HomeMy WebLinkAbout1993-02-09; City Council; 12072; ESTABLISHMENT OF HOLLY BRAE-ALDER AVENUE SEWER CONSTRUCTION REIMBURSEMENT FEEJ4a) h
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CI)Y OF CARLSBAD - AG~A BILL u
AB # 131 01 & DEPT. I TITLE: ESTABIJSHMENT OF
MTG.
DEPT. u &M CITY M
2/9/93 HOLLY BM-ALDER AVENUE SEWER
CONSTRUCITON REIMBW- FEE GlTY A'
RECOMMENDED ACTION:
1. Determine that the line fee cost for Holly Brae-Alder Avenue sewer constructia
project is an appropriate charge to property owners who benefit from thc
availability of the sanitary sewer service;
2. Adopt Resolution No. 93-33 setting a construction reimbursement fee fo
the sewer project;
3, Consider property owners' requests asking for alternate payment methods
Should Council wish to consider alternative methods, direct staff to return wit1
a report addressing Council concern.
Item Explanation:
The purpose of this agenda bill is to set final line costs for property owners connectin
to the recently completed Holly Brae-Alder Avenue sanitary sewer line.
Bahund
The construction of the Holly Brae-Alder sewer project was initiated more than thrc
years ago by residents of the area who were experiencing septic tank failure.
Since the septic tanks for the majority of the homes on Holly Brae Lane and Aldf
Avenue were functioning at that time, a voluntary sewer assessment district was n<
work a hardship on some property owners if immediate payment for the constructio
was imposed at the time of completion. Therefore, when the project was presented 1
the City Council, the Utilities and Maintenance staff recommended that the cost of tl
sewer line be funded by Sewer Enterprise funds with the Sewer Enterprise Fund beir
reimbursed by property owners when their property was connected to the sewer. 12
cost of the improvements would be apportioned by benefit based on the ninetec
dwelling units that will be served. This would allow each property owner to pay f
hisher portion of the total cost at the time of connection rather than at the time
considered practical. City staff believed that a voluntary financing mechanism COUI
~ construction-
On April 9, 1991, Council adopted Resolution No. 91-111 approving a plat map to
establish a sewer main reimbursement fee for the Holly Brae Lane-Alder Avenue sew
main, pursuant to the provisions of Section 13.08.035 of the Carlsbad Municipal Coc
0 z with the following City Council added provision:
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"The fee will remain one-nineteenth (1/19) of the total construction cost
of the sewer line for the first three years from the date of acceptance of
the sewer line by the City. After that date, the fee will be subject to an
dl 0
e m PAGE 2 OFAB# /~,O~~
additional cost, equivalent to the rate of interest earned by the Sewer
Enterprise Fund at the time of connection, compounded annually on the
anniversary date of completion of the sewer project. In no event will the
interest assessed exceed eight percent (8%) annually."
The City Council established the above interest provision to assure that the Sewer Func
would earn future interest on the monies advanced from the Fund to construct thc
Holly Brae project. Had these reserve funds not been used for this Project, the Sewel Fund would have earned investment interest.
On April 19, 1991, Council approved Resolution No. 91-113 approving plans anc
specifications and authorizing the City Clerk to advertise for bids for the constructio1
of the Holly Brae Lane-Alder Avenue sewer line, and appropriating $225,000 from th,
Sewer Enterprise Fund for construction of the sewer main.
On September 3, 1991, Council adopted Resolution No. 91-280 accepting bids an1
awarding a contract for the construction of Holly Brae Sewer Line, Project No. 330'
to Grbavac Construction.
The sewer line construction has now been completed and on September 22, 199:
Council adopted Resolution No. 92-289 accepting the Holly Brae Lane-Alder Avenx
Sewer Line, Project No. 3309, as complete and directed the City Clerk to record
Notice of Completion and release bonds in accordance with State Law and Cil
Ordinances.
Allocation of Costs:
At this time Utilities and Maintenance is requesting Council to approve a resolutia
establishing a fee for property owners connecting to the Holly Brae-Alder Avenue sew
line. This fee is based on a construction cost divided by the nineteen potential sew
hookups which the line was designed to serve. It should be noted that this cost w
be for the homeowners' portions of the construction and excludes the additional Cit
wide $1,610.00 sewer hook-up fee collected by the City's Engineering Department pri
to the time a connection to the City sewer system takes place.
The City's Engineering Department has determined the final construction cost to 1
$220,306.00. Therefore, with nineteen potential single family properties participatir
the assessment would be $11,595.00 each if the attached resolution is approved
written, plus a sewer hook-up fee of $1,610.00.
The UtWes and Maintenance Department held three meetings with the propel
owners in the time prior to, during, and after construction to discuss their individl
needs during construction and the final project cost reimbursement method.
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PAGE 3 OF AB# /a,o %
Property Owners' Petition on Interest:
The sewer construction cost repayment system initially appeared to be acceptable to the property owners, However, they did submit a petition opposing the "interest" clause
which is included in this agenda packet (Exhibit 2, Petition 1). The City Cound could
extend the grace period, reduce the maximum interest rate, eliminate the inters1
clause, or deny the request. To encourage timely connection and to ensure that thc
Sewer Fund earns investment income on the funds advanced for this project, st&
recommends that the City Council deny the property owners request for relief from thc
interest provision.
Property Owners' Petition on Funding:
The City received an additional petition from the property owners dated June 1,1992
requesting City Council to "reconsider the funding for the project and allow the City c
Carlsbad to share in a substantial portion of the total costs" (Exhibit 3, Petition 2).
Ordinarily, sewer is provided when new homes are constructed and the cost is include(
in the cost of the home. When sewer is installed where property is served by sept:'
systems, as a matter of policy the cost of construction has been borne by the benefittin
property. Staff recommends that City Council deny the property owners' request tlx
the City bear the cost of the sewer construction project.
Property owners have been advised of this Council meeting and they may wish t
address the City Council concerning their petitions.
If requested by Council, after considering the two property owner petitions, staff w'
prepare a report on alternate repayment methods for Council's consideration.
Should the City Council approve the construction reimbursement fee as recommende
the Resolution will be recorded against each property in the reimbursement area.
Fiscal Impact:
The total amount of $220,306 for construction of the Holly Brae-Alder Avenue sew
line has been advanced and paid by the Sewer Enterprise Fund. Benefitting propel
owners will repay their portions of the construction cost upon connection to the lir
For the first three years the Sewer Enterprise Fund will lose earned interest on t
unpaid portion of the total assessment costs. There is no impact on the General FUI
e Y PAGE 4 OF AB# /2,01.3
Exhibits:
1. Resolution No. Q ~-~~ setthg an equivalent dwelling unit sewer main
reimbursement fee for the Holly Brae Lane-Alder Avenue sewer main pursuant
to the provisions of Section 13.08.035 of the Carlsbad Municipal Code.
2. Letter from property owners requesting waiver of additional interest charge.
3. Letter from property owners requesting the City fund a portion of the sewer line
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"# L< <-e L :
RESOLUTION NO. 93-33
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CAqLSBAD, CALIFORNIA SETTING ,AN EQUIVALENT
DWELLING UNIT SEWER MAIN REIMBURSEMENT FEE FOR
TO THE PROVISIONS OF SECTION 13.08.035 OF THE
CARLSBAD MUNICIPAL CODE.
THE HOLLY BRAE LANE-ALDER AVENUE MAIN PURSUANT
WHEREAS, the City Council of the City of Carlsbad, California has ad(
alternative provisions for establishing a sewer main line cost fee in Title 13, Ch
13.08, Section 13.08.035 of the Carlsbad Municipal Code; and
WHEREAS, the City Council has approved said method of reimbursemer
property owners within the Holly Brae Lane-Alder Avenue area per Resolution No. 9:
at a regular meeting of the Council on the 9th. day of April, 1991; and
i WHEREAS, the construction of said sewer line has been completed and app
by the Council per Resolution No. 92-289 on the 22nd day of September, 1992; ar
WHEREAS, final construction cost to be reimbursed by the property ownel
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benefitting equivalent dwelling units as per aforementioned Resolution No. 91-11 1 16
WHEREAS, the final cost of construction is to be equally divided by nil 15
been established as $220,306; and
.fee will remain one-nineteenth (1/19) of the total construction cost of the sewer 1;
18 the first three years from the date of acceptance of the sewer line by the City. Aft(
date, the fee will be subject to an additional cost, equivalent to the rate of interest 19 by the Sewer Enterprise Fund at the time of connection, compounded annually
anniversary date of completion of the sewer project. In no event will the interest a: 2o I 21
22
23
24
25
26
27
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exceed eight percent (8%) annually."
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Ca
California, as follows:
1. That the line cost fee for each equivalent dwelling unit upon connectior
Holly Brae Lane-Alder Avenue sewer line will be ser at $1 1,595.00 for the first thrc
from the date of February 10, 1996.
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2
3
4
5
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2. That the plat map, Exhibit "A" and the benefitting parcels and dwelling unii
be served by the project as shown on Exhibit "B" are hereby approved.
3. That this Resolution and Exhibits "A" and "B" will be recorded in the Co.
Recorders Office against each property identified in said Exhibi1:s.
4. That after the date of February 10,1996, the fee will be subject to an addit
cost, equivalent to the rate of interest earned by the Sewer Enterprise Fund at the ti1
connection, compounded annually on the anniversary date of completion of the s
project. In no event will the interest assessed exceed eight percent (8%) annually.
~ 5. That the said fee amount in each will be deposited into the Sewer Ente~ 8
9
Fund.
PASSED, APPROVED AND ADOPTED by the City Council of the C
10
vote, to wit: 11
Carlsbad at its regular meeting on the 9th day of February", 1993 by the folk
12 AYES: Council Members Lewis, Stanton, Kulchin, Finnila
13
14
15
16
NOES: None
ABSENT: Council Member Nygaard
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19
2o ll
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22 ATTEST:
.. 23 11
24
25 26
rn&*kU<N%Fb
(SEAL) 27
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ll
207-063-U
207-065- IO
207-W- I2
..
u.
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c/1 < W EXHIBIT tt~lt OF RESOLUTION=
1
<* Le :e
PARCEL No.
207463- 10
207-063; 1 1
207463- 12.
207-063-24
207-063-25
207-063-27
207-063-28
207-063-29
207-063-30
207-063-3 1
PROPERTY ADDRESS '.
3920 Skyline Road
3930 Skyline Road
3948 Skyline Road
3800 Alder Avenue
3805 Alder Avenue
3810 Alder Avenue
3910 Holly Brae Lane
3815 Alder Avenue
381 1 Alder Avenue
3801 Alder Avenue
SIZE
1 .O 1 acres
1.15 acres
Single Lot
Single Lot
Single Lot
Single Lot
Single Lot
Single Lot
Single Lot
Single Lot
. EDU
2
3.
1
1
1
1
1
1
1
1
207-063-32 38 12 Alder Avenue Single Lot 1
207- 180-02 3920 Holly Brae Lane Single Lot 1
207- 180-03 3930 Holly Brae Lane Single Lot 1
207- 180-04 3940 Holly Brae Lane Single Lot 1
207- 18O-05 3950 Holly Brae Lane Single Lot 1
207- 180-06 3955 Holly Brae Lane Single Lot 1
TOTAL: 19
EXHIBIT "B" OF RESOLUTION x
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June 7, 1991
t
Ilr. Ralph W. Anderson
Utilities and Maintenance Director
2075 Las Palmas Drive
Car 1 sb ad 9 CA 920C15
Dear Mrc. Andepson,
This letter is in regard to your letter of April 16, 1941. The
undersigned home owners are strongly oppased.to the action of the
Carlsbad City Council "that after three years following the date. campleticm fur the sewer project, each cannectian fee will be
assessed interest at the same rate as the sewer enterprise +und,
to exceed eight percent (8X.I 9 until 5uch ti'me that. the sewer
connection is made." We feel that no interest should be assessed
these property owners.
It is understood that home owners who have been in this same
situation have not been assessed interest in the past when they h
not immediately connected to the sewer.
Several septic systems on Alder Ave. and Holly Brae Lane have not
failed. The interest assessment appears to be a mandate that all
home owners conrleciz a-t this tiae. That di3~5 not s;ezz +air.
Yours truly, / A
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EXHIBIT 2 PETITION NO. 1. (Pagc
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June 7, 1991 letter con't
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PETITION NO. I: (Page 2
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PETITION June 1.1'392 % . Sub.ject: Hdly Brae/Alder Ssweic Lim Fvo.ject: #330'3 eeQ92
After aver a year elf planning and approximately four months
of construct icln the above prl=l.je+:t is f ina1l.y nearing completil:tn, This has been a bang and costly pro.ject bi;;,th in
terms I>f muney, frustat ion and inconvenience fl=rr a1 1 those
affected.
Since this prlxj12ct will raise the health standards and
benefit the :Intire city it is cImsidered unfair that mly a
few residents ble asked to bear the tutal financial burden.
In addition to the approximately 3140,00(:) clmtracted to do
the pra.ject sach resident must now pay fur the hlmk up af his
residence tu the central sewer for a varying but very
substantial sum. The lowest figure unofficially quctted is
approximately 840(:)0.0(3 for a very short shallow run.
Many of the resideits participating in this prtxject are
elderly, retired, single parents or stherwise financially
burdened as are most citizens in these austere times. TO
ful fill a pro-rata share of this prlxject without outside assistance wwld be a crushing burden ti2 most,
In view of the fact that this project will be a net yevenue
praducer for the City of llarlsbad in the form of additimal
taxes and the city will gain a substantial asset, it is felt
fair and equable that the City shnuld fund this prtxject.
This is not an unusual prctposal in that other cities havc
funded such uwk. Ths City of Poway is now understtxtd to be
in the final planning for a similar but larger sewer prnject
iappruximately 3:) residents:) which the City will fund.
Therefore we ci,t i=ens and taxpayers of this community request
and urge the IZi,ty IZaunl:il to rec~~nsider the funding for this
prca.ject and allow the City of Carl-sbad ttzt share. in a
substantial portit=rn of the total cctsts.
Siqnature Address oat e -
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v EXHIBIT 3 Petition No. 2 (Page 1 of
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June 1, 1992
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