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Home My WebLink AboutFeasability Study for the Formation of a Street Maintenance • e •rfBeaci Feasibility Study for the Formation of a Street Maintenance Assessment District .0� y 'mom wY p 3., !P#qatL R 1 Purpose and History LJ Earlier this year,the City's Pavement Management Plan(PMP)was presented to the Public Works Commission and the City Council. •The PMP identified a need to supplement current funding levels in order to maintain the current pavement condition. •City Council directed staff to present alternative funding mechanisms, such as a tax or an assessment. LJ At its Strategic Planning Session in July 2011,City Council asked staff to study the feasibility of forming an Assessment District(s). BUCKNAM&ASSOCIATES,INC. 2 SUPPLEMENTAL COMMUNICATION N Agenda Item No. Backgrbuhd ❑Assessments: •Based on special benefit,not on property value •Are used to pay capital improvements and maintenance •Are based on assessing real property that directly benefit from the improvements or services •Can include annual adjustments •Can continue as long as the benefit is received •Will require the City to provide written notice to all affected property owners and conduct public hearing as required by Proposition 218 BUCKNAM&ASSOCIATES,INC. 3 Backgrpkind • • ❑Assessments: •Require approval of more than 50%of the weighted ballots from property owners •Example: if Property Owner A would pay twice as much as Property Owner B,then Property Owner A's vote would "count"twice as much as Property Owner B(e.g.by EDU) BUCKNAM$ASSOCIATES,INC. 4 , Description of ❑ Types of street maintenance: i •Routine pavement maintenance 4 •Pavement sealing •Pavement overlay w n . •Pavement reconstruction BUCKNAM&ASSOCIATES,INC. 5 Method of Apportionment , ❑Determination of Equivalent Dwelling Units(EDU) •Necessary to"proportionalize"various different land uses •Use of daily trip miles of each land use category •Use of unit count or acreage of parcel •Detached residential parcel serves as 1 EDU •Formula: EDU=(Acres or Units)x EDU per DU or acre BUCKNAM&ASSOCIATES,INC. 6 3 Method of Apportionment (conVd), Daily Trip Generation Rates and EDU Factors Average Avg Trip Miles EDU per 1,000sf DUs/1,000 per DU or Bldg Area EDU per Proposed Land Use Acres sf Bldg Area DU/1,000sf 1,000sf per Acre DU/Acre Detached Dwelling 6,436 38,616 34.60 1.00 1.00 Attached Dwelling 1,805 36,108 23.10 0.67 0.67 Mobile Home Dwelling 205 2,865 18.10 0.52 0.52 Hotel/Motel Lodging 33 1,070 15.40 0.45 0.45 Resort Lodging Units 20 809 26.70 0.77 0.77 CommerciallOffice Uses 842 12,836,000 32.50 0.94 15.24 14.32 . Industrial/Manufacturing 930 20,261,000 22.60 0.65 21.79 14.23 10,271 BUCKNAM&ASSOCIATES,INC. 7 City • Sample Area • • . z ❑Zone 6 of PMP was chosen as Sample Area for local streets v, • Currently programmed for improvement in FY 2017-18 -_ - ❑ Sample Area includes 3,997 EDU's 4 ❑90,613 EDU's citywide t BUCKNAM&ASSOCIATES,INC. 8 l 4 Funding Scenario 1: No Funding Sample Area Citywide Citywide Local Arterial Parking Lots Total improvement cost $2,225,891 $2,654,481 $ 647,393 Other improvements $ 0 $ 0 $ 0 Less:Other funding $ 0 $ 0 Net cost $2,225,891 $2,654,481 $ 647,393 Add: Administrative cost $ 25,000 25 000 $ 2,928 Total revenue required for maintenance $2,250,891 $2,679,481 $ 650,321 Total number of equivalent dwelling units 3,997 90,613 90,613 Estimated cost per EDU $ 563.03 1 $ 29.571 $ 7.18 BUCKNAM&ASSOCIATES,INC. 9 Funding Structure , Scenario 2: With Funding Sample Area Citywide Citywide (Local Streets) Local Arterial Parking Lots Total improvement cost $2,225,891 $2,654,481 $ 647,393 Other improvements $ 0 $ 0 $ 0 Less:Other funding $1,000,000 $0 $ 0 Net cost $1,225,891 $2,654,481 $ 647,393 Add: Administrative cost $ 25, 000 $ 25, 000 $ 2,928 Total revenue required for maintenance $1,250,891 $2,679,481 $ 650,321 Total number of equivalent dwelling units 3,997 90,613 90,613 Estimated cost per EDU $ 312.90 $ 29.57 $ 7.18 BUCKNAM&ASSOCIATES,INC. 10 5 Samples of Assessments Sample Area Citywide Parking One-Time Assessment Total Assessment per EDU: Local Arterial Lots Assess- Paid Over 10 ment Years` Scenario 1:Properties on public streets $563.03 + $29,57 + $7.18 = $599.78 $69.87/year Scenario 2:Properties on public streets $312.90 + $29.57 + $7.18 = $349.65 $40.73/year Properties on private streets $29.57 + $7.18 = $36.75 $4.28/year Scenario 1: Scenario 1: Scenario 2: Scenario 2: One-Time Assessment One-Time Assessment Assessment Paid Over 10 Assessment Paid Over 10 Sample Assessments: Years' Years' Public Streets: 1-unit,detached dwelling' $599.78 $69.87/year $349.65 $40.73 2-unit,attached dwelling2 $803.71 $93.63/year $468.53 $54.58 0.218-acre,commercial/office3 $1,872.37 $218.12/year $1,091.52 $127.15 0.252-acre,industrial/manufacturing4 $2,150.79 $250.55/year $1,253+83 $146.06 Private Streets: 1-unit,detached dwellings $36.75 $4.28/year $36.75 $4.28/year 2-unit,attached dwelling6 $49.25 $5.74/year $49.25 $5.74/year 'APN 159-054-M 2APN 167-181-01:'APN 159-28 1-01:'APN 165-261-39,`APN 159-271-29:6APN 111-421-62 Assumes a 3%interest rate with equal annual pad inents for ten fears.. BUCKNAM&ASSOCIATES,INC. Formation of Formation Procedures and Timeline 'Action`Item i Time to Complefe 1 1. Identify parcels,prepare report 120- 180 days 2. Adopt resolutions, send notice 30-40 days 3. Ballot procedures and public hearing Not less than 45 days 4. Enact if no majority protest received 30 days Estimated time to form district 7.5 months to 10 months BUCKNAM&ASSOCIATES,INC. 12 6 Sample Districts ❑City of San Clemente AD 95-1 •Restore approximately 60 miles(1/2)of City streets over 18 years •AD 95-1 has expired,final assessment collected in FY 2010-11 ❑ City of Elk Grove Maintenance District No. 1 •Five zones formed •Assessment in perpetuity ❑City of La Habra Heights •Assessment levied for five years •First levy in FY 2007-08,final levy FY 2011-12 BUCKNAM&ASSOCIATES,INC. 13 of • • Public Opinion Survey True North Research, Inc. December 2011 14 7 , About • Specialize in working with public agencies on community and revenue measure feasibility surveys •Over 600 surveys for CA public agencies,250+for cities •200+revenue measure feasibility surveys •Unmatched experience with assessment-related surveys •95%success rate •Our research has helped raise more than$20 billion at local level through successful tax measures and assessments TRUE NORTH RESEARCH,INC. 15 Purpose of The survey will: •Develop a statistically reliable understanding of the community's interests as they relate to streets&roads • Determine if it is feasible to pass an assessment to fund street repairs and maintenance •If it is feasible, identify how can it be packaged for success by aligning it with the community's priorities,sensitivities, and concerns • Show property owners you are interested in their opinions •Gather information to aid decision-making TRUE NORTH RESEARCH,INC. 16 8 Packaging for The survey helps package a measure for success by guiding: •Ballot Language •Information Piece that accompanies ballot •Fee Rate •Project/Service Priorities •Messaging&Outreach •Targeting •City-wide or by districts/zones TRUE NORTH RESEARCH,INC. 17 Nam.`. Proven Methodology Phase 1: Telephone Survey of Residential Property Owners •Conduct in January •400 property owners, stratified&clustered sample •Accurate results with+/-5%margin of error • 15 minute survey covering all aspects of measure package Phase 2: Mail Survey of All Property Owners •Designed to simulate actual mail balloting process •Includes information piece&survey ballot question • 10,000 mailed,expect 20%to 25%return •Detailed analysis citywide, by districts/zones&property type TRUE NORTH RESEARCH,INC. 18 9 StepsNext n,. ❑ Conduct Public Opinion Survey ❑Provide survey results to City Council o City Council to Provide direction moving forward BUCKNAM&ASSOCITES,INC. /TRUE NORTH RESEARCH,INC. 19 Fe"ri�yA° ,. Thank You r t _z ' ✓ F tt BUCKNAM&ASSOCITES,INC. /TRUE NORTH RESEARCH,INC. 20 10