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HomeMy WebLinkAbout2016-103 - Declaring Its Intention to Take Proceedings Pursuant to the Municipal Improvements Act of 1913 and to Issue Bonds Pursuant to the Improvement Bond Act of 1915, and Make Certain Findings and Determinations in Connection Therewith, All Relating tRESOLUTION NO. 2016-103 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, DECLARING ITS INTENTION TO TAKE PROCEEDINGS PURSUANT TO THE MUNICIPAL IMPROVEMENT ACT OF 1913 AND TO ISSUE BONDS PURSUANT TO THE IMPROVEMENT BOND ACT OF 1915, AND MAKE CERTAIN FINDINGS AND DETERMINATIONS IN CONNECTION THEREWITH, ALL RELATING TO THE FORMATION OF ASSESSMENT DISTRICT NO. 114 AND 114B WHEREAS, the City Council of the City of Newport Beach (the "City") desires to provide certain property located in the City with the undergrounding of electric, telephone and cable facilities, and the removal of poles, overhead wires, guys, anchors and appurtenant work therewith as further described in Section 3 hereof (the "Improvements") and to order the formation of an Assessment District to pay the costs thereof under and pursuant to the provisions of the Municipal Improvement Act of 1913 (the 1913 Act'); WHEREAS, the proposed Assessment District, if it is formed, is to be known and designated as Assessment District No. 114 and 114b (the "Assessment District'); WHEREAS, the proposed boundaries of the Assessment District are shown on a map which indicates by a boundary line the extent of the territory proposed to be included in the Assessment District, which map is designated 'Boundary of Proposed Assessment District No. 114 and 114b" (the "Map"), which Map is on file in the office of the City Clerk; WHEREAS, the City Council has been presented with petitions signed by at least 50% of the property owners located within the boundaries of the proposed Assessment District requesting the formation of the Assessment District to finance the Improvements, such petitions having been accepted by the City Council with the adoption of Resolution Nos. 2016-56 and 2016-57; Resolution No. 2016-103 Page 2 of 11 WHEREAS, pursuant to California Streets and Highways Code Section 5896.8, there is on file with the City Clerk a certificate of Harris & Associates, Inc. certifying the sufficiency of such petitions; WHEREAS, it appears to the City Council that an Assessment District should be formed to finance the installation of said Improvements under the provisions of the 1913 Act; WHEREAS, the City Engineer, with the assistance of Harris & Associates, Inc., is competent to make and file with the City Clerk the report with regard to the Improvements, which report is required by the 1913 Act to be made and filed; WHEREAS, Assessment District 114 and 114b consists of two designated areas, "Area 114" and "Area 114b" which are depicted on the map and which receive special benefits from the same Improvements; WHEREAS, at the May 24, 2016 City Council meeting, City Council directed that the assessment ballot tabulation be conducted separately for Area 114 and Area 114b due to the fact that each area had separate petitions, but that both areas be addressed in a single Assessment Engineer's Report due to the special benefits received from the Improvements and the potential cost savings to the property owners through combining the two areas; WHEREAS, the conversion of overhead electric utility distribution system facilities to underground, including connection to existing overhead electric utility distribution lines where the surface is restored to the condition existing prior to undergrounding, is categorically exempt from the California Environmental Quality Act (Public Resources Code Section 21000 et seq.) ("CEQA") and its implementing guidelines (14 California Code of Regulations Section 15000 et seq.) (the "Guidelines") Resolution No. 2016-103 Page 3 of 11 pursuant to Section 15302(d) of the Guidelines; WHEREAS, before ordering the Improvements, the City Council is required, under the 1913 Act, to adopt a resolution declaring its intention to do so; WHEREAS, the City Council intends to consider issuing bonds secured by the assessments to be levied on property in the Assessment District pursuant to the Improvement Bond Act of 1915, being Division 10 (commencing with Section 8500) of the Streets and Highways Code (the 1915 Act'); and WHEREAS, before issuing bonds, the City Council is required, under the 1915 Act, to adopt a resolution declaring its intention to do so. NOW, THEREFORE, the Council of the City of Newport Beach does hereby RESOLVE, as follows: Section 1: Recitals. The above recitals, and each of them, are true and correct and are incorporated into the operative part of this resolution. Section 2: Approval of Map. The Map is hereby approved, adopted and declared to describe the proposed boundaries of the Assessment District including the properties in Area 114 and in Area 114b; and it shall govern for all details as to the extent of the Assessment District. The City Clerk is hereby directed to endorse her certificate on the original of the Map evidencing the date and adoption of this resolution and to file said Map in her office, and to file a copy of said Map so endorsed with the County Recorder of Orange, California within fifteen (15) days after the adoption of the resolution fixing the time and place of hearing on the formation and extent of the Assessment District. Section 3: Nature of Improvements. The Improvements generally include the undergrounding of existing electric, telephone and cable facilities, including the removal Resolution No. 2016-103 Page 4 of 11 of poles, overhead wires, guys and anchors and the installation of new underground service connections and new streetlights and appurtenant work therewith as shown on the Map. The improvements will be designed by the Southern California Edison Company ("Edison") and other utility providers. Either Edison or the City will construct the improvements, and the City 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 Edison and such other utility providers. Each owner of property located within the Assessment District will be responsible for arranging 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 Assessment District. 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. Overhead facilities cannot be removed until all overhead service has been discontinued. Section 4: Public Interest and Necessity. The City Council hereby finds and declares that the public interest and necessity require the Improvements, and the Improvements will be of direct and special benefit to the properties and land within the Assessment District. The City Council hereby declares its intention to order the conversion of the existing overhead electric and communication facilities to underground locations, and the acquisition of the Improvements, to make the expenses thereof chargeable upon the area included within the Assessment District, and to form the Assessment District. Resolution No. 2016-103 Page 5 of 11 Section 5: Intention to Levy Assessment. The City Council further declares its intention to levy a special assessment upon the land within the Assessment District in accordance with the respective special and direct benefit to be received by each parcel of land from the Improvements. Section 6: Initiation Proceedings This City Council finds and determines that before ordering the acquisition of the Improvements it shall take proceedings pursuant to the 1913 Act and pursuant to Part 7.5 of the Special Assessment Investigation, Limitation and Majority Protest Act of 1931, Streets and Highways Code Section 2960 et seq. (the "1931 Act"). Section 7: Assessment Engineer Report. Harris & Associates, Inc. is appointed the Assessment Engineer. The Assessment Engineer is hereby authorized and directed to make and file with the City Clerk a written report for the Proposed Assessment District No 114 and 114b with regard to the 1913 Act (the 'Report"), which Report shall comply with the requirements of Section 10204 and Section 2961 of the Streets and Highways Code and Article XIIID of the California Constitution and shall contain the following: (a) Plans and specifications for the Improvements; (b) A general description of works or appliances already installed and any other property necessary or convenient for the operation of the Improvements, if the works, appliances or property are to be acquired as part of the Improvements; (c) An estimate of the cost of the Improvements, and the cost of land, rights of ways, easements, and incidental expenses in connection with the Improvements, including the cost of registering bonds; Resolution No. 2016-103 Page 6 of 11 (d) A diagram showing the exterior boundaries of the Assessment District, the boundaries of Area 114 and Area 114b within the Assessment District and the lines and dimensions of each parcel of land within the Assessment District as they existed at the time of passage of this resolution (each subdivision to be given a separate number on the diagram); (e) A proposed assessment of the total amount of the cost and expenses of the proposed Improvements upon the several subdivisions of land in the Assessment District in proportion to the estimated benefits to be received by such subdivision, respectively, from the Improvements (the assessment shall refer to the subdivisions by their respective numbers assigned as provided in (d) above); and (f) A proposed maximum annual assessment upon each of the several subdivisions of land in the Assessment District to pay costs incurred by the City and not otherwise reimbursed which result from the administration and collection of assessments or from the administration or registration of any associated bonds and reserve or other related funds. In addition, the Report shall contain the information required by the 1931 Act as set forth in Streets and Highways Code Section 2961(b), including: (a) The total amount, as near as may be determined, of the total principal sum of all unpaid special assessments and special assessments required or proposed to be levied under any completed or pending assessment proceedings, other than the proposed assessments to be levied with respect to the Assessment District, which would require an investigation and report under the 1931 Act against the total area proposed to be assessed; and Resolution No. 2016-103 Page 7 of 11 (b) The total true value, as near as may be determined, of the parcels of land and improvements within the Assessment District which are proposed to be assessed. Total true value may be estimated as the full cash value of the parcels as shown upon the last equalized assessment roll of the county. Alternatively, total true value may be determined by other reasonable means, including, but not limited to, by adjusting the value shown on the last equalized assessment roll to correct for deviations from market value due to Article XIIIA of the California Constitution. Section 8: Assessment Balloting. The assessment balloting required pursuant to Section 53753 of the Government Code shall be tabulated separately for Area 114 and Area 114b, as identified in the Report. The results of the assessment ballot tabulation shall provide the following alternatives to the City Council: (a) If a majority of property owners within each of Area 114 and Area 114b cast ballots in favor of formation of the Assessment District, in compliance with Section 53753 of the Government Code, the Assessment District may be approved by the City Council and shall be designated as "Underground Utility Assessment District No. 114 and 114b." (b) If a majority of property owners within either Area 114 or Area 114b cast ballots against formation of the Assessment District, in compliance with Section 53753 of the Government Code, the assessment district proceedings for the Assessment District shall be abandoned. Section 9: Surplus Funds. Following the acquisition of the Improvements and the payment of all incidental expenses in connection with the formation of the Assessment District and the issuance of bonds pursuant to the 1915 Act, any surplus remaining in the improvement fund established for the Assessment District shall be used Resolution No. 2016-103 Page 8 of 11 as determined by the City Council as provided in Section 10427 of the Streets and Highways Code. Section 10: Notice. Notice is hereby given that serial or term bonds to represent unpaid assessments and to bear interest at a rate not to exceed 12 percent per annum will be issued in the manner provided in the Improvement Bond Act of 1915 to represent the unpaid assessments and the last installment of such bonds shall mature a maximum of 20 years from the second day of September next succeeding 12 months from their date. The principal amount of such bonds maturing or becoming subject to mandatory prior redemption each year shall not be an amount equal to an even annual proportion of the aggregate principal amount of the bonds, but rather (except as specifically otherwise provided by the City Council in connection with the sale of such bonds), shall be an amount which, when added to the amount of interest payable in each year, will be a sum which is substantially equal in each year, except for the moneys falling due on the first maturity or mandatory prior redemption date of the bonds which shall be adjusted to reflect the amount of interest earned from the date when the bonds bear interest to the date when the first interest is payable on the bonds. Such bonds shall be serviced and collected by the City Treasurer or by such registrar and/or paying agent(s) as this City Council may from time to time designate. Section 11: Advance Payment of Assessments. The provisions of Part 11.1 of the Improvement Bond Act of 1915, providing an alternative procedure for the advance payment of assessments and the calling of bonds, shall apply. Section 12: Compliance with the 1913 Act. Except as specifically otherwise provided for herein, the Improvements shall be made and ordered pursuant to the provisions of the 1913 Act. Resolution No. 2016-103 Page 9 of 11 Section 13: No Advancement of Funds. The City Council hereby determines that the City will not obligate itself to advance available funds from its treasury to cure any deficiency which may occur in the bond redemption fund established for the Assessment District. Section 14: No Property Owner Construction. The public interests will not be served by allowing the property owners to take any contract to be let for the construction of the Improvements, and no notice of award of contract shall be published. Section 15: Refunding of Assessment Bonds. It is hereby determined that the bonds proposed to be issued in these proceedings may be refunded. Any adjustment to assessments resulting from such refunding shall be done on a pro rata basis as required pursuant to Section 8571.5 of the Streets and Highways Code. Any such refunding shall be pursuant to the provisions of Division 11.5 (commencing with Section 9500) of the Streets and Highways Code, except that, if, following the filing of the report specified in Section 9523 and any subsequent modifications of the report, the City Council finds that all of the conditions specified in Section 9525 are satisfied and that the adjustments to assessments are on a pro rata basis, the City Council may approve and confirm the report and any, without further proceedings, authorize, issue, and sell the refunding bonds pursuant to Chapter 3 (commencing with Section 9600) of Division 11.5 of the Streets and Highways Code. Any such refunding bonds shall bear interest at the rate of not to exceed twelve percent (12%) per annum, or such higher rate of interest as may be authorized by applicable law at the time of sale of such bonds; and the last installment of such bonds shall mature on such date as will be determined by the City Council in the proceedings for such refunding. Resolution No. 2016-103 Page 10 of 11 Section 16: Approval of Construction on Private Property. It is in the public interest and more economical to do certain work on private property to eliminate any disparity in level or size between the Improvements and private property and to add the actual cost of such work to the Assessment of the property to which such work was done; provided that no work of this nature shall be performed until and unless the written consent of the owner of property is first obtained. Section 17: Agreements with Public and Private Utilities. Pursuant to Streets and Highways code Section 10110, the City intends to enter into agreements with Edison and the other utility providers, and any agreement between the City and Edison, or any other public utility, for the ownership, management, or control of the underground electric, telephone and cable facilities to be installed pursuant to the Improvements, would benefit any current or future residents of the Assessment District. Section 18: Exemption from CEQA. The City Council finds the adoption of this resolution is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Further, even if subject to CEQA, it is exempt from CEQA pursuant to Section 15302(d) of the CEQA Guidelines, which applies to the conversion of overhead utility distribution system facilities to underground. Resolution No. 2016-103 Page 11 of 11 Section 19: Inquiries. All inquiries for any and all information relating to these proceedings, including information relating to protest procedures, should be directed to: CITY OF NEWPORT BEACH Attention: Michael Sinacori 100 Civic Center Drive Newport Beach, California 92660 (949) 644-3342 Section 20: Savings Clause. If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. Section 21: City Clerk Certification. The City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions. Section 22: Resolution Effective Immediately. This Resolution shall take effect immediately upon its adoption. ADOPTED, SIGNED AND APPROVED this gch day of August, 2016. ATTEST: � I `lkw �. Leilani I. Brown City Clerk cN, i2<1 0--(- Q� Diane B. Dixon Mayor STATE OF CALIFORNIA } COUNTY OF ORANGE } ss. CITY OF NEWPORT BEACH } I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the whole number of members of the City Council is seven; that the foregoing resolution, being Resolution No. 2016-103 was duly and regularly introduced before and adopted by the City Council of said City at a regular meeting of said Council, duly and regularly held on the gth day of August, 2016, and that the same was so passed and adopted by the following vote, to wit: AYES: Council Member Peotter, Council Member Duffield, Council Member Selich, Council Member Petros, Mayor Dixon NAYS: None RECUSED: Mayor Pro Tem Muldoon, Council Member Curry IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said City this 10th day of August, 2016. 9dk-6 41 Leilani I. Brown, MMC City Clerk Newport Beach, California (Seal)