Undergrouding GuidelinesUTILITY UNDERGROUNDING
A STEP-BY-STEP GUIDE
CITY OF LA QUINTA
PUBLIC WORKS DEPARTMENT
(760) 777-7000
4 athita
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City of La Quinta
Utility Undergrounding — Step -By -Step Guide
Utility Undergrounding — A Step -by -Step Guide
The options and steps for forming a utility undergrounding district are outlined below.
Option One — Fast Track
1. The process is initiated by an interested property owner, who acts as a liaison between
the City, utility companies, and neighbors. The property owners who support
undergrounding submit a letter to the City's Public Works Department expressing their
interest in forming an Underground Utility Assessment District. The letter should include
a description of the proposed boundaries of the area to be undergrounded.
2. Based on the interest letter, the City prepares a boundary map and submits it to the
appropriate utility companies who review the map to ensure that the boundaries are
logical and feasible. Once the district boundaries are accepted by all parties, the utility
companies provide the City with a preliminary cost estimate for the design and
construction of the undergrounding project.
3. The City then prepares a petition to be circulated by proponents to all affected property
owners within the proposed district boundaries. The petition states the approximate
amount that each property owner would pay if the property owners vote to form the
district to accomplish the undergrounding project. In order for the process to continue,
at least 60 percent of the property owners must sign and express support. This petition is
a "show of support" and nonbinding.
4. Once the petition is certified by the Assessment Engineer, the City Engineer will prepare
a staff report requesting City Council approval to move forward. With Council approval,
the Assessment Engineer will prepare an Engineer's Report. This report documents the
assessment that each property owner within the district would pay, should the district be
approved. This report uses the preliminary estimated construction costs provided by the
utility companies. If the district is formed, funds expended by the City on costs related to
formation of the district will be recovered during the assessment process. If the district
fails, the City's funds will be lost.
5. The Engineer's Report and Resolution of Intention are submitted to the City Council for
approval and a public hearing is scheduled.
6. The Ballots are prepared with the assessment amount and sent to each property owner
within the proposed district boundaries. Each property owner then votes for or against
the formation of the district. Each vote is weighted or valued based upon the dollar value
of each property owner's proposed assessment.
7. All votes must be submitted to the City prior to the end of the scheduled public hearing.
The district passes if it receives greater than 50% approval and the City Council approves
the district. If the district passes, all property owners within the district will be
responsible for the assessment amounts regardless of a property owner's personal
vote.
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City of La Quinta
Utility Undergrounding — Step -By -Step Guide
Following approval by the property owners, the detailed design process begins. It usually
involves the following steps:
a. Base mapping
b. Imperial Irrigation District (IID) electrical design
c. Telephone and cable design
The duration of each step varies depending on the number of underground districts in the
queue, the size of the proposed district, and the complexity of the design. This phase
could take more than two years to complete.
Once the project is fully designed, it will be bid with a contract awarded, and then
constructed.
Option Two — Traditional Method
1. The process is initiated by an interested property owner, who acts as a liaison between
the City, utility companies, and neighbors. The property owners who support
undergrounding submit a letter to the City's Public Works Department expressing their
interest in forming an Underground Utility Assessment District. The letter should include
a description of the proposed boundaries of the area to be undergrounded.
2. Based on the interest letter, the City prepares a boundary map and submits it to the
appropriate utility companies who review the map to ensure that the boundaries are
logical and feasible. Once the district boundaries are accepted by all parties, the utility
companies provide the City with a preliminary cost estimate for the design and
construction of the undergrounding project.
3. The City then prepares a petition to be circulated by proponents to all affected property
owners within the proposed district boundaries. The petition states the approximate
amount that each property owner would pay if the property owners vote to form the
district to accomplish the undergrounding project. In order for the process to continue,
at least 60 percent of the property owners must sign and express support. This petition is
a "show of support" and nonbinding.
4. Once the petition is certified by the Assessment Engineer, the City Engineer will
prepare a staff report requesting City Council approval for funds for design of the
undergrounding project to be advanced from the City's General Fund. If the district is
formed, the advanced funds will be recovered during the assessment process. If the
district fails, the funds will be lost.
S. The design process begins once the utility companies receive the design fee. The
process usually involves the following steps:
a. Base mapping
b. Imperial Irrigation District (IID) electrical design
c. Telephone and cable design
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4 athite
- — GEM of the DESERT —
City of La Quinta
Utility Undergrounding — Step -By -Step Guide
The duration of each step varies depending on the number of underground districts in the
queue, the size of the proposed district, and the complexity of the design.
6. Once the design is complete and accepted by the City and utility companies, the utility
companies provide a "guaranteed cost of construction." The Assessment Engineer will use
this guaranteed cost and all other costs incurred in the past and anticipated in the future
to generate the Engineer's Report. This report documents the assessment amount that
each property owner within the district would be responsible for if the district is
successful.
7. The completed design plans, Engineer's Report, and Resolution of Intention are
submitted to the City Council for approval and a public hearing is scheduled. An informal
property owner meeting is held prior to the public hearing to explain the details of the
proposed district.
8. Ballots are prepared with the assessment amount and sent to each property owner
within the proposed district's boundaries. Each owner votes for or against forming the
district. Each vote is weighted based on the dollar value of each property owner's
proposed assessment.
9. All votes must be submitted to the City prior to the end of the scheduled public hearing.
The district passes if it receives greater than 50% approval and the City Council approves
the district. If the district passes, all property owners within the district will be
responsible for the assessment amounts regardless of a property owner's personal
vote.
Paying the Assessment and Final Steps
Regardless of whether a neighborhood chooses the standard or fast track method of
assessment district formation, the property owners will have two options to pay for the
assessment.
1. 30 -Day Cash Payment Period: Within 30 days after the close of the public hearing, the
property owner has the option to pay the full or a portion of the assessment amount. The
property owner will save approximately 8% on the portion of the assessment paid in cash.
This 8% savings results from not selling bonds for the amount owed. Bonds will be sold
for any unpaid portion of the assessment and a lien will be placed on the property until
the bond is paid in full.
2. Bond: If the property owner elects to not pay during the 30 -Day Cash Payment Period,
bonds will be sold. Assessments will be placed on the property tax bill to be paid over a
20 to 25 -year financing period. During that time, a lien will be placed on the property until
the bond amount is paid in full. Bonds will incur a finance charge.
When construction of the main line underground infrastructure has been completed, all
property owners will be notified that it is time to perform their private conversions.
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4 athite
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City of La Quinta
Utility Undergrounding — Step -By -Step Guide
Private conversions require property owners to hire a licensed electrician to connect the
property's existing overhead connection to the underground infrastructure. The cost of
the private conversion is not covered in the assessment amount. The assessment amount
only covers work performed in the public right-of-way.
It is the property owner's responsibility to perform the conversion within the designated
time frame. Delays caused by one property owner's private conversion, will cause delays
to the whole district because overhead structures cannot be removed until all properties
have completed their private conversions.
It is important to note that, from the initial letter to the last private conversion, the
average process takes approximately seven years, depending on the size of district. The
bond financing period information provided above is based on an average of past
assessment districts and varies depending on current rates and the district's size.
For more information, please contact the City's Public Works Department at (760) 777-
7000.
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