HomeMy WebLinkAboutOB 1 UNDERGD UTIL DIST 02-16-88TO: WILLIAM HUSTON, CITY MANAGER
FROM: PUBLIC WORKS DEPARTMENT/ENGINEERING DIVISION
SUSJLOT: NEWPORT/McFADDEN AVENUE UNDERGROUND UTILITY DISTRICT NO. 10
(FILE NO. 2728)
RECOMMENDATION:
Pleasure of the City Council.
BACKGROUND:
On January 18, 1988, The Tustin. City Council received the City
Engineer's report for the Newport/McFadden Avenue Underground District
No. 10, held a public hearing on the formation of said district and
adopted Resolution No. 88-6 establishing Underground Utility District
No. 10 and ordering the conversion.
Underground Utility District No. 10 contains three parcels of land
which will be required to convert the existing overhead electrical and
telephone services to underground services. These parcels are defined
as follows:
17341 McFadden Avenue (A.P. 402-331-16)
Private Residence (1-Telephone Service)
$ 900.00
14081 Newport Avenue (A.P. 402-371-04)
Alta-Dena Dairy (1-Telephone and 2 -
Electrical Services)
1,950.00
14391 Newport Avenue (A.P. 402-152-04)
Gas Station (1-Telephone and 1-Electrical
Service)
1,400.00
Staff recommended at the January 18th meeting that the cost of the
private property service conversions ($4,250.00) and the cost of twelve
new street lights ($12,000.00) be funded by the Tustin Community
Redevelopment Agency, South - Central Project Area. At that time the
City Council raised a concern with respect to the property owners in
the previous E1 Camino Real Underground Utility District No. 5 being
required to fund the cost of the conversions as compared to the
Redevelopment Agency funding the conversion cost in the current
Newport/McFadden Avenue Underground Utility District No. 10. The City
Council requested Staff to return with an explanation of the two
different actions.
NEWPORT/MCFADDEN AVENUE UNDERGROUND UTILITY
DISTRICT NO. 10' (FILE NO. 2728)
FEBRUARY 16, 1988
PAGE 2
DISCUSSION':
In late 1980 and early 1981 when the E1 Camino Real Underground Utility
District No. 5 was implemented, the Redevelopment Agency had funded
many public improvements within the Town Center project area consisting
of storm drains, water main improvements, traffic signals and the
extension of Sixth Street easterly to Newport Avenue. Additionally,
there were other public improvement projects on the horizon, such as
the E1 Camino Real Street Reconstruction Project ($1,300,000). The
underground utility project cost was $820,000 plus the required service
conversions which were approximately $60,000.00. At that particular
time,'it was determined that the Agency Revenue Stream was not adequate
to fund all of the proposed Town Center improvements in th~ desired
time frame. Consequently, the private property service conversions
within District No. 5 were designated the responsibility of the
property owners.
In lieu of impacting the thirty-five property owners with the full
conversion cost at that time, the City set up a 1911 Assessment
District which allowed the property owners to pay off the conversion
cost over a ten (10) year period with interest not to exceed 7% per
annum on the balance due. Prior to the formation of the Assessment
District, each property owner was provided the opportunity to pay off
the Assessment. These conversion costs ranged from $300.00 to
$4,100.00.
If the City Council desires, an Assessment District similar to that of
the E1 Camino Real District could be utilized. However, staff would
recommend against this process due to the minimal number of properties
(three) that would be assessed. The administrative cost of forming the
district would be consumed by only these three parcels and would
increase the overall cost to the property owners.
In the event the City Council desires to have each individual property
owner responsible for their own service conversion cost, the City
Attorney's office has indicated that it will be necessary to schedule a
new public hearing to allow the affected property owners to provide
imput. The previous staff report for the hearing recommended the
conversions be funded by Agency Funding.
NEWPORT/McFADDEN AVENUE UNDERGROUND UTILITY
DISTRICT NO. 10 (FILE NO. 2728)
FEBRUARY 16, 1988
PAGE 3
At the January 18th meeting, it was unclear as to how the additional
street lighting ($12,000) would be funded. It is Staff's
recommendation that this additional street lighting be funded by the
Agency. A separate Staff report for street lighting will be placed on
the Agency agenda for their action. Additionally, a separate Staff
report will also be placed on the Agency agenda for the funding of the
private property service conversions ($4250.00) if the City Council
desires to pursue that avenue of funding.
Bob Ledendecker
Director ~ublic Works/City Engineer
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