IMPORTANT INFORMATION ON THE PROCESS TO UNDERGROUND UTILITIES and REPAIR/REPLACE ALLEYWAYS, STREETS and SIDEWALKS IN NAPLES

In the first newsletter of 2007, the NIA asked for feedback from the community regarding what types of things we should focus on improving. Undergrounding utilities and replacing/repairing the alleys, sidewalks, and streets were consistently reported as areas to focus on. Over the past 6 months, the NIA has done additional research and worked with city officials to determine our options for addressing these interests. The following is to inform you of our progress and findings to date. A copy of this has also been included in the recent Naples News, distributed this past weekend.

PLEASE NOTE: the NIA is committed to acting in the interests of the residents of Naples, and promoting open discussion on these topics. Any major decisions or commitments will be based on full public input. We therefore strongly encourage you to follow our progress and give your feedback by emailing us at info@naplesca.org, or sending a letter to the NIA at P.O. Box 3687, Long Beach, CA 90803.

BACKGROUND: The City of Long Beach allocates roughly $5M each year to Public Works for street and sidewalk repair. The funds are divided evenly among each of the nine city districts. While the city has a limited pothole and sidewalk repair program, there are no planned replacements of streets or sidewalks for Naples. For perspective, over the last 5 years, only $100,000 has been spent on public works projects in Naples. In fact, if every dollar allocated to the 3rd District (using the current public works budget), were spent on Naples alone, it would still be at least 15 years before all of our needs were completed. Additionally, although some Naples residents dispute their claim, the city does not view alley replacement as a city responsibility.

Therefore, if we as a community truly want better streets, sidewalks, alleyways and undergrounding of utilities, we will most likely need to take a pro-active approach in identifying our priorities and agreeing to contribute a portion of the costs for selected improvements. If we do, Councilman Gary DeLong has voiced his commitment to investing city funds towards sharing some of the project costs - so the NIA is exploring exactly what this would entail.

Clearly, if all of these improvements could be made in a timely manner at no cost to us as residents, few would have reservations for moving ahead with such improvements - so, naturally, cost will be a determining factor for our decisions. The NIA has therefore been researching the best methods for estimating these costs so our community has a basis for further discussion and decision making.

RESEARCH TO DATE:

We held meetings with each utility company, the Long Beach City Engineer (Mark Christoffels), our councilman (Gary DeLong), representatives from two cities (Newport Beach and Manhattan Beach) who have completed successful undergrounding projects, and the Alamitos Bay Preservation Group/The Peninsula (which is looking at undergrounding utilities too).

We learned that we needed to hire a licensed consultant approved by the city and utility companies to determine a ballpark cost per house. The NIA received multiple bids to do this consulting work. The highest bid was $10,000. We negotiated and selected a consultant and the city agreed to fund 50% of the cost. The total cost was $2,300, so ultimately the NIA invested only $1,150. The consultant and scope of work were approved by the city and utility companies. The Alamitos Bay Preservation Group (The Peninsula) have also hired the same consultant and will receive the same 50% city investment.

We expect the consultant to complete his work and provide a cost estimate, per house, by Fall.

STREETS, SIDEWALKS AND ALLEYWAYS

We met with the Long Beach City Engineer (Mark Christoffels), and discussed the market rates for actually replacing sidewalks, streets and alleys. By replace, we mean physically rebuilding the infrastructure - not providing temporary solutions such as filling potholes or shaving down sidewalks. Resident feedback points to the fact that our current infrastructure has deteriorated over time, is essentially crumbling, and is too old to continue repairing with patches. When temporary solutions are made, it doesn't seem long before more work is required. We are therefore attempting to discover complete replacement costs so we have a figure for the community to evaluate.

We expect to have an estimate from the city engineer at the same time as the undergrounding utilities estimate, so residents can evaluate both of these in parallel.

WHAT HAPPENS AFTER WE KNOW THE COST ESTIMATES FOR THESE IMPROVEMENTS?

To reiterate, the NIA is researching the costs of these projects so that the residents of Naples have some "real world" figures for discussion. When we receive the estimated costs of each of these projects, the NIA will distribute the findings to the community via the Newsletter and Email network. These figures will then be the basis for further negotiation with the city, AND community discussion as to whether we would consider funding one, some, or all of the improvements by forming an assessment district.

WHAT IS AN ASSESSMENT DISTRICT?

In short, an assessment district is an area (this could be all or specific parts of Naples) where the residents demonstrate their intent (by vote) to have the city (and utility companies) provide final estimates for specific improvements, and on receiving those final figures vote again on whether or not to proceed with those improvements and be assessed the costs. When an assessment district is formed, property owners pay the assessment as part of their property taxes. Property owners can choose to pay over a period of time (typically 15 to 20 years) with interest (typically 5%) or pay up front. Additionally, in an effort to accommodate fixed income property owners, the State of California and Franchise Tax Board offer programs to reduce the tax burden and defer property taxes until the sale of the property.

EDUCATION and COMMUNICATION

The NIA believes that to establish which direction our community wants to go will only be possible with proper forums to discuss all of the pros and cons. We understand that some may consider infrastructure a worthwhile investment - some an unnecessary expense. There will be those who may not want to wait indefinitely for improvements - and others who might take a different view. Education and communication will be the key to determining who wants what.

Therefore, the NIA will report information via the Newsletter and Email Network, encourage feedback from residents by letter and email, and hold a community meeting (or meetings) to determine options and next steps.

If it is evident that there is strong interest in forming an assessment district (or districts), the NIA will follow the city guidelines for determining potential boundaries for these districts.

ASSESSMENT DISTRICT PROCESS (In brief):

A. Determining potential boundaries for the assessment district: · The City Engineer will create a petition that outlines the estimates of proposed projects. The NIA will walk door to door in the community, explaining the proposal. Homeowners will then choose to sign or not sign the petition. Based on the level of support around the islands, proposed boundaries will then be drawn for areas that show 2/3 approval.

B. 1st Vote · The City Engineer will then send postcards to the affected homeowners within the boundaries - again outlining the estimates. If 2/3 of the postcards are returned in favor of moving forward, then a final cost estimate will be prepared by the city.

C. 2nd and Final Vote · Based on the returned postcards, the final boundaries and exact costs will be provided in a community meeting at which Homeowners will then cast their votes to determine if the assessment passes or not. · If the assessment passes, homeowners in the assessment district will have the improvements they voted for and their property taxes adjusted accordingly.

We are only in the discovery phase of this process. Whether you support or oppose assessments to underground utilities and/or improving infrastructure, you will have many opportunities to make your voice heard. In the fall, look for updates via the newsletter and email network as well as dates for upcoming community meetings. Until then, if you have any feedback or questions please provide them by sending an email to info@naplesca.org or sending your comments to the NIA at P.O. Box 3687, Long Beach, CA 90803.