sr-112376-9a2Santa ;Monica, California, November 1~, 1976
n
RT..e ~n
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TO: 1,layor and City Gouncil
NOi~~ ~ l9%6
F RO?d: City Staff ~~€s a'~ai$~~3=
SUBJECT; Financial and other Assistance to Property Owners >t ~2,.x o_
in the Proposed Arizona Avenue underground Utility
District.
Introduction
This report discusses the type of assistance that can be furnished by
the City to property ocvners within the proposed Arizona Avenue IInder-
.ground Utility District for their costs in connecting their electrical
service to the proposed underground facilitiesa
Background.
At its October 12, 1970 meeting, the City Gouncil, at the conclusion o£
the public hearing, did not adopt the resolution establishing the proposed
underground utility district on Arizona Avenue between Sia~th Court and.
Twentieth Street. Fous° affirmative votes were required for adoption
and only three affirmative votes were cast, At its rlov-ezz-iber 9, 19?0
meeting, the Council, at the request of Councilman Cohen, placed this
resolution on the November 23, 197b Cot:ncil agenda:
In the in to rventng perlOd, the GOUY1Cil Teq~;A P_gted ti'_e Siafi t0 aSSlSt Owner's.
who are residents in the area.
7r ~'
To: i\4ayor and. City Council -2- November 15, 1970
The Staff investigated two areas o_` possible assistance: financial and
technical.
Financial Assistance
To provide financial assistance to property owners adjacent to undergrounding
projects, federal and state fending sources were investiga±ed and none are
available. .Another alternative would be to utilize an assessment procedure,
lir_der this method;. the City could contract to have all the proper~y otivner
connections and associated work done at one. time, thus lo~,vering costs over
the rrmultiple job approach. An assessment could be levied on each property
owner according to actual cost of connection to that property. An agreement
could be executed by the City and the property owner to pay these costs
in monthly installments within a maximum Time geriod of 10 years, and allow
the City to record alien on the property to assure payment, Funds to
accomplish this work: could be advanced from the Capital Improvem__ent Fund.
An interest rate level. to compensate for "lost" interest from the pro-rata
advance from the Capital Improvement Fund could be added to the assessment
as well as a surcharge to cover actual administrative costs incurred by the
City in preparing the bid specifications for the project.
The main advantage of t'_ais approach is to avoid a large lamp-siL**n payment
w'r_i ch could be a hards.~~.p in some cases, Of course, suc'_n a payment would.
stvi be at the notion of t're property owner.
fio: Mayor and City Ccuncil -3- tiovember 15, I97o
Tzchrieai Assistance
upon actoptioa of the rzsolutior. creating tnz district and prior to commence-
mint of any actual undergrounding work, the Public i"Yorks Department
could convene a general mezting of the property owners and focal contractors,
(electric, concrete; landscaping/if necessary) in an attempt to coordinate
ti?e work necessary to ba done by the property owners to convert to the
undergroutad facilities. This coordination effort wo=eld attempt to Iower
the projected costs by having single contractors or sub-contractors,. ea.c'n
in their specialized trade; to accomplish t'ne necessary work of ail the
property owners as a single project.
Alternative s
1. Since no outside funds are available, City Capital L-nprovement funds
could be utilized by providing an assessment method as outlined above.
The City in essenee is advancing project. costs from the .Capital
Improvement ~ und, coordinating and acoomplisiLing property owner
connections as a single project, and assuring repayment of the
Capital Improvement Fund through property otivner asszssrnents,
utilizing installment payments as necessary. Propzrty owners not
choosing to takz advantage of tills method could arrangz their own
work to bz done.
2. IZ.etalri the pre Sent mett?Od Of -oroperty OST,'ner5 pay Lng f0. ti'eir Otiv'II
COnneCt20n ptO~eCt CO StS =ALthO'.it VLtV S!:ian.l3i as SiStanc°, and 3t
. 'T'o: Mayor and City Council -d- ~iovember I5, 1476
their option using City tachnical assistance as described above.
P,e commendations
If Council wishes to assist proper±y otivners with undergrou<-idzng projects,
please advise and the necessary implementation procedures will be -resented
for Council approval. Council would then authorize the implementation of
Alternative rl as an option to any property owner ~vlao .vish.es to use it on
the Arizona .Avenue as .well. as future utility underground districts,
Prepared by: David P. Dolter
Assistant City yIariager
DPD:pp
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