HomeMy WebLinkAbout05 - Request for Petition Certification and Funding for Expanding Underground Assessment District No. 120-2 (Santa Ana Avenue and Cliff Drive Area)Q �EwPpRT
CITY OF
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z NEWPORT BEACH
<,FORN'P City Council Staff Report
October 12, 2021
Agenda Item No. 5
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: David A. Webb, Public Works Director - 949-644-3311,
dawebb@newportbeachca.gov
PREPARED BY: Michael J. Sinacori, P.E, Assistant City Engineer
msinacori@newportbeachca.gov
PHONE: 949-644-3342
TITLE: Resolution No. 2021-95: Request for Petition Certification and
Funding for Expanding Underground Assessment District No. 120-2
(Santa Ana Avenue and Cliff Drive Area)
ABSTRACT:
The City Council formed Undergrounding Utility Assessment District No. 120 on April 13,
2021, after a positive vote of 23 property owners. Shortly after that approval, residents on
the adjacent La Jolla Drive and La Jolla Lane expressed a strong desire to be included in
the approved district. As a result, a request to expand the district was made. The larger
assessment district has 42 property owners. At least 60 percent of these property owners
have signed and submitted a petition to the City of Newport Beach (City), requesting the
formation of the larger assessment district. The next step in the assessment district
process would be for the City to advance funds to have the assessment engineer prepare
a new Engineer's Report and to circulate ballots for the property owners to vote on the
revised assessments for the larger district. Staff will assist the process by developing and
soliciting a property owner vote in the coming months. It will be based on a conservative
cost estimate developed at the completion of the schematic level design.
RECOMMENDATION:
a) Find this project exempt from the California Environmental Quality Act (CEQA)
pursuant to Section 15302(d) (conversion of overhead electric utility distribution
system facilities to underground including connection to existing overhead electric
utility distribution lines where the surface is restored to the condition existing prior to
the undergrounding);
b) Adopt Resolution No. 2021-95, A Resolution of the City Council of the City of Newport
Beach, California, Accepting the Petition for the Formation of Underground Utility
Assessment District No. 120-2; and
c) Approve Budget Amendment No. 22-017 authorizing an advance from the General
Fund in the amount of $37,500 and appropriating said amount to Account No. 66902-
941006 (AD -120 Assessment Engineering). Funds remaining in any fiscal year will be
carried forward to future annual budgets per Council Policy F-3.
5-1
Resolution No. 2021-95: Request for Petition Certification and Funding for Expanding
Underground Assessment District No. 120-2 (Santa Ana Avenue and Cliff Drive Area)
October 12, 2021
Page 2
DISCUSSION:
The City Council formed Undergrounding Utility Assessment District No. 120 on April 13,
2021, after a majority vote of 23 property owners in this two -block area. Shortly after that
approval, residents on the adjacent La Jolla Drive and La Jolla Lane expressed a strong
interest to be included in the approved district. As a result, a request to expand the district
was made. Because there is no process under assessment district law to expand an
existing assessment district as desired, a new assessment district, 120-2 will have to be
formed that will include both the area within Undergrounding Utility District No. 120 and
the adjacent properties on La Jolla Drive and La Jolla Lane. The larger 120-2 assessment
district has 42 property owners who have submitted a petition to the City, signed by at
least 60 percent of the owners, requesting the formation of the larger assessment district.
The boundaries of the proposed larger assessment district are shown in Attachment A.
The submitted petition signatures represent just over 65 percent of the assessable land
within the proposed larger district. The City's guidelines require a minimum of 60 percent
in favor of the district in order to proceed with the formation of a district. Harris &
Associates has reviewed and certified that owners representing over 60 percent of the
assessable property within the proposed larger district had signed the petition in support
of undergrounding overhead utilities.
Staff is proposing that the expedited formation process be utilized for this district that has
been done for the four recently approved districts (AD -111, 113, 116, 116b, 117 and 124).
This process reduces the financial risk to the City and builds on the momentum that has
occurred during the signature gathering time for the petition. The process proposed will
be as follows: City staff retains an Assessment Engineer to prepare the Engineer's Report
and prepare ballots for the property owners to vote on the undergrounding proposal. The
assessments will be based on a conservative cost estimate developed at the completion
of the schematic level design in November 2021, rather than waiting for the completion
of all the necessary utility company design work (which has been ranging around 18-24
months).
If the vote for the larger 120-2 district is successful, with formation completed, the City will
then direct final utility design. It is estimated to take approximately two years after a
successful early vote to complete the design and to bid the work. If the larger assessment
district is ultimately formed, then the City Council will adopt a resolution to dissolve the
original Undergrounding Utility District Assessment District No. 120. If the vote for the
larger 120-2 district is unsuccessful, the City will stop all further work and not incur
additional design costs on the expanded district. The original approved Undergrounding
Utility District Assessment District No. 120 would go forward as Council directed on
April 13, 2021.
5-2
Resolution No. 2021-95: Request for Petition Certification and Funding for Expanding
Underground Assessment District No. 120-2 (Santa Ana Avenue and Cliff Drive Area)
October 12, 2021
Page 3
FISCAL IMPACT:
The Budget Amendment appropriates $37,500 in increased expenditure appropriations
in Account No. 66902-941006 (AD Assessment Engineering) for AD -120. The following
is a summary of expenditures:
Account Description
Account No.
Expensed to
Date
Estimated
Total Cost
AD -120 Assessment Engineering
66902-941006
$55,580
$137,045
The expenditures to date for this district include efforts to prepare the engineers report
and balloting for the original district approved by the City Council on April 13, 2021. In
addition, the notice of assessment was mailed to all 23 property owners, which resulted
in one owner paying. An additional $37,500 will be required to prepare the new engineers
report and complete the second balloting efforts.
In the event that formation of the larger district is successful, these additional costs will
be reimbursed by cash contributions and bond proceeds from 42 property owners within
the larger district. If the larger district fails to be formed, funds advanced for this second
balloting effort cannot be recovered from the original district property owners. In such
case, the General Fund will cover the advance used for second balloting formation costs.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this project exempt from the California
Environmental Quality Act (CEQA) pursuant to Section 15302(d) (conversion of overhead
electric utility distribution system facilities to underground including connection to existing
overhead electric utility distribution lines where the surface is restored to the condition
existing prior to the undergrounding).
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
ATTACHMENTS:
Attachment A — Resolution No. 2021-95
Attachment B — Budget Amendment
5-3
ATTACHMENT A
RESOLUTION NO. 2021- 95
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH, CALIFORNIA, ACCEPTING THE
PETITION FOR THE FORMATION OF UNDERGROUND
UTILITY ASSESSMENT DISTRICT NO. 120-2
WHEREAS, after receiving a petition from certain property owners, the City of
Newport Beach ("City") undertook proceedings to form Assessment District Number 120
("AD 120") in order to finance certain public works of improvement, namely, the
conversion of certain overhead electrical, cable and communication facilities to
underground locations, together with appurtenant work ("AD 120 Improvements");
WHEREAS, after a public hearing on April 13, 2021, the property owners within
AD 120 cast sufficient ballots in favor of the district's formation, and the City recorded a
Notice of Assessment against each parcel within AD 120 for the purpose of securing the
assessments required to finance the AD 120 Improvements;
WHEREAS, subsequent to the formation of AD 120, owners of several parcels
neighboring the district ("Neighboring Parcels") expressed to the City a desire to finance
improvements similar to the AD 120 Improvements;
WHEREAS, some of the proposed improvements in the Neighboring Parcels
would benefit parcels in AD 120 and the cost per parcel to finance the AD 120
Improvements and improvements in the Neighboring Parcels (collectively, "Combined
Improvements") on a combined basis would be less than the cost per parcel to finance
the improvements separately due to economies of scale;
WHEREAS, a number of property owners within AD 120 and a number of the
owners of the Neighboring Parcels (collectively, "Owners") desire to form a new
assessment district to finance the Combined Improvements and have filed with the City
Clerk several signed counterparts of a petition requesting the implementation of a project
to finance the Combined Improvements ("Petition"), the cost of which is to be specifically
assessed against each parcel of land benefiting from such improvements as shown on a
map attached to the Petition;
WHEREAS, in the event the new assessment district is formed, the City Council
would dissolve AD 120;
5-4
Resolution No. 2021 -
Page 2 of 3
WHEREAS, the Petition contains an express waiver of statutory proceedings
under the Special Assessment Investigation, Limitation and Majority Protest Act of 1931,
as provided in California Streets and Highways Code Section 2804 and satisfies the
requirements for instituting proceedings for the conversion of existing overhead electric
and communication facilities to underground locations in accordance with California
Streets and Highways Code Section 5896.5;
WHEREAS, the City Clerk has also received a certificate to the effect that the
Petition has been signed by persons owning lands constituting more than sixty percent
(60%) in area of the land subject to assessment within the proposed assessment district;
and
WHEREAS, this City Council finds that the owners of more than sixty percent
(60%) in area of the land proposed to be assessed for the proposed improvements,
including the owners of more than five of the subject parcels, have signed the Petition
and that the Petition contains the matters required by California Streets and Highways
Code Sections 2804 and 2804.5.
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as
follows:
Section 1: The Petition, as filed with the City Clerk, is hereby found to be legally
sufficient and is accepted.
Section 2: The special assessment proceedings shall be undertaken by the
terms of the Petition, pursuant to the Municipal Improvement Act of 1913 and without
further compliance with the Special Assessment Investigation, Limitation and Majority
Protest Act of 1931 (commencing with California Streets and Highways Code Section
2800).
Section 3: The City Council hereby finds and determines that the public interest
and convenience will be served by the taking of such proceedings.
Section 4: The recitals provided in this resolution are true and correct and are
incorporated into the operative part of this resolution.
Section 5: 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.
5-5
Resolution No. 2021 -
Page 3 of 3
Section 6: The City Council finds the adoption of this resolution exempt from
the California Environmental Quality Act ("CEQA") pursuant to Section 15302(d)
(conversion of overhead electric utility distribution system facilities to underground
including connection to existing overhead electric utility distribution lines where the
surface is restored to the condition existing prior to the undergrounding) of the CEQA
Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has
no potential to have a significant effect on the environment.
Section 7: This action is "final" within the meaning of California Streets and
Highways Code Section 3012.
Section 8: 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 12th day of October, 2021.
Brad Avery, Mayor
ATTEST:
Leilani I. Brown
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
4 A^- ( ff�.,._.
Aaron C. Harp
City Attorney
Attachment: Exhibit A -Certificate of Sufficiency of Petition
5-6
EXHBIT A
CERTIFICATE OF SUFFICIENCY OF PETITION
STATE OF CALIFORNIA
COUNTY OF ORANCE
CITY OF NEWPORT BEACH
The undersigned hereby CERTIFIES as follows:
That I am the duly appointed ASSESSMENT ENGINEER of the CITY OF NEWPORT BEACH,
CALIFORNIA.
That on the 270' day of September, 2021, I reviewed a Petition for the formation of an Assessment
District for certain public works of improvement, together with appurtenances, appurtenant work and
acquisition, where necessary, in a special assessment district known and designated as ASSESSMENT
DISTRICT NO. 120-02 (hereinafter referred to as the "Assessment District"), a copy of which is on
file in the Office of the City Clerk.
The undersigned hereby further specifically certifies as follows:
1. That I caused said Petition to be examined and my examination revealed that said Petition was
signed by not less than five (5) owners of assessable land in the proposed Assessment District as
shown by the last equalized assessment roll used by the City, owning lands constituting more than
fifty percent (50%) of the area of all assessable lands within the proposed Assessment District, all
as prescribed by Section 5896.6 of the Streets and Highways Code of the State of California.
2. Pursuant to the Special Assessment Investigation, Limitation and Majority Protest Act of 1931,
that said Petition did represent sixty-five and three tenths of a percent (65.30%) of the assessable
area of property within the proposed boundaries of the Assessment District.
Executed this 27th day of September, 2021 at Irvine, California.
ALISON BOULEY, P.E.
HARRIS & ASSOCIATES
ASSESSMENT ENGINEER
CITY OF NEWPORT BEACH
STATE OF CALIFORNIA
5-7
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PROPOSED ASSESSMENT DISTRICT NO. 120-2
O POLES TO REMAIN _ _ _ ASSESSMENT DISTRICT BOUNDARY
POLES TO BE REMOVED (27) PROPOSED JOINT TRENCH (3,000 LF) .`
GUY / RISER POLE TO BE ADDED (1) .
OVERHEAD LINES TO BE REMOVED PARCELS TO RETAIN OVERHEAD CONNECTION (1) N
OVERHEAD LINES TO REMAIN FIGURE 1A 1-200'
PAGE 1 OF 1 PARCELS: 42 08-17-21
ME
Assessment District
Number Number
APN
No.
Street
Petition
Signed
Verified Petition
Lot SF
Petition Signer
Property Owner
Comments
1
120
049-101-05
3016
CLIFF DR
YES
YES
6,500
ANN WINTHROP
WINTHROP MARC JOEL TR WINTHROP LIVING TR
Winthrop Living Trust provided trust information
naming Ann Winthropas a trustee.
2
120
049-101-06
3012
CLIFF DR
YES
YES
6,625
RAYMOND P RAMMING
RAMMING RAYMOND PHILLIP III & KATHI
3
120
049-101-07
3008
CLIFF DR
NO
NO
6,625
WONG DARRYL TR FBO MARIKO WONG
4
120
049-101-08
3004
CLIFF DR
NO
NO
6,625
RIPLEY CARMEN B TR
5
120
049-101-09
3000
CLIFF DR
YES
YES
6,625
FRAN BENNETT
BENNETT WILLIAM B TR BENNETT FAMILY TR
Bennett Family Trust provided formation documents
listing Fran Bennett as a trustee.
6
120
049-103-01
2961
CLIFF DR
YES
YES
33,253
CHAU HALLER
HALLER DAVID DANG, CHAU
7
120
049-103-02
2957
CLIFF DR
NO
NO
23,313
DAVIDSSON STURE TR
8
120
049-110-01
3334
W COAST HWY
YES
YES
31,154
MARIANNE BROOKS
BROOKS MARIANNE C TR
APN 049-110-01 includes 3334 W. Coast Hwy and
3400 W. Coast Hwy.
9
120
425-383-09
3015
CLIFF DR
YES
YES
4,601
PAUL SMITH
SMITH PAUL LYLE TR
10
120
425-383-10
3011
CLIFF DR
YES
YES
4,601
ELANA M SPIVACK
SPIVACK ADAM I & ELANA M
11
120
425-383-12
233
SANTA ANNA AVE
YES
YES
4,600
SANDY GOLDBERG
GOLDBERG ROSE & SANDY
12
120
425-383-13
231
SANTA ANNA AVE
NO
NO
4,601
BEGET JUSTIN T TR THE BEGET FAMILY TR
13
120
425-383-14
225
SANTAANNAAVE
YES
YES
4,601
RON HAUGHEY
HAUGHEY RONS
14
120
425-383-15
221
SANTA ANNA AVE
YES
YES
4,550
MAUREEN ORTLIEB
ORTLIEB MICHAEL A TR ORTLIEB FAMILY LIVING TR
Ortlieb Trust provided formation documents listing
Maureen Ortlieb as a trustee.
15
120
425-383-16
217
SANTA ANNA AVE
YES
YES
3,870
KIMBERLY SODERSTROM
SODERSTROM CHARLES W TR KIMBERLEY A SODERSTROM IRREVOC TR
16
120
425-383-17
215
SANTA ANNA AVE
YES
YES
4,131
ANTHONY CLARK
CLARK ANTHONY E & KIMBERLY
17
120
425-383-18
209
SANTA ANNA AVE
YES
YES
3,229
C WAYNE RAY
RAY C WAYNE TR
18
120
425-383-19
201
SANTA ANNA AVE
YES
YES
5,160
SHIRLEY VON BOGENBERG
VON BOGENBERG SHIRLEY TR S VON BOGENBERG LIVING TR
19
120
425-383-20
237
SANTA ANNA AVE
NO
NO
4,601
W ESTPHAL JAY V & LYDIA
20
120
425-383-21
3001
CLIFF DR
YES
YES
4,600
FERIT KURTKAN
KURTKAN FERIT TR KURTKAN FAMILY TR
21
120
049-102-04
2948
CLIFF DR
YES
YES
6,098
LESLIE ALSENZ
ALSENZ, LESLIE JO TR
22
120
049-103-08
2949
CLIFF DR
YES
YES
11,200
ANTONIO CAGNOLO
CAGNOLO ANTONIO G
23
120
049-103-03
2953
CLIFF DR
NO
NO
26,700
WANG HUEI YU TR
24
120
425-383-01
202
LA JOLLA LN
YES
YES
5,000
RONALD AXE
AXE RONALD D & TERESA F
25
120
425-383-02
206
LA JOLLA DR
YES
YES
4,250
RAYMOND SMITH
SMITH RAYMOND A TR
26
120
425-383-03
210
LA JOLLA DR
NO
NO
4,601
BARAGHOUSH AFSHAN
27
120
425-383-04
214
LA JOLLA DR
NO
NO
4,601
PM INVESTMENT GROUP INC
28
120
425-383-05
218
LA JOLLA DR
YES
YES
4,601
MIKE POMEROY
POMEROY MICHAEL L TR
29
120
425-383-06
222
LA JOLLA DR
YES
YES
3,600
TAYLOR WILLIS COSTA
COSTA TAYLOR W
30
120
425-383-07
226
LA JOLLA DR
YES
YES
4,601
GORDON DE BOER
DE BOER GORDON W
31
120
425-383-08
230
LA JOLLA DR
YES
YES
4,601
CHRISTY COLEMAN
COLEMAN JEFFREY & CHRISTY
32
120
425-382-37
233
LA JOLLA DR
YES
YES
4,000
NICOLE CONNERS
CONNERS LOREN C & NICOLE E
33
120
425-382-36
237
LA JOLLA DR
NO
NO
4,000
MOORE PATRICIA REGINA TR
34
120
425-382-35
241
LA JOLLA DR
NO
NO
4,000
SHAFONSKY KIRK
35
120
425-382-34
245
LA JOLLA DR
YES
YES
4,379
LESLIE STOPHER
STOPHER LESLIE
36
120
425-382-33
249
LA JOLLA DR
YES
YES
4,350
CHARLES JEFFREY DUN
DUN CHARLES J & BLYTHE E
37
120
425-382-32
301
LA JOLLA DR
YES
YES
4,300
ELIZABETH PRATTY
PRATTY LOUIS P & ELIZABETH A
38
120
425-382-31
303
LA JOLLA DR
NO
NO
5,924
BENSON MICHAEL S TR THE BENSON FAMILY TR
39
120
425-382-30
305
LA JOLLA DR
NO
NO
4,225
SILVER MOUNT REALTY LLC
40
120
425-382-29
309/313 LA JOLLA DR
YES
YES
4,225
AMY OGBURN
OGBURN JOHN J TR
Ogburn Family Trust provided formation documents
listing Amy L. Ogburn as a trustee.
41
120
049-101-04
308
LA JOLLA DR
YES
YES
6,229
JONATHON & KRISTEN COLLINS
COLLINS JONATHON & KRISTEN
Property Transered in July of 2021.
42
120
049-101-10
311
SANTAANNAAVE
NO
NO
6,229
EDELHAUSER WILLIAM J JR TR
Total 305,580
Verified Petitions Square Footage 199,534
Percentage of Verified Petitions by Area 65.30
5-9
�gW PpRT ATTACHMENT B
City of Newport Beach
tea" r BUDGET AMENDMENT
c'Fon P 2021-22 BA#: 22-017
Department: Public Works
ONETIME: D Yes ❑ No
Requestor: Theresa Schweitzer
Approvals
F' CITY MANAGER'S APPROVAL ONLY
Finance Director: Date
Ll COUNCIL APPROVAL REQUIRED City Clerk: Date
EXPLANATION FOR REQUEST:
To increase expenditure appropriations in Assessment District #120 with an advance from General Fund unappropriated ❑ from existing budget appropriations
fund balance to have the assessment engineer prepare a new Engineer's Report and to circulate ballots for property owners ❑ from additional estimated revenues
votes on the revised assessments. ❑� from unappropriated fund balance
REVENUES
Fund #
Org
Object Project
Description
Increase or (Decrease) $
669
66999
691010
INTERFUND TRANSFERS - TRANSFER IN GENERAL FUND 37,500.00
Subtotal $ 37,500.00
EXPENDITURES
Fund #
Org
Object Project
Description
Increase or (Decrease) $
669
66902
941006
AD #120 - AD ASSESSMENT ENGINEERING
37,500.00
010
01099
991669
GENERAL FUND INTERFUND TRANSFR - TRANSFER OUT AD#120 37,500.00
Subtotal $ 75,000.00
FUND BALANCE
Fund #
Object
Description
Increase or (Decrease) $
010
300000
GENERAL FUND - FUND BALANCE CONTROL
(37,500.00)
669
300000
ASSESSMENT DIST #120 - FUND BALANCE CONTROL
Subtotal $ (37,500.00)
Fund Balance Change Required
5-10