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Historical Info on Assessments Analysis (June 2009)?

The undergrounding project will cost around $12 million.  All of these costs will be allocated to the residents in the districts that it benefits.  The City's allocation formula has a factor that charges residents based on the line frontage adjacent to their home, (i.e., cost).  That formula works well for an area such as a flat regular city street, where lots are uniform and poles and wires are in the “view” from every home.  Del Mar is not on flat ground, lots are not shaped the same and the orientation and view (e.g. ocean and other views) from one lot to another can be vastly different.  The result of using this formula is that some residents end up paying a significant amount for very little benefit, while some others could receive a huge benefit for very little assessment.  This is unfair and in California it is unlawful.

 

Solution

We understand that the City is currently looking at alternatives to the original formula that considers these other important factors for the Sunset District and certain parcels of North Hills District (see footnote 1).   We strongly agree that a change needs to be made to a formula based on benefits, not cost.  As citizens, we would like to see the new formula in sufficient time to work with it and give input before the vote.  Further, we believe that the same formula should be applied to all of North Hills, as it is unfair to apply different formulas to different lots in the same district.

 

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Executive Summaries of Attachments (see below for attachments):

 

1 Our Existing Failed Methodology Report 

This report demonstrates inequities that result from the Del Mar Method of allocating assessments based on construction costs and it offers a more equitable Benefit Method that takes benefits into consideration, thus complying with California law.

 

Fig 1 Assessment Construction Cost Comparison Graph 

This graph shows relative cost for each site numbered 1 through 49 (Sunset District was used as a sample); and shows how Del Mar Method mimics ‘construction cost’.  In addition, this graph shows that the Del Mar Method results in extreme differences in assessments which does not represent the reality of the benefits.  Our more equitable Benefit Method has a leveling effect and more closely aligns assessments to benefits.

 

Fig 2 Case Study A Illustration

This diagram illustrates the unfairness of the Del Mar Method, by comparing lots 32 and 39, both of which enjoy comparable views yet one would be assessed many times more than the other (red line = adjacent utility wire)   See: Fig 1.

 

Fig 3 Case Study B Illustration

This diagram illustrates the improvement of the Benefit Method over the Del Mar Method, by comparing lot 14 which will gain a big benefit from undergrounding (see Fig 4 below) with lot 29 which gains little benefit, but would have incurred an arbitrarily $11,000 greater assessment under the Del Mar Method. (See Fig 5 below).

 

Fig 4 View Comparison Photo Lot 14

Photo taken from lot 14 shows substantial benefit resulting from undergrounding of lines across view. (See Figs 1 & 3).

 

Fig 5 View Comparison Photo Lot 29

Photo taken from lot 29 shows relatively little benefit resulting from undergrounding of lines but substantially greater cost. (See Figs 3 & 1.)

 

Fig 6 Case Study C Illustration

This diagram illustrates the improvement of the Benefit Method over the Del Mar Method, by comparing lot 39 which enjoys a view with lot 29 which gains less from undergrounding but would have had a $20,000 greater assessment under the Del Mar Method.

 

Fig 7 Math Comparison of 49 Properties Report

This presentation is for those who are interested in understanding the detailed mathematical calculations that lead to our conclusions.

 
footnote 1:  www.delmar.ca.us  City Council, Meeting 4/20/2009, Item 18, pages 5 and 6.
 
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Site Administrator,
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Site Administrator,
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Site Administrator,
Jun 10, 2009 1:56 PM
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Site Administrator,
Jun 10, 2009 1:56 PM
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Site Administrator,
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Site Administrator,
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Site Administrator,
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Who we are

We are a group of neighbors, just like you, who enjoy Del Mar because of its uniqueness and beauty.  Included in this group are Don Smith, Bill Lewis, Mike and Helen Grundler, Pat Welsh and others.  We had questions about how the undergound conversion would look and how much it would cost.  We have had many meetings with the City and its consultants, SDGE and citizens.  We also learned from other jurisdictions that completed undergounding.  We analyzed and tested formulas.  The result is that there are improvements can be made to our project.  The purpose of this website is to bring citizens up to speed so that we can have the best project in the most timely manner.