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Home My WebLink About06 - Proposed Assessment District No. 113 —West Balboa Island, North Bayfront, South Bayfront and Agate AvenueCITY OF ?�PORr NEWPORT BEACH City Council Staff Report September 25, 2018 Agenda Item No. 6 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: David A. Webb, Public Works Director - 949-644-3311, dawebb@newportbeachca.gov PREPARED BY: Michael J. Sinacori, Acting City Engineer PHONE: 949-644-3342 TITLE: Proposed Assessment District No. 113 —West Balboa Island, North Bayfront, South Bayfront and Agate Avenue ABSTRACT: The property owners on West Balboa Island between North Bay Front, South Bay Front and Agate Avenue have submitted a Petition requesting formation of an underground utility assessment district (AD -113). The City Council certified the Petition for AD -113 on February 14, 2017. City Council is asked to declare its intention to levy assessments and issue bonds to finance the undergrounding, approve the Assessment Engineer's Report, and set November 27, 2018, as the time and place of a Public Hearing for AD -113. RECOMMENDATION: a) Staff recommends the City Council acknowledge that on February 14, 2017, the City Council deemed this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15302(d) (conversion of overhead electric utility distribution system facilities to underground including connection to existing overhead electric utility distribution lines where the surface is restored to the condition existing prior to the undergrounding). b) Adopt Resolution No. 2018-68, 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. 113; c) Adopt Resolution No. 2018-69, 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. 113; d) Per City Council Policy L-28 (Assessment Ballot Guidelines), determine that the City will not participate in the AD -113 balloting process for the Carol Beek/Balboa Island Park or the public restroom property near the Ferry Crossing by neither voting for nor against the assessment; and 6-1 Proposed Assessment District No. 113 —West Balboa Island, North Bayfront, South Bayfront and Agate Avenue September 25, 2018 Page 2 e) Approve Budget Amendment No.19BA-009 appropriating $30,000 to Account No. 66302-941006 for Engineering Services to ballot and tabulate voting for AD -113. FUNDING REQUIREMENTS: Funds will be provided by property owner contributions and/or bond proceeds if the Assessment District is approved. If AD -113 is formed, the City will be responsible for the estimated assessments for the Carol Beek Center/Balboa Island Park and the Public Restroom property near the ferry ($153,336). Based on City Council input, a $61,620 Professional Services Agreement with Penco Engineering was executed to complete the Engineer's Report for property owners to consider undergrounding for AD -113 formation. Approximately $50,000 of these funds are expended to date. During preparation of the Engineer's Report, the Assessment Engineer resigned from Penco Engineering and is now with a new firm, NV5. Since the District's Assessment Engineer is now with NV5, staff is working on a Professional Services Agreement with NV5 to complete the assessment engineering effort (mainly for balloting and addressing resident questions). These services cost $30,000 and require a budget amendment to fund balloting and tabulation services. If the district is not successfully formed following the vote, the General Funds utilized for the preparation of the Engineer's Report and balloting effort, including legal fees from outside bond counsel, would not be recovered from the proposed district property owners. If the district is successfully formed, then these costs will be covered from the respective property owners within the district. DISCUSSION: Owners of properties located in the Proposed Assessment District submitted a Petition to the City requesting the formation of a special assessment district to underground overhead utilities. On January 10, 2017 the assessment engineer certified that owners representing more than 60 percent of the assessable property area within AD -113 had signed the Petition for undergrounding overhead utilities. On February 14, 2017, the City Council approved Resolution No. 2017-11 certifying the Petition for AD -113. AD -113 Assessment District is being 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 associated proceedings. As a result of the high construction cost escalations witnessed this past year for AD -111, 116, 116b and 117, staff was unable to bring the Preliminary Engineers Report for AD - 113 forward. During the Petition stage of this project the estimated cost per parcel was $24,700. However based on the AD -117 bids received this year, the cost is now estimated at $29,070 per parcel, which also assumes the City will be managing the construction instead of SCE. The proponents of this district have been patiently awaiting completion of the Engineer's Report and now have asked Staff to move this project forward to a vote before the end of the year. They also understand the increased cost since the petition approval. 6-2 Proposed Assessment District No. 113 —West Balboa Island, North Bayfront, South Bayfront and Agate Avenue September 25, 2018 Page 3 Municipal Improvement Act of 1913 governs the procedures used to create assessment districts. 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 AD -113. 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 for the benefit of utilities. 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 -113 is formed; an assessment lien would be recorded on the title of properties included in the District. Thereafter, a cash collection period would take place to provide property owners with an opportunity to prepay their assessment and remove the assessment lien. A second cash collection period is also anticipated prior to the bond sale, which is anticipated to occur prior to construction and after design is complete. The total assessment for Proposed Assessment District No. 113 is estimated as follows: Proposed Assessment District No. 113 ITEM COST Cost of Design and Construction $5,109,000.00 Incidental Costs and Expenses $712,500.00 Financing Bond Costs $428,000.00 Estimated Total Cost: $6,249,600.00 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 property owner is encouraged to contact a licensed electrical contractor to assess its particular property needs. The following is a tentative schedule for proposed Assessment District No. 113: Resolution of Intention September 25, 2018 Public Hearing November 27, 2018 Utility Companies Design Completed December 2020 Tentative Bond Sale Period May thru July 2021 City managed utility construction work commences August 2021 Property owners notified to install service connections September 2022 rope y owners complete conversions March 2023 Public Utilities begin to remove overhead structures April 2023 Public utilities finish removing poles and overhead structures October 2023 6-3 Proposed Assessment District No. 113 —West Balboa Island, North Bayfront, South Bayfront and Agate Avenue September 25, 2018 Page 4 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. 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. • 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 Balboa Island, the negative effects of falling lines and poles are more widespread including blocked driveways and alleys, and property damage due to impact. Properties that are adjacent to, or in proximity of, overhead facilities receive a safety benefit. • 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. The following is a summary of properties with unique considerations: Assessment Nos. 1, 2, 3 and 60. Pole and guy wires will remain adjacent to these properties, but the properties will be connected to new undergrounded system and power and cable lines will go underground adjacent to their properties. Therefore, these properties will be assigned zero (0) aesthetic benefits; all other benefits will be assigned. Assessment No.67. The poles, wires and guy wires to be undergrounded are not in close proximity to the access point for this property and do not provide significant aesthetic benefit to this property. This property is directly oriented to the bay and receives no aesthetic benefit derived from undergrounding in the alleys. The poles, wires and guy wires to be underground are not in close proximity to this property and would not encroach on this property should they fall. Therefore, this property is assigned zero (0) aesthetic benefit and zero (0) safety benefit. It does connect to the new system and will be assigned a connection benefit. M. Proposed Assessment District No. 113 —West Balboa Island, North Bayfront, South Bayfront and Agate Avenue September 25, 2018 Page 5 Assessment No. 61. Pole and guy wires will remain adjacent to this property; power and cable lines will go underground adjacent to the property. The property will not connect to the new underground system. Therefore, this property will not receive a connection benefit but aesthetic benefit is improved but not completely, so it is assigned a Y2 aesthetic benefit. It does receive the safety benefit as adjacent power and cable wires are being undergrounded. Ballot Tabulation Procedures: All assessment ballots submitted to the City Clerk prior to the close of the public hearing recommended to be set for November 27, 2018, will be tabulated per the ballot tabulation procedures directed by City Council Policy L-28. ENVIRONMENTAL REVIEW: On February 14, 2017 the City Council deemed this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15302(d) (conversion of overhead electric utility distribution system facilities to underground including connection to existing overhead electric utility distribution lines where the surface is restored to the condition existing prior to the undergrounding). 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 — Resolution of Intention No. 2018-68 Attachment B — Resolution No. 2018-69 Attachment C — Preliminary Engineer's Report for AD 113 Attachment D — Budget Amendment 6-5 ATTACHMENT RESOLUTION NO. 2018- 68 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. 113 WHEREAS, the City Council of the City of Newport Beach ("City") desires to provide certain property located in the City with the undergrounding of electric, telephone and cable facilities, and the removal of poles, overhead wires, guys, anchors and appurtenant work therewith as further described in Section 3 hereof ("Improvements") and to order the formation of an Assessment District to pay the costs thereof under and pursuant to the provisions of the Municipal Improvement Act of 1913 (the "1913 Act"); WHEREAS, the proposed assessment district, if it is formed, is to be known and designated as Assessment District No. 113 ("Assessment District"); WHEREAS, the proposed boundaries of the Assessment District are shown on a map which indicates by a boundary line the extent of the territory proposed to be included in the Assessment District, which map is designated "Boundary of Proposed Assessment District No. 113" ("Map"), which Map is on file in the office of the City Clerk; WHEREAS, the City Council has been presented with petitions signed by at least fifty percent (50%) of the property owners located within the boundaries of the proposed Assessment District requesting the formation of the Assessment District to finance the Improvements; WHEREAS, pursuant to California Streets and Highways Code Section 5896.8, there is on file with the City Clerk a certificate of Penco Engineering/NV5 certifying the sufficiency of such petitions; WHEREAS, it appears to the City Council that the Assessment District should be formed to finance the installation of said Improvements under the provisions of the 1913 Act; Resolution 2018 - Page 2 of 7 WHEREAS, the City Engineer, with the assistance of Penco Engineering/NV5, is competent to make and file with the City Clerk the report with regard to the Improvements, which report is required by the 1913 Act to be made and filed; WHEREAS, the conversion of overhead electric utility distribution system facilities to underground, including connection to existing overhead electric utility distribution lines where the surface is restored to the condition existing prior to undergrounding, is categorically exempt from the California Environmental Quality Act (Public Resources Code Section 21000 et seq.) ("CEQA") and its implementing guidelines (14 California Code of Regulations Section 15000 et seq.) ("Guidelines") pursuant to Section 15302(d) of the Guidelines; WHEREAS, before ordering the Improvements, the City Council is required, under the 1913 Act, to adopt a resolution declaring its intention to do so; WHEREAS, the City Council intends to consider issuing bonds secured by the assessments to be levied on property in the Assessment District pursuant to the Improvement Bond Act of 1915, being Division 10 (commencing with Section 8500) of the Streets and Highways Code ("1915 Act"); and WHEREAS, before issuing bonds, the City Council is required, under the 1915 Act, to adopt a resolution declaring its intention to do so. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The above recitals, and each of them, are true and correct and are incorporated into the substantive portion of this resolution. Section 2: The Map is hereby approved, adopted and declared to describe the proposed boundaries of the Assessment District; and it shall govern for all details as to the extent of the Assessment District. The City Clerk is hereby directed to endorse her certificate on the original of the Map evidencing the date and adoption of this resolution and to file said Map in her office, and to file a copy of said Map so endorsed with the County Recorder of Orange, California within fifteen (15) days after the adoption of the resolution fixing the time and place of hearing on the formation and extent of the Assessment District. Section 3: The Improvements generally include the undergrounding of existing electric, telephone and cable facilities, including the removal of poles, overhead wires, guys and anchors and the installation of new underground service connections and new 6-7 Resolution 2018 - Page 3 of 7 streetlights and appurtenant work therewith as shown on the Map. The improvements will be designed by the Southern California Edison Company ("Edison") and other utility providers. Either Edison, the City, or the City's contractors will construct the Improvements, and the City will inspect the work to ensure conformance to City standards and specifications where applicable. Once completed, the underground facilities will become the property and responsibility of Edison and such other utility providers. Each owner of property located within the Assessment District will be responsible for arranging and paying for work on his or her property necessary to connect facilities constructed by the public utilities in the public streets to the points of connection on the private property owned by the property owner. Conversion of individual service connections on private property is not included in the work done by the Assessment District. Failure to convert individual service connections on private property may result in a recommendation to the City Council that the public utilities be directed to discontinue service to that property. Overhead facilities cannot be removed until all overhead service has been discontinued. Section 4: The City Council hereby finds and declares that the public interest and necessity require the Improvements, and the Improvements will be of direct and special benefit to the properties and land within the Assessment District. The City Council hereby declares its intention to order the conversion of the existing overhead electric and communication facilities to underground locations, and the acquisition of the Improvements, to make the expenses thereof chargeable upon the area included within the Assessment District, and to form the Assessment District. Section 5: The City Council further declares its intention to levy a special assessment upon the land within the Assessment District in accordance with the respective special and direct benefit to be received by each parcel of land from the Improvements. Section 6: This City Council finds and determines that before ordering the acquisition of the Improvements it shall take proceedings pursuant to the 1913 Act and pursuant to Part 7.5 of the Special Assessment Investigation, Limitation and Majority Protest Act of 1931, Streets and Highways Code Section 2960 et seq. (the 1931 Act"). Section 7: Penco Engineering/NV5 is appointed the Assessment Engineer. The Assessment Engineer is hereby authorized and directed to make and file with the City Clerk a written report with regard to the 1913 Act ("Report"), which Report shall comply with the requirements of Section 10204 and Section 2961 of the Streets and Highways Code and Article XIIID of the California Constitution and shall contain the following: (a) Plans and specifications for the Improvements; .: Resolution 2018 - Page 4 of 7 (b) A general description of works or appliances already installed and any other property necessary or convenient for the operation of the Improvements, if the works, appliances or property are to be acquired as part of the Improvements; (c) An estimate of the cost of the Improvements, and the cost of land, rights of ways, easements, and incidental expenses in connection with the Improvements, including the cost of registering bonds; (d) A diagram showing the exterior boundaries of the Assessment District, the boundaries of any zones within the Assessment District and the lines and dimensions of each parcel of land within the Assessment District as they existed at the time of passage of this resolution (each subdivision to be given a separate number on the diagram); (e) A proposed assessment of the total amount of the cost and expenses of the proposed Improvements upon the several subdivisions of land in the Assessment District in proportion to the estimated benefits to be received by such subdivision, respectively, from the Improvements (the assessment shall refer to the subdivisions by their respective numbers assigned as provided in (d) above); and (f) A proposed maximum annual assessment upon each of the several subdivisions of land in the Assessment District to pay costs incurred by the City and not otherwise reimbursed which result from the administration and collection of assessments or from the administration or registration of any associated bonds and reserve or other related funds. In addition, the Report shall contain the information required by the 1931 Act as set forth in Streets and Highways Code Section 2961(b), including: (a) The total amount, as near as may be determined, of the total principal sum of all unpaid special assessments and special assessments required or proposed to be levied under any completed or pending assessment proceedings, other than the proposed assessments to be levied with respect to the Assessment District, which would require an investigation and report under the 1931 Act against the total area proposed to be assessed; and (b) The total true value, as near as may be determined, of the parcels of land and improvements within the Assessment District which are proposed to be assessed. Total true value may be estimated as the full cash value of the parcels as shown upon the last equalized assessment roll of the county. Alternatively, total true value may be determined by other reasonable means, including, but not limited to, by adjusting the value shown on the last equalized assessment roll to correct for deviations from market value due to Article XIIIA of the California Constitution. Section 8: Following the acquisition of the Improvements and the payment of all incidental expenses in connection with the formation of the Assessment District and the issuance of bonds pursuant to the 1915 Act, any surplus remaining in the improvement Resolution 2018 - Page 5 of 7 fund established for the Assessment District shall be used as determined by the City Council as provided in Section 10427 of the Streets and Highways Code. Section 9: Notice is hereby given that serial or term bonds to represent unpaid assessments and to bear interest at a rate not to exceed twelve percent (12%) per annum will be issued in the manner provided in the Improvement Bond Act of 1915 to represent the unpaid assessments and the last installment of such bonds shall mature a maximum of twenty (20) years from the second day of September next succeeding twelve (12) months from their date. The principal amount of such bonds maturing or becoming subject to mandatory prior redemption each year shall not be an amount equal to an even annual proportion of the aggregate principal amount of the bonds, but rather (except as specifically otherwise provided by the City Council in connection with the sale of such bonds), shall be an amount which, when added to the amount of interest payable in each year, will be a sum which is substantially equal in each year, except for the moneys falling due on the first maturity or mandatory prior redemption date of the bonds which shall be adjusted to reflect the amount of interest earned from the date when the bonds bear interest to the date when the first interest is payable on the bonds. Such bonds shall be serviced and collected by the City Treasurer or by such registrar and/or paying agent(s) as this City Council may from time to time designate. Section 10: The provisions of Part 11.1 of the Improvement Bond Act of 1915, providing an alternative procedure for the advance payment of assessments and the calling of bonds, shall apply. Section 11: Except as specifically otherwise provided for herein, the Improvements shall be made and ordered pursuant to the provisions of the 1913 Act. Section 12: The City Council hereby determines that the City will not obligate itself to advance available funds from its treasury to cure any deficiency which may occur in the bond redemption fund established for the Assessment District. Section 13: The public interests will not be served by allowing the property owners to take any contract to be let for the construction of the Improvements, and no notice of award of contract shall be published. Section 14: It is hereby determined that the bonds proposed to be issued in these proceedings may be refunded. Any adjustment to assessments resulting from such refunding shall be done on a pro rata basis as required pursuant to Section 8571.5 of the Streets and Highways Code. Any such refunding shall be pursuant to the provisions of Division 11.5 (commencing with Section 9500) of the Streets and 6-10 Resolution 2018 - Page 6 of 7 Highways Code, except that, if, following the filing of the report specified in Section 9523 and any subsequent modifications of the report, the City Council finds that all of the conditions specified in Section 9525 are satisfied and that the adjustments to assessments are on a pro rata basis, the City Council may approve and confirm the report and any, without further proceedings, authorize, issue, and sell the refunding bonds pursuant to Chapter 3 (commencing with Section 9600) of Division 11.5 of the Streets and Highways Code. Any such refunding bonds shall bear interest at the rate of not to exceed twelve percent (12%) per annum, or such higher rate of interest as may be authorized by applicable law at the time of sale of such bonds; and the last installment of such bonds shall mature on such date as will be determined by the City Council in the proceedings for such refunding. Section 15: It is in the public interest and more economical to do certain work on private property to eliminate any disparity in level or size between the Improvements and private property and to add the actual cost of such work to the Assessment of the property to which such work was done; provided that no work of this nature shall be performed until and unless the written consent of the owner of property is first obtained. Section 16: Pursuant to Streets and Highways Code Section 10110, the City intends to enter into agreements with Edison and the other utility providers, and any agreement between the City and Edison, or any other public utility, for the ownership, management, or control of the underground electric, telephone and cable facilities to be installed pursuant to the Improvements, would benefit any current or future residents of the Assessment District. Section 17: Pursuant to Section 15302(d) of the Guidelines, the undergrounding of the Improvements will have no significant effect on the environment and is categorically exempt from CEQA. The City Clerk is directed to work with the Community Development Director to cause a notice of exemption to be posted as required by law. Section 18: All inquiries for any and all information relating to these proceedings, including information relating to protest procedures, should be directed to: CITY OF NEWPORT BEACH Attention: Michael Sinacori 100 Civic Center Drive Newport Beach, California 92660 (949) 644-3342 6-11 Resolution 2018 - Page 7 of -7 Section 19: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. Section 20: If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. Section 21: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution. ADOPTED this day of 2018. ATTEST: Leilani I. Brown City Clerk APPROVED AS TO FORM: CITY ATTY 5 OFFICE I' ( /or Aaron C'Fiar City Attorney Marshall "Duffy" Duffield Mayor 6-12 ATTACHMENT B RESOLUTION NO. 2018- 69 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. 113 WHEREAS, by Resolution No. 2018-68 ("Resolution of Intention") in the proceedings for the formation of Assessment District No. 113 ("Assessment District") this City Council ordered a report ("Report") prepared by Penco Engineering/NV5 ("Assessment Engineer") under and pursuant to the provisions of Article XIIID of the California Constitution ("Article XIIID") and the Municipal Improvement Act of 1913 ("1913 Act"), and, in particular, Section 10204 of the California Streets and Highways Code; and WHEREAS, the Assessment Engineer has prepared the Report and filed the same with the City Clerk, and the City Clerk has presented the Report to this City Council for consideration. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The Report is preliminarily approved, and the City Clerk is directed to endorse the fact and date of such approval on the Report and to file the Report in her office. The Report shall stand as the report for the purpose of all subsequent proceedings under the 1913 Act and Article XIIID except that it may be conformed, modified, or corrected as provided in the 1913 Act and Article XIIID. Section 2: Pursuant to Section 2961 of the Streets and Highways Code and based on the information set forth in the Report, this City Council finds that the total amount of the principal sum of all unpaid special assessments levied against the parcels proposed to be assessed, other than contemplated by the present proceedings, plus the principal amount of the special assessment proposed to be levied in the instant proceedings, do not exceed one-half of the total value of the parcels proposed to be assessed, as computed pursuant to paragraph (2) of subdivision (b) of Section 2961. Section 3: A public hearing shall be held on November 27, 2018, at 7:00 p.m. at the regular meeting place of the City Council at City Hall Council Chambers, 100 Civic Center Drive, Newport Beach, California 92660, to hear and consider protests and 6-13 Resolution 2018 - Page 2 of 3 objections to the proposed Assessment District and the Report and to receive and count the ballots for and against the proposed Assessment District. Section 4: At least forty-five (45) days prior to the public hearing referred to in Section 3 hereof, the City Clerk shall cause a notice of the adoption of the Resolution of Intention, the filing of the Report and the setting of time and place for said public meeting and the public hearing referred to in Section 2 hereof to be mailed, postage prepaid, to all persons owning real property proposed to be assessed in the Assessment District and whose names and addresses appear on the last equalized County of Orange assessment roll or the State Board of Equalization assessment roll, as the case may be, or who are known to the City Clerk. Such notice shall conform in all respects to the provisions of Section 53753 of the California Government Code and Article XIIID, Section 4 of the California Constitution. Section 5: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. Section 6: If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. Section 7: The City Council finds the adoption of this resolution is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment), 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, and 15302(d) there is a Categorical Exclusion for the conversion of overhead electrical utility distribution system facilities to underground. 6-14 Resolution 2018 - Page 3 of 3 Section 8: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution. ADOPTED this day of .12018. Marshall "Duffy" Duffield Mayor ATTEST: Leilani I. Brown City Clerk APPROVED AS TO FORM: CITY ATT S OFFICE Aaron C. arp City Attorney 6-15 �y. g• _ �• 15 I Attachment C r r � cl Ak- 140 ',■�� sme-- 7 77 PRELIMINARY ENGINEER'S REPORT FOR UNDERGROUNDING UTILITY - ASSESSMENT DISTRICT NO. 113, WEST BALBOA ISLAND PREPARED UNDER THE PROVISIONS OF THE MUNICIPAL IMPROVEMENT ACT OF 1913 CITY OF NEWPORT BEACH 1 f i PENCOEG N V 5 Ckent Success is Our Success TABLE OF CONTENTS ►_12a4011]E1 A. Assessment Calculations City ofNewport Beach Underground Utility Assessment District No. 113 (West Balboa Island) Preliminary Engineer's Report September 25, 201811 6-17 Page Introduction and Certifications........................................................................................... 1 PART I Plans and Specifications...................................................................................6 PARTII Cost Estimate...................................................................................................7 PART III Assessment Roll and Method of Assessment Spread......................................8 Table 1 - Assessment Roll.......................................................................................10 Debt Limit Valuation...................................................................................... 14 Exhibit 1 -Method and Formula of Assessment Spread ................................. 15 PART IV Annual Administrative Assessment................................................................21 PART V Diagram of Assessment District.....................................................................22 PART VI Description of Facilities..................................................................................24 Right -of -Way Certificate.................................................................................26 Certification of Completion of Environmental Proceedings ..........................27 ►_12a4011]E1 A. Assessment Calculations City ofNewport Beach Underground Utility Assessment District No. 113 (West Balboa Island) Preliminary Engineer's Report September 25, 201811 6-17 PENCOFNG Client Success is Our Success N V 5 AGENCY: CITY OF NEWPORT BEACH PROJECT: ASSESSMENT DISTRICT NO. 113 TO: CITY COUNCIL ENGINEER'S "REPORT" PURSUANT TO THE PROVISIONS OF SECTIONS 2961 AND 10204 OF THE STREETS AND HIGHWAYS CODE The purpose of this Assessment District is to provide financing to underground power, telephone and cable facilities in the area known as West Balboa Island. 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. By virtue of such improvements, the proposed improvements are of special and direct benefit to these properties. 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. 113 (hereinafter referred to as the "Assessment District"), I, Jeffrey M. Cooper, P.E., a Registered Professional Engineer and authorized representative of PENCO Engineering, Inc. and NV5, Inc., 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. City of Newport Beach Underground Utility Assessment District No. 113 (West Balboa Island) Preliminary Engineer's Report September 25, 201812 6-18 PENCOEG N V 5 Client Success is Our Success 19A.Alff This part consists of the following information: A. A proposed assessment of the total amount of the costs and expenses of the proposed improvements upon the several subdivisions of land within the Assessment District, in proportion to the special benefits to be received by such subdivisions from said improvements, which is set forth upon the assessment roll filed herewith and made a part hereof. B. The total amount, as near as may be determined, of the total principal sum of all unpaid special assessments 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. City ofNewport Beach Underground Utility Assessment District No. 113 (West Balboa Island) Preliminary Engineer's Report September 25, 201813 6-19 PENCOEG N V 5 Client Success is Our Success 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 September 25, 2018 PENCO ENGINEERING, INC. / NV5, INC. 0 1 E:::! JEFFREY M. COOPER, P.E. R.C.E. No. 31572 ENGINEER OF WORK CITY OF NEWPORT BEACH STATE OF CALIFORNIA City ofNewport Beach Underground Utility Assessment District No. 113 (West Balboa Island) Preliminary Engineer's Report September 25, 201814 6-20 PENCOFNG Client Success is Our Success N V 5 Preliminary approval by the CITY COUNCIL of the CITY OF NEWPORT BEACH, CALIFORNIA, on the _ day of , 2018. CITY CLERK CITY OF NEWPORT BEACH STATE OF CALIFORNIA Preliminary approval by the CITY COUNCIL of the CITY OF NEWPORT BEACH, CALIFORNIA, on the day of , 2018. CITY CLERK CITY OF NEWPORT BEACH STATE OF CALIFORNIA City of Newport Beach Underground Utility Assessment District No. 113 (West Balboa Island) Preliminary Engineer's Report September 25, 201815 6-21 PENCOEG N V 5 Client Success is Our Success 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. 113 known as West Balboa Island describe the general nature, location and extent of the improvements for 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. City ofNewport Beach Underground Utility Assessment District No. 113 (West Balboa Island) Preliminary Engineer's Report September 25, 201816 6-22 PENCOENG N V 5 Client Success is Our Success Part II Cost Estimate ASSESSMENT DISTRICT 113 ESTIMATE - WEST BALBOA ISLAND 1►Cy1U];ILim IIG10*0%I;I0 :9:Rj Assessment Engineering CALCULATION Final Estimate $300,000.00 Lenqth in ft. Cost per ft. Financial Advisor Utility Engineering & Construction Bond and Disclosure Counsel $55,000.00 Underwriters Counsel Southern California Edison 7,800 $50 $390,000.00 AT&T 7,800 $10 $78,000.00 Civil Utilitiy Construction Cost 7,800 $456 $3,554,000.00 Paving Restoration Cost (50% Contribution) Subtotal Incidental & Construction $5,821,500.00 $421,000.00 $4,443,000.00 Contingecy 15.0% $666,000.00 TOTAL CONSTRUCTION $5,109,000.00 1►Cy1U];ILim IIG10*0%I;I0 :9:Rj Assessment Engineering $200,000.00 Contract Inspection $300,000.00 City Administration $100,000.00 Financial Advisor $20,000.00 Bond and Disclosure Counsel $55,000.00 Underwriters Counsel $15,000.00 Paying Agent $2,500.00 Credit Rating Fee $15,000.00 Printing, Advertising, Notices $2,500.00 Miscellaneous $2,500.00 Subtotal Incidential Expenses $712,500.00 Construction $5.109,000.00 Subtotal Incidental & Construction $5,821,500.00 FINANCIAL COSTS Underwriter's Discount Bond Reserve Capitalized Interest - 5.0% for 3 Months Subtotal & Financial Costs TOTAL ESTIMATE 1.0% $59,000.00 5.0% $295,000.00 1.3% $74,000.00 7.3% $428,000.00 $6,249,500.00 City of Newport Beach Underground Utility Assessment District No. 113 (West Balboa Island) Preliminary Engineer's Report September 25, 201817 6-23 PENCOEG N V 5 Client Success is Our Success Part III Assessment Roll and Method of Assessment Spread WHEREAS, on 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. for the installation and construction of certain public improvements, together with appurtenances and appurtenant work in connection therewith (the "improvements"), in a special assessment district known and designated as ASSESSMENT DISTRICT NO. 113 (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, JEFFREY M. COOPER, P.E., the authorized representative of PENCO Engineering and NV5, pursuant to Article XIIID of the California Constitution and the "Municipal Improvement Act of 1913", do hereby submit the following: 1. Pursuant to the provisions of Law and the Resolution of Intention, I have assessed the costs and expenses of the works of improvement to be performed in the Assessment District upon the parcels of land in the Assessment District specially benefited thereby in direct proportion and relation to the special benefits to be received by each of said parcels. For particulars as to the identification of said parcels, reference is made to the Assessment Diagram, a copy of which is attached hereto and incorporated herein. 2. As required by law, a Diagram is hereto attached, showing the Assessment District, as well as the boundaries and dimensions of the respective parcels and subdivisions of land within said City of Newport Beach Underground Utility Assessment District No. 113 (West Balboa Island) Preliminary Engineer's Report September 25, 201818 6-24 PENCOEG N V 5 Client Success is Our Success District as the same existed at the time of the passage of said Resolution of Intention, each of which subdivisions of land or parcels or lots respectively have been given a separate number upon said Diagram and in said Assessment Roll. 3. The subdivisions and parcels of land the numbers therein as shown on the respective Assessment Diagram as attached hereto correspond with the numbers as appearing on the Assessment Roll as contained herein. 4. NOTICE IS HEREBY GIVEN that bonds will be issued in accordance with Division 10 of the Streets and Highways Code of the State of California (the "Improvement Bond Act of 1915"), to represent all unpaid assessments, which bonds shall be issued in one or more series, each with a term not to exceed the legal maximum term as authorized by law, THIRTY-NINE (39) YEARS from the 2nd day of September next succeeding twelve (12) months from their date. Said bonds shall bear interest at a rate not to exceed the current legal maximum rate of 12% per annum. 5. By virtue of the authority contained in said "Municipal Improvement Act of 1913", and by further direction and order of the legislative body, I hereby recommend the following Assessment to cover the costs and expenses of the works of improvement for the Assessment District based on the costs and expenses as set forth below: For particulars as to the individual assessments and their descriptions, reference is made to Table I (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. City ofNewport Beach Underground Utility Assessment District No. 113 (West Balboa Island) Preliminary Engineer's Report September 25, 201819 6-25 As Preliminary Approved As Confirmed Estimated Cost of Design and Construction: $5,109,000.00 Estimated Incidental Expenses: $712,500.00 Estimated Financial Costs: $428,000.00 Estimated Contribution: $ Estimated Total to Assessment: $6,249,500.00 For particulars as to the individual assessments and their descriptions, reference is made to Table I (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. City ofNewport Beach Underground Utility Assessment District No. 113 (West Balboa Island) Preliminary Engineer's Report September 25, 201819 6-25 PENCOENG N V 5 Client Success is Our Success Table 1 Assessment Roll Assessments as Assessments as Asmt No. Assessors Parcel iVumher Total True Value Liens Existing Preliminarily Confirmed and Lien en Ratio Approved Recorded 1 050-043-17 $ 598,325.00 $ 19,079.27 31 2 050-043-16 $ 688,608.00 $ 18,616.28 32 3 050-043-15 $ 680,183.00 $ 18,899.82 36 4 050-043-14 $ 1,395,629.00 $ 29,547.47 47 5 050-043-13 $ 554,036.00 $ 45,930.63 12 6 050-042-29 $ 1,940,948.00 $ 28,562.23 - 68 7 050-042-28 $ 4,084,064.00 $ 28,562.23 - 143 8 050-042-26 $ 275,727.00 $ 28,090.72 - 10 9 050-042-27 $ 5,221,505.00 $ 27,689.58 - 189 10 050-042-12 $ 1,278,354.00 $ 28,801.50 - 44 11 050-042-11 $ 4,503,937.00 $ 28,379.25 159 12 050-041-13 $ 407,196.00 $ 29,575.62 14 13 050-041-12 $ 432,330.00 $ 29,32227 15 14 050-041-11 $ 659,635.00 $ 28,562.23 - 23 15 050-041-10 $ 5,473,461.00 $ 36,781.96 - 149 16 050-041-09 $ 6,755,907.00 $ 37,950.17 - 178 17 050-011-11 $ 3,306,775.00 $ 30,068.24 - 110 18 050-011-10 $ 769,439.00 $ 27,457.35 - 28 19 050-011-24 $ 1,478,337.00 $ 28,94225 51 20 050-011-25 $ 7,000,000.00 $ 29,139.30 240 21 050-011-07 $ 1,638,129.00 $ 25,571.31 - 64 22 050-011-06 $ 3,212,793.00 $ 28,449.63 113 23 050-011-05 $ 6,439,454.00 $ 28,449.63 226 24 050-011-04 $ 5,780,447.00 $ 31,236.45 185 25 050-011-03 $ 1,268,617.00 3 37,471.63 - 34 26 050-011-02 $ 2,429,210.00 $ 35,571.52 - 68 27 050-011-01 $ 1,275,546.00 5 26,042.82 49 28 050-021-09 $ 1,616,304.00 5 27,147.70 - 60 29 050-021-08 $ 3,644,351.00 $ 27,647.36 - 132 30 050-021-18 $ 2,755,648.00 $ 27,844.41 99 31 050-021-19 $ 1,401,895.00 $ 27,844.41 - 50 32 050-021-06 $ 3,986,274.00 $ 27,492.53 145 33 050-021-05 $ 5,223,280.00 3 39,723.61 131 34 050-021-21 $ 1,873,632.00 $ 27,914.78 67 35 050-021-22 $ 413,889.00 5 27,844.41 15 36 050-021-03 $ 5,307,986.00 b 38,987.66 136 37 050-021-02 $ 258,449.00 $ 27,844.41 9 38 050-021-01 $ 2,457,144.00 5 40,307.72 - 61 39 050-022-28 $ 11,173,602.00 - $ 52,714.72 212 40 050-022-22 $ 4,473,462.00 $ 33,403.98 134 41 050-022-21 $ 1,724,611.00 $ 33,403.98 52 42 050-022-20 $ 2,399,397.00 $ 33,403.98 72 43 050-022-19 $ 960,904.00 $ 33,403.98 29 44 050-032-06 $ 657,074.00 $ 48,133.35 14 45 050-032-04 $ 3,705,000.00 $ 29,019.66 128 46 050-032-03 $ 4,143,000.00 $ 29,448.94 - 141 47 050-032-02 $ 307,065.00 S 28,801.50 - 11 48 050-032-01 $ 312,430.00 S 29,033.73 11 49 050-031-06 $ 2,486,024.00 $ 29,019.66 - 86 50 050-031-05 $ 4,389,447.00 $ 28,745.20 153 51 050-031-04 $ 4,150,000.00 $ 28,245.54 - 147 52 050-031-03 $ 479,663.00 S 28,498.89 17 53 050-031-02 $ 3,857,050.00 5 29,019.66 - 133 54 050-031-01 $ 1,741,510.00 5 29,019.66 - 60 *City owned City of Newport Beach Underground Utility Assessment District No. 113 (West Balboa Island) Preliminary Engineer's Report September 25, 2018110 6-26 PENCOENG N V 5 Client Success is Our Success Table 1 Assessment Roll Asmt No, Assessor's Parcel Number Total True Value Existing Liens Assessments as Preliminarily Approved Assessments as Value To Confirmed and Lien Ratio Recorded 55 050-072-39 $ 2,027,436.00 S 29,012.62 - 70 56 050-072-40 $ 927,702.00 $ 29,012.62 - 32 57 050-072-44 $ 257,125.00 - $ 9,800.41 - 27 58 050-072-43 $ 1,792,212.00 $ 26,788.79 - 67 59 050-072-48 $ 165,910.00 S 28,674.82 - 6 60 050-072-47 $ 1,992,801.00 $ 19,068.72 - 105 61 050-072-35 $ 792,296.00 $ 13,459.11 - 59 62 050-031-36 $ 443,503.00 £ 35,156.31 - 13 63 050-031-35 $ 3,411,738.00 S 27,745.88 - 123 64 050-031-34 $ 609,188.00 S 27,471.42 - 22 55 050-031-33 $ 148,533.00 $ 29,111.15 - 5 66 050--031-32 $ 988,113.00 $ 27,147.70 - 36 67 050-031-38 $ 1,830,615.00 $ 27,745.88 - 66 68 050-031-37 $ 2,298,989.00 $ 27,745.88 - 83 59 050-031-30 $ 239,174.00 $ 28,688.90 - 8 70 050-031-29 $ 217,830.00 $ 27,189.92 - 8 71 050-031-39 $ 1,086,878.00 S 27,745.88 - 39 72 050-031-40 $ 921,827.00 S 27,745.88 - 33 73 050-031-27 $ 1,615,045.00 $ 27,204.00 - 59 74 050-031-26 $ 659,707.00 S 29,660.07 - 22 75 050-031-25 $ 1,152,219.00 S 27,745.88 - 42 76 050-031-24 $ 713,022.00 $ 29,315.23 - 24 77 050-031-42 $ 2,058,853.00 $ 27,886.63 - 74 78 050-031-41 $ 940,239.00 $ 34,199.22 - 27 79 050-043-34 $ 2,595,798.00 S 29,638.95 - 88 80 050-043-33 $ 1,688,245.00 - S 27,745.88 - 57 81 050-043-32 $ 2,899,339.00 - $ 27,745.88 - 104 82 050-043-25 $ 125,288.00 - $ 27,267.34 - 5 83 050-043-24 $ 136,847.00 S 27,499.57 - 5 84 050-043-31 $ 2,088,944.00 S 62,222.31 34 86 050-043-29 $ 610,562.00 $ 91,786.60 - 86 050--043-12 $ 963,507.00 $ 31,602.40 - 30 87 050-043-11 $ 142,177.00 $ 27,745.88 - 5 88 050-043-10 $ 2,350,191.00 S 27,365.86 - 86 89 050-043-09 $ 981,702.00 $ 27,133.62 - 36 90 050-043-08 $ 152,400.00 $ 27,745.88 - 6 91 050-043-07 $ 2,681,012.00 $ 27,344.75 - 98 92 050-043-06 $ 127,209.00 S 27,957.01 - 6 93 050-043-05 $ 165,908.00 $ 27,745.88 - 6 94 050-043-04 $ 2,637,626.00 $ 27,745.88 - 95 95 050-043-03 $ 227,464.00 $ 27,098.44 - 8 96 050-043-02 $ 1,989,000.00 S 27,647.36 - 72 97 050-043-01 $ 236,467.00 $ 27,450.31 - 9 98 050-031-22 $ 1,066,544.00 $ 27,450.31 - 39 99 050-031-21 $ 1,513,033.00 $ 27,745.88 - 55 100 050-031-20 $ 2,288,880.00 S 27,745.88 - 82 101 050--031-19 $ 2,150,000.00 $ 26,697.30 - 81 102 050-031-18 $ 180,953.00 $ 27,795.14 - 7 103 050-031-17 $ 965,995.00 $ 26,929.54 - 36 104 050-031-16 $ 1,302,608.00 S 27,105.47 - 48 105 050-031-16 $ 1,966,199.00 - S 27,745.88 - 71 106 050-031-14 $ 871,526.00 - $ 26,831.01 - 32 107 050-031-13 $ 460,260.00 $ 27,745.88 - 17 108 050-031-12 $ 385,901.00 $ 27,745.88 - 14 *City owned City of Newport Beach Underground Utility Assessment District No. 113 (West Balboa Island) Preliminary Engineer's Report September 25, 2018111 6-27 PENCOENG N V 5 Client Success is Our Success Table 1 Assessment Roll Asmt No. Assessors parcel Number Total True Value Existing Liens Assessments as Assessments as Preliminarily Confirmed and Approved Recorded Value To Lien Ratio 109 050-031-11 $ 910,916.00 $ 26,950.65 34 110 05D-031-10 $ 1,951,531.00 $ 27,745.88 70 111 050-031-09 $ 273,215.00 $ 27,745.88 10 112 050-031-08 $ 2,586,099.00 $ 26,683.23 97 113 050-031-07 $ 1,866,898.00 $ 31,947.23 58 114 050-032-33 $ 631,500.00 $ 20,314.34 - 31 115 050-032-32 $ 748,120.00 $ 27,745.88 - 27 116 050-032-31 $ 422,179.00 $ 26,739.53 - 16 117 05D-032-30 $ 228,232.00 $ 27,415.12 - 8 118 05D-032-29 $ 2,450,000.00 $ 27,070.29 - 91 119 05D-032-28 $ 458,226.00 $ 27,569.95 - 17 120 050-032-27 $ 749,934.09 $ 27,513.65 - 27 121 050-032-26 $ 1,336,590.00 $ 27,274.37 - 49 122 050-032-25 $ 1,298,335.09 - $ 27,457.35 - 47 123 05D-032-24 $ 2,279,564.00 $ 27,710.69 - 82 124 050-032-23 $ 1,071,58100 $ 27,745.88 - 39 125 050-032-22 $ 3,187,500.00 S 27,745.88 - 115 126 050-032-21 $ 1,836,000.00 $ 27,415.12 - 67 127 050-032-35 $ 173,631.00 $ 27,830.33 - 6 128 050-032-34 $ 535,559.00 $ 27,745.88 - 19 129 050-042-25 $ 159,063.00 - $ 27,042.14 - 6 130 050-042-24 $ 2,642,616.00 $ 27,745.88 - 95 131 050-042-23 $ 2,308,629.00 $ 27,745.88 - 83 132 050-042-22 $ 2,553,967.00 $ 27,006.95 - 95 133 050-042-21 $ 618,649.00 $ 27,274.37 - 23 134 050-042-20 $ 232,430.00 - $ 27,745.88 - 8 135 05D-042-19 $ 186,119.00 - $ 27,028.06 - 7 136 050-042-18 $ 700,085.00 - $ 28,245.54 - 25 137 050-042-17 $ 652,794.00 $ 26,978.80 - 24 138 050-042-16 $ 743,345.00 $ 28,900.02 - 26 139 050-042-15 $ 2,500,356.00 $ 30,138.61 - 83 140 059-042-10 $ 2,110,505.00 $ 26,943.61 - 78 141 050-042-09 $ 2,674,529.00 $ 27,745.88 - 96 142 050-042-08 $ 1,029,430.00 - $ 27,745.88 - 37 143 059-042-07 $ 226,267.00 $ 28,280.73 - 8 144 050-042-06 $ 116,380.00 $ 27,745.88 - 4 145 050-042-05 $ 231,844.00 $ 26,894.35 - 9 146 050-042-04 $ 2,365,000.00 $ 27,541.80 - 86 147 050-042-03 $ 118,608.09 - $ 27,745.88 - 4 148 05D-042-02 $ 2,056,295.00 $ 27,408.08 - 75 149 050-042-01 $ 2,325,000.00 $ 27,745.88 - 84 150 050-032-19 $ 178,504.00 $ 27,745.88 - 6 151 05D-032-18 $ 507,549.00 $ 26,774.71 - 19 152 050-032-17 $ 1,075,544,00 $ 27,745.88 - 39 153 05D-032-16 $ 2,9DD,526.00 3 27,745.88 - 105 154 050-032-15 $ 2,077,364.00 $ 27,745.88 - 75 155 050-032-14 $ 2,249,222.00 $ 27,281.41 - 82 156 050-032-13 $ 2,547,263.00 $ 28,013.30 - 91 157 05D-032-12 $ 1,013,099.00 $ 29,765.63 - 34 158 05D-032-11 $ 113,120.00 - $ 27,745.88 - 4 159 050-032-19 $ 211,145.00 $ 27,724.77 - 8 160 050-032-09 $ 940,913.00 - $ 27,112.51 - 35 161 050-032-08 $ 225,639.00 $ 27,584.02 - 8 162 050-032-07 $ 1,203,346.00 $ 28,94225 - 42 *City owned City of Newport Beach Underground Utility Assessment District No. 113 (West Balboa Island) Preliminary Engineer's Report September 25, 2018112 6-28 PENCOENG N V 5 Client Success is Our Success Table 1 Assessment Roll Asmt No. Assessor's parcel Number Total True Value Existing Liens Assessments as Assessments as Preliminarily Confirmed and Approved Recorded Value To Lien Ratio 163 050-032-06 $ 280,556.00 $ 15,993.35 18 164 050-022-18 S 1,468,240.00 $ 25,191.29 58 165 050-022-17 $ 642,439.00 $ 28,935.21 22 166 050-022-16 S 538,184.00 - $ 27,745.88 19 167 050-022-15 S 2,386,681.00 $ 27,745.88 86 168 050-022-14 S 1,298,348.00 $ 27,745.88 47 169 05D-022-13 $ 1,457,913.00 $ 28,048.49 52 170 050-022-27 5 1,371,265.00 $ 27,921.82 49 171 05D-022-26 S 617,228.00 $ 27,745.88 22 172 050-022-11 S 868,721.00 $ 25,571.31 34 173 050-022-10 S 212,898.00 $ 27,745.88 8 174 050-022-09 S 2,876,211.00 $ 27,745.88 104 175 050-041-22 S 1,060,718.00 $ 28,484.81 37 176 050-041-21 $ 206,354.00 $ 27,562.91 7 177 050-041-20 5 2,948,234.00 $ 27,745.88 106 178 050-041-19 $ 2,478,600.00 $ 28,428.51 87 179 050-041-18 $ 196,528.00 $ 26,155.42 8 180 050-041-17 $ 4,029,000.00 $ 27,745.88 145 181 050-041-16 $ 2,495,676.00 $ 27,745.88 90 182 050-D41-15 $ 153,007.00 $ 28,850.76 - 5 183 050-041-14 $ 105,544.00 $ 25,353.15 - 4 184 050-041-08 $ 105,551.00 $ 25,353.15 - 4 185 050-041-07 $ 2,830,000.00 $ 27,745.88 - 102 186 050-041-06 $ 1,725,589.00 $ 27,745.88 - 62 187 050-041-05 $ 3,199,745.00 $ 27,492.53 - 116 190 050-041-02 $ 419,112.00 $ 27,640.32 - 15 191 050-041-01 $ 820,523.00 $ 27,921.82 - 29 192 050-022-08 $ 215,849.00 $ 25,697.99 - 8 193 050-022-07 $ 3,600,000.00 $ 26,042.82 - 138 194 050-022-06 S 2,731,050.00 $ 27,745.88 98 195 050-022-24 $ 1,442,384.00 $ 29,547.47 49 197 054-022-04 S 226,273.00 $ 28,738.16 8 198 050-022-03 $ 1,452,037.00 $ 27,745.88 52 199 050-022-02 $ 3,901 ,500.00 $ 40,307.72 - 97 200 050-021-17 S 283,567.00 $ 26,852.13 - 11 201 050-021-16 $ 1,350,541.00 $ 27,745.88 - 49 202 050-021-15 5 341 ,537.00 $ 27,640.32 - 12 203 050-021-14 $ 1,171,759.00 $ 27,358.82 - 43 204 050-021-13 3 956,123.00 $ 26,922.50 - 36 205 050-021-12 S 3,672,910.00 $ 27,745.88 - 132 206 050-011-21 5 2,330,918.00 $ 27,745.88 84 207 050-011-20 S 161 ,609.00 $ 28,294.80 6 208 050-011-19 S 2,311 ,697.00 $ 27,745.88 83 209 050-011-14 S 1,829,019.00 $ 27,900.71 66 210 050-011-13 S 396,242.00 $ 27,745.88 14 211 050-011-12 S 2,003,131.00 $ 24,156.79 - 83 212 050-011-29 $ 1,031,469.00 - $ 55,522.66 - 19 213 050-021-24 $ 3,676,007.00 - $ 35,177.42 - 104 214 050-021-23 $ 2,927,559.00 - $ 28,358.14 - 103 215 050-052-30 $ 184,224.00 - $ 61,550.23 *City owned City of Newport Beach Underground Utility Assessment District No. 113 (West Balboa Island) Preliminary Engineer's Report September 25, 2018113 6-29 PENCOEG N V 5 Client Success is Our Success Table 2 Debt Limit Valuation A. ESTIMATED BALANCE TO ASSESSMENT (Not including city owned parcels) $6,096,163.17 B. UNPAID SPECIAL ASSESSMENTS $0 TOTAL A& B $6,096,163.17 C. TRUE VALUE OF PARCELS (Not including city owned parcels) $355,991,538.00 AVERAGE VALUE TO LIEN RATIO 57:1 * 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 September 25, 2018 PENCO ENGINEERING, INC. / NV5, INC. JEF EY M. C OPER, P.E. R.C.E. No. 31572 ENGINEER OF WORK CITY OF NEWPORT BEACH STATE OF CALIFORNIA City ofNewport Beach Underground Utility Assessment District No. 113 (West Balboa Island) Preliminary Engineer's Report September 25, 20181 14 6-30 PENCOEG N V 5 Client Success is Our Success 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. City ofNewport Beach Underground Utility Assessment District No. 113 (West Balboa Island) Preliminary Engineer's Report September 25, 20181 15 6-31 PENCOEG N V 5 Client Success is Our Success The purpose of this Assessment District is to provide the financing to underground existing overhead electrical, telephone and cable facilities as well as rehabilitate the affected portions of streets and alleys within the District. These facilities are the direct source of service to the properties within the Assessment District. The proposed replacement of existing overhead utility facilities (power, telephone and cable facilities) with underground facilities and removal of the existing utility poles and 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 Balboa Island, the negative effects of falling lines and poles are more widespread including blocked driveways 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 based on the area of the parcel. 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 based upon connecting for each property. By virtue of such special benefits, the proposed improvements will provide a higher level of service, increase the desirability of the properties and will specifically enhance the values of the properties within the Assessment District. Therefore, the proposed improvements are of direct and special benefit to these properties. The following is a summary of each property with special consideration: City ofNewport Beach Underground Utility Assessment District No. 113 (West Balboa Island) Preliminary Engineer's Report September 25, 20181 16 6-32 PENCOEG N V 5 Client Success is Our Success Assessment Nos. 1, 2, 3 and 60. Pole and guy wires will remain adjacent to these properties, but the properties will be connected to new undergrounded system and power and cable lines will go underground adjacent to their properties. Therefore, these properties will be assigned zero (0) aesthetic benefits, all other benefits will be assigned. Assessment No.57. The poles, wires and guy wires to be undergrounded are not in close proximity to the access point for this property and do not provide significant aesthetic benefit to this property. This property is directly oriented to the bay and receives no aesthetic benefit derived from undergrounding in the alleys. The poles, wires and guy wires to be underground are not in close proximity to this property and would not encroach on this property should they fall. Therefore, this property is assigned zero (0) aesthetic benefit and zero (0) safety benefit. It does connect to the new system and will be assigned a connection benefit. Assessment No. 61. Pole and guy wires will remain adjacent to this property; power and cable lines will go underground adjacent to the property. The property will not connect to the new underground system. Therefore, this property will not receive a connection benefit but aesthetic benefit is improved but not completely, so it is assigned a 'z aesthetic benefit. It does receive the safety benefit as adjacent power and cable wires are being undergrounded. . Milk1:1CL1M:j:1ilk 1:19111C•y 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 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. City ofNewport Beach Underground Utility Assessment District No. 113 (West Balboa Island) Preliminary Engineer's Report September 25, 20181 17 6-33 PENCOEG N V 5 Client Success is Our Success Based on these facts and circumstances, any general benefits to the property within the Assessment District in general, to the surrounding community and to the public at large from the project of undergrounding these local overhead utility facilities on the local streets and alleys, such as to the general public visiting in cars, on bikes or on foot, are incidental and do not exceed five percent (5%) of the estimated project costs. This general benefit portion of the cost is more than offset by the approximate 20% percent 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 $6,249,500.00 is apportioned to the parcels within the District, no parcel is assessed more than its proportional share of the special benefits from the improvements. 1► 11111:1011901tolc 9 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. City ofNewport Beach Underground Utility Assessment District No. 113 (West Balboa Island) Preliminary Engineer's Report September 25, 20181 18 6-34 PENCOEG N V 5 Client Success is Our Success 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 those few exceptions identified above, receive 3 of the 3 benefits. For the Improved Aesthetics Benefit and the Additional Safety Benefit the parcel area is multiplied by 1 to calculate the "Aesthetics Benefit Area" and the "Safety Benefit Area". For the Connection Benefit, the average parcel area within the district is multiplied by the number of connections (with a maximum of one) on 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. 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 proroto 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: September 25, 2018 PENCO ENGINEERING, INC. / NV5, INC. QRp�ESSIQN� 1� aao yc a JEF REY M. COOPER, P.E. 31572 R.C.E. No. 31572 * * ENGINEER OF WORK CITY OF NEWPORT BEACH PE OF CW STATE OF CALIFORNIA City ofNewport Beach Underground Utility Assessment District No. 113 (West Balboa Island) Preliminary Engineer's Report September 25, 20181 19 6-35 PENCOEG Ckent Success is Our Success N V 5 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 2018. 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 _ day of , 2018. 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 the CITY OF NEWPORT BEACH, CALIFORNIA, on _ day of , 2018. 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 day of , 2018. SUPERINTENDENT OF STREETS CITY OF NEWPORT BEACH STATE OF CALIFORNIA City ofNewport Beach Underground Utility Assessment District No. 113 (West Balboa Island) Preliminary Engineer's Report September 25, 2018120 6-36 PENCOEG N V 5 Client Success is Our Success 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(£) 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. City ofNewport Beach Underground Utility Assessment District No. 113 (West Balboa Island) Preliminary Engineer's Report September 25, 2018121 6-37 PENCOEG N v 5 Client Success is Our Success Part V Diagram of Assessment A reduced copy of the Assessment Diagram is attached hereto. Full-sized copies of the Boundary Map and Assessment Diagram are on file in the Office of the City Clerk, of the City of Newport Beach. As required by the Act, the Assessment Diagram shows the exterior boundaries of the Assessment District and the assessment number assigned to each parcel of land corresponding to its number as it appears in the Assessment Roll contained in Part III Table I. 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. City ofNewport Beach Underground Utility Assessment District No. 113 (West Balboa Island) Preliminary Engineer's Report September 25, 2018122 6-38 Lr3' !II� p�h ! 139 135 ej � 2�5 W 0 �4 tia5 W IL , -f V d � a a `LU 1 0 LU Z LL 0 L) ►-Z i rn M w ❑ V d � w F ❑ q 7 g I ¢ 0? j 2 Z Z Q O w 0 ww W¢ } W W Pw W N Lh I l3 PLn m Q J F❑ Ln w U J Q p Q J O �: P�� Lu D ui O J w O O Q' d Z Z W a d W a��w h w==`e W 2 N iii O a u Vn C7 w w�u�,� a=ww N �r Ln LULj N zLL�nC N a c7 a a a. a ¢❑❑ Q ti a C) LU a O w Z Ny�91 N j.a� � Sh r) I , ) : a `LU 1 0 LU Z LL 0 L) ►-Z i rn M PENCOEG N V 5 Client Success is Our Success 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. 113. 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. City ofNewport Beach Underground Utility Assessment District No. 113 (West Balboa Island) Preliminary Engineer's Report September 25, 2018124 • �/ PENCOEG N V 5 Client Success is Our Success Failure to convert individual service corrections 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. City ofNewport Beach Underground Utility Assessment District No. 113 (West Balboa Island) Preliminary Engineer's Report September 25, 2018125 6-41 PENCOEG N V 5 Ckent Success is Our Success Right -of -Way Certificate STATE OF CALIFORNIA COUNTY OF ORANGE CITY OF NEWPORT BEACH The undersigned hereby CERTIFIES UNDER PENALTY OF PERJURY that the following is all true and correct. That at all time herein mentioned, the undersigned was, and now is, the authorized representative of the duly appointed SUPERINTENDENT OF STREETS of the CITY OF NEWPORT BEACH, CALIFORNIA. That there have now been instituted proceedings under the provisions of Article XIIID of the California Constitution, and the "Municipal Improvements Act of 1913," being Division 12 of the Streets and Highways Code of the State of California, for the construction of certain public improvements in a special assessment district known and designated as ASSESSMENT DISTRICT NO. 113 (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 , 2018 at CITY OF NEWPORT BEACH, California. SUPERINTENDENT OF STREETS CITY OF NEWPORT BEACH State of California M David Webb, PE City ofNewport Beach Underground Utility Assessment District No. 113 (West Balboa Island) Preliminary Engineer's Report September 25, 2018126 6-42 PENCOEG N V 5 Ckent Success is Our Success 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. 113 (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. 1 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 , 2018 at CITY OF NEWPORT BEACH, California. By: _ David Webb, PE CITY OF NEWPORT BEACH STATE OF CALIFORNIA City ofNewport Beach Underground Utility Assessment District No. 113 (West Balboa Island) Preliminary Engineer's Report September 25, 2018127 6-43 PENCOENG N V 5 Client Success is Our Success APPENDIX A. Assessment Calculations City of Newport Beach Underground Utility Assessment District No. 113 (West Balboa Island) Preliminary Engineer's Report September 25, 2018128 =0— �nnr99 9 X n 7T Z9Z9 is C w w- m s--- o m m M .n --- m o e6. ve. av, �- - n vry cv r.M M S 1 o@ N 7f2 s �"0 p A v n c9 N M M "';+ C: r [ r rv-r N N Npa a N ---- ---------------------------- C r ---------------------------- 2 r M N 9 Tv Y P h R M i ro Fmv {�V i M n n h n W w W •h N •h u n Yr rn 4H W w r u a v u ry a CV N n n 5V n M M1 n [y b y e+l M M e•i t� h nt ev is ni Mev Y ey M ca r m rn-- P o- m F r - - - M N AA h V 1L ' S] W sl j] ji} y iJ lu it Iii lil it W w yl w W 11 W L 11 W L } Y Y } } :• Y } Y Y } Y } } �• } W 57'] W'll WWG7 N W '7 WW.UWW'7 W W L� W W .L .i1 11l y W til W !ll W JJ W til W llf W J] uj L W IL L r r r r r r r r r r r r r r r r r+ r r r nm or�w`c�v$o ovi?$w vx,-e,o o- `o'cz z M �•`.h' `�' `�'c as ao RP e - F - -z -z zzzzza`zzzzzzzzzzzzzzzzzz ooaon'J oOooQ`0 v o o o a G oc} o O o oCC} oc T Y T 11 M '9 .... TTT Y T T} T T T T T Y T T T *n L^. 5] Vl :^ :.] W +I -i7 W *h u7 +A � v7 Ur Vi L7 +h N Vl +h L"• Yl 2 Z dI�IG c+ a O � Y x r we x mei c a z z z z r:l c�ITVINIa11M M c c p g q p :dAAm zzzzzz C C 6 C D 4 T T T T Y T a¢ca¢¢ m a�mcmm 2 2 Z 2 Z 2 t 00 Com] G amu oa V CI m tUd S7 � N � N � G oar � ;^ � w Q A to to ti n H rry r~ Com] G amu ala :C 1W C C �L1*1P ,r F i 0. a P s n �tomM°ro€ J I Ili P li a r n U � W J a c c W n F LTJ ya aaaa.ia�n' Qm Q b o � Q Ll v Ll c O V m C Q iQ w W {1J ; my N o :: Q w `c - •- Orn a m �z mww�yw,arr}. no nw ujnw; dmy a a c c � 4 V QCC77y E 0. Q � . V L 3 `a vs c E - C? 6609 A 6d ad3oci; oq as i az a U7 RW Ii �n 2 J.uwwyww. r n 'r• -v r"v ala :C 1W C C �L1*1P ,r ImIM1�l�ial� n m r M1 nry n � In"I�Inl�fp m n a� n ro ti h; II I�I�In1M1l I.I�I�I�IN Q jj<�� [¢1c� L, WU w L L w aaaaa c� 0-1o1a a w r W W W T T T 11M olalolo dMI4 ¢ w l< w ¢a a Y as LLa *10 CY PENCO Engineering, Inc. 16842 Von Karman Avenue, Suite 150 Irvine, CA 92606 (949) 753-8111 www.pencoeng.com Gary Solsona, PE Project Manager PENCO Engineering, Inc. O: (949) 777-1580 M: (909) 234-7857 gsolsona@pencoeng.com Jeffrey M. Cooper, PE Director of Municipal Services NV5 O: (949) 585-0477 Jeff.Cooper@nv5.com ft City of Newport Beach BUDGET AMENDMENT 2018-19 EFFECT ON BUDGETARY FUND BALANCE: Increase Revenue Estimates X Increase Expenditure Appropriations Transfer Budget Appropriations SOURCE: from existing budget appropriations from additional estimated revenues X from unappropriated fund balance EXPLANATION: ATTACHMENT D NO. BA- 19BA-009 AMOUNT:j $30,000.00 This budget amendment is requested to provide for the following: To increase expenditure appropriations from AD Assessment Engineering to ballot and tabulate voting for AD -113 ACCOUNTING ENTRY: BUDGETARY FUND BALANCE Fund Object Description 663 300000 Assessment District #113 REVENUE ESTIMATES Og Object Project Description EXPENDITURE APPROPRIATIONS Org Object Project 66302 941006 Signed: o�- Fina r Signed Signed: Approval: Finance D Description AD Assessment Engineering Admigrrf"strXfive Approval: City Manager City Council Approval: City Clerk Amount Debit Credit $30,000.00 ` Automatic $30,000.00 -/S-Is Date Date Date 6-50 Increase in Budgetary Fund Balance ANDX Decrease in Budgetary Fund Balance No effect on Budgetary Fund Balance ONE-TIME? M Yes No This budget amendment is requested to provide for the following: To increase expenditure appropriations from AD Assessment Engineering to ballot and tabulate voting for AD -113 ACCOUNTING ENTRY: BUDGETARY FUND BALANCE Fund Object Description 663 300000 Assessment District #113 REVENUE ESTIMATES Og Object Project Description EXPENDITURE APPROPRIATIONS Org Object Project 66302 941006 Signed: o�- Fina r Signed Signed: Approval: Finance D Description AD Assessment Engineering Admigrrf"strXfive Approval: City Manager City Council Approval: City Clerk Amount Debit Credit $30,000.00 ` Automatic $30,000.00 -/S-Is Date Date Date 6-50