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HomeMy WebLinkAbout19 - Proposed Assessment District No. 120-2 Public Hearing — Area Along Santa Ana Avenue, Cliff Drive, La Jolla Lane & La Jolla DriveQ SEW Pp�T CITY OF z NEWPORT BEACH c�<,FORN'P City Council Staff Report January 11, 2022 Agenda Item No. 19 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: Resolutions Nos. 2022-5 and 2022-6: Proposed Assessment District No. 120-2 Public Hearing — Area Along Santa Ana Avenue, Cliff Drive, La Jolla Lane & La Jolla Drive 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 44 property owners. At least 60 percent of these property owners had signed and submitted a petition to the City of Newport Beach (City), requesting the formation of the larger assessment district. The City Council certified the larger petition for Assessment District No. 120-2 (AD 120-2) on October 12, 2021, and on November 16, 2021, declared its intention to levy assessments and issue bonds to finance the undergrounding, approved the Assessment Preliminary Engineer's Report, and set January 11, 2022, at 4 p.m. as the time and place for this public hearing for AD 120-2. RECOMMENDATION: a) Open the public hearing on the formation of Assessment District No. 120-2; hear public testimony from those who desire to speak; close the public hearing; and direct the City Clerk to tabulate the ballots and report the result; and b) If there is greater than 50% of weighted "Yes" votes versus "No" votes submitted, a majority protest by ballot procedure does not exist and the district may be formed. If it is desired to form the District, take the following actions: i. Adopt Resolution No. 2022-5, A Resolution of the City Council of the City of Newport Beach, California, Overruling Protests, Approving Final Engineer's Report, Levying Assessments without Modification, Approving and Ordering the Work and Improvements for the Utility Underground Project, and Authorizing and Directing Related Actions with Respect to Assessment District No. 120-2; OR 19-1 Resolutions No. 2022-5 and 2022-6: Proposed Assessment District No. 120-2 Public Hearing — Area Along Santa Ana Avenue, Cliff Drive, La Jolla Lane & La Jolla Drive January 11, 2022 Page 2 c) If desired not to form the District, adopt Resolution No. 2022-6, A Resolution of the City Council of the City of Newport Beach, California, Declaring Abandonment of Proceedings for City of Newport Beach Assessment District No. 120-2. 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. In order to expand the existing assessment district as desired, a new district, AD 120-2, would 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, AD 120-2 has 44 property owners who submitted a petition to the City, signed by at least 60 percent of the owners, requesting the formation of the larger assessment district. The City Council certified the petition to expand the District on October 12, 2021, approved a Preliminary Engineers Report on November 16, 2021 and set January 11, 2022 at 4 p.m. as the time and place for a public hearing on this matter. AD 120-2 is being proposed for the conversion of existing overhead utilities to underground locations. The property owners within the boundaries of the proposed assessment district will bear the cost of the improvements and the associated proceedings. The Municipal Improvement Act of 1913 governs the procedures used to create the assessment district. Bonds issued under the Improvement Bond Act of 1915 carry up to a 40 -year term and are issued to finance assessments not paid in cash within 30 days after confirmation of the assessment. Staff is recommending a 20 -year term for AD 120-2. The Federal Income Tax Component of Contribution (ITCC) has been eliminated pursuant to City Council direction. The ITCC is a tax assessed whenever private party contributions in aid of construction (CIAC) are made. To date, underground utility districts have not been assessed this tax as underground utility districts are viewed as providing public benefit by increasing community aesthetics and public safety. If following the public hearing and balloting AD 120-2 is formed, an assessment lien would be recorded on the title of properties included in the district. Thereafter, a cash collection period would take place to provide property owners with an opportunity to prepay their assessment and remove the assessment lien. A second cash collection period is also anticipated prior to the bond sale, which is anticipated to occur prior to construction and after design is complete. 19-2 Resolutions No. 2022-5 and 2022-6: Proposed Assessment District No. 120-2 Public Hearing — Area Along Santa Ana Avenue, Cliff Drive, La Jolla Lane & La Jolla Drive January 11, 2022 Page 3 The total assessment for the proposed AD 120-2 is estimated as follows: Proposed Assessment District No. 120-2 ITEM FINAL COST Cost of Design and Construction $2,149,150 Incidental Costs and Expenses $307,100 Financing Bond Costs $164,000 Estimated Total Cost: $2,620,250 In addition to the payment of the assessment, each property owner will be responsible for the costs of connecting the main service conduit in the public right-of-way to the property owner's home or business, if applicable. The cost to the property owner for this conversion varies depending on the condition and location of the current electrical service. Each property owner is encouraged to contact a licensed electrical contractor to assess their particular property needs. The following is a tentative schedule for the proposed AD 120-2: Resolution of Intention November 16, 2021 Public Hearing January 11, 2022 Utility Companies Design Completed November 2022 Tentative Bond Sale Period April through June 2023 City managed utility construction work commences July 2023 Property owners notified to install service connections March 2024 Property owners complete conversions September 2024 Public utilities begin to remove overhead structures October 2024 Public utilities finish removing poles and overhead structures February 2025 The assessment engineer used a lot size methodology to apportion assessments within this district based on the finding that a majority of the properties are receiving similar safety, reliability and improved aesthetics benefits. The special benefits from undergrounding the overhead utilities were defined as follows: • Improved Aesthetics Benefit. This benefit relates to the improved aesthetics of the streetscape due to the removal of overhead wires and utility poles. For the purposes of this report, a street is defined as either a street or alley. The removal of guy wires and other support structures related to the overhead facilities are included in the definition of improved aesthetics. Properties that are directly adjacent to or have frontage facing overhead facilities receive an aesthetic benefit. There is a direct correlation between the size of the parcel and the extent to which a property may develop, and thus, the Improved Aesthetic Benefit a parcel receives from the undergrounding of adjacent utilities is proportional to the size of the parcel. 19-3 Resolutions No. 2022-5 and 2022-6: Proposed Assessment District No. 120-2 Public Hearing — Area Along Santa Ana Avenue, Cliff Drive, La Jolla Lane & La Jolla Drive January 11, 2022 Page 4 • Additional Safety Benefit. This benefit relates to the additional safety of having the overhead distribution wires placed underground and having the power poles removed, which eliminates the threat of downed utility lines and poles due to wind, rain and other unforeseeable events. Falling facilities can lead to personal injuries and damage to structures, including fire. Access by emergency vehicles can also be blocked by downed power lines. Properties that have a frontage along which the existing overhead utilities will be removed, and have existing overhead utilities that will be removed along the properties' primary ingress/egress route, receive a safety benefit. This benefit is equal for all parcels receiving this benefit because all parcels fronting the existing overhead utilities are equally at risk of being damaged by falling overhead utilities and having their primary ingress/egress route blocked. Therefore, the Additional Safety Benefit is based on the average parcel area within the assessment district boundary. • Connection Benefit. This benefit relates to the enhanced reliability of service from the utilities being underground, due to having all new wires and equipment and having that equipment underground, which reduces the threat of service interruption from downed lines. When compared to overhead systems, fewer outages occur due to various acts of nature, traffic collisions and obstructions (such as trees). Properties that are connected to the facilities proposed to be undergrounded receive a connection benefit. This benefit is equal for all parcels receiving this benefit that have a singular connection. As such, the benefit is based on the average parcel area within the assessment district boundary. Parcels with more than one separate connection receive an increased benefit calculated by multiplying the number of connections by the average parcel area within the assessment district boundary. • View Enhancement Benefit. This benefit relates to the enhanced view as a direct result of the utilities being underground. Properties that receive a view benefit face Newport Harbor and/or the Pacific Ocean and are located along, or have a view down, Santa Ana Avenue, La Jolla Drive or La Jolla Lane. Each parcel that has poles or overhead lines that impede their view of Newport Harbor and/or the Pacific Ocean and that are being undergrounded as part of this district, benefit equally from the undergrounding of the lines. Therefore, this benefit is based on the average parcel area within the assessment district boundary. The range for the estimated assessment costs per parcel is as follows: District No. Range of Assessments 70% of Properties Assessed AD 120-2 $27,616.21 to $162,950.01 Under $67,500 Note that assessments vary due to the property size and benefits received. 19-4 Resolutions No. 2022-5 and 2022-6: Proposed Assessment District No. 120-2 Public Hearing — Area Along Santa Ana Avenue, Cliff Drive, La Jolla Lane & La Jolla Drive January 11, 2022 Page 5 The following revisions for one property are made to this report after it was preliminarily approved on November 16, 2021: 1. Assessment No. 24: This property was thought to have a buildable square footage of 5,000 square feet per the County of Orange's secured tax roll. It has since been determined through a review of the parcel map that the actual buildable square footage is approximately 3,200 square feet. This reduction in buildable square footage results in a decreased total assessment, but does not change the benefits received by the parcel. It has been determined that this property's assessment will be reduced by $4,750 due to this correction, and the project's planned contingency funds will be reduced by a like amount. Ballot Tabulation Procedures: All assessment ballots submitted to the City Clerk prior to the close of the public hearing on January 11, 2022, will be tabulated per the ballot tabulation procedures directed by City Council Policy L-28. However, for assessment districts, it is important to remember that, under the California Constitution, assessments are not taxes. Properties within the assessment district are assessed only for the special benefit such properties derive from the improvements to be financed from the assessments. This is a critical distinction from a tax, as Article MID Section 4(g) of the Constitution states "Because only special benefits are assessable, electors residing within the district who do not own property within the district shall not be deemed under this Constitution to have been deprived of the right to vote for any assessment." This allows for a majority protest proceeding rather than an election. Pursuant to the majority protest proceedings, a simple majority (50%+$1) of the assessment amount of the ballots received would allow the assessment to pass. FISCAL IMPACT: Funds will be provided by property owner contributions and/or bond proceeds if the expanded assessment district is approved. The City Council approved a Budget Amendment on April 13, 2021, advancing funds for the utility system designs (SCE, AT&T and Spectrum) that will be reimbursed by property owners. No additional design funding is required at this time from the utility companies as the funds provided last year should be sufficient to complete the expanded district. If the expanded district is not successfully formed following the vote, General Funds previously appropriated on October 12, 2021 for the preparation of the Engineer's Report and balloting effort for the expanded district, approximately $37,500, including legal fees from outside bond counsel, would not be recovered from the proposed district property owners. If the expanded district is successfully formed, then these costs will be recovered from all the respective property owners within the larger district. 19-5 Resolutions No. 2022-5 and 2022-6: Proposed Assessment District No. 120-2 Public Hearing — Area Along Santa Ana Avenue, Cliff Drive, La Jolla Lane & La Jolla Drive January 11, 2022 Page 6 ENVIRONMENTAL REVIEW: On October 12, 2021, the City Council deemed 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). In addition, all property owners within the proposed district were mailed a Public Hearing Notice and Ballots noting their assessment amounts. ATTACHMENTS: Attachment A — November 16, 2021 Staff Report Attachment B — Resolution No. 2022-5 (Confirming Assessment) Attachment C — Resolution No. 2022-6 (Declaring Abandonment) Attachment D — Final Engineer's Report 19-6 ATTACHMENT A Q �EwPpRT CITY OF z NEWPORT BEACH <,FORN'P City Council Staff Report November 16, 2021 Agenda Item No. 8 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 Nos. 2021-111 and 2021-112: Proposed Assessment District No. 120-2 — Area Along Santa Ana Avenue, Cliff Drive, La Jolla Lane and La Jolla Drive 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 44 property owners. At least 60 percent of these property owners had signed and submitted a petition to the City of Newport Beach (City), requesting the formation of the larger assessment district. The City Council certified the petition for AD 120-2 on October 12, 2021 and is now asked to declare its intention to levy assessments and issue bonds to finance the undergrounding, approve the Assessment Preliminary Engineer's Report, and set January 11, 2022, as the time and place for a Public Hearing for AD 120-2. RECOMMENDATION: a) The City Council deemed this project exempt from the California Environmental Quality Act (CEQA) on October 12, 2021 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. 2021-111, 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. 120-2; and 19-7 8-1 Resolution Nos. 2021-111 and 2021-112: Proposed Assessment District No. 120-2 — Area Along Santa Ana Avenue, Cliff Drive, La Jolla Lane and La Jolla Drive November 16, 2021 Page 2 c) Adopt Resolution No. 2021-112, A Resolution of the City Council of the City of Newport Beach, California, Preliminarily Approving the Assessment Engineer's Report and Fixing the Time and Place of the Public Hearing for Assessment District No. 120-2. 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. In order to expand the existing assessment district as desired, a new district, 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, Assessment District 120-2 has 44 property owners who submitted a petition to the City, signed by at least 60 percent of the owners, requesting the formation of the larger assessment district. The City Council certified the petition to expand the District on October 12, 2021. Assessment District No. 120-2 is being proposed for the conversion of existing overhead utilities to underground locations. The property owners within the boundaries of the proposed assessment district will bear the cost of the improvements and the associated proceedings. The Municipal Improvement Act of 1913 governs the procedures used to create the assessment district. Bonds issued under the Improvement Bond Act of 1915 carry up to a 40 -year term and are issued to finance assessments not paid in cash within 30 days after confirmation of the assessment. Staff is recommending a 20 -year term for AD 120- 2. The Federal Income Tax Component of Contribution (ITCC) has been eliminated pursuant to City Council direction. The ITCC is a tax assessed whenever private party contributions in aid of construction are made. To date, underground utility districts have not been assessed this tax as underground utility districts are viewed as providing public benefit by increasing community aesthetics and public safety. If following the public hearing and balloting AD 120-2 is formed, an assessment lien would be recorded on the title of properties included in the district and the existing assessments associated with the original AD 120 would be discharged. Thereafter, a cash collection period would take place to provide property owners with an opportunity to prepay their assessment and remove the assessment lien. A second cash collection period is also anticipated prior to the bond sale, which is anticipated to occur prior to construction and after design is complete. 19-8 8-2 Resolution Nos. 2021-111 and 2021-112: Proposed Assessment District No. 120-2 — Area Along Santa Ana Avenue, Cliff Drive, La Jolla Lane and La Jolla Drive November 16, 2021 Page 3 The total assessment for Proposed Assessment District No. 120-2 is estimated as follows: Pr000sed Assessment District No. 120-2 ITEM COST Cost of Design and Construction $2,153,900.00 Incidental Costs and Expenses $307,100.00 Financing (Bond) Costs $164,000.00 Estimated Total Cost: $2,625,000.00 In addition to the payment of the assessment, each property owner will be responsible for the costs of connecting the main service conduit in the public right-of-way to the property owner's home or business, if applicable. The cost to the property owner for this conversion varies depending on the condition and location of the current electrical service. Each property owner is encouraged to contact a licensed electrical contractor to assess its particular property needs. The following is a tentative schedule for proposed Assessment District No. 120-2: Resolution of Intention November 16, 2021 Public Hearing January 11, 2022 Utility Companies Design Completed December 2022 Tentative Bond Sale Period Aril thru June 2023 City managed utility construction work July 2023 commences Property owners notified to install service March 2024 connections Property owners' complete conversions September 2024 Public utilities begin to remove overhead October 2024 structures Public utilities finish removing poles and February 2025 overhead structures The Assessment Engineer used a lot size methodology to apportion assessments within this district based on the finding that a majority of the properties are receiving similar safety, connection aesthetic and view enhancement benefits. The special benefits from undergrounding the overhead utilities were defined as follows: • Improved Aesthetics Benefit. This benefit relates to the improved aesthetics of the streetscape due to the removal of overhead wires and utility poles. For the purposes of this report, a street is defined as either a street or alley. The removal of guy wires and other support structures related to the overhead facilities are included in the definition of improved aesthetics. Properties that are directly adjacent to or have frontage facing overhead facilities receive an aesthetic benefit. 19-9 8-3 Resolution Nos. 2021-111 and 2021-112: Proposed Assessment District No. 120-2 — Area Along Santa Ana Avenue, Cliff Drive, La Jolla Lane and La Jolla Drive November 16, 2021 Page 4 There is a direct correlation between the size of the parcel and the extent to which a property may develop and thus the Improved Aesthetic Benefit a parcel receives from the undergrounding of adjacent utilities is proportional to the size of the parcel. • Additional Safety Benefit. This benefit relates to the additional safety of having the overhead distribution wires placed underground and having the power poles removed, which eliminates the threat of downed utility lines and poles due to wind, rain and other unforeseeable events. Falling facilities can lead to personal injuries and damage to structures, including fire. Access by emergency vehicles can also be blocked by downed power lines. Properties that have a frontage along which the existing overhead utilities will be removed, and have existing overhead utilities that will be removed along the properties' primary ingress/egress route, receive a safety benefit. This benefit is equal for all parcels receiving this benefit because all parcels fronting the existing overhead utilities are equally at risk of being damaged by falling overhead utilities and having their primary ingress/egress route blocked. Therefore, the Additional Safety Benefit is based on the average parcel area within the assessment district boundary. • Connection Benefit. This benefit relates to the enhanced reliability of service from the utilities being underground, due to having all new wires and equipment and having that equipment underground, which reduces the threat of service interruption from downed lines. When compared to overhead systems, fewer outages occur due to various acts of nature, traffic collisions and obstructions (such as trees). Properties that are connected to the facilities proposed to be undergrounded receive a connection benefit. This benefit is equal for all parcels receiving this benefit that have a singular connection. As such, the benefit is based on the average parcel area within the assessment district boundary. Parcels with more than one separate connection receive an increased benefit calculated by multiplying the number of connections by the average parcel area within the assessment district boundary. • View Enhancement Benefit. This benefit relates to the enhanced view as a direct result of the utilities being underground. Properties that receive a view benefit face Newport Harbor and/or the Pacific Ocean and are located along, or have a view down, Santa Ana Avenue, La Jolla Drive or La Jolla Lane. Each parcel that has poles or overhead lines that impede their view of Newport Harbor and/or the Pacific Ocean and that are being undergrounded as part of this district, benefit equally from the undergrounding of the lines. Therefore, this benefit is based on the average parcel area within the assessment district boundary. The range for the estimated assessment costs per parcel is as follows: District No. Range of Assessments 80% of Properties Assessed AD 120-2 $26,787.30 to $164,100.95 Under $68,500 19-10 8-4 Resolution Nos. 2021-111 and 2021-112: Proposed Assessment District No. 120-2 — Area Along Santa Ana Avenue, Cliff Drive, La Jolla Lane and La Jolla Drive November 16, 2021 Page 5 Note that assessments vary due to the property size and benefits received. Ballot Tabulation Procedures: All assessment ballots submitted to the City Clerk prior to the close of the public hearing, recommended to be set for January 11, 2022, will be tabulated per the ballot tabulation procedures directed by City Council Policy L-28. FISCAL IMPACT: While there is no direct fiscal impact related to this item, the City Council approved Budget Amendment No. 22-017 on October 12, 2021, appropriating $37,500 from the General Fund to Account No. 66902-941006 (AD Assessment Engineering) for preliminary design and assessment engineering costs. In the event that formation of the district is successful, these costs will be reimbursed by cash contributions and bond proceeds from property owners within the district. If the expanded district fails to be formed, funds advanced for preliminary work cannot be recovered from the formerly approved AD -120 district property owners. In such case, the General Fund will cover the advance used for preliminary formation costs. An annual administrative assessment of a maximum of two hundred and fifty dollars ($250.00) will be levied on parcels in AD 120-2 in order to pay for ongoing administration costs. ENVIRONMENTAL REVIEW: On October 12, 2021 the City Council deemed 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. 2021-111 Attachment B — Resolution No. 2021-112 Attachment C — Notice of Exemption 19-11 8-5 ATTACHMENT B RESOLUTION NO. 2022- 5 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, MAKING DETERMINATIONS, CONFIRMING ASSESSMENTS AND PROCEEDINGS, AND DESIGNATING THE SUPERINTENDENT OF STREETS TO COLLECT AND RECEIVE ASSESSMENTS AND TO ESTABLISH A SPECIAL FUND FOR CITY OF NEWPORT BEACH ASSESSMENT DISTRICT NO. 120-2 WHEREAS, this City Council has previously adopted Resolution No. 2021-111 (the "Resolution of Intention") declaring its intention to order the construction of the improvements described in the Resolution of Intention (the "Improvements") and to form Assessment District No. 120-2 (the "Assessment District") under the provisions of the Municipal Improvement Act of 1913 (Division 12 of the California Streets and Highways Code, "the Act"); WHEREAS, this City Council has heretofore preliminarily approved a report prepared under and pursuant to the Act and, in particular, Section 10204 of the California Streets and Highways Code (the "Engineer's Report"); WHEREAS, this City Council fixed January 11, 2022, at the hour of 4:00 p.m. at the regular meeting place of the City Council, City Hall, 100 Civic Center Drive, Newport Beach, California 92660, as the time and place of hearing protests and objections to the improvements proposed in the Engineer's Report to be made, the extent of the Assessment District proposed to be created and/or to the proposed assessment; WHEREAS, the City Clerk has caused notice to be given of the passage of the Resolution of Intention, the filing of the Engineer's Report and the time and place and purpose of said hearing, all as required by the Act and by Section 53753(c) of the California Government Code and Article XIIID, Section 4 of the California Constitution ("Article XIIID"); WHEREAS, a final Engineer's Report (the "Final Report") has been prepared setting forth the Improvements to be acquired and constructed, and the Final Report has been filed with the City Council and has been available for review by the property owners within the proposed Assessment District; 19-12 Resolution No. 2022 - Page 2 of 5 WHEREAS, at the time and place stated in the aforesaid notice, a hearing was duly held by this City Council and, during the course of said hearing, the Final Report was duly presented and considered, all written protests and objections received, if any, were duly presented, read, heard and considered and all persons appearing at said hearing and desiring to be heard in the matter of said Final Report were heard, and a full, fair and complete hearing has been conducted; WHEREAS, this City Council has received all ballots filed with the City Clerk prior to the conclusion of the hearing, and the Assessment Engineer, on behalf of the City Clerk, has counted all ballots for and against the formation of the Assessment District as provided in Article XIIID; WHEREAS, this City Council has considered the assessment proposed in the Final Report and the evidence presented at said hearing; and WHEREAS, under the provisions of Section 10424 of the California Streets and Highways Code, funds collected by the Director of Public Works acting as the Superintendent of Streets (the "Superintendent of Streets") pursuant to an assessment under the Municipal Improvement Act of 1913 are required to be placed in a special improvement fund designated by the name of the assessment proceeding. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows.- Section ollows: Section 1: The public hearing referred to in the recitals hereof has been duly held, and each and every step in the proceedings prior to and including the hearing has been duly and regularly taken. This City Council is satisfied with the correctness of the Final Report, including the assessment and diagram and the maximum annual assessment for administrative expenses, the proceedings and all matters relating thereto. Section 2: The property within the Assessment District to be assessed as shown in the Final Report will be benefited by the Improvements. Section 3: The City Council overrules and denies any and all protests, objections and appeals made in regard to these proceedings, and it finds and determines that a majority of the ballots received are in favor of the assessment. In tabulating the ballots, the ballots were weighted according to the proportional financial obligation of the affected property. 19-13 Resolution No. 2022 - Page 3 of 5 Section 4: The amount of the assessments shown in the Final Report and the proposed maximum annual assessment per parcel for administrative expenses shown are confirmed and are fixed in said amounts. Section 5: The amounts to be assessed against the individual parcels shown on the assessment diagram contained in the Final Report are hereby approved and confirmed; and the Superintendent of Streets is authorized and directed to endorse the fact and date of such approval on the Final Report. Section 6: The assessment diagram and assessment is to be placed on file in the office of the Superintendent of Streets, and the City Clerk is authorized and directed to record, or cause to be recorded, the assessment diagram and assessment in the office of the County Recorder of the County of Orange as required by Sections 3114, 10401 and 10402 of the California Streets and Highways Code; and the City Clerk shall record, or cause to be recorded, a Notice of Assessment as required by Section 3114 of said Code. Section 7: The Superintendent of Streets is authorized and directed to give notice of the recordation of the assessment, as provided in Section 10404 of said Code. Section 8: This City Council hereby finds and determines that the information set forth in Table 1 of the Final Report demonstrates compliance with the requirements of Part 7.5 of Division 4 of the California Streets and Highways Code, thereby dispensing with any further proceedings pursuant to said Division 4, and this determination and action is final and conclusive as to all persons in accordance with Section 3012 of the California Streets and Highways Code. Section 9: The Superintendent of Streets is designated to receive the assessments paid during: (i) the thirty (30) day cash payment period which shall commence on the date of filing the assessment diagram with the Superintendent of Streets; and (ii) approximately ninety (90) days prior to the issuance of the limited obligation improvement bonds referenced in the Resolution of Intention (the "Bonds"). Section 10: Following receipt of the Certificate Regarding Paid and Unpaid Assessments, this City Council intends to proceed with authorization of the issuance and sale of the Bonds, pursuant to the Improvement Bond Act of 1915 and upon the security of and in a principal amount equal to the unpaid assessments, bearing interest at a rate not to exceed twelve percent (12%) per annum, with the last principal installment of the Bonds to mature not to exceed twenty (20) years from the second day of September next succeeding twelve (12) months from their date. 19-14 Resolution No. 2022 - Page 4 of 5 Section 11: The area within the Assessment District is hereby designated an underground utilities district pursuant to and in accordance with Chapter 15.32 (Underground Utilities) of the Newport Beach Municipal Code ("NBMC°), and in accordance with Section 15.32.040 (City Council May Designate Underground Utility Districts by Resolution) of the NBMC, this City Council hereby establishes the date which is one year from the date on which the Improvements are released by the utility companies responsible for such Improvements (the "Utility Companies") as a reasonable date by which all affected property owners must be ready to receive underground service. Section 12: The City Manager of the City, or any designees thereof, is authorized to execute any and all contracts with the Utility Companies for the purpose of constructing or funding the Improvements or otherwise carrying out the intentions of this resolution. Section 13: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. Section 14: 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 15: 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, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Section 16: As a result of sufficient ballots being cast in favor of the formation of the Assessment District, the City Council hereby rescinds Resolution No. 2021-28 and abandons and dissolves Assessment District No. 120, extinguishing and terminating all associated assessments in connection therewith. The City Clerk shall immediately cause the recordation of a certified copy of this resolution with the County Recorder for the County of Orange. The certificate attached to this resolution shall include a reference to the date of the adoption of this resolution, the date of the original Resolution of Intention for Assessment District No. 120, and the date the map of Assessment District No. 120 was previously filed with the County Recorder. 19-15 Resolution No. 2022 - Page 5 of 5 Section 17: 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 11th day of January, 2022 Kevin Muldoon Mayor ATTEST: Leilani I. Brown City Clerk APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE /'t4' r Aaron C. Harp City Attorney 19-16 STATE OF CALIFORNIA, COUNTY OF ORANGE, CITY OF NEWPORT BEACH The undersigned CERTIFIES as follows: 1. During all of the times herein mentioned, the undersigned was, and now is, the duly qualified and acting City Clerk of the City of Newport Beach, California. 2. The attached resolution abandoning proceedings for the construction of certain improvements in City of Newport Beach Assessment District No. 120 was duly adopted on January 11, 2022. 3. Reference is hereby made to a Resolution of Intention for Assessment District No. 120, Resolution No. , adopted on , 2021 for a further and complete description of the works of improvement and assessments proposed for Assessment District No. 120. 4. A map of the proposed boundaries of Assessment District No. 120 was filed in the Office of the County Recorder of the County of Orange County on , 2021, as Orange County Assessor Parcel Maps Recorded Document EXECUTED this day of 12022. Leilani I. Brown City Clerk 19-17 ATTACHMENT C RESOLUTION NO. 2022-6 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, DECLARING ABANDONMENT OF PROCEEDINGS FOR CITY OF NEWPORT BEACH ASSESSMENT DISTRICT NO. 120-2 WHEREAS, this City Council has previously adopted Resolution No. 2021-111 (the "Resolution of Intention") and initiated proceedings for the acquisition of certain public works of improvement, namely, the conversion of certain overhead electrical, cable and communication facilities to underground locations, together with appurtenances and appurtenant work, in a special assessment district designated as City of Newport Beach Assessment District No. 120-2 (hereinafter referred to as the "Assessment District") under the provisions of the Municipal Improvement Act of 1913 (Division 12 of California Streets and Highways Code, the "Act"), Article XIIID of the Constitution of the State of California ("Article XIIID"), and the Proposition 218 Omnibus Implementation Act (commencing with Section 53750 of the Government Code) (the "Implementation Act") (the Act, Article XIIID, and the Implementation Act are referred to herein collectively as the "Assessment Law"); WHEREAS, after notice of a public hearing was mailed, accompanied by ballot materials, a full public hearing on the improvements and assessments was held on January 11, 2022, all in accordance with Assessment Law; and WHEREAS, this City Council has received all ballots filed with the City Clerk prior to the conclusion of the hearing, and the Assessment Engineer on behalf of the City Clerk has counted all ballots for and against the formation of the Assessment District as provided in Article XIIID. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The public hearing referred to in the recitals hereof has been duly held, and each and every step in the proceedings prior to and including the hearing has been duly and regularly taken. Section 2: This City Council finds and determines based upon the Certificate of Assessment Engineer who conducted the ballot tabulation that a majority of the ballots received are in opposition to the assessment. In tabulating the ballots, the ballots were weighted according to the proportional financial obligation of the affected property. 19-18 Resolution No. 2022 - Page 2 of 3 Section 3: The proceedings heretofore taken under and pursuant to the Assessment Law for the work and improvements proposed by said Resolution of Intention in the Assessment District are hereby ordered abandoned. Section 4: The City Clerk shall immediately cause the recordation of a certified copy of this Resolution of Abandonment with the County Recorder. The certificate attached to the Resolution shall include a reference to the date of the adoption of this resolution, the date of the original Resolution of Intention, and the date the map of the Assessment District was previously filed with the County Recorder. Section 5: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. Section 6: 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 7: 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, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Section 8: As a result of sufficient ballots being cast against the formation of the Assessment District, Assessment District No. 120, which was confirmed in a Resolution of the City Council adopted on April 13, 2021, and its associated assessments, shall remain in place. 19-19 Resolution No. 2022 - Page 3 of 3 Section 9: 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 11th day of January, 2022 Kevin Muldoon Mayor ATTEST: Leilani 1. Brown City Clerk APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE oX-� C Aar6n C. Harp City Attorney 19-20 STATE OF CALIFORNIA, COUNTY OF ORANGE, CITY OF NEWPORT BEACH The undersigned CERTIFIES as follows - 1 . ollows: 1. During all of the times herein mentioned, the undersigned was, and now is, the duly qualified and acting City Clerk of the City of Newport Beach, California. 2. The attached resolution abandoning proceedings for the construction of certain improvements in City of Newport Beach Assessment District No. 120-2 was duly adopted on January 11, 2022. 3. Reference is hereby made to a Resolution of Intention, Resolution No. , adopted on , 2021 for a further and complete description of the works of improvement and assessments proposed for the Assessment District. 4. A map of the proposed boundaries of the Assessment District was filed in the Office of the County Recorder of the County of Orange County on , 2021, as Orange County Assessor Parcel Maps Recorded Document EXECUTED this Leilani I. Brown City Clerk day of , 2022. 19-21 Final Engineer's Report for Underground Utility Assessment District No. 120-2 (Santa Ana Avenue, Cliff Drive, La Jolla Lane, La Jolla Drive & Alley) Prepared under the provisions of the Municipal Improvement Act of 1913 For the City of Newport Beach County of Orange, California December 16, 2021 19-22 City of Newport Beach December 16, 2021 Underground Utility Assessment District No. 120-2 (Santa Ana Avenue Cliff Drive, La Jolla Lane, La Jolla Drive & Alley) Final Engineer's Report TABLE OF CONTENTS APPENDIX A. Assessment Calculations Harris & Associates 19-23 Page Introduction and Certifications............................................................................................ 1 PART I Plans and Specifications................................................................................... 4 PARTII Cost Estimate..................................................................................................... 5 PART III Assessment Roll and Method of Assessment Spread ..................................... 6 Table 1 — Assessment Roll.................................................................................. 9 Table 2 — Debt Limit Valuation........................................................................ 10 Exhibit 1 — Method and Formula of Assessment Spread .................................. l l PART IV Annual Administrative Assessment............................................................... 21 PART V Diagram of Assessment District..................................................................... 22 PART VI Description of Facilities.................................................................................. 24 Right -of -Way Certificate.................................................................................. 25 Certification of Completion of Environmental Proceedings ............................ 26 APPENDIX A. Assessment Calculations Harris & Associates 19-23 City of Newport Beach December 16, 2021 Underground Utility Assessment District No. 120-2 (Santa Ana Avenue Cliff Drive, La Jolla Lane, La Jolla Drive & Alley) Final Engineer's Report Paqe 1 AGENCY: CITY OF NEWPORT BEACH PROJECT: ASSESSMENT DISTRICT NO. 120-2 TO: CITY COUNCIL ENGINEER'S "REPORT" PURSUANT TO THE PROVISIONS OF SECTIONS 2961 AND 10204 OF THE STREETS AND HIGHWAYS CODE The purposes of this Assessment District is to provide financing to underground power, telephone and cable facilities in the area generally along Santa Ana Avenue, Cliff Drive, the alley east of Cliff Drive, La Jolla Lane and La Jolla Drive between Old Newport Boulevard and the alley east of Cliff Drive. The proposed underground utility improvements will provide conversion to an upgraded utility system and will enhance neighborhood aesthetics, safety, reliability and views of the Newport Harbor and the Pacific Ocean. The construction of these improvements will conform to existing City of Newport Beach, Southern California Edison, AT&T and Spectrum standards. The proposed improvements are of special and direct benefit to the properties within the boundary of the proposed assessment district. A prior assessment district ("AD 120") that was located within the boundaries of this proposed assessment district was formed after a public hearing on April 13, 2021 for the purpose of financing the construction of improvements similar to those to be financed by this proposed assessment district. The proposed assessment district includes several neighboring parcels that were not located within AD 120, and it seeks to finance additional improvements beyond those that were contemplated when AD 120 was formed. In the event that the proposed assessment district is formed, the City expects to dissolve AD 120 and remove the associated assessment liens. Pursuant to the provisions of Article XIIID of the State Constitution, Part 7.5 of the "Special Assessment Investigation, Limitation and Majority Protest Act of 1931 ", being Division 4 of the Streets and Highways Code of the State of California, and the "Municipal Improvement Act of 1913", being Division 12 of said Code, and the Resolution of Intention, adopted by the City Council of the CITY OF NEWPORT BEACH, State of California, in connection with the proceedings for Underground Utility Assessment District No. 120-2 (hereinafter referred to as the "Assessment District"), I, Alison M. Bouley, P.E., a Registered Professional Engineer and authorized representative of Harris & Associates, the duly appointed Engineer of Work, herewith submits the "Report" for the Assessment District, consisting of six (6) parts as stated below. PART This part contains the plans and specifications which describe the general nature, location and extent for the proposed improvements to be constructed, and are filed herewith and made a part hereof. Said plans and specifications are on file in the Office of the Superintendent of Streets. PART II This part contains an estimate of the cost of the proposed improvements, including capitalized interest, if any, incidental costs and expenses in connection therewith as set forth herein and attached hereto. Harris & Associates 19-24 City of Newport Beach December 16, 2021 Underground Utility Assessment District No. 120-2 (Santa Ana Avenue Cliff Drive, La Jolla Lane, La Jolla Drive & Alley) Final Engineer's Report Paqe 2 PART III This part consists of the following information: A. A proposed assessment of the total amount of the costs and expenses of the proposed improvements upon the several subdivisions of land within the Assessment District, in proportion to the special benefits to be received by such subdivisions from said improvements, which is set forth upon the assessment roll filed herewith and made a part hereof. B. The total amount, as near as may be determined, of the total principal sum of all unpaid special assessments previously levied and special assessments required or proposed to be levied under any completed or pending assessment proceedings, other than that contemplated for the Assessment District, which would require an investigation and report under the "Special Assessment Investigation, Limitation and Majority Protest Act of 1931" against the total area proposed to be assessed; and C. The total true value, determined from the latest Assessor's roll, of the parcels of land and improvements which are proposed to be assessed. PART IV This part contains the proposed maximum annual administrative assessment to be levied upon each subdivision or parcel of land within the Assessment District to pay the costs incurred by the CITY OF NEWPORT BEACH, and not otherwise reimbursed, resulting from the administration and collection of assessments, from the administration and registration of any associated bonds and reserve or other related funds, or both. PART V This part contains a map showing the boundaries of the Assessment District, and a diagram showing the Assessment District, the boundaries and the dimensions of the subdivisions of land within said Assessment District, as the same existed at the time of the passage of the Resolution of Intention. The Boundary Map and Assessment Diagram are filed herewith and made a part hereof, and part of the assessment. PART VI This part shall consist of the following information: A. Description of facilities B. Right -of -Way Certificate C. Environmental Certificate Harris & Associates 19-25 City of Newport Beach December 16, 2021 Underground Utility Assessment District No. 120-2 (Santa Ana Avenue Cliff Drive, La Jolla Lane, La Jolla Drive & Alley) Final Engineer's Report Paqe 3 This report is submitted on October 25, 2021. HARRIS & ASSOCIATES ALISON M. BOULEY, P.E. R.C.E. No. C61383 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 , 2021. 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 2021. CITY CLERK CITY OF NEWPORT BEACH STATE OF CALIFORNIA Harris & Associates 19-26 City of Newport Beach December 16, 2021 Underground Utility Assessment District No. 120-2 (Santa Ana Avenue Cliff Drive, La Jolla Lane, La Jolla Drive & Alley) Final Engineer's Report Paqe 4 Part I Plans and Specifications The plans and specifications to construct the utility undergrounding improvements, and any ancillary improvements thereof, for the area generally described as Underground Utility Assessment District No. 120-2, (Santa Ana Avenue, Cliff Drive, the alley east of Cliff Drive, La Jolla Lane & La Jolla Drive), describe the general nature, location and extent of the improvements for this Assessment District are referenced herein and incorporated as if attached and a part of this Report. A preliminary layout of the improvements is shown on the assessment diagram. Final plans and specifications will be prepared by the City in conjunction with the utility companies and will be on file in the office of the Superintendent of Streets when completed. Harris & Associates 19-27 City of Newport Beach December 16, 2021 Underground Utility Assessment District No. 120-2 (Santa Ana Avenue Cliff Drive, La Jolla Lane, La Jolla Drive & Alley) Final Engineer's Report Page 5 Part II Cost Estimate FINANCIAL COSTS Bond Reserve Capitalized Interest - 5.0% for 6 Months Subtotal & Financial Costs TOTAL AMOUNT TO ASSESSMENT 5.0% $131,000.00 $131,000.00 1.3% $33,000.00 $33,000.00 6.3% $164,000.00 $164,000.00 $2,625,000.00 $2,620,250.00 Notes: ' Southern California Edison Utility Engineering & Construction Cost includes a credit for the salvage of the existing overhead utility system. 2 Contingency decreased by $4,750.00 to account for the reduction in assessment for 202 La Jolla Lane while not increasing otherparcel's assessments. Harris & Associates 19-28 CALCULATION Preliminary Estimate Final Estimate Length in ft. Cost per ft. Utility Engineering & Construction Southern California Edison' 3,000 $50 $150,000.00 $150,000.00 AT&T 3,000 $30 $90,000.00 $90,000.00 Civil Utility Construction Cost 3,000 $544 $1,632,900.00 $1,632,900.00 $1,872,900.00 $1,872,900.00 Contingency 15.0% $281,000.00 $276,250.00 TOTAL CONSTRUCTION $2,153,900.00 $2,149,150.00 INCIDENTIAL EXPENSES: Assessment Engineering $100,000.00 $100,000.00 Contract Inspection $50,000.00 $50,000.00 City Administration $40,000.00 $40,000.00 Financial Advisor $25,000.00 $25,000.00 Bond and Disclosure Counsel $50,000.00 $50,000.00 Placement Agent and Purchaser Counsel $25,000.00 $25,000.00 Special Tax Consultant $6,000.00 $6,000.00 Fiscal Agent $4,500.00 $4,500.00 Printing, Advertising, Notices $3,500.00 $3,500.00 Miscellaneous $3,100.00 $3,100.00 Subtotal Incidental Expenses $307,100.00 $307,100.00 Construction $2,153,900.00 $2,149,150.00 Subtotal Incidental & Construction $2,461,000.00 $2,456,250.00 FINANCIAL COSTS Bond Reserve Capitalized Interest - 5.0% for 6 Months Subtotal & Financial Costs TOTAL AMOUNT TO ASSESSMENT 5.0% $131,000.00 $131,000.00 1.3% $33,000.00 $33,000.00 6.3% $164,000.00 $164,000.00 $2,625,000.00 $2,620,250.00 Notes: ' Southern California Edison Utility Engineering & Construction Cost includes a credit for the salvage of the existing overhead utility system. 2 Contingency decreased by $4,750.00 to account for the reduction in assessment for 202 La Jolla Lane while not increasing otherparcel's assessments. Harris & Associates 19-28 City of Newport Beach December 16, 2021 Underground Utility Assessment District No. 120-2 (Santa Ana Avenue Cliff Drive, La Jolla Lane, La Jolla Drive & Alley) Final Engineer's Report Paqe 6 Part III Assessment Roll and Method of Assessment Spread WHEREAS, on November 16, 2021 the City Council of the CITY OF NEWPORT BEACH, State of California, did, pursuant to the provisions of the 1913 Act "Municipal Improvement Act of 1913", being Division 12 of the Streets and Highways Code, of the State of California, adopt its Resolution of Intention No. 2021-111, for the installation and construction of certain public improvements, together with appurtenances and appurtenant work in connection therewith, in a special assessment district known and designated as ASSESSMENT DISTRICT NO. 120-2 (hereinafter referred to as the "Assessment District"); and WHEREAS, said Resolution of Intention, as required by law, did direct the Engineer of Work to make and file a "Report", consisting of the following as required by Section 10204 of the Act: a. Plans and Specifications; b. A general description of works or appliances already installed and any other property necessary or convenient for the operation of the improvement, if the works, appliances, or property are to be acquired as part of the improvement; c. Cost Estimates; d. Assessment Diagram showing the Assessment District and the subdivisions of land therein; e. A proposed assessment of the costs and expenses of the works of improvement levied upon the parcels within the boundaries of the Assessment District; f. The proposed maximum annual assessment to be levied upon each subdivision or parcel of land within the Assessment District to pay the costs incurred by the City and not otherwise reimbursed resulting from the administration and collection of assessments or from the administration and registration of any associated bonds and reserve or other related funds. For particulars, reference is made to the Resolution of Intention as previously adopted. WHEREAS, the Council has on November 16, 2021, adopted Resolution No. 2021-112 (the "Resolution Preliminarily Approving the Engineer's Report"), which preliminarily approved the Engineer's Report and fixed Tuesday, January 11, 2022 at 7 p.m., in the City Council Chambers, as the time and place of hearing protests and obligations to the Assessment District as proposed (the "Public Hearing"), including the Improvements and assessments included in the Engineer's Report, and to receive and count the ballots for and against the proposed assessment to be levied; and WHEREAS, after the adoption of the Resolution No. 2021-112 Preliminarily Approving Engineer's Report, the Engineer of Work determined that certain changes were required to the Engineer's Report, and accordingly, a revision to the Engineer's Report has been prepared (the "Final Engineer's Report") which reduces Assessment No. 24 (APN 425-383-01, 202 La Jolla Lane) to account for a reduced buildable square footage. The project contingency has been reduced in order to avoid an increase to the assessments on the other parcels within the District. For particulars, reference is made to the Resolution No. 2021-112 as previously adopted. Harris & Associates 19-29 City of Newport Beach December 16, 2021 Underground Utility Assessment District No. 120-2 (Santa Ana Avenue Cliff Drive, La Jolla Lane, La Jolla Drive & Alley) Final Engineer's Report Paqe 7 NOW, THEREFORE, I, Alison M. Bouley, P.E., the authorized representative of HARRIS & ASSOCIATES, pursuant to Article XIIID of the California Constitution and the "Municipal Improvement Act of 1913", do hereby submit the following: 1. Pursuant to the provisions of law and the Resolution of Intention, I have assessed the costs and expenses of the works of improvement to be performed in the Assessment District upon the parcels of land in the Assessment District specially benefited thereby in direct proportion and relation to the special benefits to be received by each of said parcels. For particulars as to the identification of said parcels, reference is made to the Assessment Diagram, a copy of which is attached hereto and incorporated herein. 2. As required by law, a Diagram is hereto attached, showing the Assessment District, as well as the boundaries and dimensions of the respective parcels and subdivisions of land within said District as the same existed at the time of the passage of said Resolution of Intention, each of which subdivisions of land or parcels or lots respectively have been given a separate number upon said Diagram and in said Assessment Roll. 3. The subdivisions and parcels of land the numbers therein as shown on the respective Assessment Diagram as attached hereto correspond with the numbers as appearing on the Assessment Roll as contained herein. 4. NOTICE IS HEREBY GIVEN that bonds will be issued in accordance with Division 10 of the Streets and Highways Code of the State of California (the "Improvement Bond Act of 1915"), to represent all unpaid assessments, which bonds shall be issued in one or more series, each with a term not to exceed the legal maximum term as authorized by law, THIRTY-NINE (39) YEARS from the 2nd day of September next succeeding twelve (12) months from their date. Said bonds shall bear interest at a rate not to exceed the current legal maximum rate of 12% per annum. 5. By virtue of the authority contained in said "Municipal Improvement Act of 1913", and by further direction and order of the legislative body, I hereby recommend the following Assessment to cover the costs and expenses of the works of improvement for the Assessment District based on the costs and expenses as set forth below: 'Contingency decreased by $4,750.00 to account for the reduction in assessment for 202 La Jolla Lane while not increasing other parcel's assessments. For particulars as to the individual assessments and their descriptions, reference is made to Table 1 (Assessment Roll) attached hereto. Harris & Associates 19-30 As Preliminarily Approved As As Revised Confirmed Estimated Cost of Design and Construction:' $2,153,900.00 $2,149,150.00 Estimated Incidental Expenses: $307,100.00 $307,100.00 Estimated Financial Costs: $164,000.00 $164,000.00 Estimated Total to Assessment: $2,625,000.00 $2,620,250.00 $0.00 'Contingency decreased by $4,750.00 to account for the reduction in assessment for 202 La Jolla Lane while not increasing other parcel's assessments. For particulars as to the individual assessments and their descriptions, reference is made to Table 1 (Assessment Roll) attached hereto. Harris & Associates 19-30 City of Newport Beach December 16, 2021 Underground Utility Assessment District No. 120-2 (Santa Ana Avenue Cliff Drive, La Jolla Lane, La Jolla Drive & Alley) Final Engineer's Report Page 8 6. The Method of Spread of Assessment is as set forth in the exhibit identified as Part III (Exhibit 1), which is attached hereto, referenced and so incorporated. Harris & Associates 19-31 City of Newport Beach December 16, 2021 Underground Utility Assessment District No. 120-2 (Santa Ana Avenue Cliff Drive, La Jolla Lane, La Jolla Drive & Alley) Final Engineer's Report Paqe 9 Table 1 Assessment Roll * Parcel has a Total Value of $87,149. It was determined that this Total Value does not accurately represent the True Total Value of the parcel. This is likely due to the last date of sale of the property or the fact that the owner transferred their Proposition 13 base year. Therefore, Total True Value was estimated by taking the average assessed improvement value of Assessment Nos. 14-16 & 18 and adding the average land value of Nos. 14-16 & 18 which are similar in size and location and deemed to be a fair representation of Assessment No. 17. ** Parcel has a Total Value of $113,787. It was determined that this Total Value does not accurately represent the True Total Value of the parcel. This is likely due to the last date of sale of the property or the fact that the owner transferred their Proposition 13 base year. Therefore, Total True Value was estimated by taking the average assessed improvement value of Assessment Nos. 29-30 & adding the average land value of Assessment Nos. 29-30 which are similar in size and location and deemed to be a fair representation of Assessment No. 28. Harris & Associates 19-32 Assessor's Assessments as Assessments Asmnt Parcel Existing Preliminarily Assessments as as Confirmed No. Number Total True Value Liens Approved Revised and Recorded Value to Lien Ratio 1 049-110-01 $ 793,649.00 $ $ 36,821.60 $ 36,821.60 $ 22 2 425-383-19 $ 1,850,259.00 $ $ 69,090.48 $ 69,090.48 $ 27 3 425-383-18 $ 1, 421, 072.00 $ $ 66,189.95 $ 66,189.95 $ 21 4 425-383-17 $ 878,351.00 $ $ 66,326.92 $ 66,326.92 $ 13 5 425-383-16 $ 1,746,727.00 $ $ 65,625.96 $ 65,625.96 $ 27 6 425-383-15 $ 1,011,217.00 $ $ 67,452.22 $ 67,452.22 $ 15 7 425-383-14 $ 1,082,672.00 $ $ 67,589.19 $ 67,589.19 $ 16 8 425-383-13 $ 1,716,660.00 $ $ 67,589.19 $ 67,589.19 $ 25 9 425-383-12 $ 1,683,000.00 $ $ 67,586.51 $ 67,586.51 $ 25 10 425-383-20 $ 1,624,937.00 $ $ 67,589.19 $ 67,589.19 $ 24 11 425-383-21 $ 2,263,970.00 $ $ 67,586.51 $ 67,586.51 $_ - 33 12 425-383-10 $ 2,300,000.00 $ $ _ 67,589.19 _ $ 67,589.19 _ $ _ 34 13 425-383-09 $ 706,607.00 $ $ 67,589.19 $ 67,589.19 $ 10 14 049-101-05 $ 1,329,468.00 $ $ 72,689.28 $ 72,689.28 $ 18 15 049-101-06 $ 843,908.00 $ $ 73,025.00 $ 73,025.00 $ 12 16 049-101-07 $ 3,282,627.00 $ $ 73,025.00 $ 73,025.00 $ 45 17* 049-101-08 $ 1,706,677.75 $ $ 73,025.00 $ 73,025.00 $ 23 18 049-101-09 $ 1,370,708.00 $ $ 73,025.00 $ 73,025.00 $ 19 19 049-102-04 $ 1,694,041.00 $ $ 45,010.23 $ 45,010.23 $ 38 20 049-103-08 $ 1,577,547.00 $ $ 66,901.17 $ 66,901.17 $ 24 21 049-103-03 $ 1,274,135.00 $ $ 65,657.70 $ 65,657.70 $ 19 22 049-103-02 $ 2,245,731.00 $ $ 111,418.95 $ 111,418.95 $ 20 23 049-103-01 $ 3,246,239.00 $ $ 162,950.01 $ 162,950.01 $ 20 24 425-383-01 $ 1,182,280.00 $ $ 50,250.00 $ 45,500.00 $ 24 25 425-383-02 $ 575,030.00 $ $ 48,235.74 $ 48,235.74 $ 12 26 425-383-03 $ 1, 892, 664.00 $ $ 49,178.41 $ 49,178.41 $ 38 27 425-383-04 $ 1, 587, 081.00 $ $ 49,178.41 $ 49,178.41 $ 32 28** 425-383-05 $ 1,096,232.00 $ $ 49,178.41 $ 49,178.41 $ 22 29 425-383-06 $ 1,166,731.00 $ $ 46,490.05 $ 46,490.05 $ 25 30 425-383-07 $ 1, 025, 733.00 $ $ 49,178.41 $ 49,178.41 $ 21 31 425-383-08 $ 956, 033.00 $ $ 49,178.41 $ 49,178.41 $ 19 32 425-382-39 $ 452,535.00 $ $ 27,616.21 $ 27,616.21 $ 16 33 425-382-38 $ 641,003.00 $ $ 27,616.21 $ 27,616.21 $ 23 34 425-382-37 $ 1,119, 772.00 $ $ 47, 564.32 $ 47, 564.32 $ 24 35 425-382-36 $ 546,840.00 $ $ 47,564.32 $ 47,564.32 $ 11 36 425-382-35 $ 695, 796.00 $ $ 47, 564.32 $ 47, 564.32 $ 15 37 425-382-34 $ 680, 897.00 $ $ 48, 582.19 $ 48, 582.19 $ 14 38 425-382-33 $ 645,061.00 $ $ 48,504.30 $ 48,504.30 $ 13 39 425-382-32 $ 930,941.00 $ $ 48,370.02 $ 48,370.02 $ 19 40 425-382-31 $ 1,672,634.00 $ $ 43,526.56 $ 43,526.56 $ 38 41 425-382-30 $ 993,468.00 $ $ 48,169.44 $ 48,169.44 $ 21 42 425-382-29 $ 1,107,489.00 $ $ 48,169.44 $ 48,169.44 $ 23 43 049-101-04 $ 1, 502, 688.00 $ $ 53, 550.89 $ 53, 550.89 $ 28 - 44 049-101-10 - - $ - 1,290,132.00 - - $ - $ 35,980.50 - - $ 35,980.50 - - - $- - - 36 - - Total $ 59,411,242.75 $ - - $ 2,625,000.00 $ 2,620,250.00 $ * Parcel has a Total Value of $87,149. It was determined that this Total Value does not accurately represent the True Total Value of the parcel. This is likely due to the last date of sale of the property or the fact that the owner transferred their Proposition 13 base year. Therefore, Total True Value was estimated by taking the average assessed improvement value of Assessment Nos. 14-16 & 18 and adding the average land value of Nos. 14-16 & 18 which are similar in size and location and deemed to be a fair representation of Assessment No. 17. ** Parcel has a Total Value of $113,787. It was determined that this Total Value does not accurately represent the True Total Value of the parcel. This is likely due to the last date of sale of the property or the fact that the owner transferred their Proposition 13 base year. Therefore, Total True Value was estimated by taking the average assessed improvement value of Assessment Nos. 29-30 & adding the average land value of Assessment Nos. 29-30 which are similar in size and location and deemed to be a fair representation of Assessment No. 28. Harris & Associates 19-32 City of Newport Beach December 16, 2021 Underground Utility Assessment District No. 120-2 (Santa Ana Avenue Cliff Drive, La Jolla Lane, La Jolla Drive & Alley) Final Enqineer's Report Page 10 Table 2 Debt Limit Valuation A. ESTIMATED BALANCE TO ASSESSMENT $2,620,250 B. UNPAID SPECIAL ASSESSMENTS $0 TOTAL A & B $2,620,250 C. TRUE VALUE OF PARCELS $59,411,243 ** AVERAGE VALUE TO LIEN RATIO 23:1 * * True Value of Parcels means the total value of the land and improvements as estimated and shown on the last equalized roll of the County or as otherwise reasonably calculated. This report does not represent a recommendation of parcel value, economic viability or financial feasibility, as that is not the responsibility of the Assessment Engineer. CERTIFICATION I, the undersigned Assessment Engineer, do hereby certify that (i) the total amount of the principal sum of the special assessments proposed to be levied, together with the principal amount of previously levied special assessments, as set forth above, do not exceed one-half (1/2) the total true value of the parcels proposed to be assessed, and (ii) the amount proposed to be assessed upon any parcel does not exceed one-half of the true value of the parcel. EXECUTED on December 16, 2021. HARRIS & ASSOCIATES ALISON M. BOULEY, P.E. R.C.E. NO. C61383 ASSESSMENT ENGINEER CITY OF NEWPORT BEACH COUNTY OF ORANGE, STATE OF CALIFORNIA Harris & Associates 19-33 City of Newport Beach December 16, 2021 Underground Utility Assessment District No. 120-2 (Santa Ana Avenue Cliff Drive, La Jolla Lane, La Jolla Drive & Alley) Final Enqineer's Report Page 11 Exhibit 1 Method and Formula of Assessment Spread Since the improvements are to be funded by the levying of assessments, the "Municipal Improvement Act of 1913" and Article XIIID of the State Constitution require that assessments must be based on the special benefit that the properties receive from the works of improvement. In addition, Section 4 of Article XIIID of the State Constitution requires that a parcel's assessment may not exceed the reasonable cost of the proportional special benefit conferred on that parcel. Section 4 provides that only special benefits are assessable and the local agency levying the assessment must separate the general benefits from the special benefits. It also provides that parcels within a district that are owned or used by any public agency, the State of California, or the United States shall not be exempt from assessment unless the agency can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit. Neither the Act nor the State Constitution specifies the method or formula that should be used to apportion the costs to properties in any special assessment district proceedings. The responsibility for recommending an apportionment of the costs to properties which specially benefit from the improvements rests with the Assessment Engineer, who is appointed for the purpose of making an analysis of the facts and determining the correct apportionment of the assessment obligation. In order to apportion the assessments to each parcel in direct proportion with the special benefit which it will receive from the improvements, an analysis has been completed and is used as the basis for apportioning costs to each property within the Assessment District. Based upon an analysis of the special benefit to be received by each parcel from the construction of the works of improvement, the Assessment Engineer recommends the apportionment of costs as outlined below. The final authority and action rests with the City Council after hearing all testimony and evidence presented at a public hearing, and tabulating the assessment ballots previously mailed to all record owners of property within the Assessment District. Upon the conclusion of the public hearing, the City Council must make the final determination whether or not the assessment spread has been made in direct proportion to the special benefits received by each parcel within the Assessment District. Ballot tabulation will be done at that time and, if a majority of the returned ballots weighted by assessment amount are not in opposition to the Assessment District, the City Council may form the Assessment District. The following sections set forth the methodology used to apportion the costs of the improvements to each parcel. SEPARATION OF GENERAL AND SPECIAL BENEFITS Under Article XIIID, only special benefits may be assessed, and it is the responsibility of the Assessment Engineer to identify, quantify, and exclude general benefits from the assessment that is apportioned to parcels in proportion to the special benefit they will receive from the improvements. As stated in the "Proposition 218 Guide for Special Districts" prepared by the California Special Districts Association, the requirement that a public agency separate the general benefits from the special benefits helps ensure that the special benefit requirement is met. As defined in Article XIIID, "special benefit" means a particular and distinct benefit over and above general benefits conferred on real property located in the district or to the public at large. Harris & Associates 19-34 City of Newport Beach December 16, 2021 Underground Utility Assessment District No. 120-2 (Santa Ana Avenue Cliff Drive, La Jolla Lane, La Jolla Drive & Alley) Final Engineer's Report Page 12 The benefits associated with the undergrounding of overhead utilities are related to increased reliability, improved neighborhood aesthetics, enhanced safety, and the removal of obstructions to views of Newport Harbor and or the Pacific Ocean. The specific location and nature of the undergrounding project will determine if the benefits are a "general benefit" or provide a "special benefit" to parcels within the Assessment District, or a combination of both. GENERAL BENEFIT In this particular assessment district, the streets along which the existing overhead utility facilities are being undergrounded function as local and collector streets. None of the roadways are designated as an arterial, a major arterial or a scenic corridor in the Transportation Element of the City's General Plan. Furthermore, the City has an established network of arterial streets which appear to function as intended to provide for the movement of traffic around and through the community at large without the need to utilize local collector streets for such purposes. Under these circumstances, any use of the streets within the Assessment District as "through" streets is incidental. With the exception of certain properties (Assessment Numbers 1), the properties situated within the Assessment District are used as residential. Under this circumstance, the impacts, both visual and safety, are largely isolated to those properties (and the persons who inhabit them) which front on these local streets and alleys, with only incidental impacts on those who visit homes within the Assessment District or who pass through the Assessment District on trips originating outside the boundary or have a destination outside the boundary. Based on these facts and circumstances, any general benefits to the property within the Assessment District in general, to the surrounding community, and to the public at large from the project of undergrounding these local overhead utility facilities on the local streets and alleys, such as to the general public visiting in cars, on bikes or on foot, are incidental and do not exceed five percent (5%) of the estimated project costs. This general benefit portion of the cost is more than offset by the estimated 20 percent (20%) utility company contribution which is accounted for in the Southern California Edison Utility Engineering and Construction unit cost as shown in Part II. Therefore, the remainder of the project design and construction costs represents the local and special benefits to the parcels within the Assessment District. Because only the net amount of $2,625,000 is apportioned to the parcels within the District, no parcel is assessed more than its proportional share of the special benefits from the improvements. SPECIAL BENEFITS While the courts have found that a general enhancement of property value does not constitute "special benefit" (Silicon Valley Taxpayers' Assn v. Santa Clara Cnty. Open Space Authority) if an assessment district is narrowly drawn so that parcels that benefit in a way that is particular and distinct from parcels outside of the district or the public at large, they are deemed to receive a special benefit. Specifically, the undergrounding of existing overhead utilities adjacent to parcels on the streets which provide ingress/egress to each parcel provides a particular and distinct benefit to those parcels that is not realized by other parcels or to the public at large. The courts have found that the characterization of a benefit (special vs. general) may depend on whether parcels within a district receive a direct advantage from the improvement based upon their proximity to the improvement, or receive an "indirect, derivative advantage resulting from the overall public benefits of the improvement" (e.g., general enhancement of the district's property values). Harris & Associates 19-35 City of Newport Beach December 16, 2021 Underground Utility Assessment District No. 120-2 (Santa Ana Avenue Cliff Drive, La Jolla Lane, La Jolla Drive & Alley) Final Engineer's Report Page 13 The purpose of this Assessment District is to provide the financing to underground existing overhead electrical, telephone and cable facilities as well as rehabilitate the affected portions of streets and alleys within the District. These facilities are the direct source of service to the properties within the Assessment District. The proposed replacement of existing overhead utility facilities (power, telephone and cable facilities) with underground facilities and removal of the existing utility poles and overhead wires will provide a special benefit to the parcels connected to, adjacent to or in near proximity of the facilities as follows: ■ Improved Aesthetics Benefit. This benefit relates to the improved aesthetics of the streetscape due to the removal of overhead wires and utility poles. For the purposes of this report, a street is defined as either a street or alley. The removal of guy wires and other support structures related to the overhead facilities are included in the definition of improved aesthetics. Properties that are directly adjacent to or have frontage facing overhead facilities receive an aesthetic benefit. There is a direct correlation between the size of the parcel and the extent to which a property may develop and thus the Improved Aesthetic Benefit a parcel receives from the undergrounding of adjacent utilities is proportional to the size of the parcel. ■ Additional Safety Benefit. This benefit relates to the additional safety of having the overhead distribution wires placed underground and having the power poles removed, which eliminates the threat of downed utility lines and poles due to wind, rain and other unforeseeable events. Falling facilities can lead to personal injuries and damage to structures, including fire. Access by emergency vehicles can also be blocked by downed power lines. Properties that have a frontage along which the existing overhead utilities will be removed and have existing overhead utilities that will be removed along the properties primary ingress/egress route receive a safety benefit. This benefit is equal for all parcels receiving this benefit because all parcels fronting the existing overhead utilities are equally at risk of being damaged by falling overhead utilities and having their primary ingress/egress route blocked. Therefore the Additional Safety Benefit is based on the average parcel area within the Assessment District boundary. ■ Connection Benefit. This benefit relates to the enhanced reliability of service from the utilities being underground, due to having all new wires and equipment and having that equipment underground, which reduces the threat of service interruption from downed lines. When compared to overhead systems, fewer outages occur due to various acts of nature, traffic collisions and obstructions (such as trees). Properties that are connected to the facilities proposed to be undergrounded receive a connection benefit. This benefit is equal for all parcels receiving this benefit that have a singular connection. As such the benefit is based on the average parcel area within the assessment district boundary. Parcels with more than one separate connection receive an increased benefit calculated by multiplying the number of connections by the average parcel area within the assessment district boundary. ■ View Enhancement Benefit. This benefit relates to the enhanced view as a direct result of the utilities being underground. Properties that receive a view benefit face Newport Harbor and/or the Pacific Ocean and are located along, or have a view down, Santa Ana Avenue, La Jolla Drive or La Jolla Lane. Each parcel that has poles or overhead lines that impede their view of Newport Harbor and/or the Pacific Ocean and that are being undergrounded as part of this district, benefit equally from the undergrounding of the lines. Therefore this benefit is based on the average parcel area within the Assessment District boundary. Harris & Associates 19-36 City of Newport Beach December 16, 2021 Underground Utility Assessment District No. 120-2 (Santa Ana Avenue Cliff Drive, La Jolla Lane, La Jolla Drive & Alley) Final Engineer's Report Page 14 By virtue of such special benefits, the proposed improvements will provide a higher level of service, increase the desirability of the properties, and will specifically enhance the values of the properties within the Assessment District. Therefore, the proposed improvements are of direct and special benefit to these properties. Harris & Associates 19-37 City of Newport Beach December 16, 2021 Underground Utility Assessment District No. 120-2 (Santa Ana Avenue Cliff Drive, La Jolla Lane, La Jolla Drive & Alley) Final Enqineer's Report Page 15 1111911 11 l[I 1 110ZWA Based upon the findings described above, the special benefit received by the properties within the boundaries of the Assessment District is the conversion from an overhead to an underground utility system resulting in additional safety, enhanced reliability, view enhancements and improved aesthetics to the adjacent properties. Based on these conditions, it is our conclusion that the improvements specially benefit all assessed properties in the Assessment District. To establish the benefit to the individual parcels within the Assessment District, the highest and best use of each property is considered. For example, a vacant property is considered developed to its highest potential and connected to the system. The more a property is developed, the more it benefits from the proposed improvements. Most of properties within this Assessment District are zoned residential and some have one or two dwelling units on them. There is a direct correlation between the size of a property and the extent to which a property may develop. Because parcel size is one of the main limiting factors for what can be built on a property, or the extent the property is developed, the size of each parcel is used as the base unit for measuring benefit. Consideration was given to reducing the amount of area assigned to parcels based upon the building setbacks applicable to each parcel. Due to the combined factors of (a) significant variations in the setback requirements, including front, side and rear setbacks, (b) availability of future variances from currently applicable setback requirements as well as existing variances already in place, and (c) significant variations in the ratios between building size and lot size, it was concluded that adjustments to parcel areas on account of setback requirements would not improve upon the assessment methodology. Accordingly, no reductions have been made to parcel area based upon applicable setback requirements or the existence of easements within those setbacks. The special benefits from the undergrounding of overhead utilities are categorized into the four (4) distinct benefits identified above. All parcels within the District receive a combination of the identified benefits below, a majority of the parcels receive 3 of 4 benefits. Parcels are assigned one (1) Benefit Factor for each of the four respective criterion based on whether or not they receive a special benefit in that criterion with the exception of any adjustments as described in the Parcel Benefit Assignment section below. For the Improved Aesthetics Benefit, each parcel is considered to receive an Aesthetics Benefit Factor of one (1) if the parcel is directly adjacent to or has frontage facing the existing overhead utilities which will be removed and undergrounded as part of this project. The parcels Aesthetics Benefit Factor is multiplied by the parcels area to determine the "Aesthetics Benefit Area". For the "Additional Safety Benefit", each parcel is considered to receive one (1) Safety Benefit Factor if the parcel has a frontage along which the existing overhead utilities will be removed and have existing overhead utilities that will be removed along the properties primary ingress/egress route. The parcels Safety Benefit Factor is multiplied by the average parcel size within the District, 6,855 square feet, to determine the "Safety Benefit Area". Harris & Associates 19-38 City of Newport Beach December 16, 2021 Underground Utility Assessment District No. 120-2 (Santa Ana Avenue Cliff Drive, La Jolla Lane, La Jolla Drive & Alley) Final Engineer's Report Page 16 For the Connection Benefit, each parcel is assigned one (1) Connection Benefit Factor if the parcel will connect to the underground system constructed as a result of this project. The parcels Connection Benefit Factor is multiplied by the average parcel area within the District, 6,855 square feet, to determine "Connection Benefit Area". For the View Enhancement Benefit, each parcel is assigned one (1) View Enhancement Benefit Factor if the parcel has a view of Newport Harbor and or the Pacific Ocean along, or looking down, Santa Ana Avenue La Jolla Drive, or La Jolla Lane that will be enhanced by the removal of the existing overhead utilities as part of this project. The parcels View Enhancement Benefit Factor is multiplied by the average parcel area within the District, 6,855 square feet, to determine "View Enhancement Benefit Area". The Assessed Benefit Area per parcel is equal to the Aesthetics Benefit Area plus the Safety Benefit Area plus the Connection Benefit Area plus the View Enhancement Benefit, divided by 4. See Appendix A for the assessment calculations for each parcel within the District. Parcel Benefit Assignment The following are the specific benefit assignment to parcels within the District as defined in the above methodology. All exceptions to the methodology are described herein. Assessment No. 1. This property is deemed to receive no Improved Aesthetic Benefit or View Enhancement Benefit from the undergrounding project, as the utility lines to be undergrounded are at the rear of the parcel.. The property is considered to receive a full Additional Safety Benefit and Connection Benefit from the undergrounding project. Assessment No. 1 was assigned a reduced Additional Safety Benefit under AD -120 to account for the fact that the parcels primary ingress/egress point was along Coast Highway and would not impede access to the parcel in the event of downed power lines. However upon further analysis, the poles and lines along the east side of the parcel could potentially limit ingress/egress to portions of the parcel and would delay emergency responders who will not cross a downed utility line until it is deenergized.. 2. Assessment Nos. 2-18: These properties are considered to receive full Improved Aesthetics, Additional Safety, Connection Benefit, and View Enhancement Benefits from the undergrounding proj ect. 3. Assessment No. 19: This property is deemed to receive no View Enhancement Benefit from the undergrounding project and receives a reduced Improved Aesthetics Benefit of approximately 50 percent as this parcel will have overhead lines remaining along one of its frontages. The property receives no View Enhancement Benefit as this parcel does not have a view of Newport Harbor or the Pacific Ocean that will be enhanced by the removal of the existing overhead utilities included in the undergrounding project. While this parcel has a pole remaining along its frontage it is deemed to receive a full safety benefit as the remaining overhead utilities are telecommunication lines and are not power transmission lines. This property is considered to receive a full Connection Benefit. Assessment No. 19 was not assigned a Connection under AD -120 as it was believed the electrical meter was at the rear of the parcel. However upon further analysis, the electrical meter is at the front of the parcel and will connect to the undergrounded system. 4. Assessment Nos. 20-22, 24-31, 34-39 and 41-43: These properties are deemed to receive no View Enhancement Benefit from the undergrounding project. The properties receive no View Harris & Associates 19-39 City of Newport Beach December 16, 2021 Underground Utility Assessment District No. 120-2 (Santa Ana Avenue Cliff Drive, La Jolla Lane, La Jolla Drive & Alley) Final Enqineer's Report Page 17 Enhancement Benefit as these parcels do not have a view of Newport Bay or the Pacific Ocean that will be enhanced by the removal of the existing overhead utilities included in the undergrounding project. The properties are considered to receive full Improved Aesthetics, Connection Benefit and Additional Safety Benefits from the undergrounding project. Assessment Nos. 21 and 22 were assigned a reduced Improved Aesthetics Benefit under AD -120 due to the potential of a portion of the lot being undevelopable. However upon further analysis, there are no restrictions on these properties in the City's Municipal Code and property owners could elect to construct improvements on the previously reduced area of the parcels and as such, the parcel area reduction has been removed. 5. Assessment No. 23: This property is deemed to receive an increased Connection Benefit from this undergrounding project. This property receives an increased connection benefit of approximately 100 percent as the property has a separate connection for each of the dwelling units on the property. The property is considered to receive full Improved Aesthetics Benefit, Additional Safety and View Enhancement Benefits from the undergrounding project. Assessment No. 23 was assigned a reduced Improved Aesthetics Benefit under AD -120 due to the potential of being a cliffside property. However upon further analysis, there are no restrictions on this property in the City's Municipal Code and property owners could elect to construct improvements on the previously reduced area of the parcels and as such the parcel area reduction has been removed. 6. Assessment No. 32 and 33: These properties are deemed to receive no Improved Aesthetics Benefit and View Enhancement Benefit as these parcels do not have any existing overhead utilities directly adjacent to or along its frontage and does not have a view of Newport Harbor or the Pacific Ocean that will be enhanced by the removal of the existing overhead utilities included in the undergrounding project. In addition to not receiving an Improved Aesthetics Benefit or View Enhancement Benefit, these properties are deemed to receive a 50 percent reduction in Additional Safety Benefits as the properties are not at risk of being damaged by falling overhead utilities but benefit from the removal of obstructions to emergency responders along the primary ingress and egress point. The properties are considered to receive full Connection Benefits from the undergrounding project. 7. Assessment No. 40: This property is deemed to receive no View Enhancement Benefit and a reduced Additional Safety Benefit from this undergrounding project. This property receives a 50 percent reduction in Additional Safety Benefit as the property is not at risk of being damaged by falling overhead utilities but benefits from the removal of obstructions to emergency responders along the primary ingress and egress point. The property receives no View Enhancement Benefit as the parcel do not have a view of Newport Harbor or the Pacific Ocean that will be enhanced by the removal of the existing overhead utilities included in the undergrounding project. The property is considered to receive full Improved Aesthetics Benefit and Connection Benefit from the undergrounding project. 8. Assessment No. 44: This property is deemed to receive no View Enhancement Benefit from the undergrounding project and receive a reduced Improved Aesthetics Benefit and Additional Safety Benefit of approximately 50 percent as these this parcels will have overhead lines remaining along one of their it's frontages. The properties property receives no View Enhancement Benefit as these this parcels does not have a view of Newport Harbor or the Pacific Ocean that will be enhanced by the removal of the existing overhead utilities included in the undergrounding project. The Harris & Associates 19-40 City of Newport Beach December 16, 2021 Underground Utility Assessment District No. 120-2 (Santa Ana Avenue Cliff Drive, La Jolla Lane, La Jolla Drive & Alley) Final Engineer's Report Page 18 properties property are is considered to receive a full Connection Benefit from the undergrounding proj ect. REVISIONS The following revisions are made to this report after it was preliminary approved on November 16, 2021. 1. Assessment No. 24: This property was thought to have a buildable square footage of 5,000 square feet per the County's secured tax roll. It has since been determined through a review of the parcel map that the parcel's actual buildable square footage is approximately 3,200 square feet. This reduction in buildable square footage results in a decreased total assessment but does not change the benefits received by the parcel. It has been determined that this property' s assessment will be reduced by $4,750.00 due to this correction and the project's planned contingency funds will be reduced by a like amount. The project contingency has been reduced in order to avoid an increase to the assessments on the other parcels within the District. ASSESSMENT APPORTIONMENT Each parcel will be apportioned its fair share of the construction costs based on the Assessed Benefit Area calculated for each property. Incidental Expenses and Financial Costs have been assessed to the entire Assessment District on a prorata basis relative to the total construction cost allocations. Harris & Associates 19-41 City of Newport Beach December 16, 2021 Underground Utility Assessment District No. 120-2 (Santa Ana Avenue Cliff Drive, La Jolla Lane, La Jolla Drive & Alley) Final Engineer's Report Page 19 The individual assessment calculations are provided in Appendix A. For particulars to the Assessment Roll, reference is made to Table 1 in Part III of this report. In conclusion, it is my opinion that the assessments for the referenced Assessment District have been spread in direct accordance with the special benefits that each parcel receives from the works of improvement. DATED: December 16, 2022 HARRIS & ASSOCIATES OFESS1�V W&I-11— "N M. '90& ALISON M. BOULE , P.E. qr m R.C.E. No. C61383 NO. C61383 � ASSESSMENT ENGINEER * * CITY OF NEWPORT BEACH s� crvIk- t*`� COUNTY OF ORANGE, STATE OF CALIFORNIA OF Harris & Associates 19-42 City of Newport Beach December 16, 2021 Underground Utility Assessment District No. 120-2 (Santa Ana Avenue Cliff Drive, La Jolla Lane, La Jolla Drive & Alley) Final Engineer's Report Page 20 I, , as CITY CLERK of the CITY OF NEWPORT BEACH, CALIFORNIA do hereby certify that the foregoing Assessment, together with the Diagram attached thereto, was filed in my office on the day of , 20. CITY CLERK CITY OF NEWPORT BEACH STATE OF CALIFORNIA I, , as CITY CLERK of the CITY OF NEWPORT BEACH, CALIFORNIA do hereby certify that the foregoing Assessment, together with the Diagram attached thereto, was preliminarily approved by the City Council of the CITY OF NEWPORT BEACH, CALIFORNIA, on the day of , 20_. CITY CLERK CITY OF NEWPORT BEACH STATE OF CALIFORNIA I, , as CITY CLERK of the CITY OF NEWPORT BEACH, CALIFORNIA do hereby certify that the foregoing Assessment, together with the Diagram attached thereto, was approved and confirmed by the City Council of said City on the day of , 20 CITY CLERK CITY OF NEWPORT BEACH STATE OF CALIFORNIA I, , as SUPERINTENDENT OF STREETS of the CITY OF NEWPORT BEACH, CALIFORNIA do hereby certify that the foregoing Assessment, together with the Diagram attached thereto, was recorded in my office on the day of , 2022. SUPERINTENDENT OF STREETS CITY OF NEWPORT BEACH STATE OF CALIFORNIA Harris & Associates 19-43 City of Newport Beach December 16, 2021 Underground Utility Assessment District No. 120-2 (Santa Ana Avenue Cliff Drive, La Jolla Lane, La Jolla Drive & Alley) Final Enqineer's Report Page 21 Part IV Annual Administrative Assessment An amount shall be added to each annual installment of the unpaid assessments to pay costs incurred by the City and not otherwise reimbursed, which result from the administration of the bonds and reserve or other related funds, all as set forth in Section 10312 of the Act. The maximum annual administrative assessment is authorized pursuant to the provisions of Section 10204(f) of the Streets and Highways Code and shall not exceed two -hundred and fifty dollars ($250.00) per parcel per year, subject to an annual increase based on the Consumer Price Index (CPI), during the preceding year ending in January, for all Urban Consumers in the Los Angeles, Riverside, and Orange County Areas. The exact amount of the administration charge will be established each year by the Superintendent of Streets. It should be expressly understood that the annual administrative assessment, as set forth above, is separate from and is in addition to the $16.00 per parcel collection fee which will be added to each annual installment pursuant to Section 8682 of the California Streets and Highways Code, and is further separate from and in addition to specific fees payable to the City in connection with (a) prepayments of assessments by property owners, (b) apportionments of assessments to reflect divisions of parcels and (c) late charges and penalties which become payable in the event of delinquency in the payment of assessment installments by December 10 and April 10 each year. The above fees and assessments (except those for prepayments and apportionments) will be collected in the same manner and in the same installments as the assessment levied to pay for the cost of the works of improvement. Properties that have paid their assessments in full will not be subject to this annual administrative assessment. Harris & Associates 19-44 City of Newport Beach December 16, 2021 Underground Utility Assessment District No. 120-2 (Santa Ana Avenue Cliff Drive, La Jolla Lane, La Jolla Drive & Alley) Final Enqineer's Report Page 22 Part V Diagram of Assessment A reduced copy of the Assessment Diagram is attached hereto. Full-sized copies of the Boundary Map and Assessment Diagram are on file in the Office of the City Clerk, of the City of Newport Beach. As required by the Act, the Assessment Diagram shows the exterior boundaries of the Assessment District and the assessment number assigned to each parcel of land corresponding to its number as it appears in the Assessment Roll contained in Part III Table 1. The Assessor's Parcel Number is also shown for each parcel as they existed at the time of the passage of the Resolution of Intention and reference is hereby made to the Assessor's Parcel Maps of the County of Orange for the boundaries and dimensions of each parcel of land. Harris & Associates 19-45 Ci! of Newport Beach Underground Utility Assessment District No. 120-2 (Santa Ana Avenue ##m&lDmHdNo1&- (SmaAaAenue QRDrive, LJolla L ne,Lu«aDAe&m|ye) Final EmmnmrSReport =k'\ is`� / } )d j§ e\§e2 e ese° z,,mm § LU U) U) cm2Eg § m @g}§ `/( December #,&2 ©i;2;;9ly2m§2§§5,A lAAAA ,aa2lwaw=la®I:)\R\\!®m}2!®!¥!B„ ; NI;9; 1,9 ■■■v■■■■■■■■■■■■■■a■mm■emm■mmmamm�■■mmm�ee�� 2 Harris & Associates 19-46 \. % , { / , rn M A ; ), \ §)§ )V,\§ } §� .1z. � K(§( - \\� \ December #,&2 ©i;2;;9ly2m§2§§5,A lAAAA ,aa2lwaw=la®I:)\R\\!®m}2!®!¥!B„ ; NI;9; 1,9 ■■■v■■■■■■■■■■■■■■a■mm■emm■mmmamm�■■mmm�ee�� 2 Harris & Associates 19-46 City of Newport Beach December 16, 2021 Underground Utility Assessment District No. 120-2 (Santa Ana Avenue Cliff Drive, La Jolla Lane, La Jolla Drive & Alley) Final Enqineer's Report Page 24 Part VI Description of Facilities Section 10100 of the Act provides for the legislative body of any municipality to finance certain capital facilities and services within or along its streets or any public way or easement. The following is a list of proposed improvements as allowed under the Act to be installed, or improved under the provisions of the Act, including the acquisition of required right-of-way and/or property. For the general location of the improvements to be constructed reference is hereby made to the Plans and Specifications described in Part I of this report. The following improvements are proposed to be constructed and installed in the general location referred to as Assessment District No. 120-2. 1. Acquisition of any required easements or rights-of-way. 2. Removal of existing utility poles. 3. Removal of overhead service drops. 4. Construction of mainline underground power, telephone and cable conduit, with appurtenant manholes and pullboxes, and installation of cabling, wiring and other facilities. 5. Construction of service conduit and appurtenances. The improvements will be designed by the Southern California Edison Company, AT&T, and Spectrum. The utility companies will be responsible for inspecting the work for their facilities and the City of Newport Beach will inspect the work to ensure conformance to City standards and specifications where applicable. The City will also construct additional pavement rehabilitation as needed for the project. Once completed, the underground facilities will become the property and responsibility of Southern California Edison Company, AT&T, and Spectrum. Each owner of property located within the Assessment District will be responsible for arranging for and paying for work on his or her property necessary to connect facilities constructed by the public utilities in the public streets and alleys to the points of connection on the private property. Conversion of individual service connections on private property is not included in the work done by the Assessment District. The estimated time for completion of the undergrounding of the utilities is 36 months after the sale of bonds. Property owners will be required to provide necessary underground connections within 120 days of the completion of the underground facilities. Failure to convert individual service connections on private property may result in a recommendation to the City Council that the public utilities be directed to discontinue service to that property pursuant to Section 15.32 of the Municipal Code. Overhead facilities cannot be removed until all overhead service has been discontinued. Harris & Associates 19-47 City of Newport Beach December 16, 2021 Underground Utility Assessment District No. 120-2 (Santa Ana Avenue Cliff Drive, La Jolla Lane, La Jolla Drive & Alley) Final Enqineer's Report Page 25 Right -of -Way Certificate STATE OF CALIFORNIA COUNTY OF ORANGE CITY OF NEWPORT BEACH The undersigned hereby CERTIFIES UNDER PENALTY OF PERJURY that the following is all true and correct. That at all time herein mentioned, the undersigned was, and now is, the authorized representative of the duly appointed SUPERINTENDENT OF STREETS of the CITY OF NEWPORT BEACH, CALIFORNIA. That there have now been instituted proceedings under the provisions of Article XIIID of the California Constitution, and the "Municipal Improvements Act of 1913," being Division 12 of the Streets and Highways Code of the State of California, for the construction of certain public improvements in a special assessment district known and designated as ASSESSMENT DISTRICT NO. 120-2 (hereinafter referred to as the "Assessment District"). THE UNDERSIGNED STATES AND CERTIFIES AS FOLLOWS: All easements or right-of-way necessary for the construction and installation of the public improvements of the Assessment District either have been obtained or are in process of being obtained and will be obtained and in the possession of the affected utility company, the City, the County of Orange or the State of California prior to commencement of the construction and installation of such public improvements. EXECUTED this day of , 2022, at CITY OF NEWPORT BEACH, CALIFORNIA. SUPERINTENDENT OF STREETS CITY OF NEWPORT BEACH STATE OF CALIFORNIA DAVID WEBB, PE Harris & Associates City of Newport Beach December 16, 2021 Underground Utility Assessment District No. 120-2 (Santa Ana Avenue Cliff Drive, La Jolla Lane, La Jolla Drive & Alley) Final Enqineer's Report Page 26 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: That I am the person who authorized to prepare and process all environmental documentation as needed as it relates to the formation of the special Assessment District being formed pursuant to the provisions of the "Municipal Improvement Act of 1913" being Division 12 of the Streets and Highways Code of the State of California, said special Assessment District known and designated as UNDERGROUND UTILITY ASSESSMENT DISTRICT NO. 120-2 (hereinafter referred to as the "Assessment District"). 2. The specific environmental proceedings relating to this Assessment District that have been completed are as follows: CEQA compliance review: The proposed project is Categorically Exempt (Class 2) from the provisions of CEQA (replacement or reconstructions). 3. I do hereby certify that all environmental evaluation proceedings necessary for the formation of the Assessment District have been completed to my satisfaction, and that no further environmental proceedings are necessary. EXECUTED this day of , 2022, at CITY OF NEWPORT BEACH, CALIFORNIA. DAVID WEBB, P.E. CITY OF NEWPORT BEACH STATE OF CALIFORNIA Harris & Associates 19-49 City of Newport Beach December 16, 2021 Underground Utility Assessment District No. 120-2 (Santa Ana Avenue Cliff Drive, La Jolla Lane, La Jolla Drive & Alley Final Engineer's Report Appendix A -Page 1 Appendix A - Assessment Calculations Property Address Asmnt No. Assessor's Parcel Number Adjusted Aesthetics Aesthetics Parcel Parcel Benefit Benefit Size (SF) Size (SF) Factor Area Safety Benefit Factor Safety Benefit Area Connectio Connection n Benefit Benefit Factor Area View Benefit Factor View Benefit Area Assessed Total Benefit Construction Area Costs Incidental Expenses Financial Costs Total Assessment 3334 W COAST HWY 1 049-110-01 31,154 31,154 - - 1 6,855 1 6,855 - - 3,428 $ 30,213.35 $ 4,307.78 $ 2,300.47 $ 36,821.60 201 SANTA ANA AVE 2 425-383-19 5,160 5,160 1 5,160 1 6,855 1 6,855 1 6,855 6,431 $ 56,691.04 $ 8,082.93 $ 4,316.51 $ 69,090.48 209 SANTA ANA AVE 3 425-383-18 4,080 4,080 1 4,080 1 6,855 1 6,855 1 6,855 6,161 $ 54,311.06 $ 7,743.59 $ 4,135.30 $ 66,189.95 215 SANTA ANA AVE - - - - 4 - 425-383-17 - - 4,131 - - 4,131 - 1 - - 4,131 - - 1 - - - 6,855 1 - - - 6,855 - - 1 - 6,855 - - 6,174 $ - - - 54,423.45 $ - - 7,759.62 - - $ 4,143.85 $ - - - - 66,326.92 - - 217 SANTA ANA AVE 5 425-383-16 3,870 3,870 1 3,870 1 6,855 1 6,855 1 6,855 6,109 $ 53,848.29 $ 7,677.61 $ 4,100.06 $ 65,625.96 221 SANTA ANA AVE 6 425-383-15 4,550 4,550 1 4,550 1 6,855 1 6,855 1 6,855 6,279 $ 55,346.79 $ 7,891.27 $ 4,214.16 $ 67,452.22 225 SANTA ANA AVE 7 425-383-14 4,601 4,601 1 4,601 1 6,855 1 6,855 1 6,855 6,292 $ 55,459.18 $ 7,907.29 $ 4,222.72 $ 67,589.19 231 SANTA ANA AVE 8 425-383-13 4,601 4,601 1 4,601 1 6,855 1 6,855 1 6,855 6,292 $ 55,459.18 $ 7,907.29 $ 4,222.72 $ 67,589.19 233 SANTA ANA AVE 9 425-383-12 4,600 4,600 1 4,600 1 6,855 1 6,855 1 6,855 6,291 $ 55,456.98 $ 7,906.98 $ 4,222.55 $ 67,586.51 237 SANTA ANA AVE 10 425-383-20 4,601 4,601 1 4,601 1 6,855 1 6,855 1 6,855 6,292 $ 55,459.18 $ 7,907.29 $ 4,222.72 $ 67,589.19 3001 CLIFF DR 11 425-383-21 4,600 4,600 1 4,600 1 6,855 1 6,855 1 6,855 6,291 $ 55,456.98 $ 7,906.98 $ 4,222.55 $ 67,586.51 3011 CLIFF DR 12 425-383-10 4,601 4,601 1 4,601 1 6,855 1 6,855 1 6,855 6,292 $ 55,459.18 $ 7,907.29 $ 4,222.72 $ 67,589.19 3015 CLIFF DR 13 425-383-09 _ 4,601 4,601 _ 1_ _ 4,601 _ 1 _ 6,855_ 1 _ 6,855 1 6,855 6,292 $ _ 55,459.18 $ 7,907.29 $ 4,222.72 $ 67,589.19 3016 CLIFF DR 14 049-101-05 6,500 6,500 1 6,500 1 6,855 1 6,855 1 6855 6,766 $ 59,643.98 $ 8,503.95 $ 4,541.35 $ 72,689.28 3012 CLIFF DR 15 049-101-06 6,625 6,625 1 6,625 1 6,855 1 6,855 1 6,855 6,798 $ 59,919.45 $ 8,543.23 $ 4,562.32 $ 73,025.00 3008 CLIFF DR 16 049-101-07 6,625 6,625 1 6,625 1 6,855 1 6,855 1 6,855 6,798 $ 59,919.45 $ 8,543.23 $ 4,562.32 $ 73,025.00 3004 CLIFF DR 17 049-101-08 6,625 6,625 1 6,625 1 6,855 1 6,855 1 6,855 6,798 $ 59,919.45 $ 8,543.23 $ 4,562.32 $ 73,025.00 3000 CLIFF DR 18 049-101-09 6,625 6,625 1 6,625 1 6,855 1 6,855 1 6,855 6,798 $ 59,919.45 $ 8,543.23 $ 4,562.32 $ 73,025.00 2948 CLIFF DR 19 049-102-04 6,098 6,098 0.5 3,049 1 6,855 1 6,855 - - 4,190 $ 36,932.39 $ 5,265.77 $ 2,812.07 $ 45,010.23 2949 CLIFF DR 20 049-103-08 11,200 11,200 1 11,200 1 6,855 1 6,855 6,228 $ 54,894.64 $ 7,826.80 $ 4,179.73 $ 66,901.17 2953 CLIFF DR 21 049-103-03 10,737 10,737 1 10,737 1 6,855 1 6,855 6,112 $ 53,874.33 $ 7,681.33 $ 4,102.04 $ 65,657.70 2957 CLIFF DR 22 049-103-02 27,776 27,776 1 27,776 1 6,855 1 6,855 10,372 $ 91,422.96 $ 13,034.96 $ 6,961.03 $ 111,418.95 2961 CLIFF DR 23 049-103-01 33,253 33,253 1 33,253 1 6,855 2 13,710 1 6,855 15,168 $ 133,705.90 $ 19,063.60 $ 10,180.51 $ 162,950.01 202 LA JOLLA LN 24 425-383-01 5,000 3,200 1 3,200 1 6,855 1 6,855 - - 4,228 $ 37,334.25 $ 5,323.04 $ 2,842.71 $ 45,500.00 206 LA JOLLA DR 25 425-383-02 4,250 4,250 1 4,250 1 6,855 1 6,855 - - 4,490 $ 39,579.02 $ 5,643.12 $ 3,013.60 $ 48,235.74 210 LA JOLLA DR 26 425-383-03 4,601 4,601 1 4,601 1 6,855 1 6,855 - - 4,578 $ 40,352.51 $ 5,753.40 $ 3,072.50 $ 49,178.41 214 LA JOLLA DR 27 425-383-04 4,601 4,601 1 4,601 1 6,855 1 6,855 - - 4,578 $ 40,352.51 $ 5,753.40 $ 3,072.50 $ 49,178.41 218 LA JOLLA DR 28 425-383-05 4,601 4,601 1 4,601 1 6,855 1 6,855 - - 4,578 $ 40,352.51 $ 5,753.40 $ 3,072.50 $ 49,178.41 222 LA JOLLA DR 29 425-383-06 3,600 3,600 1 3,600 1 6,855 1 6,855 4,328 $ 38,146.62_ $ 5,438.89 $ 2,904.54 $ 46,490.05 226 LA JOLLA DR 30 425-383-07 4,601 4,601 1 4,601 1 6,855 1 6,855 - - 4,578 $ 40,352.51 $ 5,753.40 $ 3,072.50 $ 49,178.41 230 LA JOLLA DR - - - - 31 - 425-383-08 - - 4,601 - - 4,601 - 1 - - 4,601 - - 1 - - - 6,855 1 - - - 6,855 - - - - - 4,578 $ - - - 40,352.51 $ - - 5,753.40 - - $ 3,072.50 $ - - - - 49,178.41 - - 225 LA JOLLA DR 32 425-382-39 2,953 2,953 - - 0.5 3,428 1 6,855 - - 2,571 $ 22,660.01 $ 3,230.83 $ 1,725.37 $ 27,616.21 229 LA JOLLA DR 33 425-382-38 3,744 3,744 - 0.5 3,428 1 6,855 2,571 $ 22,660.01 $ 3,230.83 $ 1,725.37 $ 27,616.21 233 LA JOLLA DR 34 425-382-37 4,000 4,000 1 4,000 1 6,855 1 6,855 4,428 $ 39,028.09 $ 5,564.57 $ 2,971.66 $ 47,564.32 237 LA JOLLA DR 35 425-382-36 4,000 4,000 1 4,000 1 6,855 1 6,855 4,428 $ 39,028.09 $ 5,564.57 $ 2,971.66 $ 47,564.32 241 LA JOLLA DR 36 425-382-35 4,000 4,000 1 4,000 1 6,855 1 6,855 4,428 $ 39,028.09 $ 5,564.57 $ 2,971.66 $ 47,564.32 245 LA JOLLA DR 37 425-382-34 4,379 4,379 1 4,379 1 6,855 1 6,855 4,522 $ 39,863.29 $ 5,683.65 $ 3,035.25 $ 48,582.19 249 LA JOLLA DR - - - - 38 - 425382-33 - - 4,350 - - 4,350 - 1 - - 4,350 - - 1 - - - 6,855 1 - - - 6,855 - - - - - 4,515 $ - - - 39,799.38 $ - - 5,674.54 - - $ 3,030.38 $ - - - - 48,504.30 - - 301 LA JOLLA DR 39 425382-32 4,300 4,300 1 4,300 1 6,855 1 6,855 4,503 $ 39,689.20 $ 5,658.83 $ 3,021.99 $ 48,370.02 303 LA JOLLA DR 40 42538231 5,924 5,924 1 5,924 0.5 3,428 1 6,855 4,052 $ 35,715.00 $ 5,092.19 $ 2,719.37 $ 43,526.56 305 LA JOLLA DR 41 425-382-30 4,225 4,225 1 4,225 1 6,855 1 6,855 - - 4,484 $ 39,524.63 $ 5,635.37 $ 3,009.44 $ 48,169.44 309 / 313 LA JOLLA DR 42 425-382-29 4,225 4,225 1 4,225 1 6,855 1 6,855 - - 4,484 $ 39,524.63 $ 5,635.37 $ 3,009.44 $ 48,169.44 308 LA JOLLA DR 43 049-101-04 6,229 6,229 1 6,229 1 6,855 1 6,855 - - 4,985 $ 43,940.29 $ 6,264.94 $ 3,345.66 $ 53,550.89 311 SANTA ANA AVE 44 049-101-10 6,229 6,229 0.5 3,115 0.5 3,428 1 6,855 - - 3,349 $ 29,523.48 $ 4,209.42 $ 2,247.60 $ 35,980.50 Total $ 2,150,002.47 $ 306,544.27 $ 163,703.26 $ 2,620,250.00 Harris & Associates 19-50