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HomeMy WebLinkAbout16 - Assessment District 94 - Pacific DriveCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 16 May 8, 2007 TO: Mayor and Members of the City Council FROM: Public Works Department Patrick Arciniega, Associate Civil Engineer 949 - 644 -3311 parciniega@city.newport-beach.ca.us SUBJECT: PROPOSED ASSESSMENT DISTRICT NO. 94 — PACIFIC DRIVE - CORONA DEL MAR FOR UNDERGROUNDING UTILITIES AND DESIGNATION AS AN UNDERGROUND UTILITIES DISTRICT RECOMMENDATIONS: 1. Open public hearing on the formation of Assessment District No. 94. 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. 2007 - _ 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. 94 Pacific Drive — Corona del Mar. 6. Approve a Budget Amendment in anticipation of the formation and approval of Assessment District No. 94. The proposed Budget Amendment will increase revenue estimates by $706,855 and a bond reserve of approximately $37,293 will be established for a total proposed assessment of $744,148. The proposed budget amendment will also increase expenditure appropriations by $669,760. The difference ($37,095) between the increased revenue estimates and the proposed expenditure appropriation will be utilized to reimburse the City for past assessment engineering and design expenditures related to this district. Undergrounding Utilities in Proposed Assessment District No. 94 Pacific Drive — Corona del Mar District and Designation of this Area as an Underground Utilities District May 8. 2007 Page 2 DISCUSSION: On March 13, 2007 the City Council accepted a preliminary Engineers Report for proposed Assessment District No. 94, adopted a Resolution of Intention to form the District, and set a public hearing on the Assessment District for May 8, 2007 (see attachment). The location of the proposed District and overhead facilities to be removed are shown on the attached sketch. Action on the District will be taken after the public hearing is closed and the ballots are counted. On February 20, 2007, an informal homeowner information meeting was held in the City Council Chambers to discuss the proposed District. 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 District will underground all overhead electrical, telephone, and cable N 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 District is $833,283, 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 (Edison) will require the City of Newport Beach to reimburse Edison 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 bonds, if necessary, to pay Edison within 60 days after SCE notifies the City. The ITCC Tax associated with this District is approximately $77,430.54, 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's assessment methodology uses equivalent benefit units (EBU's) as a means to apportion assessments within this District. This assessment methodology assigns one benefit unit per each underground utility service plus an overall community aesthetic benefit for a total of 4 EBU's. The total cost of the project is divided by the total number of EBU's for the project resulting in a 'cost per EBU'. A typical lot receives an assessment based on all 4 EBU's. The average cost for a standard assessment is: $27,470.87 Some exceptions were taken for -lots that did not receive all three utility services, and some lots only received an EBU based on the aesthetic component. These exceptions are detailed in Exhibit D — Method of Assessment in the Engineer's Report. Undergrounding Utilities in Proposed Assessment District No. 94 Pacific Drive — Corona del Mar District and Designation of this Area as an Underground Utilities District May 8, 2007 Page 3 There are six lots along Acacia Ave., the `Acacia lots', that will not receive underground services, however they will receive a benefit from the overall aesthetics of the undergrounding of the lines along Acacia Ave. They were assessed 1 EBU for the aesthetic component and the average assessment is: $5,913.87. One wooden guy pole will remain in the district to provide tension support for the remaining overhead lines in the alley between Acacia Ave. and Begonia Ave. The parcel that will have the remaining guy pole was given a discount of .50 for the aesthetic EBU. The estimated assessment with the ITCC tax component ranges from $27,470.87 to $2,289.24, with the average assessment being $22,567.57. The estimated assessment without the ITCC tax component ranges from $24,538.40 to $2,044.87, with the average assessment being $20,158.51. 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 for this Public Hearing was mailed out on March 16, 2007 to provide a minimum 45 -day noticing to property owners within the proposed district boundary. Funding Availability: Upon formation and approval of the District, funding will be provided by property owner contributions and bonded assessments. See attached Budget Amendment. Prepared by: Submitted by„ ack L. Arciniega St n G. Badum Associate Civil Engineer is Works Director Attachments: Resolution Declaring Results Cofallot T abulation March 13, 2007 Council Report Sketch Engineer's Report Budget Amendment RESOLUTION NO. 2007 RESOLUTION DECLARING THE RESULTS OF THE BALLOT TABULATION, APPROVING THE ASSESSMENT ENGINEER'S REPORT, CONFIRMING ASSESSMENTS FOR ASSESSMENT DISTRICT NO. 94 (PACIFIC DRIVE - CORONA DEL MAR), ORDERING THE ACQUISITION OF IMPROVEMENTS, AND DESINATING THE AREAAN UNDERGROUND UTILITIES DISTRICT WHEREAS, this City Council has previously adopted its Resolution of Intention and initiated proceedings for the acquisition of certain public works 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. 94 (Pacific Drive - Corona del Mar) (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 "); 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; WHEREAS, this City Council furtherfinds 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; 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 XIII D, 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; 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; 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 XIIID SECTION 3. The ballots submitted pursuant to the Assessment Law in opposition to the assessment and weighted as required by the Assessment Law do not exceed the ballots submitted in favor of 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; 2 C. No assessment to be imposed on any parcel 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 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 3 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 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 all 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. 13 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 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 by this reference. 5 PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Newport Beach, held on the 8th day of May, 2007, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: City Clerk CITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. March 13, 2007 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. 94 — PACIFIC DRIVE — CORONA DEL MAR FOR UNDERGROUNDING UTILITIES AND DESIGNATION AS AN UNDERGROUND UTILITIES DISTRICT RECOMMENDATIONS: Adopt the following Resolutions for Proposed Assessment District No. 94: a. Resolution No. 2007- _ making finding on a petition for, adopting a map showing the proposed boundaries of, and making appointments for proposed Assessment District No. 94. b. Resolution No. 2007- _ declaring intention to order the construction of certain improvements in proposed Assessment District No. 94; 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 designating the area an underground utilities district. c. Resolution No. 2007- _ giving preliminary approval to the report of the assessment engineer, setting the time and place for a public hearing as May 8, 2007; and ordering the intention of assessment ballot procedure for Assessment District No. 94. d. Resolution No. 2007 - T approving contracts for utility improvements for Assessment District No. 94. 2. Approve the Bond Counsel Agreement with Robert Hessell. HISTORY: Owners of property located in Proposed Assessment District No. 94 submitted petitions to the City requesting the formation of a special assessment district to underground overhead utilities. On April 13, 2004 City Council appropriated $19,035.00 to hire MuniFinancial as the assessment engineer for this proposed project. On May 11, 2004 MuniFinancial certified that owners representing approximately 62 percent of the assessable property area within Proposed Assessment District No. 94 had signed a petition for undergrounding overhead utilities. At Staffs request, City Council Proposed Assessment District No. 94 Pacific Drive in Corona del Mar for Undergrounding Utilities March 13, 2007 Page 2 appropriated $18,060.00 on July 27, 2004 to facilitate the undergrounding of utilities. $11,260.00 was expended to prepare SCE engineering plans and $6,800.00 was expended to prepare AT &T engineering plans. City Council has approved a total of $37,095.00 to date for the preliminary stages of this project. DISCUSSION: Assessment District No. 94 is being proposed 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 their 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. 94 is estimated as follows: ITEM ESTIMATED COST Cost of Construction $615,331 Incidental Costs and Expenses $85,035 Financing (Bond) Costs $45,498 Federal Income Tax Component of Contribution (ITCC) $89,135 Estimated Total Cost: $835,000 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 since underground utility districts are undertaken at the request of the community for purposes of community aesthetics and public safety, and 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. In the event 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 to reimburse the full amount of the determined tax liability, plus interest, penalties, fees, and related costs. in that case the City may need to sell a second issue of the bonds, if necessary, to pay SCE within 60 days after they notify the City of Newport Beach. The estimated ITCC tax amount is $89,135.00. The City Attorney's Office has reviewed SCE's request to have the preceding statement included in the Assessment District Report. It was determined that the City would not incur any tax liability. In addition to the assessment, property owners will be responsible for converting their service connection to receive underground service. These private property costs can vary greatly depending on the condition and location of their current electrical service. Property owners are encouraged to contact licensed electrical contractors to determine their individual needs. The Bond Reserve will be seven percent for this district. Proposed Assessment Distdct No. 94 Pacific Drive in Corona del Mar for Vndergrounding utilities March 13, 2007 Page 3 Property owners who pay assessments in cash will receive a discount of approximately five percent, which represents the financial cost of issuing and servicing bonds. The following is a tentative schedule for proposed Assessment District No. 94: • Property Owner Information Meeting February 20, 2007 • Resolution of Intention March 13, 2007 • Public Hearing May 8, 2007 • Public Utilities Commence Work August 6, 2007 • City Notifies Property Owners to Install Service January 1, 2008 Connections • Property Owners Complete Conversions June 1, 2008 • Public Utilities Begin to Remove Overhead November 2008 Structures • Public Utilities Finish Removing Poles and January 2009 Overhead Structures The Assessment Engineer's assessment methodology uses equivalent benefit units (EBU's) as a means to apportion assessments within this District. This assessment methodology assigns one benefit unit per each underground utility service plus an overall community aesthetic benefit for a total of 4 EBU's. The total cost of the project is divided by the total number of EBU's for the project resulting in a 'cost per EBU'. A typical lot receives an assessment based on all 4 EBU's. The average cost for a standard assessment is: $27,470.87 Some exceptions were taken for lots that did not receive all three utility services, and some lots only received an EBU based on the aesthetic component. These exceptions are detailed in Exhibit D — Method of Assessment in the Engineer's Report. There are six lots along Acacia Ave., the 'Acacia lots', that will not receive underground services, however they will receive a benefit from the overall aesthetics of the undergrounding of the lines along Acacia Ave. They were assessed 1 EBU for the aesthetic component and the average assessment is: $5,913.87. One wooden guy pole will remain in the district to provide tension support for the remaining overhead lines in the alley between Acacia Ave. and Begonia Ave. The parcel that will have the remaining guy pole was given a discount of .25 for the aesthetic EBU. The estimated assessment with the ITCC tax component ranges from $27,470.87 to $2,289.24, with the average assessment being $22,567.57. The estimated assessment without the ITCC tax componenet ranges from $24,538.40 to $2,044.87, with the average assessment being $20,158.51. Plans and specifications were prepared by SCE, AT &T, and TimeWarner Communications. Attached is a sketch showing the boundary of the proposed Assessment District and the utilities to be undergrounded. Environmental Review: A Notice of Exemption was completed February 21, 2007, and filed with the County Recorder on February 21, 2007. Proposed Assessment District No. 94 Pacific Drive in Corona del Mar for Undergrounding Utilities March 13, 2007 Page 4 Prepared by: Submitted by: Patrick L. Arciniega PE Associate Civil Engineer Attachments: Stephen G. Badum Public Works Director 1. Exhibit Showing District Boundaries 2. Resolution Receiving Petition 3. Resolution of Intention to order construction of certain 4. Resolution preliminary approval of Engineers Report, initiating ballot procedures 5. Resolution approving utility improvement contracts 6. Utility Contracts for SCE and AT &T 7. Bond Counsel Agreement 8. Engineer's Report improvements setting public hearing and i w412 Z r--- W 408 i Q !01 lo >>1 FIRST II AVENUE 232?>--- 417 416 4161/2 415 414 4141/2 I 421 1/2 421 413 W 412 4121/2 �I 41` Q 41�01l2I M71 410 1 W 40' 2— 4151!2 � Q 408 (" AT&T .ONLY ONLY) 415 Z > o Q N co j Q 14 04 co N" N N N' N N 04 I I V Z z N N I O I ! a j i— V PACIFIC N N o i I m h N N N CO O f N O _ lN M I N V'I N I (`') M D N N � A N N C 1 p (h N (h j N - -- - e� \S /,D i PROPOSED ASSESSEMENT DISTRICT NO.94 HOMES ALONG BOTH SIDES OF PACIFIC DRIVE 0 POLES TO BE REMOVED Q POLES TO REMAIN IN PLACE — N ��T I N (N N N N N OVERHEAD LINES TO BE REMOVED - — — — — — - OVERHEAD LINES TO REMAIN IN PLACE °a n N r i l I I I; III 1, I I i 1 BOUNDARY OF PROPC4SED ASSESSEMENT DISTRI T EXHIBIT'A' CITY OF NEWPORT BEACH ENGINEER'S REPORT UNDERGROUND UTILITY ASSESSMENT DISTRICT No. 94 MARCH 13, 2007 INTENT MEETING: March 13, 2007 PUBLIC HEARING: May 8, 2007 ✓4u Corporate Office 27368 Via Industria Suite 770 Temecula, CA 92590 Tel: (951) 587 -3500 Tel: (800) 755 -MUNI (6864) Fax: (951) 587 -3510 Regional O1Rces Anaheim, CA Industry, CA Jacksonville, FL Lancaster, CA Oakland, CA www.muni,com Phoenix, AZ San Diego, CA Seattle, WA Washington, DC ENGINEER`S REPORT UNDERGROUND UTILITY ASSESSMENT DISTRICT NO. 94 CITY OF NEWPORT BEACH TABLE OF CONTENTS CERTIFICATIONS ENGINEER'S REPORT ........................................................................ ............................... ii GENERAL DESCRIPTION OF UNDERGROUND UTILITY ASSESSMENT DISTRICT NO. 94 ................I DESCRIPTIONOF WORK ....................................................................................................... ..............................1 EXHIBIT A - PLANS AND SPECIFICATIONS ..................................................................... ..............................A EXHIBITB - COST ESTIMATE ........................................................................................... ............................... B EXHIBIT C - DEBT LIMIT REPORT ................................................................................... ............................... C EXHIBIT D - METHOD OF ASSESSMENT .......................................................................... ..............................D EXHIBIT E - ASSESMENT ROLL ......................................................................................... ............................... E EXHIBIT F - ASSESSEMENT DIAGRAM ............................................................................ ............................... F EXHIBIT G - MAXIMUM ANNUAL ADMINISTRATIVE COST ...................................... ..............................G EXHIBIT H - INDIVIDUAL SERVICE CONNECTIONS .................................................... ..............................H EXHIBIT 1 - PUBLIC PROPERTIES ....................................................................................... ..............................1 EXHIBIT J- CERTIFICATE OF COMPLETION OF ENVIRONMENTAL PROCEEDINGS .......................J EXHIBIT K - RIGHT -OF -WAY CERTIFICATE .................................................................. ..............................K MuniFinanciat i City of Newport Beach ENGINEER'S REPORT UNDERGROUND UTILITY ASSESSMENT DISTRICT NO. 94 CITY OF NEWPORT BEACH The undersigned respectfully submits the enclosed report as directed by the City Council. 2007. Willdan Assessment Engineer I HEREBY CERTIFY that the enclosed Engineer's Report, together with the Assessment and Assessment Diagram thereto attached, was filed with me on the day of , 2007. Clerk of the City Council, City of Newport Beach, California - I HEREBY CERTIFY that the enclosed Engineer's Report, together with the Assessment and Assessment Diagram thereto attached, was approved and confirmed by the City Council for the City of Newport Beach, California, on the day of 12007. Clerk of the City Council, City of Newport Beach, California I HEREBY CERTIFY that the enclosed Engineer's Report, together with the Assessment and Assessment Diagram thereto attached, was recorded in my office on the day of 2007. Superintendent of Streets City of Newport Beach, California MuniFinancial City of Newport Beach ll ENGINEER'S REPORT UNDERGROUND UTILITY ASSESSMENT DISTRICT NO. 94 CITY OF NEWPORT BEACH Willdan /MuniFinancial, Assessment Engineer of work for Underground Utility Assessment District No. 94 (the "District', writes this report, as prescribed by the City Council of the City of Newport Beach in accordance with the Resolution of Intention, and pursuant to the terms and provisions of Article XIIID of the State Constitution, Part 7.5 of the Special Assessment Investigation, Limitation and Majority Protest Act of 1931, which is Division 4 of the Streets and Highways Code of the State of California, the Municipal Improvement Act of 1913, which is Division 12 of the Streets and Highways Code of the State of California, and Chapter 28 of the Improvement Act of 1911. The improvements, which are the subject of this report, are briefly described as follows: GENERAL DESCRIPTION OF UNDERGROUND UTILITY ASSESSMENT DISTRICT NO. 94 Underground Utility Assessment District No. 94 generally includes the properties South of First Avenue, East of Avocado Road, West of Begonia Avenue, and North of Bayside Drive. The District is made up thirty -seven (37) single -family residential properties. All properties within the District except for one are developed, two properties will only require that their phone service be undergrounded, and six properties will benefit only from the improved neighborhood aesthetics as a result of the utility undergrounding. DESCRIPTION OF WORK The following is a description of the planned improvements for the entire district. Undergrounding of Overhead Utility Lines The undergrounding of overhead utility lines within the boundaries of the District includes trenching, installing the new utility vaults needed to receive the conduits and transformers, laying the conduit lines into the trenches, re- paving the street, switching service to the underground system and removing the existing overhead poles and wires. This includes power lines owned by Southern California Edison, phone lines owned by AT &T, and cable television and fiber optic lines owned by Time Warner Communications. The proposed underground electric and communication improvements must be constructed within public right -of -way, land, or easements owned by the City of Newport Beach or the serving utility. Onsite Property Costs The public improvement portion of the undergrounding of utilities will terminate at a service lateral located at the front or rear of each property to be served in the district. Each individual property owner will be responsible for all necessary work to connect facilities from the service lateral to the connection point at the house, including but not limited to, trenching, backfilling, installation of conduits and conductors, and conversion panels. MuniFinancial 1 City of Newport Beach BONDS Bonds representing unpaid assessments, and bearing interest at a rate not -to- exceed twelve- percent (12- percent) per annum, shall be issued in the manner provided by the Improvement Bond Act of 1915 (Division 10, Streets and Highways Code), and the last installment of the bonds shall mature not -to- exceed thirty -nine (39) years from the second day of September next succeeding twelve (12) months from the date. This report includes the following attached exhibits: EXHIBIT A - Plans and specifications for improvements to be constructed. Plans and specifications are a part of this report, separately bound, and are available for review at the Office of the Superintendent of Streets of the City of Newport. EXHIBIT B - An estimate of the cost of the improvements. EXHIBIT C - A debt limitation report showing the following: The total amount of Prior Assessment Liens, as near as may be determined, and 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 this Underground Utility Assessment District No. 94, against the total area proposed to be assessed. 2. The total true value, as near as may be determined, of the parcels of land and the improvements that are proposed to be assessed by this District. EXHIBIT D - A statement of the method by which the Assessment Engineer determined the amount to be assessed against each parcel based on the special benefits to be derived by each parcel, respectively, from the improvements. EXHIBIT E - An assessment roll, showing the amount to be assessed against each parcel of real property within this Underground Utility Assessment District No. 94. Each parcel is identified by an Assessor's Parcel Number. Each parcel is also assigned an "assessment number' for the purposes of this proceeding. EXHIBIT F - A diagram showing all of the parcels of real property within this Underground Utility Assessment District No. 94. The diagram corresponds to and is keyed to Exhibit C by the assessment number. EXHIBIT G - Proposed maximum annual administrative cost per parcel. EXHIBIT H - Provisions related to Individual Service Connections. EXHIBIT I - A schedule showing the public property that will be included within the District. EXHIBIT i — Certification of Completion of Environmental Proceedings. EXHIBIT K — Right -of -Way Certificate. MuniFinancial 2 City of Newport Beach ENGINEER'S REPORT UNDERGROUND UTILITY ASSESSMENT DISTRICT NO. 94 CITY OF NEWPORT BEACH EXHIBIT A - PLANS AND SPECIFICATIONS PLANS AND SPECIFICATIONS The plans and specifications for the improvements for this District are voluminous and will not be bound to this Report, but by this reference are incorporated as if attached to this Report. The plans and specifications are on file in the Office of the Superintendent of Streets of the City of Newport Beach. The plans and specifications for this District consist of utility undergrounding plans, public works encroachment permit, paving requirements, and special provisions. MuniFinancial Exhibit A - Page 1 City of Newport Beach ENGINEER'S REPORT UNDERGROUND UTILITY ASSESSMENT DISTRICT NO. 94 CITY OF NEWPORT BEACH EXHIBIT B - COST ESTIMATE FEDERAL INCOME TAX COMPONENT OF CONTRIBUTION (ITCC) 2nd Bond Issue - Only necessary if Federal Government requires the tax payment* INCIDENTAL & FINANCING COSTS (2nd Bond Issue) ITCC Portion $77,430.54 Bond Issuance Contingency 10.000.00 Total $ 87,431 Rounding $1,704 TOTAL AMOUNT TO ASSESSMENT (Both Bond Issues) $833,283 x 2nd bond issue for Federal Income Tax Component of Contribution (22 %) and will only be issued if the Federal Government requests the payment of the tax. MuniFinancial Exhibit B - Page 1 City of Newport Beach TOTAL CONSTRUCTION COSTS AMOUNT Electrical Construction Costs Southern California Edison $351,957.00 Contingency (10 %) 33,478.77 City Fund Advancement 11,260.00 Sub Total $396,695.77 Telephone Construction Costs AT &T 191,017.00 Contingency (10 %) 19,101.70 City -and nd Advancement 6.800.00 Sub Total $216,918.70 Total Construction Costs $613,614.47 INCIDENTAL EXPENSES Assessment Engineering $19,035.00 City Administration 13,000.00 Construction Inspection 11,000.00 Financial Advisor 12,500.00 Bond Counsel 20,000.00 Paying Agent 2,000.00 COJ Incidental Continazencv 7,500.00 Sub Total $85,035.00 FINANCING COSTS (1st Bond Issue) Underwriters Discount (1.1 %) $8,204.52 Reserve Fund (5 %) 37293.25 Sub Total $45,497.77 DISTRICT FORMATION AMOUNT TO ASSESSMENT $744,148 FEDERAL INCOME TAX COMPONENT OF CONTRIBUTION (ITCC) 2nd Bond Issue - Only necessary if Federal Government requires the tax payment* INCIDENTAL & FINANCING COSTS (2nd Bond Issue) ITCC Portion $77,430.54 Bond Issuance Contingency 10.000.00 Total $ 87,431 Rounding $1,704 TOTAL AMOUNT TO ASSESSMENT (Both Bond Issues) $833,283 x 2nd bond issue for Federal Income Tax Component of Contribution (22 %) and will only be issued if the Federal Government requests the payment of the tax. MuniFinancial Exhibit B - Page 1 City of Newport Beach ENGINEER'S REPORT UNDERGROUND UTILITY ASSESSMENT DISTRICT NO. 94 CITY OF NEWPORT BEACH EXHIBIT C - DEBT LIMITATION REPORT After reasonable search, we are not aware of any prior assessment liens on the properties located within Underground Utility Assessment District No. 94. The total of the assessment liens for the Underground Utility Assessment District No. 94 is equal to $835,000. "True Value" as used herein is the estimated full cash value of the parcels as shown upon the last equalized assessment roll of the county. Alternatively, total true value may be determined by other reasonable means, including, but not limited to, by adjusting the value shown on the last equalized assessment roll to correct for deviations from market value due to Article XIIIA of the California Constitution. The gross property valuation (based on the 2006/07 County of Orange Secured Property Tax Roll) for properties located within Underground Utility Assessment District No. 94 totals $52,448,651. CERTIFICATION OF ASSESSMENT ENGINEER I, the undersigned Assessment Engineer, do hereby certify that the total amount of the principal sum of the assessments proposed to be levied for the District, together with the principal amount of all other assessments levied or proposed to be levied on the properties within the District, as set forth above, does not exceed one -half (1 /2) of the total true value of the parcels proposed to be assessed for the District. I further certify that the proposed assessment upon any parcel does not exceed one -half (1/2) of the true value of the parcel. Willdan / MuniFinancial Kenneth T. Steele, P.E. Assessment Engineer MuniFinancial Exhibit C - Page 1 City of Newport Beach ENGINEER`S REPORT UNDERGROUND UTILITY ASSESSMENT DISTRICT NO. 94 CITY OF NEWPORT BEACH EXHIBIT D - METHOD OF ASSESSMENT ►6 The law requires that assessments levied pursuant to the Municipal Improvement Act of 1913 be based on the benefit that properties receive from the Improvements. However, the law does not specify the method or formula that should be used to apportion the assessments in the Underground Utility Assessment District No. 94 proceedings. In addition, Articles XIIIC and XIIID of the California Constitution require that only special benefits are assessable, that no assessment may exceed the proportional special benefit received by the parcel assessed, and that publicly owned parcels shall not be exempt from assessment unless clear and convincing evidence demonstrates that such public owned parcels receive no special benefits from the improvements or services for which the assessment is levied. Special benefit is a particular and distinct benefit over and above general benefits conferred to the public at large on real property located within the District. General enhancement of property value does not constitute special benefit. It is necessary to identify the special benefit that the Improvements will render to the properties within the Underground Utility Assessment District No. 94. It is also necessary to identify and separate any portion of the Improvements, which provide a general benefit to the public at large from the portion of Improvements that provide a special benefit to parcels within the District. Any cost of Improvements, or portion thereof, that is considered general benefit has not been included as part of the total assessment. It has been determined from the design plans, cost estimates, and boundaries of the District that all of the Improvements, for the undergtounding of the utilities, provide a direct and special benefit to the parcels within the District and there is no measurable general benefit to the public at large. The responsibility rests with the Assessment .Engineer who is appointed for the purpose of analyzing the facts and determining the method of apportionment of the assessment to the benefiting properties, based on the amount of special benefit that each parcel receives, related to the District as a whole. For these proceedings, the City has retained the firm of Willdan /MuniFinancial as the Assessment Engineer. The Assessment Engineer makes the recommendation for the method of apportionment at the public hearing. The final authority and action rest with the City Council after hearing all testimony and evidence presented at the public hearing and completing the tabulation of assessment ballots. Upon conclusion of the public hearing, the City Council must make the final action in determining that the assessment has been apportioned equitably based on the special benefit received by each parcel. Ballot tabulation will then be completed, and if less than 50 percent of ballots returned and tabulated, weighted by assessment amount, are opposed to the assessment, then there is not a majority protest and the City Council may form -the District, adopt the Final Engineer's Report, and Order the Work to commence. MuniFinancial Exhibit D - Page 1 City of Newport Beach BENEFIT The district is being formed to underground the existing overhead electrical and communication facilities within the boundaries of the District. Undergrounding the existing overhead utilities will improve the safety of motorists who drive in the neighborhood. The existing poles are immovable objects that could cause damage and possible injury to the occupants of the vehicle, in the event of an accident involving a utility pole. By removing the poles from the right -of -way and street edge, the potential for vehicles to collide with them are removed which will provide overall improved safety for drivers within the District. The removal of overhead utility poles and lines provides an additional safety benefit in that it reduces the potential of hazardous conditions in the event of natural disasters. Earthquakes, severe storms with high winds, and other natural disasters can cause poles to fall, potentially impacting property in the District, and possibly cause live electric lines to be exposed. Downed electric lines pose a potential threat of fire and potential injury due to electric shock. In addition, downed electric lines can restrict ingress and egress of residents and emergency services. In addition to the safety improvements provided by the undergrounding of utilities, removing the poles and lines will eliminate an unusually heavy concentration of overhead electric and communication facilities. This will improve the overall aesthetics within the District and the reliability of the utility services received by properties in the District. Parcels that will have their utilities undergrounded will benefit from improved reliability of the utility services by receiving new upgraded utility lines and cables, along with appurtenant facilities related to the utility to be undergrounded. This will reduce exposure to natural phenomena that may cause potential damage and interruption in utility services. Undetgrounding of these utilities will bring this neighborhood closer to modem day development standards. These special benefits improve the physical and visual environment, as well as, the quality of utility services provided. The benefits of this undergrounding project are a direct and special benefit to the owners of property within the District. Since residents of all of the lots within the District drive and walk the streets that have the utilities proposed for undergrounding, the owners of these lots receive all of the direct and special benefits of the improvements. There is no measurable general benefit since the primary function of the affected streets is to provide access for the residents within the District, and not to the public at large. METHOD OF ASSESSMENT The method of assessment is determined by an analysis of the benefit a property receives rather than the specific cost of providing improvements to an individual property. The benefit of undergrounding the overhead utility system is based on safety, services to be undergrounded, reliability, and neighborhood aesthetics. The District is made up of 37 single - family residential properties. The method of apportionment established for most districts formed under the 1913 Act utilizes a weighted method of apportionment known as an Equivalent Benefit Unit (EBU) methodology that uses the single - family home site as the basic unit of assessment. The distribution of electricity, other utilities, and the underground wires and cables are constant no matter what size lot or house is located on each parcel. Therefore, each property within the District will be assigned one Equivalent Benefit Unit for each of the three utilities to be undergrounded and one Equivalent Benefit Unit for the improved neighborhood aesthetics resulting from the removal of overhead utilities. The total EBU and assessment assigned to each property shall be calculated by the following equation: MuniFinancial Exhibit D - Page 2 City of Newport Beach Electrical + Phone + Cable + Aesthetic = Parcel's EBU EBU EBU Total Assessment Total EBU EBU EBU Assessment Rate per EBU Assessment Rate per EBU x Parcel's EBU = Parcel's Assessment In addition to the assessments related to the cost of undergrounding the overhead utilities and associated incidental expenses and financing costs in connection with the issuance of bonds ("Underground Assessment'), properties that benefit from the conversion of their electrical services from overhead facilities to underground transmission may also be subject to an additional assessment linked to the Income Tax Component of Contribution (ITCC) ("Supplemental Assessment'D. This Supplemental Assessment is established to cover any tax liability incurred by Southern California Edison as a result of an Internal Revenue Service determination that the utility conversion is a taxable event. In the event Southern California Edison is taxed, a second series of bonds would be issued to pay for the tax liability. A parcel's Supplemental Assessment is calculated based on such parcel's share of the total Electrical Equivalent Benefit Units. The total assessment lien on each parcel will be the Underground Assessment plus the Supplemental Assessment. Parcels that will not have their electrical service converted from overhead facilities to underground transmission will not be assessed a Supplemental Assessment. EXCEPTIONS AND CREDITS The overhead utilities will be removed along the north side of Acacia Avenue from Pacific Drive to First Avenue and parcels 459-101-13,459-101-14,459-102-01,459-102-04,459-102-05,938-01-418, and 938- 01 -430 (the "Acacia Properties' will receive improved aesthetics associated with the neighborhood as a whole. Although the overhead utilities will be removed along Acacia Avenue, the Acacia Properties will continue to receive their utility services from overhead connections or existing underground transmission lines connected to overhead utilities located along the backside of their properties, therefore, the Acacia Properties will not benefit from the enhanced services, increased reliability and capacity, or improved safety as a result of the utility undergrounding. In determining the level of benefit the Acacia Properties receive, the special benefits received by all other parcels within the District must be considered in order to calculate the proportional special benefit conferred on the Acacia Properties. In addition, the overhead utilities that will remain along the side and backside of these properties must also be considered in calculating the EBUs assigned to the Acacia Properties. Therefore, since only the frontage along Acacia Avenue will be improved by the proposed utility undergrounding, the aesthetic EBU assigned to each Acacia Property must reflect the level of benefit conferred on such properties. Specifically, parcels 459- 101 -13, 459- 102 -04, 938-01 -418, and 938 -01 -430 will continue to have overhead utilities along the back alley of their properties, as such, the aesthetic EBU assigned to each of these parcels shall equal one -half of the base aesthetic EBU (1/2 x 1.00 = 0.5 EBU). Parcel 459- 102 -05 will also be served by overhead utilities along the backside of their property, however, this property will benefit from the removal of overhead utilities not only along Acacia Avenue but also along the alley that joins Acacia Avenue and Begonia Avenue and shall be assessed two- thirds of the base aesthetic EBU MuniFinancial Exhibit D - Page 3 City of Newport Beach Assessment Assessor's Electrical Phone Cable Aesthetic Total Number Parcel Number EBU EBU EBU EBU EBUs 21 459 - 101 -13 0.00 0.00 0.00 1/2 x (1.00) 0.5 24 459 - 102 -04 0.00 0.00 0.00 1/2 x (1.00) 0.5 36 459 - 102 -20 0.00 0.00 0.00 1/2 x (1.00) 0.5 37 459 - 102 -21 0.00 0.00 0.00 1/2 x (1.00) 0.5 Parcels 459- 101 -14 and 459- 102 -01 will continue to have overhead utilities along the backside of their properties and along the frontage on First Avenue. These two parcels aesthetic EBU shall equal one- third of the base aesthetic EBU (1/3 x 1.00 = 0.33 EBU). Assessment Assessor's Electrical Phone Cable Aesthetic Total Number Parcel Number EBU EBU EBU EBU EBUs 21 459 - 101 -14 0.00 0.00 0.00 1/3 x (1.00) 0.33 24 459 - 102 -01 0.00 0.00 0.00 1/3 x (1.00) 0.33 A guy pole will continue to remain along the backside of parcel 459- 102 -09; therefore, a credit will be applied against the parcel's Aesthetic EBU. Unlike the four Acacia Properties that will continue to have overhead facilities across the backside of their property, parcel 459-102-09 will not have power lines or transmission wires adjacent to its property. However, since the guy pole is situated as an obstacle to access the backside of the property, the credit applied to parcel 459- 102 -09 shall also equal one -half of the base aesthetic EBU for a final Aesthetic EBU equal to 0.50. In the future, if another assessment district is formed to remove the remaining overhead utilities adjacent to the Acacia Properties, the Acacia Properties and assessor parcel number 459- 102 -09 shall be included within the new assessment district and assessed for the remaining benefits not assessed within Assessment District No. 94. MuniFinancial Exhibit D - Page 4 City of Newport Beach ENGINEER'S REPORT UNDERGROUND UTILITY ASSESSMENT DISTRICT NO. 94 CITY OF NEWPORT BEACH EXHIBIT E - ASSESSMENT ROLL An assessment of the total amount of the costs and expenses of the improvements upon the subdivisions of land within the Underground Utility Assessment District No. 94, in proportion to the estimated special benefit to be received by the subdivisions from the Improvements, is set forth upon the following Assessment Roll filed with and made part of this Report. The Assessment Roll lists the assessor's parcel numbers within this Underground Utility Assessment District No. 94 by assessment number. The assessment numbers appearing on the Assessment Roll correspond with the subdivisions and parcels of land and their numbers shown on the Assessment Diagram (Exhibit F). Conclusion In conclusion, it is my opinion that the assessments forUnderground Utility Assessment DistrictNo. 94 are allocated in accordance with the direct and special benefit that each parcel receives from the Improvements. Signed by Willdan Assessment Engineer City of Newport Beach State of California Kenneth T. Steele, P.E. MuniPinancial Exhibit E - Page I City of Newport Beach Assessment Assessor's Electrical Phone Cable Aesthetic Total Direct Formation ITCC Confirmed and Number Parcel Number EBU EBU EBU EBU EBU Assessment Assessment Approved 1 052 - 011 -01 1.00 1.00 1.00 1.00 4.00 24,538.40 2,932.47 27,470.87 2 052 - 011 -03 1.00 1.00 1.00 1.00 4.00 24,538.40 2,932.47 27,470.87 3 052 - 011 -04 1.00 1.00 1.00 1.00 4.00 24,538.40 2,932.47 27,470.87 4 052 - 011 -05 1.00 1.00 1.00 1.00 4.00 24,538.40 2,932.47 27,470.87 5 052 - 011 -07 1.00 1.00 1.00 1.00 4.00 24,538.40 2,932.47 27,470.87 6 052 - 011 -08 1.00 1.00 1.00 1.00 4.00 24,538.40 2,932.47 27,470.87 7 052 - 011 -09 1.00 1.00 1.00 1.00 4.00 24,538.40 2,932.47 27,470.87 8 052 - 011 -12 1.00 1.00 1.00 1.00 4.00 24,538.40 2,932.47 27,470.87 9 052 - 011 -14 1.00 1.00 1.00 1.00 4.00 24,538.40 2,932.47 27,470.87 10 052 - 011 -20 1.00 1.00 1.00 1.00 4.00 24,538.40 2,932.47 27,470.87 11 052 - 011 -21 1.00 1.00 1.00 1.00 4.00 24,538.40 2,932.47 27,470.87 12 052 - 011 -22 1.00 1.00 1.00 1.00 4.00 24,538.40 2,932.47 27,470.87 13 052 - 011 -23 1.00 1.00 1.00 1.00 4.00 24,538.40 2,932.47 27,470.87 14 459 - 101 -02 1.00 1.00 1.00 1.00 4.00 24,538.40 2,932.47 27,470.87 15 459 - 101 -06 1.00 1.00 1.00 1.00 4.00 24,538.40 2,932.47 27,470.87 16 459 - 101 -07 1.00 1.00 1.00 1.00 4.00 24,538.40 2,932.47 27,470.87 17 459 - 101 -08 1.00 1.00 1.00 1.00 4.00 24,538.40 2,932.47 27,470.87 18 459 - 101 -09 1.00 1.00 1.00 1.00 4.00 24,538.40 2,932.47 27,470.87 19 459 - 101 -10 1.00 1.00 1.00 1.00 4.00 24,538.40 2,932.47 27,470.87 20 459 - 101 -12 1.00 1.00 1.00 1.00 4.00 24,538.40 2,932.47 27,470.87 21 459 = 101 -13 0.00 0.00 0.00 0.50 0.50 3,067.30 366.56 3,433.86 22 459 - 101 -14 0.00 0.00 0.00 0.33 0.33 2,044.87 244.37 2,289.24 23 459 - 102 -01 0.00 0.00 0.00 0.33 0.33 2,044.87 244.37 2,289.24 24 459 - 102 -04 0.00 0.00 0.00 0.50 0.50 3,067.30 366.56 3,433.86 25 459 - 102 -05 0.00 1.00 0.00 0.67 1.67 10,224.33 1,221.86 11,446.20 26 459 - 102 -06 1.00 1.00 1.00 1.00 4.00 24,538.40 2,932.47 27,470.87 27 459 - 102 -07 1.00 1.00 1.00 1.00 4.00 24,538.40 2,932.47 27,470.87 28 459- 102 -08 1.00 1.00 1.00 1.00 4.00 24,538.40 2,932.47 27,470.87 29 459- 102 -09 1.00 1.00 1.00 0.50 3.50 21,471.10 2,565.92 24,037.01 30 459 - 102 -10 1.00 1.00 1.00 1.00 4.00 24,538.40 2,932.47 27,470.87 MuniFinancial Exhibit E - Page 2 City of Newport Beach Assessment Assessor's Electrical Phone Cable Aesthetic Total Direct Formation ITCC . Preliminarily Number Parcel Number EBU EBU EBU EBU EBU Assessment Assessment Approved 31 459- 102 -11 1.00 1.00 1.00 1.00 4.00 24,538.40 2,932.47 27,470.87 32 459- 102 -12 1.00 1.00 1.00 1.00 4.00 24,538.40 2,932.47 27,470.87 33 459- 102 -13 1.00 1.00 1.00 1.00 4.00 24,538.40 2,932.47 27,470.87 34 459- 102 -14 1.00 1.00 1.00 1.00 4.00 24,538.40 2,932.47 27,470.87 35 459- 102 -15 0.00 1.00 0.00 0.50 1.50 9,201.90 1,099.68 10,301.58 36 938 - 01-418 0.00 0.00 0.00 0.50 0.50 3,067.30 366.56 3,433.86 37 938 -01 -430 0.00 0.00 0.00 0.50 0.50 3,067.30 366.56 3,433.86 TOTAL 37 29.00 31.00 29.00 32.33 121.33 744,331.35 88,951.72 $833,283.07 MuniFinanclal Exhibit E - Page 3 City of Newport Beach ENGINEER`S REPORT UNDERGROUND UTILITY ASSESSMENT DISTRICT NO. 94 CITY OF NEWPORT BEACH EXHIBIT F - ASSESSMENT DIAGRAM A Diagram showing the Underground Utility Assessment District No. 94, the boundaries, and the dimensions of the subdivisions of land within the Underground Utility Assessment District No. 94, as they existed at the time of the passage of the Resolution of Intention, is filed with and made a part of this Report and part of the assessment. Each of the subdivisions of land, parcels, or lots will be given a separate number on the Assessment Diagram (to follow after the resolution of intention), which corresponds with the assessment number shown on the Assessment Roll (Exhibit C). The Assessment Diagram in a reduced -scale format follows. MuniFinancial Exhibit F - Page 1 City of Newport Beach P'Na F ELNXNO. p54U11N i 65ELIIN 9 OM-0Ilq p53L11 -06 s m-011a F alr8 MO�ESOF IN WE OFFTMISOFWE� cwmENVw OF$W Ere. CITY U11M F 9YOII.IE M L1 19 I 10 W9LIIPo m¢alfs 't W 411 R V e PERIMFNOE]R OF SWEETS SEETS 4e 1.11. IS NL101N 19 01-0 9]9101-09 IB H9101L9 19 p 1.1E L !3 T9P101.19 b f9p)(Qi1 N E9.1@N u Y9.1 f6-06 ID 91(PN b f9ciRW b m b S ASSE99AEMWAS ECRSBYTECE`SOFICILC£ NON WNEWPCRT BFM91 pN TRELOTRflEGF SY1p PaA6S pF UHp9MMNCH m18 f5F1R1E b a5&M1P1] u41RN u Wg91 PiS.499MEMp1AON% 8NpA952= 36 msq�le 3i I• ® B MuniFinancial ASSESSMENT DIAGRAM OF UNDERGROUND UTILITY ASSESSMENT DISTRICT NO. 94 SNEET IOF naBE95MEM DISTRICT BOUNMRY PMCEL ME CITY OF NEWPORT BEACH LOT NUMBED OTIUT'POLETOREMAIN .. MILTTY FOLE TO BE REMOYEp COUNTY OF ORANGE 0 MINSSMENTNUMOER MO�ESOF IN WE OFFTMISOFWE� cwmENVw OF$W Ere. CITY STATE OF CALIFORNIA e PERIMFNOE]R OF SWEETS SEETS CRY OF NEWPORT 8EM91 L PImE GFmE dtt0.EP1t O��F diY OF NFNPoRI SFACN. u W. MYOOE FJRSLAVE S ASSE99AEMWAS ECRSBYTECE`SOFICILC£ NON WNEWPCRT BFM91 pN TRELOTRflEGF SY1p PaA6S pF UHp9MMNCH m18 NA �N.x Wg91 PiS.499MEMp1AON% 8NpA952= I• ® A R p 1ep A M WM UO lMROUwERE nECrnnm iN me Gff ®aB�eR O1nORanl allo _ _ _ _ _ _ _ A .. 51vERINTEnoENTaF SNEEr9w Sao crrr axTlE_onr © ® OF WE OF LE6MP➢E ENDOW 9p33AEHT RpLLRFCOM6pwmE OFpGE GFmES11PFANTFNpEHT OP e}ppE1S P00.mFF]gLNON MO PGVNBT FAGI c IOMENTDAQlENT1FNEO PPA[EL81pYM CHmISA59E&9AENidAGFNA. Q ] •. z © r n n yj q CLFRH SCNTOFNI N 01M81ACN gCWP7EpINppl ®MT6PF.d£3T pFT1ECITYpF NE9FU0.i9FAd , :.n m19�MYOF ,dpI, RTMFNO9R GF I Q x a n OY.iOdt_.M..1T MIM➢SpF .' A V M9ESaMEfR.YD WMMLNI1Y FAdlINEL 01afPoCTSRT PgpE151 a I I Q (% � 0 ® ® 0 ® © © Q INTRE GFFlCE pFT1E CWMYRECGPCE0. Ci THE pF CNFpV110. Q Z WIIHIY pRINGE.9TAlRff 6i W NOT. W.: 1_ � m rtgl pllY. WUMY LlEW9NECW0FA ® BY CFFVTY. CGIINLYNECp0.0FA wuNb GFO.GE O O STRTEOF.FO. �JO � C�� � C sY HGTE FCRPatTCYUAB pFmELNFAa1p BIMFH9KN19KA49E59CRe O O/\ Rry� ' PMCEL9.REFENEH418 MNETGmE NAPS 6�mE GWWGfiCWNIY a1599dL WxIdIMRP891Nll G0VENTIFd9Y1pFTM491 @IATHp O y 1 mwfiro m \ � \ EYBJPT PERGGYERHNEM C[GEN ®. � LEBEHO naBE95MEM DISTRICT BOUNMRY PMCEL ME _______ LOT LINE LOT NUMBED OTIUT'POLETOREMAIN .. MILTTY FOLE TO BE REMOYEp 0 MINSSMENTNUMOER ENGINEER'S REPORT UNDERGROUND UTILITY ASSESSMENT DISTRICT NO. 94 CITY OF NEWPORT BEACH EXHIBIT G — MAXIMUM ANNUAL ADMINISTRATION COST ADD -ON In addition to, or as a part of the assessment lien levied against each parcel of land within the District, each parcel of land shall also be subject to an annual administrative cost assessment to pay costs incurred by the City, and not otherwise reimbursed, which result from the administration and collection of assessments, the administration and registration of any bonds, and the administration of reserve or other related funds. The maximum annual total amount of such annual administrative cost assessment for each parcel within the District will not exceed $150.00. Each parcel's share of the administrative cost assessment shall be computed based on the parcel's proportionate share of its annual assessment (not to exceed $150.00). MuniFinancial Exhibit G - Page 1 City of Newport Beach ENGINEER'S REPORT UNDERGROUND UTILITY ASSESSMENT DISTRICT NO. 94 CITY OF NEWPORT BEACH EXHIBIT H — INDIVIDUAL SERVICE CONNECTIONS The improvements will be designed and constructed by the Southern California Edison Company (electric), AT &T (telephone) and Time Warner (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, AT &T and Time Warner respectively. Each owner of property located within the 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 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 180 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. MuniFinancial Exhibit H - Page 1 City of Newport Beach ENGINEER'S REPORT UNDERGROUND UTILITY ASSESSMENT DISTRICT NO. 94 CITY OF NEWPORT BEACH EXHIBIT I — PUBLIC PROPERTIES All streets in the boundaries of the district are public streets. There are no other public owned properties within the boundaries of the district. MuniFinancial Exhibit I - Page 1 City of Newport Beach ENGINEER'S REPORT UNDERGROUND UTILITY ASSESSMENT DISTRICT NO. 94 CITY OF NEWPORT BEACH EXHIBIT J 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. 94 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. 94 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. 4. All environmental evaluation proceedings necessary for the formation of Assessment District No. 94 have been completed to my satisfaction, and no further environmental proceedings are necessary. EXECUTED this day of 12007, at Newport Beach, California. Stephen G. Badum, P.E. Director of Public Works MuniFinancial Exhibit) -Pagel City of Newport Beach ENGINEER'S REPORT UNDERGROUND UTILITY ASSESSMENT DISTRICT NO. 94 CITY OF NEWPORT BEACH EXHIBIT K RIGHT -OF -WAY CERTIFICATE CITY OF NEWPORT BEACH COUNTY OF ORANGE SPATE 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. The city of Newport Beach has 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 Underground Utility Assessment District No. 94 (hereinafter referred to as the "Assessment District "). 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. All works of improvement as proposed to be constructed within said Assessment District will be constructed within public rights -of -way, land or easements owned by said City at the time of the construction of the works of improvement. EXECUTED this day of , 2007, at Newport Beach, California Stephen G. Badum, P.E. Superintendent of Streets MuniFinancial Exhibit K - Page 1 City of Newport Beach CITY OF NEWPORT BEACH 3300 Newport Boulevard - P.O. Box 1768 Newport Beach, CA 92658 -8915 (949) 644 -3311 NOTICE OF EXEMPTION To: F-1 Office of Planning and Research 1400 Tenth Street, Room 121 Sacramento, CA 95814 County Clerk, County of Orange ❑ x Public Services Division P.O. Box 238 FILED FEB t 12007 TOM DALY. CLERK - RECORDER From: City of Newport Beach Public Works Department 3300 Newport Boulevard - P.O. Box 1768 Newport Beach, CA 92658 -8915 (Orange County) Date received for filing at ; PPA 91 inns NameofProject: Assessment District No. 94 TOM DALY;CLERKpECORpER By Project Location: Pacific Drive, Newport Beach, CA Specific: Area bounded by First Ave. to the North, Avocado Ave. to the West, Bayside Dr. to the South, and Begonia Ave. to the East. 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, orange County Tom Daly, Clerk- Recorder Exempt Status: (check one) FEE ❑ Ministerial (Sec.21080(b)(l);15268); 200785000139 02:15PM 02/21/07 ❑ Declared Emergency (Sec. 21080(b)(3); 15269(a)); 90 140 Z01 ❑ Emergency Project (Sec. 21080(6)(4); 15269(b)(c); 0.00 0.00 0.00 o.00 o.00 o.00 o.00 o.00 0 Categorical Exemption. State type and section number. Class 2: Replacement and reconstruction: Section 15302. ❑ Statutory Exemptions.. State code number: ❑ General Rule (Sec. 1506 1(6)(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 restored to the condition prior to undergrounding does not have a significant effect on the environment. Name of Public Agency Approving Project: City of Newport Beach Date of Approval: Name of Person or Agency Carrying Out Project: Newport Beach Public Works Department Contact Person: Patrick L. Arciniega PE Title: Associate Civil Engineer Signature: �.) Tel.No. (949) 644 -3311 Date: Q. 21.2007 IEM H%~4wm4eoa.WW0*.1a6.wr ws4.o0c Assessment District No. 94 Correspondence Received i q g4 ,25 Tel. (44`t� 675_ 0633 F" u. 675 ZgI2 r,. J / ` / r R�CEIVE� APR T 6 2007 Public Works Department City of Newport Beach 2320 �9irv� C�i� Ca.g2625 i7sm33 F=• 67r2412 3l, 2007 i J /i r i r RECEIVEE APR "0 A 2007 Public Works Department City of Newport Beach RECEIVED Z20 JOHN & DONNA DAVISON 2320 Pacific Drive MAR 9 9 2007 Corona del Mar, CA 92625 Tel: 949 -675 -0633 - Fax: 949-675-2912 tniu A uneflt 1. City of Newport Beach March 6, 2007 City of Newport Beach Public Works Department 3300 Newport Blvd. Newport Beach, CA 92663 Attn: Patrick Arciniega, P.E. Subj: Proposed Assessment Dist. No. 94 Dear Sir: During the past 30 plus years as owner resident of 2320 Pacific Drive, we have always been in favor of all aesthetic improvements to Pacific Drive. However, the cost to remove the ugly utility poles and go underground has increased by over 500 % over the period of time we have lived on Pacific Drive. Never, over the several times we have addressed this issue, were we made aware of the costs to be borne by the property, owner for the work from the main line to the service panel, in our case about 120 L.F. Our backyard is a beautifully landscaped garden and I estimate a cost of $15,000.00 to protect and relocate plants, remove and reconstruct 1,600 S.F. of trench, install conduit, pull wires, backfill, compact, provide and install all electrical wiring, circuit breakers, panel and restoration of all existing improvements. My neighbors are elderly women in their mid 80's and plus. The insidious costs to us should be explained by the city in more detail.. Perhaps it would be feasible to maintain the overhead service in the alley from the retained pole located near lot No. 4081/2. The aesthetics gained by going underground in the alley between Acacia and Begonia is insignificant considering that the most unsightly feature is to be retained, that is the main power pole at lot No. 408'/:. I also mention out of town owners of lot 401 Begonia, 2319 Pacific Dr., 2316 Pacific Dr. may not be aware of the proceedings and I am sure you will notify them at ballot time. There are others I do not know. Thank you for your consideration in this matter. Sincerer, John � nna Daviso `� March 7, 2007 City of Newport Beach Public Works Department 3300 Newport Blvd. Newport Beach, Ca 92663 Attn: Patrick Arciniega, P.E. Subj: Proposed Assessment Dist. No. 94 Dear Sir: MAR 12 2007 Public Works Deportment City of Newport Beach As a long time property owner at 2324 Pacific Dr. I certainly concur with the Davison's. The proposed costs to me would present an extreme hardship and then the most undesirable poles in the alley would still remain. I urge you to consider the feasibility of maintaining the overhead service in the alley. The bottom line is that many of us in this block of Pacific Dr. simply cannot afford the current proposal and do not want this expense. Sincerely, Melody Orr 2324 Pacific Dr. Corona del Mar, Ca. 92625 Tel: 949 -673 -0635 Fax: '949=673 -1449 PATRICIA BELL 3027 LANES BAY COSTA MESA, CALIFORNIA 92626 (714)540 -6830 CITY OF NEWPORT BEACH Public Works Department 330 Newport Blvd, Newport Beach, California 92663 ATTN: Patrick Arcimega, P.E. patt(tttost@sbcglobd .net April 30, 2007 RECEIVED APR 3 02007 Public Works Department City of Newport Beach RE: Proposed Assessment District No. 94 Property Address: 411 Begonia Avenue, Corona del Mai Homeownw. Janet 11. Befl Dear Mr. Arciniega: t The City OfNewport Beach is currently Bering the above captioned Assessment, which would effect property that is owned by my Mother, Ianet It Bell. My Mother is unable to take care of this mattes' herself so I am writing on her behalf We strenuously object to this assessment for two main reasons: • The Cost.is prohibitive and would seriously impact my Mother and her ability to stay in her house; • The property vve own derives absolutely rto benefit from this assessment My Mother is currently 86 years old — she will be 87 in September — and has lived in her current home on Begonia for over 47 years. Mother loves her home and sire loves Corona del Mar. The one thing she has asked of her children is that she be allowed to stay in her home as long as she is physically capable of doing so_ We have every intention of bononng her wish — unless circumstances take the decision out of our hands. This Assessment is one such "circumstance'. Mother lives on a fired income and the only reason she is able to stay in her home in a beautiful and expensive place him Corona del Mar is that the mortgage on the house has been paid off for many years and the property taxes continue to remain affordable. By your own estimates of the cost of the above - reference assessment, Mother would owe in excess of $27,000 for the assessment alone and another $5,000 to $15,000 for costs of connecting to the utilities and other miscellaneous other costs Worst case scenario -- she could be asked to ome up with over UZ OW CO. There are only.twro ways we could come up with this money. a) borrowing against the house and b) borrowing the money from the City: The first option would result in a motdhly payment that Mother cannot afford. Uwe borrow the money fiom the City they will charger f i I i Td Wd55:Z0 L00Z 6Z '-dd 0£890757TL: 'ON Xtld WOad i her from 8% to ld% interest and herPropeny Taxes will TRIPLE. As you can imagine, either option is very frightening to her - and to us. Still, if there was any benefit received from this Assessment we might feel diXerently_ If for instance, the entire town of Corona del Mar were to decide to beautify by putting utilities underground, we would try our hardest to pitch in. But that is NOT the case here. This is a case where a few benefit - and a Iot of others are being asked to "foot the bill". There is a reason that only residents living on Pacific Drive signed the original Petition - only residents on Pacific Drive will benefit in any "significant way! Most of the utility poles on the street are on Pacifica and these poles are considered "unsightly- because they interfere with the view most of the residents on the East side of the street have of the ocean_ Beautifying their view - and thus enhancing the value of their property - is the only reason I can see to spend this kind of money to bury power poles. My Mother, as well as her neighbor at 415 Begonia, however gain nothing. Their view is of the Park (and there are plenty of power poles to look at there - all ofwhich will. remain) and their utility poles are in the alley behind their houses. Only two ofthese 4 poles will be placed underground which makes any benefit that anyone could argue to having a power pole in the alleyway removed - Completely unconvincing. Theo property values will not increase, the We ability of their homes will not improve - nothing will be gained (I'll leave others to fight their own battle, but it should be noted that the 8 houses on Acacia and the one on Avocado also receive no benefit). It would be unconscionable for the City to ask my Mother and others in her situation to pay over $40,000 for something that only benefits others — and from which they receive no benefit themselves. If residents on Pack want their view improved, they should pay the entire. cost. Please do not let residents such as my Mather and there are menu others involved who are eldedv and Irving on faced incomes -become "collateral damage" to a one block long beautification plan. We count on.ypnr protection as we are outnumbered by Pacific Drive rodents_ I thank you for reading and considering this letter. i£you have any questions at all please call me at the number on my letterhead (or email). I hope to be at the hearing on May 8a'. (711ACL4, BELL For JANET H. BV-LL Zd WdSS:ZO LOOZ 6Z -.dd 0£690VSVTL: 'ON Xdd : WOad City of Newport Beach NO. BA- 07BA -071 BUDGET AMENDMENT 2006 -07 f HCT ON BUDGETARY FUND BALANCE: r I Increase Revenue Estimates X Increase Expenditure Appropriations AND Transfer Budget Appropriations SOURCE: from existing budget appropriations X from additional estimated revenues from unappropriated fund balance EXPLANATION: This budget amendment is requested to provide for the following: AMOUNT: $7os,a55.00 Increase in Budgetary Fund Balance Decrease in Budgetary Fund Balance PX No effect on Budgetary Fund Balance To increase revenue estimates and expenditure appropriations for proposed Assessment District # 94 - Pacific Drive - Corona del Mar. ACCOUNTING ENTRY: BUDGETARY FUND BALANCE Fund Account REVENUE ESTIMATES (3601) Fund/Division Account 4094 6994 EXPENDITURE APPROPRIATIONS (3603) Division Account 74094 9801 74094 9802 74094 9805 74094 9813 74094 9814 74094 9815 74094 9817 74094 9818 74094 9823 74094 9825 Description Description Assessment District # 94 - AD # 94 Bond Sale Description AD # 94 - Electric Construction AD # 94 - Phone AD # 94 - Construction Contingency AD # 94 - Construction Inspection AD # 94 - City Administration AD # 94 - Underwriters Discount AD # 94 - Bond Counsel AD # 94 - Paying Agent Fees AD # 94 - Financial Advisor AD # 94 - Incidental Contingency Signed: /C./ (—, 'r- Financial Approval: Administrative Services Director Signed Sr .d: Administrative Approval: City Manager City Council Approval: City Clerk Amount Debit Credit $706,855.00 $351.957.00 $191,017.00 $52,581.00 $11,000.00 $13,000.00 $8,205.00 $20,000.00 $2,000.00 $12,500.00 $7,500.00 Automadc Date Date Date City of Newport Beach NO. BA- 07BA -071 BUDGET AMENDMENT 2006 -07 AMOUNT: $7os,ass.00 EFFECT ON BUDGETARY FUND BALANCE: % X Increase Revenue Estimates Increase n Budgetary Fund Balance �X Increase Expenditure Appropriations AND Decre a in Budgetary Fund Balance Transfer Budget Appropriations PX No effect on Budgetary Fund Balance SOURCE: j from existing budget appropriations � i X from additional estimated revenues % from unappropriated fund balance t=nriu IMAtrvty: 9801 This budget amendment is requested to provide for the following: To increase revenue estimates and expenditure appropriations for pnjse d ssessment District # 94 - Pacific Drive- Corona del Mar. 74094 9805 ACCOUNTING ENTRY: BUDGETARY FUND BALANCE Fund Account REVENUE ESTIMATES (3601) Fund /Division Account 4094 6994 EXPENDITURE APPROPRIATIONS (36 Division Account 74094 9801 74094 9802 74094 9805 74094 9 74094 9 14 74094 9 74094 1 74094 9818 74094 9823 74094 9825 V r r # 94 - AD # 94 Bond Sale AZ # 94 - E)bctric Construction A 94 - hone A # 4 Construction Contingency # Construction Inspection A City Administration AD # Underwriters Discount D 94 - Bond Counsel A 94 - Paying Agent Fees A # 94 - Financial Advisor D # 94 - Incidental Contingency Amount Debit Credit $706,855.00 $351,957.00 $191,017.00 $52,581.00 $11,000.00 $13,000.00 $8,205.00 $20,000.00 $2,000.00 $12,500.00 $7,500.00 • Automatic System Entry. Signed: "d i Financial Approval: 6ministratiWServices Director Date Signed: 'el O Administrrat' ee (/ Ap al:city Mannaaper Signed: v d /) , � hCj to City Council Ap roval: City Clerk / Date • • CITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 7 March 13, 2007 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. 94 — PACIFIC DRIVE — CORONA DEL MAR FOR UNDERGROUNDING UTILITIES AND DESIGNATION AS AN UNDERGROUND UTILITIES DISTRICT RECOMMENDATIONS: Adopt the following Resolutions for Proposed Assessment District No. 94: a. Resolution No. 2007- _ making finding on a petition for, adopting a map showing the proposed boundaries of, and making appointments for proposed Assessment District No. 94. b. Resolution No. 2007- declaring intention to order the construction of certain improvements in proposed Assessment District No. 94; 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 designating the area an underground utilities district. c. Resolution No. 2007- _ giving preliminary approval to the report of the assessment engineer, setting the time and place for a public hearing as May 8, 2007; and ordering the intention of assessment ballot procedure for Assessment District No. 94. d. Resolution No. 2007- _approving contracts for utility improvements for Assessment District No. 94. 2. Approve the Bond Counsel Agreement with Robert Hassell. HISTORY: Owners of property located in Proposed Assessment District No. 94 submitted petitions to the City requesting the formation of a special assessment district to underground overhead utilities. On April 13, 2004 City Council appropriated $19,035.00 to hire MuniFinancial as the assessment engineer for this proposed project. On May 11, 2004 MuniFinancial certified that owners representing approximately 62 percent of the assessable property area within Proposed Assessment District No. 94 had signed a petition for undergrounding overhead utilities. At Staffs request, City Council Proposed Assessment Diseiet Na 94 Pacific DrVm In Corona del Mar for Undergrounding Utilities March 13.2007 Page 2 appropriated $18,060.00 on July 27, 2004 to facilitate the undergrounding of utilities. • $11,260.00 was expended to prepare SCE engineering plans and $6,800.00 was expended to prepare AT&T engineering plans. City Council has approved a total of $37,095.00 to date for the preliminary stages of this project. DISCUSSION: Assessment District No. 94 is being proposed 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 their 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. 94 is estimated as follows: ITEM ESTIMATED COST Cost of Construction $615,331 Incidental Costs and Expenses $85,035 Financing (Bond) Costs $45,498 Federal Income Tax Component of Contribution (ITCC) $89,135 Estimated Total Cost: $835,000 • 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 since underground utility districts are undertaken at the request of the community for purposes of community aesthetics and public safety, and 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. In the event 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 to reimburse the full amount of the determined tax liability, plus interest, penalties, fees, and related costs. In that case the City may need to sell a second issue of the bonds. if necessary, to pay SCE within 60 days after they notify the City of Newport Beach. The estimated ITCC tax amount is $89,135.00. The City Attorney's Office has reviewed SCE's request to have the preceding statement included in the Assessment District Report. It was determined that the City would not incur any tax liability. In addition to the assessment, property owners will be responsible for converting their service connection to receive underground service. These private property costs can vary greatly depending on the condition and location of their current electrical service. Property owners are encouraged to contact licensed electrical contractors to determine their individual needs. The Bond Reserve will be seven percent for this district. • Proposed Assessment District No, 94 Pacft Drive in Corona del Mar for Underpround ft Utilities March 13.2007 Page 3 • Property owners who pay assessments in cash will receive a discount of approximately five percent, which represents the financial cost of issuing and servicing bonds. The following Is a tentative schedule for proposed Assessment District No. 94: • Property Owner Information Meeting February 20, 2007 • Resolution of Intention March 13; 2007 • Public Hearing May 8, 2007 • Public Utilities Commence Work August 6, 2007 • City Notifies Property Owners to Install Service January 1, 2008 Connections • Property Owners Complete Conversions June i, 2008 • Public Utilities Begin to Remove Overhead November 2008 Structures • Public Utilities Finish Removing Poles and January 2009 Overhead Structures The Assessment Engineers assessment methodology uses equivalent benefit units (EBU's) as a means to apportion assessments within this District. This assessment methodology assigns one benefit unit per each underground utility service plus an overall community aesthetic benefit for a total of 4 EBU's. The total cost of the project is divided by the total number of EBU's for the project resulting in a 'cost per EBU'. A typical lot receives an assessment based on all 4 EBU's. The average cost for a • standard assessment is: $27,470.87 Some exceptions were taken for lots that did not receive all three utility services, and some lots only received an EBU based on the aesthetic component. These exceptions are detailed in Exhibit D — Method of Assessment in the Engineer's Report There are six lots along Acacia Ave., the 'Acacia tots', that will not receive underground services, however they will receive a benefit from the overall aesthetics of the undergrounding of the lines along Acacia Ave. They were assessed 1 EBU for the aesthetic component and the average assessment is: $5,913.87. One wooden guy pole will remain in the district to provide tension support for the remaining overhead lines in the alley between Acacia Ave. and Begonia Ave. The parcel that will have the remaining guy pole was given a discount of .25 for the aesthetic EBU. The estimated assessment ithth the ITCC tax component ranges from $27,470.87 to $2,289.24, with the average assessment being $22,567.57. The estimated assessment without the ITCC tax componenet ranges from $24,538.40 to $2,044.87, with the average assessment being $20,158.51. Plans and specifications were prepared by SCE, AT&T, and TimeWarner Communications. Attached is a sketch showing the boundary of the proposed Assessment District and the utilities to be undergrounded. Environmental Review: A Notice of Exemption was completed February 21, 2007, and filed with the County • Recorder on February 21 , 2007. Proposed Assessment District No. 94 Padfic Drive in Corona del Mar for Undergmund6g ufififies March 13, 2007 Page 4 Prepared by: Submitt Patrick L. Arvin' a PE �S.� e . Badum � Associate Civil gineer "Public orks Director Attachments: t. Exhibit Showing District Boundaries 2. Resolution Receiving Petition 3. Resolution of Intention to order construction of certain improvements 4. Resolution preliminary approval of Engineer's Report, setting public hearing and initiating ballot procedures 5. Resolution approving utility improvement contracts 6. Utility Contracts for SCE and AT &T 7. Bond Counsel Agreement 8. Engineer's Report • • • W .412 z,1 408 Q [- . I�1 iO ,al � � I i o N 3 V N PACIFIC N N N N ! N FIRST I AVENUE 1 417 I4116 -�1 2321 415 j ! 4 4 414112 : 421 1/2 421 413 W 412 412112 �1 41s I r t% Q 1410 4101/2 an i' �W N Q 408 C AT&T IQ11L I! AT&T MY) 415 Z ' I I7r j U W 1 U zz N BOUNDARY OF PROPQSED N ASSESSEMENT DISTRICT N N Ln N ) N HOMES ALONG BOTH SIDES OF PACIFIC C 0 POLES TO BE REMOVED Q POLES TO REMAIN IN PLACE DISTRICT N4.94 ! N OVERHEAD LINES TO BE REMOVED - -- - - -- OVERHEAD LINES TO REMAIN IN PLACE EXHIBIT'A' RESOLUTION NO. 2007 - • A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH RECEIVING A PETITION FOR, ADOPTINGA MAP SHOWING THE PROPOSED BOUNDARIES OF, AND MAKING APPOINTMENTS FOR PROPOSED ASSESSMENT DISTRICT NO. 94 (PACIFIC DRIVE - CORONA DEL MAR) 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. 94 (Pacific Drive - Corona del Mar) (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 terns 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"); WHEREAS, this legislative body finds that 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; WHEREAS, this legislative body 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 are 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 and 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 MuniFinancial is hereby appointed the Assessment Engineer forthe Assessment District proceedings and the contract for services submitted is hereby approved. SECTION 8. The firm of Fieldman Rolapp & Associates is hereby appointed the Financial Advisor for the Assessment District proceedings and the contract for services submitted is hereby approved. SECTION 9_ Robert E. Hessell, attomey at law, is hereby appointed to act as Bond Counsel for the Assessment District and the contract for services submitted is hereby approved. SECTION 10. This legislative body hereby authorizes the establishment of a special improvement fund for the Assessment District and into the improvement fund shall be placed all proceeds from the sale of Assessment District bonds and cash collections. In order to expedite the improvements to be made under the 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 Califomia. • 2 PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of • the City of Newport Beach held on the 13th day of March, 2007, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: City Clerk 3 Mayor 0 • • RESOLUTION NO. 2007-. RESOLUTION DECLARING INTENTION TO ORDER THE CONSTRUCTION OF CERTAIN IMPROVEMENTS IN PROPOSED ASSESSMENT DISTRICT NO. 94(PACIFIC DRIVE. CORONA DEL MAR), 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 AREAAN UNDERGROND UTITLITES DISTRICT WHEREAS, this legislative body has instituted proceedings for the formation of a special assessment district designated as Assessment District No. 94 (Pacific Drive - Corona del Mar) (hereinafter referred to as the "Assessment District") to provide for the conversion of certain overhead electrical and communication facilities to underground locations, together with appurtenances and appurtenant work in connection therewith, pursuant to the terms and provisions of the "Municipal Improvement Act of 1913 ", being Division 12 of the Streets and Highways Code of the State of California (the "Act°); WHEREAS, this legislative body desires to ascertain whether the area comprising the Assessment District should also be designated an underground utilities district pursuant to Chapter 15.32 of the Code of Ordinances of the City of Newport Beach (the "City"); • WHEREAS, the conversion of the overhead electrical and communication facilities to underground locations, together with 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; 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; WHEREAS, the assessment proceedings for the Assessment Districtwere initiated by owners of the real property within the Assessment District; NOW THEREFORE, Be it Determined, Resolved, and Ordered as follows: DECLARATION OF INTENTION SECTION 1. The public interest and convenience require, and it is the intention of this legislative body to order, pursuant to the Act, the construction of the public Improvements hereinafter described in and forthe Assessment District, to assess the cost thereof against the real property specially benefited thereby, and to designate the area an underground utilities district. • DESCRIPTION OF IMPROVEMENTS • SECTION 2. The public improvements to be constructed and the manner of the construction are generally described as follows: A. The improvements generally consist of the conversion of existing overhead electrical and communication facilities to underground locations within the area shown on the Map, together with appurtenances and appurtenant work thereto, all to serve and specially benefit the properties within Assessment District No. 94 (Pacific Drive - Corona del Mar). 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 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 propertywithin the Assessment District, and this legislative body hereby makes the expenses of the construction of such improvements chargeable upon the Assessment District that 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, entitled "Proposed Boundaries Assessment District No. 94 (Pacific Drive - Corona del Mar)," was previously approved by this legislative body, exhibits the property specially benefited and proposed to be assessed to pay the costs and expenses of the construction of the work and improvements, and is on file with the transcript of these proceedings.-For all particulars as to the boundaries of the Assessment District, reference is hereby made to the boundary Map. 2 • • REPORT OF THE ASSESSMENT ENGINEER SECTION 3. The proposed improvements are hereby referred to MuniFinancial (the `Assessment Engineer "), who is hereby directed to make and file a report as required by the Improvement Act, The Special Assessment Investigation, Limitation, and Majority Protest Act of 1931, Article XIIID 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 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; E. The description of the Improvements proposed to be constructed under these proceedings. When any portion or percentage of the assessable costs and expenses of the construction of the improvements is to be paid from sources other than assessments, the amount of such portion or percentage shall first be deducted from the total estimated costs and expenses of such construction, and such assessment shall include only the remainder of the estimated costs and expenses. The assessment shall refer to the subdivisions by their respective numbers as assigned pursuant to subparagraph D above. 1,0901911 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, will be issued hereunder in the manner provided'In the Improvement Bond Act of 1915 (Streets and Highways Code Section 8500, of seq.), which bonds shall be issued for a term not to exceed the legal maximum temp as authorized by law, namely, thirty -nine (39) years from the second day of September next succeeding twelve (12) months from their 3 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. The principal amount of the bands maturing each year shall be other than an amount equal to an even annual proportion of the aggregate principal of the bonds, and the amount of principal maturing in each year, plus the amount of interest payable in that year, will be generally an aggregate amount that is equal each year, _except for the first year's adjustment. Pursuant to the provisions of the Improvement Act and specifically Streets and Highways Code Section 10603, the Treasurer is hereby designated as the officer to collect and receive the assessments during the cash collection. period. CONSTRUCTION SECTION 5. Except as may otherwise be provided for in the issuance of the bonds described above, all of the improvements shall be constructed pursuant to the provisions of the Act. SURPLUS FUNDS SECTION 6. If any excess shall be realized from the assessment, it shall be used, in such amounts as the legislative body may determine, in accordance with the provisions of law for one or more of the following purposes: A. Transfer to the general fund; provided that the amount of any such transfer • shall not exceed the lesser of One Thousand Dollars ($1,000.00) or five percent (5%) of the total from the Improvement Fund; B. As a credit upon the assessment and any supplemental assessment; C. For the maintenance of the improvements; or D. To call bonds. IMPROVEMENT FIND SECTION 7. The legislative body hereby establishes a special Improvement fund identified and designated by the name of this Assessment District, and into such fund . monies may be transferred at any time to expedite the construction of the authorized Improvements, and any such advancement of funds is a loan and shall be repaid out of the proceeds of the sale of bonds as authorized by law. 4 • • MULIttuirvL�b mrvUUinrra 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: PatrickArciniega, Associate Civil Engineer City of Newport Beach P.O. Box 1794 Newport Beach, California 92658 (949) 644 -3347 PUBLIC PROPERTY SECTION 9. All public property shall be subject to assessment in these proceedings. RIGHTS -0 F -WAY SECTION 10. The public interest, convenience and necessity requires that certain land, rights -of -way or easements be obtained in order to allow the works of improvement as proposed for this Assessment District to be accomplished. The Assessment Engineer's Report, upon adoption, shall provide certification that the land, rights -of -way or easements have been acquired or will be acquired as part of the • construction of the improvements. NO CITY LIABILITY SECTION 11. This legislative body hereby declares the City will not obligate itself to advance available funds from the City treasury to cure any deficiency that may occur in the bond redemption fund for the Assessment District. ANNUAL ADMINISTRATIVE ASSESSMENT SECTION 12. It is hereby declared that this legislative body proposes to levy an annual assessment pursuant to Section 10204 of the Streets and Highways Code of the State of California, such annual assessment to pay costs incurred by the City and not otherwise reimbursed which result from the administration and collection of assessments and from the administration and registration of assessment bonds and the related bond funds, UTILITY IMPROVEMENTS SECTION 13. Pursuant to Section 101 10 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, prior to ordering the construction of improvements, to enter into an agreement with each public utility company or public agency, or any • combination thereof with. respect to the improvements to be owned, controlled or managed by the utility or agency. PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Newport Beach, held on the 13th day of March, 2007, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: City Clerk A Mayor LJ • • RESOLUTION NO. 2007-, RESOLUTION GIVING PRELIMINARY APPROVAL TO THE REPORT OF THE ASSESSMENT ENGINEER FOR ASSESSMENT DISTRICT NO. 94 (PACIFIC DRIVE - CORONA DEL MAR) AND AN UNDERGROUND UTILITIES DISTRICT, SETTING A TIME AND PLACE FOR A 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. 94 (Pacific Drive - Corona del Mar) (hereinafter referred to as the "Assessment District ") to provide for the conversion of certain overhead electrical and communication facilities to underground locations, together with appurtenances and appurtenant work in connection therewith, pursuant to the terms and provisions of the "Municipal Improvement Act of 1913 ", being Division 12 of the Streets and Highways Code of the State of California (the "Act "); 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"); • WHEREAS, a resolution of intention (the "Resolution of Intention ") for the formation of the Assessment District and the utility conversion was previously adopted by this legislative body; WHEREAS, there has been prepared and filed with this legislative body for its consideration a Report of the Assessment Engineer (the "Report") as required by the Resolution of Intention, Sections 10203 and 10204 of the Act, The Special Assessment Investigation, Limitation, and Majority Protest Act of 1931, 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 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 May 8, 2007 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. 2 • • At the conclusion of the public hearing, the City Council shall cause the assessment ballots timely received to be opened and tabulated. If a majority protest exists, the City Council shall not impose an assessment within the assessment district. A majority protest exists if, upon the conclusion of the public hearing, assessment ballots submitted in opposition to the assessments within the assessment district exceed the ballots submitted in favor of such assessments., In tabulating the ballots, the ballots shall be weighted according to the proportional financial obligation of the affected property. SECTION 5. The City Clerk is hereby directed to mail or cause to be malted, 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 13th day of March, 2007, by the following vote: AYES: • NOES: ABSENT: U *3f—",' Mayor ATTEST: City Clerk • 3 CITY OF NEWPORT BEACH RESOLUTION NO. 2007 - • RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH APPROVING CONTRACTS FOR UTILITY IMPROVEMENTS FOR ASSESSMENT DISTRICT NO. 94 (PACIFIC DRIVE - CORONA DEL MAR) 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 Califomia, 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. 94 (Pacific Drive - Corona del Mar) (hereinafter referred to as the "Assessment District"); 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; 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, Ordered, and Resolved as follows: • SECTION 1: The above recitals are all true and correct. SECTION 2. The agreements submitted to this legislative body relating to the installation of certain improvement facilities for the Assessment District, which improvements will be under the ownership, management and control of other public agencies or regulated public utilities, are hereby approved for execution and delivery. The agreements are the following: Southern California Edison - utility agreement AT &T - letter agreement SECTION 3. Immediately upon execution, conformed copies of said agreements shall be transmitted to the office of the respective public agency or utility company, together with a copy of this Resolution. r1 U • PASSED, APPROVED, and ADOPTED this 13th day of March 2007. AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: City Clerk • • 2 AGREEMENT FOR REPLACEMENT • OF OVERHEAD WITH UNDERGROUND DISTRIBUTION FACILITIES (Installation by Un3ity) . TIRS AGREEMENT, made this 13th day of January, 2007. between SOUTHERN CALIFORNIA EDISON COMPANY, a corporation. 'Ieteinafter called 'Utility', and the party or parties whose names at subscribed hereunder as'AppficaraC, Wf1NESSETH: WHEREAS, Applicants have requested Utility, pursuant to Section B. of Uttlity'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 Orangecoumy, State of California, substantially described as follows Bayside / Pacific 1 Begonia Newport Beach, CA 92660 6633 - 7113 4. 7114.6633 -7114 4.7115 and as shown on the rap attached hereto and made a part hereof; and a. It is necessary for all property owners served from Utilitys overhead fitcili les to be removed to agree in writing to perform the wiring changes on owners'premises so that service may be famished ftom Utflity's underground distribution system in accordance with Utility's rolm 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 Utfliry+s ovnmhead service; and WHEREAS, Applicants have requested Utility to famish and install the pads and vaults for transformers and associated equipment, conduits, ducta,boxesand electrolier bases and to perform other wmk related to structures and substructures including breaking of pavement, trenching, back011ing, and repaving required In connection with installation of the underground system; and WHRRRAS, Underground service connections to each applicant from Utility's underground distribirtion syst® will be installed and maintained as provided in Utility's rules applicable thereto; NOW, 7MWORE, in consideration of die 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.Applit'artts will pay to Utility concurrently with the execution hereof thenoorefiutdable amount of s303,219.66 , which is the excess, if any, of the estimated costs, including breaking of paverneut trenching, baekfrllfog, a l paving requited in connection with installation of the underground system, and of $49,738.34, the excess, if any, of the estimated costs including transfmers, meters, and services, of completing the underground system and building a new equivalent overhead systern7be amount contributed by each of said Applicators is shown hereinafter. 2. Utility will complete the undergrounding of said overhead distribution theilitiea, provided, however, Utility has been granted rights of way therefore satisfactory to and without cost to Utility F— -I L -A SCE CSD 156 -1 REV IMI -3- . 3. Said underground distribution facilities will be and will remain the property of Utility. 4. Applicants each agree Applicants will perform necessary winugchange &onApphoants'premises so that advice maybe furnished from Utilitys undwgromd distribution systcm vt aeowdance with tklity s rules, arid Utility may discontinue Utility's ovethead service upon completion of Utlitys underground facilities. S. This contract is subject to the Rules of Utility. 5. 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 tiny, from time to Lima, direct_ in the exercise of its jurisdiction. IN WITNESS WHEREOF, the parties hereto have executed this agreement on the day and year first above written. SOUT'SSRN CALIFORNIA EDISON COMPANY By . t EGG OR DIVISION MANAGER Armtml;ton Beach RROMNORmVISION SIGNATURE OF APPLICANTS .ADDRESS AMOUNT CONTRIBUTED TOTAL Witness Address w/o Str. 6633 -7113 4 -7114 $301,319.00 w/o Cable 6633 -7114 4 -7115 .$ 50,638.00 contract total $351,957.00 • SCE CSD 156-1 REV 11101 -4- AERIAL TO UNDERGROUND CONVERSION AGREEMENT BETWEEN CITY OF NEWPORT BEACH and PACIFIC BELL TELEPHONE COMPANY DBA AT &T CALIFORNIA (AT &T To Construct USS) (Rule 32(A)(2)) RE ASSESSMENT DISTRICT #94 PACIFIC DRIVE, CORONA DEL MAR Aerial to Unde g,00W Conversion Censtrucuon Agreammt (Rule 32(A)(2)) where AT &T eonsnuct USS WBST'.324747 (rev. 4/10ros) • • i � I I • TABLE OF CONTENTS I. DEFINITIONS ................. ..................... ............................ .......... : ............................................. 1 II. RECITALS . .................................................................................. ............................................ 1 M. SPECIFIC PROVISIONS .................................:...................................... ..............................2 ATariff ................................................................:......................... ..............................2 B. Construction ................................................................................ ..............................2 C. Term ..........................._................................................................ ..............................3 D. Performance by Annlicant ............... _........................................... ..............................3 E. TJs . ...................... ....................................................................... ............................ 3 F. Tax Liability ................................................................................. ..............................3 G. Pavment ...................................................................................... ..............................3 H. Cancellation. Modification or Deferment ................................................. ............... 3 L Iademnity. Limitation of Liability ............................................... ..:...........................3 J. Licenses and Easements . ........................................................................................... A • K. Performance ................................. ......... ..................................... ............................. 4 I. DamacetoFacilities ........................... ....................................................... ........ .......5 M. Schedule of Wark ........................................................................ ..............................5 N. Force Majeme ............................................................................... ..............................5 MGENERAL PROVISIONS ....................................................................... ..............................5 Ai ent .................................................................................. .................:............5 B. Binding Effect ............................................................................. ..............................6 C. Tonninatio n ........................ ...................................................................................... 6 D. Entire Aereement ........................................................................ ..............................6 E. Jurisdiction ................................................................................... ..............................6 F. No tices ............:............................................................................ .........................._...6 G. Waiver and Amendment ............................................................ ............................... 7 Apia to Underground Convpsion Cowmw ion Agremnent (Rule 32(Ax2)) where AT &T oonsuw USS • WE41.324747(rc. 411OM6) I H. Attomevs' Fees .............................................................................. ..............................7 • Exhibit A Applicant's Approved Street Improvement Plans Exhibit B AT &T's Estimated Costs Aerial to Underground Conversion Construction Agreement (Rule 32(Ax2)) where AT&T construct USS WES'..324747 (rev. 4110106) L� • 0 THIS AGREEMENT ("Agreement"} is between CITY OF NEWPORT BEACH, a.Califmmia corporation ("Applicant'), and PACIFIC BELL TELEPHONE COMPANY, a California corporation doing business as AT &T California ("AT &T") (collectively the "Parties"). I. DEFINITIONS. As used in this Agreement, the following terms apply: A. The term "tariff' refers to Schedule Cal. P.U.C. No. A2, Rule 32.A.2. B. The terms "Underground Supporting Structure" and "USS" include, but are not limited to, conduit, manholes, service boxes, and related equipment. C. The terms `°french" and "Trenching!' include, but are not limited to, excavating, backfillm& compacting, and as necessary, breaking and replacing pavement, sidewalks, driveways, curbs and gutters; and restoring all other surface features, disturbed by underground construction, including landscaping, plus the cost of performing such work. D. The term "Hazardous Substance" refers to any substance, material and chemical that is or becomes regulated under applicable local, state or federal law, regulation, or ordinance. • E. The term "District" refers to the area in(on/along Assessment District #94 along Pacific Drive in Corona del Mar where the undergrounding of existing aerial facilities is to take place. F. The term "Project" means all of the wok required to underground existing aerial facilities within the District. G. The term "CPUC" refers to the California Public Utilities Commission. II. RECITALS. A. Applicant has asked AT&T to replace its existing aerial communication facilities with underground communication facilities within the District B. AT &T is willing to underground its existing aerial communication facilities within the District, subject to the terms and conditions of this Agreement. In consideration of the above, the Parties agree as follows: Axial to Undaground Cmmsim • CommKtim AM meat (Rule 32(A)(2)) A= AT &T vWMftvd9 USS Page t oF7 WEST' (Rev. 41.IM) M. SPECIFIC PROVISIONS. . A. Tariff The Project will be conducted in accordance with the Tariff. B. Construction. Upon receipt of the advance payment(s) described in Section G hereof and a copy of this Agreement that has been executed by Applicant, AT &T will perform the work required to convert its existing aerial facilities to underground facilities in the area shown in the District on Applicant's per, a copy of which is attached hereto as Exhibit A. 2. It during the installation or construction of communications facilities, AT &T employees, subcontractors, or agents encounter Hazardous Substance(s) that may be disturbed by AT &Ts activities: a. AT &T shall give prompt written notice of the discovery of the Hazardous Substance(s) to Applicant; b. AT &T shall suspend performance under this Agreement until (1) containment and removal of the Hazardous Substance(s) has been completed and approved by the appropriate governmental agency(ies) if such approval is required or approved by AT &T, if • governmental agency(ies) approval is not required; or (2) Applicant reasonably demonstrates to AT &T that the Hazardous Substance(s) will not be disturbed by AT &Ts activities; C. AT &Ts performance of its obligations under this Agreement is extended for the amount of time that it takes to complete containment1removal of the Hazardous Substance(s); and, d. If Applicant elects not to remove/contain the Hazardous Substance(s), AT &T may terminate this Agreement without finther liability by giving advance notice to Applicant no later than ten (10) days after the date the Applicant notifies AT &T of its decision not to remove%ntain the Hazardous Substance(s). If AT &T terminated this Agreement in accordance with this paragraph, Applicant shall reimburse AT &T for the costs AT &T incurred up to the effective date of the termination. Aerial ro Undagrow d Converean Conwuction Agteanent (Rule 32(A)M) wham AT &T cmWucta USS Page 2 of 7 WEST324747(aev. 411OM6) • j • - C. Tenn. This Agreement is effective upon execution and shall continue in effect until terminated or canceled as provided by law or this Agreement. D. Pe<rformanee by Awlicant. To facilitate this project, Applicant shall require all property owners served by the aerial facilities to be replaced within the District to provide and maintain the USS on their property. E. Title. Upon completion of construction, title to the USS and all associated communications facilities placed by or for AT &T, except the underground service connections, shall vest in AT &T, provided that such is firee of all liens and encumbrances. F. Tax Liability. Applicant shall pay, and hold AT &T harmless from and against, all penalties, interest, taxes or other charges that are levied or assessed against Applicant. G. Payment • 1. Applicant shall pay to AT &T within thirty (30) days after execution of this Agreement the sum of One Hundred & Ninety -One Thousand & Seventeen Dollars & No Cents, which represents the estimated cost of constructing the USS along the public way and other utility rights of way in the District, per Exhibit B hereto. If applicable, Applicant shall also pay to AT &T a tax component of No Dollars & No Cents collected for Federal and State Income Tax in accordance with CPUC decision 87 -09 -026. These amounts are valid for only two hundred and forty -two (242) days and are therefore subject to change after September 30, 2007, if AT &T has not commenced construction by that date due to circumstances beyond its control. The above date was agreed to by mutual agreement because of a building moratorium from July 4, 2007 to September 3, 2007. Also, this pricing must remain valid until September 30, 2007 per the actual scope of the bid. . H. Cancellation Modification or Deferment. If Applicant cancels, modifies or defers its request to replace the aerial facilities with underground facilities in the District, Applicant shall reimburse to AT &T all costs incurred by AT&T, in accordance with the Tariff. I. Indemnity-, Limitation of Liability. Aerial to Underground Conversion • Coushuction Agrcemeot (Rule 32(A)(2)) when AT&T constructs USS Page 3 of 7 wE$1.324747 (ac'. 4/10/06) . 7. K Applicant shall indemnify, defend, and hold harmless AT &T and its officers, agents and employees, as well as its associated and affiliated _ companies and their respective officers, agents, and employees ( "Indemnitece ), from and against any and all losses, damages, expenses, crusts, penalties, fines, fees (including reasonable attorneys' and consultants' fees), and liabilities (collectively "Liabilities "), incurred as a result of any injury to or death of any person(s), or damage to any property(ies) arising out of or in connection with the condition of the property in the District, including environmental contamination, except where such Liabilities are caused by the sole negligence or willful misconduct of Indemnitees. 2. Applicant shall, at AT &T's request, defend AT &T, at no cost or expense to AT &T, against Liability(ies) asserted in any claim, demand, suit or legal proceeding. AT &T shall notify Applicant within a reasonable time of any written claims or demands against AT &T for which Applicant is responsible under this section. Applicant shall also (a) keep AT &T fixlly informed as to the progress of such defense, and (b) afford AT &T, at its own expense, an opportunity to participate with Applicant in the defense or settlement of such claims, demand, lawsuits or other legal proceedings. 3. These indemnities shall survive the termination or cancellation of this Agreement or any provision to the contrary herein. 4. IN NO EVENT SHALL AT&T BE I.iABLE TO APPLICANT FOR INCIDENTAL, SPECIAL, INDIRECT, PUNITIVE, OR CONSEQUENTIAL DAMAGES, WHETHER BY TORT OR CONTRACT, INCLUDING LOST REVENUES, LOSS OF PROFITS OR OTHER COMMERCIAL OR ECONOMIC LOSS ARISING OUT OF THE PERFORMANCE OF THIS CONTRACT, INCLUDING, WITHOUT LIMITATION, NEGLIGENT PERFORMANCE OR FAILURE TO PERFORM, OR A DEFECT OR FAILURE TO PERFORM OR DEFECT OF CABLE OR WIRING, REGARDLESS OF THE FORESEEABILITY THEREOF. Licenses and Easements. Prior to construction of the Project, Applicant shall, at no cost to AT &T, furnish AT &T with any and all licenses or grants of easements that are necessary to accommodate the Project, including the construction and maintenance of AT &T's facilities. Performance. Acrial to Undaground Conversion Conshwilon Agreement (Rule 32(Ax2)) where AT &T oomtructs USS Page 4 of 7 wESr324747 (Rev.4/J0M) • • • • If Applicant defaults in the performance of any work that it is obligated to perform under this Agreement within the time allowed for such work, AT&T may elect, by written notice to Applicant, to perform the work at Applicant's sole risk and expense and Applicant shall pay to AT &T upon demand AT &T's actual costs for performing the work. L. Damage to Facilities. Applicant and its employees, agents and contractors shall exercise special precaution and care to avoid causing damage to AT &T's facilities in performing work near AT &T's work. Applicant shall assume responsibility for any and all losses, costs and expenses arising out of caused by, or in any way connected with such damages, including consequential damages. Applicant shall immediately report the occurrence of any such damage to AT &T and shall, on demand, reimburse AT &T for all expenses incurred by AT &T in replacing or repairing the damage. M. Schedule of Work. AT &T shall have its facilities converted contingent upon mutually acceptable schedules, timely obtaining of permits, licenses and other documents, and not being delayed by those uncontrollable forces described in Section DLN below. N. Force Maieure. • AT &T shall not be held liable to Applicant for any delay in performance under this Agreement Sour any cause beyond its control and without its fault or negligence, such as acts of God, acts of civil or military authority, goverment regulations, the presence of archeological or historical artifacts, or Hazardous Substances on, in, or near the project, embargoes, epidemics, war, terrorist acts, riots, insurrections, fires, explosions, earthquakes, nuclear accidents, floods, strikes, power blackouts, volcanic action, other major environmental disturbances, unusually severe weather conditions, inability to secure products or services of other persons or transportation facilities, or acts or omissions of carriers. If any of the foregoing events occur, AT &T agrees, if requested by Applicant, to accelerate its efforts hereunder if reasonably feasible in order to regain lost time, so long as Applicant agrees in writing to reimburse AT &T for the incremental actual costs of such efforts. IV. GENERAL PROVISIONS.• A. Assignmart. Applicant shall not wholly or partially assign this Agreement without the prior written consent of AT &T. Aerial to Underground Convention • - Consnuctim Agreement We 32(Ax2)) where AT&T conmucw M Page 5 of 7 WEST324747 (Re .4(10X6) _ B. Binding Effect • This Agreement shall be for the benefit of and is binding upon the respective successors and assigns of the parties. C. Termination. This Agreement automatically terminates upon completion of the Project In the event of any material default or breach of this Agreement by Applicant, in addition to all other rights and remedies which AT &T may have at law or in equity, AT &T shall have the immediate right to terminate this Agreement by giving tear (10) days prior written notice of termination. The notice shall specify the cause of termination and shall give Applicant a reasonable opportunity to cure and correct any such cause. In the event this Agreement is terminated or suspended as provided herein, AT &T shall not be liable to Applicant or any other person or entity for any losses, damages or claims which may arise as a result of termination. Applicant shall pay to AT &T all costs and expanses incurred by AT &T prior to termination of this Agreement Any termination of this Agreement in whole or in part shall not release Applicant from any liability or obligation under this Agreement' whether of indemnity or otherwise, which may have accrued or which may be accruing or which arises out of any claim.that may have accrued or may be accruing at the time of termination. D. Entire Agreement. This Agreement and the attached Exhibits, which are incorporated herein by this • reference, constitute the entire Agreement between the Parties hereto with respect to the subject matter hereof. All prior agreements, representations, statements, negotiations and understandings are superseded. E. Jurisdiction. This Agreement shall be governed by the laws of the State of California and is subject to the applicable rules, regulations and tariffs on file with the CPUC. All notices and other communications hereunder shall be given in writing and addressed as follows and shall be deemed given when: delivered in person, delivered to an agent, such as an overnight or similar delivery service, or three days after being deposited in the United States mail, postage prepaid. APPLICANT AT &T Aerial to Uodetgomd Conversion . Caosnuction Agtwnent (Rule 32(A)(2)) where AT&T canshuats USS Page 6 of 7 WESr`.324747(Rev. 4/10%) i I • City of Newport Beach Department of Public Works Attn: Mr. Patrick Arciniega 3300 Newport Blvd. Newport Beach, Ca. 92658- 8915 G. Waiver and Amendment. Attn: Jeff Merickel 3939 E. Coronado St. Anaheim, Ca. 92807 The provisions of this Agreement shall not be waived, altered, or amended by any representations or promises of any party unless consented to in writing by both parties. H. Attomeys' Fees. • If any action is brought to adjudicate the rights granted in this Agreement or to enforce any of the terms of this Agreement, the prevailing party shall be entitled to an award of reasonable attorneys' fees in an amount to be determined by a court or a tribunal of competent jurisdiction. The duly authorized representatives of Applicant and AT&T have executed this Agreement by affixing their signatures on the dates indicated below. CITY OF NEWPORT BEACH Printed Date Signed: PACIFIC BELL TELEPHONE COMPANY Printed Name: jM Z6'f R , M ffkl4J<V- Title: MMA,(-,S2— &4-&lNffJIZ Date Signed: 1 -31 —Dr7 Aerial to Undetgruund Conversion • Construction Agreement (Rule 32(Ax2)) where AT&T constructs USS Page T of 7 WEST324747 (Rev. 4!10%) BOND COUNSEL AGREEMENT I ASSESSMENT DISTRICT NO. 94 • (PACIFIC DRIVE - CORONA DEL MAR) THIS AGREEMENT is made and entered into as of February 1, 2007, by and between the City of Newport Beach, California, a municipality ("City"), and Robert E. Hassell, attomeyat -law ( "Counsel'). IT IS HEREBY AGREED by and between Counsel and City as follows: SECTION 1. Obligations of ComnseL Under this agreement, Counsel shall perform legal services for and on behalf of City in connection with the proceedings relating to the formation of an underground utilities assessment district designated Assessment District No. 94 (Paeilie Drive - Corona del Mar) (the "AD"), to the establishment of an underground utilities district, and to a» yrelated bond or other debt issuance by, or for the benefit of, the AD. 1.1 Time is of the essence in the performance of services under this agreement and the services shall be performed to completion in a diligent and timely manner. SECTION 2. Scope of Services. Legal services to be provided by Counsel shall include: (a) attending negotiation sessions and otherwise assisting City staff in the negotiation with utility companies; (b) grin all resolutions notices a bonds, other and documents re m the preparing greements, ds. P required 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, if any, to be disseminated in connection with the issuance of any series ofbonds related to authority and security for the bonds, tax-exemption, legal opinion, litigation, summary ofbond indentnne, bond purchase agreement or notice of sale and other supporting documentation relating to the offering for sale ofany bonds or simil ar indebtedness; 6) 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; 0) 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 ofthe proceedings to Counsel's satisfaction, issuing an approving legal opinion attesting tothe 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 ofbonds or similar indebtedness; provided, however, such opinions do not include the rendering ofa 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. Finnish 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 • • 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 computed on the principal amount of each series of bonds or similar indebtedness issued as follows: One -half of one percent (0.5 %) of the principal amount up to $5,000,000; plus One - quarter of one percent (0.25 %) of the principal amount from $5,000,001 to $10,000,000; plus One- eighth of one percent (0.125 %) of the principal amount from $10,000,001 to $20,000,000; plus One- sixteenth of one percent (0.0625 %) of the principal amount above $20,000,001. Notwithstanding the foregoing, the minimum fee shall he $20,000. 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 farmed and debt is not issued for any reason, Counsel shall he 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: Mileage: Facsimile: Computer Research: Transcript Preparation: Bond Preparation: $0.10 per page IRS Rate - (unless over one -half hour and billed hourly) $0.10 per page (sending only) Cost, plus 10% Not to exceed $40 per transcript 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 Asreement. 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 anyuntme 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 ofbonds, providing the City continuing advice concerning any actions necessary to assure that interest paid on the bands 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 matter's, including, butnot limitedto, the following. (a) preparation of a preliminary official statement and a final official statement; (b) litigation challenging the validity of (i) the proceedings to forum the AD, to authorize the levy of special assessments or to issue bonds or similar indebtedness or (ii) the bands or similar indebtedness; (e) 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. 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 Cityunderstands 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, ifit 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 ofthe 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. [The remainder of this page is intentionally blank.} U • SECTION7. Termination. Either party may ternmate this Ageementbygivmg seven Mcalendar 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. Approved as to form: City Attomey • • City of Newport Beach By: Mayor, for the City of Newport Beach Robert E. HesseD 0 CITY OF NEWPORT BEACH ENGINEER'S REPORT UNDERGROUND UTILITY ASSESSMENT DISTRICT No. 94 MARCH 13, 2007 INTENT MEETING: Match 13, 2007 PUBLIC HEARING: May 8, 2007 corporate Office 27368 Via ladumia Suits i10 Tm wla, CA 92590 Td. (951) 587 -3500 Td: (800) 755 MUNI (6864) Fax (951) 587 -3510 MuniFinancial Regional 0mces AnAmm, CA Industtp, CA Jacksonville, FL Latuastct, CA Oakland, CA wwwmlutlixom Phoesrix, el'L San Diego, CA Seattle, WA Washington, DC 0 • 0 • ENGINEER'S REPORT UNDERGROUND UTILITY SESSMENT DISTRICT NO. 94 CITY OF NEWPORT BEACH TABLE OF CONTENTS CERTIFICATIONS ENGINEER'S REPORT........_.._....._ ........... . .... . ............. . .................................... ii GENERAL DESCRIPTION OF UNDERGROUND UTILITY ASSESSMENT DISTRICT NO. DESCRIPTION OF WORK .............. . ........... ..... EXHIBIT A - PLANS AND SPECIFICATIONS ... . ........... . . . ...... . ..... . .... . .......... –A EXHIBIT B - COST ESTIMATE ........ . ........ ........... . . . ................. . . ........ . .......... EXHIBIT C - DEBT LIMIT REPORT EXHIBIT D - METHOD OF ASSESSMENT .... ........ .. . ...... EXHIBIT E - ASSESMENT EXHIBIT F - ASSESSEMENT DIAGRAM_........_ ................ . ............. . .................... F EXHIBIT G - MAXIMUM ANNUAL ADMINISTRATIVE COST ............ ....... .......... . .................... --.-G EXHIBIT H - INDIVIDUAL SERVICE CONNECTIONS ...... ... . .... . ........... .. ........... . ......... EXHIBIT 1- PUBLIC PROPERTIES--- . ...... ......... . .......... . ............ . ... . .... . .........................._..1 EXHIBIT J -CERTIFICATE OF COMPLETION OF ENVIRONMENTAL PROCEEDINGS–..—..-...—J EXHIBIT K - RIGHT-OF-WAY CERTIFICATE .................. . ..... . .. . .... ............ . ........ . ...... • MunIFInancial City of Newport Beach ENGINEER'S REPORT UNDERGROUND UTILITY ASSESSMENT DISTRICT NO. 94 CITY OF NEWPORT BEACH The undersigned respectfully submits the enclosed report as directed by the City Council. 2007. Willdan Assessment Engineer I HEREBY CERTIFY that the enclosed Engineer's Report, together with Assessment Diagram thereto attached, was filed with me on the .2007. the Assessment and day of 0 Clerk of the City Council, City of Newport Beach, California I HEREBY CERTII'Y that the enclosed Engineer's Report, together with the Assessment and Assessment Diagram thereto attached, was approved and confirmed by the City Council for the City of • Newport Beach California, on the day of 2007_ Clerk of the City Council, City of Newport Beach, California I HEREBY CERTIFY that the enclosed Engineer's Report, together with the Assessment and Assessment Diagram thereto attached, was recorded in my office on the day of 2007. Superintendent of Streets City of Newport Beach, California MuniFinancial ii City of Newport Beach • ENGINEER'S REPORT UNDERGROUND UTILITY ASSESSMENT DISTRICT NO. 94 CITY OF NEWPORT BEACH Willdan /MuniFinancial, Assessment Engineer of work for Underground U tility Assessment District No. 94 (the "District'), writes this report, as prescribed by the City Council of the City of Newport Beach in accordance with the Resolution of Intention, and pursuant to the terms and provisions of Article XIIID of the State Constitution, Part 7.5 of the Special Assessment Investigation, Limitation and Majority Protest Act of 1931, which is Division 4 of the Streets and Highways Code of the State of California, the Municipal Improvement Act of 1913, which is Division 12 of the Streets and Highways Code of the State of California, and Chapter 29 of the Improvement Act of 1911. The improvements, which are the subject of this report, are briefly described as follows: GENERAL DESCRIPTION OF UNDERGROUND UTILITY ASSESSMENT DISTRICT NO. 94 Underground Utility Assessment District No. 94 generally includes the properties South of First Avenue, Fast of Avocado Road, West of Begonia Avenue, and North of Bayside Drive. The District is made up thirty-seven (37) single- family residential properties. All properties within the District except for one are developed, two properties will only require that their phone service be undergrounded, and six properties will benefit only from the improved neighborhood aesthetics as a result of the utility undergrounding. • DESCRIPTION OF WORK The following is a description of the planned improvements for the entire district. WK M • } The undetgrounding of overhead utility lines within the boundaries of the District includes trenching, installing the newutility vaults needed to receive the conduits and transformers, laying the conduit lines into the trenches, re- paving the street, switching service to the underground system and removing the existing overhead poles and wires. This includes power lines owned by Southern California Edison, phone lines owned by AT &T, and cable television and fiber optic lines owned by Time Warner Communications. The proposed underground electric and communication improvements must be constructed within public right -of -way, land, or easements owned by the City of Newport Beach or the serving utility. Onsite Pro,r&M Costs The public improvement portion of the undergrounding of utilities will terminate at a service lateral located at the front or rear of each property to be served in the district. Each individual property owner will be responsible for all necessary work to connect facilities from the service lateral to the connection point at the house, including but not limited to, trenching, backfilling, installation of conduits and conductors, and conversion panels. • MuniFinancial City of Nowport Beach 1 BONDS • Bonds representing unpaid assessments, and bearing interest at a rate not -to- exceed twelve- percent (12- percent) per annum, shall be issued in the manner provided by the Improvement Bond Act of 1915 (Division 10, Streets and Highways Code), and the last installment of the bonds shall mature not-to- exceed thirty -nine (39) years from the second day of September next succeeding twelve (12) months from the date. This. report includes the following attached exhibits: EXHIBIT A - Plans and specifications for improvements to be constructed. Plans and specifications are a part of this report, separately bound, and are available for review at the Office of the Superintendent of Streets of the City of Newport. EXIIIBIT B - An estimate of the cost of the improvements. EXHIBIT C - A debt limitation report showing the following- 1 - The total amount of Prior Assessment Liens, as near as may be determined, and 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 this Underground Utility Assessment District No. 94, against the total area proposed to be assessed. 2. The total true. value, as near as may be determined, of the parcels of land and the improvements that are proposed to be assessed by this District. EXHI iT D - A statement of the method by which the Assessment Engineer determined the amount to be assessed against each parcel based on the special benefits to be derived by each parcel, respectively, from the improvements. • EXHIBIT E -An assessment roll, showing the amount to be assessed against each pared of real property within this Underground Utility Assessment District No. 94. Each parcel is identified by an Assessor's Parcel Number. Each parcel is also assigned an "assessment number" for the purposes of this proceeding. EXHIBIT F -A diagram showing all of the parcels of real property within this Underground Utility Assessment .District No. 94. The diagram corresponds to and is keyed to Exhibit C by the assessment number. EXHIBIT (i - Proposed maximum annual administrative cost per parcel. EXHIBIT H - Provisions related to Individual Service Connections. ,EXHIBIT I - A schedule showing the public property that will be included within the District. EX1411MY I — Certification of Completion of Environmental Proceedings. EXHIBIT K— Right -of -Way Certificate. MuniFinancial 2 City of Newport Beach • • ENGINEER'S REPORT UNDERGROUND UTILITY ASSESSMENT DISTRICT NO. 94 CITY OF NEWPORT BEACH EXHIBIT A - PLANS AND SPECIFICATIONS The plans and specifications for the improvements for this District are voltuninous and will not be bound to this Report, but by this reference are incorporated as if attached to this Report. The plans and specifications are on file in the Office of the Superintendent of Streets of the City of Newport Beach. The plans and specifications for this District consist of utility undergrounding plans, public wodcs encroachment permit, paving requirements, and special provisions. • ManlFinanclal Exhibit A - Page I City of Newport Beach ENGINEER'S REPORT • UNDERGROUND UTILITY ASSESSMENT DISTRICT NO. 94 CITY OF NEWPORT BEACH EXHIBIT B - COST ESTIMATE FEDERAL INCOME TAX COMPONENT OF CONTRIBUTION (ITCC) 2nd Bond issue - Only necessary if Federal Government requires the tax payment' INCIDENTAL & FINANCING COSTS (2nd Bond Issue) ITCC Portion $77,430.54 Bond Issuance Contingency 10.000.00 Total $87,431 Rounding $1,704 TOTAL AMOUNT TO ASSESSMENT (Both Bond Issues) $935,000 • 2nd bond issue for Federal Income Tax Component of Contribution (22%) and will only be issued if the Federal Government requests the payment of the tax. Muninsanclat Exhibit B - Page 1 City of Newport Beach • TOTAL CONSTRUCTION COSTS AMOUNT Electrical Construction Costs Southern California Edison $351,957.00 Contingency (10 %) 35,195.70 City F. Ld ,&dvancement 11-260-00 Sub Total $398,412.70 Telephone Construction Costs AT &T 191,017.00 Contingency (10 %) 19,101.70 Site Fund Advancement 6-800.00 Sub Total $216,918.70 Total Construction Costs $615,331.40 INCIDENTAL EXPENSES Assessment Engineering $19,035.00 City Administration 13,000.00 Construction Inspection 11,000.00 Financial Advisor 12,500.00 Bond Counsel 20,000 -00 Paying Agent 2,000.00 • CO1 In id,Piatal Contingency 7.500.00 Sub Total $85,035.00 FINANCING COSTS (1st Bond Issue) Undcrwriters Discount (1.1 %) $8,204.52 Reserve Fund 15 %I 37 293.2 Sub Total $45,497.77 DISTRICT FORMATION AMOUNT TO ASSESSMENT $745,865 FEDERAL INCOME TAX COMPONENT OF CONTRIBUTION (ITCC) 2nd Bond issue - Only necessary if Federal Government requires the tax payment' INCIDENTAL & FINANCING COSTS (2nd Bond Issue) ITCC Portion $77,430.54 Bond Issuance Contingency 10.000.00 Total $87,431 Rounding $1,704 TOTAL AMOUNT TO ASSESSMENT (Both Bond Issues) $935,000 • 2nd bond issue for Federal Income Tax Component of Contribution (22%) and will only be issued if the Federal Government requests the payment of the tax. Muninsanclat Exhibit B - Page 1 City of Newport Beach • • ENGINEER'S REPORT UNDERGROUND UTILITY ASSESSMENT DISTRICT NO. 94 CITY OF NEWPORT BEACH EXHIBIT C - DEBT LIMITATION REPORT After reasonable search, we are not aware ofany prior assessment liens on the properties located within Underground Utility Assessment District No. 94. The total of the assessment liens for the Underground Utility Assessment District No. 94 is equal to $835,000. "True Value" as used herein is the estimated. full cash value of the parcels as shown upon the last equalized assessment roll of the county. Mtematively, total true value may be determined by other reasonable means, including, but not limited to, by adjusting the value shown on the last equalized assessment roll to correct for deviations from market value due to Article XIIIA of the California Constitution. The grocs.propertyvaluation (based on the 2006 /07 County of Orange Secured Property Tax Roll) for properties located within. Underground Utility Assessment District No. 94 totals $52,448,651. CERTIFICATION OF ASSESSMENT ENGINEER I, the undersigned Assessment Engineer, do hereby certify that the total amount of the principal sum of • the assessments proposed to be levied for the District, together with the principal amount of all other assessments levied or proposed to be levied on the properties within the District, as set forth above, does not exceed one -half (1/2) of the total true value of the parcels proposed to be assessed for the District I further certify that the proposed assessment upon any parcel does not exceed one -half (1/2) of the true value of the parcel. Willdan /MuniFinancial Kenneth T. Steele, P.E. Assessment Engineer • MuniFinancial Exhibit C - Page 1 City of Newport Beach ENGINEER'S REPORT • UNDERGROUND UTILITY ASSESSMENT DISTRICT NO. 94 CITY OF NEWPORT BEACH EXHIBIT D - METHOD OF ASSESSMENT The law requires that assessments levied pursuant to the Municipal Improvement Act of 1913 be based on the benefit that properties receive from the Improvements. However, the law does not specify the method or formula that should be used to apportion the assessments in the Underground Utility Assessment District No. 94 proceedings. In addition, Articles XIIIC and XIIID of the California Constitution require that only special benefits are assessable, that no assessment may exceed the proportional special benefit received by the parcel assessed, and that publicly owned parcels shall not be exempt from assessment unless clear and convincing evidence demonstrates that such public owned parcels receive no special benefits from the improvements or services for which the assessment is levied. Special benefit is a particular and distinct benefit over and above general benefits conferred to the public at large on real property located within the District. General enhancement of property value does not constitute special benefit It is necessary to identify the special benefit that the Improvements will render to the properties within the Underground Utility Assessment District No. 94. It is also necessary to identify and separate any portion of the Improvements, which provide a general benefit to the public at large from the portion of Improvements that provide a special benefit to parcels within the District. Any cost of Improvements, or portion thereof, that is considered general benefit has not been included as part of the total assessment. It has been determined from the design plans, cost estimates, and boundaries of the District • that all of the Improvements, for the rntdergrounding of the utilities, provide a direct and special benefit to the parcels within the District and there is no measurable general benefit to the public at large. The responsibility rests with the Assessment Engineer who is appointed for the purpose of analyzing the facts and determining the method of apportionment of the assessment to the benefiting properties, based on the amount of special benefit that each parcel receives, related to the District as a whole. For these proceedings, the City has retained the firm of Willdan /MuniFinancial as the Assessment Engineer. The Assessment Engineer makes the recommendation for the method of apportionment at the public hearing. The final authority and action rest with the City Council after hearing all testimony and evidence presented at the public hearing and completing the tabulation of assessment ballots. Upon conclusion of the public hearing, the City Council must make the final action in determining that the assessment has been apportioned equitably based on the special benefit received by each parcel. Ballot tabulation will then be completed, and if less than 50 percent of ballots returned and tabulated, weighted by assessment amount, are opposed to the assessment, then there is not a majority protest and the City Council may form the District, adopt the Final Engineer's Report, and Order the Work to commence. MuniFinanclal Exhibit D - Page 1 City of Newport Beach • BENEFIT The district is being formed to underground the existing overhead electrical and communication facilities within the boundanes of the District. Undergrounding the existing overhead utilities will improve the safety of motorists who drive in the neighborhood.. The existing poles are immovable objects that could cause damage and possible injury to the occupants of the vehicle, in the event of an accident involving a utility pole. By removing the poles from the right -of -way and street edge, the potential for vehicles to collide with them are removed which will provide overall improved safety for drivers within the District. The removal of overhead utility poles and lines provides an additional safety benefit in that it reduces the potential of hazardous conditions in the event of natural disasters. Earthquakes, severe storms with high winds, and other natural disasters can cause poles to fall, potentially impacting property in the District, and possibly cause live electric lines to be exposed Downed electric lines pose a potential threat of fire and potential injury due to electric shock. in addition, downed electric lines can restrict ingress and egress of residents and emergency services. In addition to the safety improvements provided by the undergrounding of utilities, removing the poles and lines will eliminate an unusually heavy concentration of overhead electric and communication facilities. This will improve the overall aesthetics within the District and the reliability of the utility services received by properties in the District. Parcels that will have their utilities undergrounded will benefit from improved reliability of the utility services by receiving new upgraded utility litres and cables, alotrg with appurtenant facilities related to the utility to be undergrounded This will reduce exposure to natural phenomena that may muse potential damage and interruption in utility services. Undergrounding of these utilities will bring this neighborhood closet to modem day development standards. These special benefits improve the physical and visual environment, as well as, the quality of utility services • .provided. The benefits of this undergrounding project are a direct and special benefit to the owners of property within the District. Since residents of all of the lots within the District drive and walk the streets that have the utilities proposed for undergrounding, the owners of these tors receive all of the direct and special benefits of the improvements. There is no measurable general benefit since the primary function of the affected streets is to provide access for the residents within the District, and not to the public at large METHOD OF ASCFS MENT The method of assessment is determined by an analysis of the benefit a property receives rather than the specific cost of providing improvements to an individual property. The benefit of undergrounding the overhead utility system is based on safety, services to be undetgxounded, reliability, and neighborhood aesthetics. The District is made up of 37 single - family residential .properties. The method of apportionment established for most districts formed under the 1913 Act utilizes a weighted method of apportionment known as an Equivalent Benefit Unit (EBU) methodology that uses the single -family home site as the basic unit of assessment. The distribution of electricity, other utilities, and the underground wires and cables are constant no matter what size lot or house is located on each parcel. Therefore, each property within the District will be assigned one Equivalent Benefit Unit for each of the three utilities to be undergrounded and one Equivalent Benefit Unit for the improved neighborhood aesthetics resulting from the removal of overhead utilities. The total EBU and assessment assigned to each property shall be calculated by the following-equation: • MunlFlnaneial Exhibit D - Page 2 City of Newport Beach Electrical + Phone + Cable + Aesthetic - Parcel's EBU EBU EBU EBU EBU Total Assessment Assessment Rate per EBU Total EBU Assessment Rate per EBU x Parcel's EBU = Parcel's Assessment In addition to the assessments related to the cost of undergrounding the overhead utilities and associated incidental expenses and financing costs in connection with the issuance of bonds ("Underground Assessmenel, properties that benefit from the conversion of their electrical services from overhead facilities to underground transmission may also be subject to an additional assessment linked to the Income Tax Component of Contribution (ITCQ ("Supplemental Assessment'). This Supplemental Assessment is established to cover any tax liability incurred by Southern California Edison as a result of an Internal Revenue Service determination that the utility conversion is a taxable event In the event Southern California Edison is taxed, a second series of bonds would be issued to pay for the tax liability. A parcel's Supplemental Assessment is calculated based on such parcel's share of the total Electrical Equivalent Benefit Units. The total assessment lien on each parcel will be the Underground Assessment plus the Supplemental Assessment. Parcels that will not have their electrical service converted from overhead facilities to underground transmission will not be assessed a Supplemental Assessment. EXCEPTIONS AND CREDITS the overhead utilities will be removed along the north side ofAcacia Avenue from Pacific Drive to First Avenue and parcels 459-101-13,459-101-14,459-102-01, 459-102-04,459-102-05,938-01-418, and 938- 01 -430 (the "Acacia Properties') will receive improved aesthetics associated with the neighborhood as a whole. Although the overhead utilities will be removed along Acacia Avenue, the Acacia Properties will continue to receive their utility services from overhead connections or existing underground transmission lines connected to overhead utilities located along the backside of their properties, therefore, the Acacia Properties will not benefit from the enhanced services, increased reliability and capacity, or improved safety as a result of the utility undergrounding. In determining the level of benefit the Acacia Properties receive, the special benefits received by all other parcels within the District must be considered in order to calculate the proportional special benefit conferred on the Acacia Properties. In addition, the overhead utilities that will remain along the side and backside of these properties must also be considered in calculating the EBUs assigned to the Acacia Properties. Therefore, since only the frontage along Acacia Avenue will be improved by the proposed utility undergrounding, the aesthetic EBU assigned to each Acacia Property must reflect the level of benefit conferred on such properties. Specifically, parcels 459-101-13,459-102-04,938-01-418, and 938 - 01-430 will continue to have overhead utilities along the bark alley of their properties, as such, the aesthetic EBU assigned to each of these parcels shall equal one -half of the bast, aesthetic EBU (1/2 x 1.00 = 0.5 BBU). Parcel 459 -10205 will also be served by overhead utilities along the backside of their property, however, this property will benefit from the removal of overhead utilities not only along Acacia Avenue but also along the alley that joins Acacia Avenue and Begonia Avenue and shall be assessed two-thirds of the base aesthetic EBU MuniFinanaial Exhibit D - Page 3 City of Newport Beach 0 • i • (2/3 x 1.00 = 0.67 EBU). Parcel 459- 102 -15 shall also benefit from the removal of overhead utilities along the alley that joins Acacia Avenue and Begonia Avenue, but will still have overhead facilities along the backside of their property. As such, parcel 459- 102 -15 will also be assessed one -half of the base aesthetic E13U (1/2 x 1.00 = 0.5 EBU). Assessment Assessor's Electrical Phone Cable Aesthetic Total Number Parcel Number EBU EBU EBU EBU EBU9 21 459- 101 -13 0.00 0.00 0.00 1/2 x (1.00) 0.5 24 459 - 302.04 0.00 0.00 0.00 112 x (1.00) 0.5 25 459- 102.05 0.00 0.00 0.00 213 x (1.00) 0.67 35 459- 102 -15 0.00 0.00 0.00 112 x (1.00) 0.5 36 938-01 -418 0.00 0.00 0.00 112 x (1.00) 0.6 37 938 -01-430 0.00 0.00 0.00 112 x (1.00) 0.5 Parcels 459- 101 -14 and 459- 102 -01 will continue to have overhead utilities along the backside of their properties and along the frontage on First Avenue. These two parcels aesthetic EBU shall equal one - third of the base aesthetic EBU (1/3 x 1.00 = 0.33 EBU). Assessment Assessor's Electrical Phone Cable Aesthetic Total Number Parcel Number EBU EBU EBU EBU EBUs 22 459- 101.14 0.00 0.00 0.00 1/3 x (1.00) 0.33 23 459 - 102.01 0.00 0.00 0.00 113 x (1.00) 0.33 • A guy pole will continue to remain along the backside of parcel 459- 102 -09; therefore, a credit will be applied against the parcel's Aesthetic EBU. Unlike the four Acacia Properties that will continue to have overhead facilities across the backside of their property, parcel 459- 102 -09 will not have power lines or transmission wires adjacent to its property. As such, the credit applied to parcel 459 -102 -09 shall equal one -forth of the base aesthetic EBU for a final Aesthetic EBU equal to 0.75. In the fnturc, if another assessment district is formed to remove the remaining overhead utilities adjacent to the Acacia Properties, the Acacia Properties and assessor parcel number 459 - 102-09 shall be included within the new assessment district and assessed for the remaining benefits not assessed within Assessment District No. 94. • MuuiPinanclal Exhibit D - Page 4 City of Newport Brach ENGINEER'S REPORT • UTILITY ASSESSMENT DISTRICT NO. 94 CITY OF NEWPORT BEACH EXHIBIT E - ASSESSMENT ROLL An assessment of the total amount of the costs and expenses of the improvements upon the subdivisions of land within the Underground Utility Assessment District No. 94, in proportion to the estimated special benefit to be received by the subdivisions from the Improvements, is set forth upon the following Assessment Roll filed with and made part of this Repom The Assessment Roll lists the assessor's parcel numbers within this Underground Utility Assessment District No. 94 by assessment number. The assessment numbers appearing on the Assessment Roll correspond with the subdivisions and parcels of land and their numbers shown on the Assessment Diagram (Exhibit F). Conclusion In conclusion, it is my opinion that the assessments for Underground Utility Assessment Disttict No. 94 are allocated in accordance with the direct and special benefit that each parcel receives from the Improvements. • Willdan Assessment Engineer .City of Newport Beach State of California Signed by Kenneth T. Steele, P.E. MuniFinancial Exhibit E - Page I City of Newport Beach • Assessment Number Assessors Parcel Number Electrical EBU Phone EBU Cable EBU Aesthetic EBU Total EBU Direct Formation Assessment ITCC Assessment Preliminarily Approved 1 052 -011 -01 1.00 1.00 1.00 1.00 4.00 24,538.40 2,932.47 27.470.87 2 052 -011 -03 1.00 1.00 1.00 1.00 4.00 24,538.40 2,932.47 27,470.87 3 052 - 011 -04 1.00 1.00 1.00 1.00 4.00 24,538.40 2,932,47 27,470,87 4 052- 011 -05 1.00 1.00 1.00 1.00 4.00 24,638.40 2,932,47 27.470.87 5 052 -011 -07 1.00 1.00 1.00 1.00 4.00 24,538.40 2,932.47 27.470.87 6 052 -011 -08 1.00 1.00 1.00 1.00 4.00 24,636.40 2.932.47 27.470.87 7 052- 011 -09 1.00 1.00 1.00 1.00 4.00 24,636.40 2.932.47 27.470.87 8 052- Ql1 -12 1.00 1.00 1.00 1.00 4.00 24,538.40 2.932.47 27.470.87 9 052- 011 -14 1.00 1.00 1.00 1.00 4.00 24,638.40 2.932.47 27.470.87 10 052- 011 -20 1.00 1.00 1.00 1.00 4.00 24,638.40 2,932.47 27.470.87 11 052- 011 -21 1.00 1.00 1.00 1.00 4.00 24,638.40 2,932.47 27,470.87 12 052- 011 -22 1.00 1.00 1.00 1.00 4.00 24,538.40 2.932.47 27,470.87 13 052- 011 -23 1.00 1.00 1.00 1.00 4.00 24,538.40 2.932.47 27,470.87 14 459- 101 -02 1.00 1.00 1.00 1.00 4.00 24,538.40 2,932.47 27,470.87 15 459- 101 -06 1.00 1.00 1.00 1.00 4.00 24,538.40 2,932.47 27,470.87 16 459- 101 707 1.00 1.00 1.00 1.00 4.00 24,538.40 2.932.47 27.470.87 17 459. 101 -08 1.00 1.00 1.00 1.00 4.00 24,538.40 2.932.47 27.470.87 18 459- 101 -09 1.00 1.00 1.00 1.00 4.00 24,538.40 2,932.47 27,470.87 19 459- 101 -10 1.00 1.00 1.00 1.00 4.00 24.538.40 2.932.47 27.470.87 20 459- 101 -12 1.00 1.00 1,00 1.00 4.00 24.538.40 2.932.47 27.470.87 21 459- 101 -13 0.00 0.00 0.00 0.50 0.50 3.067.30 366.56 3,433.86 22 469- 101 -14 0.00 0.00 0.00 0.33 0.33 2.044.87 244.37 2.289.24 23 459 -102 -01 0.00 0.00 0.00 0.33 0.33 2,044.87 244.37 2.289.24 24 459 -102 -04 0.00 0.00 0.00 0150 0.50 3,067.30 366.56 3.433.86 25 459- 102 -06 0.00 1.00 0.00 0.67 1.67 10,224.33 1.221.86 11.446.20 26 459 -102 -06 1.00 1.00 1.00 1.00 4.00 24,538.40 2.932.47 27,470.87 27 459- 102 -07 1.00 1.00 1.00 1.00 4,00 24.538.40 2.932A7 27,470.87 28 459- 102 -08 1.00 1.00 1.00 1.00 4,00 24.538.40 2.932.47 27,470.87 29 459- 102-09 1.00 1.00 1.00 0.76 3.75 23.004.75 2.749.19 25,753.94 30 469- 102 -10 1.00 1.00 1.00 1.00 4,00 24,538.40 2,932.47 27,470.87 MuniFinancial Exhibit E - Page 2 City of Newport Beach Assessment Assessors Electrical Phone Cable Aesthetic Total Direct Formation ITCC Preliminarily Number Parcel Number EBU EBU EBU EBU EBU Assessment Assessment Approved 31 459- 102 -11 1.00 1.00 1100 1.00 4.00 24,538.40 2,932.47 27,470.87 32 459- 102.12 1.00 1,00 1.00 1.00 4.00 24,538.40 2,932.47 27,470.87 33 459- 102.13 1.00 1.00 1.00 1.00 4.00 24,538.40 2,932.47 27,470.87 34 459 - 102 -14 1.00 1.00 1.00 1.00 4.00 24,538.40 2,932.47 27,470.87 35 459. 102 -15 0.00 1.00 0.00 0.50 1.50 9,201.90 1,099.68 10,301.56 36 938 - 01.418 0.00 0.00 0.00 0.50 0.50 3,067.30 366.56 3,433.86 37 938 - 01.430 0.00 0.00 0.00 0.50 0.50 3,067.30 366.56 3,433.85 TOTAL 37 29.00 31.00 29.00 32.58 121.58 746,865.00 89,135.00 $835,000.00 MuniFinancial Exhibit E - Page 3 City of Newport Beach ENGINEER'S REPORT UNDERGROUND UTILITY ASSESSMENT DISTRICT NO. 94 CITY OF NEWPORT BEACH EXHIBIT F - ASSESSMENT DIAGRAM A Diagram showing the Underground Utility Assessment District No. 94, the boundaries, and the dimensions of the subdivisions of land within the Underground Utility Assessment District No. 94, as they existed at the time of the passage of the Resolution of Intention, is filed with and made a part of this Report and part of the assessment. Each of the subdivisions of land, parcels, or lots will be given a separate number on the Assessment Diagram (to follow after the resolution of intention), which corresponds with the assessment number shown on the Assessment Roll (Exhibit Q. The Assessment Diagram in a reduced -scale format follows- 0 • MunlFinanclal Exhibit F - Page 1 City of Newport Beach m ® Munonancial mu;O.tim Y PROPOSED BOUNDARIES OF UNDERGROUND UTILITY ASSESSMENT DISTRICT NO. 94 ° lwl WYOFNEWPOWr OFALN COUt"OFORANOE STATE OF CALIFORNIA ♦ C V BCNE:1•.p II I IL i _ PIIUsr-,Am _ _ I _ --_ rAmxnmm�Qntm♦mxm♦_wrn mw. xB�rmnwnwrmcxl♦wwxulnlalxo4m mwnoauoeooinlm'rc�svnontnmw µmaxsalneuimalrcaare¢.nmav 6W WI�YMMTWbIlll�lOY491ndb1xMp! RMl m�xnlMIIxEMITAY.1iC01M Gfa 9LI.fI11fIb1EW111M PRQxf1VRIMl1 K[VRONDN W M1MI�.AlbMgIYaMM1:p0.TKMl1 tx{�yYb .Y9.mMINM .�11 NON�xMMppq x il®QI♦.1Q TlLgMIYaA]i� Fb�ei m�maoYaaxa em'rxxaexoeama♦eertaeee�w m+vr�mxmaa1ma1o01 mxrcxwsw ownrabxlx ouaxowonulsa xRxurtortlwta x4.MId1Aq wwwswx:rMeElYprosmnilaYxww niagKfwurtrNBmmxwlaTmcxRa♦ iurm x�v Mw�aearowmrw�xow` OMCt M/IDbq[�upsx. fGloO NIBFBBI4;lf gWlUCfxMiMIX ♦HEFT' UNE IDTx111691 Q • ENGINEER'S REPORT UNDERGROUND UTILITY ASSESSMENT DISTRICT NO. 94 CITY OF NEWPORT BEACH EXHIBIT G — MAXIMUM ANNUAL ADMINISTRATION COST ADD -ON In addition to, or as a part of the assessment lien levied against each parcel of land within the District, each parcel of land shall also be subject to an annual administrative cost assessment to pay costs insured by the City, and not otherwise reimbursed, which result from the administration and collection of assessments, the administration and registration of any bonds, and the administration of reserve or other related funds. The maximum annual total amount of such annual administrative cost assessment for each parcel within the District will not exceed $150.00. Each parcel's share of the administrative cost assessment shall be computed based on the parcel's proportionate share of its annual assessment (not to exceed $150.00). 11 • MuniFinancial Exhibit G - Page I City of Newport Beach ENGINEER'S REPORT • UNDERGROUND UTILITY ASSESSMENT DISTRICT NO. 94 CITY OF NEWPORT BEACH EXHIBIT H — INDIVIDUAL SERVICE CONNECTIONS the improvements will be designed and constructed by the Southern California Edison Company (electric), AT &T (telephone) and Time Warner (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, AT &T and Time Warner respectively. Each owner of property located within the 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 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 180 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. MunlFinancial Exhibit H - Page 1 City of Newport Beach • • ENGINEER'S REPORT UNDERGROUND UTILITY ASSESSMENT DISTRICT NO. 94 CITY OF NEWPORT BEACH EXHIBIT I — PUBLIC PROPERTIES AR streets in the boundaries of the district are public streets. There arc no other public owned properties within the boundaries of the district 11 . MuniFinanciai Exhibit I - Page I City of Newport Beach ENGINEER'S REPORT UNDERGROUND UTILITY ASSESSMENT DISTRICT NO. 94 CITY OF NEWPORT BEACH EXHIBIT J OF COMPLETION OF ENVIRONMENTAL PROCEEDINGS City of Newport Beach Country 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. 94 are categoiically exempt from the provisions of the Califomia 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 Califomia, June 1992. 2. The undergrounding to be done under Assessment District No. 94 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. 4. All environmental evaluation proceedings necessary- for the formation of Assessment District No. 94 have been completed to my satisfaction, and no further environmental proceedings are necessary. EXECUTED this day of , 2007, at Newport Beach, California. Stephen G. Badum, P.E. Director of Public Works MuniFlnancial Exhibit J -Page 1 City of Newport Beach • • r1 U • ENGINEER'S REPORT UNDERGROUND UTILITY ASSESSMENT DISTRICT NO. 94 CITY OF NEWPORT BEACH EXHIBIT K RIGHT -OF -WAY CERTIFICATE CI'fY 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 Supetintendent of struts of the City of Newport Beach, California- The city of Newport Beach has 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 Underground Utility Assessment District No. 94 (hereinafter referred to as the "Assessment District"). • All easements, rights -of -way or land necessary for the accomplishment of the works of improvement for the ahove - referenced Assessment District have been obtained and are in the possession of the City. All works of improvement as proposed to be constructed within said Assessment District will be constructed within public rights -of -way, land or easements owned by said City at the time of the construction of the works of improvement. EXECUTED this day of 12007, at Newport Beach, California. Stephen G. Badum, P.H. Superintendent of Streets • MunlFlnanelal Exhibit K- Page 1 City of Newport Beach 2. 3. • 0 t�xht6%*- #1 � „0-7 What Is an Assessment District? An Assessment District is a financial tool. In the early 1900^x, the Ca /iiomia established a means by which citrzens could assess the costs Legislature the lion of public infradit*cwre arrd ut a public frnan M P►oportlon of that �iastnx*”, 8 desired• The cost of 1enprovernents is spree nded area• to the beneN of properties witlntn the boundaries of the deslg Mu .Oal bonds Imy be used to finance the cost of the drshia over r s�cints) time. Assessment Didrids are initiated by interested citizens (proponents) w" a given area. Now long does it twice to process an assessment d1wict? Approximately thirty (38) months assurrang all Pis pfd without any delays. Typically Assessment Districts from start to finish take considereWY longer to complete. W ate Asse *smart CQ N�— 911M7 06/1993 AD 63 8/1991 10/89 AD 71 7124192 ?2102 (meted) AD 74 6102 (estimated) AD 78 1988 6/02 (estimated) AD 79 6 12102 (estimated) AD 82 What is the Process? A. The proponents meet with the City and determine a scope of work. B. A prel&ninary estimate is prepared by the City and utilities based upon past experience. C. Petrtion forms are prepared by the City and given to proponents to disiiibute. D. Once from owners representing at least 60% of the land area within the district are submitted to the City. staff presents rire pefidons to Me City Council. E. City Coil advances funds to the disbid to hire an Assessment Engineers Report; to hire a Bond Engineer to prepare the required tp � a cash advance to Edison and Counsel Or legal ahri�; and to Pro Pec Bell so that they car, prepare plans for undergrounding the overhead ut#Nies- 0 0 2 The Assessment Engineer verifies that owners representing 60% of the property within the district have signed the petition. ii. Edison begins the design of the underground utilities. Once Edison has completed their design, Pacific Bell and Adelphis Cable use the Edison plans as a base plan to design their underground facilities. The above process takes between 6 months to 1 1/2 years. F. Once the plans and Engineers Report have been completed, the district is submitted to City Council to present the Engineers Report, approve the Resolution of Intention, and to schedule the required public hearing Ballots wN be sent to each property owner with the meeting notice. (Note: N the Oily receives more YES votes than NO votes by the end of the public hearing the district is approved. However, if the City receives more NO votes than YES votes by the end of the public hearing, the district fails.) G. An informal property owner information meeting is held prior to the public hearing to explain the proposed distdd to the Property owners and answer any questions H. Once the public hearing is completed and the district is approved, the fakwhv occurs: L The 30 day cash payment period is conducted. ii. Bonds are sold to fund construdion of the Underground Assessment Distrid. iii. City forwards payment to Edison and Pacific Bell for their undergrounding construction. iv. Edison advertises the construction contract for bid. This process takes approximately 4 to 6 months. 4. MW b th* STWIV '�►s overhead utilts NW recce the sUNK i Undergrounding overhead utlty lines that service the district are usually assessed on a per parcel basis. Typically, each property owner is assessed in accordance to benefit. However, the converafo+r of the individual service connection is the respons&AWy of each property owner and is paid for by the property owner. Some recent Assessment Districts and their average assessments: AssessneW Wa+ict Avn A trrot tndudnrg ITCQ AD 63 $5,725.96 AD 71 $7,800.00 d. 6. 7. S. 9. 10. 0 0 AD 74 $5,826.46 AD 78 $9,154.28 AD 79 $23,880.10` AD 82 $11,955.09 What is the average cost to the Property owner to convert their Edison house service? it typically costs between $1,000.00 to $4,000.00 to convert an overhead Edison service to underground. in dye recent past, costs have averaged between $1,500.00 to $3,5W.00. How do 1 pay the assessment? The assessment can be paid in cash or through bond financing. Once dre Assessment District has been approved by the City Council, properly owners have a 30-day cash payment perf0d to pay their assessment if they choose. After the 30-day cash payment period any unpaid portion of the assessment wit be financed through bond sales. If the property owner sleds to tinsnoe the casts, annual installments of principal, interest, and administrative fees win be consoled with the property tax bill. What is the 7x± discount? The 7%± is the cost of the band issuance and administration. if a property owner pays the assessment in cash, hatshe win save the 7%± bond financing costs. Cash payment 8130 saves the cost of ##area payments. Can the assesmnerrt be paid partially in cash and partially go to bond? Yes, during the 30-day cash payment period, the propeo owner will save apprnxanately 7% on the portion of the assessment l� in cash• After the � day cash payment period, the property owner can at any time make cash payments to pay off the assessment by payer off any outstanding deftluencies, the remaining principal amount or any potion of it, Me appnca bond redemption pretrriu+n, inters to the next avaiabfa bond can date and an administrgiim fee fixed by the City, eddf W811y Hwy wpi rat receive the 796± discount. What is the term of the fond financing? The bonds are usually financed over a 15 year term. What is the rate of interest on the Bonds? The rates t the past two years have ranged from 4 tom_ %- for hardship Cases? 11. Can asaassaWvts be de1°rrsd if their, situation (such individuals show consult with a tax atton18y to detem� defend tax �ymothe n a long term ld con Malden' on low fixed low") q SWS#Dn quallo", the theirm California Revenue and fax until the ProiO� sold or the 8 t 444Y also q+raMY defer►►ie�tt estate is settled- twill stiN be the � before 1 resit n 12. loca>fo "? ical manhole Transformers wifl be located in sub- su►face vaults covered by tYP Yeats. covers. Each vault requ 12 inch diameter by 30 inch high Telephone systems may also require small above ground terminals. The locations of the vents wkl be merked on the ground after the plans have been MW the property owners will know when they are i�POW to be placed led s. placed. There can be soma minor � +n theme location 13. Is the assessment tax deductible? Question needs to be directed to your tax advisor• or accountant. 14. What is the approximate assessment added to my tax bill? A rough estimate is approximately $100.00 per thousand dollars of assessment. (For exenWle: an assessment of $5000. 00 would result in an annual property tax assessment of $500.00) 15. What is the ITCC tax? Why are assessments so high? ITCC stands for Federal Income Tax Component of Contribution Tax. This is a tax assessed whenever private party contributions in aide of construction (CIAC) are made. To date Underground Utikty Disblds have not beer+ assessed this tax due to the fad that underground utWY d&dcts are viewed as providing public >s ne by inc ressing cony WndY aestheli cs and publk safety. However the City Servke decide to assess the dlofd in the component the Internal Revenue 7niiated' consNtretlon estimate even Provision results in an assessed though history does not show this tax being The ITCC portion of the 0880ssment is not generally included in the `U end to Assessment' lure. it is a separate Ante i%m met the homeowner POY up -front or decline to pay and went and see if the tax is e+^w*W#y assessed. More are three scanani0s pvssoW for p"-ftn of the Under�roundA�t �y ere as fol )". ftBlro��tg bite ITCC nd Assess"►d Option 1: The owner can This pay the wr10 result m a a law �pta it ' a only, and not the ITCC tN me tax ft f within a to be placed on the lam` to pay off this bo �Y ON ma tTCC homeowner w �� homeown30.day cash er � the Non be rerne oonww"N't at to pay off the Underground 0pjjon 2- Another is for the Wwow"f wiN �pletely remove This S � � tax oa►�onerd by whin eight (8) Years. ail property if the tax is not asses wj0 be refitnded to the than the Mr; cornponent and ON GGCmad War" Property owner who paid the tax• can choose to pay any P Of the assent ' option ITCCA tax the 30-day cash PaYno period- Mier tha pay ands any revrrakung unpaid P� wN go to bond and be assessed on period Me property ftx bill. May NO Another tailor that contributes to the cost of these di�ids that inherent P ftkes a consenrati" APProach due ft the lag in these Pis, The esWWOr must allow tans for sd*dL*V a district to go to City Council for a pubik hearing, allow for a 30 day cash PaY� , a the conftd period for bond sales, then ultimately a a mo construction. This Period can take upwards of 4 to 5 16. What Is the Interest raft on the ITCC portion thst Is rGMndsd? Interest rate cannot be determined until after the bonds are sold The rate wdl be leas then the bond rate. rleww im F. dw • CLTY OF NEWPOICr BEACH PUBLIC WORKS DEPARTMENT 33tm Newport Boulevard P.O. Box 1768 Newport Beach, Ca. 92659 -1768 m. Barbara Glabman 1363 Galaxy Dr. Newport Beach, CA 92660 SUB)ECT: Area within Bayside Dr., First Ave., Avocado Ave., & 7f Begonia Ave. We are transmitting the following: No. Copies Description Petition Forms and Instructions Utility Undergrounding Ad — 94 Area within: Bayside Drive, First Avenue, Avocado Avenue, and Begonia Avenue. Remarks: The total amount of this estimate includes a utility betterment tax, • Which the City may be obligated to pay. Although this tax has not been assessed in the past, the City must disclose this liability and make the bonds available for sale, should the tax be assessed at a later date. The amount of bonds sold will most likely not include the ITCC tax which will provide a lower assessment value of approximately $22,11759, based on 31 paroels. However, if the City is required to pay the ITCC tax, the assessment could be as high as $25,190.17 1 Please circulate the petition forms for Signatures. If you have any questions you can reach me at (949) 644 -3347. r o`N { i��1 O� not- . �M SSCOt ockt- Patrick L. Arcimega Associate Engineer Attachments k \USERS\PBMnDHoffW&XAD %Ad%%T-- K'Ao"-d- 0 0 �xti i ty�+- :--W3 CITY OF NEWPORT BEACH PUBLIC WORKS DEPARTMENT Stephen G. Badum> Director December 14, 2004 GERALD C OSTROWSKY 413 ACACIA AVE CORONA DEL MAR CA, 92625 Subject: Status of Proposed Underground Utilities Assessment District No. 94 Site Address: 413 ACACIA AVE Parcel Number: 459 101 10 Dear Resident, Due to the numerous phone calls and resident inquiries, this letter is being sent to you to provide some information on the Proposed Underground Utilites Assessment District No. 94 (AD -94). A petition was signed by 62% of the residents within the boundaries of AD-94 was received on July 15, 2003. An exhibit is attached for your information. On July 27, 2004, City Council authorized an expenditure of- $11,260.00 to Southern California Edison (SCE) for AD desi n. Since that time SCE has been developing basemaps for design of their underground system. The initial step in forming an AD requires a petition signed by 60 %+ of the landowners of a specific area. Once this is accomplished the City loans the proposed district funds to have plans designed and an Engineer's Report written. In the Engineer's Report the final assessments are distributed and the method of assessment is detailed. The Report is sent to City Council for preliminary approval and ballots are mailed to residents of the district for a vote at a public hearing. The ballot contains the amount of the final assessment the property owner will be assessed if the District is formed. The vote is tabulated at the Public Hearing to determine if a majority interest exists to form the AD. A majority vote for the AD allows City Council to form the District. AD -94 is not a confirmed Assessment District at this time because there has not been a vote for the District. This 'proposed' District is in the initial design stages. We do not anticipate being ready to go to a public hearing vote until Spring of 2006, at which time the property owners within the AAD boundary will have the opportunity to vote for the undergrounding. if you have any questions or need additional information, piease feei free to caii meat (949) 644 -3347 Very truly yours, Patrick Arciniega Project Engineer Attachments: AD FAQ's AD -94 Exhibit List of Property Owners on petition 1i*A AdRak- ResiOe "123A4AD94 dw 3300 Newport Boulevard • Post Office Box 1768 • Newport Beach. California 92658 -8915 Telephone: (949) 644 -3311 • Fax: (949) 644 -3318 • www.city.newport- beach.ca.us i • TYPICAL QUESTIONS & ANSWERS ABOUT UNDERGROUNDING ASSESSMENT DISTRICTS 1. What is an Assessment District? An Assessment District is a financial tool. In the early 1900's, the California Legislature established a means by which citizens could assess themselves for the construction of public infrastructure and utilize public financing for the costs of that infrastructure, if desired. The cost of improvements is spread in proportion to the benefit of properties within the boundaries of the designated area. Municipal bonds may be used to finance the cost of the district over a specified time. - Assessment Districts are initiated by interested citizens (proponents) within a given area. 2. How long does it take to process an assessment district? Approximately thirty (36) months assuming all processes proceed without any delays. Typically Assessment Districts from start to finish take considerably longer to complete. Assessment District Start Date Completion Date AD 15 4199 4104 AD 70 1103 4104 AD 74 7/01 6104 AD 86 11102 6104 3. What is the process? A. The proponents meet with the City and determine a scope of work. B. A preliminary estimate is prepared by the City and utilities based upon past experience. C. Petition forms are prepared by the City and given to proponents to distribute. D. Once petitions from owners representing at least 60% of the land area within the district are submitted to the City, Staff presents the petitions to the City Council. E. City Council advances funds to the district to hire an Assessment Engineer to prepare. the required Engineers Report, to hire a Bond Counsel for legal advice, and to provide a cash advance to Edison and Pac Bell so that they can prepare plans for undergrounding the overhead utilities. 2 L The Assessment Engineer verifies that owners representing 60% of the property within the district have signed the petition. ii. Edison begins the design of the underground utilities. Once Edison has completed their design, Pacific Bell and Adelphia Cable use the Edison plans as a base. plan to design their underground facilities. The above process takes between 6 months to 1112 years. F. Once the plans and Engineers Report have been completed, the district is submitted to City Council to present the Engineers Report, approve the Resolution of Intention, and to schedule the required-public hearing. Ballots will be sent to each property owner with the meeting notice. (Note: If the City receives more YES votes than NO votes by the end of the public hearing the district is approved. However, if the City receives more NO votes than YES votes by the end of the public hearing, the district fails.) G. An informal properly owner information meeting is held prior to the public hearing to explain the - proposed district to the property owners and answer any questions H. Once the public hearing is completed and the district is approved, the following occurs: is The 30 day cash payment period is conducted. ii: Bonds' are sold to fund construction of the Underground Assessment District. iii. City forwards payment to Edison and Pacific Bell for their undergrounding construction. iv. Edison advertises the construction contract forbid. This process takes approximately 4 to 6 months. 4. What is .the average r'hdrNkfiial assessment cast the over! Undergrounding overhead utility lines that service the district are usually assessed on a per parcel basis. Typically, each property owner is assessed in accordance to benefit. However, the conversion of the individual service connection is the responsibility of each property owner and is paid for by the property owner. Some recent Assessment Districts and their average assessments: Assessment Disrict AD 70 AD 78 AD 79 Avg. Assessment (not including 1TCO $9,099.37 $9,154.28 $23,880.10" 9 0 3 AD 82 $11,955.09 'This district included additional improvements storm drain and street reconstruction. 5. What is .the average cost to the property owner to convert their Edison house service? It typically costs between $9,000.00 to $4,000.00 to convert an overhead Edison service to underground. In the recent past;: costs have averaged between $9,500.00 to $3,500.00. _ S. . How do 1 pay the assessment? The assessment can be paid in cash or through bond financing. Once the Assessment District has been approved by the City Council, property owners have a 30 -day cash payment period to pay their assessment if they choose. After the 30-day cash payment period any unpaid portion of the assessment will be financed through bond sales. If the property owner elects to finance the costs, annual installments of principal, interest, and administrative fees will be collected with the pmperty.tax bill. 7. What is the 8 %+ discount? The 8 %± is the cost of the bond issuance and admiriistration. If a property owner pays the., assessment in cash,: he/she -.will save the 8%± bond financing costs: Cash payment also saves the cost of- interest payments. 8. Can the assessment be paid partially in cash and partially go to bond? Yes, during the 30-day cash payment period, the property owner will save approximately 8% on the portion of the assessment paid in cash. After the 30 day cash payment period, the property owner can at any time make cash payments to pay off the assessment by paying off any outstanding delinquencies, -the remaiping. principal. amount or any portion of it, the applicable bond redemption premium, interest to the next available bond call date and an administrative fee fixed by the City, additionally they will not receive the 8 %± discount. 9.. What is the tenn of the bond financing? The bonds are usually financed over a 95 year term. 10. What is the rate of interest on the Bonds? The bond financing reflects the market rate at the time of issuance. Recent bond rates over the past two years (2002 -2003) have ranged from 4.5 to 6 %. 11. Can assessments be deferred,for hardship cases? , 4 Individuals should consult with a tax attorney to determine if their situation (such as a long term resident on low fixed income) qualifies for deferred tax payments under the California Revenue and Tax Code. If their situation qualifies, the assessment MAY also qualify for deferment until the property is sold or the estate is settled. 12. What equipment will still be visible above ground? Will I get a chance to review proposed locations of the equipment before they are cast in concrete? - Transformers will be located in sub - surface vaults covered by typical manhole covers. Each vault requires two-12 inch diameter by 30 inch high vents. Telephone systems may also require small above ground terminals. The locations of the vents will be marked on the ground after the plans have been completed so that the property owners will know where they are proposed to be placed Those can be Borne minor adjustments in their to cations. 13. Is the assessment tax deductible? Question needs to be directed to your tax advisor, or accountant. 14. What is the approximate assessment added to my tax bill? A rough estimate is approximately $100.00 per thousand dollars of assessment.. (For example: an assessment of $5060.40 would result in an annual property tax assessment of $500.00) 15. What is the ITCC tax? Why are assessments so high? ITCC stands for Federal Income Tax Component of Contribution Tax. This. is a tax assessed whenever private party contributions in aide of construction (CIA C) are made. To date. Underground Utility-Districts have not been assessed #his tax due to the fact that underground utility districts are viewed as providing public benefit by increasing community aesthetics and public safety. However the City is still required to account for this tax component should the Internal Revenue Service decide to assess the district in the future. This provision results in an inflated' construction estimate even though history does not show this tax being assessed. The ITCC portion of the assessment is not generally. included in the Underground Assessment' figure. It is a separateiine item that the homeowner can choose to pay up -front or decline to pay and wait and see if the tax is eventually assessed. There are three scenarios possible for handling the ITCC portion of tha Underground Assessment. They are as follows: • Option 1: The owner can, choose to pay the Underground Assessment amount only, and not the ITCC tax. This will result in a lien for the iTCC tax • • to be placed on the property. If the tax is assessed at a later date the homeowner will have the opportunity to pay off this tax - component within a 30-day cash payment period. If the homeowner chooses. to pay off the ITCC . component at this time the lien will then be removed. • Option 2: Another option is for the homeowner to pay off the Underground Assessment and the ITCC tax component in full. This will completely remove all property liens. If the tax is not assessed by the IRS within eight (8) years, then the ITCC component and all accumulated interest will be refunded to the property owner who paid the tax. • Option 3: A homeowner can choose to pay any portion of the assessment and/or ITCC tax within the 30-day cash payment period. After the payment period ends any remaining unpaid portion will go to bond and be assessed on tha property tax bill: Another factor that contributes to the cost of these districts is that when they are priced the estimator takes a conservative approach due to the lag time inherent in these projects. The estimator must allow time for scheduling a district to go to City Council for a public hearing, allow for a 30 day cash payment period, a period for bond sales, then ultimately awarding the contract and going to construction. This period can take upwards of 4 to 5 months. 16. What is the interest rate on the ITCC portion that is refunded? Interest rate cannot be determined until after the bonds are sold.. The rate will be less than the bond rate. 17. My property is held in a trust. Who should sign the petition? One of the trustees of the properties should sign for the property and indicate that he /she is a trustee of the property. 18. What if I cannot sign the petition, with one of the proponents present? I(the property owner cannot arrange a time to sign in the presence of a proponent of the assessment district, the property owner must submit a notarized petition to the proponent. Revised 10103 F.•VJSERSIPB MPA=megvWDM STERSOD- FAQ.dw OWNER'S WHO SIGNED PETITION FOR AD -94 Parcel Ik. Site <. ... _ . ... Owner . -. ' Address 459,1.02 71 . j' 0' kSON >JGHN C = = : 23Z0 ffCIFIC DR 45910208 BARBARA A YINGLING 111 2308' ` ° - PACIPIC-DR 459 101 12 SUSAN S TR BAKER 2200: PACIFIC DR " 459 101 09 ERVIN ROBERT KENDZIORSKI 2228 PACIFIC DR 459 101 08 TERRENCE J WALLOCK 2224 PACIFIC DR 459 101 07 NANCY NING 2220 PACIFIC DR 459 101 02 LESLIE A TR WILEY 408 AVOCADO AVE 052 011 22 GREGORY CHARLES BEIZLER 2305 PACIFIC DR . 052 011 21 BRETT M JOHNSON 2219 PACIFIC DR 052 011 20 . BRETT M.JOHNSON 2219 PACIFIC DR 052 011 14 GRANT BEfTINGEN 2215. PACIFIC DR 052 011 12 WALTER W CRUTTENDEN ID 2209 PACIFIC DR 052 011 10 RODEFFER PHYLLIS M 2222 PACIFIC DR 052 011 09 RODEFFER PHYLLIS M 2227 PACIFIC DR 052011-68 PAUL A TR MOSES 2231 PACIFIC DR 052 011 07 BAYER MICHAEL E A 2235 PACIFIC DR 052 011 05 JAMES TR GLABMAN 2315 PACIFIC DR 052 011 04 1 NELLA WEBSTER 2319 PACIFIC DR 052 011 03 BARBARA A DAWKINS 2329 PACIFIC DR Underground Utility Assessment District No. 94 Facts You Should Know As members of this assessment district, we are voting NO on the ballot we just received. We hope that after reading the facts below, you too will vote against this effort to impose significant costs to attain very little aesthetic benefit. Consider these facts: • Initial meetings were not officially announced by the City of Newport Beach to the entire district • MISLEADING COSTS enticed homeowners to consider the proposal to remove poles with assessment estimates starting at SS,000 or 57, 000. As early as 2003, a lesser from the NB Pabtic Works Depaibnent to the original honeeowner proponart showed costs to be 522,000 to 825,000. Yet the city didn't oJfciagy anaorasee the cement assessments awl Febrawy 2®, 20071 • Now that the assessments are official, many homeowners who voted for the creation of the district have said they have changed their minds due to the high casts and limited benefits • Most properties will pay between $24,000 to over 527,000 (or annual assessments of approximately 53,000) • Most homeowners will see additional attachment costa of approximately $2,000-55,000 o Some homeowners face complicated attachment costs of over $15000 • Some homeowners on fixed incomes have stated that they will be forced to sell their properties • Original votes do not reflect the current assessment district • For the original vote, no public notice was sent to all the members of the district • Of the votes tallied, one vote was counted twice and one represented a home that was eliminated from the district • Additional homes were added to the district without any re voting process • The district is too small — only 37 homes — even the Mayor of NB agrees. Most homeowners will still see poles. Aesthetic benefits are very limited • Only a limited number of poles will be removed. Poles will still remain in some alleys and along a Avenue • In one case a pole will be removed and re- erected 2 fed from the original site! • The district has illogical boundaries They were gerrymandered and manipulated in order to find a critical number of homeowners who would consider being in the assessment district • This district came about because of one activist homeowner who no longer lives in the district! We believe the equitable way for the city to approach this would be to declare all of Corona del Mar to be an assessment district The removal of all poles would indeed be an aesthetic improvement and the economies of scale would keep the costs more reasonable for each homeowner. Instead, the efforts of one activist person has resulted in pitting neighbor against neighbor, hidden inflated costs, and minimal aesthetic benefit to the area. For these reasons we ask you to vote NO on your ballot. Nyou already submitted your ballot, you can change it at any time until the public hearing on May & Thank yon. 0 0 WHY THE 94'$ ASSESSMENT DISTRICT SHOULD BE DISBANDED To: Mayor and City Council of Newport Beach From: Concerned members of the 94° Underground Utilities Assessment District Subject: Improper Procedures in Implementation of the District Many homeowners in the 94'b AD allege that the City of Newport Beach acted immromerty and perhaps ideallt to implement this district. Here are some facts to support this al legation. 1. Misleading Cost Estimates: • 2001: Initial Q&A circulated by the city stated an assessment range of $5,725 to $11,955. This low cost estimate was the basis for the one and only vote to form the district • 2003: Letter from NB Public Works Department to the homeowner who instigated the formation of the AD, stated a range of $22,000 to $25,000 • 2004: Letter from NB Public Works Department to 94'm AD homeowners shows a range of $900 to $11,955 even though there was knowledge of much higher costs!! • At least five homeowners who signed the petition said they would not have voted for the district N they were informed of the proper costs. 2. Improper Voting Procedures. There has never been a vote by the homeowners of the current district to determine whether to form the district. • The original and only vote taken consisted of 31 properties in the AD of which: • One property /signature was eliminated • One property and signature was listed twice • Total of 17 yes votes for 30 properties ....57 %. not 62 %!! • With proper estimated costs, there would have been only 12 votes .... 40%!! • No subsequent vote was held even though seven new homes were added to create a larger district and four of the original homeowners have since moved (including the original instigating proponent) • The current district has 37 propertles. This district was based on a vote of only 17 homeowners. This is only 46% instead of the required 60+% of the district!! • The original proponent and not the city circulated the petition As a result, many homeowners never had a chance to vote and the boundaries of the district are highly irregular (and laughable) and gerrymandered to include the original 17 `yes' votes. 3. Exhibits: • #1- 2001Q &A • #2 — 2003 Letter to original instigating homeowner • #3 —2004 Letter and Q &A • #4 — Maps of the AD: A and B • #5 — Information sheet with the listed concerns There are many items outlined in exhibit #5 which describe homeowner hardships and expensive Installation costs of approximately $15,000 in addition to the assessment costs of up to $27,000. The proper approach for the City of Newport Beach would be to have the entire village of Corona del Mar, where poles exist, to vote to remove all poles. The 94'" Assessment District is too costly. It leaves many poles in place and does not improve the overall area's aesthetics. We hope the Mayor and City Council vote to overturn this inequitable AD and cause it to be disbanded. 0 0 NOTICE OF APPOINTMENT AS DEPUTY CITY CLERK Notice is hereby given that Patrick Arciniega is appointed Deputy City Clerk effective May 8, 2007. This appointment shall continue until May 9, 2007 and is for the purpose of tabulating ballots for proposed Assessment District No. 94 at the City Council meeting of May 8, 2007. V {� in.G LaVonne M. Harkless, City Clerk -6 Date CERTIFICATE AND STATEMENT OF ASSESSMENT BALLOT TABULATION ASSESSMENT DISTRICT NO. 94 (PACIFIC DRIVE - CORONA DEL MAR) 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. 94 (Pacific, Drive - Corona del Mar) (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 May 8, 2007 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 of Ballots Received Total "Yes" Ballots Total "No" Ballots Asmt Amt: $ 6Q 4$41, Asmt Amt: S 2?sj lg2.s�. Asmt Amt: No of Parcels: Asmt Amt Asmt Amt Percent Yes: % Percent No: s8 % I This certification is executed this May 8, 2007 in Newport Beach, California. Deputy City Clerk Assessment Engineer AD 94 Pacific Drive Ballot Tabulation Assessment No. APN YIN Assessment Yes Votes No Votes 1 052 - 011 -01 27,470.87 - - 2 052- 011 -03 N 27,470.87 - 27,470.87 3 052 -011 -04 Y 27,470.87 27,470.87 - 4 052- 011 -05 Y 27,470.87 27,470.87 - 5 052- 011 -07 Y 27,470.87 27,470.87 - 6 052- 011 -08 Y 27,470.87 27,470.87 - 7 052- 011 -09 N 27,470.87 - 27,470.87 8 052- 011 -12 N 27,470.87 - 27,470.87 9 052- 011 -14 N 27,470.87 - 27,470.87 10 052 -011 -20 27,470.87 - - 11 052 - 011 -21 27,470.87 - - 12 052- 011 -22 Y 27,470.87 27,470.87 - 13 052- 011 -23 27,470.87 - - 14 459- 101 -02 N 27,470.87 - 27,470.87 15 459- 101 -06 Y 27,470.87 27,470.87 - 16 459- 101 -07 N 27,470.87 - 27,470.87 17 459- 101 -08 27,470.87 - - 18 459- 101 -09 Y 27,470.87 27,470.87 - 19 459- 101 -10 N _ 27,470.87 - 27,470.87 20 459 - 101 -12 Y 27,470.87 27,470.87 - 21 459- 101 -13 N 3,433.86 - 3,43186 22 459- 101 -14 2,289.24 - - 23 459- 102 -01 N 2,289.24 - 2,289.24 24 459- 102 -04 N 3,433.86 - 3,433.86 25 459- 102 -05 N 11,446.20 - 11,446.20 26 459 - 102 -06 Y 27,470.87 27,470.87 - 27 459- 102 -07 N 27,470.87 - 27,470.87 28 459- 102-08 Y 27,470.87 27,470.87 - 29 459- 102 -09 N 24,037.01 - 24,037.01 30 459- 102 -10 27,470.87 - - 31 459- 102 -11 N 27,470.87 - 27,470.87 32 459- 102 -12 N 27,470.87 - 27,470.87 33 459- 102 -13 27,470.87 - - 34 459- 102 -14 N 27,470.87 - 27,470.87 35 459- 102-15 N 10,30158 - 10,301.58 36 - 938 -01 -418 Y 3,433.86 3,433.86 - 37 938- 01-430 3,433.86 - - TOTAL 37 $835,000.00 278,142.56 357,121.31 43.8% 56.2% 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 28 CERTIFICATE AND STATEMENT OF ASSESSMENT BALLOT TABULATION ASSESSMENT DISTRICT NO. 94 (PACIFIC DRIVE - CORONA DEL MAR) 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. 94 (Pacific Drive - Corona del Mar) (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 May 8, 2007 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 of Ballots Received Total "Yes" Ballots Total "No" Ballots (r: Asmt Amt: $I r5',- Asmt Amt: $ ,; '. 7 .. Asmt Amt: $' No of Parcels: 2(_1 Asmt Amt Asmt Amt F_ri % viii. `1 l,t; `- �:_j Percent Yes: C> % Percent No: `.�1:;.'L. % This certification is executed this May 8, 2007 in Newport Beach, California. Deputy City Clerk l V 0. Assessment Engineer AD 94 Pacific Drive Ballot Tabulation Assessment No. APN YIN Assessment Yes Votes No votes 1 052 - 011 -01 27,470.87 - - 2 052- 011 -03 N 27,470.87 - 27,470.87 3 052- 011 -04 Y 27,470.87 27,470.87 - 4 052- 011 -05 Y 27,470.87 27,470.87 - 5 052- 011 -07 Y 27,470.87 27,470.87 - 6 052- 011 -08 Y 27,470.87 27,470.87 - 7 052 - 011 -09 N 27,470.87 - 27,470.87 8 052- 011 -12 N 27,470.87 - 27,470,87 9 052- 011 -14 N 27,470.87 - 27,470.87 10 052- 011 -20 27,470.87 - - 11 052 - 011 -21 27,470.87 - - 12 052- 011 -22 Y 27,470.87 27,470.87 - 13 052 - 011 -23 27,470.87 - - 14 459- 101 -02 N 27,470.87 - 27,470.87 15 459 - 101 -06 Y 27,470.87 27,470.87 - 16 459- 101 -07 N 27,470.87 - 27,470.87 17 459- 101 -08 27,470.87 - - 18 459 - 101 -09 Y 27,470.87 27,470.87 - 19 459- 101 -10 N 27,470.87 - 27,470.87 20 459- 101-12 Y'- 271,470.87 27,470.87 - 21 459- 101 -13 N 3,433.86 - 3,433.86 22 459 - 101 -14 2,289.24 - - 23 459 - 102 -01 N 2,289.24 - 2,289.24 24 459- 102 -04 N 3,433.86 - 3,433.86 25 459- 102 -05 N 11,446.20 - 11,446.20 26 459- 102 -06 Y" 27,470.87 27,470.87 - 27 459- 102 -07 N 27,470.87 - 27,470.87 28 459 - 102 -08 Y 27,470.87 27,470.87 - 29 459- 102 -09 N 24,037.01 - 24,037.01 30 459 - 102 -10 27,470.87 - - 31 459- 102 -11 N 27,470.87 - 27,470.87 32 459- 102 -12 N 27,470.87 - 27,470.87 33 459- 102 -13 27,470.87 - - 34 459- 102 -14 N 27,470.87 - 27,470.87 35 459- 102 -15 N 10,301.58 - 10,301.58 36 938 -01 -418 Y 3,433.86 3,433.86 - 37 938 -01 -430 3,433.86 - - TOTAL 37 $835,000.00 278,142.56 357,121.31 43.8% 56.2% * This ballot was not counted because it was not signed. 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 29