HomeMy WebLinkAboutresolution.council.037-98
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RESOLUTION NO. ~
Series of 1998
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO,
DECLARING THAT THE FORMATION OF A LOCAL IMPROVEMENT DISTRICT
PURSUANT TO THE COLORADO UNDERGROUND CONVERSION .OF UTILITIES ACT
(ARTICLE 8, TITLE 29 OF THE COLORADO REVISED STATUTES) AND CHAPTER 21.28
OF THE ASPEN MUNICIPAL CODE FOR THE UNDERGROUND CONVERSION OF
UTILITIES SERVING THE AREA COMMONLY REFFERED TO AS "THE SMUGGLER
AREA IN THE CITY OF ASPEN WILL PROMOTE THE PUBLIC CONVENIENCE,
NECESSITY AND WELFARE..
WHEREAS, the City Council has detemrined that the formation of a local improvement district for
the underground conversion of utilities serving the area commonly referred to as the Smuggler Area
(a map of which is appended hereto as Exhibit "A") will promote the public convenience,
necessity and welfare.
NOW, WHEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
ASPEN, COLORADO, THAT:
Section 1.
The City Council of the City of Aspen hereby detemrines that the formation of a local
improvement district for the purpose set forth in the Colorado Underground Conversion of Utilities
Act (Section 29-8-101, et seq., C.R.s.) and Chapter 21.28 of the Aspen Municipal Code will
promote the public convenience, necessity and welfare. .
Section 2.
The City Council herein requests each public utility serving the above mentioned proposed
district within the boundaries of the City of Aspen by overhead electrical or telecommunication
facilities to make a study of the costs of conversion of its facilities in such area to underground
service; or, in the alternative, to legally contract with the City of Aspen that it will convert its
,.-..... primary overhead facilities in the public right-of-way to underground service at its own cost and
expense upon the formation of the proposed district and the award of a contract to a construction or
electrical contractor by the proposed district for the conversion of the secondary services connecting
each parcel within the proposed district to the primary services owned and operated by the affected
utilities.
Section 3.
The costs and expenses of undergrounding such secondary utility services shall be levied
and assessed upon property benefited by such undergrounding.
Section 4.
The City Engineer is hereby directed to provide to each public utility utilizing electric or
telecommunication facilities within the proposed district with the name and address of the owner of
r"\ each parcel or lot within the proposed district, if known, and if not known, the description of the
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property and other such matters as may be required by the public utility in order to perform the
work involved and the cost and feasibility report referenced above.
Section 5.
In the event that the public utilities servicing the proposed district by overhead utility
facilities do not unanimously agree to pay for the undergrounding of their primary facilities in the
public right-of-way upon the formation of the proposed district, a report of the cost and feasibility
of converting overhead utilities within the proposed improvement district shall be filed with the
City Clerk within .one-hundred-twenty (120) days from the adoption of this resolution and will be
made available for public inspection in the offices of the City Clerk.
Section 6.
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The City Council's preliminary detemrination as to the method for assessing each lot or
parcel within the district is to assess the costs in the following manner:
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a) All secondary service connections attributable to Holy Cross electrical
facilities shall be assessed the actual costs directly to the owner of the property upon which
such work is performed.
b) All costs attributable to the conversion of US West facilities shall be
assessed equally to all owners of either property upon which actual physical conversion
work is performed or property which is adjacent to or across the street from the
conversion of primary communication facilities.
c) The cost attributable to acquisition of access easements for electrical
facilities shall be assessed equally to all owners of property who are subject to assessment
under subsection a).
d) Design, engineering, project management, and project administrative costs
shall be assessed equally to all property owners within the District.
e) Bond issuance costs shall be assessed equally to all property owners who
chose to finance their assessments.
Dated:
f}~11
,1998.
JOhns.~tt,~~
I, Kathryn S. Koch, duly appointed and acting City Clerk do certify that the foregoing is a
true and accurate copy of that resolution adopted by the City Council of the City of Aspen,
(
Colorado, at a meeting held ~ II ,1998.
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JPW-05/0SJ98-G:\john\word\resos\smug-l.doc
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Proposed Smuggler Undergrounding Improvement District
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HOMEOWNERS' PETITION FOR THE CREATION OF AN IMPROVEMENT
DISTRICT TO UNDERGROUND EXISTING OVERHEAD UTILITY
FACILITIES IN THE SMUGGLER TRAILER COURT AREA
We, the undersigned owners of property within the area depicted on the attached map commonly referred to as
the "Smuggler Area," do hereby petition the City of Aspen City Council to create an improvement district for
the Smuggler Area to convert existing overhead electric and communication facilities to underground locations.
We have read a memorandum dated March 18,1998, from the Aspen City Attorney that describes the process
for creating an underground improvement district, the potential costs involved in the formation of the district,
and the individual homeowners' financial responsibilities for those costs.
PRINT NAME
STREET AND NUMBER
DATE
SIGNATURE
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Memorandum
TO:
Mark Hesselschwerdt and Jeff Shoaf
FROM:
John P. Worcester
DATE:
March 18, 1998
RE:
Smuggler Area Undergrounding District
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This memo is intended to set forth in summary form the procedures that need to be followed for the
creation of an improvement district to convert overhead electric and communication facilities to
underground locations within the Smuggler Area, to provide you with some estimate of the costs
involved, and the City's experience with the Cemetery Lane undergrounding project.
The legal authority to create an improvement district for the purpose of undergrounding utilities can
be found in both state statutes and the Aspen Municipal Code. (Section 29-8-101, et seq., C.R.S.
and Chapter 21.28 of the Aspen municipal Code, respectively.) The procedures outlined in these
separate laws are fairly identical, but do vary in some respects. When the City creates an
improvement district for undergrounding utilities, it typically cites both laws for its authority and
follows the procedures set forth in the state statute unless a conflicting provision of the City's
ordinance requires a different approach.
The City Council may initiate the creation of an improvement district on its own initiative or upon
the filing of a petition by property owners in the proposed district. The decision to form a district
lies with City Council and is based upon a detemrination that to do so would promote the public
convenience, necessity, and welfare for the citizens of the City. The City Council has adopted a
policy that it will not initiate an improvement district unless it is in the best interests of the City to
do so and at least 75% of the property owners in a proposed district sign a petition indicating their
desire to form such a district.
1.
Resolution for cost and feasibilitv study. This is the first formal step in the process.
a. The resolution must state that the costs and expenses will be levied and assessed
upon the property benefited and further request that each utility serving the area
make a study of the cost of conversion of its facilities to underground service.
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The resolution must also state City Council's preliminary detemrination as to the
method of assessing each lot or parcel within the proposed improvement district.
The utilities serving the area then have 120 days in which to prepare a study of the
costs of conversion of their facilities.
Either the City or the utilities may require that a bond be filed to cover the expenses
incurred in preparing the cost and. feasibility study in the event that the district is .not
formed.
The cost and feasibility report is an estimate prepared by the utilities for
underground conversion costs including the costs of undergrounding facilities
located on individual property owners' land. It is also supposed to contain the public
utilities' recommendations concerning the feasibility of the project and
recommendations for including or excluding areas within the district or immediately
adjacent to the district.
The cost estimates contained in the report are not binding upon the utilities if
construction is not commenced within six months of the submission of the report.
If the public utilities currently serving the area cooperate with the formation of an
improvement district, the requirement of a cost and feasibility report and the
associated time for preparing such a report may be avoided. This is essentially what
occurred in the Cemetery Lane project. Both Holy Cross and US West agreed to not
only cooperate with the formation of the district, but to financially participate in the
costs of the project. They agreed in the Cemetery Lane project to assume the cost of
undergrounding their utilities in the public right-of-way (the "primary system") on
condition that the homeowners, through the district, fully pay for the "secondary
system" (those utility lines crossing private property.) This was a great advantage to
the homeowners as they avoided the major expense of paying for undergrounding
the primary utility lines. I understand from my discussions with Mark that both Holy
Cross and US West have made similar commitments to participate in the formation
of the Smuggler Area and to assume the cost of undergrounding their primary lines.
If this is the case, City Council may still adopt a resolution requesting the cost and
feasibility reports from the public utilities, but allow the public .utilities and the
district to jointly and cooperatively prepare estimates of all costs. This will require
the district to engage the necessary consultants to prepare the cost estimates for the
project.
It is my understanding that if the public utilities agree to pay for the undergrounding
of their primary services, that City Council will be asked to adopt the following the
preliminary method for assessing costs to individual property owners:
1) All secondary service connections attributable to holy Cross electrical
facilities shall be assessed the actual costs directly to the owner of the
property upon which such work is performed.
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2) All costs attributable to the conversion of US West facilities shall be
assessed equally to all owners of either property upon which actual physical
conversion work is performed or property which is adjacent to or across the
street from the conversion of primary communication facilities.
3) The cost attributable to acquisition of access easements for electrical
facilities shall be assessed equally to all owners of property who are subject
to assessment under subsection 1).
4) Design, engineering, project management, and project administrative costs
shall be assessed equally to all property owners within the district.
5) Bond issuance costs shall be assessed equally to all property owners who
chose to finance their assessments.
2.
Resolution declaring intention to create a district. Upon the filing of the cost and feasibility
report, whether prepared by the public utilities or the district in cooperation with the public
utilities, the City Council must pass a resolution declaring its intention to create an
improvement district, review the cost estimates and set a time, date and palce for a public
hearing. .
3.
Notice of Public Hearing. Following the adoption of the resolution which declares an intent
to create a district, a public notice must be printed in the newspapers and sent to
homeowners. The notice requirements are quite specific and include not only the date and
time for a public hearing, but particulars about the formation of the district.
4. Public Hearing. At the public hearing, the City Council must hear objections to the creation
of the improvement district. The City Council may make changes to the proposed district,
order new cost and feasibility reports, dismiss any further efforts to create a district, or adopt
a resolution establishing the district and authorizing the project, either as set forth in the
notice or with changes adopted by the City council in reponse to objections or comments
received at the public hearing.
5. Preparation of assessment list. Following a decision to create the district, an assessment list
must be prepared detailing the total amount to be assessed, the specific properties assessed,
and the amount of the assessment on each piece of property within the district.
6.
Notice of public hearing on assessment. Once the assessment list is prepared, a notice must
be published in the newspapers and mailed to property owners. The notice requirements are
fairly specific and include the assessment list, and notice of a date, time and place for a
public hearing to hear objections to the assessment list.
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7. Ordinance to adopt the assessment list. Following a public hearing before the City Council,
an ordinance must be adopted which approves the assessment list. The final assessment list
approved by the City Council may leave the same, increase, or decrease the assessment of
any particular property. However, no increase may be approved unless the owner is given
prior notice and an opportunity to be heard. This means that if any property is to be assessed
an amount greater than stated in the notice, the adoption of the assessment list may have to
be postponed until the affected property owners are notified and given an opportunity to be
heard.
8.
Payment of assessments. All assessments are due within thirty days of the approval of the
assessment list. It is my understanding that .the district intends to have the City issue bonds
to finance the proposed improvements. This being the case, I will not set forth here the state
statutes relating to the payment of assessments and particularly t4e state laws relating to the
failure of property owners to pay within the prescribed time. Please note, however, that
property owners may pay their assessments during this thirty day period and not be required
to participate in the financing of the project through the issuance of bonds or to be levied
through property assessment liens.
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9. Issuance of Bonds. After the expiration of thirty days from the effective date of the
ordinance approving the assessment list, the City may issue bonds in an amount sufficient to
cover the unpaid balance of all assessments. However, with passage of the Taxpayers Bill of
Rights Amendment (TABOR Amendment) to the state constitution, an election must be
scheduled and held before the City can issue any bonds. As you may know, TABOR
elections may only be held in November or in any May when the City is scheduled to have
its general elections. This is a critical date for you to keep in mind, as the whole project will
not be able to start until a vote is scheduled and held.
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The above summary of formal proceedings does not take into account some critical timelines that
you need to keep in mind and other events not specifically spelled out in the state statutes.. Our
experience with the Cemetery Lane project tells us that it would be extremely difficult to obtain all
of the formal approvals that are necessary and be ready for a ballot question this November. City
staff is willing to work with you to try to do so, but I remain skeptical. Part of the problem is that
the district must not only comply with the above stated formal procedure, but also engage
consultants to prepare the cost estimates after the first resolution is passed. Then a formal bidding
process to engage the construction firm must take place before final costs can be detemrined for the
assessment list. Because of the seasonal nature of our weather and construction cycles, timing is
everything when attempting to engage a construction company willing to bid on the project and to
coordinate the district construction season with the public utilities'. Again, City staff is prepared to
help in any way it can, but I must caution you that a November election may be difficult to achieve.
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Finally, I would like to share with you that the cost estimates prepared for the Cemetery Lane
project escalated every time they were refined and reviewed for accuracy prior to final construction
contracts being signed. You and your neighbors must be prepared to make decisions regarding the
creation of the district using cost estimates that may change significantly after the initial estimates
are received. Property owners in the Cemetery Lane district paid anywhere from $600.00 to
$6000.00 to underground their utilities. These costs varied depending upon the size and nature of
the work necessary to bury their secondary services.
If you or your neighbors have any questions regarding the above, please let me know.
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Proposed Smuggler Undergrounding Improvement District
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