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
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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
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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
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a/ CE OE LA CONCORDE
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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 -
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