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HomeMy WebLinkAbout04 - Proposed Assessment District 99-2CITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 4 July 22, 2008 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Public Works Department Alfred Castanon 949- 644 -3314 or acastanon @city.newport- beach.ca.us SUBJECT: Proposed Assessment District No. 99 -2 — Area Generally Bounded by Balboa Boulevard and Ocean Front West, from west of 20th Street to 141h Street, and 191h Street between Newport Channel and Balboa Boulevard - for Undergrounding Utilities and Designation as an Underground Utilities District Recommendations: 1. Adopt the following Resolutions for Proposed Assessment District No. 99 -2 a. Resolution No. 2008- Adopting a Map Showing the Proposed Boundaries of, and Making Appointments for Proposed Assessment District No. 99 -2. b. Resolution No. 2008- _ Declaring Intention to Order the Construction of Certain Improvements in Proposed Assessment District No. 99 -2; Declaring the Improvements to be of Special Benefit; Describing the District to be Assessed to Pay the Costs and Expenses Thereof; Providing for the Issuance of Bonds; and to Designate the Area an Underground Utilities District. c. Resolution No. 2008- _ Giving Preliminary Approval to the Report of the Assessment Engineer for Assessment District No. 99 -2, Setting a Time and Place for a Public Hearing as September 23, 2008; and Ordering the Initiation of Assessment Ballot Procedures. 2. Approve the Bond Counsel Agreement with Robert Hessell and authorize the Mayor and City Clerk to execute the Agreement. Discussion: On June 26, 2007, the vote for the proposed Assessment District 99 resulted in a majority protest with 61% of the submitted ballots in opposition, and 39% of the submitted ballots in favor. Most property owners north of Balboa Boulevard and west of 20"' Street voted against the formation of the proposed district. Proposed Assessment District No. 99 -2-4or Undergrounding Utilities and Designation as an Underground Utilities District July 22, 2008 Page 2 Since the June 2007 vote, the District proponents have requested the City to reauthorize the original District request on the ocean -side of Balboa Boulevard between 14th and 19" Streets. After extensive discussion and review with the community, the revised District Boundary map was developed (contained in the Preliminary Engineer's Report). Staff and the proponents are very confident that the revised district will be successful and request the City to move ahead. In addition to the boundary change, which has decreased the size of the district, Federal Income Tax Component of Contribution Tax (ITCC) has been eliminated pursuant to subsequent Council direction. The ITCC is a tax assessed whenever private party contributions in aid of construction (CIAC) are made. To date, Underground Utility Districts have not been assessed this tax as underground utility districts are viewed as providing public benefit by increasing community aesthetics and public safety. Proposed Assessment District No. 99 -2 is for the conversion of existing overhead utilities to underground locations. Property owners within the proposed Assessment District boundary will bear the cost of the improvements and associated proceedings. To date, City Council has approved a total appropriation of $165,207 for the preliminary stages of this project including $93,450 to retain the firm of Harris & Associates as the assessment engineer, and $14,157 and $57,600 to SCE and AT &T, respectively, to prepare the engineering drawings for the District. If the District is formed, these costs are incorporated into the project costs. If the District fails to form, the City is responsible for these costs. The Municipal Improvement Act of 1913 governs the procedures used to create the Assessment District. Bonds issued under the Improvement Bond Act of 1915 carry up to a 40 -year term and are issued to finance assessments not paid in cash within 30 days after confirmation of the assessment. Staff is recommending a 20 -year term for this District. The estimated total cost for Proposed Assessment District No. 99 is as follows: ITEM COST Cost of Construction $2,963,072 Incidental Costs and Expenses $382,078 Financing (Bond) Costs $499,850 Estimated Total Cost: $3,845,000 Estimated cost does not include the Federal Income Tax Component of Contribution (ITCC) tax, which is a betterment tax. Bond Reserve for this district is estimated at six percent. Property owners paying their assessments in full during the 30-day cash payment period waive the financial cost of issuing and servicing the bonds and receive a discount of approximately 12 percent. In addition to the payment of the assessment, each property owner is responsible for the costs of connecting the main service conduit in the pubic right -of -way to the Proposed Assessment District No. 99-2 —for Undergrounding Utilities and Designation as an Underground Utilities District July 22, 2008 Page 3 property owner's home or business. The cost to the property owner for this conversion varies depending on the condition and location of the current electrical service. Each property owner is encouraged to contact a licensed electrical contractor to assess the particular property needs. The following is a tentative schedule for proposed Assessment District No. 99 -2: Resolution of Intention July 22, 2008 Property owner information meeting August 12, 2008 Public Hearing September 23, 2008 Public utilities commence work December 1, 2008 Property owners notified to install service connections June, 2009 Property owners complete conversions February , 2010 Public utilities begin to remove overhead structures March, 2010 Public utilities finish removing poles and overhead structures June, 2010 The Assessment Engineer used a lot size" methodology to apportion assessments within this District, considering that all properties are receiving the same Safety, Connection (or reliability) and Aesthetic benefit. However, in eleven special cases the specific benefit apportioned to a property was reviewed in detail. The special benefits from undergrounding the overhead utilities were defined as follows: 1) Additional Safety Benefit — This benefit relates to the additional safety of having the overhead distribution wires placed underground and having the power poles removed, which eliminates the threat of downed utility lines and poles due to wind, rain and other unforeseeable events. 2) Connection Benefit — This benefit relates to the enhanced reliability of service from the utilities being underground, due to having all new wires and equipment and having that equipment underground, which reduces the threat of service interruption from downed lines. 3) Improved Aesthetic Benefit - This benefit relates to the improved aesthetics of the streetscape due to the removal of overhead wires and utility poles. For the special cases, these benefits were reviewed and calculated per the following: Parcel Safety Total Area` X [ Benefit + Connection + Improved Aesthetic = Benefit (SF) Factor Benefit Factor Benefit Factor points /3 `Parcel size rounded to the nearest 100 square feet to account for minor area calculation inconsistencies. The range for the estimated assessment costs per parcel is $1,664.55 to $106,659.78. Assessments vary over a wide range due to the variation of property sizes, uses, and the degree of undergrounding required. Proposed Assessment District No. 99 -2 -4or Undergrounding Utilities and Designation as an Underground Utilities District July 22, 2008 Page 4 The following is a summary of each property with special consideration: • Assessment No. 12, APN 047 - 181 -01 - This is City property located at 19th Street and Newport Channel which consists primarily of public access ways and recreational beach areas which do not benefit from utility undergrounding. However, a portion of this property, the restroom facility, is adjacent to 19 Street. The restroom facility is approximately 700 square feet in size. Therefore, the benefit for this property is calculated based on the portion of the property receiving benefit, which is 700 square feet. • Assessment No. 16, 17 and 18. APN 939 -85 -052, 939 -85 -053 & 939 -85 -054 — These Condominium parcels located at 1824 Vilelle Place, Units A, B and C are adjacent to wires and poles being undergrounded in 19th Street, but will still have wires and poles adjacent to them in Vilelle Place, to which they are connected. These parcels do not receive the same level of benefits as other parcels in the District; they receive half the Aesthetic and Safety Benefits and no Connection Benefit. Therefore, these properties receive '/: + '/: + 0 = 1 of 3 of the aesthetic benefits of other properties. Their rounded parcels areas have been multiplied by 113 calculate the Assessed Parcel Area to fairly apportion the costs. • Assessment No. 19 and 20, APN 939-85 -057 & 939 -85 -058 - These condominium parcels located at 1830 W Balboa Boulevard, units 1 and 2 are not adjacent to wires and poles being undergrounded in 19th Street except for one guy pole, and they have wires and poles adjacent to them in Vilelle Place, to which they are connected. These parcels do not receive the same level of benefits as other parcels in the District; they receive half the Aesthetic Benefit and no Safety or Connection Benefits. Therefore, these properties receive Y2+0 + 0 =' /z of 3 of the benefits of other properties. Their rounded parcel areas have been multiplied by 116 to calculate the Assessed Parcel Are to fairly apportion the costs. • Assessment No. 21, APN 047 - 152 -05 - This parcel will have a pole remaining directly adjacent to it, although the overhead wires crossing the property will be undergrounded. This parcel does not receive the same level of benefits as the other parcels in the District. It receives half of the Aesthetic and Safety Benefits but all of the Connection Benefit. Therefore, this property receives '/z +' /z + 1 = 2 of 3 of the benefits of other properties. Its rounded parcel area has been multiplied by 213 to calculate the Assessed Parcel Area to fairly apportion the costs. • Assessment No. 23, 24. 25 and 26, APN 047 - 152 -12, 047 - 152 -08, 047 - 152 -07 & 047 - 153 -21 - These parcels located at 2004, 2006, 2000 and 2001 Court Avenue will have poles remaining adjacent to them on one of their fronting streets. These parcels receive half of the Aesthetic and Safety Benefits but all of the Connection Benefit. Therefore, these properties receive '/z + '/z + 1 = 2 of 3 of the benefits of other properties. Their rounded parcel areas have been multiplied by 213 to calculate the Assessed Parcel Area to fairly apportion the costs. Proposed Assessment District No. 99 -2 —for Undergrounding Utilities and Designation as an Underground Utilities District July 22, 2008 Page 5 ■ Assessment No. 102 and 103, APN 047 - 201 -01 & 047 - 201 -02 - These parcels located at 1733 and 1725 W Balboa Boulevard are connected to the utilities that are proposed to be undergrounded, but do not have any of these wires and poles adjacent to their properties and do not take access from the roadways being undergrounded. These parcels do not receive the same level of benefits as other parcels in the District; they receive only a Connection Benefit, but no improved Aesthetic or Safety Benefits. Therefore, these properties receive 0 + 0 + 1 = 1 of 3 of the benefits of other properties. Their rounded parcel areas have been multiplied by 113 to calculate the Assessed Parcel Area to fairly apportion the costs. Assessment No. 188, APN 047 - 300 -03 - This is State property located south of Ocean Front at 15 Street and consists primarily of recreational beach areas that do not benefit from utility undergrounding. A portion of this property, the restroom facility, is served by the utilities being underground. This restroom facility is approximately 2,000 square feet in size; therefore, the Connection Benefit for this property is calculated based on the portion of the property receiving benefit, which is 2,000 square feet. Assessment No. 189, APN 047 - 212 -25 - This property, which is our Lady of Mt. Carmel Catholic Church located at 1441 W Balboa Boulevard, is zoned for "Private Institution" and as such utilizes only about half of the parcel for developed church buildings, with the other half being used exclusively for parking. Therefore, this parcel is only about 50% utilized and is considered to receive only 50% of the benefit of the properties that are, or can be, utilized to the fullest capacity of the property. Therefore, this parcels benefit is calculated based on half the total area of the property, or at 15,900 square feet. Assessment No. 204, APN 047 - 240 -01 - This is the Newport Elementary School property which has only a single pole (no wires) adjacent to its 225 linear feet of frontage on 14th Street. The pole, located at the intersection of 14th Street and the alley, is the terminus of the undergrounding project. Because of this, this property is deemed to receive no Aesthetic or Safety Benefits from the undergrounding project. Regarding the Connection benefit, this property will only receive telephone and cable service from the undergrounding project (2 of the 3 services available to the other properties). However, this property also receives these services from facilities on 13th Street from poles and wires that are not being underground. This parcel does not receive the same level of benefits as the other parcels in the District. The following calculates the relative benefits it receives: (1 of 3 benefits) x (2 of 3 services) x (1 of 2 service locations) (1 /3) x (213) x (1 /2) = 119 Therefore, this property receives 119 the benefit of the other properties. Its rounded parcel area has been multiplied by 119 to calculate the Assessed Parcel Are to fairly apportion the costs. Proposed Assessment District No. 99 -2 —for Undergrounding Utilities and Designation as an Underground Utilities District July 22, 2008 Page 6 City -owned alleyi)arcel - Assessor's Parcel Number (APN) 047 - 171 -21 is a part of a public alley, providing access to the alley between 20th Street and 19th Street. This property, as part of the alley and with no potential for development, receives no special benefit from the proposed improvements and is considered exempt from assessment. Parcel "Not A Part" of the Assessment District - The property located at 1600 West Ocean Front (APN 047 - 202 -16) is not a part of this Assessment District due to previous utility undergrounding activities. This property does not receive any benefits from this currently proposed undergrounding project and, therefore, has been excluded from the boundaries of the Assessment District. Drawings and specifications for this assessment district were prepared by SCE, AT &T, and Time Warner Cable. Attached is a sketch showing the boundary of the proposed Assessment District No. 99 -2 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. Funding Availability: Funds will be provided by property owner contributions and / or bond proceeds if the assessment district is approved. Prepared by: Submitted b Alfrea Castanon ph G. Badum Associate Civil Engineer Pub • Works Director Attachments: 1. Resolution Receiving a Petition for, Adopting a Map Showing the Proposed Boundaries of, and Making Appointments for the Proposed District No. 99 -2 2. Resolution Declaring Intention to Order the Construction of Certain Improvements; 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 Designate the Area an Underground Utilities District 3. Resolution Giving Preliminary Approval to the Report of the Assessment Engineer, Setting a Time and Place for a Public Hearing as September 23, 2008; and Ordering the Intention of Assessment Ballot Procedures 4. Bond Counsel Agreement 5. Notice of Exemption 6. Preliminary Engineer's Report RESOLUTION NO. 2008 - RESOLUTION ADOPTING A MAP SHOWING THE PROPOSED BOUNDARIES OF, AND MAKING APPOINTMENTS FOR, PROPOSED ASSESSMENT DISTRICT NO. 99-2 (BALBOA BOULEVARD ALLEY) WHEREAS, certain property owners have requested the formation of a special assessment district, to be designated as Assessment District No. 99 -2 (Balboa Boulevard Alley) (the "Assessment District'), to provide for the conversion of certain overhead electrical and communication facilities to underground locations as described in the map hereinafter approved, together with appurtenances and appurtenant work in connection therewith, pursuant to the terms and provisions of the ordinances of the City of Newport Beach and the "Municipal Improvement Act of 1913 ", being Division 12 of the Streets and Highways Code of the State of California (the "Act'); 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 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 3. 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 4. 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 5. The Daily Pilot is hereby designated as the newspaper for all publications as required by law and as necessary forthe Assessment District proceedings. SECTION 6. The firm of Harris & Associates is hereby appointed the Assessment Engineer for the Assessment District proceedings and the contract for services submitted is hereby approved. SECTION 7. 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 8. Robert E. Hessell, attorney at law, is hereby appointed to act as Bond Counsel for the Assessment District and the contract for services submitted is hereby approved. SECTION 9. This legislative body hereby authorizes the establishment of a special improvement fund for the Assessment District and into the improvement fund shall be placed all proceeds from the sale of Assessment District bonds and cash collections. In order to expedite the improvements to be made 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 California. PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Newport Beach held on the 22nd day of July, 2008 by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: City Clerk 2 Mayor RESOLUTION NO. 2008- RESOLUTION DECLARING INTENTION TO ORDER THE CONSTRUCTION OF CERTAIN IMPROVEMENTS IN PROPOSED ASSESSMENT DISTRICT NO. 99 -2 (BALBOA BOULEVARD ALLEY), 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. 99 -2 (Balboa Boulevard Alley) (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, togetherwith appurtenances and appurtenant work in connection therewith, is to be done to further public safety and welfare and to improve aesthetics within the area of the Assessment District; 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 District were 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 for the Assessment District, to assess the cost thereof against the real property specially benefited thereby, and to designate the area an underground utilities district. DESCRIPTION OF IMPROVEMENTS 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. 99 -2 (Balboa Boulevard Alley). 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 property within 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. 99 -2 (Balboa Boulevard Alley)," 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 Harris & Associates (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 XI I ID 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. BONDS SECTION 4. Notice is hereby given that bonds to represent the unpaid assessments, and bear interest at the rate of not to exceed the current legal maximum rate, will be issued hereunder in the manner provided in the Improvement Bond Act of 1915 (Streets and Highways Code Section 8500, et seq.), which bonds shall be issued for a term not to exceed the legal maximum term as authorized by law, namely, thirty-nine (39) years from the second day of September next succeeding twelve (12) months from their E 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 bonds maturing each year shall be other than an amount equal to an even annual proportion of the aggregate principal of the bonds, and the amount of principal maturing in each year, plus the amount of interest payable in that year, will be generally an aggregate amount that is equal each year, except for the first year's adjustment. Pursuant to the provisions of the Improvement Act and specifically Streets and Highways Code Section 10603, the Treasurer is hereby designated as the officerto collect and receive the assessments during the cash collection period. CONSTRUCTION SECTION 5. Except as may otherwise be provided for in the issuance of the bonds described above, all of the improvements shall be constructed pursuant to the provisions of the Act. SURPLUS FUNDS SECTION 6. If any excess shall be realized from the assessment, it shall be used, in such amounts as the legislative body may determine, in accordance with the provisions of law for one or more of the following purposes: A. Transfer to the general fund; provided that the amount of any such transfer shall not exceed the lesser of One Thousand Dollars ($1,000.00) or five percent (5 %) of the total from the Improvement Fund; B. As a credit upon the assessment and any supplemental assessment; C. For the maintenance of the improvements; or D. To call bonds. IMPROVEMENTFUND SECTION 7. The legislative body hereby establishes a special improvement fund identified and designated by the name of this Assessment District, and into such fund monies may be transferred at any time to expedite the construction of the authorized improvements, and any such advancement of funds is a loan and shall be repaid out of the proceeds of the sale of bonds as authorized by law. 0 PROCEEDINGS INQUIRIES SECTION 8. For any and all information relating to these proceedings, including information relating to protest procedure, your attention is directed to the person designated below: Alfred Castanon, Associate Engineer City of Newport Beach P.O. Box 1794 Newport Beach, California 92658 (949) 644 -3314 PUBLIC PROPERTY SECTION 9. All public property shall be subject to assessment in these proceedings. RIGHTS -OF -WAY SECTION 10. The public interest, convenience and necessity requires that certain land, rights -of -way or easements be obtained in order to allow the works of improvement as proposed for this Assessment District to be accomplished. The Assessment Engineer's Report, upon adoption, shall provide certification that the land, rights -of -way or easements have been acquired or will be acquired as part of the construction of the improvements. NO CITY LIABILITY SECTION 11. This legislative body hereby declares the City will not obligate itself to advance available funds from the City treasury to cure any deficiency that may occur in the bond redemption fund for the Assessment District. ANNUAL ADMINISTRATIVE ASSESSMENT SECTION 12. It is hereby declared that this legislative body proposes to levy an annual assessment pursuant to Section 10204 of the Streets and Highways Code of the State of California, such annual assessment to pay costs incurred by the City and not otherwise reimbursed which result from the administration and collection of assessments and from the administration and registration of assessment bonds and the related bond funds. UTILITY IMPROVEMENTS SECTION 13. Pursuant to Section 10110 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, 5 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 22nd day of July, 2008 by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: City Clerk R Mayor RESOLUTION NO. 2008- RESOLUTION GIVING PRELIMINARY APPROVAL TO THE REPORT OF THE ASSESSMENT ENGINEER FOR ASSESSMENT DISTRICT NO. 99-2 (BALBOA BOULEVARD ALLEY) 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. 99-2 (Balboa Boulevard Alley) (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 September 23, 2008 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 mailed, 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 22nd day of July, 2008, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: City Clerk 3 Mayor AGREEMENT FOR LEGAL SERVICES FOR BOND COUNSEL FOR UNDERGROUND ASSESSMENT DISTRICT NO. 99 -2 (BALBOA BOULEVARD ALLEY) THIS AGREEMENT, dated for purposes of identification only this 22th day of July, 2008, is made and entered into by and between the CITY OF NEWPORT BEACH, a municipal corporation, hereinafter referred to as "CITY,' and ROBERT E. HESSELL, an individual hereinafter referred to as "ATTORNEY" WITNESSETH: WHEREAS, the CITY from time to time requires the advice and assistance of bond counsel in connection with the proceedings relating to the formation of an underground utilities assessment district designated assessment district No.99 -2 (Balboa Boulevard Alley), to the establishment of an underground utilities district, and to any related bond or other debt issuance by, or for the benefit of the assessment district.; and WHEREAS, the CITY has determined that ATTORNEY is qualified by training and experience to perform the services of bond counsel in conjunction with City financings, and ATTORNEY is willing to provide such services to CITY; and WHEREAS, the CITY and the ATTORNEY desire to enter into this Agreement upon the terms hereinafter set forth. NOW, THEREFORE, FOR AND IN CONSIDERATION OF THE MUTUAL PROMISES, COVENANTS AND CONDITIONS HEREIN CONTAINED, THE PARTIES HERETO AGREE AS FOLLOWS: 1. DUTIES OF ATTORNEY ATTORNEY shall (a) when engaged as bond counsel for underground utilities district No. 99 -2 (Balboa Boulevard Alley), perform all of the services set forth in Exhibit A "Scope of Services to be Provided by Bond Counsel' and, as may be requested and authorized from time to time by the City Attorney of CITY in connection with the authorization, issuance and consummation of certain City financings, and (b) provide general legal advice to the CITY, its departments, officers and employees concerning City financings, proposed City financings and other financial matters as requested of, or assigned to, ATTORNEY by the City Attorney of CITY. Performance of services by ATTORNEY may be requested by CITY by either telephone or in writing and such request shall be confirmed in writing by ATTORNEY. CITY shall specify in reasonable detail the scope of services requested with respect to each matter on which it engages the services of ATTORNEY. CITY shall also specify how such services or advice are to be billed to CITY pursuant to Paragraph 3 hereof. Unless otherwise expressly approved by CITY, services provided to CITY by ATTORNEY pursuant to this Agreement shall be provided solely by Robert E. Hessell. CITY shall have the right to personally interview any other individual whose services ATTORNEY proposes to utilize to provide services pursuant to this Agreement and shall have the right to reject any or all such individuals until CITY is satisfied that such persons have adequate credentials and experience to perform the required services for the CITY. This Agreement for services shall be non - exclusive and CITY shall, at any time, have the absolute right to use different bond counsel or disclosure counsel for matters or City financings other than those for which ATTORNEY have been specifically engaged. 2. TERM This Agreement shall continue in full force and effect until terminated by either of the parties hereto. CITY shall have the right at any time to terminate the services of ATTORNEY with regard to any matter or City financing for which ATTORNEY has previously been engaged by CITY. In the event this Agreement, or the services of ATTORNEY with regard to a particular matter or City financing, are terminated prior to the completion of any matter or City financing upon which ATTORNEY is engaged at the time of such termination, ATTORNEY shall be reasonably compensated for all services rendered to CITY, and allowable expenses incurred by ATTORNEY as set forth in Paragraph 3 D hereof, on such matter(s) or City financing(s) prior to the date of such termination of services by the CITY. 3. COMPENSATION A. Bond Counsel Services. For the services of ATTORNEY as bond counsel to the CITY as described in Exhibit A hereof, the CITY will pay ATTORNEY, and ATTORNEY agrees to accept, compensation as follows: 1. Formation of AD and Debt Issuance. If the AD is formed and bonds or similar indebtedness are issued by or for the benefit of the AD, Counsel shall be paid a fee for all services 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 2 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 be $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 formed and debt is not issued for any reason, Counsel shall be paid a fee of $5,000 for all services rendered with respect to the formation of the AD. The fee shall be due and payable upon invoice from Counsel, which may be transmitted to the City following a determination that debt will not be issued. 3. Costs and Expenses. In addition to the foregoing, all costs and expenses reasonably incurred in connection with the proceedings to form the AD are to be billed to, and payable by, City. Costs and expenses will be billed at cost, except the expenses stated below will be billed as follows: Photocopying 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 $300) Not to exceed $90 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. 3 4. RESPONSIBILITIES OF THE CITY The CITY shall cooperate with ATTORNEY and shall furnish ATTORNEY with certified copies of all proceedings taken by the CITY, or other documents or information deemed necessary by ATTORNEY to perform these services hereunder. All costs and expenses incurred incidental to the actual issuance and delivery of the financing instruments, including the cost and expense of preparing certified copies of proceedings required by ATTORNEY in connection with the issuance of the financing instruments, the cost of preparing the financing instruments for execution and delivery, all printing costs and publication costs, and any other expenses incurred in connection with the issuance of the financing instruments, shall be paid by the CITY. 5. INDEMNIFICATION HOLD HARMLESS To the fullest extent permitted by law, Consultant shall indemnify, defend and hold harmless City, its City Council, boards and commissions, officers, agents, volunteers, and employees (collectively, the "Indemnified Parties ") from and against any and all claims (including, without limitation, claims for bodily injury, death or damage to property), demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and expenses (including, without limitation, attorney's fees, disbursements and court costs) of every kind and nature whatsoever (individually, a Claim; collectively, "Claims "), which may arise from or in any manner relate (directly or indirectly) to any breach of the terms and conditions of this Agreement, any work performed or services provided under this Agreement or Consultant's activities (including the negligent and /or willful acts, errors and /or omissions of Consultant, its principals, officers, agents, employees, vendors, suppliers, consultants, subcontractors, anyone employed directly or indirectly by any of them or for whose acts they may be liable or any or all of them). Notwithstanding the foregoing, nothing herein shall be construed to require Consultant to indemnify the Indemnified Parties from any Claim arising from the sole negligence or willful misconduct of the Indemnified Parties. Nothing in this indemnity shall be construed as authorizing any award of attorneys fees in any action on or to enforce the terms of this Agreement. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by the Consultant. 4 6. INSURANCE Without limiting Consultant's indemnification of City, and prior to commencement of work, Consultant shall obtain, provide and maintain at its own expense during the term of this Agreement, a policy or policies of liability insurance of the type and amounts described below and in a form satisfactory to City. A. Certificates of Insurance. Consultant shall provide certificates of insurance with original endorsements to City as evidence of the insurance coverage required herein. Insurance certificates must be approved by City's Risk Manager prior to commencement of performance or issuance of any permit. Current certification of insurance shall be kept on file with City at all times during the term of this Agreement. B. Signature. A person authorized by the insurer to bind coverage on its behalf shall sign certification of all required policies. C. Acceptable Insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance in the State of California, with an assigned policyholders' Rating of A (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best's Key Rating Guide, unless otherwise approved by the City's Risk Manager. R. Coverage Requirements i. Workers' Compensation Coverage. Consultant shall maintain Workers' Compensation Insurance and Employer's Liability Insurance for his or her employees in accordance with the laws of the State of California. In addition, Consultant shall require each subcontractor to similarly maintain Workers' Compensation Insurance and Employer's Liability Insurance in accordance with the laws of the State of California for all of the subcontractor's employees. Any notice of cancellation or non - renewal of all Workers' Compensation policies must be received by City at least thirty (30) calendar days (10 calendar days written notice of non - payment of premium) prior to such change. The insurer shall agree to waive all rights of subrogation against City, its officers, agents, employees and volunteers for losses arising from work performed by Consultant for City. ii. General Liability Coverage. Consultant shall maintain commercial general liability insurance in an amount not less 5 than one million dollars ($1,000,000) per occurrence for bodily injury, personal injury, and property damage, including without limitation, contractual liability. If commercial general liability insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement, or the general aggregate limit shall be at least twice the required occurrence limit. iii. Automobile Liability Coverage. Consultant shall maintain automobile insurance covering bodily injury and property damage for all activities of the Consultant arising out of or in connection with work to be performed under this Agreement, including coverage for any owned, hired, non -owned or rented vehicles, in an amount not less than one million dollars ($1,000,000) combined single limit for each occurrence. iv. Professional Errors and Omissions Insurance. Consultant shall maintain professional errors and omissions insurance, which covers the services to be performed in connection with this Agreement in the minimum amount of one million dollars ($1,000,000). E. Endorsements. Each general liability and automobile liability insurance policy shall be endorsed with the following specific language: The City, its elected or appointed officers, officials, employees, agents and volunteers are to be covered as additional insureds with respect to liability arising out of work performed by or on behalf of the Consultant. This policy shall be considered primary insurance as respects to City, its elected or appointed officers, officials, employees, agents and volunteers as respects to all claims, losses, or liability arising directly or indirectly from the Consultant's operations or services provided to City. Any insurance maintained by City, including any self- insured retention City may have, shall be considered excess insurance only and not contributory with the insurance provided hereunder. iii. This insurance shall act for each insured and additional insured as though a separate policy had been written for each, except with respect to the limits of liability of the insuring company. iv. The insurer waives all rights of subrogation against City, its elected or appointed officers, officials, employees, agents and volunteers. V. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to City, its elected or appointed officers, officials, employees, agents or volunteers. vi. The insurance provided by this policy shall not be suspended, voided, canceled, or reduced in coverage or in limits, by either party except after thirty (30) calendar days (10 calendar days written notice of non - payment of premium) written notice has been received by City. F. Timely Notice of Claims. Consultant shall give City prompt and timely notice of claim made or suit instituted arising out of or resulting from Consultant's performance under this Agreement. G. Additional Insurance. Consultant shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the work. 7. CONFLICTS OF INTEREST It is recognized that ATTORNEY may have clients who may, from time to time, have interests adverse to CITY. ATTORNEY reserves the right to represent such clients in matters not connected with the services to be provided to CITY pursuant to this Agreement. In the event that ATTORNEY represents or proposes to represent a client who may have interests adverse to CITY, in a matter connected with the services to be provided to CITY pursuant to this Agreement. ATTORNEY shall, immediately upon discovering said possible adverse interest, provide written notice to CITY of the possible adverse interest. ATTORNEY agrees to comply with any obligations they may have pursuant to California Government Code Section 87100 et seq. 8. TERMINATION OF AGREEMENT This Agreement may be terminated by the CITY at any time, with or without cause, by giving written notice to ATTORNEY. In the event of termination, all finished and unfinished documents, exhibits, data, reports, 7 and evidence shall, at the option of CITY, becomes its property and shall be delivered to it by ATTORNEY. 9. ENTIRE AGREEMENT This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof, and supersedes all oral or written representations or written agreements which may have been entered into between the parties. No modification or revision shall be of any force or effect, unless the same is in writing and executed by the parties hereto. Upon approval of this Agreement by the City Council, all prior Agreements between the Parties shall be rescinded. 10. ASSIGNMENT Neither ATTORNEY nor CITY may assign or transfer this Agreement, or any part thereof, without the prior written consent of the other party. 11. GOVERNING LAW; SEVERABILITY This Agreement shall be governed by the laws of the State of California. If any provision of this Agreement shall be held invalid, such invalidity shall not affect the other provisions hereof, and to this extent, the provisions of this Agreement are intended to be and shall be deemed severable. The parties shall agree, if reasonably practicable, upon provisions which are equivalent from an economic point of view to replace any provision which is determined to be invalid. Any action brought relating to this agreement shall be adjudicated in a court of competent jurisdiction in the County of Orange. 12. COMPLIANCE WITH LAWS In the performance of this Agreement, ATTORNEY shall abide by and conform to any and all applicable laws of the United States, the State of California and the City Charter and Ordinances of CITY. 13. WAIVER No waiver or failure to exercise any right, option or privilege under the terms of this Agreement on any occasion shall be construed to be a waiver of any other right, option or privilege on any other occasion. 14. INDEPENDENT CONTRACTOR The performance of ATTORNEY'S services hereunder shall be in the capacity of an independent contractor and not as an officer, agent, or 9 15 16. 17 employee of CITY. In consideration for the compensation paid to ATTORNEY by CITY, ATTORNEY agrees that CITY shall not be liable or responsible for any benefits, including, but not limited to, worker's compensation, disability, retirement, life, unemployment, health or any other benefits and ATTORNEY agrees that ATTORNEY shall not sue or file a claim, petition or application therefore against CITY or any of its officers, employees, agents, representatives or sureties. INTERPRETATION The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of the Agreement or any other rule of construction which might otherwise apply. NO THIRD PARTY RIGHTS The parties intend not to create rights in, or to grant remedies to, any third party as a beneficiary of this Agreement or of any duty, covenant, obligation or undertaking established herein. NOTICE Any notice or demand required or permitted to be given by the terms of this Agreement, or by any law or statute may be given by CITY by depositing said notice or demand in the U.S. Mail, postage prepaid, addressed to ATTORNEY at ATTORNEY'S address or any new address provided by ATTORNEY in writing to CITY. Service of said notice or demand on ATTORNEY shall be complete five (5) days after deposit of said notice or demand in the mail. Any notice or demand required or permitted by the terms of this Agreement or by any law or statute may be given by either party by either (1) personal delivery, (2) FAX transmission or (3) first -class United States Mail, postage prepaid. Notices and communication concerning this Agreement shall be delivered, faxed or mailed to the following addresses: City of Newport Beach Public Works Department Attn: Michael J. Sinacori 3300 Newport Blvd. Newport Beach, CA 92658 Phone: (949) 644 -3342 FAX: (949) 644 -3308 G1 Robert Hessell 13223 -1 Black Mountain Rd. No. 310 San Diego, CA 92129 Phone: (858) 735 -7228 FAX: (858) 484 -7334 Either party may, by notice to the other party, change the address specified above. Service of any notice or demand shall be complete when received at the designated address. 18. AUTHORITY AND EFFECTIVE DATE OF AGREEMENT ATTORNEY and ATTORNEY'S signators represent that the signators hold the positions set forth below their signatures and that the signators are authorized to execute this Agreement on behalf of ATTORNEY and to bind ATTORNEY hereto. The effective date of this Agreement shall be the latest date of execution hereinafter set forth opposite the names of the signators hereto. In the event ATTORNEY fails to set forth a date of execution opposite the name(s) of ATTORNEY'S signator(s), ATTORNEY hereby authorizes CITY, by and through its representative, to insert the date of execution by ATTORNEY'S signator(s) as the date said Agreement, as executed by ATTORNEY, is received by CITY. IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the day and year first written above. APPROVED AS TO FORM: CITY OF NEWPORT BEACH, A Municipal Corporation By: By: City Attorney Mayor for the City of Newport Beach for the City of Newport Beach ATTEST: By: LaVonne Harkless, City Clerk CONSULTANT: Bv: Robert E. Hessell Attachments: Exhibit A — Scope of Services 10 EXHIBIT A Bond Counsel Services Scope of Services Legal services to be provided by Counsel shall include: (a) attending negotiation sessions and otherwise assisting City staff in the negotiation with utility companies; (b) preparing all resolutions, notices, agreements, bonds, and other papers and documents required in the proceedings; (c) examining the proceedings related to the formation of the AD (d) appearing at all hearings under the proceedings, and attending any other meeting where attendance is requested by the City; (e) reviewing and examining the map showing the boundaries of the AD; (f) reviewing the method and formula utilized by the Assessment Engineer for the apportionment of the special assessment; (g) reviewing the "Report' of the Assessment Engineer; (h) participating with the City's financing team to determine the structure of any bond or similar debt issuance; (i) assisting in the review of those sections of the official statement, if any, to be disseminated in connection with the issuance of any series of bonds related to authority and security for the bonds, tax- exemption, legal opinion, litigation, summary of bond indenture, bond purchase agreement or notice of sale and other supporting documentation relating to the offering for sale of any bonds or similar indebtedness; Q) preparing or reviewing any continuing disclosure agreement required under SEC Rule 15c2 -12; (k) consulting with any underwriter, rating agency and credit enhancement provider, and their respective legal counsel, participating in the sale of, or security for, any bonds or similar indebtedness; (1) consulting with any trustee, fiscal agent or paying agent, and their respective legal counsel, participating in the sale of, or security for, any bonds or similar indebtedness; (m) assisting in any ballot proceedings; (n) subject to the completion of the proceedings to Counsel's satisfaction, issuing an approving legal opinion attesting to the validity of the proceedings and the issuance of bonds or similar indebtedness, which legal opinion will be addressed to the City and will be delivered by Counsel on the date the bonds are exchanged for their purchase price (the "Closing "); (o) providing any necessary supplemental legal opinions as to the applicability of the registration requirements of federal securities laws and other matters related to the issuance of bonds or similar indebtedness; provided, however, such opinions do not include the rendering of a 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. 11 CITY OF NEWPORT BEACH 3300 Newport Boulevard - P.O. Box 1768 Newport Beach, CA 92658 -8915 (949) 644 -3311 NOTICE OF EXEMPTION To: ❑ 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 POSTED FEB 2;.1 2x17 TOM DXY, aEK41ECORDER Ry De v" 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 OPR, Name of Project: Assessment District No. 99 TOM DALY.CLERK•RECORDER Project Location: Balboa Boulevard Alley, Newport Beach, CA Specific: Area bounded by McFadden Place, Balboa Blvd., 14`h St., and Ocean Front W, and 19th, 20th, and 215` Streets. Project Location -City: Newport Beach Project Location - County: Oranze Project Description: The project consists of an assessment district to underground existing overhead utilities. Recorded in OfFcial Records, Orange county Tom p +Daly, pClerk-Recorder p ry n Exempt Status: (check one) III�II! I���II�H�������tBB����������Ii�N���ti�III��IINV FEE ❑ Ministerial (Sec. 21080(b)(1);15268); 200785000140 02:19pm 02/21/07 ❑ Declared Emergency (Sec. 21080(b)(3); 15269(a)); 90 140 tot ❑ Emergency Project (Sec. 21080(b)(4); 15269(b)(c); o.00 0.00 0.00 o.00 o.00 0.00 0.00 0.00 0 Categorical Exemption. State type and section number. Class 2: Replacement and reconstruction; Section 15302. ❑ Statutory Exemptions. State code number: ❑ General Rule (Sec. 15061(b)(3)) Reasons why project is exempt: The Secretary for Resources has found that conversion of overhead electric utility distribution system facilities to underground locations where the surface is restored to the condition prior to undergrounding does not have a significant effect on the environment. F1 Name of Public Agency Approving Project: City of Newport Beach FFR 2 Date of Approval: Name of Person or Agency Carrying Out Project: Newport Beach Public Works De artmen Contact Person: Patrick L. Arciniega PE Title: Associate Civil Engineer Signature: Tel.No. (949) 644 -3311 Date: 2 • 2j • -2007 ED � 2007 K-FiECORDER v awnwasasa����m�rao�a.00c Preliminary Engineer's Report for Underground Utility Assessment District No. 99 -2 (Balboa Boulevard Alley) Prepared under the provisions of the Municipal Improvement Act of 1913 For the City of Newport Beach County of Orange, California Prepared by: AI Harris & Associates. July 22, 2008 ty of Newport Beach iderground Utility Assessment District No. 99-2 (Balboa Boulevard Alley) eliminary Engineer's Report July 22, 2008 TABLE OF CONTENTS Page Introduction and Certifications ............................................................. ............................... 1 PART I Plans and Specifications ..................................................... ..............................4 PARTII Cost Estimate ...................................................................... ............................... 5 PART III Assessment Roll and Method of Assessment Spread ....... ..............................6 Table 1— Assessment Roll ................................................... ............................... 8 Debt Limit Valuation ......................................................... ............................... 13 Exhibit 1— Method and Formula of Assessment Spread ..... .............................14 PART IV Annual Administrative Assessment ................................. .............................20 PART V Diagram of Assessment District ........................................ .............................22 PART VI Description of Facilities ..................................................... .............................28 Right -of -Way Certificate ................................................... ............................... 29 Certification of Completion of Environmental Proceedings ............................ 30 APPENDIX Assessment Calculations Q:Wewport BeechlAMVeports4M99.2 rpt 15ju108.doc City of Newport Beach July 22, 2008 Underground Utility Assessment District No. 99.2 (Balboa Boulevard Alley) Preliminary Engineer's Report Page 1 AGENCY: CITY OF NEWPORT BEACH PROJECT: ASSESSMENT DISTRICT NO. 99-2 TO: CITY COUNCIL ENGINEER'S "REPORT" PURSUANT TO THE PROVISIONS OF SECTIONS 2961 AND 10204 OF THE STREETS AND HIGHWAYS CODE The purposes of this Assessment District is to provide financing to underground power, telephone and cable facilities in the area generally described as Balboa Boulevard Alley, specifically the areas between Balboa Boulevard and Ocean Front West, from west of 20'h Street to 14th Street, and 19th Street between Newport Channel and Balboa Boulevard. The proposed underground utility improvements will provide conversion to an upgraded utility system and will improve neighborhood aesthetics. The construction of these improvements will conform to existing City of Newport Beach, Southern California Edison, AT &T and Time Wainer Cable standards. By virtue of such improvements, the proposed improvements are of special and direct benefit to these properties. Pursuant to the provisions of Article XIIID of the State Constitution, Part 7.5 of the "Special Assessment Investigation, Limitation and Majority Protest Act of 1931 ", being Division 4 of the Streets and Highways Code of the State of California, and the "Municipal Improvement Act of 1913 ", being Division 12 of said Code, and the Resolution of Intention, adopted by the City Council of the CITY OF NEWPORT BEACH, State of California, in connection with the proceedings for Assessment District No. 99 -2 (hereinafter referred to as the "Assessment District "), I, Joan E. Cox, P.E., a Registered Professional Engineer and authorized representative of Harris & Associates, the duly appointed Engineer of Work, herewith submits the "Report" for the Assessment District, consisting of six (6) parts as stated below. PART I This part contains the plans and specifications which describe the general nature, location and extent for the proposed improvements to be constructed, and are filed herewith and made a part hereof. Said plans and specifications are on file in the Office of the Superintendent of Streets. PART II This part contains an estimate of the cost of the proposed improvements, including capitalized interest, if any, incidental costs and expenses in connection therewith as set forth herein and attached hereto. PART III This part consists of the following information: A. A proposed assessment of the total amount of the costs and expenses of the proposed improvements upon the several subdivisions of land within the Assessment District, in proportion Q:Wewpon BeachW.d99\reports1ad99 -2 rpt 15julMdoc City of Newport Beach July 22, 2008 Underground Utility Assessment District No. 99.2 (Balboa Boulevard Ailey) Preliminary Engineer's Report Page 2 to the special benefits to be received by such subdivisions from said improvements, which is set forth upon the assessment roll filed herewith and made a part hereof. B. The total amount, as near as may be determined, of the total principal sum of all unpaid special assessments and special assessments required or proposed to be levied under any completed or pending assessment proceedings, other than that contemplated for the Assessment District, which would require an investigation and report under the "Special Assessment Investigation, Limitation and Majority Protest Act of 1931" against the total area proposed to be assessed. C. The total true value, determined from the latest Assessor's roll, of the parcels of land and improvements which are proposed to be assessed. PART IV This part contains the proposed maximum annual administrative assessment to be levied upon each subdivision or parcel of land within the Assessment District to pay the costs incurred by the CITY OF NEWPORT BEACH, and not otherwise reimbursed, resulting from the administration and collection of assessments, from the administration and registration of any associated bonds and reserve or other related funds, or both. PART V This part contains a map showing the boundaries of the Assessment District, and a diagram showing the Assessment District, the boundaries and the dimensions of the subdivisions of land within said Assessment District, as the same existed at the time of the passage of the Resolution of Intention. The Boundary Map and Assessment Diagram are filed herewith and made a part hereof, and part of the assessment. PART VI This part shall consist of the following information: A. Description of facilities B. Right -of -Way Certificate C. Environmental Certificate This report is submitted on the day of 2008. HARRIS & ASSOCIATES JOAN E. COX, P.E. R.C.E. No. 41965 ENGINEER OF WORK CITY OF NEWPORT BEACH STATE OF CALIFORNIA Q.\Newport BewhWd99keports\ad99 -2 xpt 15ju108.doc City of Newport Beach July 22, 2008 Underground Utility Assessment District No. 99.2 (Balboa Boulevard Alley) Preliminary Engineer's Report Page 3 Preliminary approval by the CITY COUNCIL of the CITY OF NEWPORT BEACH, CALIFORNIA, on the _ day of , 2008. CITY CLERK CITY OF NEWPORT BEACH STATE OF CALIFORNIA Final approval by the CITY COUNCIL of the CITY OF NEWPORT BEACH, CALIFORNIA, on the day of , 2008. CITY CLERK CITY OF NEWPORT BEACH STATE OF CALIFORNIA Q:\Newport BeuhWd99keporls\ad99 -2 rpt 15jul0g.doc City of Newport Beach July 22, 2008 Underground Utility Assessment District No. 99-2 (Balboa Boulevard Alley) Preliminary Engineer's Report Page 4 Part I Plans and Specifications The plans and specifications to construct the utility undergrounding improvements, and any ancillary improvements thereof, for the area generally described as Assessment District No. 99 -2, Balboa Boulevard Alley, specifically the areas between Balboa Boulevard and Ocean Front West, from west of 20th Street to 14th Street, and 19th Street between Newport Channel and Balboa Boulevard, describe the general nature, location and extent of the improvements for this Assessment District are referenced herein and incorporated as if attached and a part of this Report. Said Plans and Specifications for the improvements are on file in the office of the Superintendent of Streets. Q:Wewport Beach\M99 \reports\ad99 -2 rpt 15julMdoc City of Newport Beach duly 22, 2008 Underground Utility Assessment District No. 99.2 (Balboa Boulevard Alley) Preliminary Engineer's Report Page 5 Part II Cost Estimate Estimated Costs Preliminary Confirmed CONSTRUCTION COSTS" $1,686,260 North of Balboa Zone $552,970 Electrical Construction Costs (Southern California Edison) $83,750 Telephone Construction Costs (AT &T) $59,722 Street Rehabilitation $45,000 Contingency (10%) $18,847 AT &T Design Engineering (prorated) $3,386 Edison Design Engineering (prorated) $882 Subtotal North of Balboa Zone Construction Costs: $211,587 South of Balboa Zone Electrical Construction Costs (Southern California Edison) $1,686,260 Telephone Construction Costs (AT &T) $552,970 Street Rehabilitation $200,000 Contingency(10%) $243,923 AT &T Design Engineering (prorated) $54,214 Edison Design Engineering (prorated) $14,118 Subtotal South of Balboa Zone Construction Costs: $2,751,485 Total Construction Casts: $2,963,072 INCIDENTAL EXPENSES Assessment Engineering Contract Inspection Disclosure Counsel City Administration Financial Advisor Filing Fees Bond Counsel Paying Agent Dissemination Agent Financial Printing, Registration and Servicing Incidental Contingencies Total Incidental $93,450 $88,900 $20,000 $75,000 $15,000 $5,000 $35,000 $3,000 $3,000 $10,000 $33,728 Expenses: $332,078 Total Construction and Incidental Expenses: $3,345,150 FINANCING COSTS (1st Bond Issue) Underwriter's Discount 1.00% $38,450 Bond Reserve / Credit Enhancement 6.00% $230,700 Funded Interest @ 12 months @ 6.00% $230,700 Total Financial Costs: 499,850 TOTAL AMOUNT TO ASSESSMENT: $3,845,000 ` Time Warner Cable is required to payfor undergrounding through the Franchise Agreement with the City. Q:Wewport Be h1Ad99kepmtS%ad99- 2 tpt 15juI08AM City of Newport Beach July 22, 2008 Underground Utility Assessment District No. 99 -2 (Balboa Boulevard Alley) Preliminary Engineer's Report Page 6 Part III Assessment Roll and Method of Assessment Spread WHEREAS, on the City Council of the CITY OF NEWPORT BEACH, State of California, did, pursuant to the provisions of the 1913 Act "Municipal Improvement Act of 1913 ", being Division 12 of the Streets and Highways Code, of the State of California, adopt its Resolution of Intention No. for the installation and construction of certain public improvements, together with appurtenances and appurtenant work in connection therewith, in a special assessment district known and designated as ASSESSMENT DISTRICT NO. 99 -2 (hereinafter referred to as the "Assessment District "); and WHEREAS, said Resolution of Intention, as required by law, did direct the Engineer of Work to make and file a "Report", consisting of the following as required by Section 10204 of the Act: a. Plans b. Specifications c. Cost Estimates d. Assessment Diagram showing the Assessment District and the subdivisions of land therein; e. A proposed assessment of the costs and expenses of the works of improvement levied upon the parcels within the boundaries of the Assessment District; f. The proposed maximum annual assessment to be levied upon each subdivision or parcel of land within the Assessment District to pay the costs incurred by the City and not otherwise reimbursed resulting from the administration and collection of assessments or from the administration and registration of any associated bonds and reserve or other related funds. For particulars, reference is made to the Resolution of Intention as previously adopted. NOW, THEREFORE, I, Joan E. Cox, the authorized representative of HARRIS & ASSOCIATES, pursuant to Article XI11D of the California Constitution and the "Municipal Improvement Act of 1913 ", do hereby submit the following: Pursuant to the provisions of law and the Resolution of Intention, I have assessed the costs and expenses of the works of improvement to be performed in the Assessment District upon the parcels of land in the Assessment District specially benefited thereby in direct proportion and relation to the special benefits to be received by each of said parcels. For particulars as to the identification of said parcels, reference is made to the Assessment Diagram, a copy of which is attached hereto and incorporated herein. 2. As required by law, a Diagram is hereto attached, showing the Assessment District, as well as the boundaries and dimensions of the respective parcels and subdivisions of land within said District as the same existed at the time of the passage of said Resolution of Intention, each of which subdivisions of land or parcels or lots respectively have been given a separate number upon said Diagram and in said Assessment Roll. Q \Newpon Beach1Ad991repoM\ad99 -2 ,pt 15ju108.doc City of Newport Beach July 22, 2008 Underground Utility Assessment District No. 99.2 (Balboa Boulevard Alley) Preliminary Engineer's Report Page 7 3. The subdivisions and parcels of land the numbers therein as shown on the respective Assessment Diagram as attached hereto correspond with the numbers as appearing on the Assessment Roll as contained herein. 4. NOTICE IS HEREBY GIVEN that bonds will be issued in accordance with Division 10 of the Streets and Highways Code of the State of California (the 'Improvement Bond Act of 1915'), to represent all unpaid assessments, which bonds shall be issued not to exceed the legal maximum term as authorized by law, THIRTY -NINE (39) YEARS from the 2nd day of September next succeeding twelve (12) months from their date. Said bonds shall bear interest at a rate not to exceed the current legal maximum rate of 12% per annum. 5. By virtue of the authority contained in said "Municipal Improvement Act of 1913 ", and by further direction and order of the legislative body, I hereby 'recommend the following Assessment to cover the costs and expenses of the works of improvement for the Assessment District based on the costs and expenses as set forth below: For particulars as to the individual assessments and their descriptions, reference is made to Table 1 (Assessment Roll) attached hereto. 6. The Method of Spread of Assessment is as set forth in the exhibit identified as Part III (Exhibit 1), which is attached hereto, referenced and so incorporated. Q:Wewport B=MAd994eports\ad99 -2 tpt 15ju[08.doc As Preliminarily As Approved Confirmed Estimated Cost of Construction: $2,963,072 Estimated Incidental Expenses: $382,078 Estimated Financial Costs: $499,850 Estimated Total to Assessment: $3,845,000 For particulars as to the individual assessments and their descriptions, reference is made to Table 1 (Assessment Roll) attached hereto. 6. The Method of Spread of Assessment is as set forth in the exhibit identified as Part III (Exhibit 1), which is attached hereto, referenced and so incorporated. Q:Wewport B=MAd994eports\ad99 -2 tpt 15ju[08.doc City of Newport Beach July 22, 2008 Underground Utility Assessment District No. 99.2 (Balboa Boulevard Alley) Preliminary Engineer's Report Page 8 Table 1 Assessment Roll Assessor's Total Assessments as Assessments Value Asmt Parcel True Existing Preliminarily as Confirmed to Lien No. Number Value Liens Approved and Recorded Ratio 1 047 - 161 -24 $2,262,553 $0 $28,720.68 79 2 047- 161 -23 $1,517,405 " $0 $20,619.98 75 3 047- 161 -26 _$1,539,640 $964,684 $0 $19,883.56 - -- 49 4 047 - 161 -27 $1,004,807 $0 $19,883.56 ---- .......51. 5 047 -161 -02 $127,723 $0 $14,728.56 - 9 6 - 047 -161 -03 $145,368 $0 $14,728.56 - - -- 10 7 932-70-024 $672,321 $0 $18,410.70 37 11 932 -70 -033 $980,553 $0 $15,465.00 63 12 047 -181 -01 $1,517,405 " $0 $5,155.00 294 13 047 -181 -02 $184,322 -- -$0 — $18,410.70 10. 14 15 047 -181 -03 047 -181 -04 $1,086,100 $128,560 $0 ..$0.-- $18,410.70 " $18,410.70 59 7 939-85 -053 18 939-85 -054 $231,688 $0 $2,452.30 $0 _$1,841.08 - $0 $1,641.08 _ 94 441 163 _ 19 939-85 -057 $811,513 26---939 -85- $299,436 21 047 -152 -05 $267,674 $0 $10,609.68 — -- 25 22 23 047 -152 -06 047 - 152 -12 $421,299 $136,75t­ --TO------"$7232.22 $0 $25,312.7_8 17 19 24 047 -152 -08 $325,183 $0 $11,087.00 29 25 26 047 -152 -07 047-153-21--'- $497,322 $268,989_- $0 $12,533.45 $0 $21,212.11 _ 40 13 27 047 - 153 -20 $224,697 $0 $15,187.68 15 28 047 - 153 -10 $1,287,142 $0 $16,634.11 77 29 047 -153 -09 $1,405,326 $0 $12,294.78 $0 $13,018.00 - - 114 11 30 047 -171 -01 $149,561 _ 31 ­047-171-02 $56,785 $0 $7,232.22 - -- 8 32 33 047 - 171 -03 047-171-04----- $31,081 $28,995 _.- $0 $5,785.78 $0 --"'--'$'-5",062.56 5 6 34 047- 171 -22 $28,548 $0 $4,339.33 -- 7 35 047 - 171 -16 $165,824 $0 $12294.78 13 36 047 - 171 -15 $100,941 $0 $13,741.23 7 37 047 - 171 -14 $963,635 $0 $13,741.23 70 $0 ..... The Total True Value for this property has been calculated using the average assessed land value of properties City /State-owned propertywill be pre -paid prior to bond sale, therefore, value to lien ratio is not applicable Q: Newport BeachWM99\reportAad99 -2 rpt 15julWdoc City of Newport Beach 047 - 172 -25 $464,982 47 July 22, 2008 Underground Utility Assessment District No. 99.2 (Balboa Boulevard Alley) - 48 - 49 Preliminary Engineer's Report $494,145 $1,043,551 50 -172-04 Page 9 51 _047 047 -172 -05 $476,885 52 047 -172 -06 Assessor's Total 047 -172 -07 047 - 172 -19 Assessments as Assessments Value Asmt Parcel True Existing Preliminarily as Confirmed to Lien No. Number Value Liens Approved and Recorded Ratio 41 047 - 171 -10 $1,234,200 $0 90 — 42 047 -171 -09 ..._.... $1,565,190 $0 $13,741.23 114 43 047 - 171 -20 $86,600 $0 $17,357.33 5 44 047 - 171 -19 $86,670 $0 $15,187.68 6 45 047 - 171 -17 $1,456,560 $0 $15,187.68 -- - -____ 96 46 047 - 172 -25 $464,982 47 047- 172 -24 $416,927 - 48 - 49 047 -172 -02 047-172 -03 $494,145 $1,043,551 50 -172-04 $102,219 51 _047 047 -172 -05 $476,885 52 047 -172 -06 $1,064,803 53 54 047 -172 -07 047 - 172 -19 $886,200 $1,011,097 59 04. 3 62 047 -1 69 047 -172 -09 70 047 -173 -01 71 047- 173-34 72 047 -17333 73 047 -173 -03 74 047 -173-04 73-31 73-07 73 -24 24 32 38 80 68 _ 78 - .. 122.._... $14,464.45 121 _ $14,464.45 122 $0 $14,464.45 $0 $14,464.45 $0 $14,464.45 $0 $14,464.45 $0 $13,741.23 $0 $15,187.68 $0 $27,482.45 $0 $18,080.56 $0 $18,803.78 $0 $18,080.56 $0 $18.803.78 42 8 - -_..._ 7 224 _- 21 85 5 27 30 %$l 80 047 - 173 -23 $114,893 $0 $18,080.56 6 81 047 -173 -09 $1,466,964 $0 ..,_ $18,080.56 81 82 047- 173 -10 $612,957 $0 $18,080.56 34 83 84 047- 173 -11 047- 173 -12 $422,131$0....,_ $180,402 $0 $18,080.56 $36,884.34 -- 23 5 -- 85 047 - 173 -22 $6,783,079 ' $0 $81,000.90 .. 84 86 047 - 173 -25 $1,358,711 $0 $26,036.00 The Total True Value for this property has been calculated using the land value of properties 52 average assessed Q:\Newport B=MAd994eports\ad99 -2 rpt 15ju108.doc City of Newport Beach 932-�J1 -097 $962,106 $0 July 22, 2008 Underground Utility Assessment District No. 99.2 (Balboa Boulevard Alley) 047 - 201 -02 Preliminary Engineer's Report $360,093 $0 $23,866.34 Page 10 91 047 - 173 -27 $318,588 $0 $23,866.34 Assessor's Total 047- 173 -28 Assessments as Assessments Value Asmt Parcel True Existing Preliminarily as Confirmed to Lien No. Number Value Liens Approved and Recorded Ratio 87 932 -91 -095 $804,154 $0 $7,955.45 101 32 88 9-91 -096 $1,124,692 $0 $7, 955.45 ..._.__ -141 89 932-�J1 -097 $962,106 $0 $7,955.45 12190 047 - 201 -02 047 - 173 -20 $360,093 $0 $23,866.34 15 91 047 - 173 -27 $318,588 $0 $23,866.34 13 92 047- 173 -28 $290,570 $0 $22,419.89 13 93 932-91 -101 $311,958 $0 $7232.22 43 94 932-91 -102 $312,622 $0..._ $7232.22 — 43 -- 95 932-91 -103 $313,510 $0 $7232.22 43 __..96. -047- 173 -29 $126,774 $0 $21,696.67 — 6 97 047 - 173 -17 $446.471 $0 - $22.419.89 20 100 047 - 173 -13 — $187,178 $0 U901-Al- 101 047 - 173 -14 $1.268.034 $0 $13.018.00 102 047 -201 -01 $1,621,529 $0 $10,125.11 103 047 - 201 -02 $51,235 $0 $3,854.78 _ 104 _047- 201 -26 $329,840 $0 $20,973.45 105 047 - 201 -25 $129,114 $0 $4339.33 1 -32 1 -31 11 10 _ 30 8 24 53. _. 112 047 -201 -05 $329,253 $0 $18,803.78 18 113 939-80 -014 $806,505 $0 $9,401.90 86 114 939-80 -015 $590,462 $0 $9,401.90 $0 $18,803.78 $0 $18,803.78 _ 63 5 — 5 _ 115 047 - 201 -36 $102,300 _ 116 047 - 201- 37....... _$102,301 117 047 -201 -08 $169,787 $0 $18,803.78 -- -- 9 118 047 - 201 -09 $583,612 $0 $0 $55,688.11 $10,848.34 10 39 119 047 - 201 -23 $419,991 120 - 047 - 201 -22 $970,507 _ $0 $15,187.68 -- 64 121 122 047- 201 -21 047- 201 -20 $835,780 $1,826,214 " $0 $0 $22,419.89 37 $2zals.as 81 123 939-80 -020 $846,643 $0 $10,848.34 78 124 939-80 -021 $541,950 $0 $10,848.34 _ 50 125 047- 201 -18 $352,578 $0 $22A19.89 16 -126 047 - 201 -17 $1,531,351 ' $0 $0 - $22,419.89 - -- -fib 127 047 - 201 -16 $3,942,877 $22419.89 176 128 047 - 201 -15 $2,041,315 $0 $22,419.89 — 91 _ 129_047 - 201 -14 $2,204,929 $0 $22x19.89 98 130 047 - 201 -13 $145,367 $0 $0 $22,419.89 _ _ 6 131 047 - 201 -12 $695,618 $22,419.89 31 132 _ 047 - 201 -11 $1,234,908 $0 $22,419.89 55 ` The Total True Value for this property has peen calculated using the average assessed land value of properties QANmport BeacMAd99kepmU\ad99 -2 rpt 1Su108.dm City of Newport Beach July 22, 2008 Underground Utility Assessment District No. 99-2 (Balboa Boulevard Alley) $0 Preliminary Engineer's Report Page 11 32 137 Assessor's Total Assessments as Assessments Value Asmt Parcel True Existing Preliminarily as Confirmed to Lien No. Number Value Liens Aooroved and Recorded Ratio M 136 047 - 202-30 $607,334 $0 $18,803.78 - 81 32 137 047_- 202 -29 $603,459 $0 $18,803.78 _ 162' 163 -- 32 _- 138 139 047 -202-04 047 -202 -05 $1,300,000 $125,625 $0 $0 __$18,803.78 $18,803.78 047- 211 -03 69 7 140 047 -202 -06 $1,690,650 $0 $18,803.78 $129,955 $186,372 90 141 142 047 -202 -07 047 -202 -08 $1,351,182 $225,638 $0 $0._._..__.....$18,803.78 $18,803.78- -- - 72 12 143 047 -202 -09 $3579016 $0 $189803.78 19 144 047 - 202 -10 $1.565.326 ' $0 $18.803.78 83 150 047 - 202 -27 151 047 - 202 -26 152 047 - 202 -25 1 157 0, $0 $0 $22,419.89 44 - - 11 135 54 78 160 047 - 202 -18 $1,826,214 $0 $22,419.89 _- - 81 161 047 - 202 -17 $255,757 $0 $22,419.89 29 _ 162' 163 -047 -211 -01 047 -211 -02 $542,414 $1,821,720 $0_ $0 $18,803.78 $18,803.78 29 97 164 047- 211 -03 $97,693 $0 $18,803.78 5 165 166 047 -211-04 047 -211 -05 $129,955 $186,372 $0 $0 $18,803.78 $18,803.78 -- 7 10 167 047 -211 -30 $628.701 $0 $18203.78 33 169 047 - 211 -26 $536,311 $0 $29,652.11 18 170 047 - 211 -27 — $762,811 $0 $26,036.00 - _ 29 171 047 -211 -08 $145,236 $0 $18_,803.78 8 172 047 - 211 -25 $247,123 $0 $26,036.00 9 173 047 - 211 -24 _ $165.928 $0 $22.419.89 7 177_ 939-80 -011 $1,243,171 $0 $10,848.34 115 178 047 - 211 -20 $2,122,416 $0 _ $22,419.89 95 ' The Total True Value for this property has been calculated using the average assessed land value of properties Q:\Newport B=MM994epwtsVa -2 rpt 15ju[08.doc City of Newport Beach July 22, 2008 Underground Utility Assessment District No. 99.2 (Balboa Boulevard Alley) Preliminary Engineer's Report Page 12 Assessor's Total Assessments as Assessments Value Asmt Parcel True Existing Preliminarily as Confirmed to Lien 188 047 -000 -03 $2,743,154 *` $0 $14,464.45 $0 190 -- 15 189 047-212 -25 $1,779,283 - -- 190 047 - 212-06 $351,038 $0 $23,143.11 15 191 047 - 212-07 $97,214 $0 $23,143.11 4 -192 047 -212 -08 $431,551 _ $0 $23,143.11 19 193 047 - 212 -19 -- $2,001,292 $0 _ $43,393.34 $0 $43,393.34 46 13 194 047 - 212 -18 $555,150 195 047 - 212 -17 $3,130,652 * $0 $29_,652.11 106 196 047 - 212 -16 $889,580 $0 $22,419.89 - - - -- ........40 _ 197 047 - 212 -15 $297,936 $0 $22,419.89 $0 - -- $22,419.89 -- 13 227 —1§8047-212-1T $5,094,900 199 047 - 212 -13 $616,200 $0 $22,419.89 27 200 047- 212 -12 $125,485 $0 $22,419.89 6 -- -69 201 047 - 212 -11 $1,550,926_ $0 $22,419.89 _ _ 44 202 047 - 212 -10 $991,964 —P---'—$22,419,89 203 047 -212 -09 $126,368 $0 $22,419.89 _ _ 6 204 047 - 240 -01 $4,604,399 $0 $75,019.85 61 $182,007,804 $0 $3,845,000.00 47 ' The: Total True;Value.for.this property has been calculated using the average assessed land value of properties " City /State -owned property will be pre -paid prior to bond sale, therefore, value to lien ratio is not applicable Q:\Newport Beach\Ad99Vgvrts\ad99 -2 rpt 15julWdoc City of Newport Beach July 22, 2008 Underground Utility Assessment District No. 99-2 (Balboa Boulevard Alley) Preliminary Engineer's Report Page 13 Table 2 Debt Limit Valuation A. ESTIMATED BALANCE TO ASSESSMENT $3,845,000 B. UNPAID SPECIAL ASSESSMENTS $0 TOTAL A& B $3,845,000 C. TRUE VALUE OF PARCELS $182,007,804 ** AVERAGE VALUE TO LIEN RATIO 7::4:7::l] Unpaid Special Assessments shall consist of the total principal sum of all unpaid special assessments previously levied or proposed to be levied other than in the instant proceedings. ** True Value of Parcels means the total value of the land and improvements as estimated and shown on the last equalized roll of the County or as otherwise reasonably calculated. This report does not represent a recommendation of parcel value, economic viability or financial feasibility, as that is not the responsibility of the Assessment Engineer. CERTIFICATION I, the undersigned Assessment Engineer, do hereby certify that (i) the total amount of the principal sum of the special assessments proposed to be levied, together with the principal amount of previously levied special assessments, as set forth above, do not exceed one -half (1/2) the total true value of the parcels proposed to be assessed, and (ii) the amount proposed to be assessed upon any parcel does not exceed one -half of the true value of the parcel. EXECUTED on July 22, 2008. HARRIS & ASSOCIATES JOAN E.COX, P.E. R.C.E. No. 41965 ASSESSMENT ENGINEER CITY OF NEWPORT BEACH COUNTY OF ORANGE, STATE OF CALIFORNIA Q: \Newport Be cb41d991reports\A99 -2 rpt 15ju108.doc City of Newport Beach July 22, 2808 Underground Utility Assessment District No. 99 -2 (Balboa Boulevard Alley) Preliminary Engineer's Report Page 14 Exhibit 1 Method and Formula of Assessment Spread Since the improvements are to be funded by the levying of assessments, the "Municipal Improvement Act of 1913" and Article XIIID of the State Constitution require that assessments must be based on the special benefit that the properties receive from the works of improvement. In addition, Section 4 of Article XIIID of the State Constitution requires that a parcel's assessment may not exceed the reasonable cost of the proportional special benefit conferred on that parcel. Section 4 provides that only special benefits are assessable and the local agency levying the assessment must separate the general benefits from the special benefits. It also provides that parcels within a district that are owned or used by any public agency, the State of California, or the United States shall not be exempt from assessment unless the agency can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit. Neither the Act nor the State Constitution specifies the method or formula that should be used to apportion the costs to properties in any special assessment district proceedings. The responsibility for recommending an apportionment of the costs to properties which specially benefit from the improvements rests with the Assessment Engineer, who is appointed for the purpose of making an analysis of the facts and determining the correct apportionment of the assessment obligation. In order to apportion the assessments to each parcel in direct proportion with the special benefit which it will receive from the improvements, an analysis has been completed and is used as the basis for apportioning costs to each property within the Assessment District. Based upon an analysis of the special benefit to be received by each parcel from the construction of the works of improvement, the Assessment Engineer recommends the apportionment of costs as outlined below. The final authority and action rests with the City Council after hearing all testimony and evidence presented at a public hearing, and tabulating the assessment ballots previously mailed to all record owners of property within the Assessment District. Upon the conclusion of the public hearing, the City Council must make the final determination whether or not the assessment spread has been made in direct proportion to the special benefits received by each parcel within the Assessment District. Ballot tabulation will be done at that time and, if a majority of the ballots weighted by assessment amount are not in opposition to the Assessment District, the City Council may form the Assessment District. The following sections set forth the methodology used to apportion the costs of the improvements to each parcel. SPECIAL BENEFIT In further making the analysis, it is necessary that the properties receive a special benefit distinguished from general benefits conferred on real property located in the District or to the public at large. The purpose of this Assessment District is to provide the financing to underground existing overhead electrical, telephone and cable facilities as well as rehabilitate the streets within the District. These facilities are the direct source of service to the properties within the Assessment District. Q." Newpon BewhWd99keports\ad99 -2 rpt 15julo8.doc City of Newport Beach July 22, 2008 Underground Utility Assessment District No. 99.2 (Balboa Boulevard Alley) Preliminary Engineer's Report Page 15 The proposed replacement of existing overhead utility facilities (power, telephone and cable facilities) with underground facilities and removal of the existing wood poles and the overhead wires will provide a special benefit to the parcels connected to and adjacent to the facilities as follows: • Improved Aesthetics Benefit. This benefit relates to the improved aesthetics of the streetscape due to the removal of overhead wires and utility poles. • Additional Safety Benefit. This benefit relates to the additional safety of having the overhead distribution wires placed underground and having the power poles removed, which eliminates the threat of downed utility lines and poles due to wind, rain and other unforeseeable events. • Connection Benefit. This benefit relates to the enhanced reliability of service from the utilities being underground, due to having all new wires and equipment and having that equipment underground, which reduces the threat of service interruption from downed lines. In this Assessment District, 100% of the cost allocation for the improvements is special benefit to the parcels within the Assessment District and there is no general benefit. By virtue of such special benefits, the proposed improvements will provide a higher level of service, increase the desirability of the properties and will specifically enhance the values of the properties within the Assessment District. Therefore, the proposed improvements are of direct and special benefit to these properties. All general benefits, if any, to the surrounding community and public in general from undergrounding of these local overhead utilities are intangible and are not quantifiable. Benefit Zones The Assessment District is split into two zones of benefit: North of Balboa and South of Balboa. • The North of Balboa Zone is a fairly simple system consisting mostly of wires to be undergrounded (as opposed to additional equipment, such as transformers); therefore, these construction costs are apportioned to all properties in the North of Balboa Zone in proportion to the Assessed Parcel Area calculated for each property. • The South of Balboa Zone is a more complex system consisting of wires and equipment to be undergrounded; therefore, these construction costs are apportioned to all properties in the South of Balboa Zone in proportion to the Assessed Parcel Area calculated for each property. METHODOLOGY Based upon the findings described above, the special benefit received by the properties within the boundaries of the Assessment District is the conversion from an overhead to an underground utility system resulting in additional safety, enhanced reliability, and improved aesthetics to the adjacent properties. Based on these conditions, it is our conclusion that the improvements specially benefit all assessed properties in the Assessment District. To establish the benefit to the individual parcels within the Assessment District, The highest and best use of each property is considered. For example, a vacant property is considered developed to its highest potential and connected to the system. Q:Wewpon Be MAd99treports\M99 -2 Ipt 15julf) &doc City of Newport Beach July 22, 2008 Underground Utility Assessment District No. 99 -2 (Balboa Boulevard Alley) Preliminary Engineer's Report Page 16 The more a property is developed, the more it benefits from the proposed improvements. Most of properties within this Assessment District are zoned for either residential or mixed -use commercial, and many are built out to cover virtually the entire property with buildings — basically having almost full utilization of the property. There is a direct correlation between the size of a property and the extent to which a property may develop. Because parcel size is one of the main limiting factors for what can be built on a property, or the extent the property is developed, the size of each parcel is used as the base unit for measuring benefit. The area of each property has been rounded to the nearest 100 square feet (sf), which accounts for any minor area calculation inconsistencies. The area of a condominium is calculated by taking the area of the base parcel and dividing by the number of condominiums. The special benefits from the undergrounding of overhead utilities are categorized into the three (3) distinct benefits identified above. All parcels within the District, except for the few exceptions identified below, receive 3 of the 3 benefits (which is a factor of 1). Therefore, their rounded parcel areas are multiplied by 1 to calculate the "Assessed Parcel Area" on which costs are apportioned. Exceptions There are some parcels whose benefits do not fit the above methodology, and these are explained below. North of Balboa Zone 1. Asmt No. 12, City property located at 19th Street and Newport Channel. This property consists primarily of public access ways and recreational beach areas which do not benefit from utility undergrounding. However, a portion of this property, the restroom facility, is adjacent to 190' Street. The restroom facility is approximately 700 square feet in size. Therefore, the benefit for this property is calculated based on the portion of the property receiving benefit, which is 700 sf. 2. Asmt Nos. 16, 17 and 18 (1824 Vilelle Place, Units A, B and C) These condominium parcels are adjacent to the wires and poles being undergrounded in 190 Street, but will still have wires and poles adjacent to them in Vilelle Place, to which they are connected. These parcels do not receive the same level of benefits as other parcels in the District; they receive half the Aesthetic and Safety Benefits and no Connection Benefit. Therefore, these properties receive 1/2 + 1/2 + 0 = 1 of 3 of the benefits of other properties. Their rounded parcel areas have been multiplied by 1/3 to calculate the Assessed Parcel Area to fairly apportion the costs. 3. Asmt Nos. 19 and 20 (1830 W Balboa Blvd, Units 1 and 2) These condominium parcels are not adjacent to the wires and poles being undergrounded in 19th Street except for one guy pole (which is for bracing purposes only so has no service wires connected to it), and they have wires and poles adjacent to them in Vilelle Place, to which they are connected. These parcels do not receive the same level of benefits as other parcels in the Q:1Ne%wrt Be MAdWreportsW" -2 rpt 15julOSAm City of Newport Beach July 22, 2008 Underground Utility Assessment District No. 99.2 (Balboa Boulevard Alley) Preliminary Engineer's Report Page 17 District; they receive half the Aesthetic Benefit and no Safety or Connection Benefits. Therefore, these properties receive 1/2 + 0 + 0 = 1/2 of 3 of the benefits of other properties. Their rounded parcel areas have been multiplied by 1/6 to calculate the Assessed Parcel Area to fairly apportion the costs. South of Balboa Zone 4. Asmt No. 21 (no address provided) This parcel will have a pole remaining directly adjacent to it, although the overhead wires crossing the property will be undergrounded. This parcel does not receive the same level of benefits as the other parcels in the District. It receives half of the Aesthetic and Safety Benefits but all of the Connection Benefit. Therefore, this property receives 1/2 + 1/2 + 1 = 2 of 3 of the benefits of other properties. Its rounded parcel area has been multiplied by 2/3 to calculate the Assessed Parcel Area to fairly apportion the costs. 5. Asmt Nos. 23, 24,25 and 26 (2004, 2006, 2000 and 2001 Court) These parcels will have poles remaining adjacent to them on one of their fronting streets. These parcels do not receive the same level of benefits as the other parcels in the District. They receive half of the Aesthetic and Safety Benefits but all of the Connection Benefit. Therefore, these properties receive 1/2 + 1/2 + 1 = 2 of 3 of the benefits of other properties. Their rounded parcel areas have been multiplied by 2/3 to calculate the Assessed Parcel Area to fairly apportion the costs. 6. Asmt Nos. 102 and 103 (1733 and 1725 W Balboa Blvd) These parcels are connected to the utilities that are proposed to be underground, but do not have any of these wires and poles adjacent to their properties and do not take access from the roadways being undergrounded. These parcels do not receive the same level of benefits as other parcels in the District; they receive only a Connection Benefit, but no improved Aesthetic or Safety Benefits. Therefore, these properties receive 0 + 0 + 1 = 1 of 3 of the benefits of other properties. Their rounded parcel areas have been multiplied by 1/3 to calculate the Assessed Parcel Area to fairly apportion the costs. 7. Asmt No. 188, State property located south of Ocean Front at 15`s Street. This property consists primarily of recreational beach areas that do not benefit from utility undergrounding. A portion of this property, the restroom facility, is served by the utilities being underground. This restroom facility is approximately 2,000 square feet in size; therefore, the Connection Benefit for. this property is calculated based on the portion of the property receiving benefit, which is 2,000 sf. 8. Asmt No. 189, Church property at 1441 W Balboa Blvd. This property, which is Our Lady of Mt. Carmel Catholic Church, is zoned for "Private Institution" and as such utilizes only about half of the parcel for developed church buildings, with The other half being used exclusively for parking. Therefore, this parcel is only about 50% utilized and is considered to receive only 50% of the benefit of other properties that are, or can Q:1Newport Be=hW.d99Veports\sd99 -2 rpt 15ju108.doc City of Newport Beach July 22, 2008 Underground Utility Assessment District No. 99.2 (Balboa Boulevard Alley) Preliminary Engineer's Report Page 18 be, utilized to the fullest capacity of the property. Therefore, this parcel's benefit is calculated based on half the total area of the property, or at 15,900 sf. 9. Asmt No. 204, Newport Elementary School. This property has only a single pole (no wires) adjacent to its 225 linear feet of frontage on 14th Street. The pole, located at the intersection of 14th Street and the alley, is the terminus of the undergrounding project. Because of this, this property is deemed to receive no Aesthetic or Safety Benefits from the undergrounding project. Regarding the Connection Benefit, this property will only receive telephone and cable service from the undergrounding project (2 of the 3 services available to the other properties). However, this property also receives these services from facilities on 13v' Street from poles and wires that are not being underground. This parcel does not receive the same level of benefits as the other parcels in the District. The following calculates the relative benefits it receives: (1 of 3 benefits) x (2 of 3 services) x (1 of 2 service locations) (1/3) x (2/3) x (1/2) = 1/9 Therefore, this property receives 1/9 the benefit of other properties. Its rounded parcel area has been multiplied by 1/9 to calculate the Assessed Parcel Area to fairly apportion the costs. 10. City-owned alley parcel. Assessor's Parcel Number (APN) 047- 171 -21 is a part of a public alley, providing access to the alley between 20s` Street and 19v' Street. This property, as part of the alley and with no potential for development, receives no special benefit from the proposed improvements and is considered exempt from assessment. 11. Parcel "Not A Part" of the Assessment District. The property located at 1600 West Ocean Front (APN 047- 202 -16) is not a part of this assessment district due to previous utility undergrounding activities. This property does not receive any benefits from this currently proposed undergrounding project and, therefore, has been excluded from the boundaries of the Assessment District. ASSESSMENT APPORTIONMENT Each parcel will be apportioned its fair share of the construction costs based on the Assessed Parcel Area calculated for each property. Incidental Expenses and Financial Costs have been assessed to the entire Assessment District on a prorata basis relative to the total construction cost allocations. The individual assessment calculations are provided in the Appendix. For particulars to the Assessment Roll, reference is made to Table 1 in Part III of this report. Q;\Newport Beach\Ad99 \rep0rts \ad99 -2 tpt 15ju108.doc City of Newport Beach July 22, 2008 Underground Utility Assessment District No. 99.2 (Balboa Boulevard Alley) Preliminary Engineer's Report Page 19 In conclusion, it is my opinion that the assessments for the referenced Assessment District have been spread in direct accordance with the special benefits that each parcel receives from the works of improvement. DATED: July 22, 2008 HARRIS & ASSOCIATES Q:Wcwport Beach\Ad99Veponstad99 -2 rpt 15ju]08Aoc JOAN E COX, P.E. R.C.E. No. 41965 areas a 3/31/10 # ASSESSMENT ENGINEER CITY OF NEWPORT BEACH �r -� c�1F°� COUNTY OF ORANGE, STATE OF CALIFORNIA Q:Wcwport Beach\Ad99Veponstad99 -2 rpt 15ju]08Aoc City of Newport Beach July 22, 2008 Underground Utility Assessment District No. 99.2 (Balboa Boulevard Alley) Preliminary Engineer's Report Page 20 I, , as CITY CLERK of the CITY OF NEWPORT BEACH, CALIFORNIA do hereby certify that the foregoing Assessment, together with the Diagram attached thereto, was filed in my office on the day of 2008. CITY CLERK CITY OF NEWPORT BEACH STATE OF CALIFORNIA 1, , as CITY CLERK of the CITY OF NEWPORT BEACH, CALIFORNIA do hereby certify that the foregoing Assessment, together with the Diagram attached thereto, was preliminarily approved by the City Council of the CITY OF NEWPORT BEACH, CALIFORNIA, on the day of , 2008. CITY CLERK CITY OF NEWPORT BEACH STATE OF CALIFORNIA I, , as CITY CLERK of the CITY OF NEWPORT BEACH, CALIFORNIA do hereby certify that the foregoing Assessment, together with the Diagram attached thereto, was approved and confirmed by the City Council of said City on the day of 2008. CITY CLERK CITY OF NEWPORT BEACH STATE OF CALIFORNIA I, , as SUPERINTENDENT OF STREETS of the CITY OF NEWPORT BEACH, CALIFORNIA do hereby certify that the foregoing Assessment, together with the Diagram attached thereto, was recorded in my office on the _ day of , 2008. SUPERINTENDENT OF STREETS CITY OF NEWPORT BEACH STATE OF CALIFORNIA Q:N ewport Be MM99\reports\ad99 -2 rpt 15ju108.dm City of Newport Beach July 22, 2008 Underground Utility Assessment District No. 99.2 (Balboa Boulevard Alley) Preliminary Engineer's Report Page 21 Part IV Annual Administrative Assessment A proposed maximum annual administrative assessment shall be levied on each parcel of land and subdivision of land within the Assessment District to pay for necessary costs and expenses incurred by the CITY OF NEWPORT BEACH, and not otherwise reimbursed, resulting from the administration and collection of assessments, from the administration or registration of any bonds and reserve or other related funds, or both. The maximum assessment is authorized pursuant to the provisions of Section 10204(1) of the Streets and Highways Code and shall not exceed fifty dollars ($50) per parcel per year, subject to an annual increase based on the Consumer Price Index (CPI), during the preceding year ending in January, for all Urban Consumers in the Los Angeles, Riverside, and Orange County areas. The exact amount of the administration charge will be established each year by the Superintendent of Streets. The annual administrative assessment will be collected in the same manner and in the same installments as the assessment levied to pay for the cost of the works of improvement. Q.Wewport Beach\Ad99\reports\ad99 -2 rpt 15julMdoc of Newport Beach July 22, 2008 aground Utility Assessment District No. 99.2 (Balboa Boulevard Alley) minary Engineer's Report Page 22 Part V Diagram of Assessment A reduced copy of the Assessment Diagram is attached hereto. Full -sized copies of the Boundary Map and Assessment Diagram are on file in the Office of the City Clerk, of the City of Newport Beach. As required by the Act, the Assessment Diagram shows the exterior boundaries of the Assessment District and the assessment number assigned to each parcel of land corresponding to its number as it appears in the Assessment Roll contained in Part III Table 1. The Assessor's Parcel Number is also shown for each parcel as they existed at the time of the passage of the Resolution of Intention and reference is hereby made to the Assessor's Parcel Maps of the County of Orange for the boundaries and dimensions of each parcel of land. Q:Wewport 13mcMdWrTamNad99 -2 rpt 15jWO8.dm City of Newport Beach July 22, 2008 Underground Utility Assessment District No. 99.2 (Balboa Boulevard Alley) Preliminary Engineer's Report Page 23 INKS g w w U N O W r Nz aZ F O < 2 O m � A LL N < W 1±31 YpllOB 335 3nnxalvn O N zz d g� H K Ot O W ut go< — a LLI 5"0 a0 o ........... 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SR L ® mC i w ''��`� • O Q - U wMmm Q,4 CO a M 4r -- e " £ i33HS 33S 3NIIHDi VVY Q:Wewport BeuWAd99\reports\ad99 -2 rpt 15ju108.dm City of Newport Beach July 22, 2008 Underground Utility Assessment District No. 99-2 (Balboa Boulevard Alley) Preliminary Engineer's Report Page 27 Q:Wewport BI=hWd991rzportsI rpt 15ju108.doc m 0 tx _ i I�IJ ^: - • ° s z s O rn 9133HS 33SLO:W 3NIlHO1VW 1 I o I' C J m OM X ¢Z z o z o Of �M �$ o s �� c i — � � zoo m6 O i _. LU F m a _� ........._�'. En� 4Y/~I n ,• , Q ��I�� mm En En Z m _ ro Y ®" V 133HS 33S 3NI-IHD1V[N �. se �° v Q:Wewport BI=hWd991rzportsI rpt 15ju108.doc City of Newport Beach July 22, 2008 Underground Utility Assessment District No. 99.2 (Balboa Boulevard Alley) Preliminary Engineer's Report Page 28 Q:\Nmport B=MAd +__m«. \ / W F3 2 | / §( {!] ; ;] ) z \! 0 Ej: ��§ z LU z 0 N ' }} � LL 0 0 U) 0z 0) M 26 < < �-, :S a z 0 0 < OXi: * ON kZ < WO U3 2 Lo U3 en tntn� Z U3 < LJ <(nM < < 0 M < M ..... 133HS 33S 3NnH0iVY1 Q:\Nmport B=MAd +__m«. City of Newport Beach July 22, 2008 Underground Utility Assessment District No. 99-2 (Balboa Boulevard Alley) Preliminary Engineer's Report Page 29 Part A Description of Facilities Section 10100 of the Act provides for the legislative body of any municipality to finance certain capital facilities and services within or along its streets or any public way or easement. The following is a list of proposed improvements as allowed under the Act to be installed, or improved under the provisions of the Act, including the acquisition of required right -of -way and/or property. For the general location of the improvements to be constructed referenced is hereby made to the Plans and Specifications described in Part I of this report. The following improvements are proposed to be constructed and installed in the general location referred to as Assessment District No. 99 -2. 1. Removal of existing utility poles. 2. Removal of overhead resident service drops. 3. Construction of mainline underground power, telephone and cable conduit, with appurtenant manholes and pullboxes. 4. Construction of service conduit and appurtenances. The improvements will be designed by the Southern California Edison Company, AT &T and Time Warner Cable. The City of Newport Beach will inspect the work to ensure conformance to City standards and specifications where applicable. The City will also construct additional pavement rehabilitation as needed for the project. Once completed, the underground facilities will become the property and responsibility of Southern California Edison Company, AT &T, and Time Wainer Cable. Each owner of property located within the Assessment District will be responsible for arranging for and paying for work on his or her property necessary to connect facilities constructed by the public utilities in the public streets and alleys to the points of connection on the private property. Conversion of individual service connections on private property is not included in the work done by the Assessment District. The estimated time for completion of the undergrounding of the utilities is 12 months after the sale of bonds. Property owners will be required to provide necessary underground connections within 300 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 utilities be directed to discontinue service to that property pursuant to Section 15.32 of the Municipal Code. Overhead facilities cannot be removed until all overhead service has been discontinued. Q:Wewpon Beach1Ad99\reeports\ad99 -2 rpt 15ju[08.doc _ City of Newport Beach July 22, 2008 Underground Utility Assessment District No. 99.2 (Balboa Boulevard Alley) Preliminary Engineer's Report Page 30 Right -of -Way Certificate STATE OF CALIFORNIA COUNTY OF ORANGE CITY OF NEWPORT BEACH The undersigned hereby CERTIFIES UNDER PENALTY OF PERJURY that the following is all true and correct. That at all time herein mentioned, the undersigned was, and now is, the authorized representative of the duly appointed SUPERINTENDENT OF STREETS of the CITY OF NEWPORT BEACH, CALIFORNIA. That there have now been instituted proceedings under the provisions of Article XIIID of the California Constitution, and the "Municipal Improvements Act of 1913," being Division 12 of the Streets and Highways Code of the State of California, for the construction of certain public improvements in a special assessment district known and designated as ASSESSMENT DISTRICT NO. 99-2 (hereinafter referred to as the "Assessment District "). THE UNDERSIGNED STATES AND CERTIFIES AS FOLLOWS: It is acknowledged that the proposed Works of Improvement must be located within public rights -of- way, land, or easements owned by or licensed to the CITY OF NEWPORT BEACH, County of Orange, State of California, at the time of the construction of the Works of Improvement, and the undersigned hereby further certifies that all rights -of -way necessary for the Works of Improvements will be obtained and in possession of the City, County, or State prior to construction by the CITY OF NEWPORT BEACH. EXECUTED this day of California. Q \Newport Bewh\M99Vr ports \W99 -2 tpt 15julo8.doc 2008, at CITY OF NEWPORT BEACH, SUPERINTENDENT OF STREETS CITY OF NEWPORT BEACH State of California 0 Stephen Badum, PE of Newport Beach July 22, 2008 n9round Utility Assessment District No. 99.2 (Balboa Boulevard Alley) minary Engineer's Report Page 31 Certificate of Completion of Environmental Proceedings STATE OF CALIFORNIA COUNTY OF ORANGE CITY OF NEWPORT BEACH The undersigned, under penalty of perjury, CERTIFIES as follows: 1. That I am the person who authorized to prepare and process all environmental documentation as needed as it relates to the formation of the special Assessment District being formed pursuant to the provisions of the "municipal Improvement Act of 1913" being Division 12 of the Streets and Highways Code of the State of California, said special Assessment District known and designated as ASSESSMENT DISTRICT NO. 99- 2(hereinafter referred to as the "Assessment District "). 2. The specific environmental proceedings relating to this Assessment District that have been completed are as follows: CEQA compliance review: The proposed project is Categorically Exempt (Class 2) from the provisions of CEQA (replacement or reconstructions). 3. I do hereby certify that all environmental evaluation proceedings necessary for the formation of the Assessment District have been completed to my satisfaction, and that no further environmental proceedings are necessary. EXECUTED this day of 2008, at CITY OF NEWPORT BEACH, California. M QANewpor[ Be MM99treportstad99 -2 rpt 15ju108.doc Stephen Badum, PE CITY OF NEWPORT BEACH STATE OF CALIFORNIA City of Newport Beach July 22, 2008 Underground Utility Assessment District No.99 (Balboa Boulevard Alley) Preliminary Engineer's Report Appendix Page 1 Assessment Calculations Assessors Parcel Assessed Total Property Asmt Parcel Size (at) Parcel Construction Incidental Financial Total Address No. Number Rounded Area Costs Expeltsas Costs Assessment NORTH OF BALBOA ZONE NO SITU$ 12 047- 181 -01 650 700 $3,992.32 $503.71 $658.97 $5,155.00 1829 W BAY 13 047 -181 -02 2,500 2,500 $14,258.27 $1,798.96 $2,353.47 $18,410.70 1823 W BAY 14 047 -181 -03 2,500 2,500 $14,258.27 $1,798.96 $2,353.47 $18,410.70 210 19TH 15 047- 181 -04 2,500 ?j500 $14,258.27 $1,798.96 $2,353.47 $18410.70 1824 -A VILELLE 16 939 -85 -052 1,000 333 1,899.20 $239.62 $313.48 2,452.30 1824 -8 VILELLE 17 939 -8.5 -053 1,000 - -333 - $1,899._20 $239.62 $31148 $2,452_30__ 1824 -C VILELLE _ 18 939 -85 -054 1,000 333 $1,899.20 $239.62 $313.48 $2452.80 18300 W BALBOA 939 -85 -057_ 1,500 250 $1,425.83 $1,425.83 $179.90 $179.90 $235.35 $23535 $1,641.08 $1,841.08 ..,.19 _ 1830 -2 W BALBOA 20 939 -85 -058 1,500 250 Sohtotal North of Balhoa 7nnee a7 n99 $211587 nn Q:Wewpurt Be MAd99\repons1ad99 -2 rpt 15jul08.doc City of Newport Beach July 22, 2008 Underground Utility Assessment District No.99 (Balboa Boulevard Alley) Preliminary Engineer's Report Appendix Page 2 Assessment Calculations Assessors Parcel Assessed Total Property Asmt Parcel Size (sf) Parcel Construction Incidental Financial Total City of Newport Beach July 22, 2008 Underground Utility Assessment District No.99 (Balboa Boulevard Alley) Preliminary Engineer's Report Appendix Page 3 Assessment Calculations Assessors Parcel Assessed Total Property Asmt Parcel Size (0) Parcel Construction Incidental Financial Total Q:Wewpoct Beach\Ad99 \repons\ad99 -2 tpt 15julWdoc City of Newport Beach July 22, 2008 Underground Utility Assessment District No.99 (Balboa Boulevard Alley) Preliminary Engineer's Report Appendix Page 4 Assessment Calculations Assessoes Parcel Assessed Total Property Asmt Parcel Size (st) Parcel Construction Incidental Financial Total Total Both Zones: 530,971 $2,963,072.00 $382,078.00 $499,850.00 $3,845,000.00 Q:Newpm Beach1Ad99Wporw\ad99 -2 rpt 15ju108.doc