HomeMy WebLinkAbout2015-79 - 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 RESOLUTION NO. 2015-79
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH 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. 117
WHEREAS, the City Council of the City of Newport Beach (the "City") desires to
provide certain property located in the City with the undergrounding of electric,
telephone and cable facilities, and the removal of poles, overhead wires, guys, anchors
and appurtenant work therewith as further described in Section 3 hereof (the
"Improvements") and to order the formation of an Assessment District to pay the costs
thereof under and pursuant to the provisions of the Municipal Improvement Act of 1913
(the 1913 Act'); and
WHEREAS, the proposed Assessment District, if it is formed, is to be known and
designated as Assessment District No. 117 (the "Assessment District'); and
WHEREAS, the proposed boundaries of the Assessment District are shown on a
map which indicates by a boundary line the extent of the territory proposed to be
included in the Assessment District, which map is designated `Boundary of Proposed
Assessment District No. 117" (the "Map"), which Map is on file in the office of the City
Clerk; and
WHEREAS, the City Council has been presented with petitions signed by at least
50% of the property owners located within the boundaries of the proposed Assessment
District requesting the formation of the Assessment District to finance the
Improvements; and
WHEREAS, pursuant to California Streets and Highways Code Section 5896.8,
there is on file with the City Clerk a certificate of PENCO Engineering, Inc. certifying the
sufficiency of such petitions; and
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Page 2 of 8
WHEREAS, it appears to the City Council that an Assessment District should be
formed to finance the installation of said Improvements under the provisions of the 1913
Act; and
WHEREAS, the City Engineer, with the assistance of PENCO Engineering, Inc.,
is competent to make and file with the City Clerk the report with regard to the
Improvements, which report is required by the 1913 Act to be made and filed; and
WHEREAS, the conversion of overhead electric utility distribution system
facilities to underground, including connection to existing overhead electric utility
distribution lines where the surface is restored to the condition existing prior to
undergrounding, is categorically exempt from the California Environmental Quality Act
(Public Resources Code Section 21000 et seq.) ("CEQA") and its implementing
guidelines (14 California Code of Regulations Section 15000 et seq.) (the "Guidelines")
pursuant to Section 15302(d) of the Guidelines; and
WHEREAS, before ordering the Improvements, the City Council is required,
under the 1913 Act, to adopt a resolution declaring its intention to do so; and
WHEREAS, the City Council intends to consider issuing bonds secured by the
assessments to be levied on property in the Assessment District pursuant to the
Improvement Bond Act of 1915, being Division 10 (commencing with Section 8500) of
the Streets and Highways Code (the "1915 Act'); and
WHEREAS, before issuing bonds, the City Council is required, under the 1915
Act, to adopt a resolution declaring its intention to do so;
NOW, THEREFORE, the Council of the City of Newport Beach does hereby
RESOLVE, as follows:
1. Recitals. The above recitals, and each of them, are true and correct.
2. Approval of Map. The Map is hereby approved, adopted and declared to
describe the proposed boundaries of the Assessment District; and it shall govern for all
details as to the extent of the Assessment District. The City Clerk is hereby directed to
endorse her certificate on the original of the Map evidencing the date and adoption of
this resolution and to file said Map in her office, and to file a copy of said Map so
endorsed with the County Recorder of Orange, California within fifteen (15) days after
Resolution No. 2015-79
Page 3 of 8
the adoption of the resolution fixing the time and place of hearing on the formation and
extent of the Assessment District.
3. Nature of Improvements. The Improvements generally include the
undergrounding of existing electric, telephone and cable facilities, including the removal
of poles, overhead wires, guys and anchors and the installation of new underground
service connections and new streetlights and appurtenant work therewith as shown on
the Map. The improvements will be designed by the Southern California Edison
Company ("Edison") and other utility providers. Either Edison or the City will construct
the improvements, and the City will inspect the work to ensure conformance to City
standards and specifications where applicable. Once completed, the underground
facilities will become the property and responsibility of Edison and such other utility
providers. Each owner of property located within the Assessment District will be
responsible for arranging and paying for work on his or her property necessary to
connect facilities constructed by the public utilities in the public streets to the points of
connection on the private property. Conversion of individual service connections on
private property is not included in the work done by the Assessment District. Failure to
convert individual service connections on private property may result in a
recommendation to the City Council that the public utilities be directed to discontinue
service to that property. Overhead facilities cannot be removed until all overhead
service has been discontinued.
4. Public Interest and Necessity. The City Council hereby finds and
declares that the public interest and necessity require the Improvements, and the
Improvements will be of direct and special benefit to the properties and land within the
Assessment District. The City Council hereby declares its intention to order the
conversion of the existing overhead electric and communication facilities to
underground locations, and the acquisition of the Improvements, to make the expenses
thereof chargeable upon the area included within the Assessment District, and to form
the Assessment District. Additionally, the City Council hereby waives its policy requiring
petitions signed by owners representing 60% of the assessable land within the
proposed assessment district.
Resolution No. 2015-79
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5. Intention to Levy Assessment. The City Council further declares its
intention to levy a special assessment upon the land within the Assessment District in
accordance with the respective special and direct benefit to be received by each parcel
of land from the Improvements.
6. Initiation Proceedings. This City Council finds and determines that
before ordering the acquisition of the Improvements it shall take proceedings pursuant
to the 1913 Act and pursuant to Part 7.5 of the Special Assessment Investigation,
Limitation and Majority Protest Act of 1931, Streets and Highways Code Section 2960 et
seq. (the 1931 Act').
7. Assessment Engineer Report. PENCO Engineering, Inc. is appointed
the Assessment Engineer. The Assessment Engineer is hereby authorized and
directed to make and file with the City Clerk a written report with regard to the 1913 Act
(the "Report'), which Report shall comply with the requirements of Section 10204 and
Section 2961 of the Streets and Highways Code and Article XIIID of the California
Constitution and shall contain the following:
(a) Plans and specifications for the Improvements;
(b) A general description of works or appliances already installed and
any other property necessary or convenient for the operation of the Improvements, if the
works, appliances or property are to be acquired as part of the Improvements;
(c) An estimate of the cost of the Improvements, and the cost of land,
rights of ways, easements, and incidental expenses in connection with the
Improvements, including the cost of registering bonds;
(d) A diagram showing the exterior boundaries of the Assessment
District, the boundaries of any zones within the Assessment District and the lines and
dimensions of each parcel of land within the Assessment District as they existed at the
time of passage of this resolution (each subdivision to be given a separate number on
the diagram);
(e) A proposed assessment of the total amount of the cost and
expenses of the proposed Improvements upon the several subdivisions of land in the
Assessment District in proportion to the estimated benefits to be received by such
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subdivision, respectively, from the Improvements (the assessment shall refer to the
subdivisions by their respective numbers assigned as provided in (d) above); and
(f) A proposed maximum annual assessment upon each of the several
subdivisions of land in the Assessment District to pay costs incurred by the City and not
otherwise reimbursed which result from the administration and collection of
assessments or from the administration or registration of any associated bonds and
reserve or other related funds.
In addition, the Report shall contain the information required by the 1931 Act as
set forth in Streets and Highways Code Section 2961(b), including:
(a) The total amount, as near as may be determined, of the total
principal sum of all unpaid special assessments and special assessments required or
proposed to be levied under any completed or pending assessment proceedings, other
than the proposed assessments to be levied with respect to the Assessment District,
which would require an investigation and report under the 1931 Act against the total
area proposed to be assessed; and
(b) The total true value, as near as may be determined, of the parcels
of land and improvements within the Assessment District which are proposed to be
assessed. Total true value may be estimated as the full cash value of the parcels as
shown upon the last equalized assessment roll of the county. Alternatively, total true
value may be determined by other reasonable means, including, but not limited to, by
adjusting the value shown on the last equalized assessment roll to correct for deviations
from market value due to Article XIIIA of the California Constitution.
a. Surplus Funds. Following the acquisition of the Improvements and the
payment of all incidental expenses in connection with the formation of the Assessment
District and the issuance of bonds pursuant to the 1915 Act, any surplus remaining in
the improvement fund established for the Assessment District shall be used as
determined by the City Council as provided in Section 10427 of the Streets and
Highways Code.
9. Notice. Notice is hereby given that serial or term bonds to represent
unpaid assessments and to bear interest at a rate not to exceed 12 percent per annum
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will be issued in the manner provided in the Improvement Bond Act of 1915 to represent
the unpaid assessments and the last installment of such bonds shall mature a maximum
of 20 years from the second day of September next succeeding 12 months from their
date. The principal amount of such bonds maturing or becoming subject to mandatory
prior redemption each year shall not be an amount equal to an even annual proportion
of the aggregate principal amount of the bonds, but rather (except as specifically
otherwise provided by the City Council in connection with the sale of such bonds), shall
be an amount which, when added to the amount of interest payable in each year, will be
a sum which is substantially equal in each year, except for the moneys falling due on
the first maturity or mandatory prior redemption date of the bonds which shall be
adjusted to reflect the amount of interest earned from the date when the bonds bear
interest to the date when the first interest is payable on the bonds. Such bonds shall be
serviced and collected by the City Treasurer or by such registrar and/or paying agent(s)
as this City Council may from time to time designate.
10. Advance Payment of Assessments. The provisions of Part 11.1 of the
Improvement Bond Act of 1915, providing an alternative procedure for the advance
payment of assessments and the calling of bonds, shall apply.
11. Compliance with the 1913 Act. Except as specifically otherwise
provided for herein, the Improvements shall be made and ordered pursuant to the
provisions of the 1913 Act.
12. No Advancement of Funds. The City Council hereby determines that
the City will not obligate itself to advance available funds from its treasury to cure any
deficiency which may occur in the bond redemption fund established for the
Assessment District.
13. No Property Owner Construction. The public interests will not be served
by allowing the property owners to take any contract to be let for the construction of the
Improvements, and no notice of award of contract shall be published.
14. Refunding of Assessment Bonds. It is hereby determined that the
bonds proposed to be issued in these proceedings may be refunded. Any adjustment to
assessments resulting from such refunding shall be done on a pro rata basis as
Resolution No. 2015-79
Page 7 of 8
required pursuant to Section 8571.5 of the Streets and Highways Code. Any such
refunding shall be pursuant to the provisions of Division 11.5 (commencing with Section
9500) of the Streets and Highways Code, except that, if, following the filing of the report
specified in Section 9523 and any subsequent modifications of the report, the City
Council finds that all of the conditions specified in Section 9525 are satisfied and that
the adjustments to assessments are on a pro rata basis, the City Council may approve
and confirm the report and any, without further proceedings, authorize, issue, and sell
the refunding bonds pursuant to Chapter 3 (commencing with Section 9600) of Division
11.5 of the Streets and Highways Code. Any such refunding bonds shall bear interest
at the rate of not to exceed twelve percent (12%) per annum, or such higher rate of
interest as may be authorized by applicable law at the time of sale of such bonds; and
the last installment of such bonds shall mature on such date as will be determined by
the City Council in the proceedings for such refunding.
15. Approval of Construction on Private Property. It is in the public
interest and more economical to do certain work on private property to eliminate any
disparity in level or size between the Improvements and private property and to add the
actual cost of such work to the Assessment of the property to which such work was
done; provided that no work of this nature shall be performed until and unless the
written consent of the owner of property is first obtained.
16. Agreements with Public and Private Utilities. Pursuant to Streets and
Highways code Section 10110, the City intends to enter into agreements with Edison
and the other utility providers, and any agreement between the City and Edison, or any
other public utility, for the ownership, management, or control of the underground
electric, telephone and cable facilities to be installed pursuant to the Improvements,
would benefit any current or future residents of the Assessment District.
17. Exemption from CEQA. Pursuant to Section 15302(d) of the Guidelines,
the undergrounding of the Improvements will have no significant effect on the
environment and is categorically exempt from CEQA. The City Clerk is directed to
cause a notice of exemption to be posted as required by law.
Resolution No. 2015-79
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18. Inquiries. All inquiries for any and all information relating to these
proceedings, including information relating to protest procedures, should be directed to:
CITY OF NEWPORT BEACH
Attention: Michael Sinacori
100 Civic Center Drive
Newport Beach, California 92660
(949) 644-3342
19. Resolution Effective Immediately. This Resolution shall take effect
immediately upon its adoption.
ADOPTED this 22nd day of September, 2015. �1
Edward D. Selich `,,^
Mayor
ATTEST:
Leilani 1. Brown
City Clerk
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STATE OF CALIFORNIA }
COUNTY OF ORANGE } ss.
CITY OF NEWPORT BEACH }
1, Leilani 1. Brown, City Clerk of the City of Newport Beach; California, do hereby certify that the
whole number of members of the City Council is seven; that the foregoing resolution, being Resolution
No. 2015-79 was duly and regularly introduced before and adopted by the City Council of said City at a
regular meeting of said Council, duly and regularly held on the 22 n day of September, 2015, and that the
same was so passed and adopted by the following vote, to wit:
AYES: Council Member Peotter, Council Member Petros, Mayor Pro Tem Dixon, Mayor
Selich
NAYS: None
ABSENT: Council Member Duffield
RECUSED: Council Member Curry, Council Member Muldoon
IN WITNESS WHEREOF, 1 have hereunto subscribed my name and affixed the official seal of
said City this 23rd day of September, 2015.
City Clerk
Newport Beach, California
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