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Home My WebLink About07 - Petition Certification and Request for Funding for Proposed Underground Assessment District No. 120 (Santa Ana Avenue and Cliff Drive Area)Q �EwPpRT CITY OF O � z NEWPORT BEACH <,FORN'P City Council Staff Report November 24, 2020 Agenda Item No. 7 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, Assistant City Engineer, msinacori@newportbeachca.gov PHONE: 949-644-3342 TITLE: Resolution No. 2020-101: Petition Certification and Request for Funding for Proposed Underground Assessment District No. 120 (Santa Ana Avenue and Cliff Drive Area) ABSTRACT: Residents within a 2 -block area of Santa Ana Avenue have now submitted a Petition to the City of Newport Beach signed by at least 60 percent of the affected property owners requesting formation of Underground Utility Assessment District Number 120. The next step in the assessment district process would be for the City to advance funds to retain an assessment engineer to prepare an Engineer's Report and to circulate ballots for a property owner vote on the assessment. Staff will assist the process by developing and soliciting a property owner vote in the coming months to be based on a conservative cost estimate developed at the completion of the schematic level design. RECOMMENDATION: a) Staff recommends the City Council find 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. 2020-101, A Resolution of the City Council of the City of Newport Beach, California, Accepting Petition of Assessment District No. 120; and c) Approve Budget Amendment No. 21-020 to advance and appropriate $100,000 from General Fund and increase expenditures in Account No. 66902-941006 (AD Assessment Engineering). 7-1 Resolution No. 2020-101: Petition Certification and Request for Funding for Proposed Underground Assessment District No. 120 (Santa Ana Avenue and Cliff Drive Area) November 24, 2020 Page 2 FUNDING REQUIREMENTS: Upon approval of the Budget Amendment, sufficient funding is available to complete this task. The following fund will be expensed: Account Description Account No. Expensed to Date Estimated Total Cost AD 120 Assessment Engineering 66902-941006 $11,957.82 $100,000.00 This account is set up to track engineering costs for proposed Assessment Districts requested by the community prior to a formal vote of those within the proposed district. Staff estimates preliminary design and assessment engineering costs to total $100,000 for this Assessment District. Costs incurred to date amount to $11,957.82. In the event that formation of the District is successful, these costs will be reimbursed by cash contributions and bond proceeds from property owners within the District. If the District fails to be formed, funds advanced for preliminary work cannot be recovered from the proposed district property owners. In such case, the General Fund will cover the advance used for preliminary formation costs. DISCUSSION: The property owners of Proposed Underground Assessment District No. 120 ("AD 120") have submitted a Petition to the City requesting a Special Assessment District be formed, pending approval of a district wide vote, to finance the undergrounding of overhead utilities within the proposed district. The boundaries of the proposed AD 120 are shown on Attachment A. One of the initial steps in the District formation process is the circulation of the Petition for Special Assessment Proceedings. Proponents of AD 120 circulated the Petition to property owners within the proposed district and have now submitted the petition signatures to the City. The submitted petition signatures represent just over 70 percent of the assessable land within the proposed District. The City's guidelines require a minimum of 60 percent in favor of the District in order to proceed with the formation of a District. Harris & Associates has now reviewed and certified that owners representing over 60 percent of the assessable property within proposed AD 120 had signed the Petition in support of undergrounding overhead utilities. Staff is proposing that the expedited formation process be utilized for this District that has been done for the four recently approved districts (AD -111, 113, 116, 116b and 117). This process reduces the financial risk to the City and builds on the momentum that has occurred during the signature gathering time for the Petition. The process proposed will be as follows: City staff retains an Assessment Engineer to prepare the Engineer's Report and prepare ballots for the property owners to vote on the undergrounding proposal based on a conservative cost estimate developed at the completion of the schematic level design rather than waiting for the completion of all the necessary utility company design work (which has been ranging around 18-24 months). 7-2 Resolution No. 2020-101: Petition Certification and Request for Funding for Proposed Underground Assessment District No. 120 (Santa Ana Avenue and Cliff Drive Area) November 24, 2020 Page 3 If the vote for AD 120 is successful, with formation completed, the City will then direct final utility design. It is estimated to take approximately two years after a successful early vote to complete the design and to bid the work. If the vote for AD 120 is unsuccessful, the City will stop all further work and not incur additional design costs. ENVIRONMENTAL REVIEW: Staff recommends the City Council find 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). NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENTS: Attachment A — Proposed Assessment District Boundary Map Attachment B — Resolution No. 2020-101 Attachment C — Budget Amendment 7-3 ATTACHMENT A 7-4 w 6' w w w v o P O�� ESP woo �OOp \ 308 oN CA3w NO�Mw O . Cli ti v `b � o a ti c w o'�°``' o rn cn N N cu o0 o v N ti cn w �� ww y CO ;:51 leo N O N w w A OW w \ �w qN vi w N � � N � V � V C) ✓O � N o N N R■ • w o o w o ,�'� ti� v S p N w 4i w tiw w gNTq (oN o 3015 • 4rj 301, 3016 o N N t w w w w w 3012 CD j W N w 0° 0 0o w 4� o �to 4 l � o � 3008 \ S ci o � 3004 w w w w w w w w U cn ccnn � w v 2961 W\ v 3000 NTA � ANA \ I A \ 2957 I \ 2953 ♦ � ti N N 330 �� 0ti o 2915 2949 C� �� 61, \ D O PROPOSED ASSESSMENT DISTRICT NO. 120 O POLES TO REMAIN _ _ _ ASSESSMENT DISTRICT BOUNDARY POLES TO BE REMOVED (19) PROPOSED JOINT TRENCH (1,610 LF) 04 AD POTENTIAL POLES TO BE ADDED (1) POTENTIAL PROPOSED JOINT TRENCH (230 LF) 4A OVERHEAD LINES TO BE REMOVED FIGURE 1A N OVERHEAD LINES TO REMAIN PARCELS: 23 1"=200 PAGE 1 OF 1 10-19-20 7-4 ATTACHMENT B RESOLUTION NO. 2020-101 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, ACCEPTING THE PETITION FOR THE FORMATION OF UNDERGROUND UTILITY ASSESSMENT DISTRICT NO. 120 WHEREAS, the owners of certain real property situated in the City of Newport Beach ("City") have filed with the City Clerk several signed counterparts of a petition requesting the implementation of a project for the undergrounding of certain existing overhead utility facilities, together with appurtenant work and improvements, as described therein ("Petition"), the cost of which is to be specifically assessed against each parcel of land benefitting from such improvements as shown on an exhibit map attached to the Petition; WHEREAS, the Petition contains an express waiver of statutory proceedings under the Special Assessment Investigation, Limitation and Majority Protest Act of 1931, as provided in Section 2804 of the Streets and Highways Code of the State of California and satisfies the requirements for instituting proceedings for the conversion of existing overhead electric and communication facilities to underground locations in accordance with Section 5896.5 of the Streets and Highways Code of the State of California; WHEREAS, the City Clerk has also received a Certificate of Sufficiency of Petition to the effect that the Petition has been signed by persons owning lands constituting more than sixty percent (60%) in area of the land subject to assessment within the proposed assessment district, which is attached hereto as Attachment 1; and WHEREAS, this City Council finds that the owners of more than sixty percent (60%) in area of the land proposed to be assessed for the proposed improvements, including the owners of more than five (5) of the subject parcels, have signed such Petition and that the Petition contains the matters required by Sections 2804 and 2804.5 of the Streets and Highways Code. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The City Council does hereby find that the Petition, as filed with the City Clerk, is legally sufficient and is accepted. Section 2: The special assessment proceedings shall be undertaken by the terms of the Petition, pursuant to the Municipal Improvement Act of 1913 and without further compliance with the Special Assessment Investigation, Limitation and Majority Protest Act of 1931 (commencing with Section 2800 of the Streets and Highways Code). 7-5 Resolution No. 2020 - Page 2 of 3 Section 3: This City Council hereby finds and determines that the public interest and convenience will be served by the taking of such proceedings. Section 4: This action is "final" within the meaning of Streets and Highways Code Section 3012. 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 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) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential to have a significant effect on the environment. 7-6 Resolution No. 2020 - 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 24th day of November, 2020. Will O'Neill Mayor ATTEST: Leilani I. Brown City Clerk APPROVED AS TO FORM: CITY TTORNEY'S OFFICE Aaron C. Harp City Attorney Attachment: Attachment 1 - Certificate of Sufficiency of Petition 7-7 CERTIFICATE OF SUFFICIENCY OF PETITION STATE OF CALIFORNIA COUNTY OF ORANCE CITY OF NEWPORT BEACH The undersigned hereby CERTIFIES as follows: That I am the duly appointed ASSESSMENT ENGINEER of the CITY OF NEWPORT BEACH, CALIFORNIA. "+ That on the 5th day of November, 2020, I reviewed a Petition for the formation of an Assessment District for certain public works of improvement, together with appurtenances, appurtenant work and acquisition, where necessary, in a special assessment district known and designated as ASSESSMENT DISTRICT NO. 120 (hereinafter referred to as the "Assessment District'), a copy of which is on file in the Office of the City Clerk. The undersigned hereby further specifically certifies as follows: 1. That I caused said Petition to be examined and my examination revealed that said Petition was signed by not less than five (5) owners of assessable land in the proposed Assessment District as shown by the last equalized assessment roll used by the City, owning lands constituting more than fifty percent (50%) of the area of all assessable lands within the proposed Assessment District, all as prescribed by Section 5896.6 of the Streets and Highways Code of the State of California. 2. Pursuant to the Special Assessment Investigation, Limitation and Majority Protest Act of.1931, that said Petition did represent seventy-two and eighty-two hundredths of a percent (72.82%) of the assessable area of property within the proposed boundaries of the Assessment District. Executed this 5" day of November, 2020 at Irvine, California. ALISON BOULEY, P.E. HARRIS & ASSOCIATES ASSESSMENT ENGINEER CITY OF NEWPORT BEACH STATE OF CALIFORNIA 7-8 7-9 w 6' w w w v o co P O�� ESP C,\ woo �OOp \ 308 oNw 00 °' coAc wc" O 07 w rn N w o0 o v N ti CNw �� co COWw N O N y CO w Aj w /v OW w \ �o �w q vi w N � � N N � V � V C) � • 00N 110 • `° o w o o w ,�w • F w m oQ NT C)N www wccc" w C o 301$ •�o 00 00 a, N qTq 30 Q, o 3016C) uJ w w 0) q `fie w °° 0 wo 3012 rn cow 47 w 3 0 4 0 ~ o 0 3008 \ S °o u 3004 w w w w w w w w 2961 U v, i C" CO w v W\ 3000 NTA ANA \ I A \ 2957 \ m � N 2953 ♦ 330 0ti 2915 2949 C� �� 61, \ D O \ ,Lr,g'L��–zi �Vp (01,'l, PROPOSED ASSESSMENT DISTRICT NO. 120 O POLES TO REMAIN POLES TO BE REMOVED (19) OVERHEAD LINES TO BE REMOVED – – — ASSESSMENT DISTRICT BOUNDARY OVERHEAD LINES TO REMAIN FIGURE 1A E PROPOSED JOINT TRENCH (1,158 LF) PARCELS: 23 ' -200 PAGE 1 OF 1 10-14-20 7-9 Assessment District Number Number APN NO. Street Petition Signed Verified Petition Lot SF Petition Signer Property Owner Comments 1 120 049-101-05 3016 CLIFF DR 8/30/2020 Yes 6,500 Ann Winthrop WINTHROP MARC JOEL TR WINTHROP LIVING TR Winthrop Living Trust provided trust information naming Ann Winthropas a trustee. 2 120 049-101-06 3012 CLIFF DR 8/13/2020 Yes 6,625 Kathi Ramming RAMMING RAYMOND PHILLIP III & KATHI 3 120 049-101-07 3008 CLIFF DR 8/30/2020 Yes 6,625 Darryl Wong WONG DARRYL TR FBO MARIKO WONG 4 120 049-101-08 3004 CLIFF DR 8/25/2020 Yes 6,625 Carmen B Ripley RIPLEY CARMEN B TR 5 120 049-101-09 3000 CLIFF DR 8/13/2020 Yes 6,625 Fran Bennett BENNETT WILLIAM B TR BENNETT FAMILY TR Bennett Family Trust provided formation documents listing Fran Bennett as a trustee. 6 120 049-103-01 2961 CLIFF DR 8/28/2020 Yes 33,253 Chau,Dang HALLER DAVID DANG, CHAU 7 120 049-103-02 2957 CLIFF DR N/A No 23,313 N/A DAVIDSSON STURE TR 8 120 049-110-01 3334 W COAST HWY 10/25/2020 Yes 31,154 Marianne Brooks BROOKS MARIANNE C TR APN 049-110-01 includes 3334 W. Coast Hwy and 3400 W. Coast Hwy. 9 120 425-383-09 3015 CLIFF DR N/A No 4,601 N/A SMITH PAUL LYLE TR 10 120 425-383-10 3011 CLIFF DR 8/19/2020 Yes 4,601 Elena S ivack SPIVACK ADAM I & ELANA M 11 120 425-383-12 233 SANTA ANNA AVE 8/27/2020 Yes 4,600 Sandy GoldbergGOLDBERG ROSE & SANDY 12 120 425-383-13 231 SANTAANNAAVE 8/27/2020 Yes 4,601 Justin Beget BEGET JUSTIN T TR THE BEGET FAMILY TR 13 120 425-383-14 225 SANTA ANNA AVE 8/29/2020 Yes 4,601 Ron S Haughey and Steve J Smith HAUGHEY RON S 14 120 425-383-15 221 SANTA ANNA AVE 8/29/2020 Yes 4,550 Maureen Ortlieb ORTLIEB MICHAEL A TR ORTLIEB FAMILY LIVING TR Ortlieb Trust provided formation documents listing Maureen Ortlieb as a trustee. 15 120 425-383-16 217 SANTAANNAAVE 9/1/2020 Yes 3,870 Kimberly Soderstrom SODERSTROM CHARLES W TR KIMBERLEY A SODERSTROM IRREVOC TR 16 120 425-383-17 215 SANTAANNAAVE 9/11/2020 Yes 4,131 AnthonyClark CLARK ANTHONY E&KIMBERLY 17 120 425-383-18 209 SANTAANNAAVE 9/3/2020 Yes 3,229 Ray CWane RAY WAYNE TR 18 120 425-383-19 201 SANTA ANNA AVE 9/2/2020 Yes 5,160 Shirley Von Bogenberg VON BOGENBERG SHIRLEY TR S VON BOGENBERG LIVING TR 19 120 425-383-20 237 SANTA ANNA AVE N/A No 4,601 N/A W ESTPHAL JAY V & LYDIA 20 120 425-383-21 3001 CLIFF DR 9/2/2020 Yes 4,600 Ferit Kurtkan KURTKAN FERIT TR KURTKAN FAMILY TR 21 120 049-102-04 2948 CLIFF DR 9/2/2020 Yes 6,098 Leslie Alsenz ALSENZ, LESLIE JO TR 22 120 049-103-08 1 2949 ICLIFF DR 1 8/27/2020 1 Yes 11,200 jAntonio Ca nolo ICAGNOLO ANTONIO G 23 120 049-103-03 1 2953 ICLIFF DR I N/A I No 26,700 N/A IWANG HUEI YU TR Total 217,863 Verified Petitions Square Footage 158,648 Percentage of Verified Petitions by Area 72.82 7-10 Department: Public Works Requestor: Angela Crespi City of Newport Beach BUDGET AMENDMENT 2020-21 ❑ CITY MANAGER'S APPROVAL ONLY 0 COUNCIL APPROVAL REQUIRED ONETIME: ❑J Yes ❑ No Approvals BA#: 21-020 ATTACHMENT C IFinance Director:) � Date It — 17 Ob I Clerk: Date To increase expenditure appropriations for the Underground Assessment District #120 with an advance from ❑ from existing budget appropriations General Fund unappropriated fund balance for the engineering and design work. In the event that formation of ❑ from additional estimated revenues the District is successful, these costs will be reimbursed by the bond proceeds. The General Fund will be ❑' from unappropriated fund balance responsible for the costs incurred if project formation is not successful. Fund # Org Object Project Description 669 66999 691010 TRANSFER IN GENERAL FUND DITU Fund # Org Object Project Description 669 66902 941006 AD #120 - AD ASSESSMENT ENGINEERING 010 01099 99 61 69 GENERAL FUND INTERFUND TRANSFR - Fund # Object Description 010 300000 General Fund - FUND BALANCE CONTROL 669 300000 Assessment Dist #120 - FUND BALANCE CONTROL Increase or (Decrease) $ j 100, 000.00 Subtotal $ 100,000.00 Increase or (Decrease) $ 100, 000.00 100,000.00 Subtotal $ 200,000.00 Increase or (Decrease) $ (100,000.00) 100,000.00 Subtotal $ (100,000.00) Fund Balance Change Required 7-11