The Clearlake City Council, sitting as the Redevelopment Agency, accepted a recommendation on Thursday, Jan. 24 for establishing a program to finance street paving with use of assessment districts. A draft policy, a participant”s letter and informational handout were adopted on a 5-0 vote count during the regularly scheduled meeting.
The program incorporates the participation of the city”s redevelopment agency and residents to pay for street and drainage improvements. According to City Administrator Dale Neiman”s report, for a typical residential street the redevelopment agency would contribute $2,250 (26 percent) of the cost and the residents would pay $6,375 (74 percent). The RDA”s portion includes 100-percent payment for engineering and inspection costs.
“The agency would provide financing for those residents who cannot afford to pay the full cost,” Neiman explained. “Lower-income residents would be eligible for a deferred loan. The loan would be paid off when the property is sold.
“Moderate-income residents would pay approximately $56 per month over a 15 year period and residents with an income above moderate would pay a higher interest rate and have a shorter term (10 years). Their monthly payment would be approximately $81.”
Loans for the first year of the program would be funded with the $923,177 previously budgeted by the redevelopment agency. The agency”s portion of the cost would be funded with bond proceeds.
“Hopefully, we will sell the airport property within the next year,” Neiman said in his report. “We would receive in the range of $2 to $3 million. We would recommend this money be added to the loan program. Future loans would be funded with the repayments and money added to the budget each year.”
The program will be accessible at residents” request. A standard letter has been drafted that will used to inform residents within the assessment district area of their neighbor(s) effort to access the program. The letter will be accompanied by an informational handout explaining the scope of the potential project, its benefits and its cost.
According to the handout, the minimum standard for a residential street includes two 10-foot travel lanes and two eight-foot wide parking lanes for a total width of 36 feet. Adequate construction of the street requires a nine-inch layer of gravel topped by a 2 ? inch layer of asphalt. Construction involves removing the old asphalt, grading the street to the proper elevation and installing the necessary drainage pipes so storm runoff will be carried away in a safe manner; constructing a curb and gutter, adding the gravel and laying the asphalt.
Final cost to the homeowners will be determined once the city prepares construction plans and obtains bids from contactors for the work. “We estimate it will cost each property owner $127.50 per linear foot of the street frontage of your property,” it states in the handout. “For example, if your property is 50-feet wide, we estimate it would cost you $6,375.”
There are several benefits in paving a residential street listed in the handout. Benefits include an increase in property value without an increase in property taxes; improved traffic and pedestrian safety, neighborhood beautification and reduced damage to vehicles from potholes. Adding a curb and gutter has many of the same benefits while improving drainage and extending the life of the new asphalt street.
The redevelopment agency will be responsible for hiring an engineer to prepare the construction plans, managing the work, obtaining bids from contractors to do the work and inspection the work.
The city will proceed with forming an assessment district if more than 60 percent of the property owners sign a petition requesting their street be paved. The people who don”t obtain loans from the city and don”t pay for the work by a certain date will have a lien placed against their property. The lien would be collected through property tax payments and the interest rate will be set at seven percent under a 10-year term.
If more than 50 percent and less than 60 percent of the property owners sign the petition requesting street pavement, an assessment district can be formed with a 4/5 vote by the city council one year after the petition is submitted.
The procedure for people who don”t obtain a loan from the city and don”t pay for the work by a certain date will be handled the same as previously mentioned.
Contact Denise Rockenstein at drockenstein@clearlakeobserver.com.
