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HomeMy WebLinkAboutWve All Costs 4 Inspections & Permit - Meter Upgrades @ PDCC UndergrndingCITY OF PALM DESERT STAFF REPORT REQUEST: APPROVAL FOR THE CITY OF PALM DESERT TO WAIVE ALL COSTS ASSOCIATED WITH INSPECTIONS AND PERMIT ISSUANCE FOR THE METER PANEL UPGRADES REQUIRED AS PART OF THE PROPOSED PALM DESERT COUNTRY CLUB UNDERGROUNDING PROJECT IN AN AMOUNT NOT TO EXCEED $285,826 SUBMITTED BY: Catherine Walker, Senior Management Analyst DATE: December 9, 2010 Recommendation By Minute Motion: Approve the City of Palm Desert's waiver of all costs associated with inspections and permit issuance for the meter panel upgrades required as part of the proposed Palm Desert Country Club Undergrounding project. Background The proposed Palm Desert Country Club (PDCC) Utility Undergrounding District was first identified for funding in the Project Area No. 4 bond issuances of 2001 and 2006. The two bond issuances allocated up to $14,000,000 for purposes of neighborhood and arterial undergrounding. Of that amount $688,633 has been spent on engineering design fees, construction estimation services, and assessment district formation for the proposed PDCC Undergrounding project. Wilidan Financial Services has completed the draft of the Preliminary Engineer's Report. The Agency is in the process of utilizing the draft report for the purpose of educating effected residents, and distributing an estimate to each property owner in the proposed district. Further in the process, a finalized Engineer's Report will be brought forward for City acceptance and approval. Finally, the formal process of the assessment district formation will proceed with the final balloting scheduled to take place at a time to maximize participation by the property owners. Staff, in conjunction with Wilidan Financial Services, has conducted two informational forums for residents of the PDCC. The purpose of these forums was to educate residents with regard to the process of undergrounding overhead utility lines, as well as explain the potential monetary impacts. During the outreach sessions, estimated total costs for the project were presented along with projected costs to the residents, and the potential Redevelopment Agency contribution. Residents who attended the forums requested that the Staff Report PDCC Undergrounding Project Meter Panels December 9, 2010 Page 2of2 City look at additional ways to assist with the private cost of the undergrounding. The Redevelopment Agency can only participate in the improvements based in the public right- of- way, and all work on private property must be paid by the residents. Once the new utility lines are installed, individual stub outs will run to each home. The majority of the effected residences will require new meter panels, which will allow for their circuitry to accept the new and much greater electrical load. One measure that could be taken to help alleviate costs would be for the City to waive all costs associated with inspections and permit issuance for the meter panel upgrades. There are approximately 1186 homes in the proposed undergrounding district and a panel upgrade from 0-200 amps is a flat fee of $241.00 for each panel upgrade (per residence). This cost includes inspections and permit issuance. Fiscal Analysis The impact of the PDCC Undergrounding project cannot yet be accurately determined, and is contingent upon approval of the assessment district. However, $688,633 has been expended on design fees, construction estimation services, and consultant services in relation to the formation of the assessment district. The proposed Agency participation in the amount of $12 million would be in addition to these expenditures. In the event that this waiver is approved there would be a $285,826 potential loss in General Fund revenue to be derived from the permit and inspection fees. Submitted By: &kW,/ /,Ot t Catherine Walker, Sr. Management Analyst Department Head: Paul S. Gibson, Director of Finance Appro Joh /M. Wohlmuth, City Manager artin Alvarez, Redevelopment Manager CITY COUNCILON APPROVED DENIED RECEIVED OTHER edevelopment V E ETI{G DAT , (9 - (J(/' (S{0/O aV ES: 1l l /7 Y / r ;�f.=3'! ,SENT: J D' ,/ S FAIN• .unr1 ERIFIED BY: l�C_JKJ,��iG��1'1 Original on File with City 6k rk's Office G:\rda\Cathy Walker\Word Data\StfPDCCMeterPanels.doc