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HomeMy WebLinkAbout18 - Proposed Assessment District No. 116B - Area Bounded by Balboa Blvd / Neptune Ave / 47th St / 45th St / Channel RdTO: FROM: CITY OF NEWPORT BEACH City Council Staff Report January 12, 2016 Agenda Item No. 18 HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL David A. Webb, Public Works Director - 949-644-3311, dawebb@newportbeachca.gov PREPARED BY: Michael J. Sinacori, Assistant City Engineer PHONE: 949-644-3342 TITLE: Proposed Assessment District No. 116B - Area Bounded by Balboa Blvd / Neptune Ave / 47th St / 45th St / Channel Rd ABSTRACT: Property owners on the east and west side of Balboa Boulevard between 47th and 45th Streets have submitted Petitions requesting formation of an underground utility assessment district to be done in concert with the City's Balboa Boulevard Rule 20a undergrounding efforts. The City Council certified the Petition for Assessment District No. 116B on October 13, 2015. On November 10, 2015, the City Council approved the Assessment Engineer's Report, declared its intention to levy assessments and to issue bonds to finance the undergrounding, and set January 12, 2016 as the time and place of a Public Hearing for Assessment District No. 116B. Ballots were mailed to each property owner and Council is requested to hold the Public Hearing, count ballots and determine if these property owners support or oppose formation of Assessment District No. 116B. RECOMMENDATIONS: a) Open public hearing on the formation of Assessment District No. 11613; b) Hear public testimony from those who desire to speak; C) Close the public hearing; d) Count ballots; and e) If there is greater than or equal to 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: 18-1 Proposed Assessment District No. 116B - Area Bounded by Balboa Blvd / Neptune Ave / 47th St / 45th St / Channel Rd January 12, 2016 Page 2 i) Adopt Resolution No. 2016-7, 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. 116B, 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. 11613; and ii) Approve Budget Amendment No.16BA-024 authorizing an advance from the General Fund in the amount of $105,560 to Assessment District No. 116B and appropriating $35,000 to Account No. 66102-941027 for electrical utility design by SCE, $10,560 to Account No. 66102-941005 for phone system design by AT&T and $60,000 to Account No. 66102- 941006 for assessment engineering services; and transferring expenses from Account No. 65002-941006 to 66102-941006 up to $25,000 for assessment engineering services contracted to date. Funds remaining in this fiscal year will be carried forward to future annual budgets per Council Policy F-3; OR If desired not to form the District, adopt Resolution No. 2016-7, 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. 116B. FUNDING REQUIREMENTS: $970,000 in funding will be provided by property owner contributions and/or bond proceeds if the assessment district is approved. Funds for the City expenditures will be requested in the future when the assessment district nears construction and bonds are sold. If AD 116B is formed, the City will be responsible for the estimated assessments for Channel Park ($82,105.84). Upon approval of the Council directed Budget Amendment, sufficient funds would be available in the following accounts: Account Description AD 116B Electrical Design (SCE) AD 116B Phone Design (AT&T) AD 116B Assessment Engineering Account Number Amount 66102-941027 $35,000.00 66102-941005 10,560.00 66102-941006 60,000.00 Total $105,560.00 18-2 Proposed Assessment District No. 116B - Area Bounded by Balboa Blvd / Neptune Ave / 47th St / 45th St / Channel Rd January 12, 2016 Page 3 DISCUSSION: Owners of property located in Proposed Assessment District No. 116B submitted petitions to the City in Spring 2015, requesting the formation of a special assessment district to underground overhead utilities. On June 18, 2015, the Assessment Engineer certified that owners representing more than 50 percent of the assessable property area within Proposed Assessment District No. 116B had signed a petition for undergrounding overhead utilities. On October 13, 2015, the City Council approved Resolution No. 2015-82 accepting the petition. Assessment District No. 116B (AD 116B) is proposed for the conversion of existing overhead utilities to underground locations. The property owners within the boundary of the proposed Assessment District will bear the cost of the improvements and their associated proceedings. AD 116B is adjacent to the City's Balboa Boulevard 20a undergrounding project that extends from West Coast Highway to 23rd Street. In order to finalize the 20a design, the undergrounding boundaries of adjacent areas must be understood by Edison. Prior to combining the design efforts and to guarantee commitment from the AD 116B property owners, City staff recommended a property owner vote prior to expending additional design efforts on the 20a project or advancing design costs for the AD 116B project. 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 thirty (30) days after confirmation of the assessment. Staff is recommending a 20 -year term for this District. Federal Income Tax Component of Contribution Tax (ITCC) has been eliminated pursuant to 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 AD 116B is approved, City Council is requested to approve an appropriation of $105,560.00 with the intention of being reimbursed from the District. Included in the appropriation is $60,000.00 to recover the assessment engineering cost by Harris & Associates, Inc.; $35,000.00 for Edison's electric utility design; and $10,560.00 for AT&T phone system design. If the District is formed, these costs will be incorporated into the project costs and reimbursed by the District back to the City. If the District fails to form, the City will not be reimbursed for the assessment engineering costs incurred by the City to date, estimated at $40,000, which may include up to $25,000 in contract expenses from Account No. 65002-941006, a pre -formation account for potential Assessment Districts. 18-3 Proposed Assessment District No. 116B - Area Bounded by Balboa Blvd / Neptune Ave / 47th St / 45th St / Channel Rd January 12, 2016 Page 4 On November 10, 2015, City Council accepted a Preliminary Engineer's Report for proposed Assessment District No. 116B, adopted a Resolution of Intention in order to form the District, and set a public hearing on January 12, 2016 for the formation of the Assessment District. The location of the proposed District and overhead facilities to be removed are shown in the attached Engineer's Report. Public Notice for this Public Hearing was mailed out on November 24, 2015, to provide a minimum 45 -day noticing to property owners within the proposed district boundary. If, following the public hearing and vote, AD 116B is formed, an assessment lien would be recorded on the title of properties included in the District. Therefore, a cash collection period would take place to provide property owners an opportunity to 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. The total assessment for Proposed Assessment District No. 116B is estimated as follows: ITEM COST Cost of Design and Construction $ 711,000.00 Incidental Costs and Expenses $ 188,700.00 Financing (Bond) Costs $ 70,300.00 Estimated Total Cost: $ 970,000.00 The Estimated cost does not include the Federal Income Tax Component of Contribution (ITCC) tax, which is a betterment tax. Bond Reserve for this District is estimated at 6 percent. Property owners paying their assessments in full during the 30 - day cash payment period waive the financial cost of issuing and servicing the bonds and receive a discount of approximately 7.3 percent. In an effort to reduce costs and minimize disruptions in the area, City staff is also reviewing if any City water and sewer lines are scheduled for replacement within District limits. The timing of these projects and the ability to construct concurrently could enable further savings to both the Assessment District and the City. 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. 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 the particular property needs. Proposed Assessment District No. 116B - Area Bounded by Balboa Blvd / Neptune Ave / 47th St / 45th St / Channel Rd January 12, 2016 Page 5 The following is a tentative schedule for proposed Assessment District No. 116B: Resolution of Intention November 10, 2015 Public Hearing January 12, 2016 Tentative Bond Sale Period Spring 2017 Public utilities commence work Fall 2017 Property owners notified to install service connections Fall 2018 Property owners complete conversions Summer 2019 Public utilities begin to remove overhead structures Summer 2019 Public utilities finish removing poles and overhead structures Fall 2019 The assessment engineer used a lot size methodology to apportion assessments within this District considering that all properties are receiving the same safety, connection and aesthetic benefit. The special benefits from undergrounding the overhead utilities are 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. The removal of guy wires and other support structures related to the overhead facilities are included in the definition of improved aesthetics. • 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. Properties immediately adjacent to the facilities usually have a greater risk. Furthermore, in compact communities like the Balboa Peninsula, the negative effects of falling lines and poles are more widespread including blocked driveways and alleys, and property damage. • Connection Benefit. This benefit relates to the enhanced reliability of service from the underground utilities, due to new wires and equipment underground, reducing the threat of service interruption from downed lines. When compared to overhead systems, fewer outages occur due to acts of nature, traffic collisions and obstructions (such as trees). The range for the estimated assessment costs per parcel (not including the City park) is approximately $9,500 to $21,800, with 50 percent of all the properties (including the City park) assessed approximately $17,200 or less. Assessments vary due to the property size. 18-5 Proposed Assessment District No. 116B - Area Bounded by Balboa Blvd / Neptune Ave / 47th St / 45th St / Channel Rd January 12, 2016 Page 6 Ballot Tabulation Procedures: All assessment ballots submitted to the City Clerk prior to the close of the public hearing on January 12, 2016, will be tabulated per the ballot tabulation procedures directed by City Council Policy L-28. ENVIRONMENTAL REVIEW: This project has been found to be exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15302 (replacement of existing facilities involving negligible expansion of capacity) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential to have a significant effect on the environment. NOTICING: This agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which time the City Council considers the item). Also, property owners of the proposed assessment district received notice of the Public Hearing a minimum of 45 days before the scheduled date along with their balloting information package. ATTACHMENTS: Attachment A — November 10, 2015 Council Report (without attachments) Attachment B — Boundary Map Attachment C — Resolution Confirming Assessments Attachment D — Resolution Declaring Abandonment Attachment E — Final Engineer's Report Attachment F — Budget Amendment 18-6 PO @ CITY OF NEWPORT BEACH c9 City Council Staff Report �FOR TO: FROM: Attachment A November 10, 2015 Agenda Item No. 6 HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL David A. Webb, Public Works Director - 949-644-3311, dawebb@newportbeachca.gov PREPARED BY: Michael J. Sinacori, Assistant City Engineer PHONE: 949-644-3342 TITLE: Proposed Assessment District Nos. 111, 116 and 116B - Areas Adjacent to Balboa Boulevard between Coast Highway and 23rd Street ABSTRACT: Property owners on the east side and west side of Balboa Boulevard between 23rd and West Coast Highway have submitted Petitions requesting formation of underground utility assessment districts to be done in concert with the City's Balboa 20a undergrounding efforts. The City Council certified the Petition for AD -116 bounded by 44th and 38th Streets on the east side of Balboa on July 14, 2015. The City Council certified the Petitions for AD -111 and AD -116B on October 13, 2015. AD -111 is bounded by 31 stth Street, Ocean Front, 23rd Street and Newport Boulevard and AD -116 is bounded by 45th and 47th Streets between Channel Park and Seashore Drive. City Council is asked to approve the Assessment Engineer's Report, declare its intention to levy assessments and issue bonds to finance the undergrounding, and setting January 12, 2016, as the time and place of a Public Hearing on for AD -111, 116, and 116B. RECOMMENDATION: a) Adopt Resolution No. 2015-93, 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. 111; b) Adopt Resolution No. 2015-94, 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. 116; 18-7 Proposed Assessment District Nos. 111, 116 and 116B - Areas Adjacent to Balboa Boulevard between Coast Highway and 23rd Street November 10, 2015 Page 2 c) Adopt Resolution No. 2015-95, 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. 116B; d) Adopt Resolution No. 2015-96, 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. 111; e) Adopt Resolution No. 2015-97, 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. 116; f) Adopt Resolution No. 2015-98, 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. 116B; and g) Per City Council Policy L-28 (Assessment Ballot Guidelines), determine that the City will not participate in the AD -116B balloting process for the Channel Park property by neither voting for nor against the assessment. FUNDING REQUIREMENTS: Funds will be provided by property owner contributions and/or bond proceeds if the assessment district is approved. If AD -116B is formed, the City will be responsible for the estimated assessments for Channel Park ($82,105.84). To proceed to the property owner vote for these three assessment districts there is no new fiscal impact. Based on Council input last fiscal year, an $87,000 Professional Services Agreement with Harris and Associates was executed to complete the Engineer's Reports, prepare assessment ballots and attend the public hearings for the property owners to consider undergrounding for the AD -111 and AD -116B districts. Approximately $60,000 of these appropriated funds has been expended to date. Sufficient funds remain to complete the property owner balloting. In addition, the :: Proposed Assessment District Nos. 111, 116 and 116B - Areas Adjacent to Balboa Boulevard between Coast Highway and 23rd Street November 10, 2015 Page 3 Professional Services Agreement with Harris and Associates was amended to add $25,000 to complete the assessment engineering for AD -116. No further funds are needed for the preparation of assessment ballots or for the public hearings for these districts. If the districts are not successful in formation, the General Funds utilized for the preparation of the Engineer's Reports and balloting efforts would not be recovered from the proposed district property owners. DISCUSSION: Owners of property located in Proposed Assessment Districts submitted petitions to the City requesting the formation of a special assessment district to underground overhead utilities. On June 5, 2015, the assessment engineer certified that owners representing more than 60 percent of the assessable property area within AD -116 had signed a petition for undergrounding overhead utilities. On June 18, 2015, the assessment engineer certified that owners representing more than 50 percent of the assessable property area within AD -116B had signed a petition for undergrounding overhead utilities. On June 23, 2015, the assessment engineer certified that owners representing more than 50 percent of the assessable property area AD -111 had signed a petition for undergrounding overhead utilities. On July 14, 2015, the City Council approved Resolution No. 2015-60 certifying the Petition for AD -116 and on October 13, 2015, the City Council approved Resolution Nos. 2015-81, and 2015-82 certifying the Petitions for AD -111 and AD -116B. The AD -111, 116 and 116B Assessment Districts are being proposed for the conversion of existing overhead utilities to underground locations. The property owners within the boundary of the proposed Assessment Districts will bear the cost of the improvements and their associated proceedings. All three Districts are adjacent to the City's Balboa Boulevard 20a undergrounding project that extends from West Coast Highway to 23rd Street. In order to finalize the 20a design, the undergrounding boundaries of adjacent areas must be understood by Edison. Prior to combining the design efforts and to guarantee commitment from the AD -111, 116 and 116B property owners City staff recommends a property owner vote prior to expending additional design efforts on the 20a project or advancing design costs for the AD -111, 116 and 116B projects. 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 this District. :• Proposed Assessment District Nos. 111, 116 and 116B - Areas Adjacent to Balboa Boulevard between Coast Highway and 23rd Street November 10, 2015 Page 4 Federal Income Tax Component of Contribution Tax (ITCC) has been eliminated pursuant to 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 -111, 116 and 116B are formed; an assessment lien would be recorded on the title of properties included in the Districts. Therefore, a cash collection period would take place to provide property owners with an opportunity to 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. The total assessment for Proposed Assessment District Nos. 111, 116 and 116B are estimated as follows: Proposed Assessment District No. 111 ITEM COST Cost of Design and Construction $2,845,700.00 Incidental Costs and Expenses $340,300.00 Financing (Bond) Costs $249,000.00 Estimated Total Cost: $3,435,000.00 Proposed Assessment District No. 116 ITEM COST Cost of Design and Construction $1,563,100.00 Incidental Costs and Expenses $222,900.00 Financing (Bond) Costs $139,000.00 Estimated Total Cost: $1,925,000.00 Proposed Assessment District No. 116B ITEM COST Cost of Design and Construction $711,000.00 Incidental Costs and Expenses $188,700.00 Financing (Bond) Costs $70,300.00 Estimated Total Cost: $970,000.00 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. The cost to the property owner for this conversion varies depending on the condition and location of the current electrical service. Each 18-10 Proposed Assessment District Nos. 111, 116 and 116B - Areas Adjacent to Balboa Boulevard between Coast Highway and 23rd Street November 10, 2015 Page 5 property owner is encouraged to contact a licensed electrical contractor to assess the particular property needs. The following is a tentative schedule for proposed Assessment District Nos. 111, 116 and 116B: Resolution of Intention November 10, 2015 Public Hearing January 12, 2016 Tentative Bond Sale Period May/June 2017 Public utilities commence work September 2017 Property owners notified to install service connections September 2018 Property owners complete conversions June 2019 Public utilities begin to remove overhead structures July 2019 Public utilities finish removing poles and overhead structures December 2019 The assessment engineer used a lot size methodology to apportion assessments within each district considering that all properties are receiving the same safety, connection and aesthetic benefit. 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. The removal of guy wires and other support structures related to the overhead facilities are included in the definition of improved aesthetics. 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. Properties immediately adjacent to the facilities usually have a greater risk. Furthermore, in compact communities like these along Balboa Boulevard, the negative effects of falling lines and poles are more widespread including blocked driveways and alleys, and property damage. Connection Benefit. This benefit relates to the enhanced reliability of service from the underground utilities, due to new wires and equipment underground, reducing the threat of service interruption from downed lines. When compared to overhead 18-11 Proposed Assessment District Nos. 111, 116 and 116B - Areas Adjacent to Balboa Boulevard between Coast Highway and 23rd Street November 10, 2015 Page 6 systems, fewer outages occur due to acts of nature, traffic collisions and obstructions (such as trees). The following is a summary of properties with unique considerations: Assessment District No. 111: Assessment Nos. 14 & 15. The poles, wires and guy wires to be undergrounded do not front these properties, or access thereto, and do not provide significant aesthetic benefits to these properties. Therefore, these properties are assigned zero (0) aesthetic benefits. 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 12, 2016, will be tabulated per the ballot tabulation procedures directed by City Council Policy L-28. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this project exempt from the California Environmental Quality Act ("CEQA") pursuant to Section 15302 (replacement of existing facilities involving negligible expansion of capacity) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential to have a significant effect on the environment. 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, the property owners of the proposed assessment district will receive notice of the Public Hearing a minimum of 45 days before the scheduled date along with their balloting information package. ATTACHMENTS: Attachment A — A Resolution of the City Council of the City of Newport Beach Approving the Assessment Engineer's Report and Fixing the Time and Place of the Public Hearing for Assessment District No. 111 Attachment B — A Resolution of the City Council of the City of Newport Beach Approving the Assessment Engineer's Report and Fixing the Time and Place of the Public Hearing for Assessment District No. 116 18-12 Proposed Assessment District Nos. 111, 116 and 116B - Areas Adjacent to Balboa Boulevard between Coast Highway and 23rd Street November 10, 2015 Page 7 Attachment C — A Resolution of the City Council of the City of Newport Beach Approving the Assessment Engineer's Report and Fixing the Time and Place of the Public Hearing for Assessment District No. 116B Attachment D — 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. 111 Attachment E — 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. 116 Attachment F — 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. 116B Attachment G — Preliminary Engineer's Report for AD 111 Attachment H — Preliminary Engineer's Report for AD 116 Attachment I — Preliminary Engineer's Report for AD 116B 18-13 ATTACHMENT B ASSESSMENT DIAGRAM FOR ASSESSMENT DISTRICT NO. 111 (NEWPORT BLVD / 23RD ST / OCEAN FRONT W / 31ST ST) CITY OF NEWPORT BEACH, COUNTY OF ORANGE STATE OF CALIFORNIA t3ALt$UH DL V U H U) U) c~n = M c:) m M N F LU W 2 1n �E U) ~ H C, N BLO Ej BL CK N BL CK BL CK THE BOUNDARY OF THE PROPOSED ASSESSMENT DISTRICT COINCIDES WITH THE ASSESSOR'S PARCELS WITHIN THE BOUNDARY SHOWN ON THIS MAP. FOR PARTICULARS OF LINES AND DIMENSIONS OF ASSESSOR'S PARCELS, REFERENCE IS MADE TO THE MAPS OF THE ORANGE COUNTY ASSESSOR, SPECIFICALLY BOOK 423 PAGES 29, 30, AND 36. ALL DIMENSIONS SHOWN HEREIN ARE PER THE ASSESSOR'S PARCEL MAPS. ACCEPTED AND FILED AT THE REQUEST OF CITY OF NEWPORT BEACH DATE TIME FEE $ INSTRUMENT# BOOK PAGE OF THE ASSESSMENT AND COMMUNITY FACILITIES DISTRICTS IN THE OFFICE OF THE RECORDER OF THE COUNTY OF ORANGE, STATE OF CALIFORNIA. HUGH NGUYEN COUNTY CLERK RECORDER BY DEPUTY EXEMPT RECORDING PER G.C. 6103 RECORDED IN THE OFFICE OF THE SUPERINTENDENT OF STREETS, CITY OF NEWPORT BEACH, THIS DAY OF 20_ SUPERINTENDENT OF STREETS AN ASSESSMENT WAS LEVIED BY THE CITY COUNCIL ON THE LOTS, PIECES AND PARCELS OF LAND SHOWN ON THIS ASSESSMENT DIAGRAM. SAID ASSESSMENT WAS LEVIED ON THE _ DAY OF , 20 . REFERENCE IS MADE TO THE ASSESSMENT ROLL RECORDED IN THE OFFICE OF THE SUPERINTENDENT OF STREETS FOR THE EXACT AMOUNT OF EACH ASSESSMENT LEVIED AGAINST THE PARCELS SHOWN ON THIS ASSESSMENT DIAGRAM. CITY CLERK FILED IN THE OFFICE OF THE CITY CLERK OF THE CITY OF NEWPORT BEACH THIS _ DAY OF , 20 CITY CLERK U) LEGEND ASSESSOR'S PARCEL LINE M ---- ASSESSMENT DISTRICT BOUNDARY N GRAPHIC SCALE Hams & Associates. 22 Executive Park, Suite 200 Irvine, California 92614 800-827-4901 DATE 9/11 /15 SHEET 1 OF 3 18-14 ASSESSMENT DIAGRAM FOR ASSESSMENT DISTRICT NO. 111 (NEWPORT BLVD/23RD ST/OCEAN FRONT W/31 ST ST) CITY OF NEWPORT BEACH, COUNTY OF ORANGE STATE OF CALIFORNIA R9- Assessor's Ma Book 047 f] 939 7111 P ®®ozs 00 ©® {4 ®®939-oj 71 �© ®� ® ®®0027 30 3 -7 O© �® 071 ®® 2 55 01 6 0© ®® 1 1M ®57 � of ®�; ®11 ©® r ❑3939-71® ® g 56 ®© ® I ®©'; 0 1 ® © ®® ®� 008 I M i BALBOA BLVD w I w I CO ®9 11 ® 38 co �64i0Z 281 85 108"' 111® 86 '� �L10� 06 11 ® 13 ®7® u~i 87 1105104 3a E 11 ® v~i� 6739 n ®78 88 103'? 13 ® co 6805 ®77 �� 8990' 102 11 ® 13 ® 'ro STREET CENTERLINE � r__ u~i1 69 0� ®76 91 101 = 11 0 3 132 3 n a --- WIRES TO BE REMOVED ' 6 i �1 ASSESSOR'S PARCEL LINE 007 ®7© 0 92 1001 N 11 ® ---� ASSESSMENTDISTRICT BOUNDARY 71 D$ ®� Cl) 30 • POLE TO BE REMOVED 11 '� RULE 20A TO BE REMOVED 981, 112919 0 i 720 ® 73 x'181126 1P. C1 ASSESSOR'S PARCEL NUMBER - -- C1 -i ASSESSOR'S PAGE SECTION ASSESSMENT NUMBER 111 13 14 201p21 22123112411125'126 127 4 ®5 96 I � 3� OCEAN FRONT W GRAPHIC SCALE Hams & Associates. 22 Executive Park, Suite 200 Irvine. California 92114 800-827-4901 THE BOUNDARY OF THE PROPOSED ASSESSMENT DISTRICT COINCIDES WITH THE ASSESSOR'S PARCELS WITHIN THE BOUNDARY SHOWN ON THIS MAP. FOR PARTICULARS OF LINES AND DIMENSIONS OF ASSESSOR'S PARCELS, REFERENCE IS MADE TO THE MAPS OF THE ORANGE COUNTY 9/11/15 SHEET 2 of 3 ASSESSOR, SPECIFICALLY BOOK 423 PAGES 29, 30, AND 35. ALL DIMENSIONS SHOWN HEREIN ARE PER THE ASSESSOR'S PARCEL MAPS. DATE 18-15 Assessor's Map Book 047 wU 1L42J 163 r *5 14 R6 21 _ `(6 ® 161-1 i 7 11-44SS160 U c Lu 146 159 w ' "I z 147 C58 U 1 V 14 167:1 F F 156 1 1 1 1. 1 1 41�4�4 70171 7 �499W1 5111A1 hn L5415�I ASSESSMENT DIAGRAM FOR ASSESSMENT DISTRICT NO. 111 (NEWPORT BLVD/23RD ST/OCEAN FRONT W/31 ST ST) CITY OF NEWPORT BEACH, COUNTY OF ORANGE STATE OF CALIFORNIA 7 1 Li 9 1 10 d- 11 1 1_111 L211 t PROJ 932 074- 075 BLVD THE BOUNDARY OF THE PROPOSED ASSESSMENT DISTRICT COINCIDES WITH THE ASSESSOR'S PARCELS WITHIN THE BOUNDARY SHOWN ON THIS MAP. FOR PARTICULARS OF LINES AND DIMENSIONS OF ASSESSOR'S PARCELS, REFERENCE IS MADE TO THE MAPS OF THE ORANGE COUNTY ASSESSOR, SPECIFICALLY BOOK 423 PAGES 29, 30, AND 35. ALL DIMENSIONS SHOWN HEREIN ARE PER THE ASSESSOR'S PARCEL MAPS. 18-16 ® 22771:2 230 [22 [26,2[311 ��5� © — 7781� ® 00 25 -4; 23j � 2551 27 61 1 77 6 0 224 u~i�- in r 2541 l 26� cn U) 0 0 J23w— 531 F X63 76 4 u~i _ N ® VO5 V272 = j;35 ! 5Z _ X641 5® ®2021 3� N 236 �25� N 265 07514 {, ® 9077 2®0 237 X50 66 �974 2� �0, 38 2� 26] r~ N 0 ®918® 11 3® 2[481 r 68 F 1 1 1 1. 1 1 41�4�4 70171 7 OCEAN FRONT W THE BOUNDARY OF THE PROPOSED ASSESSMENT DISTRICT COINCIDES WITH THE ASSESSOR'S PARCELS WITHIN THE BOUNDARY SHOWN ON THIS MAP. FOR PARTICULARS OF LINES AND DIMENSIONS OF ASSESSOR'S PARCELS, REFERENCE IS MADE TO THE MAPS OF THE ORANGE COUNTY ASSESSOR, SPECIFICALLY BOOK 423 PAGES 29, 30, AND 35. ALL DIMENSIONS SHOWN HEREIN ARE PER THE ASSESSOR'S PARCEL MAPS. 18-16 ATTACHMENT C RESOLUTION NO. 2016-7 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH 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. 116B WHEREAS, this City Council has heretofore adopted Resolution No. 2015-98 (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. 116B (the "Assessment District") under the provisions of the Municipal Improvement Act of 1913 (Division 12 of the California Streets and Highways Code, "the Act"); and 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"); and WHEREAS, this City Council fixed January 12, 2015, at the hour of 7:00 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; and 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"); and 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; and 18-17 Resolution No. 2016-7 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; 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; and 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 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 Final Report. 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. 3. Benefit to Property. The property within the Assessment District to be assessed as shown in the Final Report will be benefited by the Improvements. Resolution No. 2016-7 Page 3 of 5 4. Majority of Ballots in Favor. 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. 5. Confirmation of Assessments. 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. 6. Approval of Assessments. 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 City Council is authorized and directed to endorse the fact and date of such approval on the Final Report. 7. Recordation of Documents. 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. 8. Notice of Recordation. 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. 9. Compliance with Alternative Proceedings Requirements. This City Council hereby finds and determines that the information set forth at pages 15 and 16 of the Final Report demonstrates compliance with the requirements of Part 7.5 of Division 4 of the 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 Code. 18-19 Resolution No. 2016-7 Page 4 of 5 10. Receipt of Prepaid Assessments. The Superintendent of Streets is designated to receive the assessments paid during: (i) the 30 -day cash payment period which shall commence on the date of filing the assessment diagram with the Superintendent of Streets, and (ii) approximately 90 days prior to the issuance of the limited obligation improvement bonds referenced in the Resolution of Intention (the "Bonds"). 11. Intention to Issue Bonds. Following receipt of the Certificate re 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. 12. Designation as Underground Utilities District. The area within the Assessment District is hereby designated an underground utilities district pursuant to and in accordance with Chapter 15.32 of the Code of Ordinances of the City, and in accordance with Section 15.32.040 of such Code, 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. 13. Execution of Utility Company Contracts. 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. 14. Severability. 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, 18-20 Resolution No. 2016-7 Page 5 of 5 irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. 15. California Environmental Quality Act. 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, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. 16. Effective Date of Resolution. This Resolution shall take effect immediately upon its adoption. PASSED, APPROVED, and ADOPTED this 12'h day of January, 2016. Diane B. Dixon Mayor ATTEST: Leilani I. Brown City Clerk 18-21 ATTACHMENT D RESOLUTION NO. RESOLUTION OF THE CITY OF NEWPORT BEACH DECLARING ABANDONMENT OF PROCEEDINGS FOR CITY OF NEWPORT BEACH ASSESSMENT DISTRICT NO. 116B WHEREAS, this City Council has previously adopted Resolution No. 2015-98 (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. 11613" (hereinafter referred to as the "Assessment District") pursuant to the terms and provisions of the "Municipal Improvement Act of 1913", being Division 12 of the Streets and Highways Code of the State of California (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"); and WHEREAS, after notice of a public hearing, accompanied by ballot materials, was mailed, a full public hearing on the improvements and assessments was held on January 12, 2016, 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 Council of the City of Newport Beach does hereby RESOLVE, as follows: 18-22 1. Recitals. The above recitals, and each of them, are true and correct. 2. Occurrence of Public Hearing. 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. 3. Majority of Ballots Opposed. 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. 4. Abandonment of Proceedings. 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. 5. Recordation of Resolution. 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. 18-23 6. Effective Date of Resolution. This Resolution shall take effect immediately upon its passage. PASSED, APPROVED, and ADOPTED on January 12, 2016. DIANE B. DIXON, Mayor ATTEST: LEILANI I. BROWN, City Clerk (seal) 18-24 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. I I 6 was duly adopted on January 12, 2016. 3. Reference is hereby made to a Resolution of Intention, Resolution No. 2015-98, adopted on the November 10, 2015 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 November 19, 2015 in Assessment District Maps Book 103, Page 4. EXECUTED this day of , 2016. CITY CLERK 18-25 L FINAL ENGINEER'S REPORT For Underground Utility Assessment District No. 116b (Balboa Blvd / Neptune Ave / 4711 St / 45t1 St / Channel Rd) Prepared under the provisions of the Municipal Improvement Act of 1913 Forthe City of Newport Beach County of Orange, California December 22, 2015 Harris & Associates I r - CITY OF NEWPORT BEACH City of Newport Beach December 22, 2015 Underground Utility Assessment District No. 116b (Balboa Blvd/Neptune Ave 1471h St 1451h St and Channel Rd) Final Engineer's Report TABLE OF CONTENTS APPENDIX A. Assessment Calculations Harris & Associates 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.................................................................................. 8 Table 2 - Debt Limit Valuation.........................................................................10 Exhibit 1 — Method and Formula of Assessment Spread..................................11 PART IV Annual Administrative Assessment...............................................................16 PART V Diagram of Assessment District.....................................................................17 PART VI Description of Facilities..................................................................................19 Right -of -Way Certificate.................................................................................. 20 Certification of Completion of Environmental Proceedings ............................ 21 APPENDIX A. Assessment Calculations Harris & Associates City of Newport Beach December 22, 2015 Underground Utility Assessment District No. 116b (Balboa Blvd/Neptune Ave 147th St 145th St and Channel Rd) Final Engineer's Report Page 1 AGENCY: CITY OF NEWPORT BEACH PROJECT: ASSESSMENT DISTRICT NO. 116b 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 bounded by Balboa Boulevard, Neptune Avenue, 47th Street, 45th Street, and Channel Road. The proposed underground utility improvements will provide conversion to an upgraded utility system and will enhance neighborhood aesthetics, safety and reliability. The construction of these improvements will conform to existing City of Newport Beach, Southern California Edison, AT&T and Time Warner Cable standards. The proposed improvements are of special and direct benefit to the properties within the boundary of the Assessment District. 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. 116b (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 I 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. 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. Harris & Associates City of Newport Beach December 22, 2015 Underground Utility Assessment District No. 116b (Balboa Blvd/Neptune Ave 147th St 145th St and Channel Rd) Final Engineer's Report Page 2 B. 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 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. 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 This report is submitted on December 22, 2015. HARRIS & ASSOCIATES 'C Gl -- ALISON M. BOULEY, P.E. R.C.E. No. C61383 ENGINEER OF WORK CITY OF NEWPORT BEACH STATE OF CALIFORNIA Harris & Associates City of Newport Beach December 22, 2015 Underground Utility Assessment District No. 116b (Balboa Blvd/Neptune Ave 147th St 145th St and Channel Rd) Final Engineer's Report Page 3 Preliminary approval by the CITY COUNCIL of the CITY OF NEWPORT BEACH, CALIFORNIA, on the day of , 2015. 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 , 2016. CITY CLERK CITY OF NEWPORT BEACH STATE OF CALIFORNIA Harris & Associates City of Newport Beach December 22, 2015 Underground Utility Assessment District No. 116b (Balboa Blvd/Neptune Ave 147th St 145th St and Channel Rd) Final Engineer's Report Page 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. 116b, (Balboa Boulevard, Neptune Avenue, 47h Street, 45u' Street, and Channel Road), 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. Said Plans and Specifications for the improvements are 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 City of Newport Beach December 22, 2015 Underground Utility Assessment District No. 116b (Balboa Blvd/Neptune Ave 1471h St 1451h St and Channel Rd) Final Engineer's Report Page 5 Part II Cost Estimate INCIDENTIAL EXPENSES: Assessment Engineering CALCULATION Final Estimate Length in ft. Cost per ft. Utility Engineering & Construction Financial Advisor $20,000.00 Southern Califf 1,130 $310 $350,000.00 AT&T 1,130 $178 $201,000.00 Time Warner 1,130 $84 $95,000.00 Printing, Advertising, Notices $2,500.00 $646,000.00 Contingecy 10% $3,700.00 Subtotal Incidential Expenses $65,000.00 TOTAL CONSTRUCTION Construction $711,000.00 INCIDENTIAL EXPENSES: Assessment Engineering $50,000.00 Contract Inspection $20,000.00 City Administration $20,000.00 Financial Advisor $20,000.00 Bond and Disclosure Counsel $55,000.00 Underwriter's Counsel $15,000.00 Paying Agent $2,500.00 Credit Rating Fee $0.00 Printing, Advertising, Notices $2,500.00 Miscellaneous $3,700.00 Subtotal Incidential Expenses $188,700.00 Construction $711,000.00 Subtotal Incidental & Construction $899,700.00 FINANCIAL COSTS Underwriter's Discount 1.0% $9,700.00 Bond Reserve 5.0% $48,500.00 Capitalized Interest - 5.0% for 3 months 1.3% $12,100.00 Subtotal & Financial Cost 7.3% $70,300.00 TOTAL ESTIMATE $970,000.00 iM Harris & Associates City of Newport Beach December 22, 2015 Underground Utility Assessment District No. 116b (Balboa Blvd/Neptune Ave 147th St 145th St and Channel Rd) Final Engineer's Report Page 6 Part III Assessment Roll and Method of Assessment Spread WHEREAS, on November 10, 1015 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. 2015-98, 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. 116b (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. 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: 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. Harris & Associates City of Newport Beach December 22, 2015 Underground Utility Assessment District No. 116b (Balboa Blvd/Neptune Ave 147th St 145th St and Channel Rd) Final Engineer's Report Page 7 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: For particulars as to the individual assessments and their descriptions, reference is made to Table 1 (Assessment Roll) attached hereto. 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 As Preliminarily Approved As Confirmed Estimated Cost of Design and Construction: $711,000 $711,000 Estimated Incidental Expenses: $188,700 $188,700 Estimated Financial Costs: $70,300 $70,300 Estimated Contribution: $0 $0 Estimated Total to Assessment: $970,000 $970,000 For particulars as to the individual assessments and their descriptions, reference is made to Table 1 (Assessment Roll) attached hereto. 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 City of Newport Beach December 22, 2015 Underground Utility Assessment District No. 116b (Balboa Blvd/Neptune Ave 147th St 145th St and Channel Rd) Final Engineer's Report Page 8 Table 1 Assessment Roll Asmt No. Assessor's Parcel Number Total True Value Existing Liens Assessments as Preliminarily Approved Assessments as Confirmed and Recorded Value to Lien Ratio 1 2 42441201 42441202 $ $ 763,937 371,241 $ - $ - $21,896.15 $18,970.09 $21,896.15 $18,970.09 35 20 3 42441203 $ 658,699 $ - $18,970.08 $18,970.08 35 4 93061448 $ 848,482 $ - $9,482.94 $9,482.94 89 5 93061449 $ 1,019,980 $ - $9,482.94 $9,482.94 108 6 42441205 $ 602,298 $ - $18,970.08 $18,970.08 32 7 93061450 $ 1,044,000 $ - $9,482.94 $9,482.94 110 8 9 93061451 42441207 $ $ 832,373 117,602 $ - $ - $9,482.94 $18,970.08 $9,482.94 $18,970.08 88 6 10 42441208 $ 525,161 $ - $18,709.98 $18,709.98 28 11 42441209 $ 289,820 $ - $15,679.05 $15,679.05 18 12 42441210 $ 1,280,763 $ - $17,187.18 $17,187.18 75 13 42441211 $ 122,396 $ - $17,187.19 $17,187.19 7 14 42441212 $ 430,808 $ - $17,187.19 $17,187.19 25 15 42441213 $ 210,600 $ - $17,187.19 $17,187.19 12 16 42441214 $ 1,500,078 $ - $17,187.19 $17,187.19 87 17 42441215 $ 1,507,749 $ - $17,187.19 $17,187.19 88 18 42441216 $ 79,351 $ - $17,187.19 $17,187.19 5 19 20 42441217 42441218 $ $ 643,698 80,107 $ - $ - $17,187.19 $17,187.19 $17,187.19 $17,187.19 37 5 21 42441219 $ 732,250 $ - $17,042.46 $17,042.46 43 22 42329114 $ 826,153 $ - $17,743.03 $17,743.03 47 23 24 42329113 42329110 $ $ 539,992 159,406 $ - $ - $20,413.19 $19,756.66 $20,413.19 $19,756.66 26 8 25 42329109 $ 1,045,102 $ - $17,224.93 $17,224.93 61 26 42329105 $ 415,782 $ - $17,208.17 $17,208.17 24 27 42329104 $ 139,959 $ - $19,517.55 $19,517.55 7 28 42329102 $ 764,212 $ - $18,131.08 $18,131.08 42 29 42329103 $ 393,119 $ - $18,093.32 $18,093.32 22 30 42329106 $ 124,280 $ - $17,136.84 $17,136.84 7 31 42329108 $ 794,902 $ - $17,187.19 $17,187.19 46 32 42441301 $ 973,380 $ - $17,187.19 $17,187.19 57 33 42441302 $ 1,013,339 $ - $17,187.19 $17,187.19 59 34 35 42441303 42441304 $ $ 623,513 85,765 $ - $ - $17,187.19 $17,187.19 $17,187.19 $17,187.19 36 5 36 42441305 $ 641,917 $ - $17,187.19 $17,187.19 37 37 42441306 $ 466,689 $ - $17,187.19 $17,187.19 27 38 39 42441307 42441308 $ $ 114,107 591,222 $ - $ - $17,187.19 $17,187.19 $17,187.19 $17,187.19 7 34 40 42441309 $ 456,777 $ - $17,187.19 $17,187.19 27 41 42441310 $ 614,042 $ - $17,090.71 $17,090.71 36 42 42441315 $ 730,720 $ - $18,504.43 $18,504.43 39 43 42441316 $ 414,236 $ - $17,187.19 $17,187.19 24 44 42441317 $ 173,137 $ - $17,187.19 $17,187.19 10 45 42441318 $ 106,567 $ - $17,187.19 $17,187.19 6 Harris & Associates City of Newport Beach December 22, 2015 Underground Utility Assessment District No. 116b (Balboa Blvd/Neptune Ave 147th St 145th St and Channel Rd) Final Engineer's Report Page 9 Asmt No. Assessor's Parcel Number Total True Value Existing Liens Assessments as Preliminarily Approved Assessments as Confirmed and Recorded Value to Lien Ratio 46 47 42441319 42441320 $ $ 386,161 109,581 $ - $ - $17,187.19 $17,187.19 $17,187.19 $17,187.19 22 6 48 49 42441321 42441322 $ $ 272,455 1,376,744 $ - $ - $17,187.19 $17,187.19 $17,187.19 $17,187.19 16 80 50 42441323 $ 406,114 $ - $17,187.19 $17,187.19 24 51 42441324 $ 883,296 $ - $17,088.60 $17,088.60 52 52 42329401 $ 526,572 $ - $18,791.80 $18,791.80 28 53 42329101 $ 800,004 $ - $82,105.84 $82,105.84 10 $ 30,630,638 $ - $970,000.00 $970,000.00 32 Harris & Associates City of Newport Beach December 22, 2015 Underground Utility Assessment District No. 116b (Balboa Blvd/Neptune Ave 147th St 145th St and Channel Rd) Final Engineer's Report Page 10 Table 2 Debt Limit Valuation A. ESTIMATED BALANCE TO ASSESSMENT $970,000 B. UNPAID SPECIAL ASSESSMENTS $0 TOTAL A & B $970,000 C. TRUE VALUE OF PARCELS $30,630,638 ** AVERAGE VALUE TO LIEN RATIO 32:1 Unpaid Special Assessments shall consist of the total principal sum of all unpaid special assessments previously levied or proposed to be levied other than in the instant proceedings. ** 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 22, 2015. 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 City of Newport Beach December 22, 2015 Underground Utility Assessment District No. 116b (Balboa Blvd/Neptune Ave 147th St 145th St and Channel Rd) Final Engineer'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. SPECIAL BENEFITS In further making the analysis, it is necessary that the properties receive a special benefit distinguished from general benefits conferred on real property located in the District or to the public at large. 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. Harris & Associates City of Newport Beach December 22, 2015 Underground Utility Assessment District No. 116b (Balboa Blvd/Neptune Ave 147th St 145th St and Channel Rd) Final Engineer's Report Page 12 The proposed replacement of existing overhead utility facilities (power, telephone and cable facilities) with underground facilities and removal of the existing utility poles and the overhead wires will provide a special benefit to the parcels connected to and 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 overhead facilities receive an aesthetic benefit. This benefit is based on the area 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. Properties immediately adjacent to the facilities usually have a greater risk. Furthermore, in compact communities like the Balboa Peninsula, the negative effects of falling lines and poles are more widespread including blocked roadways and alleys, and property damage due to impact. Properties that are adjacent to, or in proximity of, overhead facilities receive a safety benefit. This benefit is equal for all parcels receiving this benefit and is therefore 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, or have the ability to connect to, the facilities proposed to be undergrounded receive a connection benefit. This benefit is equal for all parcels receiving this benefit and is therefore based on the average parcel area within the Assessment District boundary. 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. In addition, properties will receive easier access to garage parking within the residential alleyways. Therefore, the proposed improvements are of direct and special benefit to these properties. GENERAL BENEFITS Section 4 of Article XIIID requires that the general benefits imparted by the utility undergrounding project be separated from the special benefits and that only the special benefit portion of the costs of the project be assessed against those parcels which are identified as receiving special benefits. Separating the general from the special benefits requires an examination of the facts and circumstances of the project and the property being assessed. In this particular assessment district, the streets and alleys along which the existing overhead utility facilities are being undergrounded function as local and collector streets. No other 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 Harris & Associates City of Newport Beach December 22, 2015 Underground Utility Assessment District No. 116b (Balboa Blvd/Neptune Ave 147th St 145th St and Channel Rd) Final Engineer's Report Page 13 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. The properties situated within the Assessment District are used almost exclusively 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 and having a destination outside the boundary. Based on these facts and circumstances, any general benefits to the property within the Assessment District, 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. 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 $970,000 is apportioned to the parcels within the District, no parcel is assessed more than its proportional share of the special benefits from the improvements. METHODOLOGY 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, 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. Harris & Associates City of Newport Beach December 22, 2015 Underground Utility Assessment District No. 116b (Balboa Blvd/Neptune Ave 147th St 145th St and Channel Rd) Final Engineer's Report Page 14 The area of a condominium is calculated by taking the area of the base parcel and dividing by the number of condominiums. The special benefits from the undergrounding of overhead utilities are categorized into the three (3) distinct benefits identified above. All parcels within the District, except for any exceptions identified below, receive 3 of the 3 benefits. For the Improved Aesthetics Benefit the parcel area is multiplied by 1 to calculate the "Aesthetics Benefit Area". For the "Additional Safety Benefit", each parcel is considered to receive 1 unit of benefit. For condominiums, each unit is assigned 0.5 safety benefit unit. The average parcel size, 2,822 square feet, is multiplied by the safety benefit factor to calculate the "Safety Benefit Area". For the Connection Benefit, each lot is assigned 1 benefit unit. For condominiums, each unit is assigned a 0.5 connection benefit. The average parcel area, 2,822 square feet, within the district is multiplied by the benefit unit for each parcel to determine "Connection 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, divided by 3. See Appendix A for the assessment calculations for each parcel within the District. Exceptions There are no exceptions to the above methodology. 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. 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 22, 2015 �I HARRIS & ASSOCIATES ALISON M. BOULEY, .E. R.C.E. No. C61383 No. C61383 rn ASSESSMENT ENGINEER * CITY OF NEWPORT BEACH GIvy%- ��� COUNTY OF ORANGE, STATE OF CALIFORNIA Harris & Associates City of Newport Beach December 22, 2015 Underground Utility Assessment District No. 116b (Balboa Blvd/Neptune Ave 147th St 145th St and Channel Rd) Final Engineer's Report Page 15 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 , 20_. SUPERINTENDENT OF STREETS CITY OF NEWPORT BEACH STATE OF CALIFORNIA Harris & Associates City of Newport Beach December 22, 2015 Underground Utility Assessment District No. 116b (Balboa Blvd/Neptune Ave 147th St 145th St and Channel Rd) Final Engineer's Report Page 16 Part IV Annual Administrative Assessment A proposed maximum annual administrative assessment shall be levied on each parcel of land and subdivision of land within the Assessment District to pay for necessary costs and expenses incurred by the CITY OF NEWPORT BEACH, and not otherwise reimbursed, resulting from the administration and collection of assessments, from the administration or registration of any bonds and reserve or other related funds, or both. The maximum assessment is authorized pursuant to the provisions of Section 10204(f) of the Streets and Highways Code and shall not exceed fifty dollars ($50) 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. The annual administrative assessment 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. Harris & Associates City of Newport Beach December 22, 2015 Underground Utility Assessment District No. 116b (Balboa Blvd/Neptune Ave 147th St 145th St and Channel Rd) Final Engineer's Report Page 17 Part V Diagram of Assessment District 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 City of Newport Beach December 22, 2015 Underground Utility Assessment District No. 116b (Balboa Blvd/Neptune Ave 147th St 145th St and Channel Rd) Final Engineer's Report Page 18 51 Mg��j w m LO " ©� 010 0, OO H o� OO �Z[°a ®® O.9 o_g ~ Q z Q� m C.10LL Owe 1S H156 '`a zoFms®Odr°' 00�®�®A a®® 000 0 W Z CO �W20F �, WARN 'y ®� �n1 �WWo goo®000000 30 Q a N 15 in HAP W ❑ k L9❑ffi W W w o N tD NQ W h W � ` O N FI 6y N IW - m 1S HIL4 M - N CL y� O - ON7 m W m Harris & Associates City of Newport Beach December 22, 2015 Underground Utility Assessment District No. 116b (Balboa Blvd/Neptune Ave 147th St 145th St and Channel Rd) Final Engineer's Report Page 19 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 referenced 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. I I6b: 1. Acquisition of any required easements or rights-of-way; 2. Removal of existing utility poles; 3. Removal of overhead resident 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 Time Warner Cable. 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 Time Warner Cable. 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 City of Newport Beach Underground Utility Assessment District No Final Engineer's Report STATE OF CALIFORNIA COUNTY OF ORANGE CITY OF NEWPORT BEACH December 22, 2015 116b (Balboa Blvd/Neptune Ave 147th St 145th St and Channel Rd) Paae 20 Right -of -Way Certificate 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. 116b (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 , 2015, at CITY OF NEWPORT BEACH, CALIFORNIA. SUPERINTENDENT OF STREETS CITY OF NEWPORT BEACH STATE OF CALIFORNIA Lo DAVID WEBB, PE Harris & Associates City of Newport Beach December 22, 2015 Underground Utility Assessment District No. 116b (Balboa Blvd/Neptune Ave 147th St 145th St and Channel Rd) Final Engineer's Report Page 21 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: 1. 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. 116b (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 , 2015, at CITY OF NEWPORT BEACH, CALIFORNIA. DAVID WEBB, P.E. CITY OF NEWPORT BEACH STATE OF CALIFORNIA Harris & Associates City of Newport Beach 2 3 4 42441202 42441203 93061448 3,400 3,400 1,699 December 22, 2015 Underground Utility Assessment District No. 116b (Balboa Blvd/Neptune Ave / 47th St / 45th St and Channel Rd) 3,015 3,015 1,507 $13,904.89 $13,904.88 $6,950.90 Final Engineer's Report $3,315.37 $1,374.84 $1,374.84 $687.27 $18,970.09 $18,970.08 $9,482.94 Appendix A - Page 1 134 1/2 47TH ST 5 Appendix A - Assessment Calculations 1,699 1,699 1,411 Assessor's Aesthetics Safety Connection Assessed Total Final Property Asmt Parcel Parcel Benefit Benefit Benefit Benefit Construction Incidental Financial Total Address No. Number Area (sf) Area Area Area Area Costs Expenses Costs Assessment 146 AB&C 47TH ST 1 42441201 4,795 4,795 2,822 2,822 3,480 $16,049.66 $4,259.58 $1,586.91 $21,896.15 142 &142 1/2 47TH ST 138 A&B 47TH ST 134 47TH ST 2 3 4 42441202 42441203 93061448 3,400 3,400 1,699 3,400 3,400 1,699 2,822 2,822 1,411 2,822 2,822 1,411 3,015 3,015 1,507 $13,904.89 $13,904.88 $6,950.90 $3,690.36 $3,690.36 $1,844.77 $3,315.37 $1,374.84 $1,374.84 $687.27 $18,970.09 $18,970.08 $9,482.94 $17,042.46 134 1/2 47TH ST 5 93061449 1,699 1,699 1,411 1,411 1,507 $6,950.90 $13,005.46 $1,844.77 $3,451.66 $687.27 $9,482.94 $17,187.19 130 &130 1/2 47TH ST 6 42441205 3,400 3,400 2,822 2,822 3,015 $13,904.88 3,244 $3,690.36 $3,343.53 $1,374.84 $18,970.08 $1,479.43 126 A 47TH ST 7 93061450 1,699 1,699 1,411 1,411 1,507 $6,950.90 2,822 $1,844.77 $14,481.43 $687.27 $9,482.94 $17,187.19 126 B 47TH ST 8 93061451 1,699 1,699 1,411 1,411 1,507 $6,950.90 2,822 2,822 $1,844.78 2,737 2,735 $687.26 $9,482.94 $3,350.87 $3,347.61 122 A&B 47TH ST 9 42441207 3,400 3,400 2,822 2,822 3,015 $13,904.88 3,661 3,000 $3,690.37 2,822 2,822 $1,374.83 $18,970.08 $17,090.71 118 &118 1/2 47TH ST 10 42441208 3,276 3,276 2,822 2,822 2,973 $13,714.23 2,982 $3,639.77 2,822 $1,355.98 $18,709.98 $18,504.43 115 46TH ST 11 42441209 1,831 1,831 2,822 2,822 2,492 $11,492.59 2,526 $3,050.14 $1,136.32 $15,679.05 2,723 117 A&B 46TH ST 12 42441210 2,550 2,550 2,822 2,822 2,731 $12,598.03 2,731 $3,343.53 $1,245.62 $17,187.18 119 A&B 46TH ST 13 42441211 2,550 2,550 2,822 2,822 2,731 $12,598.03 2,822 $3,343.53 $12,598.03 $1,245.63 $17,187.19 121 A&B 46TH ST 14 42441212 2,550 2,550 2,822 2,822 2,731 $12,598.03 $3,343.53 $1,245.63 $17,187.19 123 46TH ST 15 42441213 2,550 2,550 2,822 2,822 2,731 $12,598.03 $3,343.53 $1,245.63 $17,187.19 125 &125 1/2 46TH ST 16 42441214 2,550 2,550 2,822 2,822 2,731 $12,598.03 $3,343.53 $1,245.63 $17,187.19 127 A&B 46TH ST 129 A&B 46TH ST 131 A&B 46TH ST 17 18 19 42441215 42441216 42441217 2,550 2,550 2,550 2,550 2,550 2,550 2,822 2,822 2,822 2,822 2,822 2,822 2,731 2,731 2,731 $12,598.03 $12,598.03 $12,598.03 $3,343.53 $3,343.53 $3,343.53 $1,245.63 $1,245.63 $1,245.63 $17,187.19 $17,187.19 $17,187.19 4601 BALBOA BLVD 21 42441219 2,481 2,481 2,822 2,822 2,708 $12,491.95 $3,315.37 $1,235.14 $17,042.46 4508 A&B RIVER AVE 22 42329114 2,815 2,815 2,822 2,822 2,820 $13,005.46 $3,451.66 $1,285.91 $17,187.19 $17,743.03 120 &120 1/2 46TH ST 4506 A&B RIVER AVE 23 42329113 4,088 4,088 2,822 2,822 3,244 $14,962.66 $3,343.53 $3,971.10 $1,245.63 $1,479.43 $20,413.19 39 4419 RIVER AVE 24 42329110 3,775 3,775 2,822 2,822 3,140 $14,481.43 $3,843.38 $17,187.19 $1,431.85 116 A&B 46TH ST $19,756.66 42441309 4411 RIVER AVE 4409 RIVER AVE 25 26 42329109 42329105 2,568 2,560 2,568 2,560 2,822 2,822 2,822 2,822 2,737 2,735 $12,625.70 $12,613.41 $1,245.63 $3,350.87 $3,347.61 $1,248.36 $1,247.15 41 $17,224.93 $17,208.17 2,504 4401 A&B RIVER AVE 4404 &4404 1/2 CHANNEL RD 27 28 42329104 42329102 3,661 3,000 3,661 3,000 2,822 2,822 2,822 2,822 3,102 2,881 $14,306.16 $13,284.89 $17,090.71 $3,796.87 $3,527.15 $1,414.52 $1,314.04 42 $19,517.55 $18,131.08 3,178 4406 &4406 1/2 CHANNEL RD 29 42329103 2,982 2,982 2,822 2,822 2,875 $13,262.22 $18,504.43 $3,519.80 117 &119 45TH ST $1,311.30 42441316 $18,093.32 2,550 4408 &4408 1/2 CHANNEL RD 30 42329106 2,526 2,526 2,822 2,822 2,723 $12,561.13 $3,333.73 44 $1,241.98 2,550 $17,136.84 2,822 124 A&B 46TH ST 36 42441305 2,550 2,550 2,822 2,822 2,731 $12,598.03 $3,343.53 $1,245.63 $17,187.19 122 46TH ST 37 42441306 2,550 2,550 2,822 2,822 2,731 $12,598.03 $3,343.53 $1,245.63 $17,187.19 120 &120 1/2 46TH ST 38 42441307 2,550 2,550 2,822 2,822 2,731 $12,598.03 $3,343.53 $1,245.63 $17,187.19 118 46TH ST 39 42441308 2,550 2,550 2,822 2,822 2,731 $12,598.03 $3,343.53 $1,245.63 $17,187.19 116 A&B 46TH ST 40 42441309 2,550 2,550 2,822 2,822 2,731 $12,598.03 $3,343.53 $1,245.63 $17,187.19 114 46TH ST 41 42441310 2,504 2,504 2,822 2,822 2,716 $12,527.31 $3,324.76 $1,238.64 $17,090.71 115 A&B 45TH ST 42 42441315 3,178 3,178 2,822 2,822 2,941 $13,563.56 $3,599.78 $1,341.09 $18,504.43 117 &119 45TH ST 43 42441316 2,550 2,550 2,822 2,822 2,731 $12,598.03 $3,343.53 $1,245.63 $17,187.19 121 45TH ST 44 42441317 2,550 2,550 2,822 2,822 2,731 $12,598.03 $3,343.53 $1,245.63 $17,187.19 123 45TH ST 45 42441318 2,550 2,550 2,822 2,822 2,731 $12,598.03 $3,343.53 $1,245.63 $17,187.19 Harris & Associates City of Newport Beach Underground Utility Assessment District No. 116b (Balboa Blvd/Neptune Ave 147th St 145th St and Channel Rd) Final Engineer's Report Appendix A - Assessment Calculations December 22, 2015 Appendix A - Page 2 Property Address Asmt No. Assessor's Parcel Number Parcel Area (sf) Aesthetics Benefit Area Safety Benefit Area Connection Assessed Benefit Benefit Area Area Total Construction Costs Incidental Expenses Financial Costs Final Total Assessment 125 &125 1/2 45TH ST 46 42441319 2,550 2,550 2,822 2,822 2,731 $12,598.03 $3,343.53 $1,245.63 $17,187.19 127 45TH ST 47 42441320 2,550 2,550 2,822 2,822 2,731 $12,598.03 $3,343.53 $1,245.63 $17,187.19 129 &129 1/2 45TH ST 48 42441321 2,550 2,550 2,822 2,822 2,731 $12,598.03 $3,343.53 $1,245.63 $17,187.19 131 A&B 45TH ST 49 42441322 2,550 2,550 2,822 2,822 2,731 $12,598.03 $3,343.53 $1,245.63 $17,187.19 133 A&B 45TH ST 50 42441323 2,550 2,550 2,822 2,822 2,731 $12,598.03 $3,343.53 $1,245.63 $17,187.19 135 45TH ST 51 42441324 2,503 2,503 2,822 2,822 2,716 $12,525.77 $3,324.35 $1,238.48 $17,088.60 4401 & 4405 CHANNEL RD 52 42329401 3,315 3,315 2,822 2,822 2,986 $13,774.20 $3,655.68 $1,361.92 $18,791.80 4400 CHANNEL RD 53 42329101 33,500 33,500 2,822 2,822 13,048 $60,182.73 $15,972.55 $5,950.56 $82,105.84 Total 154,149 $711,000.00 $188,700.00 $70,300.00 $970,000.00 Harris & Associates ATTACHMENT F City of Newport Beach BUDGET AMENDMENT 2015-16 EFFECT ON BUDGETARY FUND BALANCE: Increase Revenue Estimates Ex Increase Expenditure Appropriations AND Transfer Budget Appropriations SOURCE: from existing budget appropriations from additional estimated revenues X from unappropriated fund balance EXPLANATION: NO. BA- 16BA-024 AMOUNT:1 $130,560.00 Increase in Budgetary Fund Balance X Decrease in Budgetary Fund Balance No effect on Budgetary Fund Balance This budget amendment is requested to provide for the following: To authorize and transfer the amount of $130,560 to initiate the work associated with Assessment District #116B If the District is not successful in formation, funds advanced to this district cannot be recovered from the proposed district property owners and would therefore be expensed against future General Fund Resources. ACCOUNTING ENTRY: BUDGETARY FUND BALANCE Fund Obiect Description 661 300000 Assessment District #116B - Fund Balance REVENUE ESTIMATES (360 1) Fund/Division Account Description EXPENDITURE APPROPRIATIONS (3603) Signed: Signed: Signed: I Approval: Finance Administrative Approval: City Manag City Council Approval: City Clerk Amount Debit $105,560.00 $25,000.00 Automatic System Entry. Credit $35,000.00 $10,560.00 $85,000.00 I &— I(e Date Date Date e, Description Org Number 66102 Assessment District #116B Object Number 941027 AD Electrical Design Object Number 941005 AD Phone Design Object Number 941006 AD Engineering Services Org Number 65002 Assessment District Capital Project Fund Object Number 941006 AD Engineering Services Signed: Signed: Signed: I Approval: Finance Administrative Approval: City Manag City Council Approval: City Clerk Amount Debit $105,560.00 $25,000.00 Automatic System Entry. Credit $35,000.00 $10,560.00 $85,000.00 I &— I(e Date Date Date e,