HomeMy WebLinkAboutAgenda Statement 1985/05/07 Item 18 COUNCIL AGENDA STATEMENT
Item 18
Meeting Date 5/7/85
ITEM TITLE: Resolution / 2_O /7 Approving an agreement with Otay Valley
Industrial Park and W. F. Maxwell , Inc. for the sharing of the
cost of undergrounding utility lines along Maxwell Road
SUBMITTED BY: Community Development DirectorI<;
REVIEWED BY: City Manager 4 (4/5ths Vote: Yes No x )
The City Council , at their meeting of March 12, 1985, (agenda statement and
minutes attached) approved sharing of the costs of undergrounding utility
lines along Maxwell Road within the Otay Valley Road Project Area as follows:
1/3 cost paid by City
1/3 cost paid by W. F. Maxwell
1/3 cost paid by Otay Valley Industrial Park
The minute action approving this project also referred the matter to the
Redevelopment Agency for further consideration. However, this project is
funded with Community Development Block Grant funds and, therefore, falls
under the purview of the City Council . Consequently, the Council is requested
to approve and enter into the attached agreements with the abutting property
owners for sharing of the cost of this project.
RECOMMENDATION: That the City Council adopt the resolution approving an
agreement for sharing of the cost of undergrounding utility lines along
Maxwell Road with Otay Valley Industrial Park and W. F. Maxwell , Inc.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
DISCUSSION:
Otay Valley Industrial Park (Sammis Properties) is developing a 40-acre parcel
abutting Maxwell Road to the west. The Municipal Code requires the
undergrounding of overhead utility lines adjacent to property to be developed
if the street frontage exceeds 600 linear feet. The industrial park property
frontage exceeds 600 feet.
Several factors are complicating undergrounding the utility lines as follows:
1 . There are eight utility poles along Maxwell Road between Otay Valley Road
and the County landfill . However, only two poles are on the west side of
Maxwell adjacent to the industrial park. It is more cost effective to
underground all eight poles at one time rather than the separate projects
of two poles now and five poles later.
Page 2, Item 18
Meeting Date--57778-5—
2. W. F. Maxwell , Inc. , owner of the property on the east side of Maxwell
Road, does not intend to develop in the near future. The property is
currently being used to store construction equipment and materials.
Utility poles bordering this property would, therefore, remain
indefinitely.
3. One pole is located on a small parcel bordering both Maxwell Road and Otay
Valley Road. This pole cannot be removed until lines along Otay Valley
Road are undergrounded.
At the March 12th meeting, the City Engineer proposed the City share the cost
of undergrounding seven poles with the two major land owners, each paying
one-third of the cost. Based upon this proposal , a contract was developed
which stipulates that the City will pay the cost of undergrounding the utility
lines, estimated at approximately $115,000. The abutting property owners or
their successors will be required to reimburse the City up to one-third of the
cost each at the time that their property develops. If their properties
develop incrementally, then the costs will be assessed on a square foot basis.
The attached agreement has been reviewed and signed by principals of Otay
Valley Industrial Park and W. F. Maxwell , Inc. The Council is requested to
approve this agreement this evening.
FISCAL IMPACT: The cost of undergrounding utilities along Maxwell Road has
been estimated at $115,000. Funds for this project are currently available
within the CDBG budget under the Economic Development Revolving Fund. This
fund was set up to assist in the provision of capital improvement projects to
stimulate economic development.
Although the City is requested to pay approximately $115,000 to cover the
costs of design and construction of this project, substantial reimbursements
are anticipated within the coming year based upon current proposals for
development within the industrial park. Furthermore, if the Pacific Lighting
proposal to construct a methane recovery plant on the County landfill is
approved, they will be required to contribute towards this project.
It is anticipated that the City's 1/3 share of the undergrounding costs may
reimbursed to the Block Grant budget from tax increment funds accruing from
new development in the project area in the next few years.
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