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HomeMy WebLinkAbout08 - Proposed Assessment District No. 120-2 — Area Along Santa Ana Avenue, Cliff Drive, La Jolla Lane and La Jolla DriveQ �EwPpRT O c — '9 TO: FROM: CITY OF NEWPORT BEACH City Council Staff Report November 16, 2021 Agenda Item No. 8 HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL David A. Webb, Public Works Director - 949-644-3311, dawebb@newportbeachca.gov PREPARED BY: Michael J. Sinacori, P.E., Assistant City Engineer msinacori@newportbeachca.gov PHONE: 949-644-3342 TITLE: Resolution Nos. 2021-111 and 2021-112: Proposed Assessment District No. 120-2 — Area Along Santa Ana Avenue, Cliff Drive, La Jolla Lane and La Jolla Drive ABSTRACT: The City Council formed Undergrounding Utility Assessment District No. 120 on April 13, 2021, after a positive vote of 23 property owners. Shortly after that approval, residents on the adjacent La Jolla Drive and La Jolla Lane expressed a strong desire to be included in the approved district. As a result, a request to expand the district was made. The larger assessment district has 44 property owners. At least 60 percent of these property owners had signed and submitted a petition to the City of Newport Beach (City), requesting the formation of the larger assessment district. The City Council certified the petition for AD 120-2 on October 12, 2021 and is now asked to declare its intention to levy assessments and issue bonds to finance the undergrounding, approve the Assessment Preliminary Engineer's Report, and set January 11, 2022, as the time and place for a Public Hearing for AD 120-2. RECOMMENDATION: a) The City Council deemed this project exempt from the California Environmental Quality Act (CEQA) on October 12, 2021 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. 2021-111, 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. 120-2; and 8-1 Resolution Nos. 2021-111 and 2021-112: Proposed Assessment District No. 120-2 — Area Along Santa Ana Avenue, Cliff Drive, La Jolla Lane and La Jolla Drive November 16, 2021 Page 2 c) Adopt Resolution No. 2021-112, 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. 120-2. DISCUSSION: The City Council formed Undergrounding Utility Assessment District No. 120 on April 13, 2021, after a majority vote of 23 property owners in this two -block area. Shortly after that approval, residents on the adjacent La Jolla Drive and La Jolla Lane expressed a strong interest to be included in the approved district. As a result, a request to expand the district was made. In order to expand the existing assessment district as desired, a new district, Assessment District 120-2, will have to be formed that will include both the area within Undergrounding Utility District No. 120 and the adjacent properties on La Jolla Drive and La Jolla Lane. The larger, Assessment District 120-2 has 44 property owners who submitted a petition to the City, signed by at least 60 percent of the owners, requesting the formation of the larger assessment district. The City Council certified the petition to expand the District on October 12, 2021. Assessment District No. 120-2 is being proposed for the conversion of existing overhead utilities to underground locations. The property owners within the boundaries of the proposed assessment district will bear the cost of the improvements and the associated proceedings. The Municipal Improvement Act of 1913 governs the procedures used to create the assessment district. Bonds issued under the Improvement Bond Act of 1915 carry up to a 40 -year term and are issued to finance assessments not paid in cash within 30 days after confirmation of the assessment. Staff is recommending a 20 -year term for AD 120- 2. The Federal Income Tax Component of Contribution (ITCC) has been eliminated pursuant to City Council direction. The ITCC is a tax assessed whenever private party contributions in aid of construction are made. To date, underground utility districts have not been assessed this tax as underground utility districts are viewed as providing public benefit by increasing community aesthetics and public safety. If following the public hearing and balloting AD 120-2 is formed, an assessment lien would be recorded on the title of properties included in the district and the existing assessments associated with the original AD 120 would be discharged. 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. 8-2 Resolution Nos. 2021-111 and 2021-112: Proposed Assessment District No. 120-2 — Area Along Santa Ana Avenue, Cliff Drive, La Jolla Lane and La Jolla Drive November 16, 2021 Page 3 The total assessment for Proposed Assessment District No. 120-2 is estimated as follows: Proaosed Assessment District No. 120-2 ITEM COST Cost of Design and Construction $2,153,900.00 Incidental Costs and Expenses $307,100.00 Financing Bond Costs $164,000.00 Estimated Total Cost: $2,625,000.00 In addition to the payment of the assessment, each property owner will be responsible for the costs of connecting the main service conduit in the public right-of-way to the property owner's home or business, if applicable. 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. 120-2: Resolution of Intention November 16, 2021 Public Hearing January 11, 2022 Utility Companies Design Completed December 2022 Tentative Bond Sale Period April thru June 2023 City managed utility construction work July 2023 commences Property owners notified to install service March 2024 connections Property owners' complete conversions September 2024 Public utilities begin to remove overhead October 2024 structures Public utilities finish removing poles and February 2025 overhead structures The Assessment Engineer used a lot size methodology to apportion assessments within this district based on the finding that a majority of the properties are receiving similar safety, connection aesthetic and view enhancement benefits. 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 or have frontage facing overhead facilities receive an aesthetic benefit. 8-3 Resolution Nos. 2021-111 and 2021-112: Proposed Assessment District No. 120-2 — Area Along Santa Ana Avenue, Cliff Drive, La Jolla Lane and La Jolla Drive November 16, 2021 Page 4 There is a direct correlation between the size of the parcel and the extent to which a property may develop and thus the Improved Aesthetic Benefit a parcel receives from the undergrounding of adjacent utilities is proportional to the size 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. Access by emergency vehicles can also be blocked by downed power lines. Properties that have a frontage along which the existing overhead utilities will be removed, and have existing overhead utilities that will be removed along the properties' primary ingress/egress route, receive a safety benefit. This benefit is equal for all parcels receiving this benefit because all parcels fronting the existing overhead utilities are equally at risk of being damaged by falling overhead utilities and having their primary ingress/egress route blocked. Therefore, the Additional Safety Benefit is based on the average parcel area within the assessment district boundary. • Connection Benefit. This benefit relates to the enhanced reliability of service from the utilities being underground, due to having all new wires and equipment and having that equipment underground, which reduces the threat of service interruption from downed lines. When compared to overhead systems, fewer outages occur due to various acts of nature, traffic collisions and obstructions (such as trees). Properties that are connected to the facilities proposed to be undergrounded receive a connection benefit. This benefit is equal for all parcels receiving this benefit that have a singular connection. As such, the benefit is based on the average parcel area within the assessment district boundary. Parcels with more than one separate connection receive an increased benefit calculated by multiplying the number of connections by the average parcel area within the assessment district boundary. • View Enhancement Benefit. This benefit relates to the enhanced view as a direct result of the utilities being underground. Properties that receive a view benefit face Newport Harbor and/or the Pacific Ocean and are located along, or have a view down, Santa Ana Avenue, La Jolla Drive or La Jolla Lane. Each parcel that has poles or overhead lines that impede their view of Newport Harbor and/or the Pacific Ocean and that are being undergrounded as part of this district, benefit equally from the undergrounding of the lines. Therefore, this benefit is based on the average parcel area within the assessment district boundary. The range for the estimated assessment costs per parcel is as follows: District No. Ran e of Assessments 80% of Properties Assessed AD 120-2 $26,787.30 to $164,100.95 Under $68,500 Resolution Nos. 2021-111 and 2021-112: Proposed Assessment District No. 120-2 — Area Along Santa Ana Avenue, Cliff Drive, La Jolla Lane and La Jolla Drive November 16, 2021 Page 5 Note that assessments vary due to the property size and benefits received. Ballot Tabulation Procedures: All assessment ballots submitted to the City Clerk prior to the close of the public hearing, recommended to be set for January 11, 2022, will be tabulated per the ballot tabulation procedures directed by City Council Policy L-28. FISCAL IMPACT: While there is no direct fiscal impact related to this item, the City Council approved Budget Amendment No. 22-017 on October 12, 2021, appropriating $37,500 from the General Fund to Account No. 66902-941006 (AD Assessment Engineering) for preliminary design and assessment engineering costs. 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 expanded district fails to be formed, funds advanced for preliminary work cannot be recovered from the formerly approved AD -120 district property owners. In such case, the General Fund will cover the advance used for preliminary formation costs. An annual administrative assessment of a maximum of two hundred and fifty dollars ($250.00) will be levied on parcels in AD 120-2 in order to pay for ongoing administration costs. ENVIRONMENTAL REVIEW: On October 12, 2021 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). 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 — Resolution No. 2021-111 Attachment B —Resolution No. 2021-112 Attachment C — Notice of Exemption 8-5 ATTACHMENT A RESOLUTION NO. 2021-111 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. 120-2 WHEREAS, after receiving a petition from certain property owners, the City of Newport Beach ("City") undertook proceedings to form Assessment District No. 120 ("AD 120") in order to finance certain public works of improvement, namely, the conversion of certain overhead electrical, cable and communication facilities to underground locations, together with appurtenant work ("AD 120 Improvements"); WHEREAS, after a public hearing on April 13, 2021, the property owners within AD 120 cast sufficient ballots in favor of the district's formation, and the City recorded a Notice of Assessment against each parcel within AD 120 for the purpose of securing the assessments required to finance the AD 120 Improvements; WHEREAS, subsequent to the formation of AD 120, owners of several parcels neighboring the district ("Neighboring Parcels") expressed to the City a desire to finance improvements similar to the AD 120 Improvements, WHEREAS, some of the proposed improvements in the Neighboring Parcels would benefit parcels in AD 120 and the cost per parcel to finance the AD 120 Improvements and improvements in the Neighboring Parcels (collectively, "Combined Improvements") on a combined basis would be less than the cost per parcel to finance the improvements separately due to economies of scale, resulting in a lower assessment per parcel than if formed separately; WHEREAS, a number of property owners within AD 120 and a number of the owners of the Neighboring Parcels (collectively, "Owners") desire to form a new assessment district, Assessment District No. 120-2 (the "Assessment District"), to finance the Combined Improvements and have filed with the City Clerk several signed counterparts of a petition requesting the implementation of a project to finance the Combined Improvements ("Petition"), the cost of which is to be specifically assessed against each parcel of land benefiting from such improvements as shown on a map attached to the Petition; Resolution No. 2021 - Page 2 of 8 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 "Proposed Assessment District No. 120-2" ("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 Harris & Associates, Inc., 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 Combined Improvements under the provisions of the 1913 Act; WHEREAS, the City Engineer, with the assistance of Harris & Associates, Inc., is competent to make and file with the City Clerk the report with regard to the Combined 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 Combined 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: 8-7 Resolution No. 2021 - Page 3 of 8 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 Combined 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 streetlights and appurtenant work therewith as shown on the Map. The Combined 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 Combined 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 Combined Improvements, and the Combined 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 Combined Improvements, to make the expenses thereof chargeable upon the area included within the Assessment District, and to form the Assessment District. Resolution No. 2021 - Page 4 of 8 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 Combined Improvements. Section 6: This City Council finds and determines that before ordering the acquisition of the Combined 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: Harris & Associates, Inc., 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 Combined Improvements; (b) A general description of works or appliances already installed and any other property necessary or convenient for the operation of the Combined Improvements, if the works, appliances or property are to be acquired as part of the Combined Improvements; (c) An estimate of the cost of the Combined Improvements, and the cost of land, rights of ways, easements, and incidental expenses in connection with the Combined 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 Combined 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 Combined Improvements (the assessment shall refer to the subdivisions by their respective numbers assigned as provided in (d) above); and Resolution No. 2021 - Page 5 of 8 (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 of Orange. 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 Combined 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 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. 8-10 Resolution No. 2021 - Page 6 of 8 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 Combined 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 Combined Improvements, and no notice of award of contract shall be published. 8-11 Resolution No. 2021 - Page 7 of 8 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 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 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 Combined 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 Combined Improvements, would benefit any current or future residents of the Assessment District. Section 17: 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, Division 6, 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. 8-12 Resolution No. 2021 - Page 8 of 8 Section 18: The City Council hereby determines that in the event the Assessment District is formed, the City Council will take any and all actions necessary to dissolve AD 120. Section 19: 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 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 16th day of November, 2021. Brad Avery Mayor ATTEST: Leilani I. Brown City Clerk APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE aron C. Harp City Attorney 8-13 ATTACHMENT B RESOLUTION NO. 2021-112 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. 120-2 WHEREAS, by Resolution No. 2021- ("Resolution of Intention") in the proceedings for the formation of Assessment District No. 120-2 ("Assessment District") this City Council ordered a report ("Report") prepared by Harris and Associates ("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 January 11, 2022, at 4:00 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 objections to the proposed Assessment District and the Report and to receive and count the ballots for and against the proposed Assessment District. 8-14 Resolution No. 2021 - Page 2 of 3 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 3 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, Division 6, 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. 8-15 Resolution No. 2021 - 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 16th day of November, 2021. Brad Avery Mayor ATTEST: Leilani I. Brown City Clerk APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE ov1,1` C. Ali Aaron C. Harp City Attorney Attachment: Exhibit 1 - Preliminary Engineer's Report 8-16 Preliminary Engineer's Report for Underground Utility Assessment District No. 120-2 (Santa Ana Avenue, Cliff Drive, La Jolla Lane, La Jolla Drive & Alley) Prepared under the provisions of the Municipal Improvement Act of 1913 For the City of Newport Beach County of Orange, California October 25, 2021 8-17 City of Newport Beach October 25, 2021 Underground Utility Assessment District No. 120-2 (Santa Ana Avenue Cliff Drive, La Jolla Lane, La Jolla Drive & Alley) Preliminary Engineer's Report TABLE OF CONTENTS APPENDIX A. Assessment Calculations Harris & Associates 8-18 Page Introduction and Certifications............................................................................................ 1 PART I Plans and Specifications................................................................................... 4 PARTII Cost Estimate..................................................................................................... 5 PART III Assessment Roll and Method of Assessment Spread ..................................... 6 Table1 — Assessment Roll.................................................................................. 8 Table 2 — Debt Limit Valuation.......................................................................... 9 Exhibit 1 — Method and Formula of Assessment Spread..................................10 PART IV Annual Administrative Assessment...............................................................20 PART V Diagram of Assessment District..................................................................... 21 PART VI Description of Facilities.................................................................................. 23 Right -of -Way Certificate.................................................................................. 24 Certification of Completion of Environmental Proceedings ............................ 25 APPENDIX A. Assessment Calculations Harris & Associates 8-18 City of Newport Beach October 25, 2021 Underground Utility Assessment District No. 120-2 (Santa Ana Avenue Cliff Drive, La Jolla Lane, La Jolla Drive & Alley) Preliminary Engineer's Report Page 1 AGENCY: CITY OF NEWPORT BEACH PROJECT: ASSESSMENT DISTRICT NO. 120-2 TO: CITY COUNCIL ENGINEER'S "REPORT" PURSUANT TO THE PROVISIONS OF SECTIONS 2961 AND 10204 OF THE STREETS AND HIGHWAYS CODE The purposes of this Assessment District is to provide financing to underground power, telephone and cable facilities in the area generally along Santa Ana Avenue, Cliff Drive, the alley east of Cliff Drive, La Jolla Lane and La Jolla Drive between Old Newport Boulevard and the alley east of Cliff Drive. The proposed underground utility improvements will provide conversion to an upgraded utility system and will enhance neighborhood aesthetics, safety, reliability and views of the Newport Harbor and the Pacific Ocean. The construction of these improvements will conform to existing City of Newport Beach, Southern California Edison, AT&T and Spectrum standards. The proposed improvements are of special and direct benefit to the properties within the boundary of the proposed assessment district. A prior assessment district ("AD 120") that was located within the boundaries of this proposed assessment district was formed after a public hearing on April 13, 2021 for the purpose of financing the construction of improvements similar to those to be financed by this proposed assessment district. The proposed assessment district includes several neighboring parcels that were not located within AD 120, and it seeks to finance additional improvements beyond those that were contemplated when AD 120 was formed. In the event that the proposed assessment district is formed, the City expects to dissolve AD 120 and remove the associated assessment liens. 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. 120-2 (hereinafter referred to as the "Assessment District"), I, Alison M. Bouley, P.E., a Registered Professional Engineer and authorized representative of Harris & Associates, the duly appointed Engineer of Work, herewith submits the "Report" for the Assessment District, consisting of six (6) parts as stated below. PART I This part contains the plans and specifications which describe the general nature, location and extent for the proposed improvements to be constructed, and are filed herewith and made a part hereof. Said plans and specifications are on file in the Office of the Superintendent of Streets. PART II This part contains an estimate of the cost of the proposed improvements, including capitalized interest, if any, incidental costs and expenses in connection therewith as set forth herein and attached hereto. Harris & Associates E -MLO City of Newport Beach October 25, 2021 Underground Utility Assessment District No. 120-2 (Santa Ana Avenue Cliff Drive, La Jolla Lane, La Jolla Drive & Alley) Preliminary Engineer's Report Page 2 PART III This part consists of the following information: A. A proposed assessment of the total amount of the costs and expenses of the proposed improvements upon the several subdivisions of land within the Assessment District, in proportion to the special benefits to be received by such subdivisions from said improvements, which is set forth upon the assessment roll filed herewith and made a part hereof. B. The total amount, as near as may be determined, of the total principal sum of all unpaid special assessments previously levied 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; and C. The total true value, determined from the latest Assessor's roll, of the parcels of land and improvements which are proposed to be assessed. PART IV This part contains the proposed maximum annual administrative assessment to be levied upon each subdivision or parcel of land within the Assessment District to pay the costs incurred by the CITY OF NEWPORT BEACH, and not otherwise reimbursed, resulting from the administration and collection of assessments, from the administration and registration of any associated bonds and reserve or other related funds, or both. PART V This part contains a map showing the boundaries of the Assessment District, and a diagram showing the Assessment District, the boundaries and the dimensions of the subdivisions of land within said Assessment District, as the same existed at the time of the passage of the Resolution of Intention. The Boundary Map and Assessment Diagram are filed herewith and made a part hereof, and part of the assessment. PART VI This part shall consist of the following information: A. Description of facilities B. Right -of -Way Certificate C. Environmental Certificate Harris & Associates I City of Newport Beach October 25, 2021 Underground Utility Assessment District No. 120-2 (Santa Ana Avenue Cliff Drive, La Jolla Lane, La Jolla Drive & Alley) Preliminary Engineer's Report Page 3 This report is submitted on October 25, 2021. HARRIS & ASSOCIATES W4 "." - /. a /- ALISON M. BOULEY, P.E. R.C.E. No. C61383 ENGINEER OF WORK CITY OF NEWPORT BEACH STATE OF CALIFORNIA Preliminary approval by the CITY COUNCIL of the CITY OF NEWPORT BEACH, CALIFORNIA, on the day of , 2021. CITY CLERK CITY OF NEWPORT BEACH STATE OF CALIFORNIA Final approval by the CITY COUNCIL of the CITY OF NEWPORT BEACH, CALIFORNIA, on the day of 2021. CITY CLERK CITY OF NEWPORT BEACH STATE OF CALIFORNIA Harris & Associates 8-21 City of Newport Beach October 25, 2021 Underground Utility Assessment District No. 120-2 (Santa Ana Avenue Cliff Drive, La Jolla Lane, La Jolla Drive & Alley) Preliminary Engineer's Report Page 4 Part I Plans and Specifications The plans and specifications to construct the utility undergrounding improvements, and any ancillary improvements thereof, for the area generally described as Underground Utility Assessment District No. 120-2, (Santa Ana Avenue, Cliff Drive, the alley east of Cliff Drive, La Jolla Lane & La Jolla Drive), describe the general nature, location and extent of the improvements for this Assessment District are referenced herein and incorporated as if attached and a part of this Report. A preliminary layout of the improvements is shown on the assessment diagram. Final plans and specifications will be prepared by the City in conjunction with the utility companies and will be on file in the office of the Superintendent of Streets when completed. Harris & Associates 8-22 City of Newport Beach October 25, 2021 Underground Utility Assessment District No. 120-2 (Santa Ana Avenue Cliff Drive, La Jolla Lane, La Jolla Drive & Alley) Preliminary Engineer's Report Page 5 Part II Cost Estimate CALCULATION Final Estimate Length in ft. Cost per ft. Utility Engineering & Construction Southern California Edison3,000 $50 $150,000.00 AT&T 3,000 $30 $90,000.00 Civil Utility Construction Cost 3,000 $544 $1,632,900.00 $1,872,900.00 Contingency 15.0% $281,000.00 TOTAL CONSTRUCTION $2,153,900.00 INCIDENTIAL EXPENSES: Assessment Engineering $100,000.00 Contract Inspection $50,000.00 City Administration $40,000.00 Financial Advisor $25,000.00 Bond and Disclosure Counsel $50,000.00 Placement Agent and Purchaser Counsel $25,000.00 Special Tax Consultant $6,000.00 Fiscal Agent $4,500.00 Printing, Advertising, Notices $3,500.00 Miscellaneous $3,100.00 Subtotal Incidental Expenses $307,100.00 Construction $2,153,900.00 Subtotal Incidental & Construction $2,461,000.00 FINANCIAL COSTS Bond Reserve 5.0% $131,000.00 Capitalized Interest - 5.0% for 6 Months 1.3% $33,000.00 Subtotal & Financial Costs 6.3% $164,000.00 TOTAL ESTIMATE $2,625,000.00 Notes: 1 Southern California Edison Utility Engineering & Construction Cost includes a credit for the salvage of the existing overhead utility system. No amount has been included for the Income Tax Component of Contribution (ITCC). Since the project will be funded by tax exempt bonds it is assumed that this tax will not be imposed for the improvements which are being funded. If the tax is imposed, a supplemental assessment would be needed. The ITCC tax could be up to 30% of the construction cost. Harris & Associates 8-23 City of Newport Beach October 25, 2021 Underground Utility Assessment District No. 120-2 (Santa Ana Avenue Cliff Drive, La Jolla Lane, La Jolla Drive & Alley) Preliminary Engineer's Report Page 6 Part III Assessment Roll and Method of Assessment Spread WHEREAS, on November 16, 2021 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. 2021 -XX, for the installation and construction of certain public improvements, together with appurtenances and appurtenant work in connection therewith, in a special assessment district known and designated as ASSESSMENT DISTRICT NO. 120-2 (hereinafter referred to as the "Assessment District"); and WHEREAS, said Resolution of Intention, as required by law, did direct the Engineer of Work to make and file a "Report", consisting of the following as required by Section 10204 of the Act: a. Plans and Specifications; b. A general description of works or appliances already installed and any other property necessary or convenient for the operation of the improvement, if the works, appliances, or property are to be acquired as part of the improvement; c. Cost Estimates; d. Assessment Diagram showing the Assessment District and the subdivisions of land therein; e. A proposed assessment of the costs and expenses of the works of improvement levied upon the parcels within the boundaries of the Assessment District; f. The proposed maximum annual assessment to be levied upon each subdivision or parcel of land within the Assessment District to pay the costs incurred by the City and not otherwise reimbursed resulting from the administration and collection of assessments or from the administration and registration of any associated bonds and reserve or other related funds. For particulars, reference is made to the Resolution of Intention as previously adopted. NOW, THEREFORE, I, Alison M. Bouley, P.E., the authorized representative of HARRIS & ASSOCIATES, pursuant to Article XIIID of the California Constitution and the "Municipal Improvement Act of 1913", do hereby submit the following: Pursuant to the provisions of law and the Resolution of Intention, I have assessed the costs and expenses of the works of improvement to be performed in the Assessment District upon the parcels of land in the Assessment District specially benefited thereby in direct proportion and relation to the special benefits to be received by each of said parcels. For particulars as to the identification of said parcels, reference is made to the Assessment Diagram, a copy of which is attached hereto and incorporated herein. 2. As required by law, a Diagram is hereto attached, showing the Assessment District, as well as the boundaries and dimensions of the respective parcels and subdivisions of land within said District as the same existed at the time of the passage of said Resolution of Intention, each of which subdivisions of land or parcels or lots respectively have been given a separate number upon said Diagram and in said Assessment Roll. Harris & Associates City of Newport Beach October 25, 2021 Underground Utility Assessment District No. 120-2 (Santa Ana Avenue Cliff Drive, La Jolla Lane, La Jolla Drive & Alley) Preliminary Engineer's Report Page 7 3. The subdivisions and parcels of land the numbers therein as shown on the respective Assessment Diagram as attached hereto correspond with the numbers as appearing on the Assessment Roll as contained herein. 4. NOTICE IS HEREBY GIVEN that bonds will be issued in accordance with Division 10 of the Streets and Highways Code of the State of California (the "Improvement Bond Act of 1915"), to represent all unpaid assessments, which bonds shall be issued in one or more series, each with a term not to exceed the legal maximum term as authorized by law, THIRTY-NINE (39) YEARS from the 2nd day of September next succeeding twelve (12) months from their date. Said bonds shall bear interest at a rate not to exceed the current legal maximum rate of 12% per annum. 5. By virtue of the authority contained in said "Municipal Improvement Act of 1913", and by further direction and order of the legislative body, I hereby recommend the following Assessment to cover the costs and expenses of the works of improvement for the Assessment District based on the costs and expenses as set forth below: For particulars as to the individual assessments and their descriptions, reference is made to Table 1 (Assessment Roll) attached hereto. 6. The Method of Spread of Assessment is as set forth in the exhibit identified as Part III (Exhibit 1), which is attached hereto, referenced and so incorporated. Harris & Associates 8-25 As Preliminarily As Approved Confirmed Estimated Cost of Design and Construction: $ 2,153,900.00 Estimated Incidental Expenses: $ 307,100.00 Estimated Financial Costs: $ 164,000.00 Estimated Contribution: $0.00 Estimated Total Assessment: $2,625,000.00 $0.00 For particulars as to the individual assessments and their descriptions, reference is made to Table 1 (Assessment Roll) attached hereto. 6. The Method of Spread of Assessment is as set forth in the exhibit identified as Part III (Exhibit 1), which is attached hereto, referenced and so incorporated. Harris & Associates 8-25 City of Newport Beach October 25, 2021 Underground Utility Assessment District No. 120-2 (Santa Ana Avenue Cliff Drive, La Jolla Lane, La Jolla Drive & Alley) Preliminary Engineer's Report Paqe 8 Table 1 Assessment Roll Asmnt No. Assessor's Parcel Number Total True Value Existing Liens Assessments as Preliminarily Approved Assessments as Confirmed and Recorded Value to Lien Ratio 1 049-110-01 $ 793,649.00 $ $ 36,821.60 $ 22 2 3 4 425-383-19 425-383-18 425-383-17 $ $ $ 1, 850, 259.00 1,421,072.00 878,351.00 $ $ $ $ $ $ 69, 090.48 66,189.95 66,326.92 $ $ $ 27 21 13 5 425-383-16 $ 1, 746, 727.00 $ $ 65, 625.96 $ 27 6 425-383-15 $ 1,011,217.00 $ $ 67,452.22 $ 15 7 425-383-14 $ 1, 082, 672.00 $ $ 67, 589.19 $ 16 8 9 425-383-13 425-383-12 $ $ 1, 716, 660.00 1,683,000.00 $ $ $ $ 67, 589.19 67,586.51 _ $ $ 25 25 10 425-383-20 $ 1,624,937.00 $ $ 67,589.19 $ 24 11 425-383-21 $ 2,263,970.00 $ $ 67,586.51 $ 33 12 425-383-10 $ 2,300,000.00 $ $ 67,589.19_$ 34 13 ---------------101------------1,32 14 425-383-09 049-101-05 $ $ 706,607.00 ,468.------------------------------------,689. 1,329,468.00 $ $ - $ $ 67,589.19 ------------------------------------------------ 72,689.28 $ $ - 10 18 15 049-101-06 $ 843,908.00 $ $ 73,025.00 $ 12 16 049-101-07 $ 3,282,627.00 $ $ 73,025.00 $ 45 17* 049-101-08 $ 1, 706, 677.75 $ $ 73, 025.00 $ 23 18 19 049-101-09 049-102-04 $ $ 1, 370, 708.00 1,694,041.00 $ $ $ $ 73, 025.00 45,010.23 $ $ 19 38 20 21 049-103-08 049-103-03 $ $ 1, 577, 547.00 1,274,135.00 $ $ $ $ 66, 901.17 65,657.70 $ $ 24 19 22 23 24 049-103-02 049-103-01 425-383-01 $ $ $ 2,245,731.00 3,246,239.00 1,182,280.00 $ $ $ $ $ $ 111,418.95 162,950.01 50,250.00 $ $ $ 20 20 24 25 425-383-02 $ 575,030.00 $ $ 48,235.74 $ 12 26 425-383-03 $ 1, 892, 664.00 $ $ 49,178.41 $ 38 27 425-383-04 $ 1,587,081.00 $ $ 49,178.41 $ 32 28** 29 425-383-05 425-383-06 $ $ 1, 096, 232.00 1,166,731.00 $ $ $ $ 49,178.41 46,490.05 $ $ 22 25 30 425-383-07 $ 1, 025, 733.00 $ $ 49,178.41 $ 21 31 425-383-08 $ 956,033.00 $ $ 49,178.41 $ 19 32 425-382-39 $ 452,535.00 $ $ 27,616.21 $ 16 33 34 425-382-38 425-382-37 $ $ 641,003.00 1,119,772.00 $ $ $ $ 27,616.21 47,564.32 $ $ 23 24 35 425-382-36 $ 546,840.00 $ $ 47,564.32 $ 11 36 425-382-35 $ 695,796.00 $ $ 47,564.32 $ 15 37 425-382-34 $ 680,897.00 $ $ 48,582.19 $ 14 38 --------------------------------------------------------------------------------------------------------------------------------------- 39 425-382-33 425-382-32 $ $ 645,061.00 930,941.00 $ $ $ $ 48,504.30 48,370.02 $ $ 13 19 40 425-382-31 $ 1,672,634.00 $ $ 43,526.56 $ 38 41 425-382-30 $ 993,468.00 $ $ 48,169.44 $ 21 42 425-382-29 $ 1,107,489.00 $ $ 48,169.44 $ 23 43 44 049-101-04 049-101-10 $ $ 1,502,688.00 1,290,132.00 $ $ $ $ 53,550.89 35,980.50_$ $ 28 36 Total $ 59,411,242.75 $ - $ 2,625,000.00 $ - * Parcel has a Total Value of $87,149. It was determined that this Total Value does not accurately represent the True Total Value of the parcel. This is likely due to the last date of sale of the property or the fact that the owner transferred their Proposition 13 base year. Therefore, Total True Value was estimated by taking the average assessed improvement value of Assessment Nos. 14-16 & 18 and adding the average land value of Nos. 14-16 & 18 which are similar in size and location and deemed to be a fair representation of Assessment No. 17. ** Parcel has a Total Value of $113,787. It was determined that this Total Value does not accurately represent the True Total Value of the parcel. This is likely due to the last date of sale of the property or the fact that the owner transferred their Proposition 13 base year. Therefore, Total True Value was estimated by taking the average assessed improvement value of Assessment Nos. 29-30 & adding the average land value of Assessment Nos. 29-30 which are similar in size and location and deemed to be a fair representation of Assessment No. 28. Harris & Associates • City of Newport Beach October 25, 2021 Underground Utility Assessment District No. 120-2 (Santa Ana Avenue Cliff Drive, La Jolla Lane, La Jolla Drive & Alley) Preliminary Engineer's Report Paqe 9 Table 2 Debt Limit Valuation A. ESTIMATED BALANCE TO ASSESSMENT $2,625,000 B. UNPAID SPECIAL ASSESSMENTS $0 TOTAL A & B $2,625,000 C. TRUE VALUE OF PARCELS $59,411,243 ** AVERAGE VALUE TO LIEN RATIO 23:1 * 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 current 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 October 25, 2021. HARRIS & ASSOCIATES ALISON M. BOULEY, P.E. R.C.E. NO. C61383 ASSESSMENT ENGINEER CITY OF NEWPORT BEACH COUNTY OF ORANGE, STATE OF CALIFORNIA Harris & Associates 8-27 City of Newport Beach October 25, 2021 Underground Utility Assessment District No. 120-2 (Santa Ana Avenue Cliff Drive, La Jolla Lane, La Jolla Drive & Alley) Preliminary Engineer's Report Page 10 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. SEPARATION OF GENERAL AND SPECIAL BENEFITS Under Article XIIID, only special benefits may be assessed, and it is the responsibility of the Assessment Engineer to identify, quantify, and exclude general benefits from the assessment that is apportioned to parcels in proportion to the special benefit they will receive from the improvements. As stated in the "Proposition 218 Guide for Special Districts" prepared by the California Special Districts Association, the requirement that a public agency separate the general benefits from the special benefits helps ensure that the special benefit requirement is met. As defined in Article XIIID, "special benefit" means a particular and distinct benefit over and above general benefits conferred on real property located in the district or to the public at large. Harris & Associates City of Newport Beach October 25, 2021 Underground Utility Assessment District No. 120-2 (Santa Ana Avenue Cliff Drive, La Jolla Lane, La Jolla Drive & Alley) Preliminary Engineer's Report Page 11 The benefits associated with the undergrounding of overhead utilities are related to increased reliability, improved neighborhood aesthetics, enhanced safety, and the removal of obstructions to views of Newport Harbor and or the Pacific Ocean. The specific location and nature of the undergrounding project will determine if the benefits are a "general benefit" or provide a "special benefit" to parcels within the Assessment District, or a combination of both. GENERAL BENEFIT In this particular assessment district, the streets along which the existing overhead utility facilities are being undergrounded function as local and collector streets. None of the 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. With the exception of certain properties (Assessment Numbers 1), the properties situated within the Assessment District are used 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 or have a destination outside the boundary. 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 estimated 20 percent (20%) utility company contribution which is accounted for in the Southern California Edison Utility Engineering and Construction unit cost as shown in Part 11. 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 $2,625,000 is apportioned to the parcels within the District, no parcel is assessed more than its proportional share of the special benefits from the improvements. SPECIAL BENEFITS While the courts have found that a general enhancement of property value does not constitute "special benefit" (Silicon Valley Taxpayers' Ass'n v. Santa Clara Cnty. Open Space Authority) if an assessment district is narrowly drawn so that parcels that benefit in a way that is particular and distinct from parcels outside of the district or the public at large, they are deemed to receive a special benefit. Specifically, the undergrounding of existing overhead utilities adjacent to parcels on the streets which provide ingress/egress to each parcel provides a particular and distinct benefit to those parcels that is not realized by other parcels or to the public at large. The courts have found that the characterization of a benefit (special vs. general) may depend on whether parcels within a district receive a direct advantage from the improvement based upon their proximity to the improvement, or receive an "indirect, derivative advantage resulting from the overall public benefits of the improvement" (e.g., general enhancement of the district's property values). Harris & Associates • City of Newport Beach October 25, 2021 Underground Utility Assessment District No. 120-2 (Santa Ana Avenue Cliff Drive, La Jolla Lane, La Jolla Drive & Alley) Preliminary Engineer's Report Page 12 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 overhead wires will provide a special benefit to the parcels connected to, 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 or have frontage facing overhead facilities receive an aesthetic benefit. There is a direct correlation between the size of the parcel and the extent to which a property may develop and thus the Improved Aesthetic Benefit a parcel receives from the undergrounding of adjacent utilities is proportional to the size 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. Access by emergency vehicles can also be blocked by downed power lines. Properties that have a frontage along which the existing overhead utilities will be removed and have existing overhead utilities that will be removed along the properties primary ingress/egress route receive a safety benefit. This benefit is equal for all parcels receiving this benefit because all parcels fronting the existing overhead utilities are equally at risk of being damaged by falling overhead utilities and having their primary ingress/egress route blocked. Therefore the Additional Safety Benefit is based on the average parcel area within the Assessment District boundary. ■ Connection Benefit. This benefit relates to the enhanced reliability of service from the utilities being underground, due to having all new wires and equipment and having that equipment underground, which reduces the threat of service interruption from downed lines. When compared to overhead systems, fewer outages occur due to various acts of nature, traffic collisions and obstructions (such as trees). Properties that are connected to the facilities proposed to be undergrounded receive a connection benefit. This benefit is equal for all parcels receiving this benefit that have a singular connection. As such the benefit is based on the average parcel area within the assessment district boundary. Parcels with more than one separate connection receive an increased benefit calculated by multiplying the number of connections by the average parcel area within the assessment district boundary. ■ View Enhancement Benefit. This benefit relates to the enhanced view as a direct result of the utilities being underground. Properties that receive a view benefit face Newport Harbor and/or the Pacific Ocean and are located along, or have a view down, Santa Ana Avenue, La Jolla Drive or La Jolla Lane. Each parcel that has poles or overhead lines that impede their view of Newport Harbor and/or the Pacific Ocean and that are being undergrounded as part of this district, benefit equally from the undergrounding of the lines. Therefore this benefit is based on the average parcel area within the Assessment District boundary. Harris & Associates I City of Newport Beach October 25, 2021 Underground Utility Assessment District No. 120-2 (Santa Ana Avenue Cliff Drive, La Jolla Lane, La Jolla Drive & Alley) Preliminary Engineer's Report Page 13 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. Harris & Associates 8-31 City of Newport Beach October 25, 2021 Underground Utility Assessment District No. 120-2 (Santa Ana Avenue Cliff Drive, La Jolla Lane, La Jolla Drive & Alley) Preliminary Engineer's Report Page 14 METHODOLOGY Based upon the findings described above, the special benefit received by the properties within the boundaries of the Assessment District is the conversion from an overhead to an underground utility system resulting in additional safety, enhanced reliability, view enhancements 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. The special benefits from the undergrounding of overhead utilities are categorized into the four (4) distinct benefits identified above. All parcels within the District receive a combination of the identified benefits below, a majority of the parcels receive 3 of 4 benefits. Parcels are assigned one (1) Benefit Factor for each of the four respective criterion based on whether or not they receive a special benefit in that criterion with the exception of any adjustments as described in the Parcel Benefit Assignment section below. For the Improved Aesthetics Benefit, each parcel is considered to receive an Aesthetics Benefit Factor of one (1) if the parcel is directly adjacent to or has frontage facing the existing overhead utilities which will be removed and undergrounded as part of this project. The parcels Aesthetics Benefit Factor is multiplied by the parcels area to determine the "Aesthetics Benefit Area". For the "Additional Safety Benefit", each parcel is considered to receive one (1) Safety Benefit Factor if the parcel has a frontage along which the existing overhead utilities will be removed and have existing overhead utilities that will be removed along the properties primary ingress/egress route. The parcels Safety Benefit Factor is multiplied by the average parcel size within the District, 6,855 square feet, to determine the "Safety Benefit Area". Harris & Associates 8-32 City of Newport Beach October 25, 2021 Underground Utility Assessment District No. 120-2 (Santa Ana Avenue Cliff Drive, La Jolla Lane, La Jolla Drive & Alley) Preliminary Engineer's Report Page 15 For the Connection Benefit, each parcel is assigned one (1) Connection Benefit Factor if the parcel will connect to the underground system constructed as a result of this project. The parcels Connection Benefit Factor is multiplied by the average parcel area within the District, 6,855 square feet, to determine "Connection Benefit Area". For the View Enhancement Benefit, each parcel is assigned one (1) View Enhancement Benefit Factor if the parcel has a view of Newport Harbor and or the Pacific Ocean along, or looking down, Santa Ana Avenue La Jolla Drive, or La Jolla Lane that will be enhanced by the removal of the existing overhead utilities as part of this project. The parcels View Enhancement Benefit Factor is multiplied by the average parcel area within the District, 6,855 square feet, to determine "View Enhancement 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 plus the View Enhancement Benefit, divided by 4. See Appendix A for the assessment calculations for each parcel within the District. Parcel Benefit Assignment The following are the specific benefit assignment to parcels within the District as defined in the above methodology. All exceptions to the methodology are described herein. Assessment No. 1. This property is deemed to receive no Improved Aesthetic Benefit or View Enhancement Benefit from the undergrounding project, as the utility lines to be undergrounded are at the rear of the parcel.. The property is considered to receive a full Additional Safety Benefit and Connection Benefit from the undergrounding project. Assessment No. 1 was assigned a reduced Additional Safety Benefit under AD -120 to account for the fact that the parcels primary ingress/egress point was along Coast Highway and would not impede access to the parcel in the event of downed power lines. However upon further analysis, the poles and lines along the east side of the parcel could potentially limit ingress/egress to portions of the parcel and would delay emergency responders who will not cross a downed utility line until it is deenergized.. 2. Assessment Nos. 2-18: These properties are considered to receive full Improved Aesthetics, Additional Safety, Connection Benefit, and View Enhancement Benefits from the undergrounding project. 3. Assessment No. 19: This property is deemed to receive no View Enhancement Benefit from the undergrounding project and receives a reduced Improved Aesthetics Benefit of approximately 50 percent as this parcel will have overhead lines remaining along one of its frontages. The property receives no View Enhancement Benefit as this parcel does not have a view of Newport Harbor or the Pacific Ocean that will be enhanced by the removal of the existing overhead utilities included in the undergrounding project. While this parcel has a pole remaining along its frontage it is deemed to receive a full safety benefit as the remaining overhead utilities are telecommunication lines and are not power transmission lines. This property is considered to receive a full Connection Benefit. Assessment No. 19 was not assigned a Connection under AD -120 as it was believed the electrical meter was at the rear of the parcel. However upon further analysis, the electrical meter is at the front of the parcel and will connect to the undergrounded system. 4. Assessment Nos. 20-22, 24-31, 34-39 and 41-43: These properties are deemed to receive no View Enhancement Benefit from the undergrounding project. The properties receive no View Harris & Associates 8-33 City of Newport Beach October 25, 2021 Underground Utility Assessment District No. 120-2 (Santa Ana Avenue Cliff Drive, La Jolla Lane, La Jolla Drive & Alley) Preliminary Engineer's Report Page 16 Enhancement Benefit as these parcels do not have a view of Newport Bay or the Pacific Ocean that will be enhanced by the removal of the existing overhead utilities included in the undergrounding project. The properties are considered to receive full Improved Aesthetics, Connection Benefit and Additional Safety Benefits from the undergrounding project. Assessment Nos. 21 and 22 were assigned a reduced Improved Aesthetics Benefit under AD -120 due to the potential of a portion of the lot being undevelopable. However upon further analysis, there are no restrictions on these properties in the City's Municipal Code and property owners could elect to construct improvements on the previously reduced area of the parcels and as such, the parcel area reduction has been removed. 5. Assessment No. 23: This property is deemed to receive an increased Connection Benefit from this undergrounding project. This property receives an increased connection benefit of approximately 100 percent as the property has a separate connection for each of the dwelling units on the property. The property is considered to receive full Improved Aesthetics Benefit, Additional Safety and View Enhancement Benefits from the undergrounding project. Assessment No. 23 was assigned a reduced Improved Aesthetics Benefit under AD -120 due to the potential of being a cliffside property. However upon further analysis, there are no restrictions on this property in the City's Municipal Code and property owners could elect to construct improvements on the previously reduced area of the parcels and as such the parcel area reduction has been removed. 6. Assessment No. 32 and 33: These properties are deemed to receive no Improved Aesthetics Benefit and View Enhancement Benefit as these parcels do not have any existing overhead utilities directly adjacent to or along its frontage and does not have a view of Newport Harbor or the Pacific Ocean that will be enhanced by the removal of the existing overhead utilities included in the undergrounding project. In addition to not receiving an Improved Aesthetics Benefit or View Enhancement Benefit, these properties are deemed to receive a 50 percent reduction in Additional Safety Benefits as the properties are not at risk of being damaged by falling overhead utilities but benefit from the removal of obstructions to emergency responders along the primary ingress and egress point. The properties are considered to receive full Connection Benefits from the undergrounding project. 7. Assessment No. 40: This property is deemed to receive no View Enhancement Benefit and a reduced Additional Safety Benefit from this undergrounding project. This property receives a 50 percent reduction in Additional Safety Benefit as the property is not at risk of being damaged by falling overhead utilities but benefits from the removal of obstructions to emergency responders along the primary ingress and egress point. The property receives no View Enhancement Benefit as the parcel do not have a view of Newport Harbor or the Pacific Ocean that will be enhanced by the removal of the existing overhead utilities included in the undergrounding project. The property is considered to receive full Improved Aesthetics Benefit and Connection Benefit from the undergrounding project. 8. Assessment No. 44: This property is deemed to receive no View Enhancement Benefit from the undergrounding project and receive a reduced Improved Aesthetics Benefit and Additional Safety Benefit of approximately 50 percent as these this parcels will have overhead lines remaining along one of their it's frontages. The properties property receives no View Enhancement Benefit as these this parcels does not have a view of Newport Harbor or the Pacific Ocean that will be enhanced by the removal of the existing overhead utilities included in the undergrounding project. The Harris & Associates Rmi City of Newport Beach October 25, 2021 Underground Utility Assessment District No. 120-2 (Santa Ana Avenue Cliff Drive, La Jolla Lane, La Jolla Drive & Alley) Preliminary Engineer's Report Page 17 properties property are is considered to receive a full Connection Benefit from the undergrounding project. ASSESSMENT APPORTIONMENT Each parcel will be apportioned its fair share of the construction costs based on the Assessed Benefit Area calculated for each property. Incidental Expenses and Financial Costs have been assessed to the entire Assessment District on a prorata basis relative to the total construction cost allocations. Harris & Associates 8-35 City of Newport Beach October 25, 2021 Underground Utility Assessment District No. 120-2 (Santa Ana Avenue Cliff Drive, La Jolla Lane, La Jolla Drive & Alley) Preliminary Engineer's Report Page 18 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: October 25, 2021 HARRIS & ASSOCIATES OFESS1� Lt s -Y �N M. 6 o 0&ALISON M. BOULE , P.E. m R.C.E. No. C61383 NO. C61383 � ASSESSMENT ENGINEER * * CITY OF NEWPORT BEACH s� C1y11- �`� COUNTY OF ORANGE, STATE OF CALIFORNIA OF Harris & Associates City of Newport Beach October 25, 2021 Underground Utility Assessment District No. 120-2 (Santa Ana Avenue Cliff Drive, La Jolla Lane, La Jolla Drive & Alley) Preliminary Engineer's Report Page 19 I, , as CITY CLERK of the CITY OF NEWPORT BEACH, CALIFORNIA do hereby certify that the foregoing Assessment, together with the Diagram attached thereto, was filed in my office on the day of , 20. CITY CLERK CITY OF NEWPORT BEACH STATE OF CALIFORNIA I, , as CITY CLERK of the CITY OF NEWPORT BEACH, CALIFORNIA do hereby certify that the foregoing Assessment, together with the Diagram attached thereto, was preliminarily approved by the City Council of the CITY OF NEWPORT BEACH, CALIFORNIA, on the day of , 20_. CITY CLERK CITY OF NEWPORT BEACH STATE OF CALIFORNIA I, , as CITY CLERK of the CITY OF NEWPORT BEACH, CALIFORNIA do hereby certify that the foregoing Assessment, together with the Diagram attached thereto, was approved and confirmed by the City Council of said City on the day of , 20 CITY CLERK CITY OF NEWPORT BEACH STATE OF CALIFORNIA I, , as SUPERINTENDENT OF STREETS of the CITY OF NEWPORT BEACH, CALIFORNIA do hereby certify that the foregoing Assessment, together with the Diagram attached thereto, was recorded in my office on the day of , 2021. SUPERINTENDENT OF STREETS CITY OF NEWPORT BEACH STATE OF CALIFORNIA Harris & Associates 8-37 City of Newport Beach October 25, 2021 Underground Utility Assessment District No. 120-2 (Santa Ana Avenue Cliff Drive, La Jolla Lane, La Jolla Drive & Alley) Preliminary Engineer's Report Page 20 Part IV Annual Administrative Assessment An amount shall be added to each annual installment of the unpaid assessments to pay costs incurred by the City and not otherwise reimbursed, which result from the administration of the bonds and reserve or other related funds, all as set forth in Section 10312 of the Act. The maximum annual administrative assessment is authorized pursuant to the provisions of Section 10204(f) of the Streets and Highways Code and shall not exceed two -hundred and fifty dollars ($250.00) 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. It should be expressly understood that the annual administrative assessment, as set forth above, is separate from and is in addition to the $16.00 per parcel collection fee which will be added to each annual installment pursuant to Section 8682 of the California Streets and Highways Code, and is further separate from and in addition to specific fees payable to the City in connection with (a) prepayments of assessments by property owners, (b) apportionments of assessments to reflect divisions of parcels and (c) late charges and penalties which become payable in the event of delinquency in the payment of assessment installments by December 10 and April 10 each year. The above fees and assessments (except those for prepayments and apportionments) 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. Properties that have paid their assessments in full will not be subject to this annual administrative assessment. Harris & Associates City of Newport Beach October 25, 2021 Underground Utility Assessment District No. 120-2 (Santa Ana Avenue Cliff Drive, La Jolla Lane, La Jolla Drive & Alley) Preliminary Engineer's Report Page 21 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 1. The Assessor's Parcel Number is also shown for each parcel as they existed at the time of the passage of the Resolution of Intention and reference is hereby made to the Assessor's Parcel Maps of the County of Orange for the boundaries and dimensions of each parcel of land. Harris & Associates • LA Ln N O Iv ETH ro GO 0 0 ASSESSMENT NUMBER ASSESSOR'S PARGELNUMBER 1 048.11001 2 425-383-19 3 425-383-18 4425-383-17 WI RES TO BE REMOVED WIRES TO REMAIN 5 425-383-16 6 425$03-15 7 425-383-14 8 425383-13 9 425-333-12 10 425383-20 11 425-383-21 12 4255,383-iC 13 425-383-09 14 049.101-05 15 049-101-06 16 049-101-07 17 049101-08 18 049101-09 19 049-102-04 20 049.103-08 21 049-103-03 22 049103,02 23 04&103-01 24 425383-01 25 425-383-02 2e 425-383-03 27 425-383-04 26 425-383-05 29 425-383-06 30 425383-D7 31 425-383-08 32 425-382-39 33 425-382-3H 34 425-382-37 35 425382.36 38 425382-35 37 425-382-34 36 425-382-33 39 425x82-32 40 425-38231 41 425-382-3C 42 425-62-29 43 049-101-04 44 049-101-10 ASSESSMENT DIAGRAM FOR ASSESSMENT DISTRICT NO. 120-2 (SANTA ANA AVENUE, CLIFF DRIVE, LA JOLLA LANE, LA JOLLA DRIVE & ALLEY) CITY OF NEWPORT BEACH, COUNTY OF ORANGE STATE OF CALIFORNIA Assessors Map Book 425J IA /.-._ IP2 \ "044A LAV Assessors Map Book 049 THE BOUNUARY OF THE PRCPCSEU ASSESSMENT DISTRICT COINCIDES W HH THE ASSESSOR'S PARCEL—THIN THE BOUNDARY SHOWN ON THIS MAD FIT LINES AND DIMENSIONS OF ASSEDSGN'S PARCELS, REFERENCE IS MADE TG THE MAPS OF THE ORANGE COUNry ASSESSDR,SPECIFICALLY SO OK 49 PAGES 03. 04. D5. OS. AND 22. AND BOOK 425 PAGE 47. SANTA ANA AVENUE ACCEPTED AND FILED AT THE REQUEST Or CITY OF NEWPORT BEACH GATE H.E FEES INSTRUMEFR A BOOK PAGE OF THE ASSESSMENT AHO COMMUNm FACILITIER DISTRICTS IN THE OFFICE OF THE RECORDER OF THE COUNTY OF ORANGE, STATE OF CALIFORNIA. HUGH NGUYEN .C.—CLERK RECORDER EXEMPT RECORDING PER G.C.— RECORDED IN THE OFFICE OFTHE SUPERINTENDENT OF STREETS. CITY OF NEWPORT BEACH THIS _ CRY OF 20 SUPERINTENDENTOF STREETS AN ASSESSMENT WAS LEVIED BY THE CITY COUNCIL ON THE LOTS, PIECES AND PARCELS OF LAND SHOWN ON THIS ASSESSMENT DIAGRAM. — ASSFSSMENT H'A5 LEVIFD ON THE DAY OF 2S-,,, REFERENCE IS MADE TO THE ASSESSMENT ROLL RECORDED IN THE OFFICE OF THE SUPERINTENDENT OF STREETS FOR THE ENACT AMOUNT OF EACH ASSESSMENT LEVIED AGAINST THE PARCELS SHOWN ON THIS ASSESSMENT DIAGRAM, CITYCLERK FILED 1N £HE OFFICE OF THE CRY CLERK OF THE CITY OF NEWPORT BEACH TH IS DAY OF 20- — OERK LEGEND — - - — ASSESSOR'S MAP BOOR LINE ASSESSOR'S PARCEL LINE ASSESSMENT DISTRICT BOUNDARY WI RES TO BE REMOVED WIRES TO REMAIN POLETO BE REMOVE. Q POLE TO REMAIN GUY POLE TO BE ADDED -1! ASSESSOR'S PARCEL NUMBER -15, ASSESSOR'S PAGE SECTION 117 ASSESSMENTNUMBER GRAPHIC SCALE 0 Kw& B As odabbs- 22 LxecuIII Park, sidle 20D Irvine. WHOM!, 92614 I 500-52]--3901 .I DATE 10J 18121 9H FET 1 OF 1 N C=0 7 Q- E > a c� f pOi 0 CD nDsza f (D C f i C rt W 1 lD CD C7D0 coCA =17 'vy IL lD lD r N c- 0 in r N Z 5D O r N O O c- 0 N CID 90 D CID u�u City of Newport Beach October 25, 2021 Underground Utility Assessment District No. 120-2 (Santa Ana Avenue Cliff Drive, La Jolla Lane, La Jolla Drive & Alley) Preliminary Engineer's Report Page 23 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 reference 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. 120-2. 1. Acquisition of any required easements or rights-of-way. 2. Removal of existing utility poles. 3. Removal of overhead 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 Spectrum. 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 Spectrum. Each owner of property located within the Assessment District will be responsible for arranging for and paying for work on his or her property necessary to connect facilities constructed by the public utilities in the public streets and alleys to the points of connection on the private property. Conversion of individual service connections on private property is not included in the work done by the Assessment District. The estimated time for completion of the undergrounding of the utilities is 36 months after the sale of bonds. Property owners will be required to provide necessary underground connections within 120 days of the completion of the underground facilities. Failure to convert individual service connections on private property may result in a recommendation to the City Council that the public utilities be directed to discontinue service to that property pursuant to Section 15.32 of the Municipal Code. Overhead facilities cannot be removed until all overhead service has been discontinued. Harris & Associates W in City of Newport Beach October 25, 2021 Underground Utility Assessment District No. 120-2 (Santa Ana Avenue Cliff Drive, La Jolla Lane, La Jolla Drive & Alley) Preliminary Engineer's Report Paqe 24 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. 120-2 (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 , 2021, at CITY OF NEWPORT BEACH, CALIFORNIA. SUPERINTENDENT OF STREETS CITY OF NEWPORT BEACH STATE OF CALIFORNIA DAVID WEBB, PE Harris & Associates City of Newport Beach October 25, 2021 Underground Utility Assessment District No. 120-2 (Santa Ana Avenue Cliff Drive, La Jolla Lane, La Jolla Drive & Alley) Preliminary Engineer's Report Paqe 25 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: 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. 120-2 (hereinafter referred to as the "Assessment District"). 2. The specific environmental proceedings relating to this Assessment District that have been completed are as follows: CEQA compliance review: The proposed project is Categorically Exempt (Class 2) from the provisions of CEQA (replacement or reconstructions). 3. I do hereby certify that all environmental evaluation proceedings necessary for the formation of the Assessment District have been completed to my satisfaction, and that no further environmental proceedings are necessary. EXECUTED this day of , 2021, at CITY OF NEWPORT BEACH, CALIFORNIA. DAVID WEBB, P.E. CITY OF NEWPORT BEACH STATE OF CALIFORNIA Harris & Associates City of Newport Beach October 25, 2021 Underground Utility Assessment District No. 120-2 (Santa Ana Avenue Cliff Drive, La Jolla Lane, La Jolla Drive & Alley Preliminary Engineer's Report Appendix A - Page 1 Appendix A - Assessment Calculations Assessor's Adjusted Aesthetics Aesthetics Safety Safety Connectio Connection View View Assessed Total Asmnt Parcel Parcel Parcel Benefit Benefit Benefit Benefit n Benefit Benefit Benefit Benefit Benefit Construction Incidental Total Address No. Number Size (SF) Size (SF) Factor Area Factor Area Factor Area Factor Area Area Costs Expenses Financial Costs Assessment 3334 W COAST HWY 201 SANTA ANA AVE 1 2 049-110-01 425-383-19 31,154 5,160 31,154 5,160 1 5,160 1 1 6,855 6,855 1 1 6,855 6,855 1 6,855 3,428 $ 6,431 $ 30,213.35 56,691.04 $ 4,307.78 $ $ 8,082.93 $ 2,300.47 4,316.51 $ 36,821.60 $ 69,090.48 209 SANTA ANA AVE 3 425-383-18 4,080 4,080 1 4,080 1 6,855 1 6,855 1 6,855 6,161 $ 54,311.06 $ 7,743.59 $ 4,135.30 $ 66,189.95 215 SANTA ANA AVE 217 SANTA ANA AVE 4 5 425-383-17 425-383-16 4,131 3,870 4,131 3,870 1 1 4,131 3,870 1 1 6,855 6,855 1 1 6,855 1 6,855 1 6,855 6,855 6,174 $ 6,109 $ 54,423.45 53,848.29 $ 7,759.62 $ $ 7,677.61 $ 4,143.85 4,100.06 $ 66,326.92 $ 65,625.96 221 SANTA ANA AVE 6 425-383-15 4,550 4,550 1 4,550 1 6,855 1 6,855 1 6,855 6,279 $ 55,346.79 $ 7,891.27 $ 4,214.16 $ 67,452.22 225 SANTA ANA AVE 7 425-383-14 4,601 4,601 1 4,601 1 6,855 1 6,855 1 6,855 6,292 $ 55,459.18 $ 7,907.29 $ 4,222.72 $ 67,589.19 231 SANTA ANA AVE 8 425-383-13 4,601 4,601 1 4,601 1 6,855 1 6,855 1 6,855 6,292 $ 55,459.18 $ 7,907.29 $ 4,222.72 $ 67,589.19 233 SANTA ANA AVE 237 SANTA ANA AVE 9 10 425-383-12 425-383-20 4,600 4,601 4,600 4,601 1 1 4,600 4,601 1 1 6,855 6,855 1 1 6,855 1 6,855 1 6,855 6,855 6,291 $ 6,292 $ 55,456.98 55,459.18 $ 7,906.98 $ $ 7,907.29 $ 4,222.55 4,222.72 $ 67,586.51 $ 67,589.19 3001 CLIFF DR 11 425-383-21 4,600 4,600 1 4,600 1 6,855 1 6,855 1 6,855 6,291 $ 55,456.98 $ 7,906.98 $ 4,222.55 $ 67,586.51 3011 CLIFF DR 12 425-383-10 4,601 4,601 1 4,601 1 6,855 1 6,855 1 6,855 6,292 $ 55,459.18 $ 7,907.29 $ 4,222.72 $ 67,589.19 3015 CLIFF DR 13 425-383-09 4,601 4,601 1 4,601 1 6,855 1 6,855 1 6,855 6,292 $ 55,459.18 $ 7,907.29 $ 4,222.72 $ 67,589.19 3016 CLIFF DR 14 049101-05 6,500 6,500 1 6,500 1 6,855 1 6,855 1 6,855 6,766 $ 59,643.98 $ 8,503.95 $ 4,541.35 $ 72,689.28 3012 CLIFF DR 15 049101-06 6,625 6,625 1 6,625 1 6,855 1 6,855 1 6,855 6,798 $ 59,919.45 $ 8,543.23 $ 4,562.32 $ 73,025.00 3008 CLIFF DR 16 049-101-07 6,625 6,625 1 6,625 1 6,855 1 6,855 1 6,855 6,798 $ 59,919.45 $ 8,543.23 $ 4,562.32 $ 73,025.00 3004 CLIFF DR 17 049-101-08 6,625 6,625 1 6,625 1 6,855 1 6,855 1 6,855 6,798 $ 59,919.45 $ 8,543.23 $ 4,562.32 $ 73,025.00 3000 CLIFF DR 18 049-101-09 6,625 6,625 1 6,625 1 6,855 1 6,855 1 6,855 6,798 $ 59,919.45 $ 8,543.23 $ 4,562.32 $ 73,025.00 ---------------- CLIFF DR 2949 CLIFF DR 19 20 049-102-04 049-103-08 --------- 6,098 11,200 6,098 11,200 0.5 1 ------- 3,049 11,200 1 1 6,855 -- ------------------------ 6,855 1 1 6,855 ------ 6,855 ------ - 4,190 $ 6,228 $ ------- 36,932.39 ---------------------- 54,894.64 $ 5,265.77 $ $ 7,826.80 $ ---- 2,812.07 4,179.73 ----- $ 45,010.23 $ 66,901.17 2953 CLIFF DR 21 049-103-03 10,737 10,737 1 10,737 1 6,855 1 6,855 6,112 $ 53,874.33 $ 7,681.33 $ 4,102.04 $ 65,657.70 2957 CLIFF DR 22 049-103-02 27,776 27,776 1 27,776 1 6,855 1 6,855 10,372 $ 91,422.96 $ 13,034.96 $ 6,961.03 $ 111,418.95 2961 CLIFF DR 23 049-103-01 33,253 33,253 1 33,253 1 6,855 2 13,710 1 6,855 15,168 $ 133,705.90 $ 19,063.60 $ 10,180.51 $ 162,950.01 ---------------------------- 202 LA JOLLA LN 206 LAJOLLADR-----------25 24 425-383-01 425-383-02-----4,250-----4,250------1-----------4,250-------1----------6,855-------1-------------6,855 5,000 5,000 1 5,000 1 6,855 1 6,855 --------------------------4,490--$----39,579.02 4,678 $ 41,231.78 $ 5,878.77 $ $ ----5,643.12-$--------3,013.60_$ ------------------- 3,139.45 $ 50,250.00 48,235.74 210 LA JOLLA DR 26 425-383-03 4,601 4,601 1 4,601 1 6,855 1 6,855 4,578 $ 40,352.51 $ 5,753.40 $ 3,072.50--$ 49,178.41 214 LA JOLLA DR 27 425-383-04 4,601 4,601 1 4,601 1 6,855 1 6,855 4,578 $ 40,352.51 $ 5,753.40 $ 3,072.50 $ 49,178.41 218 LA JOLLA DR 28 425-383-05 4,601 4,601 1 4,601 1 6,855 1 6,855 4,578 $ 40,352.51 $ 5,753.40 $ 3,072.50 $ 49,178.41 ------ 222 LA JOLLA DR '---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 226 LA JOLLA DR 29 30 425-383-06 425-383-07 3,600 4,601 3,600 4,601 1 1 - 3,600 4,601_4,578 1 6,855 1 6,855 4,328 $ ------- 38,146.62 40,352.51 $ 5,438.89 $ $_ 5,753.40 $ -------- 2,904.54 3,072.50 $ 46,490.05 $ 49,178.41_ 230 LA JOLLA DR 31 425-383-08 4,601 4,601 1 4,601 1 6,855 1 6,855 - - __$ 4,578 $ 40,352.51 $ 5,753.40 $ 3,072.50 $ 49,178.41 225 LA JOLLA DR 32 425-382-39 2,953 2,953 0.5 3,428 1 6,855 2,571 $ 22,660.01 $ 3,230.83 $ 1,725.37 $ 27,616.21 229 LA JOLLA DR 33 425-382-38 3,744 3,744 0.5 3,428 1 6,855 2,571 $ 22,660.01 $ 3,230.83 $ 1,725.37 $ 27,616.21 233 LA JOLLA DR '-------------------------------------------------------------------------------------------------------------------------------------------------------------------_---------------_------------------------------------------------------------------------------------------------ 237 LA JOLLA DR 34 35 425-382-37 425-382-36 4,000 4,000 4,000 4,000 1 1 4,000 4,000 1 1 6,855 6,855 1 1 6,855 6,855 4,428 $ 4,428 $ 39,028.09 39,028.09 $ 5,564.57 $ $ 5,564.57 $ 2,971.66 2,971.66 $ 47,564.32 $ 47,564.32 241 LA JOLLA DR 36 425-382-35 4,000 4,000 1 4,000 1 6,855 1 6,855 4,428 $ 39,028.09 $ 5,564.57 $ 2,971.66 $ 47,564.32 245 LA JOLLA DR 37 425-382-34 4,379 4,379 1 4,379 1 6,855 1 6,855 4,522 $ 39,863.29 $ 5,683.65 $ 3,035.25 $ 48,582.19 249 LA JOLLA DR 38 425-382-33 4,350 4,350 1 4,350 1 6,855 1 6,855 4,515 $ 39,799.38 $ 5,674.54 $ 3,030.38 $ 48,504.30 301 LA JOLLA DR ---------------------------------------------------------------------- 303 LA JOLLA DR 39 40 425-382-32 425-382-31 4,300 5,924 4,300 5,924 1 1 4,300 ---------------------------------------------------------- 5,924 1 0.5 6,855 3,428 1 1 6,855 _--- 6,855 _ 4,503 $ 4,052 $ 39,689.20 35,715.00 $ 5,658.83 $ $ 5,092.19 $ 3,021.99 2,719.37 $ 48,370.02 ----------------- $ 43,526.56 305 LA JOLLA DR 41 425-382-30 4,225 4,225 1 4,225 1 6,855 1 6,855 4,484 $ 39,524.63 $ 5,635.37 $ 3,009.44 $ 48,169.44 309/313 LA JOLLA DR 42 425-382-29 4,225 4,225 1 4,225 1 6,855 1 6,855 4,484 $ 39,524.63 $ 5,635.37 $ 3,009.44 $ 48,169.44 308 LA JOLLA DR 43 049-101-04 6,229 6,229 1 6,229 1 6,855 1 6,855 4,985 $ 43,940.29 $ 6,264.94 $ 3,345.66 $ 53,550.89 311 SANTA ANA AVE 44 049-101-10 6.229 6.229 0.5 3.115 0.5 3.428 1 6.855 - - 3.349 $ 29.523.48 $ 4.209.42 $ 2.247.60 $ 35.980.50 Harris & Associates CITY OF NEWPORT BEACH 100 Civic Center Dr - P.O. Box 1768 Newport Beach, CA 92658-8915 (949)644-3311 NOTICE OF EXEMPTION To: Office of Planning and Research 1400 Tenth Street, Room 121 Sacramento, CA 95814 Orange County Clerk -Recorder ❑X Public Services Division P.O. Box 238 Santa Ana, CA 92701 ATTACHMENT C From: City of Newport Beach Public Works Department 100 Civic Center Drive, Bay 2D Newport Beach, CA 92660 (Orange County) Date received for filing at OPR: Name of Project: Underground Utility Assessment District No. 120-2 (Santa Ana Avenue and Cliff Drive Area) Project Location: Santa Ana Avenue and Cliff Drive Area Specific: Area along western Santa Ana Avenue, western La Jolla Drive and northern Cliff Drive Project Location -City: Newport Beach Project Location -County: Orange Project Description: The project consists of undergrounding existing overhead utilities. Exempt Status: (check one) ❑ Ministerial (Sec. 21080(b)(1);15268); ❑ Declared Emergency (Sec. 21080(b)(3); 15269(a); ❑ Emergency Project (Sec. 21080(b)(4); 15269(b)(c); ❑ Categorical Exemption. State type and section number. -15302, Class 2: Replacement & Reconstruction ✓ Statutory Exemptions. State code number: 15302(d) — Undergrounding Utilities ❑ General Rule (Sec. 15061(b)(3)) Reasons why project is exempt: The Secretary for Resources has found that conversion of overhead electric utility distribution system facilities to underground locations where the surface is restored to the condition prior to undergrounding does not have a significant effect on the environment. Name of Public Agency Approving Project: City of Newport Beach Date of Approval: 10/12/2021 Name of Person or Agency Carrying Out Project: City of Newport Beach — Public Works Dept. Contact Person: Michael J. Sinacori Title: Assistant City Engineer Signature: T0� �'� Tel.No. 949.644.3342 Date: 10/13/2021 f:\users\pbw\shared\contracts\masters\contract set up\notice of exemption.doc 8-45