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HomeMy WebLinkAboutC-1433 - Special Consolidation Election - Recreation Facility Bond Issue�69 -Y -7 MAR 131972 By the CjTy COUNCIL p l64NCH CITY q* = March 9, 1972 CITY OF NEWPORT BEACH TO: City Manager FROM: Parks, Beaches & Recreation and Community Development Departments SUBJECT: Recreation Facility Bond Issue Since our previous discussions regarding a bond election, the Staff has had an opportunity to review some of the cost esti- mates. The attached acquisition and development cost analysis can serve as a basis for a bond issue discussion. The summary of total costs by category is as follows: Acquisition Development 1. Park Facilities 2. View Sites 3. Bicycle Trails $2,830,000 530,000 100,000 $1,505,000 320,000 500,000 2 V C_ 4,4,6i. 4. Paseos 100,000 / 100,000 Totals $3,560,000 v $2,425,000 a, -/x 5 These figures are still vve�eryy__ roou h_ es i es. It is recommended that after.the City Council decides w ich areas are to be included in the bond election, the City obtain the services of an appraiser to refine these figures. Also, all estimates are based upon to- day's market values. The appraiser's report should take into account market values at the anticipated time of acquisition. Park Facilities. Included within the park facilities estimates are the recommend- ations contained within the Interim Park Plan as amended Janu- ary 25, 1972. No acquisition cost was included for any of the State right -of- way property. At the time of the original estimate, it was thought that the City could acquire the property for park purposes through the State Surplus Land Program for 0 - 50% of fair market value. Subsequent to that time, however, the Staff has deter- mined the following: trim 0 0 City Manager - 2. Assembly Bill 507 which was defeated last year in the Senate has not been reintroduced. A check with the authors of last year's bill re- vealed that they do not intend to introduce a similar bill this year. The bill would have permitted 0 -50% acquisition.of surplus State land. 2. Assembly Bill No. 2241, Chapter 1144, was approved. Two sections of this bill are par- ticularly pertinent: °11011.1 Land that has been declared surplus by the Legislature, pursuant to Section 11011, and is not needed by any state agency shall be offered to local governmental agencies at fair market value. Where such land is to be used for park and recreation purposes and operated by local agencies at no expense to the state, the Director of General Services with the ap- proval of the State Public Works Board may transfer the land to local governmental agencies at 50 percent of fair market value under the following conditions: "(a) The local public agency has submitted a general development plan for the property which conforms to the agency's general plan pursuant to Article 5 (commencing with Section 65300) of Chapter 3 of Title 7, and which general development plan has been approved by the Director of Parks and Recreation. "(b) The land must be developed according to plan within a time period determined by the state but not to exceed 10 years. "(c) The deed or other instrument of transfer shall provide that the land would revert to the state if the use changed to a use not con- sistent with parks and recreation purposes during the period of 25 years following the sale. "Where such land is to be used for public purposes other than park and recreation purposes, operated by the local agency at no expense to the state, and the use and enjoyment of the public purpose contemplated will be of broad public benefit, and not a benefit basically of local interest enjoyed and used primarily by the residents of the area of tax jurisdiction of the local agency, the Director of General Services, with the approval of the State T0: City Manager - 3. Public Works Board, may transfer the land to local government agencies at a sales price no less than 50 percent of fair market value. Any such transfer shall provide that if the land is not used for the contemplated purpose during the period of 25 years following the sale, the land shall revert to the state. The Director of General Services may provide additional terms and conditions as he deter- mines to be in the best interest of the state. "11011.6 Notwithstanding any other provisions of law, land held by the state and not needed by any state agency, acquired at little or no cost from a local governmental agency or private party, and where no significant amount of state funds have been expended to preserve, improve, restore, or reclaim such lands, and if it will be used by a governmental agency for a public purpose of broad public benefit, and not a benefit basically of local interest enjoyed and used primarily by the residents of the area of tax jurisdiction of the agency, the Director of General Services, with the approval of the State Public Works Board, upon application by the agency or private party, may transfer the land to the governmental agencies at no cost." The Staff now concludes that under the conditions specified, the City could acquire State right -of -way property that has been declared surplus by the Legislature at 50% of fair market value. Although there is very little criteria upon which to base an estimate, the Staff guesstimates of fair market value for those properties that could possibly be used for park and recreation purposes are included on the attached cost breakdowns. It should also be noted that the freeway right -of -way properties, with the exception of Cliff Drive, have not been declared surplus by the State. Initial indications are that they will not be de- clared surplus until the total freeway question is resolved at the State level. View Sites There is no proposed or approved master plan of view sites. The sites included are those which have been identified by members of the community as major view areas. It should be noted that an attempt was made to include view sites as part of the bicycle system and park proposals rather than identifying individual single purpose sites. TO: City Manager - 4. Bicvcle Trails 0 The bicycle trail system was developed by Staff for estimating purposes only. It will be submitted to the Citizens' Bicycle Trails Committee and is subject to revision. Acquisition cost figures for bicycle trails are included in park and view site estimates where appropriate and, therefore, are excluded in the bike trail estimate. Also, in undeveloped areas, the City can require dedication for bicycle trails as a condition of building permit approval. (The Irvine Company, for example, has been very cooperative in the dedication of right -of -way for bicycle trails in the Harbor View Hills Area.) Therefore, total acquisition cost for bicycle trails is antici- pated to be relatively low. The total bicycle system used for estimating purposes and shown on the attached map includes fifty miles of bicycle trails within the existing City limits. Paseo Svstem The Paseo System is an extension of the bicycle trails system, connecting schools, parks and shopping centers with residential neighborhoods. The primary difference is the Paseo System in- cludes activities that are normally concentrated in a neighbor- hood park as a series of activity areas. The concept was dev- eloped primarily for the hillside areas to take advantage of the topography. In this particular case, it would be providing public access from the area above Pacific Coast Highway to the ocean through Buck Gully. Federal Funding Programs Upon review of the federal programs which fund park and recrea- tion projects, two potential sources of financing were identified: The Land and Water Conservation Fund and the Open Space Land Program which includes the Legacy of Parks Program. Both of these fund 50% of the projects on a reimbursement basis. These two federal programs contain a variety of criteria for funding. Staff has reviewed the criteria and has determined that the projects in Newport Beach which could qualify are bicycle trails, park /beach development, and scenic vistas. Bicycle trails are the most likely for funding. Of the trails proposed, those in conjunction with a paseo, park or beach area are more likely to be funded than those adjacent to a boulevard or highway. Park land developed in conjunction with a beach, the total area of which would be greater than fifteen acres, could also qualify for funding. Such a development conceivably could include beach facilities, park area, and parking. 0 T0: City Manager - 5. Scenic vistas which either preserve unique features of the com- munity, hold land out of development or meet an urgent local need, are potentials for funding. This type of development is lower in priority in both federal programs; therefore, the prob- ability of such an area ever being funded in Newport Beach is unlikely. All the funds earmarked for neighborhood parks have been allocated to low- income housing areas and urban centers; thus Newport Beach probably would not qualify for them. Since all of these grant programs fund a year at a time and the emphasis is shifted between the various criteria each year, to identify specific parks now which would qualify for grant funding would not present an accurate account of the potential federal funding picture. As the park projects are scheduled for acquisi- tion and /or development, Staff will ascertain the status of the federal funding and will apply for financing accordingly. If there are any additional questions or information needed, please contact us. , K V. N, D' c to r Community Development Department CALVIN C. STEWAR irecto Parks, Beaches & Re reati Dept. RVH /CCS /RLG /kk 0 PARK FACILITY BOND ISSUE ESTIMATES (See Attached Maps) Acquisition Development Park Facilities 1 - West Newport -0 -* $ 200,000 2 - 38th Street $ 840,00 50,000 3 - Las Arenas -0- 400,000 4 - Balboa Island 180,000 75,000 5 - Bayside Drive -0- 40,000 6 - Broadmoor /Harbor View Hills -0- 150,000 7 - Lusk /Harbor View Hills 600,000 240,000 8 - Corona Highlands 50,000 10,000 9 - Cameo Highlands 240,000 120,000 10 - Banning 240,000 120,000 11 - Balboa Island 180,000 20,000 12 - Upper Bay (Irvine Avenue) 500,000 80,000 $2,830,000 $1,505,000 Bicycle Trails 100,000 500,000 View Parks 1 - Cliff Drive $ 450,000 $ 230,000 2 - Promontory Point 80,000 40,000 3 - Versaille Area -0 -* 50,000 $ 530,000 $ 320,000 Paseos 1 - Buck Gully S 100.000 $3,560,000 S 100.000 $2,425,000 * Please refer to park facility discussion relative to acquisition of State surplus property. The full market value of those pro- perties listed is as follows: 1 - West Newport $2,000,000 2 - Versaille Area $100,000 H"ll HIM 4, Tw, s-> iFS�ltlllfa� 14 t j T%I AVS It It NNA tl �AVI 14, Am 17 ITT zzt it It , _j I --- -------- - - NX ��1'4w \ % i 4 Y 0 �-,11 v1 ♦ lib��' yr01�wi- \ \ \SSS... CL Vii..- .\.,:1 U/ _ .�'�•"f < i W,S tI—f i N. J fit 71, W din \ Oro+ Wil lot YN Js. � v� .y. •vc �. � Tow ��1 It ` Jr o1 r° e�per i I 1 I ,T '/I !1�liti��lii i I 1 I .tl.l la. i1 '• al fk�, W I.trap i � S xm 1 11 C eA , 0 By the CITY COUNCIL 0 LAW OFFICES OF O' MELVENY & MYERS 611 WEST SIXTH STREET LOS ANGELES, CALIFORNIA 90017 TELEPHONE 12131 620-1 2 (0 a WEST LOS ANGELES OFFICE TELEX: 67-4122 1000 CENTURY PARK EAST A L ANGELES, CALIFORNIA 00067 CABLE ADOReSSNO.:. LEPNONE 121]) 65] -6100 TELEX'. 07 -40 91 I�C?0 II �/.� UROPEAN OFFICE March R , Of /-/ f a/ CE OE LA CONCORDE J 6th G ` C Igo v PARIS 6., FRANCE rT LOPHONE 265]9-]] 1 9 7 2 LEX: "2-657:5 Mr. Robert Wynn City Manager City Hall 3330 Newport Boulevard Newport Beach, California 92660 Dear Mr. Wynn: OJR FILE .... ED 621,566 -3 CITY OF NEWPORT BEACH, PARK AND RECREATIONAL, BONDS, 1972 Herman Zelles, of Stone & Youngberg, has in- dicated that you would like to receive materials necessary to call a special bond election for park and recreational purposes, said election to be consolidated with the up- coming June primary. Enclosed please find the following items: (1) Calendar for bond election, identifying the various necessary acts. (2) Resolution of interest and necessity (to be adopted at the regular meeting of March 13). (3) ordinance calling the election (to be intro- duced at the regular meeting of March 13). (4) Resolution requesting consolidation (to be adopted at the regular meeting of March 13). A certified copy of this resolution, upon adoption, should be forwarded to the County Board of Supervisors and the County Clerk. Along with the copy sent to the Board of Supervisors you should include the suggested form of action of that Board to be employed in consolidating the election. That latter form is also enclosed. (5) Certificate of the City Clerk showing the filings re consolidation (to be executed after the March 27 meeting). #2 - Mr. Robert Wynn - 3 -6 -72 (6) Resolution authorizing filing of arguments V by City Council (to be adopted at the regular meeting of March 27). (7) Form of notice re arguments (to be posted after the meeting of March 27). (8) Certificate of posting notice re arguments (to be completed after the posting has been completed). (9) Sample form of tax rate data statement. This statement should be produced no later than April 14. (10) Letter of employment regarding the services of O'Melveny & Myers. Please present this item to the City Council for approval at your convenience. '<:, Incidentally, you will note that the amount of the bond issue, when decided upon, should be inserted on page 1 of the resolution of interest and necessity, on page 2 of the ordinance calling the election and on page 3 of the ordinance calling the election in the bond proposition. The suggested bond proposition is drafted to give a broad capacity for future.expenditures. I would be de- lighted to discuss its contents by telephone prior to the meeting of March 13 at which the ordinance must be introduced. If you have any PWB:jbo Encls. cc: Dennis O'Neil, Esq. City Attorney , please let me know. O'MELVENY & MYERS • • LAW OFFICES OF O'MELVENY & MYERS fill WEST SIXTH STREET LOS ANGELES, CALIFORNIA 90017 TELEPHONE (213$ 620 -1120 WEST LOS ANGELES OFFICE TCLCY: Bl A122 1800 CENTURY PARR CAST CABLE ADDRESS "'NONn" LOS ANGELES, CALIFORNIA 90067 TELEPHONE {2131 5 53 -670 0 TELEX: eJ -1097 EUROPEAN OFFICE March Ar P ACE DE U CONCORD[ Otill PARIS OA.I.ANCE �h A TELEPHONE 265 39.33 1972 Tnu: enz =enn5 OUR ME HUH. ER 621,566 -3 Mr. Dennis O'Neil City Attorney City Ball 3330 Newport Boulevard Newport Beach, California 92660 Dear Dennis: You s:iould inquire with the Orange County Registrar of voters regarding timing of filing of the statement re tax rate, and the measure arguments to assure that the April 14, 1972 deadline contemplated by the suggested bond election calendar is satisfactory. Pwa :jlg CC: Mr. Robert Wynn City 1 "7anager Very truly yours, Peter W. Blackman for O'MELVENY b MYERS E 0 CITY CLERK Dennis O',ieil, City Attorney Laura Lagics, City Cleric 0 March 1, 1972 Proposed Special Election to be consolidated with June Primaries. This is the resolution used at our last consolidated election for calling the election and requesting consolidation. Two separate resolutions can be used, one requesting the Board of Supervisors to consolidate with the state -wide election, which could be adopted on March 13 in time to get on the Supervisor's Agenda. The resolution calling the election, setting forth the exact ballot measure could be adopted at the adjourned March 20 meeting and still fall within the 74 day requirement. L,aura L.agios City Cleric LL:swk enc. 0 CITY OF NEWPORT BEACH CALIFORNIA DATE March 21, 1972 TO: FINANCE DIRECTOR FROM: City Cleric SUBJECT: Contract No. 1433 City Hall 3300 W. Newport Blvd. Area Code 714 673 -2110 Description of Contract Municipal Financing Consultants for Parks Bond Issue Authorized by Resolution No. 7636 , adopted on Effective date of Contract March 14. 1972 3 -13 -72 Contract with Stone & Youngberg Municipal Financing Consultants, inc. Address One California Street San Francisco, CA Amount of Contract See Page 3 city fterk L] Stone & Youngberg Municipal Financing Consultants, Inc. One California Street San Francisco, California Subject: Special Consolidated Election Parks Bond Issue June 6, 1972 0 March 20, 1972 Enclosed is executed copy of contract employing your firm as Financial Consultants for subject election. This contract was approved by the City Council of Newport Beach by the adoption of Resolution No. 7638 on March 13. Laura Lagios City Clerk LL:dg cc: Finance Director wlcpy of contract CONTRACT EMPLOYING FINANCING CONSULTANT THIS AGREEMENT, made this /,1 r# day of M^ Rcp , 1972, by and between CITY OF NEWPORT BEACH, a City duly organized under the laws of the State of California (hereinafter called "City "), party of the first part, and STONE & YOUNGBERG MUNICIPAL FINANCING CONSULTANTS, INC., One California Street, San Francisco, California, a Corporation (hereinafter called "Consultant "), party of the second part: WITNESSETH: WHEREAS, City is considering the issuance and sale of approximately $S, 9 85, 000 principal amount of General Obligation bonds, predicated upon approval by the elec- torate; and WHEREAS, City desires to develop a feasible, economical and equitable plan of procedure in carrying through to completion said issuance of evidences of indebtedness; ETL:1 WHEREAS, the preparation of such a plan and its execution require certain studies, analyses and recommendations to be made by persons qualified by training and experi- ence to do so; and WHEREAS, City, after due investigation and deliberation, has determined that Consultant is qualified by training and experience to perform said services; NOW, THEREFORE, it is mutually agreed as follows, to wit: City hereby employs Consultant and Consultant hereby accepts such employment to perform the services, upon the terms, subject to the conditions, and in considera- tion of payments as hereinafter set forth: Services to be Performed by Consultant: Consultant shall perform in a diligent manner the following services: 1. Assemble, review and analyze available data and information which may have a bearing on a program for the issuance of the Park and Recreation bonds. - 1 - 2. Based upon the foregoing analysis, make recommendations as to terms and conditions under which bonds are to be issued and sold, including timing and method of sale, amortization or repayment schedules, call and redemp- tion features if any, sinking fund requirements, application of revenues and other details, and cooperate with City's bond counsel in drafting the necessary Resolution of Issuance and Notice of Sale. 3. Provide financing information and data which may be required in connection with any aids or grants which may be available to assist in the financing of the proposed public improvement project. 4. Prior to an election for the authorization of bonds to finance the proposed program, appear at a reasonable number of public meetings that may be held by interested civic groups to explain the financial aspects of the program and provide factual information regarding the project and the financ- ing program. 5. If the issuance of bonds or other evidences of indebtedness to finance all or part of the costs of the proposed improvements is authorized at an election or otherwise, recommend to City the exact terms and conditions under which bonds are to be issued and sold, including timing and method of sale, final amortization or repayment schedules, call and redemption features, sinking fund requirements, application of revenues and other details. 6. Assist bond counsel in drafting the necessary Resolution of Issuance and Notice of Sale. 7. Upon approval by City of final financing details and upon direction by City to do so, prepare the text and other material for an official statement or bond prospectus describing the improvements, the bonds, their security and the economic and financial background of the City. 8. Arrange for printing and distribution of the bond prospectus and other related material to a comprehensive list of prospective bond bidders. City shall reimburse Consultant for costs of printing and distributing the official state- ment and related material. 9. Effect direct personal contact with dealers and investors to stimulate interest in any bonds issued and advise on technical questions concerning financing. 10. Take such other steps as appear advisable to encourage strong competitive bidding on the bonds. Any charges by bond rating agencies and any charges for preparation of debt statement shall be borne by City. 11. During the entire course of employment hereunder, Consultant shall be avail- able at reasonable times for consultation and advice relating to the financial aspects of the contemplated improvement program. - 2 - Payment for Services: 12. For the services to be rendered hereunder, City agrees to pay Consultant the following fees at the times and subject to the conditions specified: a. A sum in an amount equal to $250.00 per manday for those services to be performed under Paragraphs 1 through 4 hereof, provided how- ever that the maximum fee due Consultant under this Paragraph 12a shall be $1,250.00, plus b. A further sum in an amount equal to one percent (1 %) of the first One Million dollars ($1,000,000) in financing achieved, plus c. A further sum in an amount equal to one - quarter of one percent (1/4 %) of all financing achieved in excess of the first One Million dollars (1, 000, 000), however d. The minimum fee due Consultant for each sale of securities shall be $5,000.00. 13. It is understood and agreed that any fees paid Consultant under Paragraph 12a, above, shall be deducted from those fees payable to Consultant under Paragraph 12b. 14. It is further understood and agreed that those fees payable under paragraph 12b, above, shall become due and payable only upon receipt by City of funds to finance all or a portion of the proposed project. Other Considerations: 15. Consultant is employed hereunder to render a professional service within the scope of its training and experience as a municipal financing consultant and any payments made to it are compensation solely for such service and advice. Outside of its normal office overhead and traveling costs to and from its San Francisco and Los Angeles offices and City to perform the services contracted for, Consultant is not responsible for and shall not be held liable for any other expense or expenditure of any kind, including the following: a. Any and all legal or engineering expense of any kind whatever. b. Any and all expense in connection with hearings, proceedings and due issuance of bonds. C. Any printing, advertising, publicity, etc., of such material or data as City may wish to have prepared in connection with Consultant's serv- ices herein provided for, except those specifically excluded herein. 16. Nothin herein contained shall prevent Consultant from carrying on its usual business activities, including the performance of other additional services for City, should it so desire such additional services, nor from performing similar services for other districts, Cities or public entities. - 3 - 17. City agrees that its officials and employees will be requested and directed to cooperate with and assist representatives of Consultant in every reason- able way to the end that Consultant may secure all information and data required to perform the services herein provided for. IN WITNESS WHEREOF, said City, party of the first part, has caused these presents to be properly executed, and said Consultant, party of the second part, has caused these presents to be executed by one of its officers, as of the date hereinabove set forth. CITY OF NEWPORT BEACH APPROVED AS TO FORM B Y � � A6LI Dare: / ci'i y MRNEY By.z�2:i4�z L /�fGt� STONE & YOUNGBERG MUNICIPAL FINANCING CONSULTANTS, INC. By Robert G. Bulot, Vice President - 4 - �- N f . x. saarS"��•X_ar � �,y..' c ±.2i�T�` v _es_:a�.$�S' L ?v F 1 N f . x. saarS"��•X_ar � �,y..' c ±.2i�T�` v _es_:a�.$�S' u.Y�vffi.1:RS.V -'�2 •.