HomeMy WebLinkAbout15 - Assessment District 81 River AvenueCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 15
December 9, 2003
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Public Works Department
Patrick Arciniega
949 - 644 -3311
parcineiga @city. newport- beach. ca. us
SUBJECT: PROPOSED ASSESSMENT DISTRICT NO. 81 - (RIVER AVENUE
FROM CHANNEL PLACE TO 38TH STREET AND CHANNEL PLACE
FROM BALBOA BOULEVARD TO 43RD STREET) FOR
UNDERGROUNDING UTILITIES
RECOMMENDATIONS:
1. Consider adoption of the following Resolutions for Proposed Assessment District
No. 81:
a. Resolution No. 2003 - _ making findings on a petition for, adopting a map
showing the proposed boundaries of, and making appointments for Assessment
District No. 81.
b. Resolution No. 2003 - _ declaring intention to order the construction of
certain improvements in proposed Assessment District No. 81, declaring the
improvements to be of special benefit, describing the district to be assessed to
pay the costs and expenses thereof, providing for the issuance of bonds, and to
designate the area an Underground Utilities District.
c. Resolution No. 2003 - , giving preliminary approval to the report of the
Assessment Engineer, setting the time and place for a public hearing as
February 24, 2004 and ordering the intention of assessment ballot procedure for
Assessment District No. 81.
2. Approve the Special Counsel Agreement with Robert Hessell.
HISTORY:
Owners of property located in Proposed Assessment District No. 81 submitted petitions
to the City requesting the formation of a special assessment district to underground
overhead utilities. In response to petitions submitted by owners representing
approximately 78.55 percent of the assessable property area within Proposed
SUBJECT: Proposed Assessment District No. 81 River Avenue From Channel Place to 38th Street and Channel Place From
Balboa Boulevard) for Undergrounding Utilities
December 9, 2003
Page 2
Assessment District No. 81, the City Council appropriated $47,775.00 on November 23,
1998 to facilitate the undergrounding of utilities. $28,000.00 was expended to prepare
engineering plans and submit guaranteed prices to underground the utilities. $16,775.00
is being expended by the Assessment Engineer for preparation of the engineer's report
and assistance with processing the Assessment District.
DISCUSSION:
Proposed Assessment District No. 81 is being formed for the conversion of existing
overhead utilities to underground locations. The property owners within the boundary
of the proposed Assessment District will bear the cost of the improvements and all
associated proceedings.
The procedure being used to create the Assessment District is outlined in the Municipal
Improvement Act of 1913. Bonds issued under the Improvement Bond Act of 1915,
with a term of 15 years, will be issued to finance assessments that are not paid in cash
within 30 days after confirmation of the assessment.
The total assessment for Proposed Assessment District No. 81 is estimated as follows:
ITEM ESTIMATED COST
Estimated Cost of Construction $747,028.50
Estimated Incidental Costs and Expenses $101,250.00
Estimated Financing (Bond) Costs $116,928.20
Federal Income Tax Component of Contribution (ITCC) $97,777.02
Estimated Total Cost: $1,062,983.74
The estimate includes the Federal Income Tax Component of Contribution (ITCC) Tax,
which is a betterment tax. However, bonds will not be sold for the ITCC Tax because it
is the belief of the City that underground utility districts are undertaken at the request of
the community for purposes of community aesthetics and public safety, not for the
benefit of particular customers of the utility in their capacity as customer of the utility.
This Underground District is not required as a condition for obtaining any electrical
service.
If the Internal Revenue Service (IRS), State, City and /or local government taxing
authority determines that this project is taxable, Southern California Edison (SCE)
requires the City of Newport Beach to reimburse SCE for the full amount of the tax
liability determined by the IRS, State, City and /or local government authority, plus
interest, penalties, fees, and related costs. The City will sell a second issue of the
bonds, if necessary, to pay SCE within 60 days after they notify the City of Newport
Beach.
The ITCC tax associated with this District is approximately $97,777.02 which the City
would be liable for, plus penalties if the IRS should determine the district was not
exempt from the tax.
SUBJECT: Proposed Assessment District No. 81 River Avenue From Channel Place to 38th Street and Channel Place From
Balboa Boulevard) for Undergrounding Utilities
December 9, 2003
Page 3
The Assistant City Attorney reviewed SCE's request to have the preceding statement
included in the Assessment District Report and felt it was unlikely the City would incur
any tax liability.
In addition to the assessment, each property owner will be responsible for converting
their service connection to receive underground service.
The Bond Reserve will be 5 percent for the subject district.
Property owners who pay assessments in cash will receive a discount, which
represents the cost of issuing and servicing bonds.
The following is a tentative schedule for Proposed Assessment District No. 81:
• Resolution of Intention
December 9, 2003
• Property Owner Information Meeting
February 12, 2004
• Public Hearing
February 24, 2004
• Public Utilities Commence Work
September 2004
• City Notifies Property Owners to Install Service
November 2004
Connections
• Property Owners Complete Conversions
February 2005
• Public Utilities Begin to Remove Overhead
April 2005
Structures
• Public Utilities Finish Removing Poles and
May 2005
Overhead Structures
The Assessment Engineer has determined that all the lots in this District receiving
special benefit contain residences (single - family, duplexes, condominiums, apartments
etc.), except three City lots, therefore it is reasonable to spread the assessment using
an assessment unit (AU) formula where each lot is assessed relative to a 'standard'
residence with a 30 -foot wide frontage. In no case has an assessment been imposed
on any lot that exceeds the reasonable cost of the proportional special benefit conferred
on that lot.
The estimated assessment without the ITCC tax component ranges from $16,985.60 to
$69,527.71, with the average assessment being $24,793.00. The estimated
assessment with the ITCC tax component ranges from $19,164.37 to $78,446.16, with
the average assessment being $27,973.26.
Plans and specifications were prepared by the public utilities companies. Attached is a
sketch showing the boundary of the proposed District and the utilities to be
undergrounded.
An Agreement is necessary in order to retain Special Counsel to provide legal services
in connection with processing of the assessment proceedings and bond issuance. The
SUBJECT: Proposed Assessment District No. 81 River Avenue From Channel Place to 38th Street and Channel Place From
Balboa Boulevard) for Undergrounding Utilities
December 9, 2003
Page 4
Special Counsel Agreement will retain Robert Hessell, Bond Counsel, to provide these
legal services. The fee is approximately, $20,000.00 in accordance with the terms of
the Agreement. This fee will be paid through the Assessment District.
Environmental Review:
A Notice of Exemption was completed on December 17, 2002 and filed with the County
Recorder on January 07, 2003. A Certificate of Environmental Proceedings was
completed on November 24, 2003.
Prepared by:
qelel— lal?, —
Pat ' l.. Arcini a
Associate Engineer
Attachments:
Submitted by:
phe . Badum
Public Works Director
1. Exhibit Showing District Boundaries
2. Resolution Making Findings On Petition Adopting Proposed Boundary Map And
Making Appointments
3. Resolution Of Intention
4. Resolution Passing On Report Of Assessment Engineer, Setting Public Hearing,
and Ordering Initiation Of Assessment Ballot Procedures
5. Engineer's Report
6. Special Counsel Agreement
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PROPOSED ASSESSMENT DISTRICT #81
UNDERGROUNDING UTILITIES AT:
RIVER AVENUE FROM CHANNEL PLACE TO 38TH STREET, INCLUDING CHANNEL PLACE
LEGEND:
• POLES TO BE REMOVED
O POLES TO REMAIN IN PLACE
OVERHEAD LINES TO BE REMOVED
OVERHEAD LINES TO REMAIN IN PLACE
RESOLUTION NO. 2003 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT
BEACH MAKING FINDING ON A PETITION FOR, ADOPTING A MAP
SHOWING THE PROPOSED BOUNDARIES OF, AND MAKING
APPOINTMENTS FOR PROPOSED ASSESSMENT DISTRICT NO. 81
(RIVER AVENUE)
WHEREAS, this legislative body has received from certain property owners an
executed petition (the "Petition ") requesting the formation of a special assessment district,
to be designated as Assessment District No. 81 (RiverAvenue) (the "Assessment District"),
to provide for the conversion of certain overhead electrical and communication facilities to
underground locations as described in the Petition, together with appurtenances and
appurtenant work in connection therewith, pursuant to the terms and provisions of the
ordinances of the City of Newport Beach and the "Municipal Improvement Act of 1913 ",
being Division 12 of the Streets and Highways Code of the State of California (the "Act ");
and
WHEREAS, the Development Engineer of the City of Newport Beach has certified to
this legislative body as follows:
a. the Petition has been signed by owners owning more than sixty
percent (60 %) in area of all assessable property within the boundaries of the
proposed Assessment District, and
b. the Petition is signed by not less than five (5) owners owning lands
constituting more than one -half (1/2) in area of all assessable property within the
boundaries of the proposed Assessment District; and
WHEREAS, this legislative body has been presented and has received a map (the
"Map ") showing and describing the boundary of the area proposed to be assessed in the
Assessment District.
NOW, THEREFORE, Be It Determined, Resolved, and Ordered as follows:
SECTION 1. The above recitals are all true and correct.
SECTION 2. The Petition shall be retained as a permanent record and remain open
to public inspection.
SECTION 3. The Map is hereby approved and adopted. The original map of the
boundaries of the proposed Assessment District and one copy thereof is to be filed in the
Office of the City Clerk.
SECTION 4. A certificate shall be endorsed on the original Map and on at least one
copy of the Map evidencing the date and adoption of this Resolution, and within fifteen (15)
days after the adoption of a resolution fixing the time and place of hearing on the formation
or extent of the Assessment District, a copy of the Map shall be filed with the correct and
proper endorsements thereon with the County Recorder, all in the manner and form
provided in Section 3111 of the Streets and Highways Code of the State of California.
SECTION 5. Stephen G. Badum P.E., Director of Public Works for the City of
Newport Beach, is hereby appointed to perform all of the duties and functions of the
Superintendent of Streets for the Assessment District as said duties are specified and
designated in the Act. The place for recordation of the assessment roll and diagram shall
be in the office of the appointed Superintendent of Streets, and said assessment roll and
diagram, upon recordation, shall be kept as a permanent record.
SECTION 6. The Daily Pilot is hereby designated as the newspaper for all
publications as required by law and as necessary for the Assessment District proceedings.
SECTION 7. The firm of GFB- Friedrich & Assoc., Inc., is hereby appointed the
Assessment Engineer for the Assessment District proceedings.
SECTION 8. Robert E. Hessell, attorney at law, is hereby appointed to act as Bond
Counsel for the Assessment District and the contract for services submitted is hereby
approved.
SECTION 9. This legislative body hereby authorizes the establishment of a special
improvement fund for the Assessment District and into the improvement fund shall be
placed all proceeds from the sale of Assessment District bonds and cash collections. In
order to expedite the improvements to be made underthe Assessment District proceedings
and as authorized by law, funds from any available source may be transferred into the
special improvement fund. Any funds transferred into the special improvement fund (other
than proceeds from the sale of Assessment District bonds and cash collections) shall be
deemed a loan to the fund and shall be repaid out of the proceeds of the sale of
Assessment District bonds as authorized by Section 10210 of the Streets and Highways
Code of the State of California.
PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of
the City of Newport Beach, held on the 9th day of December, 2003, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
City Clerk
2
Steven Bromberg, Mayor
RESOLUTION NO. 2003-
RESOLUTION DECLARING INTENTION TO ORDER THE
CONSTRUCTION OF CERTAIN IMPROVEMENTS IN PROPOSED
ASSESSMENT DISTRICT NO. 81 (RIVER AVENUE), DECLARING THE
IMPROVEMENTS TO BE OF SPECIAL BENEFIT, DESCRIBING THE
DISTRICT TO BE ASSESSED TO PAY THE COSTS AND EXPENSES
THEREOF, PROVIDING FOR THE ISSUANCE OF BONDS, AND TO
DESIGNATE THE AREA AN UNDERGROND UTITLITES DISTRICT
WHEREAS, this legislative body has instituted proceedings for the formation of a
special assessment district designated as Assessment District No. 81 (River Avenue)
(hereinafter referred to as the "Assessment District')to provideforthe conversion of certain
overhead electrical and communication facilities to underground locations, together with
appurtenances and appurtenant work in connection therewith, pursuant to the terms and
provisions of the "Municipal Improvement Act of 1913 ", being Division 12 of the Streets and
Highways Code of the State of California (the "Act'); and
WHEREAS, this legislative body further desires to ascertain whether area
comprising the Assessment District should be designated an underground utilities district
pursuant to Chapter 15.32 of the Code of Ordinances of the City of Newport Beach (the
"City "); and
WHEREAS, the conversion of the overhead electrical and communication facilities
to underground locations, togetherwith appurtenances and appurtenant work in connection
therewith, is to be done to further public safety and welfare and to improve aesthetics
within the area of the Assessment District; and
WHEREAS, this legislative body has been presented and has received a map (the
"Map ") showing and describing the boundary of the area proposed to be assessed in the
Assessment District; and
WHEREAS, the assessment proceedings for the Assessment District were initiated
by owners of the real property.
NOW THEREFORE, Be it Determined, Resolved, and Ordered by the City Council
of the City as follows:
DECLARATION OF INTENTION
SECTION 1. The public interest and convenience require, and it is the intention of
this legislative body to order, pursuant to the Act, the construction of the public
improvements hereinafter described in and forthe Assessment District, to assess the cost
thereof against the real property specially benefited thereby, and to designate the area an
underground utilities district.
DESCRIPTION OF IMPROVEMENTS
SECTION 2. The public improvements to be constructed and the manner of the
construction are generally described as follows:
A. The improvements generally consist of the conversion of existing overhead
electrical and communication facilities to underground locations within the
area shown on the Map, togetherwith appurtenances and appurtenant work
thereto, all to serve and specially benefit the properties within Assessment
District No. 81 (River Avenue).
B. All rights -of -way and easements required for the improvements shall be
shown upon the plans to be made a part of the Assessment Engineer's
Report (described below) and to be filed with these proceedings.
C. All of the improvements to be constructed are to be installed at the places
and in the particular locations, and to the sizes, dimensions and materials,
and to the lines, grades and elevations, as shown and delineated upon the
plans, profiles and specifications all to be made a part of the Assessment
Engineers Report.
D. The description of the improvements contained in this Resolution is general
in nature, and the plans and profiles of the work as contained in the
Assessment Engineers Report shall be controlling as to the correct and
detailed description thereof.
DESCRIPTION OF ASSESSMENT DISTRICT
SECTION 2. The improvements are of special benefit to the real property within the
Assessment District, and this legislative body hereby makes the expenses of the
construction of such improvements chargeable upon the Assessment District, which is
described as follows:
All real property and other territory in the proposed Assessment District
included within the exterior boundary lines shown on the Map described
above, which Map is entitled "Proposed Boundaries Assessment District No.
81 (River Avenue)," was previously approved by this legislative body, exhibits
the property specially benefited and proposed to be assessed to pay the
costs and expenses of the construction of the work and improvements, and
is on file with the transcript of these proceedings. For all particulars as to the
boundaries of the Assessment District, reference is hereby made to the
boundary Map.
2
REPORT OF THE ASSESSMENT ENGINEER
SECTION 3. The proposed improvements are hereby referred to GFB- Friedrich &
Assoc., Inc. (the "Assessment Engineer'), who is hereby directed to make and file a report
as required by the Improvement Act, Article MID of the Constitution of the State of
California, and the Omnibus Proposition 218 Implementation Act (Government Code
Section 53750), such report (the "Assessment Engineer's Report ") shall be in writing and
contain the following:
A. Plans and specifications of the improvements proposed to be constructed;
B. An estimate of the cost of the construction of the improvements proposed to
be constructed, including the cost of the incidental expenses, in connection
therewith;
C. A diagram showing the Assessment District, which shall also show the
boundaries and dimensions of the respective real property and otherterritory
within such Assessment District, as the same existed at the time of the
passage of this Resolution of Intention, each of which subdivisions shall be
given a separate number upon such diagram;
D. The proposed assessment of the assessable costs and expenses of the
construction of the proposed improvements upon the real property in the
Assessment District in proportion to the estimated special benefits to be
received by the real property, respectively, from such improvements. Such
assessment shall refer to such real property upon such diagram by the
respective numbers thereof;
E. The description of the improvements proposed to be constructed underthese
proceedings.
When any portion or percentage of the assessable costs and expenses of the
construction of the improvements is to be paid from sources other than assessments, the
amount of such portion or percentage shall first be deducted from the total estimated costs
and expenses of such construction, and such assessment shall include only the remainder
of the estimated costs and expenses. The assessment shall refer to the subdivisions by
their respective numbers as assigned pursuant to subparagraph D above.
BONDS
SECTION 4. Notice is hereby given that bonds to represent the unpaid
assessments, and bear interest at the rate of not to exceed the current legal maximum rate
of 12% per annum, will be issued hereunder in the manner provided in the Improvement
Bond Act of 1915 (Streets and Highways Code Section 8500, et seq.), which bonds shall
be issued for a term not to exceed the legal maximum term as authorized by law, namely,
thirty -nine (39) years from the second day of September next succeeding twelve (12)
months from their date. The provisions of Part 11.1 of the Act, providing an alternative
procedure for the advance payment of assessments and the calling of bonds shall apply.
3
The principal amount of the bonds maturing each year shall be other than an
amount equal to an even annual proportion of the aggregate principal of the bonds, and
the amount of principal maturing in each year, plus the amount of interest payable in that
year, will be generally an aggregate amount that is equal each year, except for the first
year's adjustment.
Pursuant to the provisions of the Improvement Act and specifically Streets and
Highways Code Section 10603, the Treasurer is hereby designated as the officerto collect
and receive the assessments during the cash collection period.
CONSTRUCTION
SECTION 5. Except as may otherwise be provided for in the issuance of the bonds
described above, all of the improvements shall be constructed pursuant to the provisions of
the Act.
SURPLUS FUNDS
SECTION 6. If any excess shall be realized from the assessment, it shall be used,
in such amounts as the legislative body may determine, in accordance with the provisions
of law for one or more of the following purposes:
A. Transfer to the general fund; provided that the amount of any such transfer
shall not exceed the lesser of One Thousand Dollars ($1,000,00) or five
percent (5 %) of the total from the Improvement Fund;
B. As a credit upon the assessment and any supplemental assessment;
C. For the maintenance of the improvements; or
D. To call bonds.
IMPROVEMENT FUND
SECTION 7. The legislative body hereby establishes a special improvement fund
identified and designated by the name of this Assessment District, and into such Fund
monies may be transferred at any time to expedite the construction of the authorized
improvements, and any such advancement of funds is a loan and shall be repaid out of the
proceeds of the sale of bonds as authorized by law.
M
PROCEEDINGS INQUIRIES
SECTION 8. For any and all information relating to these proceedings, including
information relating to protest procedure, your attention is directed to the person
designated below:
Patrick Arciniega, Project Engineer
City of Newport Beach
P.O. Box 1768
Newport Beach, California 92658
(949) 644 -3347
PUBLIC PROPERTY
SECTION 9. All public property shall be subject to assessment in these
proceedings.
RIGHTS -OF -WAY
SECTION 10. The public interest, convenience and necessity requires that
certain land, rights -of -way or easements be obtained in order to allow the works of
improvement as proposed for this Assessment District to be accomplished. The
Assessment Engineer's Report, upon adoption, shall provide certification that the land,
rights -of -way or easements have been acquired or will be acquired as part of the
construction of the improvements.
NO CITY LIABILITY
SECTION 11. This legislative body hereby declares the City will not obligate
itself to advance available funds from the City treasury to cure any deficiency that may
occur in the bond redemption fund for the Assessment District.
ANNUAL ADMINISTRATIVE ASSESSMENT
SECTION 12. It is hereby declared that this legislative body proposes to levy
an annual assessment pursuant to Section 10204 of the Streets and Highways Code of the
State of California, such annual assessment to pay costs incurred by the City and not
otherwise reimbursed which result from the administration and collection of assessments
and from the administration and registration of assessment bonds and the related bond
funds.
UTILITY IMPROVEMENTS
SECTION 13. Pursuant to Section 10110 ofthe Streets and Highways Code of
the State of California, it is also the intention of this legislative body with respect to the
improvements to be owned managed or controlled by any other public agency, regulated
public utility, or mutual water company, priorto ordering the construction of improvements,
to enter into an agreement with each public utility company or public agency, or any
combination thereof with respect to the improvements to be owned, controlled or managed
by the utility or agency.
PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of
the City of Newport Beach, held on the 9th day of December, 2003, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
City Clerk
Steven Bromberg, Mayor
RESOLUTION NO. 2003-
RESOLUTION GIVING PRELIMINARY APPROVAL TO THE REPORT OF
THE ASSESSMENT ENGINEER FOR ASSESSMENT DISTRICT NO. 81
(RIVER AVENUE) AND AN UNDERGROUND UTILITIES DISTRICT,
SETTING A TIME AND PLACE FORA PUBLIC HEARING THEREON, AND
ORDERING THE INITIATION OF ASSESSMENT BALLOT PROCEDURES
WHEREAS, this legislative body has instituted proceedings for the formation of a
special assessment district designated as Assessment District No. 81 (River Avenue)
(hereinafter referred to as the "Assessment District') to provide for the conversion of certain
overhead electrical and communication facilities to underground locations, together with
appurtenances and appurtenant work in connection therewith, pursuant to the terms and
provisions of the "Municipal Improvement Act of 1913 ", being Division 12 of the Streets and
Highways Code of the State of California (the "Act'); and
WHEREAS, the Assessment District area should be designated an underground
utilities district pursuant to Chapter 15.32 of the Code of Ordinances of the City of Newport
Beach (the "Ordinance "); and
WHEREAS, a resolution of intention (the "Resolution of Intention ") for the formation
of the Assessment District and the utility conversion was previously adopted by this
legislative body; and
WHEREAS, there has been prepared and filed with this legislative body for its
consideration a Report of the Assessment Engineer (the 'Report ") as provided for in and
required by the Resolution of Intention, Sections 10203 and 10204 of the Act, Article X11 ID
of the Constitution of the State of California ( "Article XIIID "), and the Proposition 218
Omnibus Implementation Act (commencing with Section 53750 of the Government Code)
(the "Implementation Act') (the Act, Article XIIID, and the Implementation Act are referred
to herein collectively as the "Assessment Law") and the Ordinance.
NOW, THEREFORE, It is Hereby Determined, Resolved, and Ordered as follows:
SECTION 1. The above recitals are all true and correct.
SECTION 2. The Report is adopted, passed upon, and preliminarily approved, as
follows:
A. The plans and. specifications for the proposed improvements to be
constructed, as contained in the Report, are hereby preliminarily approved
and adopted;
B. The Assessment Engineer's estimate of the itemized and total costs and
expenses of the construction of the improvements and of the incidental
expenses in connection therewith contained in the Report, and each of them
are hereby preliminarily approved and adopted;
C. The diagram showing the Assessment District referred to and described in
the Resolution of Intention, and also the boundaries and dimensions of the
respective real property interests within the Assessment District, as the same
existed at the time of the passage of said Resolution of Intention, each of
which have been given a separate number upon the diagram, as contained
in the Report, is hereby preliminarily approved and adopted;
D. The proposed assessment upon the several property interests in the
Assessment District, in proportion to the estimated special benefits to be
received by such property interests, respectively, from the improvements to
be constructed, and of the incidental expenses thereof, as contained in the
Report, are hereby preliminarily approved and adopted;
E. The descriptions of the improvements to be constructed contained in the
Report are hereby preliminarily approved.
SECTION 3. The Report shall stand as the Assessment Engineer's Report for the
purpose of all subsequent proceedings had pursuant to the Resolution of Intention.
SECTION 4. NOTICE IS HEREBY given that the City Council of the City Of
Newport Beach will hold a public hearing on the assessment district, the proposed
assessments, and the designation of the area as an underground utilities district at
its regular meeting place, being the Council Chambers at 3300 Newport Boulevard,
Newport Beach, California, on February 24, 2004 at 7:00 p.m.
Pursuant to the provisions of the Assessment Law, each record owner of property
that is subject to the assessment has the right to submit an assessment ballot in favor of or
in opposition to the proposed assessment.
Assessment ballots will be mailed to the record owner of each property interest
located within the assessment district and subject to a proposed assessment. Each such
owner may complete such ballot and thereby indicate their support for or opposition to the
proposed assessment. All such ballots must be received by the City Clerk at the following
address at or before the time set for the close of the public hearing:
City Clerk
City of Newport Beach
3300 Newport Boulevard
Newport Beach, CA 92658
A postmark prior to such date and time will not be sufficient.
At the conclusion of the public hearing, the City Council shall cause the assessment
ballots timely received to be opened and tabulated. If a majority protest exists, the City
Council shall not impose an assessment within the assessment district. A majority protest
exists if, upon the conclusion of the public hearing, assessment ballots submitted in
opposition to the assessments within the assessment district exceed the ballots submitted
in favor of such assessments. In tabulating the ballots, the ballots shall be weighted
according to the proportional financial obligation of the affected property.
SECTION 5. The City Clerk is hereby directed to mail, in the form and manner
prescribed in the Assessment Law and at least 45 days prior to the date of the public
hearing, notice of the public hearing and the adoption of the Resolution of Intention and of
the filing of the Report, togetherwith the assessment ballot materials, tothe record owners
of all real property proposed to be assessed.
SECTION & The City Clerk is hereby further directed to file a copy of the proposed
boundary map in the Office of the County Recorderwithin fifteen (15) days of the adoption
of this resolution; said boundary map to be filed in the manner and form as set forth in
Division 4.5 of the Streets and Highways Code of the State of Califomia.
PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of
the City of Newport Beach, held on the 9th day of December, 2003, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
City Clerk
3
Steven Bromberg, Mayor
ENGINEER'S REPORT
for
UTILITY UNDERGROUNDING
ASSESSMENT DISTRICT NO. 81
(River Avenue from Channel Place to 38th Street and
Channel Place from Balboa Boulevard to 43rd Street)
for the
CITY OF NEWPORT BEACH
Preliminary: December 9, 2003
Confirmed:
ENGINEER'S "REPORT"
CITY OF NEWPORT BEACH
ASSESSMENT DISTRICT NO. 81
(River Avenue from Channel Place to 3e Street and
Channel Place from Balboa Boulevard to 43i4 Street)
TABLE OF CONTENTS
Citations and Contents of Report 1
PART I - PLANS AND SPECIFICATIONS 4
PART II - ESTIMATE OF COSTS 5
PART III - ASSESSMENT ROLL
7
EXHIBIT IA - 1931 ACT TABLE OF VALUES IA -1
(Follows Page 9)
EXHIBIT 1B - DEBT LIMIT VALUATION 10
EXHIBIT "A" - METHOD AND FORMULA OF
ASSESSMENT SPREAD 11
PART IV - ANNUAL ADMINISTRATIVE ASSESSMENT 16
PART V - BOUNDARY MAP AND ASSESSMENT DIAGRAN 17
PART VI(A) - DESCRIPTION OF WORKS OF IMPROVEMENT,
TIME ESTIMATE 18
PART VI(B) - RIGHT -OF -WAY CERTIFICATE 20
PART VI(C) - CERTIFICATE OF COMPLETION OF
ENVIRONMENTAL PROCEEDINGS 21
EXHIBIT II - ASSESSMENT ROLL (Follows Page 21) II -1
AGENCY: CITY OF NEWPORT BEACH
PROJECT: UTILITY UNDERGROUNDING
ASSESSMENT DISTRICT NO. 81
(River Avenue from 38th Street to Channel Place and
Channel Place from Balboa Boulevard to 43rd Street)
TO: CITY COUNCIL
ENGINEER'S "REPORT" PURSUANT TO THE PROVISIONS
OF SECTION 10204 OF THE STREETS AND HIGHWAYS CODE
Pursuant to the provisions of the "Municipal Improvement Act of 1913 ", being Division 12 of
the Streets and Highways Code of the State of California, the "Special Assessment
Investigation, Limitation and Majority Protest Act of 1931 ", being Division 4 of said Streets
and Highways Code, and Section 4(b) of Article XIIID of the Constitution of the State of
California, and in accordance with the Resolution of Intention, being Resolution No. ,
adopted by the CITY COUNCIL of the CITY OF NEWPORT BEACH, STATE OF
CALIFORNIA, in connection with the proceedings for ASSESSMENT DISTRICT NO. 81,
(River Avenue from 38th Street to Channel Place and Channel Place from Balboa Boulevard to 43rd
Street) (hereinafter referred to as the "Assessment District "), I, JOHN A. FRIEDRICH,
authorized representative of GFB- FRIEDRICH & ASSOC., INC., the duly appointed
ASSESSMENT ENGINEER, submit herewith the 'Report" for the Assessment District,
consisting of five (5) parts as follows:
17/191111
Plans and specifications for the proposed improvements. Said plans and specifications are
hereby incorporated into and by this reference made a part of this Report.
PART II
An estimate of the cost of the proposed works of improvement, including capitalized interest,
incidental costs and expenses in connection therewith.
PART III
This Part shall consist of the following information:
A. A proposed assessment of the total amount of the costs and expenses of the proposed
improvements upon the several subdivisions of land within the Assessment District, in
proportion to the special benefits to be received by such subdivisions from said
improvements.
B. The total amount, as near as may be determined, of the total principal sum of all unpaid
special assessments and special assessments required or proposed to be levied under any
completed or pending assessment proceedings, other than that contemplated for the
Assessment District.
C. The total true value, as near as may be determined from the latest Assessor's roll, of the
parcels of land and improvements which are proposed to be assessed.
D. Exhibit I indicates the total of the proposed assessment combined with any previously
unpaid assessment on any parcel of land in the proposed district.
PART IV
This part contains the proposed maximum annual administrative assessment to be levied upon
each subdivision or parcel of land within the Assessment District to pay the costs incurred by
the City of Newport Beach, and not otherwise reimbursed, resulting from the administration
and collection of assessments, from the administration and registration of any associated bonds
and reserve or other related funds, or both.
PART V
A diagram showing the Assessment District, the boundaries and the dimensions of the
subdivisions of land within said Assessment District, as the same existed at the time of the
passage of the Resolution of Intention.
PART VI
This Part consists of the following information:
A. Description of the work for the proposed improvements.
B. Right -of -way certificate.
C. Environmental certification.
Dated this 2414X day of /VO!/c°Whei- , 20 0.
GFB- FRIEDRICH & ASSOC., INC.
� or = e ASSESSMENT ENGI I
No. C27861
E :p. 3/31 /O6
A. ED CH, .E.
\� CIVIL ,0' NEER
iA
Preliminary Approval by the CITY COUNCIL of the CITY OF NEWPORT BEACH,
California, on the day of 20_
CITY CLERK
CITY OF NEWPORT BEACH
STATE OF CALIFORNIA
Final Approval by the CITY COUNCIL of the CITY OF NEWPORT BEACH, California, on
the day of 20_
CITY CLERK
CITY OF NEWPORT BEACH
STATE OF CALIFORNIA
M
ENGINEER'S "REPORT"
19FARS1
CITY OF NEWPORT BEACH
ASSESSMENT DISTRICT NO. 81
(River Avenue from 38th Street to Channel Place and
Channel Place from Balboa Boulevard to 43rd Street)
PLANS AND SPECIFICATIONS
The plans and specifications which describe the general nature, location, and extent of the
improvements for this Assessment District are filed in the office of the City Clerk and in the
office of the Public Works Department; and are hereby incorporated into this "Report" by
reference as if attached.
El
ENGINEER'S "REPORT"
PART II
CITY OF NEWPORT BEACH
ASSESSMENT DISTRICT NO. 81
(River Avenue from Channel Place to 38th Street and
Channel Place from Balboa Boulevard to 43rd Street)
COST ESTIMATE
Preliminary Estimate
Costs without with Final
SCE ITCC Tax SCE ITCC Tax * ** Assessment
A. CONSTRUCTION COSTS
1. Southern California Edison
SCE Relocation Cost Invoice
Underground Structures and Conduit Installation
$345,709.00
$345,709.00
Underground Cable and Equipment Installation
$98,732.00
$98,732.00
SCE ITCC Tax **
$97,777.02
Subtotal, Southern California Edison Costs:
Without SCE ITCC Tax
$444,441.00
With SCE ITCC Tax
$542,218.02
2. SBC
Contractor Final Cost Estimate
$225,787.00
$225,787.00
Subtotal, SBC Costs
$225.787.00
$225.787.00
Subtotal, Construction
$670,228.00
$768,005.02
Construction Contingencies
67,022.80
76.800.50
TOTAL CONSTRUCTION COSTS
$737,250.80
$844,805.52
B. INCIDENTAL COSTS
1. Design Engineering (SCE)
$15,000.00
$15,000.00
2. Design Engineering (SBC)
13,000.00
13,000.00
3. Assessment Engineering
17,000.00
17,000.00
4. Construction Inspection
6,600.00
6,600.00
5. City Administration
10,000.00
10,000.00
6. Printing, Advertising, Notices
4,000.00
4,000.00
7. Filing Fees
650.00
650.00
8. Bond Counsel
20,000.00
20,000.00
9. Paying Agent
4,000.00
4,000.00
10, Contingencies
11.000.00
11.000.00
Subtotal, Incidentals
$101,250.00
$101,250.00
Subtotal, Construction & Incidentals
$838,500.80
$946,055.52
(Continued -Next Page)
ENGINEER'S "REPORT"
PART II
CITY OF NEWPORT BEACH
ASSESSMENT DISTRICT NO. 81
(River Avenue from Channel Place to 381h Street and
Channel Place from Balboa Boulevard to 43rd Street)
COST ESTIMATE
Preliminav Estimate
Costs without with Final
SCE C Tax SCE ITCC Tax * ** Assessment
Subtotal Forward, Construction & Incidentals
$838,500.80
$946,055.52
C. FINANCING COSTS
1. Bond Discount (2 %)
$18,842.69
$21,259.67
2. Bond Reserve (5 %)
47,106.73
53,149.19
3. Capitalized Interest (4 %)
37,685.38
42,519.35
Subtotal, Financing Costs
$103,634.80
$116,928.21
TOTAL DISTRICT COSTS
$942,135.60
$1,062,983.73
D. CASH CONTRIBUTION
$0.00
$0.00
E. BALANCE TO ASSESSMENT
$942,134.60
$1,062,983.74
* Adelphia Cable is required to pay for undergrounding through their Franchise Agreement with the City.
** ITCC = Income Tax Component of Contribution (22 %).
[Section 18(b) of IRS Code]
* ** 2nd bond issue for Federal Income Tax Component of Contribution (ITCC - 22 %) will only be issued
if the Federal Government implements the tax. The 2nd bond issue (ITCC issue) amount is the
difference between the Balance to Assessment in the "with ITCC Tax" column above and the Balance
to Assessment in the "without ITCC Tax" column above.
ENGINEER'S "REPORT"
PART III
CITY OF NEWPORT BEACH
ASSESSMENT DISTRICT NO. 81
(River Avenue from 38th Street to Channel Place and
Channel Place from Balboa Boulevard to 43rd Street)
ASSESSMENT ROLL
WHEREAS, on 20_, the CITY COUNCIL of the CITY OF
NEWPORT BEACH, CALIFORNIA, did, pursuant to the provisions of the "Municipal
Improvement Act of 1913 ", being Division 12 of the Streets and Highways Code of the State
of California, and as amended, the "Special Assessment Investigation, Limitation and Majority
Protest Act of 1931 ", being Division 4 of said Streets and Highways Code, and Article XIIID
of the Constitution of the State of California, adopt its Resolution of Intention No.
for the construction of certain public improvements, together with appurtenances and
appurtenant work in connection therewith, in a special assessment district known and
designated as ASSESSMENT DISTRICT NO. 81 (River Avenue from 38th Street to Channel
Place and Channel Place from Balboa Boulevard to 43rd Street), hereinafter referred to as the
"Assessment District "); and,
WHEREAS, said Resolution of Intention, as required by law, did direct GFB- Friedrich &
Assoc., Inc., to make and file a "Report ", consisting of the following:
A. Plans and specifications of the improvements proposed to be constructed;
B. An estimate of the cost of the construction of the improvements proposed to be
constructed, including the cost of the incidental expenses, in connection therewith;
C, A diagram showing the Assessment District, which shall also show the boundaries
and dimensions of the respective real property and other territory within such
Assessment District, as the same existed at the time of the passage of this Resolution
of Intention, each of which subdivisions shall be given a separate number upon such
diagram;
D. The proposed assessment of the assessable costs and expenses of the construction of
the proposed improvements upon the real property in the Assessment District in
proportion to the estimated special benefits to be received by the real property,
respectively, from such improvements. Such assessment shall refer to such real
property upon such diagram by the respective numbers thereof; and
7
E. The description of the improvements proposed to be constructed under these
proceedings.
For particulars, reference is made to the Resolution of Intention as previously adopted.
NOW, THEREFORE, I, JOHN A. FRIEDRICH, a licensed engineer of GFB- Friedrich &
Assoc., Inc., the duly appointed Assessment Engineer, pursuant to the "Municipal
Improvement Act of 1913" and Article XIIID of the Constitution of the State of California, do
hereby submit the following:
1. I, pursuant to the provisions of law and the Resolution of Intention, have assessed the
costs and expenses of the works of improvement to be performed in the Assessment
District upon the parcels of land in the Assessment District specially benefited thereby
in direct proportion and relation to the special benefits to be received by each of said
parcels. For particulars to the identification of said parcels, reference is made to the
Assessment Diagram, a copy of which is attached hereto.
2. As required by law, a Diagram is hereto attached, showing the Assessment District,
as well as the boundaries and dimensions of the respective parcels and subdivisions of
land within said District as the same existed at the time of the passage of said
Resolution of Intention, each of which subdivisions of land or parcels or lots,
respectively, have been given a separate number upon said Diagram and in said
Assessment Roll.
3. The subdivisions and parcels of land with numbers therein as shown on the respective
Assessment Diagram as attached hereto correspond with the numbers appearing on
the Assessment Roll as contained herein.
4. NOTICE IS HEREBY GIVEN that bonds will be issued in accordance with Division
10 of the Streets and Highways Code of the State of California (the "Improvement
Bond Act of 1915 "), to represent all unpaid assessments, and the last installment of
said bonds shall mature a maximum of THIRTY -NINE (39) YEARS from the 2nd of
September next succeeding twelve (12) months from their date. Said bonds shall bear
interest at a rate not to exceed the current legal maximum rate of 12% per annum.
5. By virtue of the authority contained in said "Municipal Improvement Act of 1913"
and the requirements contained in Article XIIID, and by further direction and order of
the City Council, I hereby make the following assessment to cover the costs and
expenses of the works of improvement for the Assessment District based on the costs
and expenses as set forth below:
THIS SPACE INTENTIONALLY LEFT BLANK
E3
AS
PRELIMINARILY AS
APPROVED CONFIRMED
Estimated Cost of Construction (including ITCC) $ 844,805.52 $
Estimated Incidental Costs and Expenses: $ 101,250.00 $
Estimated Financing (Bond) Costs: $ 116,928.21 $
Estimated Total Cost: $ 1,062,983.74 $
Estimated Contribution:
Balance to Assessment:
$ 0.00 $
$ 1,062,983.74 $
For particulars as to the individual assessments, reference is made to Exhibit II attached
hereto.
6. The Method and Formula of Assessment Spread is as set forth in Exhibit "A ", which
is attached hereto, referenced and so incorporated.
THIS SPACE INTENTIONALLY LEFT BLANK
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CITY OF NEWPORT BEACH
ASSESSMENT DISTRICT No. 81
(River Avenue from 38th Street to Channel Place and
Channel Place from Balboa Boulevard to 43rd Street)
Exhibit IB
DEBT LIMIT VALUATION
A. Estimated Balance to Assessment
$190629984
B. Unpaid Special Assessments
0.00
Total A & B
$190629984
C. True Value of Parcels
$1693959842 **
Average Value to Lien Ratio
15 : 1
Unpaid Special Assessments shall consist of the total principal sum of all unpaid special assessments
previously levied or proposed to be levied other than in the instant proceedings.
** True Value of Parcels means the total value of the land and improvements as estimated and shown on the last
equalized roll of the County.
This report does not represent a recommendation of parcel value, economic viability or financial feasibility, as that
is not the responsibility of the Assessment Engineer.
CERTIFICATION
I, the undersigned Assessment Engineer, do hereby certify that the total amount of the principal sum of the special
assessments proposed to be levied, together with the principal amount of previously levied special assessments, as
set forth above, does not exceed one -half (1/2) of the true value of the parcels proposed to be assessed.
That for purposes hereof, "Certificate" shall mean a statement signed and /or sealed by a professional engineer
representing that the engineering services are an expression of professional opinion regarding those facts or
findings which are the subject of the certificate, and does not constitute a warranty or guarantee, either expressed
or implied.
t' I WA !' '!/I' 1/
10
GFB- FRIEDRICH & ASSOC., INC.
HN A. FRIED H, P.E.
ASSESSMENT ENGINEER
ENGINEER'S "REPORT"
EXHIBIT "A"
CITY OF NEWPORT BEACH
ASSESSMENT DISTRICT NO. 81
(River Avenue from 38th Street to Channel Place and
Channel Place from Balboa Boulevard to 43rd Street)
METHOD AND FORMULA OF ASSESSMENT SPREAD
Article XIIID requires and the statutes provide that assessments, as levied pursuant to the
provisions of the "Municipal Improvement Act of 1913 ", must be based on the special benefit
that the properties receive from the works of improvement. It is necessary that the property
owners receive a special and direct benefit distinguished from that of the general public. The
law does not specify the method or formula that should be used in any special assessment
district proceedings, and that responsibility rests with the Assessment Engineer, who is
appointed for the purpose of making the analysis of the facts and determining the correct
apportionment of the assessment obligation. The goal is to apportion the assessments to each
parcel in direct proportion with the special benefit that the parcel will receive from the
improvements. For these proceedings, GFB- Friedrich & Assoc., Inc. has been appointed to
perform the functions of Assessment Engineer.
The special benefits that inure to the properties within the boundary of Assessment District No.
81 are threefold; first, the undergrounding of existing overhead electrical and telephone lines,
the removal of supporting poles, and the construction of a new and improved underground
electrical and telephone system will result in enhanced service, reliability and capacity; second,
the improvements increase safety; and third, removal of existing poles and overhead wires will
aesthetically enhance all parcels adjacent to the improvements.
Because all of the lots receiving special benefit from the proposed improvements contain
residences (single - family, duplexes, condominiums, apartments, etc.), except three City lots
(see below), it is reasonable and our conclusion to spread the assessments using an assessment
unit (AU) formula where each lot is assessed relative to a "standard" residence with a 30 -foot
frontage (1.0 AU) within the Assessment District that receives a full measure of special
benefit. The construction cost and proportionate share of the incidental costs for bid items will,
therefore, be spread on an assessment unit basis to those areas or sub -areas of the Assessment
District that specially benefit from the works of improvement. Because the benefit from
improved electric and telephone service, safety and aesthetics is specific to each lot, there is no
general benefit component that is received by lots outside of the Assessment District boundary
or by the general public. The special benefit received from the above -cited works of
improvement is estimated to be in direct proportion to the number of assessment units (AU's)
allocated to each lot as described below.
11
The proportionate special benefit that each lot receives is based upon the fact that each lot
receives approximately the same special benefit from the new electric and telephone
distribution facilities that are proposed to be constructed and by the removal of the existing
overhead distribution facilities. The assessment unit (AU) formula to be used throughout the
Assessment District is given below. Please refer to the Assessment Diagram for the location of
existing overhead facilities.
Land Use
"Standard" Residence /Duplex /Triplex
2 Residential Room Rental /Apartment Units
3 Residential Room Rental /Apartment Units
Condominium Unit
Municipal Park (Channel Place Park)
(Since the park receives an electrical service drop
only, the assessment will be based on one -half of
the front footage)
Street Right -of -way Lots (2 each)
Assessment Basis
1.0 AU /30 foot lot
1.0 AU /30 foot lot
1.0 AU /30 foot lot
0.8 AU /30 foot lot /unit
Front Footage of
undergrounded utility
lines divided by 30 feet
equals equivalent AU's
0.0 AU /lot
The number of AU's for lots or parcels with front footage in excess of 30 feet shall be
determined by dividing the number of front feet by 30 feet (e.g., a lot with 40 feet of
frontage will be assessed for 40 feet - 30 feet /AU or 1.33 AU).
The assessment on each parcel shall not be less than the equivalent standard assessment
times the number of service drops provided to said parcel. Said equivalent standard
assessment is based on the assessment for one service drop, as defined in the next
paragraph, to a "standard" residential parcel with a 30 -foot frontage.
A service drop is defined as an electric service line and a telephone service line constructed
to the property line of a parcel or lot. A single residential service drop is based on service
to a "standard" residence with 30 feet of frontage. A service drop for a multiple -unit
residential /apartment complex or a larger commercial use may require larger service lines
to meet user demands.
A parcel that receives only electric service or only telephone service will be assessed at
one -half of the amount of a parcel receiving both electric and telephone services.
In anticipation that a lot or parcel that receives no assessment or a partial assessment in this
Assessment District has a residence or commercial building constructed on it in the future
that requires full electric and /or telephone service, the City in conjunction with the utility
companies, will charge sufficient fees and construction costs to the property owner(s) of
such a lot or parcel to effect equity with the other lots or parcels that received assessments
for similar facilities in this Assessment District. Some or all of said fees and construction
12
costs may be used to pay down the assessments on the other parcels within the Assessment
District on a pro -rata basis.
Some of the lots and parcels, identified by their Assessor Parcel Numbers, within the boundary
of the proposed assessment district require special consideration, as follows:
Assessor
Parcel No. Land Use
Description
423 - 294 -01 Single - family This parcel is triangular in shape with 3,060 s.f. of
Residential area. To determine the number of AU's that are
comparable to rectangular lots nearby, it's area
(3,060 s.f.) is divided by the area of a parcel with
30 feet of frontage (3,000 s.f. /AU) and the result
is 1.02 AU. This parcel also will have a guy pole
remaining at its corner. A 20 percent reduction in
its assessment is given to this parcel as a result of
the remaining guy pole for a total assessment of
0.82 AU.
432 - 292 -01 Single - family This parcel is triangular in shape with 3,631 s.f. of
Residential area. To determine the number of AU's that are
comparable to rectangular lots nearby, it's area
(3,631 s.f.) is divided by the area of a parcel with
30 feet of frontage (3,000 s.f. /AU) and the result
is 1.21 AU to be assessed to this parcel.
A lot with a front footage greater than 30 feet will have its front footage divided by 30 feet /AU
to obtain an equivalent AU value to determine its assessment (e.g., 45 feet of frontage divided
by 30 feet /AU equals 1.5 AU).
It must be noted that there are five segments of overhead electrical /telephone lines that will be
undergrounded as part of this project that each extend from the alleys between 38th Street and
39th Street, 39th Street and 40th Street, 40th Street and 41st Street, 42nd Street and 43rd
Street, and 43rd Street and 44th Street. This undergrounding will take place between the
existing poles (which will remain) located in the alleys between the last pair of lots next to
River Avenue and the electric /telephone lines which will be undergrounded on the north side
of River Avenue (Please refer to the Assessment Diagram in Part V of this Report for
clarification). Although undergrounding will take place between said last pair of lots in each
alley, the electric and telephone service line drops to each of said last pair of lots will still be
provided from the remaining overhead facilities in the alleys. Therefore, there will be no
special benefit accruing to said last pairs of lots from the works of improvement in this
District. At such time as an undergrounding assessment district is formed in the future to
underground the remainder of the overhead facilities in the alleys, said last pairs of lots will be
assessed for the undergrounded improvements in that future assessment district.
13
During the time that this Engineer's Report was being written, a variety of other assessment
formulae were considered.
Front footage was considered as a method of spreading assessments but was rejected
because several of the lots have front footages that are not reflective of the special
benefit gained from the type of proposed improvements.
Acreage was rejected as a method of spreading assessments because of the difference in
size among the lots within the District. The use of an acreage formula would not reflect
the special benefit derived from undergrounded electrical and telephone improvements.
In conclusion, it is my opinion that the assessments for the above - referenced Assessment
District have been spread in direct proportion to the special benefits that each lot or parcel
receives from the works of improvement. It is my further opinion that:
a. The proportionate special benefit derived by each identified lot has been determined in
relationship to the entirety of the cost of the construction of the works of improvement.
b. No assessment has been imposed on any lot that exceeds the reasonable cost of the
proportional special benefit conferred on that lot.
c. Only special benefits have been assessed.
GFB- FRIEDRICH & ASSOC., INC.
fifty A. E CH, P.E.
ASSESSMENT ENGINEER
THIS SPACE INTENTIONALLY LEFT BLANK
14
Ij&UonAC M. n4 S -9t; , as CITY CLERK of the CITY OF NEWPORT BEACH,
CALIFORNIA, do hereby certify that the foregoing assessment, together with the Diagram
attached thereto, was filed in my office on the !ql day of ICJDV tn,1i e r , 20
CITY CLERK
CITY OF NEWPORT BEACH
STATE OF CALIFORNIA
I, , as CITY CLERK of the CITY OF NEWPORT BEACH,
CALIFORNIA, do hereby certify that the foregoing assessment, together with the Diagram
attached thereto, was approved and confirmed by the City Council of said City on the
day of , 20
CITY CLERK
CITY OF NEWPORT BEACH
STATE OF CALIFORNIA
I, STEPHEN G. BADUM, P.E., as SUPERINTENDENT OF STREETS of the CITY OF
NEWPORT BEACH, CALIFORNIA, do hereby certify that the foregoing assessment,
together with the Diagram attached thereto, was recorded in my office on the day of
,20
SUPERINTENDENT OF STREETS
CITY OF NEWPORT BEACH
STATE OF CALIFORNIA
15
ENGINEER'S "REPORT"
PART IV
CITY OF NEWPORT BEACH
ASSESSMENT DISTRICT NO. 81
(River Avenue from 38th Street to Channel Place and
Channel Place from Balboa Boulevard to 43rd Street)
ANNUAL ADMINISTRATIVE ASSESSMENT
A proposed maximum annual administrative assessment shall be levied on each parcel of land
and subdivision of land with the Assessment District to pay for necessary costs and expenses
incurred by the City of Newport Beach, and not otherwise reimbursed, resulting from the
administration and collection of assessments, from the administration or registration of any
bonds and reserve or other related funds, or both. The maximum assessment is authorized
pursuant to the provisions of Section 10204(f) of the Streets and Highways Code and shall not
exceed fifty dollars ($50) per parcel per year, subject to an annual increase based on the
Consumer Price Index (CPI), during the preceding year ending in January, for all Urban
Consumers in the Orange, Los Angeles, and Riverside County areas. The exact amount of the
administration charge will be established each year by the Superintendent of Streets.
The annual administrative assessment will be collected in the same manner and in the same
installments as the assessment levied to pay for the cost of the works of improvement.
16
ENGINEER'S "REPORT"
IWA,4 &9/
CITY OF NEWPORT BEACH
ASSESSMENT DISTRICT NO. 81
(River Avenue from 38th Street to Channel Place and
Channel Place from Balboa Boulevard to 43rd Street)
BOUNDARY MAP AND ASSESSMENT DIAGRAM
Full -sized copies of the Boundary Map and the Assessment Diagram are on file in the Office of
the City Clerk of the City of Newport Beach. Please refer to the following pages for reduced
copies of said maps.
As required by the Act, the Assessment Diagram shows the exterior boundary of the District
and the assessment number assigned to each parcel of land that appears in the 1931 Act Table
of Values (Exhibit IA) and the Assessment Roll (Exhibit II). The Assessor's parcel number is
also shown for each parcel or lot as they existed at the time of the adoption of the Resolution of
Intention and reference is hereby made to the Assessor's Parcel Maps of the County of Orange
for the boundaries and dimensions of each parcel or lot within the District
17
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ENGINEER'S REPORT
PART VI(A)
CITY OF NEWPORT BEACH
ASSESSMENT DISTRICT NO. 81
(River Avenue from 38th Street to Channel Place and
Channel Place from Balboa Boulevard to 43rd Street)
DESCRIPTION OF WORKS OF IMPROVEMENT, TIME ESTIMATE
The following improvements are proposed to be constructed and installed in easements along
the northerly side of River Avenue between 38th Street and the intersection of River Avenue
and Channel Place between 43rd Street and 44th Street, and the north side of Channel Place
between Balboa Boulevard and the intersection of Channel Place and River Avenue between
43rd Street and 44th Street.
1. Removal of 15 existing power and telephone poles.
2. Removal of all overhead service drops for both electric and telephone service.
3. Construction of approximately 5,315 linear feet each of mainline underground
power and telephone conduit, with appurtenant vaults, manholes and pullboxes.
4. Construction of underground cable television conduit with appurtenant facilities.
5. Construction of required service conduit and appurtenances to private and public
property lines for 37 lots and two residential condominiums within the District.
The improvements will be designed and constructed by the Southern California Edison
Company (electric), SBC (telephone) and Adelphia (cable TV). The City of Newport Beach
will inspect the work for conformance to applicable City standards and specifications. Once
completed, the underground electric, telephone and cable TV facilities will become the
property and responsibility of Southern California Edison, SBC and Adelphia, respectively.
Each owner of property located within the Assessment District will be responsible for
arranging for, and paying for, work on his or her property necessary to connect facilities
constructed by the public utilities in the public streets or easements to the points of connection
on private property. Conversion of individual service connections on private property is not
included in the work done by the Assessment District.
The estimated time for completion of the undergrounding of the utilities is six (6) months after
the sale of bonds. Property owners will be required to provide necessary underground
connections within 120 calendar days of the completion of the underground facilities.
T:
Failure to convert individual service connections on private property may result in a
recommendation to the City Council that the public utility companies be directed to discontinue
service to that property. Overhead facilities cannot be removed until all overhead service has
been discontinued.
The general locations of the existing facilities to be undergrounded are shown on the
Assessment Diagram in Part V of this "Report ".
19
ENGINEER'S "REPORT"
PART VI(B)
CITY OF NEWPORT BEACH
ASSESSMENT DISTRICT NO. 81
(River Avenue from 38th Street to Channel Place and
Channel Place from Balboa Boulevard to 43rd Street)
RIGHT -OF -WAY CERTIFICATE
CITY OF NEWPORT BEACH
COUNTY OF ORANGE
STATE OF CALIFORNIA
The undersigned hereby CERTIFIES UNDER PENALTY OF PERJURY that the following is true and
correct. At all times herein mentioned, the undersigned was, and now is, the duly appointed
SUPERINTENDENT OF STREETS of the CITY OF NEWPORT BEACH, CALIFORNIA.
That there have now been instituted proceedings under the provisions of the "Municipal Improvement
Act of 1913 ", being Division 12 of Streets and Highways Code of the State of California, for the
construction of certain public improvements in a special assessment district known and designated as
ASSESSMENT DISTRICT NO. 81 (River Avenue from 38th Street to Channel Place and Channel
Place from Balboa Boulevard to 43rd Street) (hereinafter referred to as the "Assessment District "),
THE UNDERSIGNED STATES AND CERTIFIED AS FOLLOWS:
That all easements, rights -of -way or land necessary for the accomplishment of the works of
improvement for the above - referenced Assessment District have been obtained and are in the
possession of the City.
It is further acknowledged that works of improvement as proposed to be constructed within
said Assessment District must be constructed within public rights -of -way, land or easements as
owned by said City at the time of the construction of the works of improvement.
EXECUTED this 7"'1
Zy day of dl/ ✓�,6C4 , 2003 , at Newport Beach, California.
,STEPHEN G. BADUM, P.E.
S PMRINTENDENT OF STREETS
CITY OF NEWPORT BEACH
STATE OF CALIFORNIA
FA
ENGINEER'S "REPORT"
PART VI(C)
CITY OF NEWPORT BEACH
ASSESSMENT DISTRICT NO. 81
(River Avenue from 38th Street to Channel Place and
Channel Place from Balboa Boulevard to 43rd Street)
CERTIFICATION OF COMPLETION OF ENVIRONMENTAL PROCEEDINGS
CITY OF NEWPORT BEACH
COUNTY OF ORANGE
STATE OF CALIFORNIA
The undersigned, under penalty of perjury, CERTIFIES as follows:
1. The improvements to be constructed under the proceedings in Assessment District No. 81 are
categorically exempt from the provisions of the California Environmental Quality Act (CEQA)
under the provisions of Paragraph 15302, Class 2 (d) of "Guidelines For Implementation of the
California Environmental Quality Act ", as adopted by the Secretary for Resources of the State of
California, June 1992.
2. The undergrounding to be done under Assessment District No. 81 is categorically exempt from the
requirement for the preparation of environmental documents under the California Environmental
Quality Act guidelines because the Secretary for Resources has found that conversion of overhead
electric utility distribution system facilities to underground locations where the surface is restored
to the condition prior to the undergrounding, does not have a significant effect on the environment,
and are declared to be categorically exempt.
3. A Notice of Exemption has been filed in the office of the County Clerk of Orange County,
California. A copy of the Notice of Exemption marked Exhibit "C" is attached to this Report and is
hereby made a part of this Report.
4. All environmental evaluation proceedings necessary for the formation of Assessment District No.
81 have been completed to my satisfaction, and no further environmental proceedings are
necessary.
EXECUTED this 041 7W day of 20 03 at Newport Beach, California.
STEPYEN G. BADUM, P.E.
D CTOR OF PUBLIC WORKS
ITY OF NEWPORT BEACH
STATE OF CALIFORNIA
21
Exhibit "C" 0'tv"e 'Pc' C—DV. C Ccc lzLos
C,<fY OF. NEWPORT BEAaH POSTED
FI D 3300 Newport Boulevard - P.O. Box 1768
JAN 0 12003 Newport Beach, CA 92658 -8915 JAN 0 4V 2003
(714) 644 -3200
DDYRLENE J. BLOO %.IN ERW CLERK- RECORDER DARLENEJ. BLOOM. INTERIM CLERK- RECORDER
DEPUTY NOTICE OF EXEMPTION By ye DEPUTY
To:
From: City of Newport Beach
F-1 Office of Planning and Research
1400 Tenth Street, Room 121
Planning Department
3300 Newport Boulevard - P.O. Box 1768
Sacramento, CA 95814
Newport Beach, CA 92658 -8915
(Orange County)
County Clerk, County of Orange
X Public Services Division
❑
P.O. Box 238
Date received for filing at OPR:
Santa Ana, CA 92702
L
Name of Project: Assessment District No. 81.
Project Location: River Avenue, Newport Beach, CA
Specific: From Channel Place to 38`h Street, including Channel Place
Project Location -City: Ne-wport Beach Project Location - County: Orange
Project Description: The project consists of an assessment district to underground existing overhead utilities.
Recorded in Official Records, County of Oran
E pt Status: (check one) Tom Daly, Clerk- Recorder
E
Ministerial [Sec. 21080(b)(1);15268]; 11111111111111111 111111 11111111111 !IIIIpIIICIIIIIIIIIIIIIIlIINO FEE
Declared Emergency [Sec. 21080(b)(3); 15269(a)j; 200385000016 08508m 011071(
Emergency Project [Sec. 21080(b)(4); 15269(b)(c)j; 0.0 10 z01
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Categorical Exemption. State type and section number. Class 2: Replacement and
reconstruction; Section 15302.
QStatutory Exemptions. State code number:
General Rule [Sec. 15061 (b)(3)]
Reasons why project is exempt: _The Secretary for Resources has found that conversion of overhead electric
utility distribution system facilities to underground locations where the surface is resored to the condition prior
to undergroundine does not have a significant effect on the environment.
Name of Public Agency Approving Project: City of Newport Beach
Date of Appoval:
Name of Person or Agency Carrying Out Project: Newport Beach Public Works Dept.
Contact Person: Patrick L. Arciniega Title: Junior Engineer
Signature: Tel.No. 949/644 -3347 Date: 12-,
Patrick L. Arciniega, Project Enginecr
ge
3
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"T
BOND COUNSEL AGREEMENT
ASSESSMENT DISTRICT NO. 81 (RIVER AVENUE)
THIS AGREEMENT is made and entered into as of November 1, 2003, by and between the City of
Newport Beach, California, a municipality ( "City "), and Robert E. Hessell, attomey -at -law ( "Counsel').
WITNESSETH
IT IS HEREBY AGREED by and between Counsel and City as follows:
SECTION 1. Obligations of Counsel. Under this agreement, Counsel shall perform legal services
for and on behalf of City in connection with the proceedings relating to the formation of an underground
utilities assessment district designated Assessment District No. 81 (River Avenue) (the "AD "), to the
establishment of an underground utilities district, and to any related bond or other debt issuance by, or for the
benefit of, the AD.
1.1 Time is of the essence in the performance of services under this agreement and the
services shall be performed to completion in a diligent and timely manner.
SECTION 2. Scope of Services. Legal services to be provided by Counsel shall include: (a)
attending negotiation sessions and otherwise assisting City staff in the negotiation with utility companies; (b)
preparing all resolutions, notices, agreements, bonds, and other papers and documents required in the
proceedings; (c) examining the proceedings related to the formation of the AD (d) appearing at all hearings
under the proceedings, and attending any other meeting where attendance is requested by the City; (e)
reviewing and examining the map showing the boundaries of the AD; (f) reviewing the method and formula
utilized by the Assessment Engineer for the apportionment of the special assessment; (g) reviewing the
"Report" of the Assessment Engineer; (h) participating with the City's financing team to determine the
structure of any bond or similar debt issuance; (i) assisting in the review of those sections of the official
statement to be disseminated in connection with the issuance of any series of bonds related to authority and
security for the bonds, tax - exemption, legal opinion, litigation, summary of bond indenture, bond purchase
agreement or notice of sale and other supporting documentation relating to the offering for sale ofany bonds or
similar indebtedness; 0) preparing or reviewing any continuing disclosure agreement required under SEC Rule
15c2 -12; (k) consulting with any underwriter, rating agency and credit enhancement provider, and their
respective legal counsel, participating in the sale of, or security for, any bonds or similar indebtedness; (1)
consulting with any trustee, fiscal agent or paying agent, and their respective legal counsel, participating in the
sale of, or security for, any bonds or similar indebtedness; (m) assisting in any ballot proceedings; (n) subject to
the completion of the proceedings to Counsel's satisfaction, issuing an approving legal opinion attesting to the
validity of the proceedings and the issuance of bonds or similar indebtedness, which legal opinion will be
addressed to the City and will be delivered by Counsel on the date the bonds are exchanged for their purchase
price (the "Closing "); (o) providing any necessary supplemental legal opinions as to the applicability of the
registration requirements of federal securities laws and other matters related to the issuance of bonds or similar
indebtedness; provided, however, such opinions do not include the rendering of 10(b)5 opinion regarding any
official statement or similar document; (p) providing advice and instruction to the City and its staff in
connection with any of the foregoing.
SECTION 3. Obligations of City. The City shall:
A. Furnish to Counsel such maps, records, title searches, filings, reports, certificates and other
documents and proceedings, or certified copies thereof, as are necessary or convenient for
Counsel to provide Counsel's approving legal opinions.
B. Pay Counsel for services rendered pursuant to this agreement as follows:
Formation of AD and Debt Issuance. If the AD is formed and bonds or similar
indebtedness are issued by or for the benefit of the AD, Counsel shall be paid a fee
for all services provided under this agreement. The fee shall be $20,000.00.
The fee for the bonds or similar indebtedness shall be due and payable upon the
occurrence of the Closing.
2. If Debt Is Not Issued. In the event that the AD is formed and debt is not issued for
any reason, Counsel shall be paid a fee of $5,000 for all services rendered with
respect to the formation of the AD. The fee shall be due and payable upon invoice
from Counsel, which may be transmitted to the City following a determination that
debt will not be issued.
Costs and Expenses. In addition to the foregoing, all costs and expenses reasonably
incurred in connection with the proceedings to form the AD are to be billed to, and
payable by, City. Costs and expenses will be billed at cost, except the expenses stated
below will be billed as follows:
Photocopying: $0.10 per page
Mileage: IRS Rate - (unless over one -half hour and billed
hourly)
Facsimile: $0.10 per page (sending only)
Computer Research: Cost, plus 10%
Transcript Preparation: Not to exceed $75 per transcript
Bond Preparation: Not to exceed $300 per series of bonds
Costs and expenses incurred in connection with the proceedings to form the AD shall
be due and payable at the time the fee for the services is due and payable and shall be
payable solely from the proceeds of the first issuance of bonds or similar
indebtedness, collections from the Assessment District, or any combination thereof.
Expenses incurred in connection with the issuance of bonds or similar indebtedness
shall be due and payable at the time of the Closing of the issue for which such
expenses were incurred and shall be payable from the proceeds of the issue.
SECTION 4. Limitation of Aereement. Counsel's services under this agreement are limited to
those expressly set forth in Section 2 above. Among other things, the scope of services does not include: (a)
preparing requests for tax rulings from the Internal Revenue Service, or no action letters from the Securities
and Exchange Commission; (b) except as described in Section 2 above, assisting in the preparation or review
of an official statement or other disclosure document with respect to any series of bonds, or performing an
independent investigation to determine the accuracy, completeness or sufficiency of any such document or
rendering advice that the official statement or other disclosure document does not contain any untrue statement
of a material fact or omit to state a material fact necessary to make the statements contained therein, in light of
the circumstances under which they were made, not misleading; (c) preparing blue sky or investment surveys
with respect to any series of bonds; (d) making an investigation or expressing any view as to the
creditworthiness of the bonds; (e) representing the City in Internal Revenue Service examinations or inquiries,
or Securities and Exchange Commission investigations; (f) after Closing of any series of bonds, providing the
City continuing advice concerning any actions necessary to assure that interest paid on the bonds will continue
to be excludable from gross income for federal income tax purposes.
SECTION 5. Additional Services. Upon written request of the City, Counsel will provide legal
services related to certain appurtenant legal matters, including, but not limited to, the following: (a) preparation
of a preliminary official statement and a final official statement; (b) litigation challenging the validity of (i) the
proceedings to form the AD, to authorize the levy of special assessments or to issue bonds or similar
indebtedness or (ii) the bonds or similar indebtedness; (c) ongoing review and advice regarding the City's
compliance with any applicable continuing disclosure agreement; and (d) such other services as the City and
Counsel should agree.
Counsel, if requested by the City, will prepare a preliminary official statement and a final official
statement for a fee of $5,000, plus the cost of printing and delivery. Counsel will perform any other services for
a fee to be mutually agreed upon before any work is actually performed.
SECTION 6. Conflicts. Counsel hereby states that Counsel does not represent clients with adverse
interests to the City with respect to any matter within the scope of services to be provided under this agreement.
City acknowledges that Counsel represents or has represented many public agencies and, occasionally,
underwriters and other entities, and City understands the possibility that during the time of this agreement, one
or more of Counsel's present or future clients may have transactions with the City. City also understands the
possibility that Counsel may be asked to represent, in an unrelated matter, one or more of the entities involved
in the matters contemplated by this agreement. Counsel does not believe that such representation, if it occurs,
will adversely affect Counsel's ability to represent the City as provided in this agreement, either because the
matters will be sufficiently different from the matters contemplated by this agreement so as to make the
representations not adverse to Counsel's representation of the City or because the potential for such adversity is
remote or minor and outweighed by the consideration that it is unlikely that advice given to the other client will
be relevant to any aspect of the matters contemplated by this agreement. Execution of this agreement signifies
the City's consent to Counsel's representation of others consistent with the circumstances described in this
paragraph. Counsel hereby agrees to inform City in advance of any potential representation Counsel plans to
undertake on behalf of other parties or entities involved in the matters contemplated by this agreement.
SECTION 7. Terminat ion. Either party may terminate this Agreementby giving seven (7) calendar
days written notice thereof to the other party.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed on the day and year
first hereinabove written.
City of Newport Beach
Mayor, for the City of Newport Beach
Robert E. Hessell
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Approved as to form:
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City Attorney