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HomeMy WebLinkAbout13 - Assessment District 82 - Corona del MarMay 8, 2001 CITY COUNCIL AGENDA ITEM NO. 13 TO: Mayor and Members of the City Council FROM: Public Works Department SUBJECT: PROPOSED ASSESSMENT DISTRICT NO. 82 (BOUNDED BY GOLDENROD AVENUE, OCEAN BOULEVARD, HELIOTROPE AVENUE, AND BAYVIEW DRIVE IN CORONA DEL MAR) FOR UNDERGROUNDING UTILITIES RECOMMENDATIONS: 1. Consider adoption of the following resolutions for Proposed Assessment District No. 82: a. RESOLUTION No. 2001- _ MAKING FINDINGS ON A PETITION FOR, ADOPTING A MAP SHOWING THE PROPOSED BOUNDARIES OF, AND MAKING APPOINTMENTS FOR ASSESSMENT DISTRICT NO. 82. b. RESOLUTION No. 2001- _ DECLARING INTENTION TO ORDER THE CONSTRUCTION OF CERTAIN IMPROVEMENTS IN PROPOSED ASSESSMENT DISTRICT NO. 82, 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. c. RESOLUTION No. 2001- GIVING PRELIMINARY APPROVAL TO THE REPORT OF THE ASSESSMENT ENGINEER, SETTING THE TIME AND PLACE FOR A PUBLIC HEARING as June 26, 2001, AND ORDERING THE INTENTION OF ASSESSMENT BALLOT PROCEDURE FOR ASSESSMENT DISTICT NO. 82. 2. Approve the Special Counsel agreement with Robert Hessell. HISTORY: Owners of property located in Proposed Assessment District No. 82 submitted petitions to the City requesting the formation of a special assessment district to underground overhead utilities. In response to petitions submitted by owners representing approximately 80 percent of the assessable property area within Proposed Assessment District No. 82, the City Council appropriated $35,000.00 on January 12, 1998, to facilitate the undergrounding of utilities. $9,000.00 was expended to prepare engineering plans and submit guaranteed prices to underground the utilities. $22,000.00 is being expended by the assessment engineer for preparation of the engineer's report and help processing the assessment district. SUBJECT: UNDERGROUNDING UTILITIES IN PROPOSED ASSESSMENT DISTRICT NO. 82 May 8, 2001 Page 2 DISCUSSION: Proposed Assessment District No. 82 is being formed for the conversion of existing overhead utilities to underground locations. The property owners within the boundary of the proposed assessment district will bear the cost of the improvements and all associated proceedings. The procedure being used to create the assessment district is outlined in the Municipal Improvement Act of 1913. Bonds under the Improvement Bond Act of 1915, with a term of 15 years, will be issued to finance assessments that are not paid in Cash within 30 days after confirmation of the assessment. The total assessment for Proposed Assessment District No. 82 is estimated as follows: ITEM ESTIMATED COST Estimated Cost of Construction: $238,832.21 Estimated Incidental Costs and Expenses: 35,500.00 Estimated Financing (Bond) Costs: 36,500.00 Federal Income Tax Component of Contribution (ITCC) 55.989.41 Estimated Total Cost: $366,821.62 The estimate includes the Federal Income Tax Component of Contribution (ITCC) Tax, which is a betterment tax. However, bonds will not be sold for the ITCC Tax because it is the belief of the City that underground utility districts are undertaken at the request of the community for purposes of community aesthetics and public safety, not for the benefit of particular customers 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 requires 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. The City will sell a second issue of the bonds, if necessary, to pay Edison within 60 days after they notify the City of Newport Beach. The ITCC tax associated with this district is approximately $55,989.41, which the City would be liable for, plus penalties if the IRS should determine the district was not exempt from the tax. The Assistant City Attorney reviewed Edison's request to have the preceding statement included in the assessment district report and felt it was unlikely the City would incur any tax liability. In addition to his or her assessment, each property owner will be responsible for converting his or her service connection to receive underground service. The Bond Reserve will be 5 percent for the subject district. Property owners who pay assessments in Cash will receive a discount, which represents the cost of issuing and servicing bonds. SUBJECT: UNDERGROUNDING UTILITIES IN PROPOSED ASSESSMENT DISTRICT NO. 82 May 8. 2001 Page 3 The following is a tentative schedule for Proposed Assessment District No. 82: • Resolution of Intention May 8, 2001 • Property Owner Information Meeting June 13, 2001 • Public Hearing June 26, 2001 • Public Utilities Commence Work September 17, 2001 • City Notifies Property Owners to Install Service January 2002 Connections • Property Owners Complete Conversions April 2002 • Public Utilities Begin to Remove Overhead May 2002 Structures • Public Utilities Finish Removing Poles and June 2002 Overhead Structures The Assessment Engineer determined there are 26 assessable parcels that benefit equally by the district and they should have equal assessments. The estimated assessment for each parcel is $11,955.09 without the ITCC Tax component and $14,108.52 with the ITCC Tax component. Plans and specifications were prepared by the public utilities companies. Attached is a sketch showing the boundary of the proposed district and the utilities to be undergrounded. A Special Counsel Agreement is necessary in order to retain Special Counsel to provide legal services in connection with processing of the assessment proceedings and bond issuance. The Special Counsel Agreement will retain Robert Hessell to provide these legal services. The fee is approximately, $10,000.00, in accordance with the terms of the agreement. This fee will be paid through the assessment district. Respectfully S ed, Don e Public Wor S Director By: � r-0 . Richard L. Hoffstadtf{3: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 3 RESOLUTION NO.2001- RESOLUTION MAKING FINDINGS ON A PETITION FOR, ADOPTING A MAP SHOWING THE PROPOSED BOUNDARIES OF, AND MAKING APPOINTMENTS FOR ASSESSMENT DISTRICT NO. 82 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. 82 (the "Assessment District ") to provide 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. S 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 Berryman & Henigar is hereby appointed the Assessment Engineer for the Assessment District proceedings. SECTION 8. Robert E. Hessell, attorney at law, 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 8th day of May, 2001, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: City Clerk F:\Users\PBW\Sh ared\Resoiutions\AD82- 13ETITI ON.doc 0 RESOLUTION NO.2001- 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. 82 WHEREAS, this legislative body has instituted proceedings for the formation of a special assessment district designated as Assessment District No. 82 (hereinafter referred to as the "Assessment District") to provide 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 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 constructed, 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 construction 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 real property interests within the Assessment District, as the same existed at the time of the passage of said Resolution of Intention, each of which have been given a separate number upon the diagram, as contained in the Report, is hereby preliminarily approved and adopted; 7 D. The proposed assessment upon the several property interests in the Assessment District, in proportion to the estimated special benefits to be received by such property interests, respectively, from the improvements to be constructed, 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 constructed 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 June 26, 2001 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 property interest 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 opened and 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 8th day of May, 2001, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: City Clerk F:\Users\PBW\Shared\Resolutions\AD82-BALLOT.doc RESOLUTION NO. 2001- RESOLUTION DECLARING INTENTION TO ORDER THE CONSTRUCTION OF CERTAIN IMPROVEMENTS IN PROPOSED ASSESSMENT DISTRICT NO. 82, 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. 82 (hereinafter referred to as the "Assessment District') to provide 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 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; WHEREAS, the assessment proceedings for the Assessment District were initiated by owners of the real property; 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 construction 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 constructed and the manner of the construction are generally described as follows: A. The improvements generally consist of the conversion of existing overhead electrical and communication facilities to underground locations within the area generally known as Beacon Bay and bounded by Golden Rod Avenue, Ocean Boulevard, Heliotrope Avenue, and Bayview Drive, together with appurtenances and appurtenant work thereto, all to serve and specially benefit the properties within Assessment District No. 82. M 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 constructed 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 real property within the Assessment District, and this legislative body hereby makes the expenses of the construction of such improvements chargeable upon the Assessment District, which is described as follows: All real property and other 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 construction of the work and improvements described above, which map is entitled "Proposed Boundaries Assessment District No. 82" 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 Berryman & Henigar (the "Assessment Engineer"), who is hereby directed to make and file a report as required by the Improvement Act, Article MID 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 constructed; B. An estimate of the cost of the construction of the improvements proposed to be constructed, 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 real property and other territory 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 construction of the proposed improvements upon the real property in the Assessment District in proportion to the estimated special benefits to be received by the real property, respectively, from such improvements. Such assessment shall refer to such real property upon such diagram by the respective numbers thereof; E. The description of the improvements proposed to be constructed under these proceedings. When any portion or percentage of the assessable costs and expenses of the construction 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 construction, 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. CONSTRUCTION SECTION 5. Except as may otherwise be provided for in the issuance of the bonds described above, all of the improvements shall be constructed pursuant to the provisions of the Act. P 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. IMPROVEMENTFUND 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 construction 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. RIGHTS -OF -WAY 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 construction of the improvements. 12 NO CITY LIABILITY SECTION 11. This legislative body hereby declares the City will not obligate itself to advance available funds from the City treasury to cure any deficiency which may occur in the bond redemption fund for the Assessment District. 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 and from the administration and registration of assessment bonds and the related bond 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 construction 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 8th day of May, 2001, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: City Clerk F:\ Users \PBW\Shared \Resolutions\AD82 -ISSUE BONDS.doc ly PRELIMINARY ENGINEER'S REPORT FOR UNDERGROUND UTILITY ASSESSMENT DISTRICT NO. 82 CITY OF NEWPORT BEACH COUNTY OF ORANGE, CALIFORNIA Prepared bv: Berryman & Henigar 2001 East First Street Santa Ana, California 92705 April 20, 2001 J City Of Newport Beach - Assessment District No. 82 Preliminary Engineer's Report — April 20, 2001 TABLE OF CONTENTS 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 Debt Limit Valuation .............................................. ..............................9 PART IV Annual Administrative Assessment .................................... .............................14 PART V Boundary Map and Diagram of Assessment District ........... .............................15 PART VI Description of Facilities ....................................................... .............................18 Right -of -Way Certificate ..................................................... .............................19 Certification of Completion of Environmental Proceedings . .............................20 Appendix "A" - Assessment Roll \l "e non projMsl ewponbeachW01-02WdMableEr epWs1417changesengreportad82.doc Berryman & Henigar I City Of Newport Beach - Assessment District No. 82 Preliminary Engineer's Report — April 20, 2001 Page 1 AGENCY: CITY OF NEWPORT BEACH PROJECT: ASSESSMENT DISTRICT No. 82 T0: CITY COUNCIL ENGINEER'S "REPORT" PURSUANT TO THE PROVISIONS OF SECTION 10204 OF THE STREETS AND HIGHWAYS CODE The purpose of this Assessment District is to provide financing to underground power, telephone and cable facilities in the area generally described as "Corona Del Mar, specifically where alleys bounded by Goldenrod Avenue, Ocean Boulevard, Heliotrope Avenue, and Bayview Drive ". The proposed underground utility improvements will provide conversion to a more safe and reliable upgraded utility system and will improve neighborhood aesthetics. The construction of these improvements will conform to existing City of Newport Beach, Southern California Edison, Pacific Bell Telephone Company and Comcast Cable standards. By virtue of such improvements, the proposed improvements will enhance the value of the parcels within the District. Therefore, the proposed improvements are of special and direct benefit to these properties. Pursuant to the provisions of Article XIIID of the State Constitution 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 Assessment District No. 82 (hereinafter referred to as the "Assessment District'), I, K Dennis Klingelhofer, P.E., a Registered Professional Engineer and authorized representative of Berryman & Henigar, 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, and are filed herewith and made a part hereof. Said plans and specifications are on file in the Office of the Superintendent of Streets. PART II This part contains an estimate of the cost of the proposed improvements, including capitalized interest, if any, incidental costs and expenses in connection therewith as set forth herein and attached hereto. PART III This part consists of the following information: %Xnew n4 MJproledslnewpWEee Vy01 -021 d 82Vable BrepwlsW- 1]Nangesengrepw1e 82.dw Berryman & Henigar City Of Newport Beach - Assessment District No. 82 Preliminary Engineer's Report — April 20, 2001 Page 2 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 estimated special benefits to be received by such subdivisions from said improvements, which is set forth upon the assessment roll filed herewith and made a part hereof. B. The total amount, as near as may be determined, of the total principal sum of all unpaid special assessments and special assessments required or proposed to be levied under any completed or pending assessment proceedings, other than that contemplated for the Assessment District, which would require an investigation and report under the "Special Assessments Investigation, Limitation and Majority Protest Act of 1931" against the total area proposed to be assessed. C. The total true value, as near as may be determined, of the parcels of land and the 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 or from the administration and registration of any associated bonds and reserve or other related funds. 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, is 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 DATED this 134k day of API 2001 BERRYA AN & HENIGA K. DENNIS KLINGELH?fER, .E. R.C.E. No. 50255 V ENGINEER OF WORK CITY OF NEWPORT BEACH STATE OF CALIFORNIA MewbegVWojedMnewpon beachVy01 -021ad 82Vable &reponsWA7 Mangeseng report ad 82 AM Berryman & Henigar iz City Of Newport Beach - Assessment District No. 82 Preliminary Engineer's Report — April 20, 2001 Page 3 Preliminary approval by the CITY COUNCIL of the CITY OF NEWPORT BEACH, CALIFORNIA, on the day of 2001. 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 2001. CITY CLERK CITY OF NEWPORT BEACH STATE OF CALIFORNIA Mewben4MprOledsVNewpwMa& Vy01-0 21adMable 3repwtsW- 17dargesergrepotad82.O Berryman & Henigar 19 City Of Newport Beach - Assessment District No. 82 Preliminary Engineer's Report - April 20, 2001 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 Assessment District No. 82, Corona Del Mar, specifically the alleys bounded by Goldenrod Avenue, Ocean Boulevard, Heliotrope Avenue, and Bayview Drive, which the Plans and Specifications 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. The Plans and Specifications for the improvements are on file in the offices of the Superintendent of Streets. Unewbernrnf projedslnewport beadnkfy CI -021ad 82 \table 8repwsM47 changes Ong report ad 82 A= Berryman & Henigar 2t City Of Newport Beach - Assessment District No. 82 Preliminary Engineer's Report - April 20, 2001 Page 5 Part If Cost Estimate CONSTRUCTION COSTS (1) Utility Construction Southern California Edison $ 134,614.74 Pacific Bell $ 82,500.00 Subtotal Construction Costs $ 217,114.74 Contingency (10 %) $ 21,717.47 Total Construction Costs $ 238,832.21 INCIDENTAL EXPENSES Edison Design Engineering $ 5,000.00 Pac Bell Design Engineering $ 4,000.00 Assessment Engineering $ 22,000.00 Contract Inspection $ 1,000.00 City Administration $ 3,000.00 Filing Fees S 500.00 Total Incidental Expenses: $ 35,500.00 Total Construction Costs $ 238,832.21 Subtotal Incidential & Construction $ 274,332.21 FINANCIAL COSTS (1st Bond Issue) Bond Counsel $ 10,000.00 Bond Discount 2.50% $ 8,000.00 Bond Reserve 5.00% $ 16,000.00 Paying Agent $ 2,500.00 Paying Agent Subtotal & Financial Costs $ 36,500.00 DISTRICT FORMATION AMOUNT TO ASSESSMENT $ 310,832.21 =RAL INCOME TAX COMPONENT OF CONTRIBUTION (ITCC) Bond Issue) (2) Federal Tax Component $ 47,489.41 Bond Discount 2.50% $ 1,000.00 Bond Reserve 5.00% $ 3,000.00 Capitalized Interest 6 months 6.00% $ 2,000.00 Paying Agent $ 2,500.00 TOTAL FEDERAL TAX AND FINANCING COSTS $ 55,989.41 TOTAL AMOUNT TO ASSESSMENT (3) $ 366,821.62 (1) Comcast Cable is required to pay for undergrouding through the Franchise Agreement with the City. (2) 2nd Bond Issue for Federal Income Tax Component of Contribution (34 %) will only be issued if the Federal Government requests payment of the tax. 3) Estimated Costs provided by City of Newport Beach. \l ewbentrfWpragedsl ewpanbea MVy01 -02W82Wbla8reponsW -17 Mangos Ong mpanad82Ax Berryman & Henigar 91 City Of Newport Beach - Assessment District No. 82 Preliminary Engineer's Report - April 20, 2001 Page 6 Part III Assessment Roll and Method of Assessment Spread WHEREAS, on the City Council of the CITY OF NEWPORT BEACH, State of California, did, pursuant to the provisions of the 1913 Act "Municipal Improvement Act of 1913 ", being Division 12 of the Streets and Highways Code, of the State of California, adopt its Resolution of Intention No. , for the installation and construction of certain public improvements, together with appurtenances and appurtenant work in connection therewith, in a special assessment district known and designated as Assessment District NO. 82(hereinafter referred to as the "Assessment District' or "District "). 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 b. Specifications 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, K. Dennis Klingelhofer P.E., the authorized representative of BERRYMAN & HENIGAR, pursuant to Article XIIID of the California Constitution and the "Municipal Improvement Act of 1913 ", do hereby submit the following: 1. Pursuant to the provisions of law and the Resolution of Intention, I have assessed the costs and expenses of the works of improvement to be performed in the Assessment District upon the parcels of land in the Assessment District specially benefited thereby in direct proportion and relation to the estimated 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. MmbenVnMproje=s Wpon bear Vy 01 -021aC 82Veble &MponsW47 r anps eng report ad 82.4oc Berryman & Henigar 2C- City Of Newport Beach - Assessment District No. 82 Preliminary Engineer's Report — April 20, 2001 Page 7 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. 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 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. This part shows the proposed assessment of the total estimated costs of the works of improvements, shown in Exhibit 1, to be levied upon each parcel of land within the Assessment District. Assessments have been levied in proportion to the estimated special benefit which each parcel will receive from the construction of the improvements to be financed by the Assessment District based upon the method and formula of assessment as presented herein. A listing of each parcel of land and the current owner of each parcel as shown on the recent equalized tax roll is included in Appendix A. EXHIBIT 1 City of Newport Beach Assessment District No. 82 Total Amount of Assessment Funding Description As Preliminarily Approved As Confirmed Estimated Cost of Construction $ 238,832.21 $ Estimated Incidental Expenses $ 35,500.00 $ Estimated Financial Costs $ 36,500.00 $ Estimated Federal Tax & Financing Costs $ 55,989.41 $ Estimated Total To Assessment $ 366,821.62 $ For particulars as to the individual assessments and their descriptions, reference is made to Appendix "A" attached hereto. \1new�ert4nlWpraleo151newport DeaMUy01�21ad Mable &rep nsN.17 Mangos mg report ad 82.doe Berryman & Henigar 23 City Of Newport Beach - Assessment District No. 82 Preliminary Engineer's Report - April 20, 2001 Page 8 DEBT LIMIT VALUATION A. Estimate Balance to Assessment $ 378,321.62 B. Unpaid Special Assessments* $0.00 Total A & B $ 378,321.62 C. True Value of Parcels" $ 16,048,203.00 D. Average Value to Lien Ratio 42:1 'Unpaid Special Assessments shall consist of the total principal sum of all unpaid special assessments previously levied or proposed to be levied other than the instant proceedings. "True Value of Parcels means the total value of the land and improvements as estimated and shown on the last equalized roll of the County This report does not represent a recommendation of parcel value, economic viability or financial feasibility, as that is not the responsibility of the Engineer's report. CERTIFICATION I, the undersigned Assessment Engineer, do hereby certify that; 1.) the proposed assessment upon any parcel does not exceed one -half (1/2) of the true value of the parcel and 2.) 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, does not exceed one -half (1/2) the total true value of the parcels proposed to be assessed. EXECUTED this day of 2001 BERRYMAN & HEN /G R K DENNIS KLINGELrFER, P R.C.E. No. 50255 VV ENGINEER OF WORK CITY OF NEWPORT BEACH STATE OF CALIFORNIA Onewbert4nMpmIM5lnewportbeachVy01- MadMablearep arts\4- 1]changesengreportad82.d= Berryman & Henigar � City Of Newport Beach - Assessment District No. 82 Preliminary Engineer's Report — April 20, 2001 Page 9 Method of Spread of Assessment 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 estimated special benefit that the properties receive from the works of improvement. In addition, Article XIIID, Section 4 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 requires that publicly owned property, which specially benefit from the improvements be assessed. 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 and direct 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 estimated special benefits received by each parcel within the Assessment District. Ballot tabulation will be made at that time and, if a majority of the ballots submitted, weighted by assessment amount, are in opposition to the Assessment District, then the District must be abandoned. If this is not the case, then the City Council may form the Assessment District and levy the special assessment against the parcels therein. Recognizing the special benefit the properties receive from the removal of overhead utility lines and poles, the property owners submitted a petition, signed by 84% of the property owners of the original twenty -two (22) parcels in the District, to the City of Newport Beach to form and establish an Underground Utility Assessment District. The following sections set forth the methodology used to apportion the costs of the improvements to each parcel. OnewbetlMffiprgectslnewpM beachVy Gl -02%aG82Vable SrepWsW,17 Mange$ en9repg1 ad 82.d= Berryman & Henigar •^ /r City Of Newport Beach - Assessment District No. 82 Preliminary Engineer's Report — April 20, 2001 Page 10 Special Benefit In further making the analysis, it is necessary that the properties receive a special and direct benefit distinguished from general benefits conferred on real property located in the District or to the public at large. The purpose of this Assessment District is to provide the financing to underground existing overhead electrical, telephone, and cable facilities. These facilities are the direct source of service to the properties within the District. There are no main transmission or trunk facilities within the District. The proposed replacement of existing overhead utility facilities (power, telephone and cable facilities) with underground facilities will provide a special benefit to the parcels who will be served by the new distribution facilities as a result of enhanced service reliability and capacity, as well as improved safety. In this District, 100% of the cost allocation for the improvements is special benefit to the parcels within the District and there is no general benefit. By virtue of such benefits, the proposed improvements will provide a higher level of service, increase the desirability 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. Method of Apportionment Based upon the findings described above, the special benefit received by the properties within the boundaries of the District is the conversion from an overhead to an underground utility system resulting in improved safety, reliability, and a higher level of service to all properties serviced. Based on these conditions, it is our conclusion that the improvement benefits all properties in the District. As all properties in the District are zoned residential, it is also our conclusion that the benefit should be distributed equally to each parcel on a per parcel basis. Land Use Classification • All of the buildable parcels within the District are residential. • All of the parcels are zoned R -1 as single family residential. Mewben4nlWprojedsl ewponceaGNy01 -02W824aoledrepwsW -17 Gangesangreportad82.doo Berryman & Henigar ()V City Of Newport Beach - Assessment District No. 82 Pre liminary Engineer's Report — April 20, 2001 Page 11 The assessment for the Assessment District has been spread in direct accordance with the estimated special benefit that each parcel receives from the works of improvements. Below is a table that lists the proposed assessment within the District. Assessment Spread District Formation Assessment without Income Tax Component (1st Bond Issue) District Formation Assessment with Income Tax Component (1st & 2nd Bond Issue) $14,108.52 Annual Assessment 1st Bond Issue (5 %Admin Fee induded)' $1,139.25 a 20 Year bond issue at 6.50% + 5% adm nstration Fee The Assessment in this District has two components. The first component, and issuance of the first series of bonds, is for the District Formation Assessment to underground the utilities. The second component is the Income Tax Component of Contribution (ITCC) and is assessed to cover any tax liability incurred by Southern California Edison as a result of an Internal Revenue Service determination that the utility conversion is a taxable event. If in the future, Southern California Edison is taxed, a second series of bonds will be issued. The Federal Income Tax Contribution Component is predicated on the issuance of a second series of bonds not being issued immediately for investor -owned utility tax liabilities. The total assessment lien on each parcel will be the estimated Total Assessment for District Formation and the Income Tax Component of Contribution. Incidental and Financial Costs have been assessed on a prorata basis relative to total construction costs allocation. For particulars as to the assessment roll, reference is made to in the Appendix A. A detailed itemization of improvement costs may be found in Part II of this report. 1NewbrnWftrogects hewp onbeaUVy01-021aC8211eble& reponsw- 17Chawesengrepwad82.doc Berryman 8 Henigar , !1 City Of Newport Beach - Assessment District No. 82 Preliminary Engineer's Report — April 20, 2001 Page 12 In conclusion, it is my opinion that the assessments for the referenced Assessment District have been spread in direct accordance with the special benefit that each parcel receives from the works of the improvement. DATED: April 20, 2001 Berryman & Heniga� By. Dennis K. Klingelhofe R.C.E. No 50255 Assessment Engineer CITY OF NEWPORT BEACH STATE OF CALIFORNIA \trrewbertW*PrdlectsVNewpon ceachVy 01 -021ad Mtacle 8Me nsW -17 changes eng report ad 82 .doe Berryman & Henigar �-D City Of Newport Beach - Assessment District No. 82 Preliminary Engineer's Report — April 20, 2001 Page 13 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 , 2001. 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 , 2001. 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 , 2001. 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 2001. SUPERINTENDENT OF STREETS CITY OF NEWPORT BEACH STATE OF CALIFORNIA MewDaMM protect me ponEe aNVyDI-0 SaCMable& repons1a 47changesengreponaC82.0ac Berryman & Henigar a�1 City Of Newport Beach - Assessment District No. 82 Preliminary Engineer's Report - April 20, 2001 Page 14 Part IV Annual Administrative Assessment An annual administrative assessment shall be levied on each parcel of land and subdivision of land within the Assessment District to pay for necessary costs and expenses incurred by the City of Newport Beach, and not otherwise reimbursed, resulting from the administration and collection of assessments, or both from the administration or registration of any bonds and reserve or other related funds. The annual administrative assessment is authorized pursuant to the provisions of Section 10204 of the Streets and Highways Code and shall not exceed five percent (5.0 %) of the annual assessment per individual assessment parcel per year. The annual administrative assessment will be collected in the same manner and in the same installments as the assessment levied to pay for the cost of the works of improvement. Onewoen proleds�ewpWGeachVy01-0 BadMahle drepansW47changesengrepwtad82Am Berryman & Henigar City Of Newport Beach - Assessment District No. 82 Preliminary Engineer's Report - April 20, 2001 Page 15 Part V Boundary Map and Diagram of Assessment A reduced copy of the Boundary Map and 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 Appendix A. 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. 0newbeMtrMprpjelslewpoe Eea&Vy 01-021ad Mtabla BrepodsW-17 tlanges eng repon ad 82W Berryman & Henigar City Of Newport Beach - Assessment District No. 82 Preliminary Engineer's Report - April 20, 2001 Page 16 Boundary Map See Next Page ktrewbeMnMpmjersN PWbeaChVy01 -Wad 82Vable BreponsW17changes erg reportad82Am Berryman & Henigar J� SHMI i OF i PROPOSED BOUNDARIES FOR UNDERGROUND UTILITY ASSESSMENT DISTRICT NO. 82 (GOLDENROD, OCEAN, HELIOTROPE, AND BAYVIEW) CITY OF NEWPORT BEACH, COUNTY OF ORANGE STATE OF CALIFORNIA >v �g N ++� A� 1 KROTT MOfYY 1141 M YM SOSOO M PSOPOSO SOJNOMQS M M ASSESSYWI m=T YO SS-C On M Kw t aAN6 =W" M WMM ST X a OYY WAS M OWO M M On LOIxOL M M On M YC=T 9LAW AT • aOAM YMW4 THSMOF. AMO W M DAi a — M. 9. m Alsawnox Ya O" 0.(M• On R a1Y f FWx M 6i1M M" Off O MM On M KWORI a•W SIAM M U• AM M— OAT M— ]OOH li- rM L-- &.°o°Or"df nm w T6�i ROSS •i�r ySlr n N M OFFU M M 6GV WI v M O1Srn OI OIMO[. STAN o< CAL.00dL LEGEND • � � pslwtr epam•Ar - vAVMI LYC • P0.t m a ASIL0IAD O /0.S TO MYAM ASSESSOR PMMLS MOO4 MIN CT WWOMn MA PMIIQAAYS M MIS AMT WY On M PAAl anPUwM n YMS TO M YMS V M OW" Oww" MaSSW MO PMLQ YMS IAEO O ADO[ _ PAM] •M •M SO}t PAOL _ K •sTMON4PJS YMS I,LCOAOS R O4AM CAP,Ir, CNJLOWA J�> City Of Newport Beach - Assessment District No. 82 Preliminary Engineer's Report - April 20, 2001 Page 17 Assessment Diagram See Next Page Unawbentrn projeas�"w beach\/ y0b0Zaa82VabW Ereponsw4]MargesengreportadB2. W Berryman & Henigar ^ II J `f SHEET 1 OF 1 ASSESSMENT DIAGRAM FOR UNDERGROUND UTILITY ASSESSMENT DISTRICT NO. 82 (GOLDENROD, OCEAN, HELIOTROPE, AND BAYVIEW) CITY OF NEWPORT BEACH, COUNTY OF ORANGE STATE OF CALIFORNIA �T N alt JOE' 6.4�LIX d ii: a�TOR Sm rua n.3 AND nvt _—lwQ Ma OF CJFOM" AN ASSSUENT •AS T By THE On Oa OF TxE On 6 xEYP00 STAC Y SIX O CMVaMO/� ON INE PUCEl3 6 lAXO SNONTI p MS ASSCSSY[Mi a•ORAM. SND •SSESSMEXf US IE00 Ox M OAT OF — SWT' LECIND SAO ASSESSMENT OIAERAM uO M AsussMEMT NOS xENE RECORDED N M E!!Ni OF ME BUPEIMrtxO[Nr OF STRUTS OF s•a a" ON ME p3MDr SRRCMr OAT O RDOI. KFENDNEY a MACE O M ASSESSMENT ROE REOOROO — ON ME OTT= Or M S TEAOENT 6 STREETS. YEN M ""T K EW4 � P•RCR W ASSESSMENT IENEO ON M !MOSS OF SMa A3 SNON ON ORES ASSESSMENT E•ORAM. • POE O SF REMOKO O POE O SLMUN OTT mAx. OTT OF kEwmt SCA04 3 O ASSSO'! !ARLES MWRIT NEODROEO M M O 6 02 SVE."TECEM K SREE:3 O THE an O xEWWT•EACN THEE — DAY 7 DWI. ., �.XRMV Or SYiEim O x OR, RO w M OTCE K M a" a Or M OTT K MPIORT BEAOR STATE OF OAMFWpA ON M _ OAT OF — SOO a" CLOK OTT Of K PORT ASSESSOR 0MC1.3 •YUN p EDODY SOI .. YEN IUTiRM1/'RS K ONES UO OvEN90TS OF NS¢S3. REFE "a O UWE TO M NUS OF ONE 01NtQ COUNTY ASSESSOR AND PNROL NAPS MUS RECORDS Of O1•NNQ NWh OL On Of A. Sv4SU.w[OJS J City Of Newport Beach - Assessment District No. 82 Preliminary Engineer's Report — April 20, 2001 Page 18 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 constructed, installed, maintained, repaired or improved. 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. 82. 1. Removal of existing power and telephone poles. 2. Removal of overhead resident service drops. 3. Construction of mainline underground power and telephone conduit, with appurtenant manholes and pullboxes. 4. Construction of service conduit and appurtenances. The improvements will be designed by the Southern California Edison Company, Pacific Bell Telephone Company and Comcast Cable. The City of Newport Beach will inspect the work to ensure conformance to city standards and specifications were applicable. Once completed, the underground facilities will become the property and responsibility of Southern California Edison Company, Pacific Bell Telephone Company and Comcast Cable. Each owner of property located within the Assessment District will be responsible for arranging for and paying for work on his property necessary to connect facilities constructed by the public utilities in the public streets 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. 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. OnewoenVnl projeastnewpon beachVy 01 -02tao MtaWe &repw1sW42 changes eng report ad B2.dM Berryman & Henigar r — �t City Of Newport Beach - Assessment District No. 82 Preliminary Engineer's Report - April 20, 2001 Page 19 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 times 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, the "Municipal Improvements Act of 1913," being Division 12 of the Streets and Highways Code of the State of California, as amended, for the construction of certain public improvements in a special assessment district known and designated as ASSESSMENT DISTRICT NO. 82 (hereinafter referred to as the "Assessment District "). THE UNDERSIGNED STATES AND CERTIFIES AS FOLLOWS: It is acknowledged that the proposed Works of Improvement must be constructed within public rights -of -way, land, or easements owned by or licensed to the CITY OF NEWPORT BEACH, County of Orange, State of California, at the time of the construction of the Works of Improvement, and the undersigned hereby further certifies that all rights -of -way necessary for the Works of Improvements will be obtained and in possession of the City, County, or State prior to the commencement of any construction by the CITY OF NEWPORT BEACH. EXECUTED this day of , 2001, at City of Newport Beach, California. Superintendent Of Streets City Of Newport Beach State Of California M 1l ewbedMWrojedsl ewpWEeaf11 11y01- OZad8Ztable8reportsW -17r angesengreportadB2.E Berryman & Henigar 3� City Of Newport Beach - Assessment District No. 82 Preliminary Engineer's Report — April 20, 2001 Page 20 CERTIFICATION OF COMPLETION OF ENVIRONMENTAL PROCEEDINGS STATE OF CALIFORNIA COUNTY OF ORANGE CITY OF NEWPORT BEACH The undersigned, under penalty of perjury, CERTIFIES as follows: 1. That I am the person who authorized to prepare and process all environmental documentation as needed as it relates to the formation of the special assessment district being formed pursuant to the provisions of the "Municipal Improvement Act of 1913 ", being Division 12 of the Streets and Highways Code of the State of California, said special assessment district known and designated as ASSESSMENT DISTRICT NO. 82 (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 reconstruction) 3. 1 do hereby certify that all environmental evaluation proceedings necessary for the formation of the Assessment District have been completed to my satisfaction, and that no further environmental proceedings are necessary. EXECUTED this day of 2001 at Newport Beach, California. CITY OF NEWPORT BEACH STATE OF CALIFORNIA %newbeAWmprojeclslnewpon EeacWV O -021 d Mable dreponsW -17 oranges eng report ad K AI= Berryman & Henigar ;8 City Of Newport Beach - Assessment District No. 82 Preliminary Engineer's Report - February , 2000 Page 21 APPENDIX "A" ASSESSMENT ROLL \1newEedMNlproleelstnewpod Eea&Vy 01-02tad BZtable BrepodsW -17 Cf aNes eng repod ad 82.d Berryman & Henigar `1 S Q 0 of 0 r e m U O G <M w x 0 O ` C z aQ 0 W y y a z m m Q O H y 2`yQ U H y Q 0 O o v" M O "Nlm �1 01 nlr.o.n •m to loi rir'Nlo 1�•n1 e IN Im ICIINI�•m I�!� 'O N LL -ir• �aOlm!t01t0t01°��.m�;�.Nl�tO im > r 0 NIN:NINNININNNNNINNINNN NININ N NININN N IN INN�NNNNNIN�N N NIN N N N N:NIN NINN NIN!NINNI N 1p E� H o�o�ololoio o�o oio�olo o oioio oiojc offal E < o o oiolc w'N C eleleleie elele eieielel0 a !Qle VIVIV Biel w d Z ' rl .�:�I�i—l� �i� �'�Ie �: r i�l�l�! 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Hessell, attomey -at -law ( "Counsel "), WITNESSETH IT IS HEREBY AGREED by and between Counsel and City as follows: SECTION 1. Oblations of Counsel. Under this agreement, Counsel shall perform legal services for and on behalf of City in connection with the proceedings relating to the formation of an assessment district designated Assessment District No. 82 (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) attending negotiation sessions and otherwise assist the City staff in the negotiation with utility companies; (b) preparing all resolutions, notices, agreements, bonds, and other papers and documents required in the proceedings; (c) examining the proceedings related to the formation of the AD (d) appearing at all hearings under the proceedings, and attend any other meeting where attendance is requested by the City; (e) reviewing and examining the map showing the boundaries of the AD; (i) reviewing the method and formula utilized by the Assessment Engineer for the apportionment of the special assessment; (g) reviewing the "Report" of the Assessment Engineer; (h) participating with the City's financing team to determine the structure of any bond or similar debt issuance; (i) assisting 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; 0) preparing or review any continuing disclosure agreement required under SEC Rule 15c2 -12; (k) consulting 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; (1) consulting 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) assisting in any ballot proceedings; (n) subject to the completion of the proceedings to Counsel's satisfaction, issuing 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) providing 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; (p) providing advise and instruction to the City and its staff in connection with any of the foregoing. 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: Fo»natton ofAD 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 1J 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 $10,000. 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: Mileage: Facsimile: Computer Research: Transcript Preparation Bond Preparation: $0.15 per page IRS Rate - currently $0.31 /mile (unless over one -half hour and billed hourly) $0.25 per page (sending only) Cost, plus 10% Not to exceed $75 per transcript 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) qZ 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) preparation of a preliminary official statement and an a final official statement; (b) litigation challenging the validity of (i) the proceedings to form the AD, to authorize the levy of special assessments or to issue bonds or similar indebtedness or (ii) the bonds or similar indebtedness; (c) ongoing review and advice regarding the City's compliance with any applicable continuing disclosure agreement; (d) such other services as the City and Counsel should agree. Counsel, if requested by the City, will prepare a preliminary official statement and a final official statement for a fee of $10,000; Counsel will perform any other 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 Robert E. Hessell d-�