HomeMy WebLinkAbout1998-03-24 - AGENDA REPORTS - VERMONT EVERETT IMPROV (2)AGENDA REPORT
NEW BUSINESS City Manager Approv
Item to be presented
DATE: March 24, 1998
SUBJECT: VERMONT/EVERETT IMPROVEMENTS
DEPARTMENT: Transportation and Engineering Services
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T. Brad Therrien
The City Council consider the residents' requests to fund a portion of the Vermont/Everett
improvements in the Fiscal Year 1998/1999 budget.
This item is being presented in response to citizen requests for a capital improvement project
to install a sanitary sewer, street improvements, and a storm drain in the Vermont/Everett area
of Newhall (see Exhibit "A"). The issue has been explored by staff and the City Council several
times since incorporation. Local residents have reported problems with their drainage and
sewage facilities since 1985. The hillside development above the area has contributed to the
problems due to increased runoff traveling over the area's private streets that do not have
adequate drainage facilities.
Residents first contacted the City's Engineering staff in 1992. Records do not show contact
that may have occurred during the tenure of the City's consultants. Staff visited the site
several times to discern the severity of the problem. The hillside subdivision that the residents
complained about was created in the 1920's, and the majority of development was approved
prior to incorporation. Due to the private nature of the roads and improvements in the area,
staff advised residents that a private civil action against the developer may be a possible
recourse.
In 1993, the City Engineer and other staff met with homeowners to listen to their issues and
provide information and alternatives. At that time, staff raised the possibility of forming an
assessment district. Residents were told that if they submitted a petition expressing their
willingness to participate in a financing mechanism, staffwould present the idea to the Council
for consideration. In January 1994, the petition was complete and the item was presented to
the Council. The Council committed general fund monies to prepare an assessment district.
Including those funds, the City has expended nearly $50,000 to date on staff and engineering
consultant time in search of a resolution to this neighborhood problem.
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VERMONDEVERETT IMPROVEMENTS
March 24, 1998 - Page 2
Under the direction of staff, a consultant prepared a study to define the costs of constructing
the identified improvements. The study offered several alternatives to address the various
issues, each with a different assessment placed on area property owners. The improvement
alternatives, as well as the individual benefit calculations, are included in the reading file,
along with a copy of the assessment district boundary diagram.
Assessments were proposed for the hillside properties above the area wherever a benefit was
applicable. When the results were presented; the residents stated that they were not able or
willing to pay the assessments. Following the earthquake, there was a proposal to form a
"recovery agency." Staff looked into funding from that source as well as from FEMA, but found
it would not be possible to help the residents using either source. The project continued to be
listed as an unfunded priority.
In 1996, residents protested the fact that they did not have the same public infrastructure as
other City residents enjoyed. They also requested that a building moratorium be placed on the
hillside above them. Staff explained that local infrastructure is provided by land developers
when homes are constructed. As long as standards are followed, the City may not refuse a
permit. Staff reminded residents that the assessment district was still the most direct and
reliable way to build the improvements.
The publicity given to the "El Nifio" storms late last year prompted the residents to once again
bring their concerns to staff. This report is being presented to discuss alternatives and give the
citizens an opportunity to provide input on the matter. The latest petition, received at the end
of 1997, expressed some residents' willingness to participate in the funding. Staff and groups
of area homeowners have met several times recently to discuss this latest proposal. The
residents have stated that they want something significant to be constructed in the area to
remove the nuisances once and for all. They have committed to attend this Council meeting
to demonstrate their dedication to participating in the implementation of a solution.
The assessment district proposed previously projected a total cost to residents of $1,340,000
over 30 years. The average cost is almost $9,400 per each parcel if divided evenly among the
143 property owners which stand to benefit. Unfortunately, due to the "assignment of benefit"
calculations required by law, owners would be assessed anywhere from $2,255 to $26,640 if all
of the desired improvements were financed by this method.
ALTERNATIVE ACTIONS
The attached table (Exhibit `B") shows the total and average costs to property owners found to
benefit from the assessment district alternatives. It also shows the approximate total
construction costs the City would pay to build each type of project without financing through
the assessment district bonding process.
VERMONDEVERETT IMPROVEMENTS
March 24, 1995 - Page 3
The Council has discussed this item on several occasions and considers the improvement of the
area a high-priority unfunded project. The Council has several options:
1. Continue to list the improvements as a high-priority unfunded project until an
appropriate source of funds that can be applied to the problem is found.
2. Fund all, none, or any part of the alternatives outlined on Exhibit "B."
ALIMPACT
No public funding source to build the requested improvements has been identified. Any project
chosen will have a direct impact on the general fund beyond the point where the residents are
able or willing to contribute.. The use of general funds for such a project could be precedent
setting.
ATTACHMENTS
Exhibit A - Project Location Map
Exhibit B - Table of Alternatives
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COST ALTERNATIVE SUMMARY
OPTION Costs for City to construct Costs for assessment district
FULL IMPROVEMENTS $ 750,000 $1,340,000
(to meet public standards)
SEWER & STORM DRAIN $ 650,000
(new pavemenVutility easements)
SEWER ONLY $ 485,000
STREET ONLY $ 450,000
STORM DRAIN ONLY $ 540,000
EXHIBIT "B"
$ 1,150,000
$ 740,000
Average Total
cost to beneficiary
$ 9,350
$ 9,350
$ 18,920
$ 5,800
$ 7,750
Average Annual
cost to beneficiary'
$ 1,153
$ 1,153
$ 2,333
$ 715
$ 956
'Annual costs to residents will range from $ 203 to $ 3,286 per year
due to "assignment of benefit" calculations and are shown for a 30 year term.