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HomeMy WebLinkAboutAgenda Statement 1983/08/16 Item 21a-b COUNCIL AGENDA STATEMENT Item21 a b, Meeting Date 8/16/83 ITEM TITLE: a. Follow-up Report on the improvement of the Third Avenue Central Business District alleys b. Resolution //3s Amending the FY 1983-84 Capital Improvement Prograth budget to increase funding for two alley improvement projec . SUBMITTED BY: City Engineer d /5ths Vote: Yes No x ) Community Deve opment Director`, REVIEWED BY: City Manager At the May 24, 1983, Council meeting, the Engineering and Community Development Departments presented a joint report on the improvement of the Third Avenue Central Business District (CBD) alleys. This report discussed the deteriorating conditions of the alleys located within the study area and recommended that their improvement be considered in the FY1983-84 CIP submittals during budget sessions. Council , however, directed staff to investigate the possibility of improving these alleys via the formation of 1911 act assessment districts and to return with a report on that investigation. RECOMMENDATION: That Council : 1 . Accept the report. 2. Increase the funding for the two alleys serving primarily residential uses from 50% to 100%. 3. Transfer the funds budgeted for the alley overlay program to the two residential alley accounts. 4. Direct staff to proceed with the formation of 1911 Act Assessment Districts to improve the Third Avenue CBD alleys. BOARDS/COMMISSIONS RECOMMENDATION: The Project Area Committee encourages the City to proceed with the project (since the rebuilding and paving of the alleys is an important step in the redevelopment of downtown) . DISCUSSION: Background There are 13 alleys located within the Third Avenue CBD study area (see Exhibit 1 ) . Engineering staff evaluation of the condition of these alleys indicates that 10 of the 13 alleys are in need of repair, overlay, or total reconstruction. Eight of the 10 alleys needing attention serve primarily as access ways to the parking lots located behind the Third Avenue businesses and shops. The other two alleys serve mostly residential land uses. All ten alleys however, are used by both vehicular and pedestrian traffic. // 35 Page 2, Item 21 a,b, Meeting Date 8/1b/83 Although the City is not legally obligated to repair and/or reconstruct the alleys, staff in May 1983, recommended that four alleys found to be in need of immediate reconstruction be improved with CDBG funds. This recommendation was not accepted by the City Council . Instead, during the CIP budget hearings, Council voted to fund (100%) the reconstruction of one alley and to participate in the improvement of the other three alleys via 1911 Act Assessment District procedures. The City's participation in these procedures was limited to 50% of the alley construction costs plus all engineering, inspection and administrative expenses. Also included in the FY 1983-84 CIP budget were funds for a program to overlay the other six alleys. In total, Council funded $195,900 from the Redevelopment Agency funds for alley improvement construction or participation in 1911 Act proceedings as follows: FY 1983-84 FUNDED ALLEY PROJECTS Project Alley Location Amount Remarks BF-16 Between Third and Del Mar Ave. $65,700 P.C.C. paved alley built from "F" to Center St. to City standards, but failed BF-17 Alley Overlay Program 31 ,000 Overlay of 6 alleys to prolong usability BF-18 Between Garrett and Landis Ave. 24,500 Residential alley, 50% from Davidson to "F" St. City funding BF-19 Between Garrett and Landis Ave. 33,300 Residential alley, 50% from "E" to Davidson St. City funding BF-20 Between Third and Church Ave. 41 ,400 Commercial alley, 50% from Center to Madrona St. City funding TOTAL $195,000 Program Reconsideration As directed by Council , however, staff has analyzed the Third Avenue CBD alley improvement commitment and recommends the following revisions: 1 . That funding for the two alleys serving primarily residential uses be increased from 50% to 100%. The total contribution increase is estimated to be $31 ,000 (see Exhibit 1 for alley locations) . 2. That the alley overlay program be postponed and that the budgeted funds ($31 ,000) be used to cover the contribution increase recommended above. 35 Page 3, Item 21 a,b, Meeting Date 8/16/83 3. That the improvement of the remaining six alleys be accomplished via the formation of 1911 Act Assessment Districts. City participation in the amount of 100% for the improvement of the two residential alleys is believed to be appropriate. In the past, the City has improved other residential alleys at no cost to the property owner as part of the Community Development Block Grant program. Thus, the recommended revision is intended to reflect and be consistent with past City residential alley improvement contributions. The postponement of the alley overlay program is recommended due to drainage and economic considerations. If overlaid, the six alleys must be rebuilt at the end of their usable life and it is believed that such an expense could be saved if the alleys are reconstructed instead. Business Cooperation Prospects In an effort to ascertain the reception to the formation of 1911 Act Assessment Districts for the improvement of the Third Avenue commercial alleys, staff attended several Downtown Business Association meetings. At these meetings, the alleys and their improvement extent were discussed. The Association was found to be receptive to the formation of 1911 Act Assessment Districts to finance the construction of the alley improvements. In addition, they voted to not underground the utilities along the alleys in conjunction with alley improvement projects. Staff, therefore, feels optimistic that the 1911 Act procedure could be successfully used to improve the six alleys within the near future. As an encouragement to the formation of 1911 Act Assessment Districts, for the improvement of the six alleys, staff is ready to work hand-in-hand with the downtown business property owners. As an incentive for property owner participation, it is recommended that the City should contribute all design, engineering, inspection and administrative expenses associated with 1911 Act Assessment procedures and to share on a 50-50 basis all improvement construction costs. The total City contribution is estimated to be about $249,000. This amount will not be required immediately as the City's share will be needed as the districts are formed. For this reason, staff will include in the FY 1984-85 and subsequent budgets an amount considered adequate to cover the City' s annual alley improvement share. If an overwhelming response is obtained this year from the Third Avenue Business property owners, staff will return for Council fund aprpoval . Redevelopment Agency funds are available to cover the proposed City alley improvement commitment. A transparency showing the recommended alley improvement program revisions is available for Council viewing. FISCAL IMPACT: Implementation of the recommended actions for FY 1983-84 will result in no increase in the already budgeted alley improvement expenditures. The $31 ,000 budgeted alley overlay program funds (BF-17) should be transferred as shown on the table listed below: 35 Page 4, Item 21 a,b, Meeting Date 8/ lb/83 BUDGETED REC. TRANSFER PROJECT TITLE AMOUNT AMOUNT TOTAL BF 18 Alley improvement between $24,500 $11 ,700 $36,200 Garrett and Landis Avenues from Davidson to "F" Sts. BF 19 Alley improvement between 33,300 19,300 28,400 Garrett and Landis Avenues from "E" to Davidson Sts. TOTAL $57,800 $31 ,000 $88,800 Formation of 1911 Act Assessment Districts to improve the remaining alleys would cost the City about $249,000 in the near future. RS:fp/GY029 WPC 0587E • /'i CoUnC" of by the Cl� cait ornia Gtaa Vitsta" Oated 3 5 _.