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HomeMy WebLinkAbout08 - Assessment District 79 - Beacon BayMay 23, 2000 CITY COUNCIL AGENDA ITEM NO. 8 TO: Mayor and Members of The City Council FROM: Public Works Department SUBJECT: UNDERGROUNDING UTILITIES AND RECONSTRUCT STREET IMPROVEMENTS IN PROPOSED ASSESSMENT DISTRICT NO. 79 (Beacon Bay) RECOMMENDATIONS: Consider adoption of the following resolutions for Proposed Assessment District No. 79: Adopt RESOLUTION No._ MAKING FINDINGS ON A PETITION FOR, ADOPTING A MAP SHOWING THE PROPOSED BOUNDARIES OF, AND MAKING APPOINTMENTS FOR ASSESSMENT DISTRICT NO. 79. Adopt RESOLUTION No. DECLARING INTENTION TO ORDER THE ACQUISITION OF CERTAIN IMPROVEMENTS IN PROPOSED ASSESSMENT DISTRICT NO. 79, DECLARING THE IMPROVEMENTS TO BE OF SPECIAL BENEFIT, DESCRIBING THE DISTRICT TO BE ASSESSED TO PAY THE COSTS AND EXPENSES THEREOF, ANND PROVIDING FOR THE ISSUANCE OF BONDS. 3. Adopt RESOLUTION No. GIVING PRELIMINARY APPROVAL TO THE REPORT OF THE ASSESSMENT ENGINEER, SETTING A TIME AND PLACE FOR A PUBLIC HEARING AND ORDERING THE INTENTION OF ASSESSMENT BALLOT PROCEDURE FOR ASSESSMENT DISTICT NO. 79, as July 11, 2000. 4. Approve the special Counsel agreement with the firm of Brown, Diven, Hessell & Brewer LLP. HISTORY: Owners of property located in the Proposed Assessment District No. 79 have submitted petitions to the City requesting that a special assessment district be formed to underground the overhead utilities and reconstruct the street improvements within the Beacon Bay development. On December 8, 1997, in response to the petitions submitted by the owners representing approximately 68% of the assessable property area within Proposed Assessment District No. 79 the City Council appropriated $97,000 to facilitate the undergrounding of utilities. SUBJECT: UNDERGROUNDING UTILITIES AND RECONSTRUCT STREET IMPROVEMENTS IN PROPOSED ASSESSMENT DISTRICT NO. 79 (Beacon Bay) May 23, 2000 Page 3 $15,500 was expended to prepare engineering plans and submit guaranteed prices to the underground utilities. $81,500 is being expended by the assessment engineer for preparation of engineer's report. DISCUSSION: Proposed Assessment District No. 79 is being formed for the conversion of existing overhead, electrical, and communication facilities, to the underground locations and for the reconstruction of street and drainage improvements that serve and benefit properties within its boundary. The land within the Beacon Bay community is owned by the City, but it is leased to occupants of each parcel. The leasehold interests within the boundary of the proposed assessment district will bear the cost of the improvements and all associated proceedings. The procedure being recommended is outlined in the Municipal Improvement Act of 1913. Bonds under the Municipal Improvement Bond Act of 1915, with a term of 15 years, will be issued to represent assessments that are not paid in cash within 30 days after confirmation of the assessment. The total for Proposed Assessment District No. 79 is estimated as follows: ITEM Estimated Cost of Construction: Estimated Incidental Costs and Expenses: Estimated Financing (Bond) Costs: Estimated Total Cost: ESTIMATED COST $1,078,182 323,636 250.573 $1,652,391 The estimate does not include the Federal Income Tax Component of Contribution (ITCC Tax), which is a betterment tax, because underground utility districts are undertaken at the request of the community for purposes of community aesthetics and public safety, not for the benefit of a particular customer of the utility in their capacity as customer of the utility. This underground district is not required as a condition for obtaining any electrical service. If the Internal Revenue Service (IRS), state, city and /or local government taxing authority determines that this project is taxable, Southern California Edison will request the City of Newport Beach to reimburse Edison for the full amount of the tax liability determined by the IRS, state, city and /or local government authority, plus interest, penalties, fees, and related costs. Such amounts will be paid to Edison within 60 days after notification of such event by Edison to City of Newport Beach. The ITCC tax associated with this district is approximately $153,000.00, which the City would be liable for plus penalties if the IRS ever determined that the district was not exempt from the tax. SUBJECT: UNDERGROUNDING UTILITIES AND RECONSTRUCT STREET IMPROVEMENTS IN PROPOSED ASSESSMENT DISTRICT NO. 79 (Beacon Bay) May 23, 2000 Page 3 The Assistant City Attorney reviewed Edison's request to have the above statement included in the assessment district report, and feels for the above reasons, it is unlikely that the City will incur any tax liability. In addition to their assessment, each property owner will be responsible for converting their service connection to receive underground service. The Bond Reserve will be 5% for the subject districts. Property owners who pay assessments in cash will receive a discount, which represents the cost of issuing and servicing bonds. The City will be dedicating easements for public utility purposes with the approval of this assessment district as only an overhead utility easement exists at the present time. The following is a tentative schedule for Proposed Assessment District No. 79: ACTION D A T E OF ACTION 1. Resolution of Intention May 23, 2000 2. Property Owner Information Meeting June 15, 2000 3. Public Hearing July 11, 2000 4. Public Utilities commence work September 18, 2000 5. City notifies property owners to January 2001 install service connections 6. Public Utilities completes January 2001 construction and begins cabling 7. Property owners complete conversions April 2001 8. Public utilities begin to remove May 2001 overhead structures 9. Public Utilities finish removing June 2001 poles and overhead structures The Assessment Engineer has determined that there are 69 parcels within the Beacon Bay development that benefit equally by the district and they should have equal assessments. The estimated assessment for each parcel is $23,947.69. SUBJECT: UNDERGROUNDING UTILITIES AND RECONSTRUCT STREET IMPROVEMENTS IN PROPOSED ASSESSMENT DISTRICT NO. 79 (Beacon Bay) May 23, 2000 Page 3 The underground utility plans and specifications were prepared by the public utility companies. The street reconstruction plans were prepared by Willdan Associates. All improvements are to be constructed by the assessment district. Attached are Exhibits "A" and 'B" showing the boundary of the proposed district, the utilities to be undergrounded, and the street improvements to be reconstructed. A Special Counsel Agreement is necessary in order to retain Special Counsel to provide legal services in connection with processing the assessment proceedings and bond issuance. The Special Counsel Agreement will retain the firm of Brown, Diven, Hessell & Brewer LLP to provide these legal services. The fee is approximately, $25,000, in accordance with the terms of the agreement. The fee will be paid through the assessment district. Respectfully submitted, a '& Don Webb Public Works Director By: Richard IL. Hoffstadt, P.E. Development Engineer Attachments: 1. Exhibit Showing District Boundaries 2. Resolution Making Findings On Petition Adopting Proposed Boundary Map And Making Appointments 3. Resolution Of Intention 4. Resolution Passing On Report Of Assessment Engineer, Setting Public Hearing And Ordering Initiation Of Assessment Ballot Procedures 5. Engineer's Report 6. Special Counsel Agreement FlUaem7BVASharedl COUNCIL %Fy99-00Vday.231Beamn Bay No. 79.do 1•••Ci f IN r0'•' ••i •c ��•�t • � ❖•1 �:�•ttt: ill- ������.�Yi :i ���1 ~��.,,iv ^�,i('�� R�Cl Ott: I•JI Jl��•.I 4d�0� + 6'`. i- �• �. �- •- �.�i1 ^Cw� °..s.�Qtw.61s• =0.1 Jtt'•, J ❖� 1 .Q' II1�11 ® Q l) O Z O OA G z m N Z O G Z rA m N r W O Z W W LU n m J 0 d 2 W oC �- V_ J LU ce N F- •n C � cc N Z G ce O 3 W Z Q V T O 0 N J O 2 O 0 N l 1 0 • I 1 I Q RESOLUTION NO. RESOLUTION MAKING FINDING ON A PETITION FOR, ADOPTING A MAP SHOWING THE PROPOSED BOUNDARIES OF, AND MAKING APPOINTMENTS FOR ASSESSMENT DISTRICT NO. 79 WHEREAS, this legislative body has been presented by certain property owners an executed petition (the "Petition ") requesting the formation of a special assessment district to be designated as ASSESSMENT DISTRICT NO. 79 (BEACON BAY) (the "Assessment District') to provide for street improvements including resurfacing, curbs, gutters, and storm drains and for the conversion of certain overhead electrical and communication facilities to underground locations as described in the Petition, together with appurtenances and appurtenant work in connection therewith, pursuant to the terms and provisions of the "Municipal Improvement Act of 1913 ", being Division 12 of the Streets and Highways Code of the State of California (the "Act'); WHEREAS, the Development Engineer of the City of Newport Beach has certified to this legislative body as follows: a. the Petition has been signed by owners owning more than sixty percent (60 %) in area of all assessable property within the boundaries of the proposed Assessment District, and b. the Petition is signed by not less than five (5) owners owning lands constituting more than one -half (1/2) in area of all assessable property within the boundaries of the proposed Assessment District. WHEREAS, this legislative body has been presented and has received a map (the "Map ") showing and describing the boundary of the area proposed to be assessed in the Assessment District. NOW, THEREFORE, BE IT Determined, Resolved, and Ordered as follows: SECTION 1. The above recitals are all true and correct. SECTION 2. The Petition shall be retained as a permanent record and remain open to public inspection. SECTION 3. The Map is hereby approved and adopted. The original map of the boundaries of the proposed Assessment District and one copy thereof is to be filed in the Office of the City Clerk. SECTION 4. A certificate shall be endorsed on the original Map and on at least one copy of the Map evidencing the date and adoption of this Resolution, and within fifteen (15) days after the adoption of the Resolution fixing the time and place of hearing on the formation or extent of the Assessment District, a copy of the Map shall be filed with the correct and proper endorsements thereon with the County Recorder, all in the manner and form provided in Section 3111 of the Streets and Highways Code of the State of California. SECTION 5. The Development Engineer of the City of Newport Beach is hereby appointed to perform all of the duties and functions of the Superintendent of Streets for the Assessment District as said duties are specified and designated in the Act. The place for recordation of the assessment roll and diagram shall be in the office of the appointed Superintendent of Streets, and said assessment roll and diagram, upon recordation, shall be kept as a permanent record. SECTION 6. The Daily Pilot is hereby designated as the newspaper for all publications as required by law and as necessary for the Assessment District proceedings. SECTION 7. The firm of Willdan Associates is hereby appointed the Assessment Engineer for the Assessment District proceedings. SECTION & The law firm of Brown Diven & Hessell LLP is hereby appointed to act as Bond Counsel for the Assessment District. SECTION 9. This legislative body hereby authorizes the establishment of a special improvement fund for the Assessment District and into the improvement fund shall be placed all proceeds from the sale of Assessment District bonds and cash collections. In order to expedite the improvements to be made under the Assessment District proceedings and as authorized by law, funds from any available source may be transferred into the special improvement fund. Any funds transferred into the special improvement fund (other than proceeds from the sale of Assessment District bonds and cash collections) shall be deemed a loan to the fund and shall be repaid out of the proceeds of the sale of Assessment District bonds as authorized by Section 10210 of the Streets and Highways Code of the State of California. PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Newport Beach, held on the 23rd day of May, 2000, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: City Clerk 2 Mayor RESOLUTION NO. RESOLUTION DECLARING INTENTION TO ORDER THE ACQUISITION OF CERTAIN IMPROVEMENTS IN PROPOSED ASSESSMENT DISTRICT NO. 79, DECLARING THE IMPROVEMENTS TO BE OF SPECIAL BENEFIT, DESCRIBING THE DISTRICT TO BE ASSESSED TO PAY THE COSTS AND EXPENSES THEREOF, AND PROVIDING FOR THE ISSUANCE OF BONDS WHEREAS, this legislative body has instituted proceedings for the formation of a special assessment district designated as ASSESSMENT DISTRICT NO. 79 (BEACON BAY) (hereinafter referred to as the "Assessment Districf') to provide for street improvements including resurfacing, curbs, gutters, and storm drains and for the conversion of certain overhead electrical and communication facilities to underground locations, together with appurtenances and appurtenant work in connection therewith, pursuant to the terms and provisions of the "Municipal Improvement Act of 1913 ", being Division 12 of the Streets and Highways Code of the State of California (the "Act "); WHEREAS, the street improvements including resurfacing, curbs, gutters, and storm drains and the conversion of the overhead electrical and communication facilities to underground locations, together with appurtenances and appurtenant work in connection therewith, is to be done to further public safety and to improve community aesthetics; NOW THEREFORE, Be it Determined, Resolved, and Ordered by the City Council of the City of Newport Beach (the "City ") as follows: DECLARATION OF INTENTION SECTION 1. The public interest and convenience require, and it is the intention of this legislative body to order, pursuant to the Act, the acquisition of the public improvements hereinafter described in and for the Assessment District and to assess the cost thereof against the real property specially benefited thereby. DESCRIPTION OF IMPROVEMENTS SECTION 2. The public improvements to be acquired and the manner of the acquisition are generally described as follows: A. The improvements generally consist of street improvements including resurfacing, curbs, gutters, and storm drains and the conversion of existing overhead electrical and communication facilities to underground locations within the area generally known as Beacon Bay and bounded on the north by the Harbor Island Drive, on the west by Harbor Island Road, on the east by the City marina, and on the south by the Balboa Island Channel, together with appurtenances and appurtenant work thereto, all to serve and specially benefit the properties within Assessment District No. 79. B. All rights -of -way and easements required for the improvements shall be shown upon the plans to be made a part of the Assessment Engineer's Report and to be filed with these proceedings. C. All of the improvements to be acquired are to be installed at the places and in the particular locations, and to the sizes, dimensions and materials, and to the lines, grades and elevations, as shown and delineated upon the plans, profiles and specifications all to be made a part of the Assessment Engineer's Report. D. The description of the improvements contained in this Resolution is general in nature, and the plans and profiles of the work as contained in the Assessment Engineer's Report shall be controlling as to the correct and detailed description thereof. DESCRIPTION OF ASSESSMENT DISTRICT SECTION 2. The improvements are of special benefit to the properties and land within the Assessment District, and this legislative body hereby makes the expenses of the acquisition of such improvements chargeable upon the Assessment District, which is described as follows: All of that certain territory in the proposed Assessment District included within the exterior boundary lines shown on the map exhibiting the property specially benefited and proposed to be assessed to pay the costs and expenses of the acquisition of the work and improvements described above, which map is entitled "PROPOSED BOUNDARIES ASSESSMENT DISTRICT NO. 79 (BEACON BAY)" and was previously approved by this legislative body and is on file with the transcript of these proceedings. For all particulars as to the boundaries of the Assessment District, reference is hereby made to the boundary map. REPORT OF THE ASSESSMENT ENGINEER SECTION 3. The proposed improvements are hereby referred to Willdan Associates (the "Assessment Engineer "), who is hereby directed to make and file a report as required by the Improvement Act, Article XIIID of the Constitution of the State of California, and the Omnibus Proposition 218 Implementation Act (Government Code Section 53750), such report shall be in writing and contain the following: A. Plans and specifications of the improvements proposed to be acquired; B. An estimate of the cost of the acquisition of the improvements proposed to be acquired, including the cost of the incidental expenses, in connection therewith; C. A diagram showing the Assessment District, which shall also show the boundaries and dimensions of the respective subdivisions of land within such Assessment District, as the same existed at the time of the passage of this Resolution of Intention, each of which subdivisions shall be given a separate number upon such diagram; D. The proposed assessment of the assessable costs and expenses of the acquisition of the proposed improvements upon the several divisions of land in the Assessment District in proportion to the estimated special benefits to be received by such subdivisions, respectively, from such improvements. Such assessment shall refer to such subdivisions upon such diagram by the respective numbers thereof; E. The description of the improvements proposed to be acquired under these proceedings. When any portion or percentage of the assessable costs and expenses of the acquisition of the improvements is to be paid from sources other than assessments, the amount of such portion or percentage shall first be deducted from the total estimated costs and expenses of such acquisition, and such assessment shall include only the remainder of the estimated costs and expenses. The assessment shall refer to the subdivisions by their respective numbers as assigned pursuant to subparagraph D above BONDS SECTION 4. Notice is hereby given that bonds to represent the unpaid assessments, and bear interest at the rate of not to exceed the current legal maximum rate of 12% per annum, will be issued hereunder in the manner provided in the Improvement Bond Act of 1915 (Streets and Highways Code Section 8500, et seq.), which bonds shall be issued for a term not to exceed the legal maximum term as authorized by law, namely, thirty-nine (39) years from the second day of September next succeeding twelve (12) months from their date. The provisions of Part 11.1 of the Act, providing an alternative procedure for the advance payment of assessments and the calling of bonds shall apply. The principal amount of the bonds maturing each year shall be other than an amount equal to an even annual proportion of the aggregate principal of the bonds, and the amount of principal maturing in each year, plus the amount of interest payable in that year, will be generally an aggregate amount that is equal each year, except for the first year's adjustment. Pursuant to the provisions of the Improvement Act and specifically Streets and Highways Code Section 10603, the Treasurer is hereby designated as the officer to collect and receive the assessments during the cash collection period. IMPROVEMENT ACT SECTION 5. Except as may otherwise be provided for in the issuance of the bonds described above, all of such improvements shall be acquired pursuant to the provisions of the Act. SURPLUS FUNDS SECTION 6. If any excess shall be realized from the assessment, it shall be used, in such amounts as the legislative body may determine, in accordance with the provisions of law for one or more of the following purposes: A. Transfer to the general fund; provided that the amount of any such transfer shall not exceed the lesser of One Thousand Dollars ($1,000,00) or five percent (5 %) of the total from the Improvement Fund; B. As a credit upon the assessment and any supplemental assessment; C. For the maintenance of the improvements; or D. To call bonds. IMPROVEMENT FUND SECTION 7. The legislative body hereby establishes a special improvement fund identified and designated by the name of this Assessment District, and into such Fund monies may be transferred at any time to expedite the acquisition of the authorized improvements, and any such advancement of funds is a loan and shall be repaid out of the proceeds of the sale of bonds as authorized by law. PROCEEDINGS INQUIRIES SECTION 8. For any and all information relating to these proceedings, including information relating to protest procedure, your attention is directed to the person designated below: Richard Hoffstadt, Development Engineer City of Newport Beach P.O. Box 1768 Newport Beach, California 92658 (949) 644 -3324 PUBLIC PROPERTY SECTION 9. All public property shall be subject to assessment in these proceedings. ACQUISITION SECTION 10. The public interest, convenience and necessity requires that certain land, rights - of -way or easements be obtained in order to allow the works of improvement as proposed for this Assessment District to be accomplished. The Assessment Engineer's Report, upon adoption, shall provide certification that the land, rights -of -way or easements have been acquired or will be acquired as part of the acquisition of the improvements. NO CITY LIABILITY SECTION 11. This legislative body hereby declares not to obligate itself to advance available funds from the Treasury to cure any deficiency which may occur in the bond redemption fund for the Assessment District. This determination is made pursuant to the authority of Section 8769(b) of the Streets and Highways Code of the State of California and shall be set forth in the text of the bonds issued pursuant to the Act. ANNUAL ADMINISTRATIVE ASSESSMENT SECTION 12. It is hereby declared that this legislative body proposes to levy an annual assessment pursuant to Section 10204 of the Streets and Highways Code of the State of California, such annual assessment 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 their related funds. UTILITY IMPROVEMENTS SECTION 13. Pursuant to Section 10110 of the Streets and Highways Code of the State of California, it is also the intention of this legislative body with respect to the improvements to be owned managed or controlled by any other public agency, regulated public utility, or mutual water company, prior to ordering the acquisition of improvements, to enter into an agreement with each public utility company or public agency, or any combination thereof with respect to the improvements to be owned, controlled or managed by the utility or agency. PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Newport Beach, held on the 23rd day of May, 2000, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: City Clerk W Mayor RESOLUTION NO. RESOLUTION GIVING PRELIMINARY APPROVAL TO THE REPORT OF THE ASSESSMENT ENGINEER, SETTING A TIME AND PLACE FOR A PUBLIC HEARING AND ORDERING THE INITIATION OF ASSESSMENT BALLOT PROCEDURES FOR ASSESSMENT DISTRICT NO. 79 WHEREAS, this legislative body has instituted proceedings for the formation of a special assessment district designated as ASSESSMENT DISTRICT NO. 79 (BEACON BAY) (hereinafter referred to as the "Assessment District") to provide for street improvements including resurfacing, curbs, gutters, and storm drains and for the conversion of certain overhead electrical and communication facilities to underground locations, together with appurtenances and appurtenant work in connection therewith, pursuant to the terms and provisions of the "Municipal Improvement Act of 1913 ", being Division 12 of the Streets and Highways Code of the State of California (the "Act "); WHEREAS, a resolution of intention (the "Resolution of Intention ") for the formation of the Assessment District and the acquisition of the street improvements and utility conversion was previously adopted by this legislative body; WHEREAS, there has been prepared and filed with this legislative body for its consideration a Report of the Assessment Engineer (the "Report") as provided for in and required by the Resolution of Intention, Sections 10203 and 10204 of the Act, Article XIIID of the Constitution of the State of California ( "Article XIIID"), and the Proposition 218 Omnibus Implementation Act (commencing with Section 53750 of the Government Code) (the "Implementation Act ") (the Act, Article XIIID and the Implementation Act are referred to herein collectively as the "Assessment Law "); NOW, THEREFORE, It is hereby Determined, Resolved, and Ordered as follows: SECTION 1. The above recitals are all true and correct. SECTION 2. The Report is adopted, passed upon, and preliminarily approved, as follows: A. The plans and specifications for the improvements proposed to be acquired, as contained in the Report, are hereby preliminarily approved and adopted; B. The Assessment Engineer's estimate of the itemized and total costs and expenses of the acquisition of the improvements and of the incidental expenses in connection therewith contained in the Report, and each of them are hereby preliminarily approved and adopted; C. The diagram showing the Assessment District referred to and described in the Resolution of Intention, and also the boundaries and dimensions of the respective subdivisions of land within the Assessment District, as the same existed at the time of the passage of said Resolution of Intention, each of which subdivisions have been given a separate number upon the diagram, as contained in the Report, is hereby preliminarily approved and adopted; D. The proposed assessment upon the several subdivisions of land in the Assessment District, in proportion to the estimated special benefits to be received by such subdivisions, respectively, from the improvements to be acquired, and of the incidental expenses thereof, as contained in the Report, are hereby preliminarily approved and adopted; E. The descriptions of the improvements to be acquired contained in the Report are hereby preliminarily approved. SECTION 3. The Report shall stand as the Assessment Engineer's Report for the purpose of all subsequent proceedings had pursuant to the Resolution of Intention. SECTION 4. NOTICE IS HEREBY given that the City Council of the City Of Newport Beach will hold a public hearing on the assessment district and the proposed assessments at its regular meeting place, being the Council Chambers at 3300 Newport Boulevard, Newport Beach, California, on July 11, 2000 at 7:00 p.m. Pursuant to the provisions of the Assessment Law, each record owner of property proposed to be assessed has the right to submit an assessment ballot in favor of or in opposition to the proposed assessment. Assessment ballots will be mailed to the record owner of each parcel located within the assessment district and subject to a proposed assessment. Each such owner may complete such ballot and thereby indicate their support for or opposition to the proposed assessment. All such ballots must be received by the city clerk at the following address at or before the time set for the close of the public hearing: City Clerk City of Newport Beach 3300 Newport Boulevard Newport Beach, CA 92658 A postmark prior to such date and time will not be sufficient. At the conclusion of the public hearing, the City Council shall cause the assessment ballots timely received to be tabulated. If a majority protest exists, the City Council shall not impose an assessment within the assessment district. A majority protest exists if, upon the conclusion of the public hearing, assessment ballots submitted in opposition to the assessments within the assessment district exceed the ballots submitted in favor of such assessments. In tabulating the ballots, the ballots shall be weighted according to the proportional financial obligation of the affected property. SECTION 5. The City Clerk is hereby directed to mail, in the form and manner prescribed in the Assessment Law and at least 45 days prior to the date of the public hearing, notice of the public hearing and the adoption of the Resolution of Intention and of the filing of the Report, together with the assessment ballot materials, to the record owners of all real property proposed to be assessed. SECTION 6. The City Clerk is hereby further directed to file a copy of the proposed boundary map in the Office of the County Recorder within fifteen (15) days of the adoption of this resolution; said boundary map to be filed in the manner and form as set forth in Division 4.5 of the Streets and Highways Code of the State of California. PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Newport Beach, held on the 23rd day of May, 2000, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: City Clerk 4 Mayor May 23, 2000 w NY or Preliminary Engineer's Report Assessment District No. 79 (Beacon Bay) Prepared by: WILLDAN CITY OF NEWPORT BEACH PRELIMINARY ENGINEER'S REPORT ASSESSMENT DISTRICT NO. 79 (BEACON BAY) MAYOR John E. Noyes, Jr. MAYOR PRO TEM Gary Adams COUNCIL MEMBERS Ted Ridgeway Janice A. Debay Norma Glover Dennis O'Neil Tom W. Thomson Homer Bludau Don Webb Robert Burnham LaVonne Harkless Dennis Danner City Manager Superintendent of Streets City Attorney City Clerk City Treasurer Preliminary Engineer's Report PRELIMINARY ENGINEER'S REPORT ASSESSMENT DISTRICT NO. 79 (BEACON BAY) CITY OF NEWPORT BEACH TABLE OF CONTENTS Eme GENERAL DESCRIPTION OF THE DISTRICT .............................. 1 DESCRIPTION OF WORK ............... ............................... 1 BONDS.............................. ............................... 1 EXHIBIT A — PLANS AND SPECIFICATIONS EXHIBIT B —COST ESTIMATE EXHIBIT C — FACILITIES LOCATION MAP EXHIBIT D — ASSESSMENT ROLL EXHIBIT E — METHOD OF ASSESSMENT EXHIBIT F — ASSESSMENT DIAGRAM EXHIBIT G — MAXIMUM ANNUAL ADMINISTRATIVE COST ADD -ON EA RepOADMuessmen10epsdment1En8ineefs HeporBNewporl Beae111ER (Newport BMCh).wp0 Willdan ii City of Newport Beach Preliminary Engineer's Report CERTIFICATIONS I, LaVonne Harkless, as City Clerk, do hereby certify that the foregoing assessment, together with the diagram attached thereto, was filed in my office on the _ day of , 2000. City Clerk City of Newport Beach State of California I, LaVonne Harkless, as City Clerk, do hereby certify that the foregoing assessment, together with the assessment diagram attached thereto, was approved and confirmed by the City Council of said City on the _ day of 2000. City Clerk City of Newport Beach State of California I, Donald Webb, as Superintendent of Streets of said City, do hereby certify that the foregoing assessment, together with the diagram attached thereto, was recorded in my office on the _ day of 2000. Superintendent of Streets City of Newport Beach State of California Willdan iii City of (Newport Beach Preliminary Engineers Report PRELIMINARY ENGINEER'S REPORT ASSESSMENT DISTRICT NO. 79 (BEACON BAY) CITY OF NEWPORT BEACH Willdan, Engineer of Work for the City of Newport Beach Assessment District No. 79 (Beacon Bay) (hereinafter referred to as the "District') makes this report, as directed by the City Council of the City of Newport Beach (hereinafter referred to as the "City ") in accordance with the Resolution of Intention, Resolution No. _, and pursuant to the provisions of Part 7.5 of the Special Assessment Investigation, Limitation and Majority Protest Act of 1931, which is Division 4 of the Streets and Highways Code of the State of California and the Municipal Improvement Act of 1913, which is Division 12 of the Streets and Highways Code of the State of California. The improvements, which are the subject of this report, are briefly described as follows: GENERAL DESCRIPTION OF THE DISTRICT The District improvements are to benefit a contiguous area in the City known as the Community of Beacon Bay located between Pacific Coast Highway and the Balboa Island Channel. The District consists of sixty -nine residential leasehold parcels and three recreational parcels owned by the City. DESCRIPTION OF WORK The improvements proposed for this District consist of the construction and /or acquisition of street, storm drain, and underground utility improvements along Beacon Bay Drive, Cutter Road, Ketch Road, Schooner Road, and Yawl Road located within the Community of Beacon Bay in the City of Newport Beach. Street improvements primarily include construction of curb and gutter, street resurfacing, and speed bump reconstruction. Storm drain improvements primarily include installation of drainage catch basins and installation ofstormdrains. Undergroundingofutilitiesprimarilyincludetheundergroundingofexisting overhead telephone and electrical lines and the upgrading of existing street lighting facilities within the District together with appurtenances and appurtenant work. Thedetails of the District improvements are included in this report as Exhibit A - Plans and Specifications, and as Exhibit B - Cost Estimates. BONDS Bonds representing unpaid assessments, and bearing interest at a rate not -to- exceed twelve- percent (12- percent) per annum, shall be issued in the manner provided by the Improvement Bond Act of 1915 (Division 10, Streets and Highways Code), and the last installment of the bonds shall mature not -to- exceed thirty -nine (39) years from the second day of September next succeeding twelve (12) months from their date. Willdan 1 City of Newport Beach Preliminary Engineer's Report This report includes the following attached exhibits: EXHIBIT A — Plans and Specifications. Plans and specifications for improvements to be constructed. Plans and specifications are a part of this report, separately bound, and are available for review at the Office of the City Clerk. EXHIBIT B — Cost Estimate. An estimate of the cost of the improvement. EXHIBIT C — Facilities Location Map. A diagram illustrating the general location of the proposed District facilities. EXHIBIT D— Assessment Roll. An assessment roll showing the amount to be assessed against each parcel of real property within the District. Each parcel is described by Assessor's Parcel Number or other designation. Each parcel is also assigned an "assessment number" for the purposes of this proceeding. EXHIBIT E — Method of Assessment. A statement of the method by which the Assessment Engineer determined the amount to be assessed against each parcel in the District based on special benefits derived by each parcel, receptively, from the District improvements. EXHIBIT F — Assessment Diagram. An assessment diagram showing all of the parcels of real property within the District. The diagram is keyed to Exhibit D by assessment number. EXHIBIT G — Maximum Annual Administrative Cost Add -on. A proposed maximum annual assessment per parcel for costs and expenses for administering the District. Willdan 2 City of Newport Beach Preliminary Engineer's Report PRELIMINARY ENGINEER'S REPORT ASSESSMENT DISTRICT NO. 79 (BEACON BAY) CITY OF NEWPORT BEACH EXHIBIT A — PLANS AND SPECIFICATIONS The plans and specifications for the improvements for this District are voluminous and will not be bound in this Report, but by this reference, are incorporated as if attached to this Report. The plans and specifications are on file in the office of the City Engineer /Director of Public Works of the City of Newport Beach. The plans and specifications for this District consist of street, storm drain, and underground utilities improvements. Willdan Exhibit A - 1 City of Newport Beach Preliminary Engineers Report PRELIMINARY ENGINEER'S REPORT ASSESSMENT DISTRICT NO. 79 (BEACON BAY) CITY OF NEWPORT BEACH EXHIBIT B — COST ESTIMATE The Cost Estimate detail is as follows. Preliminary Confirmed Item Description Amount Amount 'Note: To be included in the vadous items of work, no separate bid from contractors. Subtotal Street Improvement Costs: $284,209 STREET IMPROVEMENTS 1. Excavation $23,500 2. Curb and Gutter $53,040 3. Minor Concrete (Curb Ramps, Walkways, and Steps) $8,400 4. Asphalt Concrete $43,680 5. Aggregate Base Coarse $29,120 6. Planter Wall $13,500 7. Speed Humps $1,500 8. Remove Asphalt Concrete /Base $98,580 9. Remove Concrete Curb $2,730 10. Remove Concrete (Miscellaneous Area) $190 11. Miscellaneous Private Property Improvements' $5,000 12. Water Valve Box $500 13. Adjust to Grade $2,500 14. Striping and Pavement Markings $1,500 15. Concrete Mow Strip $469 'Note: To be included in the vadous items of work, no separate bid from contractors. Subtotal Street Improvement Costs: $284,209 Willdan Exhibit B - 1 City of Newport Beach STORM DRAIN IMPROVEMENTS 16. Remove Inlet $4,000 17. Drainage Catch Basins $30,000 18. Fossil Filter (included in item #16; $460 /each) $0 19. Dutch Drain $1,000 20. Manholes $12,500 21. 18" Reinforced Concrete Pipe $20,280 22. 24" Reinforced Concrete Pipe $20,240 23. 27" Reinforced Concrete Pipe $18,265 24. 30" Reinforced Concrete Pipe $2,880 25. 36" Reinforced Concrete Pipe $9,825 26. Junction Structure $6,000 27. Transition Structure $5,000 28. Concrete Outlet and Intermediate Supports $4,200 29. 8" Concrete Pipe $50 30. Storm Drain Outlet Headwall, Riprap, and Barrier $25,000 Subtotal Storm Drain Improvement Costs: $159,240 Willdan Exhibit B - 1 City of Newport Beach Preliminary Engineer's Report Preliminary Confirmed Item Description Amount Amount 2 UNDERGROUNDING UTILITIES 3 31. Underground Utilities and Street Lighting $634,733 5 Subtotal Undergrounding Utilities Improvements Costs: $634,733 OTHER COSTS 32. Mobilization $15,000 33. Engineering Costs (Design, Survey, Soils) $75,000 Subtotal Other Costs: $90,000 Subtotal Incidental& Construction: $1,168,182 20% Contingency: $233,636 Total Incidental 8 Construction: $1,401,818 FINANCIAL COSTS 1 Bond Council 2 Paying Agent 3 Bond Discount (2.5 %) 4 Bond Reserve (5.0 %) 5 Capitalized Interest (6.0 %) $25,000 $2,500 $41,310 $82,520 $99,143 Subtotal Financial Costs: $250,573 Total Estimate: $1,652,391 Cost per Unit (based on 69 SFR units)�23.947.69 Willdan Exhibit B - 2 City of Newport Beach Preliminary Engineer's Report PRELIMINARY ENGINEER'S REPORT ASSESSMENT DISTRICT NO. 79 (BEACON BAY) CITY OF NEWPORT BEACH EXHIBIT C — FACILITIES LOCATION MAP The following is a diagram illustrating the general location of the proposed District facilities. Willdan Exhibit C - 1 City of Newport Beach •.�Li.:fS�p +� ^�•i�iia�Fi'i i�;G ✓. ►i•�!: c���iii F•ii! ,.wwr •iii °.•.O•.�f�. ►�O•A �4�.1 °i' %•li•v.: �: viii a° :� � <�bj� i a =o i� ❖:� Ing ,ii•< .•.dal Y © /©. / ® N Ei '= 1 s r , r� x•11 �I Z O G H Z o Z a m 1H. K W O z W O W = CO m C N � O a 0 OC V [al FFa-d in %A C W aC W m vi J O K O N 3 2 u j H 'm U O _Q2 Z g ed O G 0 0 vFl H I ' I 1• t tt I I n C Preliminary Engineer's Report PRELIMINARY ENGINEER'S REPORT ASSESSMENT DISTRICT NO. 79 (BEACON BAY) CITY OF NEWPORT BEACH EXHIBIT D — ASSESSMENT ROLL An assessment of the total amount of the costs and expenses of the improvements upon the subdivisions of land within the District in proportion to the estimated special benefit to be received by the subdivisions from the improvements, is set forth upon the following Assessment Roll filed with and made part of this Report. The Assessment Roll lists the assessor's parcel numberswithin this District by assessment number. The assessment numbers appearing on the Assessment Roll correspond with the subdivisions and parcels of land and their numbers shown on the Assessment Diagram (Exhibit E). Willdan Exhibit D - 1 City of Newport Beach Preliminary Engineer's Report EXHIBIT D - ASSESSMENT ROLL I Assess. ment NO. Assessor's Parcel Numberor Legal Owner Name Owner Mailing Address 1 Preliminary Assessment IAssessment Confirmed 1 988 - 883 -68 Thomas R Capehart 1225 S Grand Ave, Pasadena CA 91105 $23,947.69 2 988 - 883 -69 John D Eversoll 2 Beacon Bay, Newport Beach CA 92660 $23,947.69 3 98 8-883 -70 Paul A Ramsey 190068 6711 Forest Lawn Dr #201, Los Angeles CA $23,947.69 4 98 8-880 -38 1 Daniel M Guggenheim 14 Beacon Bay, Newport Beach CA 92660 $23,947.69 5 98 8-883 -38 John L Curci I PO Box 1549, Newport Beach CA 92659 $23,947.69 6 98 &893 -71 Carol L Wilken 6 Beacon Bay, Newport Beach CA 92660 $23,947.69 7 98 8-880 -39 Safe Deposit Boston I PO Box 590, Boston Me 02102 $23,947.69 8 98 &883 -72 j Sam 1 Pichey 17700 Edgewater Dr #600, Oakland CA 94621 $23,947.69 9 988.893 -41 Peter J Shea 9 Beacon Bay, Newport Beach CA 92660 $23,947.69 10 988 -88046 Frank Obryan 10 Beacon Bay, Newport Beach CA 92660 $23,947.69 11 1 988.88317 David L Roberson 111 Beacon Bay, Newport Beach CA 92660 1 $23,947.69 12 988.883-40 Rea G Rawlins 112 Beacon Bay, Newport Beach CA 92660 $23,947.69 13 j 988- 880 -47 Lowell C Martindale Jr. 13 Beacon Bay, Newport Beach CA 92660 $23,947.69 14 988.880 48 jUs 1600 Anton Blvd #150, Costa Mesa CA 92626 $23,947.69 15 98BBBO -19 I Shawn Keifer 115 Beacon Bay, Newport Beach CA 92660 $23,947.69 16 98 &883 -60 Philip M Hawley 336 S Hudson Ave, Los Angeles CA 90020 $23,947.691 17 988-880 -20 Ronald Rus 17 Beacon Bay, Newport Beach CA 92660 $23,947.69 18 988- 880 -21 Henry R Griffith 18 Beacon Bay, Newport Beach CA 92660 $23,947.69' 19 988 - 880 -22 Sheryl Stanton Gerrie 2801 Ebbtide Rd, Corona Del Mar CA 92625 $23,947.69 20 988 - 880 -30 Peggy Obrien Hakes 20 Beacon Bay, Newport Beach CA 92660 $23,947.691 21 98 8-883 -44 Harold J & Karly Brown 21 Beacon Bay, Newport Beach CA 92660 $23,947.69 22 98 &880 -31 Bank of California NA 22 Beacon Bay, Newport Beach CA 92660 $23,947.69 23 98 &880 -26 Hallie Strock 23 Beacon Bay, Newport Beach CA 92660 $23,947.69 24 98 8-882 -85 Norman A Smith 24 Beacon Bay, Newport Beach CA 92660 $23,947.69 25 98 8-880 -27 Constance Sammis 25 Beacon Bay, Newport Beach CA 92660 $23,947.69 26 988- 883 -46 Lorraine Robinson 26 Beacon Bay, Newport Beach CA 92660 $23,947.69 27 988- 880-28 George Hadley 27 Beacon Bay, Newport Beach CA 92660 $23,947.69 28 988- 880 -29 City of Newport Beach 3300 Newport Blvd, Newport Beach CA 92663 $23,947.69 29 988 -883 -45 William G Geffeney 29 Beacon Bay, Newport Beach CA 92660 $23,947.69 30 98 6-880 -25 Joy L Monroe 30 Beacon Bay, Newport Beach CA 92660 $23,947.69 31 988- 883 -62 David S Pratt 31 Beacon Bay, Newport Beach CA 92660 $23,947.69 32 98 8-880 -24 Eugenie E Fisher 32 Beacon Bay, Newport Beach CA 92660 $23,947.69 33 988- 880 -23 Robert V Hodges 33 Beacon Bay, Newport Beach CA 92660 $23,947.69 34 98 8-883 -36 David H Eaton 34 Beacon Bay, Newport Beach CA 92660 $23,947.69 35 98 8-883 -37 Margaret E Hromadka 300 Hot Springs Rd #5, Montecito CA 93108 $23,947.69 36 98 8-880 -15 Claudette Bakewell 36 Beacon Bay, Newport Beach CA 92660 $23,947.69 37 98 8-893 -39 Eel River Sales Company Pension Plan PO Box 3335, Newport Beach CA 92659 $23,947.69 38 98 8-880 -16 Lillis H Morgan 38 Beacon Bay, Newport Beach CA 92660 $23,947.69 39 988. 880 -17 William D Wilkerson 39 Beacon Bay, Newport Beach CA 92660 $23,947.69 40 988- 880 -18 Mary Ann Price Bower 40 Beacon Bay, Newport Beach CA 92660 $23,947.69 41 988- 880 -51 James F English 41 Beacon Bay, Newport Beach CA 92660 $23,947.69 42 988- 880 -50 Jo Ann Stillman 42 Beacon Bay, Newport Beach CA 92660 $23,947.69 43 988.880 49 Robert L Thome 43 Beacon Bay, Newport Beach CA 92660 $23,947.69 44 988- 883 -80 Karin K Buxton 44 Beacon Bay, Newport Beach CA 92660 $23,947.69 45 98 &880 -52 Ted R Rubins 45 Beacon Bay, Newport Beach CA 92660 $23,947.69 46 988- 883 -79 Thomas J Viola 6Th Floor, Los Angeles CA 90017 $23,947.69 47 98 &883 -76 G L Howland 47 -4712 Beacon Bay, Newport Beach CA 9266 $23,947.69 48 98 8-883 -77 Michael A Ford 48 Beacon Bay, Newport Beach CA 92660 $23,947.69 Willdan Exhibit D - 2 City of Newport Beach Preliminary Engineer's Report Assess- ment No. Assessor's Parcel Numberor Legal ,Owner Name Owner Mailing Address I Preliminary Assessment Confirmed Assessment 49 988 -863 -08 Gerald A DeFreece 49 Beacon Bay, Newport Beach CA 92660 $23,947.69:1 50 988- 880-43 Steven & Janet Dowd 25902 Nellie Gail Rd, Laguna Hills CA 92653 $23,947.69 51 986- 880-44 Robert O Briggs 16662 Milliken Ave, Irvine CA 92606 $23,947.69 52 988- 883 -78 Bank of California; Pillager Ham 1401 Dove St, San Francisco CA 94145 $23,947.691 53 988- 88045 Ann E Evans 53 Beacon Bay, Newport Beach CA 92660 $23,947.691 54 988- 883 -75 Damn S Wilson 54 Beacon Bay, Newport Beach CA 92660 $23,947.69 55 988 - 880-42 Geoffrey Wyeth McKenzie 55 Beacon Bay, Newport Beach CA 92660 $23,947.69 56 988 - 880-41 A rthur Engstrom 56 Beacon Bay, Newport Beach CA 92660 $23,947.69 57 988 - 883 -74 Martin J Burke 57 Beacon Bay, Newport Beach CA 92660 $23,947.69 58 988 - 883-49 Curtis Ellmore 58 Beacon Bay, Newport Beach CA 92660 $23,947.69 59 988- 880-40 Paul O Dunn 36 Royal Saint George Rd, Newport Beach CA 92660 $23,947.69 60 988- 883 -73 I Richard A Schaub 1719 Camino Lindo, South Pasadena CA 910301 $23,947.69 61 988- 883-42 Sally N Crow 61 Beacon Bay, Newport Beach CA 92660 $23,947.69 62 988 - 883-63 John Davenport 62 Beacon Bay, Newport Beach CA 92660 $23,947.69 63 1 988 -880.32 Samuel P Anderson 163 Beacon Bay, Newport Beach CA 92660 $23,947.69 64 1 988- 883-64 Barbara C Walz 64 Beacon Bay, Newport Beach CA 92660 $23,947.69 65 988- 883-66 Kathleen Ann Norris 12559 Abedul St, Carlsbad CA 92009 $23,947.69 66 988 -880.34 1 Anthony Maglica 1635 S Sacramento Ave, Ontario CA 91761 $23,947.69 67 988- 883-65 1 William D Jennett 1200 Wilshire Blvd #6Th, Los Angeles CA 90017 $23,947.69 68 98 &880.33 W Michael Hay 68 Beacon Bay, Newport Beach CA 92660 $23,947.69 69 988 -880.35 Janet C Beck 69 Beacon Bay, Newport Beach CA 92660 $23,947.69 70 050.221 -02 City of Newport Bch ea P.O. Box 1768, Newport Beach CA 92658 $0.00 71 050 - 221 -03 City of Newp ort Beach P.O. Box 1768, Newport Beach CA 92658 $0.00 72 050.221 -04 City of Newport Beach P.O. Box 1768, Newport Beach CA 92658 $0.00 72 Parcels Total Amount to Assessment $1,652,390.61 $- Note; Assessor parcel number, owner name and mailing address obtained from County of Orange Assessor's Secured Property Tax Rolls for FY 199912000. Willdan Exhibit D - 3 City of Newport Beach Preliminary Engineer's Report PRELIMINARY ENGINEER'S REPORT ASSESSMENT DISTRICT NO. 79 (BEACON BAY) CITY OF NEWPORT BEACH EXHIBIT E — METHOD OF ASSESSMENT Background The law requires that assessments levied pursuant to the Municipal Improvement Act of 1913 must be based on the direct benefit properties received from the Works of Improve- ment. The statute does not specify the method or formula that should be used to apportion the assessments in special Assessment District proceedings. The responsibility rests with the Assessment Engineer who is appointed for the purpose of analyzing the facts and determining the apportionment (spread) of the assessment obligation. For these proceedings, the City has retained the firm of Willdan. The Assessment Engineer makes his recommendation at the public hearing on the Assessment District, and the final authority and action rest with the City after hearing all testimony and evidence presented at the public hearing. Upon conclusion of the public hearing, the City must make the final action in determining whether or not the assessment spread has been made in direct proportion to the benefits received. It is necessary to identify the benefit that the Works of Improvement will render to the properties within the Assessment District. It is also necessary that the properties receive a special and direct benefit as distinguished from benefit to the general public. Benefit General Benefit The District is a residential community with ingress /egress limited to the intersection of Harbor Island Road and Beacon Bay. All streets within the District are local public streets serving only the residents of the District. Therefore, the District improvements provide no general benefit to the public at large. Special Benefit The improvements to the District include street and storm drain improvements and the undergrounding of existing telephone and electrical utilities. All residential parcels within the District receive direct and special benefit from the District improvements. The three recreational parcels owned by the City receive less special benefit from the street and storm drain improvements than the residential parcels, and receive no benefit from the undergrounding of utilities since there are no existing overhead utilities for these parcels. Wilidan Exhibit E - 1 City of Newport Beach Preliminary Engineer's Report However, since these recreational parcels are maintained by the Beacon Bay Homeowner's Association and used exclusively by the residential property owners of the District, any special benefit received by these parcels from the street and storm drain improvements is directly passed through to the residential property owners. As such, the residential property owners are considered to receive 100% of the direct and special benefit from the District improvements. The special benefit received by each improvement will be discussed separately. Street and Storm Drain Improvements The street and storm drain improvements to be constructed along Beacon Bay, Cutter Road, Ketch Road, Schooner Road and Yale Road will provide a direct and special benefit to all residential properties within the District by improving drainage flow away from the properties and reduce ponding of storm water in the streets. This will provide safer streets, better aesthetics and improve ingress /egress into the residential properties within the District. Undergrounding of Utilities The undergrounding of utilities provide a direct and special benefit to all residential properties within the District even though there may not be a particular improvement immediately adjacent to a particular parcel. All residential parcels within the District will benefit from the undergrounding of existing overhead utility poles and lines. The District is composed of narrow, grade level residential streets. Existing overhead utility poles and lines within the streets affect neighborhood streetscapes and the aesthetic quality of the District. Overhead utility poles and lines cause disruption to views for certain residential structures within the District. The removal of overhead utility poles and lines will increase the safety of streets and neighborhood by removing potentially hazardous conditions in the event of a natural disaster. The improvements consist of the removing of physical and visual impediments thus aesthetically enhancing the nature of the District. Based on the uniform configuration of the streets and the relatively standard spacing of the existing overhead utility poles and lines, all parcels within the District will benefit the same from the undergrounding of existing overhead poles and lines. The District improvements render a direct and special benefit to the residential parcels located within the District and the levy of a special assessment for the improvements is appropriate. Willdan Exhibit E - 2 City of Newport Beach Preliminary Engineer's Report Method of Assessment A review of the District parcels and parcel configurations, as provided by the County Assessor and the City, was made in connection with determining the method of assessment forthe District. The District is comprised of sixty -nine single - family residential parcels and three recreational /homeowner's association parcels. The single - family residential structures are all located at street level and are all relatively the same lot size and configuration. All such parcels within the District receive an equal benefit from the District improvements and will be assessed equally. The recreational /homeowner's parcels, as discussed under Special Benefit above, receive little or no special benefit from the District improvements and will not be assessed for the District improvements. The following are the two (2) basic types of parcels within the District: Units Assigned SFR - Single- family residential 1.0 COM - Common area or recreational use parcels 0 Assessment Calculation The assessment levy to each SFR parcel will be calculated by dividing total District improvement costs plus financing costs by the total SFR units. The cost of the District improvements plus financing costs is estimated to be $1,646,244. Individual Assessments The individual assessments are tabulated for each Assessor's Parcel Number, as shown on Exhibit C - Assessment Roll which is on file with the City Clerk of Newport Beach. In conclusion, it is my opinion that the assessments for Underground Utility Assessment District No. 79 (Beacon Bay) are allocated in accordance with the benefits which the land received from the Works of Improvement. WILLcD�AN1\— By David L. Hunt Engineer of Work City of Newport Beach State of California Willdan Exhibit E - 3 City of Newport Beach Preliminary Engineer's Report PRELIMINARY ENGINEER'S REPORT ASSESSMENT DISTRICT NO. 79 (BEACON BAY) CITY OF NEWPORT BEACH EXHIBIT F —ASSESSMENT DIAGRAM The Assessment Diagram in a reduced -scale format is as follows. Willdan Exhibit F - 1 City of Newport Beach ?30?33 O ? ?Oq?? 00000 . , ??O � • k G ,�!■ ] . ) § O & � O ' c2 § - ko>. ' g 3 O q 0 0 \§ za 3 • § W2§ 1 _S Q _ ® & §§( k§ ■ ` O O _ i /] / § - - - - |§ ( !4 � § . �) o \l k . .� _ . ?30?33 O ? ?Oq?? 00000 ??O Preliminary Engineers Report PRELIMINARY ENGINEER'S REPORT ASSESSMENT DISTRICT NO. 79 (BEACON BAY) CITY OF NEWPORT BEACH EXHIBIT G — MAXIMUM ANNUAL ADMINISTRATIVE COST ADD -ON In addition to or as a part of the assessment lien levied against each parcel of land within the District, each parcel of land shall also be subject to an annual administrative cost add - on to pay costs incurred by the City and not otherwise reimbursed which results from the administration and collection of assessments or from the administration or registration of any bonds and /or reserve or other related funds. The maximum total amount of such annual administrative cost add -on for the entire Assessment District will not exceed $10,000, subject to an increase annually by the positive change, if any, in the consumer price index for the Los Angeles area. Each assessed parcel's share of the administrative cost add -on shall be computed by dividing the total annual administrative cost by the total number of assessed parcels. Willdan Exhibit G - 1 City of Newport Beach BOND COUNSEL AGREEMENT THIS AGREEMENT made and entered into as of May 16, 2000, by and between the City of Newport Beach, California, a municipality ( "City"), and Brown Diven & Hessell LLP ( "Counsel "), WITNESSETH IT IS HEREBY AGREED by and between Counsel and City as follows: SECTION 1. Oblientions of Counsel. Under this agreement, Counsel shall perform legal services for and on behalf of City in coimection with the proceedings relating to the formation of an assessment district designated Assessment District No. 79 (the "AD "), and any related bond or other debt issuance by, or for the benefit of, the AD. SECTION 2. Scope of Services. Legal services to be provided by Counsel shall include: A. Attend negotiation sessions and otherwise assist the City staff in the negotiation with utility companies. B. Prepare all resolutions, notices, agreements, bonds, and other papers and documents required in the proceedings. C. Examine the proceedings related to the formation of the AD. D. Appear at all hearings under the proceedings, and attend any other meeting where attendance is requested by the City. E. Review and examine the map showing the boundaries of the AD. F. Review the method and formula utilized by the Assessment Engineer for the apportionment of the special assessment. G. Review the "Report" of the Assessment Engineer. H. Participate with the City's financing team to determine the structure of any bond or similar debt issuance. Assist in the review of those sections of the official statement to be disseminated in connection with the issuance of any series of bonds related to authority and security for the bonds, tax - exemption, legal opinion, litigation, summary of bond indenture, bond purchase agreement or notice of sale and other supporting documentation relating to the offering for sale of any bonds or similar indebtedness. J. Prepare or review any continuing disclosure agreement required under SEC Rule 15c2 -12. K. Consult with any underwriter, rating agency and credit enhancement provider, and their respective legal counsel, participating in the sale of, or security for, any bonds or similar indebtedness. L. Consult with any trustee, fiscal agent or paying agent, and their respective legal counsel, participating in the sale of, or security for, any bonds or similar indebtedness. M. Assist in any ballot proceedings. N. Subject to the completion of the proceedings to Counsel's satisfaction, issue an approving legal opinion attesting to the validity of the proceedings and the issuance of bonds or similar indebtedness, which legal opinion will be addressed to the City and will be delivered by Counsel on the date the bonds are exchanged for their purchase price (the "Closing "); O. Provide any necessary supplemental legal opinions as to the applicability of the registration requirements of federal securities laws and other matters related to the issuance of bonds or similar indebtedness; provided, however, such opinions do not include the rendering of a 10(b)5 opinion regarding any official statement or similar document. Provide advise and instruction to the City and its staff in connection with any of the foregoing. Robert Hessell shall be responsible for the provision of the legal services set forth above. Mr. Hessell may be assisted by other members of the firm upon the approval by City staff. SECTION 3. Oblieations of City. The City shall: A. Furnish to Counsel such maps, records, title searches, filings, reports, certificates and other documents and proceedings, or certified copies thereof, as are necessary or convenient for Counsel to provide Counsel's approving legal opinions. B. Pay Counsel for services rendered pursuant to this agreement as follows: Formation ojAD and Debt Issuance. If the AD is formed and bonds or similar indebtedness are issued by or for the benefit of the AD, Counsel shall be paid a fee for all services provided under this agreement. The fee shall be computed on the principal amount of each series of bonds or similar indebtedness issued as follows: One -half of one percent (0.5 %) of the principal amount up to $5,000,000; plus One - quarter of one percent (0.25 %) of the principal amount from $5,000,001 to $10,000,000; plus One- eighth of one percent (0.125 %) of the principal amount from $10,000,001 to $20,000,000; plus One - sixteenth of one percent (0.0625 %) of the principal amount above $20,000,001. Notwithstanding the foregoing, the minimum fee shall be $25,000. The fee for each series of bonds or similar indebtedness shall be due and payable upon the occurrence of the Closing of the series. 2. If Debt Is Not Issued. In the event that the AD is formed and debt is not issued for any reason, Counsel shall be paid a fee of $5,000 for all services rendered with respect to the formation of the AD. The fee shall be due and payable upon invoice from Counsel which may be transmitted to the City following a determination that debt will not be issued. 3. Costs and Expenses. In addition to the foregoing, all costs and expenses are to be billed to, and payable by, City. Costs and expenses will be billed at cost except the expenses stated below will be billed as follows: Photocopying: $0.15 per page Mileage: IRS Rate - currently $0.31 /mile (unless over one -half hour and billed hourly) Facsimile: $0.25 per page (sending only) Computer Research: Cost, plus 10% Transcript Preparation: Not to exceed $75 per transcript Bond Preparation: Not to exceed $300 per series of bonds Costs and expenses incurred in connection with the proceedings to form the AD shall be due and payable at the time the fee for the services is due and payable and shall be payable solely from the proceeds of the first issuance of bonds or similar indebtedness, collections from the Assessment District, or any combination thereof. Expenses incurred in connection with the issuance of bonds or similar indebtedness shall be due and payable at the time of the Closing of the issue for which such expenses were incurred and shall be payable from the proceeds of the issue. SECTION 4. Limitation of agreement. Counsel's services under this agreement are limited to those expressly set forth in Section 2 above. Among other things, the scope of services does not include: A. Preparing requests for tax rulings from the Internal Revenue Service, or no action letters from the Securities and Exchange Commission. B.. Except as described in Section 2 above, assisting in the preparation or review of an official statement or other disclosure document with respect to any series of bonds, or performing an independent investigation to determine the accuracy, completeness or sufficiency of any such document or rendering advice that the official statement or other disclosure document does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements contained therein, in light of the circumstances under which they were made, not misleading. C. Preparing blue sky or investment surveys with respect to any series of bonds. D. Making an investigation or expressing any view as to the creditworthiness of the bonds. E. Representing the City in Internal Revenue Service examinations or inquiries, or Securities and Exchange Commission investigations. F. After Closing of any series of bonds, providing the City continuing advice concerning any actions necessary to assure that interest paid on the bonds will continue to be excludable from gross income for federal income tax purposes. SECTION 5. Additional Services. Upon written request of the City, Counsel will provide legal services related to certain appurtenant legal matters, including, but not limited to, the following: A. Litigation challenging the validity of (a) the proceedings to form the AD, to authorize the levy of special assessments or to issue bonds or similar indebtedness or (b) the bonds or similar indebtedness. B. Ongoing review and advice regarding the City's compliance with any applicable continuing disclosure agreement. C. Such other services as the City and Counsel should agree. Counsel will perform any of the above services for a fee to be mutually agreed upon before any work is actually performed SECTION 6. Conflicts. Counsel hereby states that Counsel does not represent clients with adverse interests to the City with respect to any matter within the scope of services to be provided under this agreement. City acknowledges that Counsel represents or has represented many public agencies and, occasionally, underwriters and other entities, and City understands the possibility that during the time of this agreement, one or more of Counsel's present or future clients may have transactions with the City. City also understands the possibility that Counsel may be asked to represent, in an unrelated matter, one or more of the entities involved in the matters contemplated by this agreement. Counsel does not believe that such representation, if it occurs, will adversely affect Counsel's ability to represent the City as provided in this agreement, either because the matters will be sufficiently different from the matters contemplated by this agreement so as to make the representations not adverse to Counsel's representation of the City or because the potential for such adversity is remote or minor and outweighed by the consideration that it is unlikely that advice given to the other client will be relevant to any aspect of the matters contemplated by this agreement. Execution of this agreement signifies the City's consent to Counsel's representation of others consistent with the circumstances described in this paragraph. SECTION 7. Termination. This Agreement may be terminated by either party hereto by mailing written notice thereof to the other party. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed on the day and year first hereinabove written. City of Newport Beach Brown Diven & Hessell LLP By: dver 4" _I Robert Hessell, Partner 4