COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Department of Public Works

DATE:

April 7, 2008

BOARD MEETING DATE:

April 22, 2008

SPECIAL NOTICE/HEARING:

45-day noticed public hearing

VOTE REQUIRED:

Four-Fifths

TO:

Honorable Board of Supervisors

FROM:

James C. Porter, Director of Public Works

SUBJECT:

Formation of the La Honda Landslide Assessment District; Levying of assessment; Contract with SEC (PROJECT NO. R2E01 – F-36 [256])

RECOMMENDATION:

1.

Hold a public hearing.

2.

Vote “Yes” on the County’s assessment ballots.

3.

Direct the Clerk of the Board to count all ballots received and tabulate the result.

4.

If no majority protest exists, then adopt a resolution:

4A.

Confirming and approving the Final Engineer’s Report;

4B.

Forming the La Honda Landslide Assessment District,

4C.

Levying the assessment to finance the cost of constructing soil stability improvements and reconstructing lower Scenic Drive,

4D.

Ordering the proposed improvements; and

4E.

Authorizing the Director of Public Works to take the actions necessary for the formation of the District and imposition and levying of the assessments.

5.

If the first resolution is adopted, then take public comment and adopt a second resolution, by a 4/5 vote, declaring an emergency and authorizing the execution of a contract with Soil Engineering Construction for the construction of the improvements within the La Honda Landslide Assessment District.

VISION ALIGNMENT:

Commitment: Ensure basic health and safety for all.

Goal 7: Maintain and enhance the public safety of all residents and visitors.

This action furthers the above-mentioned commitment and goal by initiating the process to reconstruct lower Scenic Drive and improve the stability of the area supporting that roadway.

PREVIOUS BOARD ACTION:

1.

Adopted Resolution No. 069071, on October 30, 2007, authorizing the Department of Public Works to constructing a french drain system on the failed hillsides adjacent to Scenic Drive and to proceed with preparations for the construction of slope stabilization improvements (the “Improvements”) at the earliest opportunity during the next construction season, and continue to communicate and work with the La Honda community to identify cooperative funding arrangements and other potential funding sources. The Board discussed a potential County matching contribution of up to $3,000,000, but took no action in that regard.

2.

Adopted Resolution No. 069214, on January 8, 2008, authorizing execution of an agreement with Soil Engineering Construction, Inc., in the amount of $100,000, for developing plans and specifications for the slope stabilization improvements for the Scenic Drive Landslide.

3.

Adopted Resolution No. 069258, on February 12, 2008, declaring the intent to form an assessment district.

4.

Adopted Resolution No. 069259, on February 12, 2008, approving the Engineer’s Report, setting the public hearing date for the formation of the assessment district, and directing the Director of Public Works to send property owners within the proposed district a notice of the public hearing and a ballot to cast their vote.

5.

Adopted Resolution No. 069319, on March 25, 2008, approving an assessment payment assistance program to aid property owners with hardship conditions.

DISCUSSION:

The Public Works Department has been working with the La Honda community in connection with the proposed slope stabilization improvements and Scenic Drive road repair in response to the La Honda landslide. The proposed Improvements are estimated to cost $6,122,500, and the County has previously proposed to fund $4,000,000 of that cost with the remainder to come from the community through an assessment district. The proposed improvements include the reconstruction of lower Scenic Drive and stabilization work to support that roadway. Consistent with applicable provisions of the Streets & Highways Code, the Board has previously approved the original Engineer’s Report describing the proposed assessment district and assessments.

Shortly after the February 12, 2008, approval of the original Engineer’s Report it was determined that there should have been only 331 Zone 1 assessment units instead of 333 as noted in the Engineer’s Report. The Prop 218 Protest vote ballots reflect the lower number of assessment units, which in turn results in an assessment per assessment unit for Zone 2 of $12,132.68 instead of $12,063.12; and for Zone 1 of $6,064.16 instead of $6,029.73.

Staff recommends that the assessments imposed be based on the lower assessment amounts as shown in the original Engineer’s Report. As such, it is recommended that an Addendum to the original Engineer’s Report be approved and that the County’s total contribution be increased to $4,012,059.44, to account for the reduction in the number of total assessment units.

Before the proposed assessment may be levied, a public hearing must be held and the “protest vote” process required by Prop 218 must be satisfied. The required public hearing has been duly noticed and the required ballots have been mailed to all of the property owners within the proposed District boundaries.

Each owner of an assessment unit of property has been given an opportunity to vote. The County is the owner of one Assessment Unit in Zone 1 and one Assessment Unit in Zone 2. The proposed assessment for a Zone 1 property is $6,029.73; the proposed assessment for a Zone 2 property is $12,063.12. There are 331 Zone 1 assessment units and 11 Zone 2 assessment units. Before the close of the public hearing, the Board will need to determine whether or not it wishes to cast its ballots, and if so, how it wishes to vote. Staff recommends a “Yes” vote.

After the weighted votes are received and tabulated, the assessment district may be formed only if the value of the weighted votes cast in favor of the assessment are equal to or greater than the weighted value of those cast against the assessment – which would mean that no majority protest exists.

If no majority protest exists, staff recommends that the assessment district be formed, the assessment be levied and the proposed contract with SEC Engineering and all of the activities, notices and filings necessary to implement and evidence the assessments and the assessment district be authorized. It is recommended that the Addendum to the Engineer’s Report be approved and that the assessment amounts be as stated in that Addendum.

Public Works has completed a good portion of a French drain system and continues with other stabilization efforts using the County’s own forces. We have been advised that some land movement continues. Land movement threatens the stability of the area, and the lives and property of the local residents, and will impact the ability to reconstruct Scenic Drive. Continuing significant land movement creates an emergency condition. To efficiently address this emergency, the work on the Improvements must begin before the start of the 2008-2009 rainy season, which requires that the contract for the final design and construction of those Improvements be entered into as soon as possible.

Public Works has utilized Soil Engineering Construction, Inc. (SEC) to prepare plans for the proposed improvements, in anticipation of an expedited design/build type of arrangement for the final design and construction. Selection of SEC as the final contractor is based on an informal process, considering knowledge of the work required, prices, mobilization time required to commence work, and estimated time to complete construction. By entering into a design/build-type contract with SEC without going out for public bid will allow the work to proceed in an expedited manner and help address the emergency at hand.

Public Contract Code sections 22035 and 22050 allow for emergency contracting procedures, which include awarding contracts without a formal bidding process upon a four-fifths vote of the Board.

Independent of any activity in connection with the Assessment District, staff is currently designing improvements to Escondido Drive as directed by your Board, which we anticipate completing this summer. Construction of improvements on Escondido Drive should occur shortly thereafter, subject to receiving necessary approvals from the Cuesta La Honda Guild to construct road improvements on their land.

FISCAL IMPACT:

Based on a total estimated project cost of $6,122,500, which includes a contingency of $860,825 (approximately 14%), the assessment for each owner has been calculated on a per assessment unit basis with all assessment units assessed as either a Zone 1 unit or a Zone 2 unit. The assessment units closest to the active slide area (Zone 2) would be assessed at $12,063.12 per unit. The remaining assessment units (Zone 1) would be assessed at $6,029.73 per unit. Based on a 15-year payment with interest at 3.5% per year, the “not-to-exceed” annual assessment payment for Zone 1 is $523.55 per unit per year; the “not-to-exceed” annual assessment payment for Zone 2 is twice that, or $1,047.08 per unit per year.

The initial impact to the General Fund is as follows:

Soil Engineering Construction, Inc. Design Contract

$100,000

Staff Time for Assessment District Election Process

$20,000

These General Fund expenditures are included in the costs to be covered by the assessment district once it is formed. The General Fund will not recoup the funds advanced if the assessment district is not formed.

The County’s assessment would be $12,063.12 for its Zone 2 unit, plus $6,029.73 for its Zone 1 unit, for a total of $18,092.85. In addition to any assessment of County owned property lying within the assessment district, an additional amount necessary to bring the County’s total contribution to $4,012,059.44, inclusive of any assessments paid by the County as part of the assessment district, has been offered. When the Improvements are completed, any balance left from the $6,122,500 total will be credited back to the community property owners and the County in proportion to their respective contributions.

The resolutions have been approved as to form by County Counsel.