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HomeMy WebLinkAbout17 - Underground Utilities District 81• CITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 1_ February 24, 2004 TO: Mayor and Members of the City Council FROM: Public Works Department Patrick Arciniega, Associate Engineer 949 - 644 -3311 parciniega @city.newport - beach.ca.us SUBJECT: UNDERGROUNDING UTILITIES IN PROPOSED ASSESSMENT DISTRICT NO. 81 RIVER AVENUE AND CHANNEL PLACE AND DESIGNATION OF THIS AREA AS AN UNDERGROUND UTILITIES DISTRICT RECOMMENDATIONS: 1. Open public hearing on the formation of Assessment District No. B1. 2. Hear testimony from those who desire to speak. • 3. Close the public hearing. 4. Count ballots. 5. If more 'Yes' votes than 'No' votes have been submitted, and if it is desired to form the District, take the following actions: a. Adopt Resolution No. 2004 - _ approving contracts for utility improvements. b. Adopt Resolution No. 2004 - _ declaring the results of the ballot tabulation, confirming the assessment, ordering the acquisition of improvement; approving the Assessment Engineer's Report, and designating the area an Underground Utilities District for Assessment District No. 81 River Avenue and Channel Place. 6. If desired, abandon the proceedings. 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 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 SUBJECT: Undergrounding Utilities In Proposed Assessment District No. 81 River Avenue and Channel Place and Designation of this Area as an Underground Utilities District February 24, 2004 Page 2 Assessment Engineer for preparation of the engineer's report and assistance with • processing the Assessment District. On December 9, 2003, the City Council accepted a preliminary Engineer's Report for proposed Assessment District No. 81, adopted a Resolution of Intention to form the District, and set a public hearing on the Assessment District for February 24, 2004 (see attachment). The location of the proposed Assessment District and overhead facilities to be removed is shown on the attached sketch. Action on the Assessment District will be taken after the public hearing is closed and the ballots are counted. On February 12, 2004, an informal meeting was held at the City Council Chambers to discuss the proposed District. DISCUSSION: The procedure being used is the Municipal Improvement Act of 1913. The project will be financed by municipal bonds over a period of fifteen years. Plans and specifications were prepared by the respective public utilities, which will own and operate the underground facilities being paid for by the Assessment District. The proposed Assessment District will underground all overhead electrical, telephone, and cable TV lines. However, each property owner will be required to underground his or her individual house services. The cost to convert the house services is not a part of the Assessment District and must be contracted separately by the private property owners. • The total cost of the Assessment District is $1,062,983.74, which 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 the City Attorney and the Bond Counsel have determined 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) will require the City of Newport Beach to reimburse 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 bonds, if necessary, to pay SCE within 60 days after SCE notifies the City. 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. 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. SUBJECT: Undergrounding Utilities In Proposed Assessment District No. 81 River Avenue and Channel Place and Designation of this Area as an Underground Utilities District February 24, 2004 Page 3 The estimated assessment without the ITCC Tax component ranges from $16,985.60 to $69,527.71, with the average assessment being $22,978.89. The estimated assessment with the ITCC Tax component ranges from $19,164.37 to $78,446.16, with the average assessment being $25,926.43. Channel Place Park (City owned public property) is included within this Assessment District. The Assessment Basis for the Park is derived by dividing the front footage of utility lines by 30' to determine the total Assessment Units (AU) for this parcel. The Park frontage footage of 184.2 linear feet, divided by 30 results in a total of 6.14 AU's. Since the park receives an electrical service drop only, the assessment amount is based on one - half of the standard assessment for a property receiving a 'full benefit' of two services (electrical and telephone) that are undergrounded. Therefore the total AU value is divided by two for an equivalent value of 3.07 AU's. The Park's Assessment amount including ITCC is $78,446.16. Adoption of these Resolutions will also designate this area as an Underground Utilities District per Chapter 15.32 of the Municipal Code of the City of Newport Beach. Environmental Review: This project qualifies for a Class 2 California Environmental Quality Act (CEQA) exemption under Section 15302, item "d" of the Implementing Guidelines as follows: "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." Public Notice Public Notice for this Public Hearing was mailed out on December 12, 2003, to provide a minimum 45 -day noticing to residents within proposed Assessment District boundary. Prepared by: Submitted Patrick L. Arciniega Project Engineer CY `Stephen,G. Badum Public Works Director Attachments: Resolution No. 2004 - `Approving Contracts for Utility Improvements Resolution No. 2004 -_ Declaring Results of Ballot Tabulation December 9, 2003 Council Report Location Map Engineer's Report SBC Agreement Edison Agreement CITY OF NEWPORT BEACH RESOLUTION NO. 2004 - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH APPROVING CONTRACTS FOR UTILITY IMPROVEMENTS FOR ASSESSMENT DISTRICT NO. 81 (RIVER AVENUE) WHEREAS, this City Council has, 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, by adoption of its Resolution of Intention, declared its intention to order the installation of certain works of improvement, together with appurtenances, in a special assessment district designated as Assessment District No. 81 (River Avenue) (hereinafter referred to as the "Assessment District'); and WHEREAS, Streets and Highways Code Section 10110 specifies that before ordering any improvements which are to be owned, managed or controlled by another public agency or public utility, an agreement is required setting forth the terms and conditions of the installation, ownership, management and financing of the improvements; and WHEREAS, at this time, contracts have been submitted and reviewed pursuant to the authorization of Section 10110 of said Streets and Highways Code. NOW, THEREFORE, it is hereby determined and resolved as follows: SECTION 1: That the above recitals are all true and correct. • SECTION 2. That the agreements, herewith submitted, relating to the installation of certain improvement facilities that will be under the ownership, management and control of other public agencies or regulated public utilities, are hereby submitted and herewith approved for execution and delivery. The agreements are the following: Southern California Edison - utility agreement SBC - letter agreement SECTION 3. That immediately upon execution, conformed copies of said contracts shall be transmitted to the offices of the respective public agency or utility company, together with a copy of this Resolution. PASSED, APPROVED, and ADOPTED this 24th day of February 2004. AYES: NOES: ABSENT: ABSTAIN: ATTEST: 1 Mayor • RESOLUTION NO. 2004 RESOLUTION DECLARING THE RESULTS OF THE BALLOT TABULATION, APPROVING THE ASSESSMENT ENGINEER'S REPORT, CONFIRMING ASSESSMENTS FOR ASSESSMENT DISTRICT NO. 81 (RIVER AVENUE), ORDERING THE ACQUISITION OF IMPROVEMENTS, AND DESINATING THE AREA AN UNDERGROUND UTILITIES DISTRICT WHEREAS, this City Council has previously adopted its Resolution of Intention and initiated proceedings for the acquisition of certain publicworks of improvement, namely, the conversion of certain overhead electrical and communication facilities to underground locations, together with appurtenances and appurtenant work, in a special assessment district designated as Assessment District No. 81 (River Avenue) (hereinafter referred to as the "Assessment District ") 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 "Improvement Act "); and WHEREAS, this City Council finds that the public necessity, health, safety and welfare requires the removal of poles, overhead wires and associated overhead structures within the area of the Assessment District and the underground installation of wires and facilities for supplying electric, communication or similar or associated service; and WHEREAS, this City Council further finds that the 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; and WHEREAS, the Report, as preliminarily approved, contained all the matters and items called for pursuant to the provisions of the Improvement Act, Article XIIID 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 Improvement Act, Article XI I ID, and the Implementation Act are referred to herein collectively as the "Assessment Law'), including the following: 1. Plans and specifications of the improvements proposed to be acquired 2. Estimate of cost of acquisition of the improvements proposed to be acquired 3. Diagram of Assessment District identifying all parcels that will receive a special benefit conferred upon them from the acquisition of the improvements and upon which an assessment is proposed to be imposed 4. An assessment proportionate to the special benefit to be conferred upon each parcel to be assessed 5. A description of the works of improvement proposed to be acquired 6. An estimate of the time required to complete the conversion WHEREAS, notices of a public hearing, accompanied by ballot materials, were mailed in the time, form and manner required by the Assessment Law and as evidenced by a certificate on file with the transcript of these proceedings, a full public hearing on the • improvements and assessments was held on the date hereof, and at the conclusion of the public hearing all ballots submitted pursuant to the Assessment Law were tabulated, all in the manner provided by the Assessment Law; and WHEREAS, at this time this City Council determines that the ballots received by the City in favor of the proposed assessment and weighted as required by the Assessment Law exceeded the ballots received in opposition to the assessment and similarly weighted and, therefore, a majority protest does not exist; and WHEREAS, this legislative body now desires to approve, confirm and order the improvements and assessments as set forth in the Assessment Engineer's Report as submitted. NOW, THEREFORE, the City Council of the City of Newport Beach does hereby determine, order, and resolve as follows: RECITALS SECTION 1. The above recitals are all true and correct. WRITTEN PROTESTS SECTION 2. All protests and objections of every kind and nature submitted pursuant to the Improvement Act are hereby overruled and denied. BALLOT TABULATION PURSUANT TO ARTICLE MID SECTION 3. The ballots submitted pursuant to the Assessment Law in favor of the assessment and weighted as required by the Assessment Law exceed the ballots submitted in opposition to the assessment and similarly weighted, and it is thereby determined that a majority protest pursuant to the Assessment Law does not exist. SPECIAL BENEFITS RECEIVED SECTION 4. Based upon the Assessment Engineer's Report and the testimony and other evidence received at the public hearing, it is hereby determined that: A. All assessed properties within the boundaries of the Assessment District receive a special benefit from the works of improvement as proposed to be acquired for said Assessment District; B. The proportionate special benefit derived by each parcel proposed to be assessed has been determined in relationship to the entirely of the cost of the acquisition of the works of Improvement; C. No assessment is proposed to be imposed on any parcel that exceeds the reasonable cost of the proportional special benefit to be conferred on such parcel; D. Only special benefits have been assessed and all parcels receiving a special benefit are to be assessed. PUBLIC INTEREST AND CONVENIENCE SECTION 5. The public interest and convenience require the acquisition of the • improvements, and therefore it is hereby ordered that the improvements be acquired, together with appurtenances and appurtenant work in connection therewith, in said 2 Assessment District, as set forth in the Resolution of Intention previously adopted and as set forth in the Assessment Engineer's Report presented and considered at the public hearing. ASSESSMENT ENGINEER'S REPORT SECTION 6. The Assessment Engineer's Report, as now submitted, updated and amended, is hereby approved and said Report shall stand as the report as required by the Assessment Law for all future proceedings for this Assessment District. CONFIRMATION OF ASSESSMENT SECTION 7. The assessments, as now filed in the Assessment Engineer's Report and diagram for the improvements to be acquired, together with appurtenances and appurtenant work in connection therewith, are hereby confirmed. The assessments contained in the Assessment Engineer's Report are hereby levied and approved as follows: A. The final assessments to represent the costs and expenses to finance acquisition of the works of improvement, including the portion for possible federal tax liability, as authorized by these proceedings and the Assessment Law. B. The annual assessment to pay for administrative costs in an amount not to exceed the maximum annual assessment as set forth in the Assessment Engineer's Report. RECORDATION OF ASSESSMENT SECTION 8. The City Clerk shall forthwith deliver to the Superintendent of Streets the assessment, together with the diagram attached thereto and made a part thereof, as confirmed, with a certificate of such confirmation attached and the date thereof; and that said Superintendent of Streets shall then immediately record said diagram and assessment in his Office in a suitable book to be kept for that purpose and attach thereto his certificate of the date of such recording. COUNTY RECORDER NOTICE SECTION 9. Upon confirmation of the assessments and recordation of the assessment roll and diagram, a certified copy of the assessment diagram shall be filed in the Office of the County Recorder. Immediately thereafter, a copy of the notice of assessment shall be recorded in the Office of the County Recorder in the manner and form as set forth by law and specifically Section 3114 of the Streets and Highways Code of the State of California. MAILED NOTICE SECTION 10. Upon recordation of the diagram and assessment, a notice shall be mailed to each owner of real property within the Assessment District at the owner's last known address, as said address appears on the last equalized tax rolls of the County, said notice to set forth a statement containing a designation of the property assessed, as well 3 as the amount of the final confirmed assessment, and further indicating that bonds will be issued pursuant to the "Improvement Bond Act of 1915 ". PUBLICATION SECTION 11. Notice shall also be given by publication in the designated legal newspaper, said notice setting forth the amount of the final assessment and indicating that said assessment is now due and payable, and further indicating that if said assessment is not paid within the allowed thirty (30) day cash collection period, bonds shall be issued as authorized by law. ASSESSMENT COLLECTION SECTION 12. The County Auditor is hereby authorized and directed, in accordance with the provisions of Section 8682 of the Streets and Highways Code of the State of California, to enter into the assessment roll on which property taxes will next become due, opposite each lot or parcel of land affected, in a space marked "public improvement assessment' or by other suitable designation, the next and several installments of such assessment coming due during the ensuing fiscal year covered by the assessment roll and that said entry then shall be made each year during the life of the bonds for the proceedings for the above - referenced Assessment District. This authorization is continual until ail assessment obligations have been discharged and the bonds terminated. As an alternate, and when determined to be in the best interests for bondholders of the Assessment District, this legislative body may, by Resolution, designate an official other than the County Tax Collector to collect and maintain records of the collection of the assessments, including a procedure other than the normal property tax collection procedure. In accordance with the provisions of Section 8685 of the Streets and Highways Code, if any lot or parcel of land affected by any assessment is not separately assessed on the tax roll so that the installment of the assessment to be collected can be conveniently entered thereon, then the Auditor shall enter on the roll a description of the lot or parcel affected, with the name of the owners, if known, but otherwise the owners may be described as "unknown owners ", and extend the proper installment opposite the same. ASSESSMENT VERIFICATION STATEMENT SECTION 13. The County Auditor is directed, within 90 days after any special assessment installment becomes delinquent, to render and submit a detailed report showing the amounts of the installments, interest, penalties and percentages so collected, for the preceding term and installment date, and from what property collected, and further identify any properties which are delinquent and the amount and length of time for said delinquency, and further set forth a statement of percentages retained for the expenses of making such collections. This direction is specifically made pursuant to the authorization of Section 8683 of the Streets and Highways Code of the State of California. ASSESSMENT DISTRICT FUNDS SECTION 14. The Treasurer is hereby authorized at this time, if not previously rd • done, to establish the following funds as necessary for the payment of costs and expenses and administration of the proceedings for this Assessment District: A. Improvement Fund: All monies received from cash collections, proceeds from the sale of bonds, and applicable contributions shall be placed into the Improvement Fund. B. Reserve Fund: All monies as designated to assist in the payment of delinquencies shall be placed into the Reserve Fund. C. Redemption Fund: All monies received from the payment of assessments shall be placed in the Redemption Fund. For particulars as to the administration and handling of the Funds, the specific terms and conditions shall be set forth in a Bond Indenture to be approved by the subsequent adoption of a Resolution Authorizing the Issuance of Bonds. UNDERGROUND UTILITIES DISTRICT DESIGNATION SECTION 15. The Assessment District area is hereby designated an underground utilities district pursuant to Chapter 15.32 of the Code of Ordinances of the City of Newport Beach. A description of the area included within the underground utilities district is contained in the Assessment Engineer's Report and incorporated herein bythis reference. PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of . the City of Newport Beach, held on the 24th day of February, 2004, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: City Clerk �J 5 Mayor CITY 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. 61 River Avenue From Channel Place to 36th 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 36th 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 • Public Utilities Begin to Remove Overhead February 2005 • 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 0 E 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, legal services. The fee is approximately, $20,000.00 in accordance the Agreement. This fee will be paid through the Assessment District. Environmental Review: to provide these with the terms of 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: 9 4 � /4� 2, Patr' L. Arcinia4a Associate Engineer Attachments: Submitted by: XI f6phe . 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. 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L -' L rt o 4 N I Ir c< Ux • i I 0 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: February 24, 2004 0 ENGINEER'S "REPORT" CITY OF NEWPORT BEACH ASSESSMENT DISTRICT NO. 81 (River Avenue front Channel Place to 396 Street and Channel Place front Balboa Boulevard to 43' 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 0 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. 2003 -71, 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: 1UNT1491 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. N:• 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 2¢ z1X day of /1/O(/U°f976P�' , 20 �• GFB- FRIEDRICH & ASSOC.. INC. No.C27861 Exp. 3/31 /06 * , CIVIL A. F ED CH, .E. 4- a, CAU`' ASSESSMENT ENGINEER • 2 0 Preliminary Approval by the CIT-y COUNCIL of the CITY OF NEWPORT BEACH, California, on the I.. day of L. 'i. i,. 1-'1' i' ,, '. , 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_ 3 CITY CLERK CITY OF NEWPORT BEACH STATE OF CALIFORNIA ENGINEER'S "REPORT" . PART I 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. • rd • E ENGINEER'S "REPORT" PART 11 CITY OF NEWPORT BEACH ASSESSMENT DISTRICT NO. 81 (River Avenue from Chanel Place to 38th Street and Channel Place from Balboa Boulevard to 43rd Street) COST F. TIMAT Preliminary Estimate Costs without with Final SCE ITCC Tax SCE IT Tax * ** Assessment A. CONSTRUCTION COSTS 1. Southern California Edison SCE Relocation Cost Invoice Underground Structures and Conduit Installation $345,709.00 $345,709.00 $345,709.00 Underground Cable and Equipment Installation $98,732.00 $98,732.00 $98,732.00 SCE ITCC Tax ** $97,777.02 $97,777.02 Subtotal, Southern California Edison Costs: Without SCE ITCC Tax $444,441.00 With SCE ITCC Tax $542,218.02 $542,218.02 2. SBC Contractor Final Cost Estimate $225,787.00 $225,787.00 $225,787.00 Subtotal, SBC Costs 5225.787.00 $225.787.00 S225J87.00 Subtotal, Construction $670,228.00 $768,005.02 $768,005.02 Construction Contingencies 67.022.80 76.800.50 76.800.50 TOTAL CONSTRUCTION COSTS $737,250.80 $844,805.52 $844,805.52 B. INCIDENTAL COSTS 1. Design Engineering (SCE) $15,000.00 $15,000.00 $15,000.00 2. Design Engineering (SBC) 13,000.00 13,000.00 13,000.00 3. Assessment Engineering 17,000.00 17,000.00 17,000.00 4. Construction Inspection 6,600.00 6,600.00 6,600.00 5. City Administration 10,000.00 10,000.00 10,000.00 6. Printing, Advertising, Notices 4,000.00 4,000.00 4,000.00 7. Filing Fees 650.00 650.00 650.00 8. Bond Counsel 20,000.00 20,000.00 20,000.00 9. Paying Agent 4,000.00 4,000.00 4,000.00 10. Contingencies 11.000 00 11.000.00 11_0,04,04 Subtotal,Incidentals $101,250.00 $101,250.00 $101,250.00 Subtotal, Construction & Incidentals $838,500.80 $946,055.52 $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 38th Street and Channel Place from Balboa Boulevard to 43rd Street) Costs 5 Subtotal Forward, Construction & Incidentals C. FINANCING COSTS 1. Bond Discount (2 %) 2. Bond Reserve (5 %) 3. Capitalized Interest (4 %) Subtotal, Financing Costs TOTAL DISTRICT COSTS D. CASH CONTRIBUTION E. BALANCE TO ASSESSMENT SCE ITCC Tax I SCE ITCC Tax * ** $838,500.80 1 $946,055.52 $18,842.69 $21,259.67 47,106.73 53,149.19 37,685.38 42,519.35 $103,634.80 $116,928.21 $942,135.60 $1,062,983.73 Sam so.00 $942,134.60 $1,062,983.74 Final $946,055.52 $21,259.67 53,149.19 42,519.35 $116,928.21 $1,062,983.73 $0.00 $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. 2 0 ENGINEER'S "REPORT" PART III CITY OF NEWPORT BEACH ASSESSMENT DISTRICT NO. 81 (River Avenue from 38th Street to Channel Place and Channel Place fron Balboa Boulevard to 43rd Street) ASSESSMENT ROLL WHEREAS, on December 9, 2003, 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. 2003 -71, 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 0 U Balance to Assessment: $ 1,062,983.74 $ 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 E AS PRELIMINARILY AS APPROVED CONFIRMED Estimated Cost of Construction (including ITCC) $ 844,805.52 $ 844,805.52 Estimated Incidental Costs and Expenses: $ 101,250.00 $ 101,250.00 Estimated Financing (Bond) Costs: $ 116,928.21 $ 116,928.21 Estimated Total Cost: $ 1,062,983.74 $ 1,062,983.74 Estimated Contribution: $ 0.00 $ 0.00 Balance to Assessment: $ 1,062,983.74 $ 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. 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Estimated Balance to Assessment $1,062,984 B. Unpaid Special Assessments 0.00 Total A & B $1,062,984 C. True Value of Parcels $16,395,842 ** Averabe 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. DATED: IVOA[ Bjl' ber .9V , 20jo . 10 GFB- FRIEDRICH & ASSOC., INC. HN A. F IED H, P.E, ASSESSMENT ENGINEER 0 • ENGINEER'S "REPORT" EXHIBIT "A" CITY OF NEWPORT BEACH ASSESSMENT DISTRICT NO. 81 (River Avenue from 38th Street to Channel Place and Charnel 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. 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 Assessment Basis "Standard" Residence /Duplex /Triplex 1.0 AU /30 foot lot 2 Residential Room Rental /Apartment Units 1.0 AU /30 foot lot 3 Residential Room Rental /Apartment Units 1.0 AU /30 foot lot Condominium Unit 0.8 AU /30 foot lot /unit Municipal Park (Channel Place Park) Front Footage of (Since the park receives an electrical service drop undergrounded utility only, the assessment will be based on one -half of lines divided by 30 feet the front footage) equals equivalent AU's Street Right -of -way Lots (2 each) 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 E i 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. 0 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. DATED: 20 GFB- FRIEDRICH & ASSOC., INC. . �• �• •.. THIS SPACE INTENTIONALLY LEFT BLANK 17J 14 1, ),4 Vannc M - 441 -Orss 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 theg�Vj_ day of Alaie,x b ,-i , 20 03 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 15 SUPERINTENDENT OF STREETS CITY OF NEWPORT BEACH STATE OF CALIFORNIA 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. r1 16 E ENGINEER'S "REPORT" PART V 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 FN W 2 ' N y ti W xqn 0 ifi��b FTIF: F1 F- I N110 LJEJ w oig� �s a L_ -__ L ID, ra _ 7- Q L oz 7 4 pj 1 - I r r— Z 4 I--! - -J @ 1 L r 5o a � r o u \� L v z W LL L_ -•_� I L r oW m p \�r z fC o N wo j cc W u i o(] No Foa 6I w m a O W W g o �o LLLL2 ,9 4, •`� i L z ox O Q UI \\ \ r ye o. ,, t Y2 w U. 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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. IN U 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) 0 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 ", beine 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 0S ' day of /f/ose%a,�L , 20 0-3 , at Newport .Beach, California. STEP N G. BADUM, P.E. SU RINTENDENT OF STREETS CITY OF NEWPORT BEACH STATE OF CALIFORNIA 20 0 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 fi-onr Balboa Boulevard to 93rd 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 Zoe(, 71V day of //CFK-10-rn 120 03 , at Newport Beach, California. STEP ENS BADUM, P.E. DIRECTOR OF PUBLIC WORKS CITY OF NEWPORT BEACH STATE OF CALIFORNIA 21 Exhibit " C " Z� Y'-V �w Gov. Cady Lel c CITY OF. - ENA'PORT BEa "fH POSTED F I L E D 3300 Newport Boulevard - P.O. Box 1765 JAN 01 2003 NewportBeach, CA92655 -5915 JAN 0.92003 (714) 644-3200 Iy "p-= -;kF NOTICE OF EXEMPTION _By, _Vcd.B!OJDL.INicyIMC!cRK- Ve - To: From: City of Newport Beach ❑ Ounce 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) Counry Clerk, County of Orange Public Services Division P.O. Box 238 Date received for filing at OPR: Santa Ana, CA 92702 i AameofProject: Assessment District No. 81. Project Location: Ricer .4)0771 (6, A7et1 prn•t Beach, CA Specific: From Channel Place to 38`x' Street, including Channel Place ProjectLocarion -00). NexportBeach Project Location- Count): Orange Project Description.- The project consists o` an assessment discict to underground existing overhead utilities. Recorded in official Records, County of Ora Exempt Status: (check one) Tom Daly, Clerk- Recorder 0 Ministerial [Sec. 21080(b)(1);1526S]: l!Ilfll! IIII!liilllIII IIIIIIII !illllilCllll!IIIIII!III!INO FEE 0 Declared Emergenc} [Sec. 21080(b)(3); 15269(z)); 200385000016 08:50am 01/071"L y ��° [ O(')� C.O7; D.DD D.DD D.DD 0.00 0.00 000 0.00 0.00 0 Emergenc Pro c.t Sec. 21080 b ^. 15269 D) c 070 1D 0 0 Categorical Exemption. State type and section number. Cass 2: Replacement and reconstruction; Section 15302. 0 ' Stammry Exempdons. State code number: 0 General Rule [Sec. 15061(b)(3)) Reasons why project is exempt:, The Secretary for Resources has found that conversion of overhead electric utli:v distribution systern facilities to underground locations where the su :ace is resored to the condition nrior to undereroundine does not have a significant effect on the environment. \ame of Public Agency Approving Project: Cin, ofNewoort Beach Date of AppovaL rune of Person or Agency Caming Out Project: 1NTe.vport Beach Public Works Dept. Contact Person: Pa_nck L. Arciniesa Title: Junior En--ine °r S: mature. . II w� Tel.No.9- ^.916^- ^. -'=4% Date: 1:Z, 1 -7•0� Fa-iel: L. 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O00000 0b0obO 0b0Cb0O0 .O0O00000 OOg 0 ovi � j `a 6°9 6°9 6°9 6°9 6°9 6°9 6°9 6°9 6°9 6°9 6°9 6°9 6Q9 6�9 6°9» N b � T— h h N O Q Q �O M� M Q � y Y CO T Q Q Q� M Q N N y ❑ v. . . . v rnooroo— 01 O y t3 — 00 O Q O � tai O M— O\ — SON r in �696r9696`O96`O96M9 in `'`' � 6a096M96r9 .fir va o r r o 0 0 0 0 0 0 0 0 0 0 0 0 0 w O z� OOrt�rt rt t%tN -� —Q � y O\ T N N N N N N N N N N N N N N M M N N N N N N N 0o N N N N N N N D E O ¢Tr ooT Om 'Ir �D rw 0 X ITa z N N N N N M M M M M M M M M M Q ¢ 0 • e 1 Sales Invoice Name: Rule 20B / Assessment Dist. 81 Project Location: River ave / 45th to 38th Newport Beach, CA 92660 Please mail payment to: Southern California Edison Company Attn: Mike Bowon 7333 Bolsa Ave Westminster, CA 92683 Project Description: Overhead to Underground conversion All prices are applicable for a period of 180 days from this date and are subject to change thereafter. • Customer Invoice Information Non - refundable Billing: Structures Underground Cabling & Equipment Total Less Customer Advance i Please Pay This Amount Exempted ITCC (indemnification Letter Required From Customer) October 8, 2003 $ 345,709.00 $ 98,732.00 $ 444,441.00 $ (15,000.00) $ 429,441.00 $ 97,777.02 Order# LE(19) 1423S 3939 E. Coronado St. Anaheim, CA 92807 -1687 APPLICATION and LETTER OF AGENCY FOR CUSTOM WORK September 18, 2003 Order Number: LE(19) 1423S Customer Billing Telephone Number: 949 - 644 -3347 BILL TO: City of Newport Beach Department of Public Works Attn: Mr. Patrick Arciniega 3300 Newport Blvd., Newport Beach, Ca. 92658 -8915 DESCRIPTION OF CUSTOM WORK: This is in response to the City of Newport Beach's request to convert all aerial facilities within Underground Assessment District No. 81 to underground. This district includes River Avenue/ Channel Place from Balboa Blvd. to 38" Street in West Newport. CHARGE FOR CUSTOM WORK: $238,787.00 Applicant requests that SBC act as its agent in performing the above - described custom work on Applicant's behalf. Applicant agrees to pay the charge(s) indicated above for such work. The charge(s) will be computed in accordance with SBC's ordinary accounting practices under the Uniform System of Accounts for Class A telephone companies and will include allocated costs for labor, engineering, materials, transportation, motor vehicles, tool and supply expenses and sundry billings from sub - contractors and suppliers for work and materials related to the job. Applicant agrees to make an advance payment of $225,787.00 prior to commencement of the work. This amount is less the deposit of $13,000.00 received on July 28, 1999. Applicant agrees to pay the contract price as stated above plus any applicable taxes when the work is completed. If the applicant cancels the work prior to completion, Applicant agrees to pay SBC for the costs it has incurred in starting performance under the contract and before being notified to cease only. The price is guaranteed for 180 days from September 18, 2003. If the charges are not accepted within 180 days the order will be cancelled and a new order will need to be placed. The second estimate may be higher than the price that was originally quoted. ACCEPTED FOR CUSTOMER: ACCEPTED FO BC: m Name: Title: Area Mgr (2): ngineering Company: Date: Date: AL w E 0 0 AGREEMENT FOR REPLACEMENT OF OVERHEAD WITH UNDERGROUND DISTRIBUTION FACILITIES . (Installation by Utility) THIS AGREEMENT, made this VT day of DCT9V—Z4L -,20D3 , between SOUTHERN CALIFORNIA EDISON COMPANY, a corporation, hereinafter called "Utility ", and the party or parties whose names are subscribed hereunder as "Applicants ", WITNESSETH: WHEREAS, Applicants have requested Utility, pursuant to Section B. of Utility's Rule No. 20, Replacement of Overhead with Underground Distribution Facilities, to replace Utility's existing overhead with underground distribution facilities at the location or locations in the County of NAM' , State of California, substantially described as follows: lZ1ULC ME li5' Tb .7)�" wed Z-k YGRC4f CI q)fobD and as shown on the map attached hereto and made a part hereof; and WHEREAS, a. It is necessary for all property owners served from Utility's overhead facilities to be removed to agree in writing to perform the wiring changes on owners' premises so that service may be furnished from Utility's underground distribution system in accordance with Utility's rules and that Utility may discontinue Utility's • overhead service upon completion of Utility's underground facilities, or b. Suitable legislation is in effect requiring such property owners to make such necessary wiring changes and authorizing Utility to discontinue Utility's overhead service; and �J WHEREAS, Applicants have requested Utility to furnish and install the pads and vaults for transformers and associated equipment, conduits, ducts, boxes, and electrolier bases and to perform other work related to structures and substructures including breaking of pavement, trenching, backfilling, and repaving required in connection with installation of the underground system; and WHEREAS, Underground service connections to each applicant from Utility's underground distribution system will be installed and maintained as provided in Utility's rules applicable thereto; NOW, THEREFORE, in consideration of the premises, and of the mutual promises and covenants of the parties hereto, hereinafter contained, it is mutually agreed by and between the parties hereto as follows, viz.: 1. Applicants will pay to Utility concurrently with the execution hereof the nonrefundable amount of 5 NXH41, which is the excess, if any, of the estimated costs, including breaking of pavement, trenchin backfilling, and paving required in connection with installation of the underground system, and of the excess, if any, of the estimated costs including transformers, meters, and services, of completing the underground system and building a new equivalent overhead system. The amount contributed by each of said Applicants is shown hereinafter. 2. Utility will complete the undergrounding of said overhead distribution facilities, provided, however, Utility has been granted rights of way therefor satisfactory to and without cost to Utility. SCE CSO 1561 PEV 11101 LP w� cr.�iae � „ry�w wva 3. Said underground distribution facilities will be and will remain the property of Utility. 4. Applicants each agree Applicants will perform necessary wiring changes on Applicants' premises • so that service may be furnished from Utility's underground distribution system in accordance with Utility's rules, and Utility may discontinue Utility's overhead service upon completion of Utility's underground facilities. 5. This contract is subject to the Rules of Utility. 6. This contract shall at all times be subject to such changes or modifications by the Public Utilities Commission of the State of California as said Commission may, from time to time, direct in the exercise of its jurisdiction. above written. IN WITNESS WHEREOF, the parties hereto have executed this agreement on the day and year first SOUTHERN C IFORNIA EDISON COMPANY By — Gg� REG10N OR DIVISION MANAGER NZ[ \WCIC REGION OR DIVISION AMOUNT SIGNATURE OF APPLICANTS ADDRESS CONTRIBUTED Witness Address IFY.III —2— $ 4�N,N41. DD $ TOTAL SH.Iq,Lj41.DD 0 0 • CITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT F nr.* cit� _,��, 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. 0 • 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 • Property Owner Information Meeting • Public Hearing • Public Utilities Commence Work • City Notifies Property Owners to Install Service Connections • Property Owners Complete Conversions • Public Utilities Begin to Remove Overhead Structures • Public Utilities Finish Overhead Structures Removing Poles and December 9, 2003 February 12, 2004 February 24, 2004 September 2004 November 2004 February 2005 April 2005 May 2005 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: C4� la--� Patr' l . Arcinidda Associate Engineer Attachments: Submitted by: i rG. Badum 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 \J • I CHA \ PAj K, LACE z *+oo �� 7x�< � 09 sy off, PACIFIC - COAST HIGHWAY NEWPORT \ \ CHANNEL a bN A //\ \ \yam > �9 °, \ PROPOSED ASSESSMENT DISTRICT #81 UNDERGROUNDING UTILITIES AT: RIVER AVENUE FROM CHANNEL PLACE TO 38TH STREET, INCLUDING CHANNEL PLACE LEGEND: • POLES TO BE REMOVED lip O POLES TO REMAIN IN PLACE OVERHEAD LINES TO BE REMOVED OVERHEAD LINES TO REMAIN IN PLACE 0 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 Engineerof 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 forthe 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 orderto 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 • 0 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 provide forthe 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 for the 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 0 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, together with 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 Engineer's 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 Engineer's 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 bythis 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. 0 2 0 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 otherthan 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 years adjustment. Pursuant to the provisions of the Improvement Act and specifically Streets and Highways Code Section 10603, the Treasurer is hereby designated asthe 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 pursuantto 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. IMPROVEMENTFUND 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 safe 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 Engineers 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 of the 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 5 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 gth day of December, 2003, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: City Clerk Steven Bromberg, Mayor • 0 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 forthe 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 ") forthe 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 XIIID 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 2 • 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, together with the assessment ballot materials, to the record owners of all real property proposed to be assessed. SECTION 6. The City Clerk is hereby further directed to file a copy of the proposed boundary map in the Office of the County Recorder within 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 California. PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Newport Beach, held on the gth day of December, 2003, by the following vote: AYES: NOES: • ABSENT: ABSTAIN: ATTEST: City Clerk 0 Steven Bromberg, Mayor 0 ENGINEER'S REPORT for UTILITY UNDERGROUNDING ASSESSMENT DISTRICT NO. 81 (River Avenue from Channel Place to 381h Street and Channel Place from Balboa Boulevard to 43rd Street) for the CITY OF NEWPORT BEACH Preliminary: December 9, 2003 Confirmed: L 0 ENGINEER'S "REPORT" CITY OF NEWPORT BEACH ASSESSMENT DISTRICT NO. 81 (River Avenue from Channel Place to 39' Street and Channel Place from Balboa Boulevard to 43rd 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 0 0 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 93rd 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: PART I 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 18 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 2 day of NOd�°/y16��' , 20_• GFB- FRIEDRICH & ASSOC., INC. UE 42 A. F ED CH, .E. �r V ASSESSMENT ENGINEER 2 • Preliminary Approval by the CITY COUNCIL of the CITY OF NEWPORT BEACH, California, on the day of 20, 0 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_ 3 CITY CLERK CITY OF NEWPORT BEACH STATE OF CALIFORNIA ENGINEER'S "REPORT" • PART 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. 0 • 4 0 �J 0 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 Prelimina 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 1,01 00 00 11,000.0 Subtotal, Incidentals $101,250.00 $101,250.00 Subtotal, Construction & Incidentals $838,500.80 $946,055.52 Continued -Next Pa¢e) 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 Subtotal Forward, Construction & Incidentals $838,500.80 $946,055.52 C. FINANCING COSTS 1. Bond Discount (2 %) $18,842.69 $21,259.67 2. BondReserve(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. M • • 0 . 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; I 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 • 0 a 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: $ 0.00 $ Balance to Assessment: $ 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. 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M 'R b 'T Q N ti fA m b o0 r N o r r 0 O O O O O O O O O O O O x N C7, C7, C7, CN CN CN CN CN CN CN CN CN CN CN C� O� N N N N N N N N N N N N N N 1--I ¢ N frl fYl frl a p t+i t+i N N N N N N N N N N N N N r4 r4 r4 N N N N N r4 r4 N N N N O� O� of 'R of 'V 'R of 'V p OV W ¢ .7, ry ry N N N M M M M M M M M M N CITY OF NEWPORT BEACH 0 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 $1,062,984 B. Unpaid Special Assessments 0.00 Total A & B $1,062,984 C. True Value of Parcels $16,395,842 ** 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 1, 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. 10 GFB- FRIEDRICH & ASSOC., INC. HN A. F ED1, 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 front 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 Assessment Basis "Standard" Residence /Duplex /Triplex 1.0 AU /30 foot lot 2 Residential Room Rental /Apartment Units 1.0 AU /30 foot lot 3 Residential Room Rental /Apartment Units 1.0 AU /30 foot lot Condominium Unit 0.8 AU /30 foot lot/unit Municipal Park (Channel Place Park) Front Footage of (Since the park receives an electrical service drop undergrounded utility only, the assessment will be based on one -half of lines divided by 30 feet the front footage) equals equivalent AU's Street Right -of -way Lots (2 each) 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 0 • 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 io 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. DATED: O&& ,�Z _�24 20,123 GFB- FRIEDRICH & ASSOC., INC. A. EIS CH, P.E. ASSESSMENT ENGINEER THIS SPACE INTENTIONALLY LEFT BLANK 14 0 I„ &gonec `7. &rt'd i-r5 , 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 J&*— day of AJO c1tex b e,--, 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 15 SUPERINTENDENT OF STREETS CITY OF NEWPORT BEACH STATE OF CALIFORNIA 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 • E ENGINEER'S "REPORT" PART V 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). 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A ® R IB -LO[ -m ® Si �1 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 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. 0 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. • • • 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. I[ 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 7h Zy day of /'yovc..,� -.c , 200J , at Newport Beach, California. STEP ­EN G. BADUM, P.E. SYMRINTENDENT OF STREETS CITY OF NEWPORT BEACH STATE OF CALIFORNIA • 20 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 Zy'* day of 416VA -Aga - , 20 03 , at Newport Beach, California. ,,.�STEPUEN G. BADUM, P.E. I)JR&TOR OF PUBLIC WORKS ITY OF NEWPORT BEACH STATE OF CALIFORNIA 21 Exhibit " C " e X {ywrf1- PC,, C— ov. Code LZL0 E CiLfY OF. NEWPORT BEA'H FI L E D 3300 Newport Boulevard - P.O. Box 1768 JAN 0 B 2003 Newport Beach, CA 92658 -8915 (714) 644 -3200 DAFLENE J. BLOOM IN ERIMCLERK-RECORDER By DEPUTY NOTICE OF EXEMPTION POSTED JAN 0 12003 0 DARLENE J. BLOOM. INTERIM CLERK-RECORDER By Do 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 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: Newport 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 Orar Exempt Status: (check one) Tom Daly, Clerk- Recorder Q Ministerial [Sec. 21080(b)(1);152681; IIIIIIIIIIIillll! IIIIIIIIIIIIIIIII !IIIIIIIIIIIIIIIIIIIIIIIIIIINO FEE Declared Emergency [Sec. 21080(b)(3); 15269(a)]; 200385000016 08:500 011071( j X0 1 Zo1 Emergency Project [ Sec.21080 b ( 4 )� 15269 �)(c)]; 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: Q General Rule [See. 1506 1 (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 tmdergroundinQ 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: 2 I% Patrick L. Arciniega, Project Engineer 99 11 0 f:\ users \pbw\dhoffsmdt\ad\masters\nodce of exemption master.doc 0 0 � aCi o w y f9 O L ' 7 N f9 O 0 w o+o, o+o+o+o+o+o+o�rn a rn o+rn o+rn rn o+rn o+rn o+rn o+rn v u v v v v v v v v v v v v v v v v v v v v v v v v v C N N N N N N N N N N N N N N N N N N N N N N N N N N N Y1 Vl Vl Y1 Vl Vl Y1 Y1 Vl Vl h V'1 Y1 Vl V'1 Vl Vl V'1 Vl V'1 Vl V'1 Vl V'1 Vl F fy V'1 V1 Vl Y1 Y1 Vl Vl Y1 Y1 Vl h V'1 Vl Vl Y1 Vl V'1 Vl V'1 V'1 Vl Vl Vl Vl V'1 � ` y E avy 9 V'1 Vl Y1 Y1 Vl Y1 Y1 Vl Vl Y1 h V'1 Y1 Vl Y1 Vl Vl Y1 Vl V'1 Vl V'1 Vl V'1 Vl a N N N N N N N N N N N N N N N N N N N N N N � h � (H 6q Vi 64 6q di Vi di Vi y r r r r r r r r r r r r r r r r r r r r r r r r r xi O N N N N N N N N N N N N N N N N N N N N N N N N N to Z C q u W o a � 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 v d _d a a a a a a a a a a a a Nrw 8888888888S88888 SEC' 888888 °°°°°°p°°°°°°°°°°°°°°°p°°°° w� `O r b W W� W ON W N N r0 O vt 'R p1 b r b O .�. vt N 'R N 'T C c •-. vii N vt V� r O\ cl N b O\ V of m vi m r w vi o vi rn ri m v m O m w �o 0o r ri c+) W m O r ti 'T O r N_ O w �o N O Vi 69 Vi Vi di Vi Vi b9 Vi Vi 69 Vi Vi � Vi Vf ER Vi iff K3 Vi Vi K3 Vi Vf N v) N 0 0 O O 0 0 C) 0 0 0 0 0 C) 0 v7 0 0 0 C) 0 0� C) 0 O O O O O C) O O 4 vOi z a N N N N N O N O O O C) O O y o U m f!) f!1 O C? 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V1 WS V V V m 01 V N N CO C- - D\ M y V'1 .O M ck "t r Iry F¢, � 69 69 69 69 69 69 69 69 69 69 69 69 rl (A o Z O O M A M M A N -- — — '-� V V V V D\ D\ D\ D\ D\ D\ D\ D\ D\ D\ D\ D\ D\ D\ y L O y C�\ C�\ N N N N N N N N N N N N N N f9 M M N N N N N N N N N N N N N N p Eo ��roorno-- �NC�v�n�oroorno 0 0 . 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 performlegal 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. Scone 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 of anybonds 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: . 1. 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. 3. 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 Agreement. 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 preliminary official statement and a final official statement; (b) litigation challenging the validity of 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 anyother 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. Termination. Eitherparty may terminate this Agreement by 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 By: Mayor, for the City of Newport Beach Robert E. Hessell C Approved as to form: City Attorney �J �t j NOTICE OF APPOINTMENT AS DEPUTY CITY CLERK Notice is hereby given that Patrick Arciniega is appointed Deputy City Clerk effective February 24, 2004. This appointment shall continue until February 25, 2004 and is for the purpose of tabulating ballots for proposed Assessment District No. 81 at the City Council meeting of February 24, 2004. LaVonne M. Harkless, City Clerk Date CERTIFICATE AND STATEMENT OF ASSESSMENT BALLOT TABULATION ASSESSMENT DISTRICT NO. 81 (River Avenue and Channel Place) STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF NEWPORT BEACH ) THE UNDERSIGNED, City Clerk for the City of Newport Beach, in connection with the proceedings to consider the formation of Assessment District No. 81 (River Avenue and Channel Place) (the "Assessment District ") and the levy of assessments within the Assessment District, DOES HEREBY CERTIFY that, after the close of the public hearing held on February 24, 2004 to consider the formation of the Assessment District, the undersigned did tabulate the assessment ballots timely submitted by affected property owners. THE UNDERSIGNED further CERTIFIES that this Statement of Assessment Ballots Submitted shows the assessment ballots submitted in favor of the assessment and the assessment ballots submitted in opposition to the assessment, each total weighted according to the financial obligation of the affected properties for which the assessment ballots were submitted. TOTAL BALLOTS RECEIVED No. of Parcels: 22 AsmtAmt: $ ✓ � tOZ. 0-4 BALLOTS SUBMITTED IN FAVOR OF THE PROPOSED ASSESSMENT: 11) No. of Parcels: e') Asmt Amt: $ � I &A 2 . lr(l Asmt Amt Percent Yes: BALLOTS SUBMITTED IN OPPOSITION TO THE PROPOSED ASSESSMENT: No. of Parcels: I l Asmt Amt: $ 2 qq 11 Z� q, 7L. ,! Asmt Amt Percent No: 1L' I �1 % This certification is executed this February 24, 2004 in Newport Beach, California. -TWO CA-LLC 1 ' b_JY\Xr City Cl rk ssessnient E give r �Ff3 -Fi�j�dr,�cti � f�ssaG., /mac , F.',l IS E KS \P B \V \N A rci n ic�a,,4DL4D811Ba1InCPabuladon %AD31. du CITY OF NEWPORT BEACH ASSESSMENT DISTRICT NO. 81 (River Avenue) BALLOT LOG Asmt. Assessor's Property Owner y Confirmed 1 =Yes "Yes" "No" No. Parcel No. Assessment 2 =No Votes ($) Votes ($) 1 423 - 304 -07 Borchers, Beverly June et al $25,552.49 2 423 - 304 -06 Fuller, Gary $25,552.49 2 $25,552.49 3 423 - 304 -05 Shapiro, Paul S. TR $25,552.49 2 $25,552.49 4 423 - 304 -04 Cooley, Richard L. $25,552.49 1 $25,552.49 5 423 - 304 -03 Teitscheid, Daniel A. $25,552.49 2 $25,552.49 6 423 - 304 -02 Sein, Dennis $25,552.49 7 423 - 304 -01 Thompson, Eric J. $25,552.49 8 423 - 303 -07 Tarantello, Rocco D. TR $25,552.49 2 $25,552.49 9 423- 303 -06 Ryan, Gerald R. TR $25,552.49 2 $25,552.49 10 423 - 303 -05 Holman, Robert D. TR $25,552.49 2 $25,552.49 11 423 - 303 -04 Carden 2002 Trust $25,552.49 12 423 - 303 -03 Lamb, Audrey TR $25,552.49 1 $25,552.49 13 423 - 303 -02 Chavez 1992 Trust $25,552.49 14 423 - 303 -01 Duncan, Jeffrey S.& Gabriella S. $25,552.49 15 423 - 302 -06 Prendergast, Vickie Jo $25,552.49 16 423 - 302 -05 Sandberg, Robert W. $25,552.49 17 423 - 302 -04 Mithrush, Yvonne M. $25,552.49 18 423 - 302 -03 Anderson, Phoebe & Kim $25,552.49 19 423 - 302 -02 Forbath, Joseph W. & Allison L. $25,552.49 2 $25,552.49 20 423 - 302 -01 Nelson, Kirk C. & Tamara $25,552.49 2 $25,552.49 21 423 - 301 -06 Vaughan, Porter D.& Doris K. $25,552.49 1 $25,552.49 22 423 - 301 -05 Saylor, Tod A. & Joann M. $25,552.49 23 423 - 301 -04 Goodgame Family Limited Partnership $25,552.49 1 $25,552.49 24 423 - 301 -03 Charboneau Truist $25,552.49 1 $25,552.49 25 423- 301 -02 Deridder, Paul A. TR $25,552.49 1 $25,552.49 26A 933 - 940 -72 Smith, Melvin TR $19,164.37 1 $19,164.37 26B 933 - 940 -73 Yee, Kam Foy & Siu Loong $19,164.38 1 $19,164.38 27 423 - 293 -05 Nelson, Kirk C. & Tamara Lynn $38,328.75 2 $38,328.75 28 423 - 293 -04 Polley, Harold L. / K.L. Trust $38,328.75 29 423 - 293 -03 Benson, Nuel C. & Judith A. $25,552.50 30 423 - 293 -02 Alward, Jack Richardson TR $25,552.50 31 423 - 293 -01 Sullivan, Robert L. $25,552.50 32 423 - 292 -01 Jessen, Robert Henning TR $30,918.53 2 $30,918.53 33 423 - 291 -01 City of Newport Beach $78,446.16 34 423 - 291 -02 Martin, W. L. III $25,552.50 35 423 - 291 -03 Shaver, Carolyn R. $25,552.50 2 $25,552.50 36 423 - 291 -06 Hughes, Marilyn Jo TR $25,552.50 37 423 - 291 -08 Folger, Stewart V. TR $25,552.50 40 423 - 294 -01 Pastrmac, Eric TR $20,953.05 TOTALS $1,062,983.74 $191,643.69 $299,219.70 COMBINED "YES" AND "NO" VOTES $490,863.39 PERCENT "YES VOTES" ( "YES " VOTES / COMBINED VOTES) 39.0% TOTAL NUMBER OF PARCELS WITH BALLOTS SUBMITTED 19 PERCENT BALLOTS RETURNED BY DOLLAR ($) AMOUNT 46.2% Ballot Log - 1 See File (89) For Ballots Assessment District No. 81 River Avenue and Channel Place