s report, single-family, multi-unit apartment and commercial property owners are assessed 100% based on the parcel frontage and cost per lineal foot. Condominium property owners are assessed 100% based on the parcel frontage and cost per lineal foot, divided by the number of units in the complex. Some corner lots are assessed 50% if the property address is on the adjacent street. Parcels owned by non-profit organizations, which can demonstrate that the organization receives a welfare exemption from the Los Angeles County Assessor, are exempt from this assessment. All public streets, alleys, or portions thereof, are also exempt from the assessment.

The assessment cost is based on the project cost including design, construction, construction management and administration, minus the City’s contribution of $319,585.87. This is the original amount the City had allocated towards sidewalk and street repairs, prior to the resident’s requests for the tree preservation project. The final assessment cost is less than the original estimate provided to property owners and less than the proportionate special benefit cost of improvements for each parcel as identified in the Engineer’s Report. The assessment district is depicted in Drawing Series No. 6518-A, a copy if which is on file in the Office of City Engineer and the original recorded with the Los Angeles County Recorder under Book 192, Pages 40 & 41 of Maps.

Property owners have the option of either paying for the improvements over ten (10) years at an 8% interest rate (in conformance with the California Streets & Highways Code, Section 10602), or paying their assessment in full within 30 days after being invoiced. Owners of controlled rental units may not pass through the cost of the assessment to tenants.

A public hearing to confirm the assessment of costs must be held pursuant to the California Streets and Highways Code. The attached resolution sets the public hearing on September 25, 2007. All affected property owners will be notified of the public hearing date and their assessment amount at least forty-five (45) days prior to the public hearing. The notice of public hearing will be advertised in the Santa Monica Daily Press and through a direct mailing to property owners. A list of property addresses and assessment amounts are attached.

Budget/Financial Impact

The total project cost, City’s share and property owner’s share is as follows:

Project Cost	City’s Share	Property Owner’s Share	Total Cost
Final Design Cost	$89,586.38	$0	$89,586.38
Final Construction Cost	$159,999.49	$876,006.77	$1,036,006.26
City’s Construction Management & Administrative Costs	$70,000.00	$0	$70,000.00
Total Contributions	$319,585.87	$876,006.77	$1,195,592.64

Assessments paid in full by the property owners will be held in Trust Account No. 80.201181 pending payment to the contractor's assignee. Bonds will be issued for any unpaid assessments. Bond proceeds will be paid to the contractor's assignee and the property owner(s) will remit to the bondholder over time. The recommendation presented in this report does not have any budget or financial impacts.

Prepared by:

Allan Sheth, Civil Engineering Associate

Approved:	Forwarded to Council:
Craig Perkins Director – Environmental and Public Works Management Department	P. Lamont Ewell City Manager

Attachments: Resolution

Drawing No. 6518-A

Final Assessment Costs