Item 4 - Workshop Presentation of the Conceptual Financing Plan for Formation of High Valley Road Assessment District
AGENDA J,U:PORT SUMMARY
INITIATED BY:
Honorable Mayor and Members of the City Council
\ \ \ -
James L. Bowersox, City Manage~~
John D. Fitch, Assistant City Manage~ J
Mark S. Weston, Di rector of Engi neeri nU se~t~ceWf'¡f'
J. Bradley Kutzner, Senior Civil Engineer~
TO:
FROM:
DATE:
SUBJECT:
January 5, 1994
Workshop Presentation of the Conceptual Financing Plan for the Formation
of the High Valley Road Assessment District to Replace CSA V
ABSTRACT
Staff has prepared several reports regarding the creation of the High Valley Assessment
District to replace CSA V. The roads in the High Valley neighborhood are currently
mai nta i ned by the County under CSA V. Previous Council direction has required that the
roadways be brought up to City standards before transfer to the City maintained system.
Staff recommends adopting a conceptual financing plan for the formation of the High
Valley Road Assessment District to replace CSA V which includes a $125,000 contribution
from the County of San Diego, a $125,000 contribution from the City Street Improvement
Fund and a $100,000 contribution from the Water Fund. The balance of the project costs
(approximately $540,000) will be funded by an assessment district paid by the High
Vall ey prooerty owners.
ENVIRONMENTAL REVIEW
This action is not subject to environmental review. Prior to constructing the project
an environmental review will be conducted by staff.
FISCAL IMPACT
The conceptual financing plan recommends a $125,000 contribution from the County of San
Diego, a $125,000 contribution from the City of Poway Street Improvement Fund, and a
$100,000 contribution from the Water Fund. The balance of the project costs
(approximate ly $540,000) will be paid by the property owners.
ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE
Ron Plumb, Tara Fields, Dan Steussy, Jeff Cooper, Ann Hicks, Bob Borntrager, and
Charles Hayes; notice to all property owners.
RECOMMENDATION
It is recommended that the City Council approve a conceptual financing plan for the
formation of the High Valley Assessment District to replace CSA V which includes a
$125,000 contribution from the County of San Diego, a $125,000 contribution from the
City Street Improvement Fund and a $100,000 contribution from the Water Fund; and
direct staff to return to Council with a resolution designating an assessment engineer
to prepare a preliminary engineers report as required by the Municipal Improvement Act
of 1913.
ACTION
1 OF 10
JAN 5 1995
ITEM 4
.1
INITIATED BY:
AGENDA REPORT
CITY OF POW A Y
Honorable Mayor and Members of the City Council
. . \y.,
James L. Bowersox, Clty Ma~
John D. Fitch, Assistant City Manager ~
Mark S. Weston, Director of Engineering Service~
J. Bradley Kutzner, Senior Civil Engineer~
January 5, 1995
Workshop Presentation of the Conceptual Financing Plan for
the Formation of the High Valley Road Assessment District to
Replace CSA V
FROM:
TO:
DATE:
SUBJECT:
BACKGROUND
On May 17, 1994, staff presented the feasibility report for improving the High
Valley roads. The estimated cost for the project is $890,000. Staff
presesnted a plan to create an assessment district to pay for the roadway
improvements. The proposed district would be broken into five zones. Staff
was directed to seek alternative funding sources to supplement the assessment
district.
As presented in the November 29, 1994 Conceptual Plan for the Formation of the
High Valley Road Assessment District, staff endorsed a financing plan which
included $125,000 contribution from the County of San Diego and a $125,000
contribution from the City of Poway Street Development Fund and the balance of
the cost of the project funded through an assessment district repayed by the
property owners in High Valley. This report included recommending deleting a
portion of the improvements on Eastvale Road due to significant costs to the
project. City Council received testimony from the residents on Eastvale Road
that they 1) were interested in the improvements being installed to public
standards, and 2) wanted additional thought be given to achieving a more
equitable charge for the residents on Eastvale as compared to the balance of
the members in the proposed assessment district.
Staff continues to recommend that the $250,000 contribution as previously
presented in the November 29, 1994 report be distributed on a pro rata basis
across the five proposed assessment zones. Staff investigated other possible
sources of revenue to reduce the cost of the road improvements on Eastvale
Road. In reviewing the plans, it is clear that water lines must be lowered in
two sections of the roadway in order to construct the roadway improvements.
To remove vertical curves within the roadway, the water line must be lowered
on a section of Markar Road and on a section of Eastvale Road. In addition,
the current paved portion of the roadway on Eastvale is paved at a width of
ACTION:
2 OF 10
JAN 5 1995
ITEM 4
, t
Agenda Report - Workshop Presentation of Conceptual Financing Plan for Formation of High Valley
Road Assessment District to Replace CSA V
January 5, 1995
Page 2
12' - 14' wide. Paving the roadway to 24 feet wide does provide a benefit to
the water line by protecting it from possible damage from erosion from the
unprotected surface. This benefit was recognized in the Budwin Lane project
and part of the cost of the project was shared by the water fund.
Staff recommends contributing $25,000 to the Markar section and $75,000 to the
Eastvale section, both from the Water Fund as a benefit to the water system.
A contribution of $100,000 would be contributed from the Water Fund to the
roadway project.
The attached Table 1 presents the cash payoff for an average parcel by zone
with a $250,000 contribution. Table 2 presents the assessment per benefit
unit on an annual bas is by zone. Tabl e 3 presents the cash payoff assumi ng
the $250,000 contribution plus the $100,000 contribution from the water fund
as prepared by zone. Table 4 presents the annual assessment per benefit unit
including all sources of funds.
The costs presented in this report are based on a pre7iminary feasibi7ity
study. Final cash payouts and annual assessments will be based on the actual
design and bids received by the City. Staff is recommending a maximum
contribution to this project of $350,000 from public funding sources. StaFf
assumes right-oF-way wil7 be donated if needed to complete improvements.
FINDINGS
The City of Poway has prepared a feasibility study for the creation of the
High Valley Road Assessment District. Staff has worked with the County to
obtain the promise of $125,000 toward the cost of this project. In addition,
staff recommends a contribution of $125,000 from the Street Improvement Fund
and $100,000 from the Water Fund as contributions to this project. The
attached Tables 3 and 4 present estimated cash payouts and annual assessments
for each benefit unit by zone. Staff recommends the creation of a 5 zone
assessment district. Further, staff recommends prorating a $250,000
contribution from the City and the County across each zone. In addition,
contribute $25,000 to Zone B costs and $75,000 to Zone E costs from the Water
Fund as a contribution to this project.
Staff has prepared a preliminary schedule for the creation, financing, design,
and construction of the High Valley Road Improvement District which is shown
in Attachment F.
Following the discussion at the workshop, staff will bring a report to the
Council recommending the selection of an assessment district engineer to begin
the process of forming an improvement district under the Municipal Improvement
Act of 1913 and a design engineer to design the improvements.
3 OF 10
JAN 5
1995
ITEM 4
.t
Agenda Report - ~orkshop Presentation of Conceptual Financing Plan for Formation of High Valley
Road Assessment District to Replace CSA V
January 5, 1995
Page 3
ENVIRONMENTAL REVIEW
This action is not subject to environmental review.
project an environmental review will be conducted.
Prior to constructing the
FISCAL IMPACT
The conceptual financing plan recommends a $125,000 contribution from the
County of San Diego, a $125,000 contribution from the City of Poway Street
Improvement Fund, and a $100,000 contribution from the Water Fund. Balance of
project costs (approximately $540,000) will be funded by property owners.
ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE
Ron Plumb, Tara Fields, Dan Stussy, Jeff Cooper, Ann Hicks, Bob Borntrager,
and Charles Hayes; notice to all property owners in High Valley.
RECOMMENDATION
It is recommended that the City Council approve a conceptual financing plan
for the formation of the High Valley Assessment District to replace CSA V
which includes $125,000 contribution from the County of San Diego, $125,000
contribution from the City Street Improvement Fund and a $100,000 contribution
from the Water Fund; and direct staff to return to Council with a resolution
designating an assessment engineer to prepare a preliminary engineers report
as required by the Municipal Improvement Act of 1913.
Attachments:
A - District
B - Table 1
C - Table 2
D - Table 3
E - Table 4
F - Schedule
Boundaries
4 OF 10
JAN 5
1995
ITEiIII 4
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$4,750
$4,500
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12/12/94
TABLE 1
Assessment per Benefit Unit Including $250,000 Agency Contribution
(Cash Payoff Amount)
--- ------------- --- ----- ----- ------------- -- -------- ------------ -------- - ---- - - -----------
- J- II Ex~IUding Additional Parcels
--- . Including Additional Parcels
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Zone A
The rales per Benefit UnU shown are for Assessments paid in full during the 30 day cash
collection period and have been reduced by the financing costs-
High Valley Road Assessment Alternatives
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TABLE 2
Assessment per Benefit Unit Including $250,000 Agency Contribution
(Annual Assessment Amount)
High Valley Road Assessment Alternatives
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TABLE 3
Assessment per Benefit Unit Including $250,000 Agency Contribution
and an Additional Contribution for Markar Road and Eastvale Road Water Lines
(Cash Payoff Amount)
$2,968
$3,250
$3,000 \....... ~.... E:;¿Iu.d.-..¡;;.9...-A. .dditi~~~IP;;¿~S
$2,750 . Including Additional Parcels
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$750
$250
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The rates per Benefit UnK shown are for Assessments paid In full during the 30 day cash
collection period and have been reduced by the financing costs.
High Valley Road Assessment Alternatives
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TABLE 4
Assessment per Benefit Unit Including $250,000 Agency Contribution
and an Additional Contribution for Markar Road and Eastvale Road Water Lines
(Annual Assessment Amount)
$142
Zone A
Zone B
Zone C
Zone D
Zone E
High Valley Road Assessment Alternatives
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10 OF 10 ATTACHMENT F JAN 5 1995 ITEM 4 - t