HomeMy WebLinkAbout08 - Underground Utilities District 19AMENDED.
CITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No.
March 24, 2009
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Public Works Department
Tom Sandefur
949 - 644 -3312
tsandefur@city.newport-beach.ca.us
SUBJECT: PROPOSED UNDERGROUND UTILITIES DISTRICT NO. 19 SANTA
ANA HEIGHTS — MESA DRIVE, CYPRESS STREET AND A PORTION
OF ORCHARD DRIVE
RECOMMENDATIONS:
1. Adopt the attached Resolution approving the Amended Engineer's Report and
Revised Boundary Map; and adopt the attached Resolution approving the
expenditure of RDA funds; and approve the attached Third Amendment to the
Memorandum of Agreement with the County of Orange.
2. Or Abandon District Proceedings.
Discussion:
On March 10, 2009, the City Council opened the public hearing for UUD -19. Several
questions were raised by Council members with regard to the 3nd Amendment to the
Memorandum of Agreement (MOA) between the City and the County of Orange
Redevelopment Agency. As a result the item was continued to the March 24, 2009 City
Council Meeting. Please refer to staff report from March 10, 2009 for detail and history.
Based on input from the Council and discussion with the County's representative, the
MOA has been redrafted. The changes include:
1. Eliminates the language requiring the City to pay for any undergrounding costs in
excess of $7.5 million and places that burden on the RDA.
2. Requires the Geaaty -g±y_to establish an escrow account to hold the funds equal
to the potential Income Tax Component of Contribution (ITCC) for a period of teR
seven 7 years from the date of completion of the Project.
3. Payments by the RDA of all City invoices shall be made within 45-60 days of
submittal.
Payment by RDA requested prior to any large expenditures from the
Underground Utility District No. 19 (Santa Ana Heights — Mesa Dr., Cypress St. and Orchard St.)
March 24, 2009
Page 2
Minor revisions were also made to the Resolution to ensure its compatibility with the
MOA.
Schedule:
The following is a tentative schedule for proposed Underground Utilities District No. 19:
• Council Action to Set Public Hearing for UUD
January 13, 2009
• Property Owner Information Meeting
February 4, 2009
• Public Hearing
March 10, 2009
• Continued Public Hearing
March 24, 2009
• Public Utilities Commence Work
Summer 2009
• Private Property Conversions Begin
Fall 2010
• Private Property Conversions Complete
Summer 2011
• Overhead Utilities Removed
Fall 2011
Environmental Review:
The project was determined to be exempt from the California Environmental Quality Act
(CEQA) pursuant to Section 15302 of the CEQA Implementation Guidelines. This
Exemption covers the replacement or reconstruction of deteriorated or damaged
structures, facilities or mechanical equipment to meet current standards of public health
and safety. A Notice of Exemption was completed and filed with the County Recorder
on October 27, 2004.
Prepared by:
Tom Sandefur, P.E.
Associate Engineer
Attachments:
Submitted by:
Stephen G. Badum
Public Works Director
1. Revised Resolution to Expend RDA Funds
2. Revised Amendment to Memorandum of Agreement with County of Orange
RESOLUTION NO. 2009-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH MAKING FINDINGS UNDER HEALTH
AND SAFETY CODE SECTION 33445 RELATING TO THE
UNDERGROUNDING OF UTILITY POLES (CYPRESS -
MESA)PROJECT
RECITALS
WHEREAS, the Board of Supervisors (the. "Board ") of the County of Orange (the
"County") previously approved Ordinance No. 3595 on July 15, 1986 adopting a
Redevelopment Plan (hereinafter the "Redevelopment Plan ") for the Santa Ana Heights
Project Area (the "Project Area ");
WHEREAS, the Orange County Development Agency (the "Agency ") is vested with
responsibility pursuant to the Community Redevelopment Law (Part 1 of Division 24 of
Health and Safety Code of the State of California) (the "Law") to implement the
Redevelopment Plan in the Project Area;
WHEREAS, the Project Area is in need of certain community infrastructure
improvements within the Project Area involving the undergrounding of certain overhead
utility poles located in the Project Area (the "Project ");
WHEREAS, the Agency intends to provide funding '
(the "Agency Funds ") to assist the City of Newport Beach (the "City") with the cost of the
Project;
WHEREAS, the Agency, County and City have entered into a Memorandum of
Agreement ( "Agreement ") dated July 8, 2003, which was subsequently amended on July
13, 2004, June 19, 2007 and March 4024, 2009 (collectively, the "Agreement ");
-1-
WHEREAS, the Agreement contemplates that the Agency will provide to the City
the Agency Funds to complete the Project;
WHEREAS, construction of the Project conforms to the applicable General Plan of
the City;
WHEREAS, the Project will address the goals and objectives of the
Redevelopment Plan for the Project Area and will be of benefit to the Project Area in that
the Project will alleviate blighted conditions, improve public safety, and improve the
physical aesthetics within the Project Area;
WHEREAS, the Project is consistent with and will promote the Agencys
Implementation Plan;
WHEREAS, neither the City nor the County have capital or general funds available
which could be used to undertake the Project and it is not practical to arrange for
assessment district or similar financing for the Project;
WHEREAS, the staff report prepared for the March 10, 2009 meeting of the City
Council (the "Staff Report," incorporated herein by reference), sets forth facts supporting
the findings made in this Resolution pursuant to Section 33445 of the Health and Safety
.0
WHEREAS, pursuant to Health and Safety Code Section 33445, the Agency may,
with the consent of the Board and the City, pay part or all of the cost of the construction of
the Project if the Board and the City make certain specified findings.
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as
follows:
-2-
Section 1: That all of the above recitals are true and correct and the City has
based the findings and actions set forth in this Resolution, in part on such Recitals.
Section 2: That the City hereby finds and determines that: (a) the Project will be
of benefit to the Project Area; (b) no other reasonable method of financing the construction
of the Project is available to the community; (c) the Project will assist in the elimination of
one or more blighting conditions inside the Project Area; and (d) Agency assistance for the
Project is consistent with the Agency's current Implementation Plan. The factual and
analytical basis used by the City in making these findings and determinations is set forth in
the Staff Report, and materials regarding the Project provided to the City.
Section 3: The City hereby approves the expenditure of Agency Funds as set
forth in the Agreement, between the Agency, the City and the County and submitted to the
City in connection with consideration of this Resolution.
Section 4: This Resolution shall take effect immediately upon its adoption by the
City Council, and the City Clerk shall certify the vote adopting the resolution.
ADOPTED this day of '2009.
ATTEST:
Leilani Brown,
City Clerk
Edward Selich, Mayor
-3-
THIRD AMENDMENT TO THE
MEMORANDUM OF AGREEMENT
(SANTA ANA HEIGHTS REDEVELOPMENT PROJIE�1;1'
(UNDERGROUND UTILITY DISTRICT NO. 19)
THIS THIRD AMENDMENT TO MEMORANDUM OF AGREEMENT ( "Third
Amendment ") is made and entered into this _ day of 2009 by and
between the COUNTY OF ORANGE, a political subdivision of the State of California
( "County"), the ORANGE COUNTY DEVELOPMENT AGENCY, a public body,
corporate and politic ( "Agency "), and the CITY OF NEWPORT BEACH, a municipal
corporation and charter city ( "City"). Hereinafter, County, City and Agency shall be
referred to collectively as the "Parties" and singularly as the "Party."
RECITALS
WHEREAS, the County Board of Supervisors previously approved Ordinance
No. 3595 on July 15, 1986 adopting a Redevelopment Plan (the "Redevelopment Plan ")
for a redevelopment project area known as the Santa Ana Heights Redevelopment
Project (the "Project Area ") which Project Area included a portion of the City at the time
of adoption of the Redevelopment Plan in 1986; and
WHEREAS, the City annexed the eastern portion of the unincorporated area
known as east Santa Ana Heights effective July 1, 2003 and the western portion of the
unincorporated area known as west Santa Ana Heights effective January 1, 2008; and
WHEREAS, on July 8, 2003, the parties entered into a Memorandum of
Agreement (the "Agreement ") wherein the Agency agreed to contribute funds towards
the purchase of land and construction of a Fire Station ( "Fire Station Project") and
Recreation Facility on specified parcels of land in the Santa Ana Heights area; and
WHEREAS, on or about July 13, 2004, the parties entered into the First
Amendment to the Agreement (the "First Amendment "), wherein the parties agreed to
the substitution of parcels of land the City had chosen for the Fire Station Project; and
WHEREAS, on June 19, 2007, the parties entered into the Second Amendment
to the Agreement (the "Second Amendment "), which, among other things, contemplated
other projects besides the Fire Station Project including, but not limited to, a project to
underground utilities in the Project Area; and
WHEREAS, the Agency is vested with responsibility pursuant to the Community
Redevelopment Law (Part 1 of Division 24 of Health and Safety Code of the State of
California) (the "Law") to implement the Redevelopment Plan in the Project Area; and
WHEREAS, the Project Area is in need of certain community infrastructure
improvements within the Project Area consisting of the undergrounding of certain
overhead utility poles located in the Project Area; and
WHEREAS, the community of Santa Ana Heights, acting through the Santa Ana
Heights Project Advisory Committee first requested the County to form an Underground
Utilities District in 1995; and
WHEREAS, in 2002 the County Board of Supervisors directed the County's
Public Facilities and Resources Department ( "PFRD ") to prepare a report on the
formation of an Underground Utilities District in eastern Santa Ana Heights; and
WHEREAS, after the City annexed the easterly portion of Santa Ana Heights in
2003, the City became the appropriate authority to create the Underground Utility
District; and
WHEREAS, the Pre- Annexation Agreement dated September 30, 2002, the
Agreement, and the Second Amendment contemplated that the Agency would
contribute funding (the "Agency Funds ") to the City to complete the undergrounding of
certain utility poles located in the Project Area; and
WHEREAS, Newport Beach Municipal Code Chapter 15.32 entitled
"Underground Utilities" authorizes the City Council to call public hearings to ascertain
whether the public health, safety or welfare .requires the removal of poles, overhead
wires and associated overhead structures within designated areas of the City, and
underground installation of wires and facilities for supplying electricity, communication,
or similar services; and
WHEREAS, a noticed public hearing was held on June 14, 2005 wherein the City
Council adopted Resolution No. 2005 -34 establishing and designating Underground
Utilities District No. 19 and ordering the removal of poles, overhead wires and
associated overhead services within that area of the City located within said district; and
WHEREAS, a noticed public hearing was held on March 10, 2009 wherein the
City Council continued the item to the March 24, 2009 meeting wherein it adopted
Resolution No. 2009 - amending Underground Utilities District No. 19 by, among
other things, altering the boundaries of Underground Utilities District No. 19 and placing
the obligation, cost and expense to provide private property utility hookups on the
private property owners instead of having these costs and expenses paid for with
redevelopment funds as had been contemplated at the time the Underground Utilities .
District No. 19 was originally formed (hereinafter the project to underground utilities in
Underground Utilities District No. 19, as amended, shall be referred to as the "Project ");
and
WHEREAS, the City Clerk provided notice in accordance with Chapter 15.32 to
all affected utilities and all persons owning real property within the district created by
Resolution No. 2005 -34 and amended by Resolution No. 2009 -_ of the adoption of
said resolutions and formation of Underground Utilities District No. 19, as amended.
NOW, THEREFORE, the Parties hereto state and agree as follows:
E
1. The purpose of this Third. Amendment is to set forth the understanding
and agreement of the Parties with respect to the Project. The contents of this Third
Amendment are intended to be as comprehensive as possible yet not necessarily
exhaustive with respect to the issues that may arise relative to the development of the
Project. In the event that issues occur that are not identified in this Third Amendment,
the Parties agree to work together in good faith to resolve each matter.
2. The parties hereto understand that the City will be required to make
advance payments to Southern Califomia Edison and SBC /AT &T for design of the
Project. The County and Agency herewith appoint, direct and empower the City to act
on their behalf to undertake or cause to be undertaken the development, including
design, construction and related activities of the Project. The estimated cost of the
Project is reflected in the Preliminary Estimate of Probable Construction Costs prepared
by the engineer in accordance with Chapter 15.32 of the Newport Beach Municipal
Code and which estimate is attached to this Third Amendment as Exhibit A (hereinafter
the "Estimate "). The Parties acknowledge that the Estimate represents only an estimate
of the development and construction cost for the Project and that the actual costs may
exceed the amount of the Estimate.
3. The parties hereto agree that the Agency shall use the Agency Funds to
the extent such funds are not otherwise committed and are available in Agency Fund
15A to pay for and /or reimburse City for all costs and expenses associated in any way
with the design and construction of the Project including, but not limited to, services and
costs for design, repaving and /or restoration of affected roads, project management,
outside construction support, CEQA costs, necessary permits, temporary construction
easements, and access agreements.
4. The Agency Executive Director and the City Manager shall cooperate to
design payment procedures for the Agency's funding of the Project. Those procedures
shall provide for the City's submittal to the Agency of detailed documentation of
expenditures or expected expenditures and for the County's payment of such costs
Within 60 days of receipt from the City of an invoice or appropriate documentation. The
Parties understand and agree that the City may periodically request advance funding
from the Agency for. any large expenditures (whether arising from one invoice or
multiple invoices collectively) totaling in excess of $25,000.00 (Twenty-Five Thousand
Dollars), and City will not proceed with construction of the Project until City receives
such advance funding from Agency.
5. Within thkt�sixt L(360) business days of the Parties executing this Third
Amendment, Agency shall deposit the sum of $1,250,000.00 (One Million, Two Hundred
Fifty Thousand Dollars) with the City to be held in a separate fund ( "Escrow Accounc) to
pay any Income Tax Component of Contribution (ITCC) per IRS Code Section 18(b)
( "ITCC Funds ") that may arise from the Project. The ITCC Funds shall be held in the
Escrow Account for a period of seven (7) years from the date of completion of the
Project. The City shall provide a written report to the Agency on the balance of funds in
the Escrow Account every six (6) months. The City is authorized to pay any ITCC tax
liability that arises from the Project using the ITCC Funds in the Escrow Account without
3
further notice or authorization from Agency. It is understood and agreed between the
Parties that any funds remaining in the Escrow Account at the expiration of the seven
(7) year period shall be refunded to Agency, including any accred interest. Nothing in
this Agreement shall be construed as prohibiting the City from depositing funds received
from Agency under this Agreement in the City's general account provided the funds are
separately accounted for by the City.
6. The City understands and agrees that the source of funds that the Agency
will use to fund the Project are the proceeds of tax exempt bonds secured by the tax
increment revenue the Agency receives pursuant to California Health and Safety Code
Section 33670 (the 'Bonds "). In light of the funding sources, the City covenants and
agrees with respect to the Project to comply with all applicable requirements of the
federal Internal Revenue Code necessary to preserve the tax - exempt status of the
interest on the Bonds and specifically covenants, without limiting the generality of the
foregoing, as follows:
(a) Private Activity. The City will take no action or refrain from taking
any action or make any use of the proceeds of the Bonds or of any other monies or
property which would cause the Bonds to be "private activity bonds" within the meaning
of Section 141 of the Internal Revenue Code of 1986, as amended; and
(b) Arbitrage. The City will make no use of the proceeds of the Bonds
or of any other amounts or property, regardless of the source, or take any action or
refrain from taking any action which will cause the Bonds to be "arbitrage bonds" within
the meaning of Section 148 of the Internal Revenue Code of 1986, as amended; and
(c) Federal Guaranty. The City will make no use of the proceeds of the
Bonds or take or omit to take any action that would cause the Bonds to be "federally
guaranteed" within the meaning of Section 149(b) of the Internal Revenue Code of
1986, as amended; and
(d) Information Reporting. The City will cooperate with the Agency in
providing information that the Agency needs to comply with the informational reporting
requirement of Section 149(e) of the Internal Revenue Code of 1986, as amended; and
(e) Hedge Bonds. The City will make no use of the proceeds of the
Bonds or any other amounts or property, regardless of the source, or take any action or
refrain from taking any action that would cause the Bonds to be considered "hedge
bonds" within the meaning of Section 149(g) of the of the Internal Revenue Code of
1986, as amended, unless the City takes all necessary action to assure compliance with
the requirements of Section 149(g) of the of the Internal Revenue Code of 1986, as
amended, to maintain the tax exempt status of interest on the Bonds for federal income
tax purposes and such action has been approved by the Agency.
7. In contemplation of the provisions of Section 895.2 of the California
Government Code imposing certain tort liability jointly upon public entities solely by
reason of such entities being Parties to an agreement as defined in Section 895 of said
code, the Parties hereto, as between themselves pursuant to the authorization
contained in Sections 895.2 and 895.6 of said code, will each assume the full liability
imposed upon it or any of its officers, agents or employees by law for personal injury,
property damage or loss to third Parties caused by a negligent or wrongful act or
omission of that party occurring in the performance of the Third Amendment. To
achieve the above stated purpose, each party indemnifies and holds harmless the other
party for any damage, loss, cost or expense arising out of its own negligent or wrongful
acts or omissions.
8. This Third Amendment shall be governed by the laws of California and
together with the attached exhibits represents the entire agreement of the Parties as to
the subject matter of this Third Amendment.
9. Except as expressly modified herein, all other provisions, terms, and
covenants set forth in the Agreement, First Amendment, and Second Amendment shall
remain unchanged and shall be in full force and effect.
(Balance of Page Intentionally Left Blank)
IN WITNESS WHEREOF, the County, Agency and City have approved the
foregoing THIRD AMENDMENT TO THE MEMORANDUM OF AGREEMENT and
caused the same to be executed by their duly authorized officers as set forth below.
COUNTY
By:
County Executive Officer
APPROVED AS TO FORM
0
County Counsel
AGENCY
By:
Executive Director
CITY
By:
Edward Selich,
Mayor
City of Newport Beach
APPROVED AS TO FORM ATTEST
Office of the City Attorney
City of Newport Beach
By:
Mynette Beauchamp, Leilani Brown,
Assistant City Attorney City Clerk
City of Newport Beach City of Newport Beach
R
Preliminary Estimate of Probably Construction Costs
Subtotal SCE and AT &T Construction Costs:
Construction Contingencies (15 %)
Additional Contingencies for cost of living since 2005 estimates
Total Construction Costs in Public RM:
B. INCIDENTAL EXPENSES
1 Design Engineering (SCE)
2 Design Engineers (AT &T)
3 Assessment Engineer
4 Construction Inspection
5 City Administration - Public Works
6 City Administration - Finance
.7 Incidental Contingencies
$4,615,555
$692,333
$737,100
$0,044,988
$58,800
$24,000
$36,300
$36,370
$75,770
$1,500
$21,300
Total Incidental Expenses: 54,0
TOTAL DISTRICT COSTS: $6,299,028
$5,825,165 "
$873,773
$737,100
$7,436,028
$56,800
$24,000
$36 300
$36,370
$75.770
$1,500
$21,700
$254,440
$7,690,468
' Time Warner Cable is required to pay for uhdergrounding through their Franchise Agreement with the City.
ITCC = Income Tax Component of Contribution ( -35%). [Secton 18(b) of IRS Code]
The preliminary construction estimates whown abouve is based on the approved Engineer's Report, dated
June 14, 2005. These original estimates anticipated construction in the public R1W to start in Dec. 2007.
EXHIBIT A
F:Wsers%CAT%SharedlMynettelUUD 19nlyd Amend to MOU 3 -20-09 CLEAN FINAL vWord97.docx
Preliminary
Esamstes
NM{IOLi ITCC Tax
with ITCC Tax "
A. CONSTRUCTION COSTS`
1. Southern California Edison
Electric Transmission Facilities
Install duds, substructures, wires & cables
$2,316,000 "
$2,316,000
. Eleciric Distribution Facilities
Install duds, substructures, wires & cables
$1,140,000 "
$1,140,000
SCE ITCC Tax"
$1,209,600
Subtotal, Southem California Edison Costs:
w flvxd SCE ITCC Tax
$3,456,000 "
with SCE ITCC Tax
$4,665,600
2. AT &T
Telephone Service Facilities
install duds, substructures, joint trench with SCE
$935,125—
$935,125
Install wires & cables
$224,430 "'
$224,430
Subtotal, AT &T Costs:
$1,159,555
$1,159,555
Subtotal SCE and AT &T Construction Costs:
Construction Contingencies (15 %)
Additional Contingencies for cost of living since 2005 estimates
Total Construction Costs in Public RM:
B. INCIDENTAL EXPENSES
1 Design Engineering (SCE)
2 Design Engineers (AT &T)
3 Assessment Engineer
4 Construction Inspection
5 City Administration - Public Works
6 City Administration - Finance
.7 Incidental Contingencies
$4,615,555
$692,333
$737,100
$0,044,988
$58,800
$24,000
$36,300
$36,370
$75,770
$1,500
$21,300
Total Incidental Expenses: 54,0
TOTAL DISTRICT COSTS: $6,299,028
$5,825,165 "
$873,773
$737,100
$7,436,028
$56,800
$24,000
$36 300
$36,370
$75.770
$1,500
$21,700
$254,440
$7,690,468
' Time Warner Cable is required to pay for uhdergrounding through their Franchise Agreement with the City.
ITCC = Income Tax Component of Contribution ( -35%). [Secton 18(b) of IRS Code]
The preliminary construction estimates whown abouve is based on the approved Engineer's Report, dated
June 14, 2005. These original estimates anticipated construction in the public R1W to start in Dec. 2007.
EXHIBIT A
F:Wsers%CAT%SharedlMynettelUUD 19nlyd Amend to MOU 3 -20-09 CLEAN FINAL vWord97.docx
THIRD AMENDMENT TO THE
MEMORANDUM OF AGREEMENT
(SANTA ANA HEIGHTS REDEVELOPMENT PROJECT)
(UNDERGROUND UTILITY DISTRICT NO. 19)
THIS THIRD AMENDMENT TO MEMORANDUM OF AGREEMENT ("Third
Amendment ") is made and entered into this _ day of 2009 by and
between the COUNTY OF ORANGE, a political subdivision of the State of California
( "County"), the ORANGE COUNTY DEVELOPMENT AGENCY, a public. body,
corporate and politic ( "Agency"), and the CITY OF NEWPORT BEACH, a municipal
corporation and charter city ( "City"). Hereinafter, County, City and Agency shall be
referred to collectively as the "Parties" and singularly as the "Party."
RECITALS
WHEREAS, the County Board of Supervisors previously approved Ordinance
No. 3595 on July 15, 1986 adopting a Redevelopment Plan (the "Redevelopment Plan ")
for a redevelopment project area known as the Santa Ana Heights Redevelopment
Project (the "Project Area ") which Project Area included a portion of the City at the time
of adoption of the Redevelopment Plan in 1986; and
WHEREAS, the City annexed the eastern portion of the unincorporated area
known as east Santa Ana Heights effective July 1, 2003 and the western portion of the
unincorporated area known as west Santa Ana.Heights effective January 1, 2008; and
WHEREAS, on July 8, 2003, the parties entered into a Memorandum of
Agreement (the "Agreement ") wherein the Agency agreed to contribute funds towards
the purchase of land and construction of a Fire Station ( "Fire Station Project ") and
Recreation Facility on specified parcels of land in the Santa Ana Heights area; and
WHEREAS, on or about July 13, 2004, the parties entered into the First
Amendment to the Agreement (the "First Amendment "), wherein the parties agreed to
the substitution of parcels of land the City had chosen for the Fire Station Project; and
WHEREAS, on June 19, 2007, the parties entered into the Second Amendment
to the Agreement (the "Second Amendment "), which, among other things, contemplated
other projects besides the Fire Station Project including, but not limited to, a project to
underground utilities in the Project Area; and
WHEREAS, the Agency is vested with responsibility pursuant to the Community
Redevelopment Law (Part 1 of Division 24 of Health and Safety Code of the State of
Califomia) (the "Law") to implement the Redevelopment Plan in the Project Area; and
WHEREAS, the Project Area is in need of certain community infrastructure
.improvements within the Project Area consisting of the undergrounding of certain
overhead utility poles located in the Project Area; and
WHEREAS, the community of Santa Ana Heights, acting through the Santa Ana
Heights Project Advisory Committee first requested the County to form an Underground
Utilities District in 1995; and
WHEREAS, in 2002 the County Board of Supervisors directed the County's
Public Facilities and Resources Department ( "PFRD ") to prepare a report on the
formation of an Underground Utilities District in eastern Santa Ana Heights; and
WHEREAS, after the City annexed the easterly portion of Santa Ana Heights in
2003, the City became the appropriate authority to create the Underground Utility
District; and
WHEREAS, the Pre- Annexation Agreement dated September 30, 2002, the
Agreement, and the Second Amendment contemplated that the Agency would
contribute funding (the "Agency Funds ") to the City to complete the undergrounding of
certain utility poles located in the Project Area; and
WHEREAS, Newport Beach Municipal Code Chapter 15.32 entitled
"Underground Utilities" authorizes the City Council to call public hearings to ascertain
whether the public health, safety or welfare requires the removal of poles, overhead
wires and associated overhead structures within designated areas of the City, and
underground installation of wires and facilities for supplying electricity, communication,
or similar services; and
WHEREAS, a noticed public hearing was held on June 14, 2005 wherein the City
Council adopted Resolution No. 2005 -34 establishing and designating Underground
Utilities District No. 19 and ordering the removal of poles, overhead wires and
associated overhead services within that area of the City located within said district; and
WHEREAS, a noticed public hearing was held on March 10, 2009 wherein the
City Council continued the item to the March 24, 2009 meeting wherein it adopted
Resolution No. 2009 -_ amending Underground Utilities District No. 19 by, among
other things, altering the boundaries of Underground Utilities District No. 19 and placing
the obligation, cost and expense to provide private property utility hookups on the
private property owners instead of having these costs and expenses paid for with
redevelopment funds as had been contemplated at the time the Underground Utilities
District No. 19 was originally formed (hereinafter the project to underground utilities in
Underground Utilities District No. 19, as amended, shall be referred to as the "Project ");
and
WHEREAS, the City Clerk provided notice in accordance with Chapter 15.32 to
all affected utilities and all persons owning real property within the district created by
Resolution No. 2005 -34 and amended by Resolution No. 2009 - of the adoption of
said resolutions and formation of Underground Utilities District No. 19, as amended.
NOW, THEREFORE, the Parties hereto state and agree as follows:
2
1. The purpose of this Third Amendment is to set forth the understanding
and agreement of the Parties with respect to the Project. The contents of this Thins
Amendment are intended to be as comprehensive as possible yet not necessarily
exhaustive with respect to the issues that may arise relative to the development of the
Project. In the event that issues occur that are not identified in this Third Amendment,
the Parties agree to work together in good faith to resolve each matter.
2. The parties hereto understand that the City will be required to make
advance payments to Southern California Edison and SBC /AT &T for design of the
Project. The County and Agency herewith appoint, direct and empower the City to act
on their behalf to undertake or cause to be undertaken the development, including
design, construction and related activities of the Project. The estimated cost of the
Project is reflected in the Preliminary Estimate of Probable Construction Costs prepared
by the engineer in accordance with Chapter 15.32 of the Newport Beach Municipal
Code and which estimate is attached to this Third Amendment as Exhibit A (hereinafter
the "Estimate "). The Parties acknowledge that the Estimate represents only an estimate
of the development and construction cost for the Project and that the actual costs may
exceed the amount of the Estimate.
3. The parties hereto agree that the Agency shall use the Agency Funds to
the extent such funds are not otherwise committed and are available in Agency Fund
15A to pay for and /or reimburse City for all costs and expenses associated in any way
with the design and construction of the Project including, but not limited to, services and
costs for design, repaving and /or restoration of affected roads, project management,
outside construction support, CEQA costs, necessary permits, temporary construction
easements, and access agreements.
4. The Agency Executive Director and the City Manager shall cooperate to
design payment procedures for the Agency's funding of the Project. Those procedures
shall provide for the City's submittal to the Agency of detailed documentation of
expenditures or expected expenditures and for the County's payment of such costs
within 60 days of receipt from the City of an invoice or appropriate documentation. The
Parties understand and agree that the City may periodically request advance funding
from the Agency for any large expenditures (whether arising from one invoice or
multiple invoices collectively) totaling in excess of $25,000.00 (Twenty-Five Thousand
Dollars), and City will not proceed with construction of the Project until City receives
such advance funding from Agency.
5. Within sixty (60) business days of the Parties executing this Third
Amendment, Agency shall deposit the sum of $1,250,000.00 (One Million, Two Hundred
Fifty Thousand Dollars) with the City to be held in a separate fund ( "Escrow Account ") to
pay any Income Tax Component of Contribution (ITCC) per IRS Code Section 18(b)
( "ITCC Funds ") that may arise from the Project. The ITCC Funds shall be held in the
Escrow Account for a period of seven (7) years from the date of completion of the
Project. The City shall provide a written report to the Agency on the balance of funds in
the Escrow Account every six (6) months. The City is authorized to pay any ITCC tax
liability that arises from the Project using the ITCC Funds in the Escrow Account without
9
further notice or authorization from Agency. It is understood and agreed between the
Parties that any funds remaining in the Escrow Account at the expiration of the seven
(7) year period shall be refunded to Agency, including any accrued interest. Nothing in
this Agreement shall be construed as prohibiting the City from depositing funds received
from Agency under this Agreement in the City's general account provided the funds are
separately accounted for by the City.
6. The City understands and agrees that the source of funds that the Agency
will use to fund the Project are the proceeds of tax exempt bonds secured by the tax
increment revenue the Agency receives pursuant to California Health and Safety Code
Section 33670 (the "Bonds "). In light of the funding sources, the City covenants and
agrees with respect to the Project to comply with all applicable requirements of the
federal Intemal Revenue Code necessary to preserve the tax - exempt status of the
interest on the Bonds and specifically covenants, without limiting the generality of the
foregoing, as follows:
(a) Private Activity. The City will take no action or refrain from taking
any action or make any use of the proceeds of the Bonds or of any other monies or
property which would cause the Bonds to be "private activity bonds" within the meaning
of Section 141 of the Internal Revenue Code of 1986, as amended; and
(b) Arbitrage. The City will make no use of the proceeds of the Bonds
or of any other amounts or property, regardless of the source, or take any action or
refrain from taking any action which will cause the Bonds to be "arbitrage bonds" within
the meaning of Section 148 of the Intemal Revenue Code of 1986, as amended; and
(c) Federal Guaranty. The City will make no use of the proceeds of the
Bonds or take or omit to take any action that would cause the Bonds to be "federally
guaranteed" within the meaning of Section 149(b) of the Intemal Revenue Code of
1986, as amended; and
(d) Information Reporting. The City will cooperate with the Agency in
providing information that the Agency needs to comply with the informational reporting
requirement of Section 149(e) of the Internal Revenue Code of 1986, as amended; and
(e) Hedge Bonds. The City will make no use of the proceeds of the
Bonds or any other amounts or property, regardless of the source, or take any action or
refrain from taking any action that would cause the Bonds to be considered "hedge
bonds" within the meaning of Section 149(8) of the of the Intemal Revenue Code of
1986, as amended, unless the City takes all necessary action to assure compliance with
the requirements of Section 149(g) of the of the Intemal Revenue Code of 1986, as
amended, to maintain the tax exempt status of interest on the Bonds for federal income
tax purposes and such action has been approved by the Agency.
7. In contemplation of the provisions of Section 895.2 of the California
Goverment Code imposing certain tort liability jointly upon public entities solely by
reason of such entities being Parties to an agreement as defined in Section 895 of said
4
code, the Parties hereto, as between themselves pursuant to the authorization
contained in Sections 895.2 and 895.6 of said code, will each assume the full liability
imposed upon it or any of its officers, agents or employees by law for personal injury,
property damage or loss to third Parties caused by a negligent or wrongful act or
omission of that party occurring in the performance of the Third Amendment. To
achieve the above stated purpose, each party indemnifies and holds harmless the other
party for any damage, loss, cost or expense arising out of its own negligent or wrongful
acts or omissions.
8. This Third Amendment shall be governed by the laws of California and
together with the attached exhibits represents the entire agreement of the Parties as to
the subject matter of this Third Amendment.
9. Except as expressly modified herein, all other provisions, terms, and
covenants set forth in the Agreement, First Amendment, and Second Amendment shall
remain unchanged and shall be in full force and effect.
(Balance of Page Intentionally Left Blank)
3
IN WITNESS WHEREOF, the County, Agency and City have approved the
foregoing THIRD AMENDMENT TO THE MEMORANDUM OF AGREEMENT and
caused the same to be executed by their duly authorized officers as set forth below.
APPROVED AS TO FORM
0
County Counsel
APPROVED AS TO FORM
Office of the City Attorney
City of Newport Beach
By:
Mynette Beauchamp,
Assistant City Attorney
City of Newport Beach
COUNTY
County Executive Officer
AGENCY
By:
Executive Director
CITY
By:
Edward Selich,
Mayor
City of Newport Beach
ATTEST
By:
Leilani Brown,
City Clerk
City of Newport Beach
M
Preliminary Estimate of Probably Consttvction Costs
A. CONSTRUCTION COSTS*
1. Southern California Edison
Electric Transmission Facilities
Install ducts, substructures, wires & cables
Electric Distribution Facilities
install ducts, substructures, wires & cables
SCE ITCC Tax "
Preliminary
withou t ITCC Tax
$2,316,000 ""`
$1,140,000 ""`
Estimates
with ITCC Tax
$2,31%000
$1,140,000
$1,209,600
Subtotal, Southern Califomia Edison Costs:
without SCE ITCC Tax
$3,456,000 `"`
with SCE ITCC Tax
$4,665,600
2. AT &T
Telephone Service Facilities
Install ducts, substructures, joint trench with SCE
$935,125 "
$935.125
install wires & cables
$224 430 ""
$224,430
Subtotal, AT &T Costs:
$1,159,555
1,159555
Subtotal SCE and AT &T Construction Costs:
$4,615,555 ""
$5,625,155 "
Construction Contingencies (15 %)
$692,333
$873,773
Additional Contingencies for cost of living since 2005 estimates
$737,100
$737,100
Total Construction Costs In Public RIW:
$6,044,868
$7,436,028
B. INCIDENTAL EXPENSES
1 Design Engineering (SCE)
$581800
$581800
2 Design Engineering (AT &T)
$24,000
$24,000
3 Assessment Engineer
$36,300
$36,300
4 Construction inspection
$36,370
$36,370
5 City Administration - PublicWofks
$75,770
$75,770
6 City Administration - Finance
$1,500
$1,500
.7 Incidental Contingencies
$21,300
$21,700
Total Incidental Expanses:
$254,040
$254,440
TOTAL DISTRICT COSTS:
$6,299,028
57,690,468
Time Warner Cable is required to pay for undergrounding through their Franchise Agreement with the Ctiy
ITCC = Income Tax Component of Contribution ( -35 %). [Secton 18(b) of IRS Code]
The preliminary construction estimates whown abouve is based on the approved Engineer's Report, dated
June 14, 2005. These original estimates anticipated construction in the public RM to start in Dec. 2007.
EXHIBIT A
F.1UWs%CAMharedUAynetIeVJUD 1917Wrd Amend to MOU 3-20-09 CLEAN FINAL vWord97.docx
Cn.Ir *Ir�IL Rr!`r!n
P /i ,
CITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Amended Agenda Item No. 13
March 10, 2009
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Public Works Department
Tom Sandefur
949 -644 -3312
tsandefur@city-newport-beach.ca.us
SUBJECT: PROPOSED UNDERGROUND UTILITIES DISTRICT NO. 19 SANTA
ANA HEIGHTS — MESA DRIVE, CYPRESS STREET AND A PORTION
OF ORCHARD DRIVE
RECOMMENDATIONS:
Open the public hearing, receive testimony, and close public hearing.
2. Thereafter, take one of the following actions:
A. Adopt the attached Resolution approving the Amended Engineers Report
and Revised Boundary Map; and adopt the attached Resolution approving
the expenditure of RDA funds; and approve the attached Third Amendment
to the Memorandum of Agreement with the County of Orange.
or
B. Abandon the District proceedings.
Background:
The community of Santa Ana Heights (SAH), acting through the Santa Ana Heights
Project Advisory Committee (SAHPAC) first requested the County of Orange form an
Underground Utilities District (UUD) in 1995. The primary reason cited for the formation
of an UUD was the fact that power poles stand in the middle of the horse bridle paths
along Cypress Street and Mesa Drive. There are also poles in the sidewalk areas of
both streets forcing riders and pedestrians to walk into the street to move around the
poles. These streets are the community's primary equestrian trails and access routes
to Upper Newport Bay Nature Preserve.
On July 31, 2002 the Orange County Board of Supervisors directed the County's Public
Facilities and Resources Department to prepare a report on the formation of an UUD in
eastern SAH using the area's redevelopment (RDA) funds.
In July 2003, the City of Newport Beach officially annexed this area, and in doing so,
became the more appropriate authority to actually create the UUD for the area.
Underground Utility District No. 19 (Santa Ana Heights — Mesa Dr., Cypress St. and Orchard St.)
March 10, 2009
Page 2
Still using County redevelopment funds, the City moved forward with the project and
hired GFB- Friedrich in July 2004 to prepare a map and Underground Utilities Report to
explain the scope of the project and the impact to area residents. City staff and the
contractor met with the SAHPAC in August 2004.
On November 23, 2004 City Council set a public hearing for January 11, 2005 to
consider the formation of UUD -19. Subsequently, the public hearing was continued
until June 14, 2005 because of a disagreement about the use of redevelopment funds
for private property utility hook -ups. The City went forward and formed UUD -19 with the
understanding that RDA funds could be used for private property utility hook -ups, and
notified affected residents accordingly. Note that UUD -19 is not an assessment district
and does not follow the same procedures required to establish an assessment district.
The City is not required to obtain a majority approval of the affected property owners to
form an underground district of this type.
In order to apprise the property owners of the proceedings, a letter was forwarded to all
affected property owners on May 27, 2005 with copies of the Engineer's Report, Staff
Report dated April 26, 2005, and Notice of Public Hearing for June 14, 2005. Signs of
the Notice of Public Hearing were also posted throughout the area on May 27, 2005.
City Council established UUD -19 on June 14, 2005.
SCE completed their initial design efforts in the fall of 2006, which are used as a base
plan for the design efforts of the cable and phone companies. Subsequently, AT &T
expressed some design concerns and potential large cost impacts to the district. In
addition, AT &T insisted that extensive phone system infrastructure required for the
large properties south of Mesa Drive should not be put in as an AT &T system but
should be the responsibility of the individual homeowners. They had concerns about
being responsible for facilities behind private gates on individual private properties and
cited that this is against established guidelines and procedures for their company.
In April 2008, the County of Orange, through Supervisor John Moorlach's Chief of Staff
Mario Mainero, informed the SAHPAC State law will not support using RDA funds for
private hookups. Therefore, no RDA money may be used to fund private property utility
hook -ups or for the undergrounding efforts on the properties south of Mesa Drive. The
RDA funds were only to be used for the undergrounding of utilities within the public
right -of -way. Therefore, each property owner will now be responsible for their hook -up
to the underground facilities and any undergrounding on private properties.
On January 13, 2009, the City Council set a public hearing for March 10, 2009, to amend
the UUD 19 Boundary Map and Engineer's Report so that the private utility hook up work
is not included in the underground work to be funded with RDA funds. Once again, UUD
19 is not an assessment district and does not follow the same procedures required of
assessment districts_ The City is not required to obtain a majority approval of the affected
property owners to form an undergrounding district of this type.
Upon adoption of the recommended resolution, the utility companies will commence work
this summer with expected completion in the Fall of 2010. The conversion of private
Underground Utitity District No. 19 (Santa Ana Heights - Mesa Dr., Cypress St. and orchard St.)
March 10, 2009
Page 3
property utility hook ups can follow over the next year with the final removal of overhead
facilities occurring in the Fall of 2011. The final removal of overhead facilities is
dependent upon the property owners converting their private utility hook ups from
overhead to underground. Property owners who fail to achieve conversion in a timely
manner will be subject to the provisions of the City's Municipal code 15.32.100 which sets
the process for the City to complete the work and place a lien against the property.
In order to apprise the property owners of the proceedings, an informal survey was mailed
to all affected property owners on January 14, 2009. The informal survey included an
estimated cost of private electrical conversion, notice of a community meeting on
February 4, 2009, and notice of the Public Hearing on March 10, 2009. An informational
meeting was held on February 11, 2009 at Fire Station #7 for members of the community.
The informal survey was due back to the City by February 240. 106 surveys were
distributed. The results of the survey are:
No. of Surveys Returned
52 out of 106
49%
rNo. of Surveys in Favor
40
772
No of Surveys Opposed
12
230/c
Funding Availabilitv:
Approximately $180,000 has been paid to the utility companies and Assessment
Engineers for design work to date. The County, through its RDA fund, will be paying
costs directly and /or reimbursing the City in the amount of $7.5 million for the design and
construction in the public right -of -way.
Schedule:
The following is a tentative schedule for proposed Underground Utilities District No. 19:
• Council Action to Set Public Hearing for UUD
January 13, 2009
• Property Owner Information Meeting
February 4, 2009
• Public Hearing
March 10, 2009
• Public Utilities Commence Work
Summer 2009
• Private Property Conversions Begin
Fall 2010
• Private Property Conversions Complete
Summer 2011
• Overhead Utilities Removed
Fall 2011
Environmental Review:
The project was determined to be exempt from the California Environmental Quality Act
(CEQA) pursuant to Section 15302 of the CEQA Implementation Guidelines. This
Exemption covers the replacement or reconstruction of deteriorated or damaged
structures, facilities or mechanical equipment to meet current standards of public health
Underground Utility District No. 19 (Santa Ana Heights - Mesa Dr., Cypress St. and Orchard St.)
March 10. 2009
Page 4
and safety. A Notice of Exemption was completed and filed with the County Recorder
on October 27, 2004.
Prepared by:
Tom Sandefur, P.E. -
Associate Engineer
Attachments:
1. Exhibit Showing District Boundaries
2. Resolution Amending District Boundary
3. Amendment to Memorandum of Agreement
4. Resolution to Expend RDA Funds
5. Engineer's Report
Submitted by:
in G. Badum
Works Director
PROPOSED AMENDED BOUNDARY OF
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UNDEAGROUM UTILITIES DISTFWT No. 19
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(SANTA ANA HEIGHTS -MESA DRIVE AND CYPRESS STREET)
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RESOLUTION NO. 2009-
RESOLUTION AMENDING THE BOUNDARIES OF UNDERGROUND
UTILITIES DISTRICT NO. 19 (SANTA ANA HEIGHTS — MESA DRIVE,
CYPRESS STREET AND PORTION OF ORCHARD DRIVE)
WHEREAS, on June 14, 2005, this legislative body established an underground
utilities district designated as Underground Utilities District No. 19 (Santa Ana Heights —
Mesa Drive, Cypress Street and a portion of Orchard Drive) (the "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 Chapter 15.32 of the
Code of Ordinances of the City of Newport Beach (the "Ordinance ");
WHEREAS, the utility companies subsequently expressed design concerns for
the properties south of Mesa Drive;
WHEREAS, it has subsequently been determined that two properties previously
identified within the District are not served by the poles and wires proposed to be
underground;
WHEREAS, this legislative body has received an amended boundary map (the
"Amended Map ") showing and describing the amended boundary proposed for the
District, which removes most of the properties south of Mesa Drive and the two
properties not being served by the proposed undergrounding;
WHEREAS, the property owners within the District were previously informed that
they would bear no costs for the private service conversions;
WHEREAS, it has been subsequently determined that the Redevelopment
Agency ( "RDA ") will not be able to provide funds for utility hookups on private property,
and the property owners will now be responsible for their hook -up to the underground
facilities and any undergrounding on private properties;
WHEREAS, notices have been sent to all owners of property within said District,
in the manner prescribed by the Ordinance;
WHEREAS, after consideration of all protests to the amendment of said District,
the City Council has determined that public health, safety and welfare require moving
forward with the project and the amendment of the District boundaries;
NOW, THEREFORE, It is hereby Determined, Resolved, and Ordered as follows:
SECTION 1. The above recitals are all true and correct.
SECTION 2. The Amended Map is hereby approved and adopted. The original
map of the amended boundaries of the District and one copy thereof are to be filed in
the Office of the City Clerk.
SECTION 3. The date by which the required removal and underground
installation work is to be accomplished and by which the affected property owners must
be ready to receive underground service is anticipated to be September 2011. The
Public Works Director is hereby directed to send written notice to each of the affected
Property owners upon commencement of construction notifying such property owners of
the date by which such property owners must be ready to receive underground
services.
PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council
of the City of Newport Beach held on the 10th day of March, 2009, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
City Clerk
2
Mayor
THIRD AMENDMENT TO THE
MEMORANDUM OF AGREEMENT
(SANTA ANA HEIGHTS REDEVELOPMENT PROJECT)
(UNDERGROUND UTILITY DISTRICT NO. 19)
THIS THIRD AMENDMENT TO MEMORANDUM OF AGREEMENT ( "Third
Amendment") is made and entered into this _ day of , 2009 by and
between the COUNTY OF ORANGE, a political subdivision of the State of California
( "County "), the ORANGE COUNTY DEVELOPMENT AGENCY, a public body,
corporate and politic ( "Agency "), and the CITY OF NEWPORT BEACH, a municipal
corporation and charter city ( "City "). Hereinafter, County, City and Agency shall be
referred to collectively as the "Parties" and singularly as the "Party."
RECITALS
WHEREAS, the County Board of Supervisors previously approved Ordinance
No. 3595 on July 15, 1986 adopting a Redevelopment Plan (the "Redevelopment Plan ")
for a redevelopment project area known as the Santa Ana Heights Redevelopment
Project (the "Project Area ") which Project Area included a portion of the City at the time
of adoption of the Redevelopment Plan in 1986; and
WHEREAS, the City annexed the eastern portion of the unincorporated area
known as east Santa Ana Heights effective July 1, 2003 and the western portion of the
unincorporated area known as west Santa Ana Heights effective January 1, 2008; and
WHEREAS, on July 8, 2003, the parties entered into a Memorandum of
Agreement (the "Agreement ") wherein the Agency agreed to contribute funds towards
the purchase of land and construction of a Fire Station ( "Fire Station Project ") and
Recreation Facility on specified parcels of land in the Santa Ana Heights area; and
WHEREAS, on or about July 13, 2004, the parties entered into the First
Amendment to the Agreement (the "First Amendment "), wherein the parties agreed to
the substitution of parcels of land the City had chosen for the Fire Station Project; and
WHEREAS, on June 19, 2007, the parties entered into the Second Amendment
to the Agreement (the "Second Amendment"), which, among other things, contemplated
other projects besides the Fire Station Project including, but not limited to, a project to
underground utilities In the Project Area; and
WHEREAS, the Agency is vested with responsibility pursuant to the Community
Redevelopment Law (Part 1 of Division 24 of Health and Safety Code of the State of
California) (the "Law ") to implement the Redevelopment Plan in the Project Area; and
WHEREAS, the Project Area is in need of certain community infrastructure
improvements within the Project Area consisting of the undergrounding of certain
overhead utility poles located in the Project Area; and
WHEREAS, the community of Santa Ana Heights, acting through the Santa Ana
Heights Project Advisory Committee first requested the County to form an Underground
Utilities District in 1995; and
WHEREAS, in 2002 the County Board of Supervisors directed the County's
Public Facilities and Resources Department ( "PFRV) to prepare a report on the
formation of an Underground Utilities District in eastern Santa Ana Heights; and
WHEREAS, after the City annexed the easterly portion of Santa Ana Heights in
2003, the City became the appropriate authority to create the Underground Utility
District; and
WHEREAS, the Pre - Annexation Agreement dated September 30, 2002, the
Agreement, and the Second Amendment contemplated that the Agency would
contribute funding in an amount up to $7,500,000 (the "Agency Funds') to the City to
complete the undergrounding of certain utility poles located in the Project Area; and
WHEREAS, Newport Beach Municipal Code Chapter 15.32 entitled
"Underground Utilities" authorizes the City Council to call public hearings to ascertain
whether the public health, safety or welfare requires the removal of poles, overhead
wires and associated overhead structures within designated areas of the City, and
underground installation of wires and facilities for supplying electricity, communication,
or similar services; and
WHEREAS, a noticed public hearing was held on June 14, 2005 wherein the City
Council adopted Resolution No. 2005 -34 establishing and designating Underground
Utilities District No. 19 and ordering the removal of poles, overhead wires and
associated overhead services within that area of the City located within said district; and
WHEREAS, a noticed public hearing was held on March 10, 2009 wherein the
City Council adopted Resolution No. 2009 - amending Underground Utilities District
No. 19 by, among other things, altering the boundaries of Underground Utilities District
No. 19 and placing the obligation, cost and expense to provide private property utility
hookups on the private property owners instead of having these costs and expenses
paid for with redevelopment funds as had been contemplated at the time the
Underground Utilities District No. 19 was originally formed (hereinafter the project to
underground utilities in Underground Utilities District No. 19, as amended, shall be
referred to as the "Project "); and
WHEREAS, the City Clerk provided notice in accordance with Chapter 15.32 to
all affected utilities and all persons owning real property within the district created by
Resolution No. 2005 -34 and amended by Resolution No. 2009 -_ of the adoption of
said resolutions and formation of Underground Utilities District No. 19, as amended.
NOW, THEREFORE, the Parties hereto state and agree as follows:
1. The purpose of this Third Amendment is to set forth the understanding
and agreement of the Parties with respect to the Project. The contents of this Third
2
Amendment are intended to be as comprehensive as possible yet not necessarily
exhaustive with respect to the issues that may arise relative to the development of the
Project. In the event that issues occur that are not identified in this Third Amendment,
the Parties agree to work together in good faith to resolve each matter.
2. The parties hereto understand that the City will be required to make
advance payments to Southern California Edison and SBC /AT &T for design of the
Project. The County and Agency herewith appoint, direct and empower the City to act
on their behalf to undertake or cause to be undertaken the development, including
design, construction and related activities of the Project. The estimated cost of the
Project is reflected in the Preliminary Estimate of Probable Construction Costs prepared
by the engineer in accordance with Chapter 15.32 of the Newport Beach Municipal
Code and which estimate is attached to this Third Amendment as Exhibit A (hereinafter
the "Estimate "). The Parties acknowledge that the Estimate represents only an estimate
of the development and construction cost for the Project and that the actual costs may
exceed the amount of the Estimate.
3. The parties hereto agree that the Agency shall use the Agency Funds in
an amount up to $7.5 million to pay for and /or reimburse City for all costs and expenses
associated in any way with the design and construction of the Project including, but not
limited to, services and costs for design, project management, outside construction
support, CEQA costs, necessary permits, temporary construction easements, and
access agreements. The parties hereto expressly agree that the City shall be
responsible for any costs and expenses associated with the Project that exceed the
$7.5 million in Agency Funds allocated to this Project.
4. The Agency Executive Director and the City Manager shall cooperate to
design payment procedures for the Agency's funding of the Project. Those procedures
shall provide for the Citys submittal to the Agency of detailed documentation of
expenditures or expected expenditures and for the County's prompt payment of costs
after receipt of the necessary documentation.
S. The City understands and agrees that the source of funds that the Agency
will use to fund the Project will include the proceeds of tax exempt bonds secured by the
tax increment revenue the Agency receives pursuant to California Health and Safety
Code Section 33670 (the "Bonds "). In light of the funding sources, the City covenants
and agrees with respect to the Project to comply with all applicable requirements of the
federal Internal Revenue Code necessary to preserve the tax - exempt status of the
interest on the Bonds and specifically covenants, without limiting the generality of the
foregoing, as follows:
(a) Private Activity. The City will take no action or refrain from taking
any action or make any use of the proceeds of the Bonds or of any other monies or
property which would cause the Bonds to be "private activity bonds" within the meaning
of Section 141 of the Internal Revenue Code of 1986, as amended; and
3
(b) Arbitrage. The City will make no use of the proceeds of the Bonds
or of any other amounts or property, regardless of the source, or take any action or
refrain from taking any action which will cause the Bonds to be "arbitrage bonds' within
the meaning of Section 148 of the Internal Revenue Code of 1986, as amended; and
(c) Federal Guaranty, The City will make no use of the proceeds of the
Bonds or take or omit to take any action that would cause the Bonds to be "federally
guaranteed" within the meaning of Section 149(b) of the Internal Revenue Code of
1986, as amended; and
(d) Information Reporting. The City will cooperate with the Agency in
providing information that the Agency needs to comply with the informational reporting
requirement of Section 149(e) of the Internal Revenue Code of 1986, as amended; and
(e) Hedge Bonds. The City will make no use of the proceeds of the
Bonds or any other amounts or property, regardless of the source, or take any action or
refrain from taking any action that would cause the Bonds to be considered `hedge
bonds" within the meaning of Section 149(g) of the of the Internal Revenue Code of
1986, as amended, unless the City takes all necessary action to assure compliance with
the requirements of Section 149(g) of the of the Internal Revenue Code of 1986, as
amended, to maintain the tax exempt status of interest on the Bonds for federal income
tax purposes and such action has been approved by the Agency.
6. In contemplation of the provisions of Section 895.2 of the California
Government Code imposing certain tort liability jointly upon public entities solely by
reason of such entities being Parties to an agreement as defined in Section 895 of said
code, the Parties hereto, as between themselves pursuant to the authorization
contained in Sections 895.2 and 895.6 of said code, will each assume the full liability
imposed upon it or any of its officers, agents or employees by law for personal injury,
property damage or loss to third Parties caused by a negligent or wrongful act or
omission of that party occurring in the performance of the Third Amendment. To
achieve the above stated purpose, each party indemnifies and holds harmless the other
party for any damage, loss, cost or expense arising out of Its own negligent or wrongful
acts or omissions.
7. This Third Amendment shall be governed by the laws of Califomia and
together with the attached exhibits represents the entire agreement of the Parties as to
the subject matter of this Third Amendment.
8. Except as expressly modified herein, all other provisions, terms, and
covenants set forth in the Agreement, First Amendment, and Second Amendment shall
remain unchanged and shall be in full force and effect.
4
IN WITNESS WHEREOF, the County, Agency and City have approved the
foregoing THIRD AMENDMENT TO THE MEMORANDUM OF AGREEMENT and
caused the same to be executed by their duly authorized officers as set forth below.
APPROVED AS TO FORM
2M
County Counsel
By:
Deputy
APPROVED AS TO FORM
By:
yne u Tp,
Assistant City Ait6rney
City of Newport Beach
COUNTY
0
County Executive Officer
AGENCY
By:
Executive Director
CITY
By:
Edward Selich,
Mayor
City of Newport Beach
ATTEST
By:
Leilani Brown,
City Clerk
City of Newport Beach
Preliminary Estimate of Probably Construction Costs
A.CONSTRUCTION COSTS'
1. Southern California Edison
Electric Transmission Facilities
install duds, substructures, wires & cables
Electric Distribution Facilities
install duds, substructures, wires & cables
SCE ITCC Tax"
Preliminary
wi8wul ITCC Tax
$2,316,000 "`
$1,140,000 "'
Estimates
with ITCC Tax "
$2,316,000
$1,140,000
$1,209,600
Subtotal, Southern California Edison Costs:
without SCE ITCC Tax
$3,456.000
with SCE ITCC Tax
$4,665,600
2.
AT &T
Telephone Service Facilities
install ducts, substructures, joint trench with SCE
$935,125—
$935,125
install wires & cables
$224,430 "`
$224,430 "`
Subtotal, AT &T Costs:
$1,159,555
$1,159,555
Subtotal SCE and AT &T Construction Costs:
$4,615,555 "'
$5,825,155
Construction Contingencies (16%)
$692,333
$873,773
Additional Contingencies for cost of living since 2005 estimates
$737,100
$737,100
Total Construction Costs in Public RM
$6,044,988
$7,436,028
S. INCIDENTAL. EXPENSES
1
Design Engineering (SCE)
$58,800
$58,800
2
Design Engineering (AT &T)
$24,000
$24,000
3
Assessment Engineer
$36,300
$36,300
4
Construction Inspection
$36,370
$36,370
5
City Administration - Public Works
$75,770
$75,770
6
City Administration - Finance
$1,500
Wm'
7
Incidental Contingencies
$21,300
$21,700
Total Incidental Expenses:
$254,040
$254,440
TOTAL DISTRICT COSTS:
$6,299,028
$T,690,"S
' Time Wafer Cable is required to pay for undergroundng through their Franchise Agreement with the City
" ITCC = Income Tax Component of Contribution ( -35%). (Secton 18(b) of IRS Code)
The preliminary construction estimates whown abouve is based on the approved Engineer's Report dated
June 14, 2005. These original estimates anticipated construction In the public RIW to start In Dec. 2007.
EXHIBIT A
C:1Documents and Settings\I(ParkeriLocal SettingslTemporary Internet Fil eslContentOvUook %MGC4Y81Amendment to
MOU.DOC
RESOLUTION NO. 2009-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH MAKING FINDINGS UNDER HEALTH
AND SAFETY CODE SECTION 33445 RELATING TO THE
UNDERGROUNDING OF UTILITY POLES (CYPRESS -
MESA)PROJECT
RECITALS
WHEREAS, the Board of Supervisors (the 'Board ") of the County of Orange (the
"County ") previously approved Ordinance No. 3595 on July 15, 1986 adopting a
Redevelopment Plan (hereinafter the "Redevelopment Plan ") for the Santa Ana Heights
Project Area (the "Project Area ");
WHEREAS, the Orange County Development Agency (the "Agency ") is vested with
responsibility pursuant to the Community Redevelopment Law (Part 1 of Division 24 of
Health and Safety Code of the State of California) (the "Law ") to implement the
Redevelopment Plan in the Project Area;
WHEREAS, the Project Area is in need of certain community infrastructure
improvements within the Project Area involving the undergrounding of certain overhead
utility poles located in the Project Area (the "Project');
WHEREAS, the Agency intends to provide funding in an amount up to $7,500,000
(the "Agency Funds ") to assist the City of Newport Beach (the "City") with the cost of the
Project;
WHEREAS, the Agency, County and City have entered into a Memorandum of
Agreement ( "Agreement') dated July 8, 2003, which was subsequently amended on July
13, 2004, June 19, 2007 and March 10, 2009 (collectively, the "Agreement ");
-1-
WHEREAS, the Agreement contemplates that the Agency will provide to the City
the Agency Funds to complete the Project;
WHEREAS, construction of the Project conforms to the applicable General Plan of
the City;
WHEREAS, the Project will address the goals and objectives of the
Redevelopment Plan for the Project Area and will be of benefit to the Project Area in that
the Project will alleviate blighted conditions, improve public safety, and improve the
physical aesthetics within the Project Area;
WHEREAS, the Project is consistent with and will promote the Agencys
Implementation Plan;
WHEREAS, neither the City nor the County have capital or general funds available
which could be used to undertake the Project and it is not practical to arrange for
assessment district or similar financing for the Project;
WHEREAS, the staff report prepared for the March 10, 2009 meeting of the City
Council (the "Staff Report," incorporated herein by reference), sets forth facts supporting
the findings made in this Resolution pursuant to Section 33445 of the Health and Safety
Code;
WHEREAS, pursuant to Health and Safety Code Section 33445, the Agency may,
with the consent of the Board and the City, pay part or all of the cost of the construction of
the Project if the Board and the City make certain specified findings.
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as
follows:
-2-
Section 1: That all of the above recitals are true and correct and the City has
based the findings and actions set forth in this Resolution, in part on such Recitals.
Section 2: That the City hereby finds and determines that: (a) the Project will be
of benefit to the Project Area; (b) no other reasonable method of financing the construction
of the Project is available to the community; (c) the Project will assist in the elimination of
one or more blighting conditions inside the Project Area; and (d) Agency assistance for the
Project is consistent with the Agency's current Implementation Plan. The factual and
analytical basis used by the City in making these findings and determinations is set forth in
the Staff Report, and materials regarding the Project provided to the City.
Section 3: The City hereby approves the expenditure of Agency Funds as set
forth in the Agreement, between the Agency, the City and the County and submitted to the
City in connection with consideration of this Resolution.
Section 4: This Resolution shall take effect immediately upon its adoption by the
City Council, and the City Clerk shall certify the vote adopting the resolution.
ADOPTED this day of
ATTEST:
Leilani Brown,
City Clerk
2009.
Edward Selich, Mayor
Amended
Engineer's Report
for
Underground Utilities District No. 19
(Santa Ana Heights - Mesa Drive and Cypress Street)
Forthe
City of Newport Beach
County of Orange, California
March 10, 2009
or Newport Beach March 10, 2009
erground UHikles District No. 19 (Santa Ana Heights - Mesa Drive and Cypress Street)
AGENCY: CITY OF NEWPORT BEACH
PROJECT: UNDERGROUND UTILITIES DISTRICT NO. 19
(Santa Ana Heights - Mesa Drive and Cypress Street)
TO: CITY COUNCIL
ENGINEER'S "REPORT" PURSUANT TO THE PROVISIONS OF
SECTION 1532 OF THE CITY OF NEWPORT BEACH MUNICIPAL CODE
Pursuant to the provisions of Section 15.32 of the Municipal Code of the City of Newport Beach, in
connection with the proceedings for Underground Utilities District No. 19 (hereinafter referred to as
the "Utilities District "), I, Joan E. Cox, P-E., a Registered Professional Engineer and authorized
representative of Hams & Associates, the duly appointed Engineer of Work, herewith submits the
"Report" for the Utilities District, consisting of six (6) parts as stated below.
PART
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 Director of Public Works.
PART II
This part contains an estimate of the cost of the proposed improvements, including incidental costs
and expenses in connection therewith as set forth herein and attached hereto.
PART III
This part contains a summary of the procedures required to produce this Report and a certification as
to the correctness of the Report, to the extent that the facts and information have been presented.
PART IV
This part contains a map showing the boundaries of the Utilities District, the boundaries and the
locations of the subdivisions of land within said Utilities District designated by street address, as the
same existed at the date of this Report.
PART V
This part contains the following information:
A. Description of the works of improvements
B. Right -of -Way Certificate
C. Environmental Certificate
PART VI
This part contains -a property owner information list, including an estimated cost for the
undergrounding of the utility service lines on private property.
Q:Wewport Beach %UUD194epor1s\UUD.19 Amended Rpt 26feb09.doc
City of Newport Beach March 10, 2009
Underground Uglitles District No. 19 (Saata Ana Heights - Mesa Drive and Cypress Street)
Amended Engirmer's Report page 2
This report is submitted on March 10, 2009.
HARRIS & ASSOCIATES
JOAN E. COX, P.E.
R.C.E. No. 41965
ENGINEER OF WORK
CITY OF NEWPORT BEACH
STATE OF CALIFORNIA
Preliminary approval by the CITY COUNCIL of the CITY OF NEWPORT BEACH, CALIFORNIA,
on the _ day of , 2009.
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 , 2009.
CITY CLERK
CITY OF NEWPORT BEACH
STATE OF CALIFORNIA
Q:Wewpprt B- ChWUD19bep0d3WUr?19 Amended Rpt 26Pobe9.dm
City of Newport Beach March 10, 2009
Underground Utilities District No. 19 (Santa Ana Heights • Mesa Drive and Cypress Street)
Amended Engineer's Report Page 3
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 Underground Utilities District No. 19
(Santa Ana Heights - Mesa Drive and Cypress Street), specifically the areas along Mesa Drive from Birch
Street to south of Bayview Avenue, Cypress Street from Mesa Drive to Bristol Street, and Orchard Drive
from north of Birch Street to south of Cypress Street, describe the general nature, location and extent of
the improvements for this Utilities 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 Director of Public
Works,
Q:Wewput BewhlUUD19Veports4UUD -19 Anwnded Apt 26feb69.dm
City of Newport Beach Much 10, 2009
Underground Utilities District No. 19 (Santa Ana Heights - Mesa Drive and Cypress Street)
Amended Engineer's Report Page 4
Part 11
Cost Estimate
Preliminary Estimate of Probably Construction Costs
A. CONSTRUCTION COSTS"
1. Southern Cat'rfomia Edison
Electric Transmission Facilities
install ducts, substructures, wires & cables
Electric Distribution Facilities
install ducts, substructures, wires & cables
SCE ITCC Tax ""
Preliminary
without ITCC Tax
$2,316,000 •`•
$1,140,000 —
Estimates
with ITCC Tax `•
$2,316,000
$1,140,000
$1 209 6DO
Subtotal, Southern California Edison Costs:
without SCE ITCC Tax
$3,456,000 `••
with SCE ITCC Tax
$4,W,600 «.
2. AT &T
Telephone Service Facilities
-
install ducts, substructures, Joint trench with SCE
$935,125 `"'
$935,125
install wires & cables
$224,430 '•"
$224 430 •"
Subtotal, AT &T Costs:
$1,159,555
$1,159,555
subtotal SCE and AT &T Construction Costs:
$4,615,555'""
$5,825,155
Construction Contingencies (15 %)
$692,333
$873,773
Additional Contingencies for cost of living since 2005 estimates
$737,100
$737,100
Total Construction Costs in Public RMI:
$6,044,988
$7,436,028
B. INCIDENTAL EXPENSES
1 Design Engineering (SCE)
$58,800
$58,600
2 Design Engineering (AT &T)
$24,000
$24,000
3 Assessment Engineer
$36,300
$36,300
4 Construction Inspection
$36,370
$36,370
5 City Administration - Public Works
$75,770
$75,770
6 City Administration - Finance
$1,500
$1,500
7 Incidental Contingencies
$21,300
$21,700
Total Incidental Expenses:
$254,040
$254,440
TOTAL DISTRICT COSTS:
$6,299,028
$7,690,468
*Time Warner Cable is required to pay for undergrounding through their Franchise Agreement with the City.
ITCC = Income Tax Component of Contribution ( -35 %). [Sectcn
18(b) of IRS Code]
The preliminary construction estimates whown abouve is based on the approved Engineers Report, dated
June 14, 2005. These original estimates anticipated construction
in the public RM to start in Dec. 2007-
Q:1NewPert B=h%UUDlWeP0rUW1JD -19 Amended Rpt 20609.dw
City of Newport Beach March 10, 2009
Underground utilities District No. 19 (Santa Ana Heights - Mesa Drive and Cypress Sired)
Amended Engineer's Report Page 5
Part Ill
Procedural Summary
WHEREAS, on June 14, 2005 the City Council of the CITY OF NEWPORT BEACH, State of
California, did, pursuant to the provisions of Section I5.32 "Underground Utilities" of the Municipal
Code of the City of Newport Beach, adopt its Resolution No. 2005 -034 establishing Underground
Utilities District No. 19 (hereinafter referred to as the "Utilities District"); and
WHEREAS the City Council wishes to amend the boundaries of the Utilities District; and
WHEREAS, an amendment to the Utilities District requires the Engineer of Work to make and file
an amended 'Report", consisting of the following:
a. Preliminary plans;
b. Preliminary specifications;
c. Preliminary estimates of probable construction costs;
d. Amended Boundary Map of the Utilities District and the subdivisions of land contained therein;
and
e. An estimated cost for the on -site undergrounding of the utility service lines; the financial
responsibility for which rests with the owner of each property requiring service line undergrounding
within the boundary of the Utilities District.
For particulars, reference is made to the resolution as previously adopted.
NOW, THEREFORE, I, Joan E. Cox, the authorized representative of HARRIS & ASSOCIATES,
pursuant to Section 15.32 of the City of Newport Beach Municipal Code, do hereby submit the
following:
1. I, pursuant to the provisions of law, have reviewed the costs and expenses of the works of
improvement to be performed in the Utilities District upon the parcels of land in the Utilities
District. For particulars to the identification of said parcels, reference is made to the
Amended Boundary Map, a copy of which is attached hereto.
2. An Amended Boundary Map is hereto attached, showing the boundaries of the Utilities
District, as well as the street addresses of the respective parcels and subdivisions of land
within said Utilities District.
3. Project Cost Estimates
The following Estimate Summary is based on costs as estimated in 2005 with contingencies
added to bring the costs to estimated present costs. These costs include facilities that will be
undergrounded within the public right -of -way and utility easements, and does not include on-
site private property service conversions:
Estimate Summary (with ITCC Tax)
Estimated Cost of Construction in Public RNV $7,436,028
Estimated Incidental Costs $254,440
Estimated Total District Costs $7,690,468
Q: Wewpert Reach\lND 19,reporte\IRJD -19 Amended Rpt 26febo9.dw
City of Newport Beach March 10, 2009
Underground Utilities District No. 19 (Santa Ana Heights - Mesa Drive and Cypress Street)
Amended EngineeYs Report Page 6
CERTIFICATION
I, the undersigned Engineer, do hereby certify that the information contained within this Report is
true and correct, to the extent that the facts and information have been presented to me.
DATED: on March 10, 2009.
HARRIS & ASSOCIATES
JOAN E.COX, P.E.
R.C.E. No. 41965
ENGINEER
Q:V4� BcachiWD19Lep0resWUD19 Ammdcd Rpr26fdM.dm
City of Newport Beach March 10, 2000
Underground Utilities District No. 19 (Santa Ana Heights - Mesa Drive and Cypress Street)
Amended Engineer's Report page 7
I, as CITY CLERK of the CITY OF NEWPORT
BEACH, CALIFORNIA do hereby certify that the foregoing Report, together with the Boundary
Map attached thereto, was filed in my offire on the _ day of 2009.
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 Report, together with the Boundary
Map attached thereto, was approved by the City Council of the CITY OF NEWPORT BEACH,
CALIFORNIA, on the _ day of , 2009.
CITY CLERK
CITY OF NEWPORT BEACH
STATE OF CALIFORNIA.
I, as DIRECTOR OF PUBLIC WORKS of the CITY OF NEWPORT BEACH,
CALIFORNIA do hereby certify that the foregoing Report, together with the Boundary Map attached
thereto, was recorded in my office on the _ day of 2009.
DIRECTOR OF PUBLIC WORKS
CITY OF NEWPORT BEACH
STATE OF CALIFORNIA
QAXewpon Bewh1WD19bepoft%UUD -19 Amended R[x 26Rb09.dm
City of Newport Beach March 10, 2009
Underground Utgfties District No, 19 (Santa Ana Heights - Mesa D&e and Cypress Street)
Amended Engineer's Report Page 0
Part N
Boundary Map
A reduced copy of the Amended Boundary Map is attached hereto. A full -sized copy of the
Boundary Map is on file in the Office of the City Clerk of the City of Newport Beach.
The Boundary Map shows the exterior boundary of the Utilities District and the address for each
parcel of land within the Utilities District. Reference is hereby made to the Assessor's Parcel Maps
of the County of Orange for the boundaries and dimensions of each parcel or lot within the Utilities
District.
Q;\Newpon B— hVXJD19\repMre \WD -19 Amended apt 2Mrebe A.
PROPOSED AMENDED BOUNDARY OF
UNDERGROUND UTLLITIES DISTRICT Na 19
(SANTA ANA HEIGHTS -MESA DRIVE AND CYPRESS STREET)
CITY OF NEWPORT BEACH, COUNTY OF ORANGE
STATE OF CALIFORNIA
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City of Newport Beach March 10, 2009
Underground Utilities District No, 19 (Santa Ana Heights - Mesa Drive and Cypress Street)
Amended Engineer's Report Page 10
Part V (A)
Description of Works of improvement
The following improvements are proposed to be constructed and installed in street rights -of -way and
utility easements along Cypress Street, Mesa Drive and Orchard Drive.
I . Removal of existing utility poles.
2. Removal of high - voltage power lines, local power lines, telephone lines, and cable TV lines
hanging between the poles to be removed.
I Removal of overhead resident service drops.
4. Construction of mainline underground power, telephone and cable conduit, with appurtenant
vaults, manholes and pullboxes.
5. 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.
Once completed, the underground facilities will become the property and responsibility of Southern
California Edison Company, AT &T, and Time Warner Cable.
Each owner of property located within the Utilities 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 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 Utilities
District.
The estimated time for completion of the undergrounding of the utilities is 18 months from the start
of construction to the removal of the overhead wiring and removal of utility poles. Property owners
will be required to provide necessary underground connections after 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.
o:Wewpnn BMhWUD19VcporU%UUD•19 Am &dRpl 26febo9.dw
City of Newport Beach March 10, 2009
Underground Utilities District No. 19 (Santa Ana Heights • Mesa Drive and Cypress Street)
Amended Engineer's Report Page 11
Part V (B)
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 DIRECTOR OF PUBLIC WORKS of the CITY OF NEWPORT BEACH,
CALIFORNIA.
That there have now been instituted proceedings under the provisions of Section 15.32 of the City of
Newport Beach Municipal Code for the construction of certain public improvements in a special
Utilities District known and designated as UNDERGROUND UTILITIES DISTRICT NO. 19
(hereinafter referred to as the "Utilities 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 the construction of the works
of improvement.
EXECUTED this day of
California.
Q \Newpon B=b \UUDiTnN,ts\WD -19 Amended Rpt 26feb09 -dce
2009, at CITY OF NEWPORT BEACH,
DIRECTOR OF PUBLIC WORKS
CITY OF NEWPORT BEACH
State of California
M
Stephen Badum, PE
rt Beach March 10, 2009
Utilities District Nm 19 (Santa Ma Heights - Mesa Drive and cypress Street)
liner's Reoott Pace 12
Part V (C)
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. The improvements to be constructed under the proceedings in the Utilities District are
categoricaily exempt from the provisions of the California Environmental Quality Act (CEQA)
under the provisions of Paragraph 15302, Class 2 (d) of "Guidelines for Implementation of the
California Environmental Quality Act," as adopted by the Secretary for Resources of the State of
California, June 1992.
2. The undergrounding to be done under the Utilities District is categorically exempt from the
requirement for the preparation of environmental documents under the California Environmental
Quality Act guidelines because the Secretary for Resources has found that conversion of
overhead electric utility distribution system facilities to underground locations where the surface
is restored to the condition prior to the undergrounding, done not have a significant effect on the
environment, and are declared to be categorically exempt.
3. A notice of Exemption has been filed in the office of the County Clerk of Orange County,
4. All environmental evaluation proceedings necessary for the formation of the Utilities District
have been completed to my satisfaction, and no further environmental proceedings are necessary.
EXECUTED this day of 2009, at CITY OF NEWPORT BEACH,
California.
M
Q'Vewpurt Beach \UUD19VeP0tU \i1U0.19 Amnded Rpt 26 OW.dm
Stephen Badum, PE
DIRECTOR OF PUBLIC WORKS
CITY OF NEWPORT BEACH
STATE OF CALIFORNIA
City of Newport Beach March 10, 2009
Underground Utilkies District No. 19 (Santa Ana heights - Mesa Drive and Cypress Street)
Amended Engineer's Report Page 13
Part VI
Property Owner Information with On -Site Undergrounding Costs
On the following page is a spreadsheet listing property owner information, including the Assessor's
Parcel Number and parcel address. This list is keyed to the Orange County Assessor's Roll for
property owner's name and mailing address for receipt of notices regarding the Utilities District.
Also included is the estimated cost for undergrounding the on -site service lines from the existing
overhead utility lines in the public right -of -way, that is proposed to be undergrounded.
Please note that certain lots have a zero ($0.00) on -site undergrounding costs. These lots were
previously undergrounded and therefore have no additional costs to underground the services.
The source of the on -site undergrounding cost per lot is the report titled "Santa Ana Heights
Redevelopment Utility Underground Project, Private Property Cost Estimates," prepared for the
County of Orange by Joanna Futerman, Inc., and is dated December 2000. The individual "per lot"
estimates include private property costs for the underground utility service construction, structure
retrofit (meter panels, etc.), and the reps ereplacement of hardscape, walls, shrubbery, trees, and turf
disturbed by the construction. Because of the passage of time between December 2000 and when on-
site private property construction is estimated to take place, inflation has been taken into
consideration and factors have been applied to the costs in the Futerman Report. These updated costs
are shown in this Report.
Certain lots within the current Utilities District were added since the Futerman report was prepared
or were otherwise not included in the said report. Those lots did not have an on -site cost in the
report. Those lots that did not have an estimate included have had their costs estimated based on
similar lots or are identified as "To Be Determined" (TBD).
Q:Wewport Bmh \UUD19VgmmlUUD -19 Amended Rpt 20609.dac
City of Newport Beach March 10, 2009
Underground Utilities District No. 19 (Santa Ana Heights - Mesa Drive and Cypress Street)
Amended Engineer's Report Page 14
APN
Parcel Address
Est. On-Site
Conversion
Costs
439 -381 -01
2081 MESA DR
$0
439 -381 -02
2081 MESA DR
$0
439 -061 -03
2100 MESA DR
TBD
439 -382 -03
2141 MESA DR
$5,700
439 - 382-04
2161 MESA DR
$4,375
439 -382 05
2181 MESA DR
$5,850
439 -371 -01
2191 MESA DR
$7,530
439 -371 -02
2211 MESA DR
$0
439 -371 03
2221 MESA DR
$5,250
439 -371 -04
2231 MESA DR
$4,110
439 - 372-04
2271 MESA DR
$3,825
439 - 372 -05
2291 MESA DR
$3,970
439-041 67
2321 MESA DR
$0
439-04166
2335 MESA DR
$0
439 - 041-65
2351 MESA DR
$1,860
439 - 041-64
2365 MESA DR
$2,075
439 - 041-63
2381 MESA DR
$1,875
439 - 041-62
2391 MESA DR
$1,875
439 - 041 61
2401 MESA DR
$0
439 - 042 -13
2611 MESA DR
$4,100
439 -051 06 & 07
2612 MESA DR
$11,500
439-042 -14
2613 MESA DR
$3,050
439 - 342 -13
20042 SW CYPRESS ST
$0
439 - 341 -21
20051 SW CYPRESS ST
$0
439 - 342 -12
20052 SW CYPRESS ST
$5,595
439 -342 -11
20062 SW CYPRESS ST
$2,590
439 - 341 -19
20071 SW CYPRESS ST
$0
439 - 341 -20
20071 SW CYPRESS ST
$0
439- 342 -10
20072 SW CYPRESS ST
$5,035
439 - 341 -17
20081 SW CYPRESS ST
$0
439 - 342 -09
20082 SW CYPRESS ST
$4,980
439 - 341 -12
20101 SW CYPRESS ST
$0
439 - 341 -11
20101 -1/2 SW CYPRESS ST
TBD
439 - 342 -08
20102 SW CYPRESS ST
$4,860
439 - 341 -10
20111 SW CYPRESS ST
$3,400
439- 342 -07
20112 SW CYPRESS ST
$5,880
439 - 341 -09
20121 SW CYPRESS ST
$4,900
439 - 342 -06
20122 SW CYPRESS ST
$4,070
439 - 341 -08
20131 SW CYPRESS ST
$5,100
439- 342 -05
20132 SW CYPRESS ST
$5,530
439 -341 -07
20151 SW CYPRESS ST
$4,870
439 -342 -04
20152 SW CYPRESS ST
$4,130
439 - 341 06
20161 SW CYPRESS ST
$5,555
Q:wewpon DCBCh%UUD 19V"rts%UUD -19 Amended Rpt 26feh09.dm
of Newport Beach March 10, 2009
"roundWifitfes District No. 19 [Santa Ma Heights - Mesa Drive and Cypress Street)
nded Engineer's Report Page 15
APN
Parcel Address
Est. On -Site
Conversion
Costs
439 - 342 -03
20162 SW CYPRESS ST
$3,950
439 - 341 -05
20171 SW CYPRESS ST
$4,770
439 -342 -02
20172 SW CYPRESS ST
$4,870
439 - 341-04
20181 SW CYPRESS ST
$0
439 - 342 -18
20192 SW CYPRESS ST
$0
439- 342 -22
20196 SW CYPRESS ST
$0
439 -341 -03
20201 SW CYPRESS ST
$0
439- 342 -21
20202 SW CYPRESS ST
$0
439 - 342 -17
20212 SW CYPRESS ST
$0
439 - 341 -02
20221 SW CYPRESS ST
$4,970
439 - 372 -19
20261) SW CYPRESS ST
$3,925
439- 371 -23
20261 SW CYPRESS ST
$5,175
439 - 372 -18
20270 SW CYPRESS ST
TBD
439 - 371 -18
20271 SW CYPRESS ST
$4,830
439371 -17
20291 SW CYPRESS ST
$0
439- 372 -17
20292 SW CYPRESS ST
$3,825
439371 -16
20301 SW CYPRESS ST
$0
439 - 372 -16
20304 SW CYPRESS ST
$6,120
439 - 371 -15
20311 SW CYPRESS ST
$5,325
439 - 372 -15
20312 SW CYPRESS ST
$4,510
439 - 372 -14
20322 SW CYPRESS ST
$3,700
439 - 371 -14
20331 SW CYPRESS ST
$4,425
439 - 371 -13
20341 SW CYPRESS ST
$4,620
439 - 372 -13
20342 SW CYPRESS ST
$0
439 - 371 -12
20351 SW CYPRESS ST
$4,545
439- 372 -12
20352 SW CYPRESS ST
$0
439 -371 -11
20361 SW CYPRESS ST
$4,980
439 - 372 -11
20362 SW CYPRESS ST
$5,475
439 - 371 -10
20371 SW CYPRESS ST
$5,495
439 - 372 -10
20372 SW CYPRESS ST
$0
439 - 371 -09
20381 SW CYPRESS ST
$4,750
439 -372 -09
20382 SW CYPRESS ST
$0
439 -371 -08
20391 SW CYPRESS ST
$0
439 - 372-08
20392 SW CYPRESS ST
$4,000
439 - 371-07
20401 SW CYPRESS ST
$4,510
439 - 372-07
20402 SW CYPRESS ST
$4,640
439 -371 -06
20411 SW CYPRESS ST
$8,120
439 - 372 -06
20416 SW CYPRESS ST
$0
439 - 371 -05
20431 SW CYPRESS ST
$0
439 - 372 -03
20432 SW CYPRESS ST
$5,050
439 -372 -02
20452 SW CYPRESS ST
$5,860
439 - 372 -01
20472 SW CYPRESS ST
$4,275
439 - 392 -16
2022 ORCHARD DR
TBD
WNewport B=h\UUD194ep0n s\UUD -19 Amended Rpt 26feb09.dw
City of Nwipod Beach March 10, 2909
Underground Utilities District No. 19 (Santa Ana Heights - Mesa Drive and Cypress Street)
Amended Engineer's Report Page 16
APN
Parcel Address
Est. On -Site
Conversion
Costs
439 - 392 -17
2052 ORCHARD DR
TBD
439 - 381 -17
2072 ORCHARD DR
TBD
439- 382 -23
2122 ORCHARD DR
$0
439 - 382 -19
2132 ORCHARD DR
TBD
439 - 382 -20
2152 ORCHARD DR
TBD
439- 382 -21
2162 ORCHARD DR
TBD
439 - 382 -22
2172 ORCHARD DR
TBD
439 - 341 -01
2173 ORCHARD DR
$5,500
439- 371 -20
2192 ORCHARD DR
$4,010
439 - 371 -25
2202 ORCHARD DR
$3,720
439 - 371 -22
2212 ORCHARD DR
$4,430
439- 371 -24
2232 ORCHARD DR
$4,700
439 - 372 -20
2242 ORCHARD DR
$3,440
439 - 372 -21
2262 ORCHARD DR
$3,825
439 - 342 -16
2271 ORCHARD DR
$0
439 372 -22
2282 ORCHARD DR
$4,650
439 352 -17
20232 SW BIRCH ST
TBD
439 - 381 -25
20241 SW BIRCH ST
$0
439 382 -32
20462 SW BIRCH ST
TBD
QAN -port Beach\WD19\reporb \UUD.19 Amended Rpt 26feb09do
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