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Home My WebLink About05 - Assessment District 13February 14, 2017 Agenda Item No. 5 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: David A. Webb, Public Works Director - 949-644-3311, dawebb@newportbeachca.gov PREPARED BY: Michael J. Sinacori, Assistant City Engineer, msinacori@newportbeachea.gov PHONE: 949-644-3342 TITLE: Petition Certification and Request for Funding for Proposed Assessment District No. 113 to Underground Overhead Utilities for West Balboa Island ABSTRACT: Residents within an 18 -block area of West Balboa Island have now submitted a Petition to the City of Newport Beach signed by at least 60 percent of the affected property owners requesting formation of Underground Utility Assessment District Number 113. The next step in the assessment district process would be for the City to advance funds to retain an assessment engineer to prepare an Engineer's Report and to circulate ballots for a property owner vote on the assessment. Staff will assist the process by developing, and soliciting a property owner vote in the coming months to be based on a conservative cost estimate developed at the completion of the schematic level design. RECOMMENDATION: a) Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15302(d) (conversion of overhead electric utility distribution system facilities to underground including connection to existing overhead electric utility distribution lines where the surface is restored to the condition existing prior to the undergrounding), b) Adopt Resolution No. 2017-5, A Resolution of the City Council of the City of Newport Beach, California, Accepting Petition of Assessment District No. 913; and c) Approve Budget Amendment No. 17BA-022 appropriating $125,000.00 from the Assessment District No. 113 unappropriated Fund Balance to Account No. 66302- 941006 (Assessment District 113 Engineering Services). 5-1 Petition Certification and Request for Funding for Proposed Assessment District No. 113 to Underground Overhead Utilities for West Balboa Island February 14, 2017 Page 2 FUNDING REQUIREMENTS: Upon approval of the Budget Amendment, sufficient funding is available to complete this task. The following fund will be expensed: Account Description Account No. Expensed to Date Estimated Total Cost AD 113 Assessment Engineering 66302-941006 $30,800 $125,000 Staff estimates preliminary design engineering costs to total $125,000.00 for this Assessment District. Costs incurred to date amount to $30,800.00. In the event that formation of the District is successful, these costs will be reimbursed by cash contributions and bond proceeds from property owners within the District. If the District fails to be formed, funds advanced for preliminary work cannot be recovered from the proposed district property owners. In such case, the General Fund will cover the advance used for preliminary formation costs. DISCUSSION: The property owners of Proposed Underground Assessment District No. 113 ("AD 113") have submitted a Petition to the City requesting a Special Assessment District be formed, pending approval of a district wide vote, to finance the undergrounding of overhead utilities within the proposed district. The boundaries of the proposed AD 113 are shown on Attachment A. One of the initial steps in the District formation process is the circulation of the Petition for Special Assessment Proceedings. Proponents of AD 113 circulated the Petition to property owners within the proposed district and have now submitted the petition signatures to the City. The submitted signatures represent just over 60 percent of the assessable land within the proposed District. The City's guidelines require a minimum of 60 percent in favor of the District in order to proceed with the formation of a District. PENCO Engineering, Inc. has now reviewed and certified that owners representing over 60 percent of the assessable property within proposed AD 113 had signed the Petition in support of undergrounding overhead utilities. Staff is proposing that the expedited formation process be utilized for this District that has been done for the four recently approved districts (AD -111, 116, 116b and 117). This process reduces the financial risk to the City and builds on the momentum that has occurred during the signature gathering time for the Petition. The process proposed will be as follows: City staff retains an Assessment Engineer to prepare the Engineer's Report and prepare ballots for the property owners to vote on the undergrounding proposal based on a conservative cost estimate developed at the completion of the schematic level design rather than waiting for the completion of all the necessary utility company design work (which has been ranging around 18-24 months). 5-2 Petition Certification and Request for Funding for Proposed Assessment District No. 113 to Underground Overhead Utilities for West Balboa Island February 14, 2017 Page 3 If the vote for AD 113 is successful, with formation completed, the City will then direct final utility design. It is estimated to take approximately two years after a successful early vote to complete the design and to bid the work. If the vote for AD 113 is unsuccessful, the City will stop all further work and not incur additional design costs. As shown on the District 113 boundary map, the Carol Beek Community Center/Balboa Island Park is within the District 113 boundary. For the purposes of the Petition certification, the area of the park is a part of the 60 percent petition calculation. City Council Policy L-28 discusses the assessment and voting process for City owned land such as Parks. Per the policy, City Council will have the discretion on a case-by-case basis to either vote for an assessment, against an assessment or not to vote. In the future, when staff brings forward the assessment district proceedings, which includes the approval of the assessment engineer's report and setting of the protest hearing, City Council will determine how to vote for its City -owned land. At that time, costs to underground the Park will be presented for consideration. Regardless of a City vote, if the Assessment District is approved through a majority vote, the City would be required to financially participate for its share of the undergrounding associated with the Park. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15302(d) (conversion of overhead electric utility distribution system facilities to underground including connection to existing overhead electric utility distribution lines where the surface is restored to the condition existing prior to the undergrounding). NOTICING - The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENTS: Attachment A — Proposed Assessment District Boundary Map Attachment B — Resolution No. 2017-11 -Accepting Petition and Determining Sufficiency thereof for Proposed Assessment District No. 113 Attachment C — Budget Amendment 5-3 �r - b N c^'n cNo cn 145 re 1�°IQ �O I 38 32 33 34 35 36 37 39 40 41 42 0 O 0 170> S 30 31 002 44 45 28 29 201 77 2711 165 164 227 22 46 47 OQ^0 O� 15 � 2p 2j 199 0 � 163 48 � D°� Q � ♦ 9 `V 166 2 49 O �QQ 14 03 2p J 2' 79 22 162 115 229114 0 50 ^ -. ti O 700 O 1sa 167 2j 22 0 s1 sz �° ^� _ M � o co ^O 04 J 20 % \v ° 161 116 2 2 O 53 Q° O CD O O 2 8 0 �J 2% 20 54 ° CO fps 27 OS 22p 197 168 2JS 278 16a 117 2 22 113 � 03 6 196 169 2 J 2' 2s cQ 0 62 55 s6 s7 LU z6 2 20 73 Q' 6 1 ss 118 2 �j 22 sa 112 709 A Oj 20 11 1ss 170 277 2711 1sa „s 63 2u,3 206 328 Q 321 25 �/Q 2 194 171 2 2' 7 Jv 111 64 2 13 O6 200 OJ 2 157 120 2' 22 37 / S 61 59 118 24 �° ' 193 17 2p) 270 156 121 2 9 22 2 110 ss 229 IcC/' 2�2 60 320 319 77' Rs 192 173 2p 208 7) ° 109 66 22 �` 3o 0 ch 120 z3 1 08 7 S 1 ss , 22 2' J 2 316 317 I 22 09 '' 79 '2 174 2013 206 154 123 2 271 2' � 108 67 228 � 228 ` 3J 124 O 2p 20 73 6 107 6a 2 22 314 315 1 21 10 771 Q '78 111 7 2 113 124 277 2711 106 69 2 23 / 22 6 233 i 17 13� v 7 02 , s2 125 2 2' 27 20 211 '7u' �QP'' 76 , 90 , 7s 2po 151 126 20 °9 2' 279 / 2 222 22 L E G E N D 132 77 11 199 171 '2 i ° 104 71 2' 2 2p 7 36 19 ' 772 1aa 177 ' s Iso ,27 los Qv 2°8 103 72 27 , 22�� ; POWER POLE TO BE REMOVED 1 18 ' O O 23 '2 128 203 Q�Q' 2°6 102 73 2� S 2, 2 22s � GUY WIRE TO BE REMOVED 70 1a7 ,7a 1k°�� 17 7p6'°8 ,s6 179 7792' �t�,� 722 149 (/ 207 2p2O� 1°1 74 277 276 2 223 �� POWER POLE TO REMAIN IN PLACE las 180 T, Q�" 72p 1a0 121 2 2 i0° 75 209�'9 , 27 pQ ;I— — GUY WIRE TO REMAIN IN PLACE 16 1a4 181 Ts 778 1470 1300 ' Oo 99 7620� 207 T2 2 271 2 NEW RISER POLE 182 773 776' , 46 , 3, 7 29 98 77 los 20a '57,9 `••••••••••••••••••••••••••••••••• OVERHEAD UTILITY GUY WIRE TO REMAIN rt '83 ',, '711 ,a5 132 2� '3 78 203 / 206 2, 7s 2, POWER LINE TO BE REMOVED o° 14O 70� 772 ,44 ,33 721 7 ° ° / 2og 3 6 — — POWER LINE TO REMAIN o0 13 70 ,430 ,34 0 ' 723 '2 26 97 2�°27� �'9°9e 2'' 2275, — — ASSESSMENT DISTRICT AREA BOUNDARY 12 J� '08 14 135 2' 7 96 79 2 �� 2 ON PARCEL '°6 ,4, ,36 ''9 7 22 95 80 '33 �2 2°� �i 2'° OFF-SITE PARCELS 7') J� 2p 94 a, '0 I los �J 208 10 1ao 138137 7's Jl�j ' ''8 s3 az '29 ' /°^ / 2 203 P 2 2°6 PARCELS: 215 o°° O 139 7 '77? Q''' 76 92 e3 72) 77,023�0`' °' 2p °,` DISTANCE: 8860 LF 707 77 91 721 7283e 272 °° 2 • POWER POLES TO BE REMOVED: 46 7 > �QQ`77p 2 90 726 q 317-20, NEW RISER POLES: 2 ° Q '°3 0 'O6 s7 N.T.S. rb PENCIDENG Client Success is Our Success 16842 VON KARMAN AVENUE SUITE 150 IRVINE, CALIFORNIA 92606 (949) 753-8111 Civil Engineering • Planning • Surveying 04/12/2016 39 J ss 779 J�� 72'2Q 117'2 2 7'_ 2 70� cPi� 0 O 2 a5 P 03 0 , '70 CITY OF NEWPORT BEACH ASSESSMENT D IJ I Klu I - 11:5 WEST BALBOA ISLAND 5-4 Attachment B RESOLUTION NO. 2017- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH ACCEPTING PETITION OF ASSESSMENT DISTRICT NO. 113 WHEREAS, the owners of certain real property situated in the City of Newport Beach (the "City") have filed with the City Clerk several signed counterparts of a petition, requesting the implementation of a project for the undergrounding of certain existing, overhead utility facilities, together with appurtenant work and improvements, as described therein, the cost of which is to be specifically assessed against each parcel of land benefiting from such improvements as shown on an exhibit map attached to the petition; and WHEREAS, the petition contains an express waiver of statutory proceedings under the Special Assessment Investigation, Limitation and Majority Protest Act of 1931, as provided in Section 2804 of the Streets and Highways Code of the State of California and satisfies the requirements for instituting proceedings for the conversion of existing overhead electric and communication facilities to underground locations in accordance with Section 5896.5 of the Streets and Highways Code of the State of California; and WHEREAS, the City Clerk has also received a certificate to the effect that the petition has been signed by persons owning lands constituting more than sixty percent (60%) in area of the land subject to assessment within the proposed assessment district; and WHEREAS, this City Council finds that the owners of more than sixty percent (60%) in area of the land proposed to be assessed for the proposed improvements, including the owners of more than five of the subject parcels, have signed such petition and that the petition contains the matters required by Sections 2804 and 2804.5 of the Streets and Highways Code. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The petition, as filed with the City Clerk, is hereby found to be legally sufficient and is accepted. Section 2: The special assessment proceedings shall be undertaken by the terms of the petition, pursuant to the Municipal Improvement Act of 1913 and without further compliance with the Special Assessment Investigation, Limitation and Majority Protest Act of 1931 (commencing with Section 2800 of the Streets and Highways Code). Section 3: This City Council hereby finds and determines that the public interest and convenience will be served by the taking of such proceedings. Section 4: If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City 5-5 Resolution No. 2017 - Page 2 of 3 Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. Section 5: The City Council finds the adoption of this resolution exempt from the California Environmental Quality Act ("CEQA") pursuant to Section 15302(d) (conversion of overhead electric utility distribution system facilities to underground including connection to existing overhead electric utility distribution lines where the surface is restored to the condition existing prior to the undergrounding) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential to have a significant effect on the environment. Section 6: This action is "final" within the meaning of Streets and Highways Code Section 3012. Section 7: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. Section 8: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution. ADOPTED this day of , 20_ Kevin Muldoon, Mayor ATTEST: Leilani I. Brown City Clerk APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Aardn C. Harp City Attorney Attachment: Certificate of Sufficiency of Petition -2- 5-6 CERTIFICATE OF SUFFICIENCY OF PETITION STATE OF CALIFORNIA COUNTY OF ORANCE CITY OF NEWPORT BEACH The undersigned hereby CERTIFIES as follows: That I arra the duly appointed ASSESSMENT ENGINEER of the CITY OF NEWPORT BEACH, CALIFORNIA. That on the I Oh day of January, 2017, I reviewed a Petition for the formation of an Assessment District for certain public works of improvement, together with appurtenances, appurtenant work and acquisition, where necessary, in a special assessment district known and designated as ASSESSMENT DISTRICT NO. 113 (hereinafter referred to as the "Assessment District"), a copy of which is on file in the Office of the City Clerk. The undersigned hereby further specifically certifies as follows: That I caused said Petition to be examined and my examination revealed that said Petition was signed by not less than five (5) owners of assessable land in the proposed Assessment District as shown by the last equalized assessment roll used by the City, owning lands constituting more than fifty percent (50%) of the area of all assessable lands within the proposed Assessment District, all as prescribed by Section 5896.6 of the Streets and Highways Code of the State of California. 2. Said Petition did represent sixty-two and sixty-nine hundredths of a percent (62.69%) of the assessable area of property within the proposed boundaries of the Assessment District. Executed this 10'h day of January, 2017 at Irvine, California. _/Av�� JEFFrqY M. DOOPER, P.E. PENCO ENGINEERING, INC ASSESSMENT ENGINEER CITY OF NEWPORT BEACH STATE OF CALIFORNIA 5-7 ATTACHMENT C City of Ne wport B e a c h BUDGET AMSNDM9N-n 2016-17 BFIFEC T CIN E U CIC E11ARY RUN 0 BALAN C 8: Increase Reveriue Esiimales X InarEmSE1 ExpEinc ilunEi Arlprapniallions AND Tnandffl BuddElt Arprapniallioris SOU IAC E: ilram existing tuc gel apprarpialians Iram acc ilianal ElslimalEld nEivEinuEls X Iram unarlpnorinialEid func t alanae EXRLANAIIION: NC. BA- •17113A-CIZI AMOUNT: $121%clao.cla Iricnea.sEI in Buc g(daq Rund Balanae DEiaiease in Bucgeiar)l Rund BalarlCEI X I cl Elffeci an Budgellary flunc BalanaEi This budgel amEiricmentis nEiquEislEic to r1ravicefar111efallowing: To auihculiae ari( appropriate the amaunt of 91,129,00a fan A 11 kmmalicn casts la caniinue the "onk assaciElWd "ith A ssessment Disiuiai #1,13. The GenE1101 Func will be responsible fan IhEI casIls inaunuec if proiectibnmalicn is rias suaaEissful. ACCOUN111NG ENTRY: BUDG ETZ RY FUND BALVAICE Rund Cldiecli DElscuipIIion EIEU 3acloao A ssEissmerit Distni(It #113 -Flu n( Balance REVE3NIUE LEIS TAMATE,I flunc/Division Acacuni EIAPEIND I71URE APPFICPFIEAPC NS Cnq Nuniten E1E13(I2 CLiElcl Number 41a(IEI SignEld: !6 4C/ runaricial"Approval: Finance DIIIEIaloll Ate. Ac miriisillrative Appraval: City Manam SignEld: SignEld: Dascniolian Des(wiplion AssElssmEiril Disinicl 013 AD Erigirieeuing Services City Caunail Appnaval: Clily CIEmk Amaunt Debit CnEid i1 9 ,i� 9,aaa.oci i A utomatic $129,CICI(I.CIa Date M