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HomeMy WebLinkAbout18 - Assessment District 86 - Peninsula PointCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 18 November 12, 2002 TO: Mayor And Members Of The City Council FROM: Public Works Department Patrick Arciniega, Junior Engineer 949 - 644 -3311 parciniega @city.newpo rt- bea ch. ca. us SUBJECT: UNDERGROUNDING UTILITIES IN PROPOSED ASSESSMENT DISTRICT NO. 86 (PENINSULA POINT) ALLEY BOUNDED BY: OCEAN BOULEVARD AND EAST OCEAN FRONT BETWEEN 'G' STREET AND CHANNEL ROAD AND DESIGNATION OF THIS AREA AS AN UNDERGROUND UTILITIES DISTRICT RECOMMENDATIONS: 1. Open public hearing on the formation of Assessment District No. 86. 2. Hear testimony from those who desire to speak. 3. Close the public hearing. 4. Count ballots. 5. If more yes votes than no votes have been submitted, and if it is desired to form the District, take the following actions: a. Adopt Resolution No. 2002 - approving contracts for utility improvements. b. Adopt Resolution No. 2002 - declaring the results of the ballot tabulation, confirming the assessment, ordering the acquisition of improvement, approving the Assessment Engineers Report, and designating the area an Underground Utilities District for Assessment District No. 86 Peninsula Point. 6. If desired, abandon the proceedings. SUBJECT: UNDERGROUNDING UTILITIES IN PROPOSED ASSESSMENT DISTRICT NO. 86 PENINSULA POINT November 12, 2002 Page 2 DISCUSSION: On August 20, 1998, the proposed Assessment District No. 86 was initiated as a result of a petition signed by the owners of over 60 percent of the assessable properties. On September 24, 2002, the City Council accepted a preliminary Engineers Report for proposed Assessment District No. 86, adopted a Resolution of Intention to form the District, and set a public hearing on the Assessment District for November 12, 2002 (see attachment). Action on the District will be taken after the public hearing is closed and the ballots are counted. On October 24, 2002, an informal meeting was held at the City Council Chambers to discuss the proposed district. The procedure being used is the Municipal Improvement Act of 1913. The project will be financed by municipal bonds over a period of fifteen years. Plans and specifications were prepared by the respective public utilities, which will own and operate the underground facilities being paid for by the Assessment District. The proposed District will underground all overhead electrical, telephone, and cable TV lines. However, each property owner will be required to underground his or her individual house services. The cost to convert the house services is not a part of the Assessment District and must be contracted separately. The total cost of the District is $738,430. The estimate for undergrounding includes the Federal Income Tax Component of Contribution (ITCC) Tax, which is betterment tax. However, bonds will not be sold for the ITCC Tax because it is the belief of the City that undergound 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 (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 bond 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 $80,556, which the City would be liable for, plus penalties if the IRS should determine the District was not exempt from the tax. The Assessment Engineer determined there are 135 assessable parcels that are all zoned single family residential; therefore it is our conclusion that the special benefit is distributed equally to each parcel on a per parcel basis. In no case shall an assessment on a parcel U SUBJECT: UNDERGROUNDING UTILITIES IN PROPOSED ASSESSMENT DISTRICT NO. 86 PENINSULA POINT November 12, 2002 Page 2 be less than the equivalent cost for the number of service drops as defined in the Engineer's Report. An exception to this methodology is Assessment No. 117 of the Final Engineer's Report. This parcel was previously assessed 74 percent of the total assessment as part of Assessment District No. 64, based on the determination it would be assessed the balance when the overhead utilities directly adjacent to it were undergrounded with this current district. Therefore, this parcel is assessed for 1 — 0.74 = .26 benefit units, which amounts to $1,274 without ITCC Tax and $1,430 with ITCC Tax. The estimated assessment without the ITCC Tax component is $4,900. The estimated assessment with ITCC Tax is $5,500. The location of the proposed District and overhead facilities to be removed is shown on the attached sketch. Adoption of these Resolutions will also designate this area as an Underground Utilities District per Chapter 15.32 of the Code of Ordinances of the City of Newport Beach. Environmental Review: (Not Applicable) Public Notice: (Not Applicable) Prepared by: Submitted b Patrick L. Arciniega t G. Badum Project Engineer �-Pu4f c Works Director Attachments: Resolution approving contracts for uVrity improvements Resolution declaring results of ballot tabulation City Council Staff Report from September 24, 2002. Engineer's Report Pacific Bell Agreement Edison Agreement CITY OF NEWPORT BEACH RESOLUTION NO. 2002 - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH APPROVING CONTRACTS FOR UTILITY IMPROVEMENTS FOR ASSESSMENT DISTRICT NO. 86 WHEREAS, this City Council has, 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, by adoption of its Resolution of Intention, declared its intention to order the installation of certain works of improvement, together with appurtenances, in a special assessment district designated as ASSESSMENT DISTRICT NO. 86 (hereinafter referred to as the "Assessment District'); WHEREAS, Streets and Highways Code Section 10110 specifies that before ordering any improvements which are to be owned, managed or controlled by another public agency or public utility, an agreement is required setting forth the terms and conditions of the installation, ownership, management and financing of the improvements; WHEREAS, at this time, contracts have been submitted and reviewed pursuant to the authorization of Section 10110 of said Streets and Highways Code; NOW, THEREFORE, it is hereby Determined and Resolved as follows: SECTION 1:That the above recitals are all true and correct. SECTION 2. That the agreements, herewith submitted, relating to the installation of certain improvement facilities that will be under the ownership, management and control of other public agencies or regulated public utilities, are hereby submitted and herewith approved for execution and delivery. The agreements are the following: Southern California Edison - utility agreement Pacific Bell - letter agreement SECTION 3. That immediately upon execution, conformed copies of said contracts shall be transmitted to the offices of the respective public agency or utility company, together with a copy of this Resolution. PASSED, APPROVED, and ADOPTED this 12th day of November 2002. AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: I, LaVonne M. Harkless, City Clerk of the City of Newport Beach, California, do hereby certify that the foregoing Resolution was duly passed, approved, and adopted by the City Council of the City of Newport Beach, California, at a regular meeting of said City Council held on the 12th day of November, 2002. Executed this day of 2002. City Clerk F:\ USERS\ PBIMShared \ResolubonstAD86- U51ity Improvements.doc CITY OF NEWPORT BEACH RESOLUTION NO. 2002 - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DECLARING THE RESULTS OF THE BALLOT TABULATION, CONFIRMING ASSESSMENTS FOR ASSESSMENT DISTRICT NO. 86, ORDERING THE ACQUISITION OF IMPROVEMENTS, APPROVING THE ASSESSMENT ENGINEER'S REPORT, AND DESIGNATING THE AREA AN UNDERGROUND UTILITIES DISTRICT WHEREAS, this City Council has previously adopted its Resolution of Intention and initiated proceedings forthe acquisition of certain public works of improvement, namely, the conversion of certain overhead electrical and communication facilities to underground locations, together with appurtenances and appurtenant work, in a special assessment district designated as Assessment District No. 86 (hereinafter referred to as the "Assessment District ") 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 "Improvement Act "); WHEREAS, this City Council finds that the public necessity, health, safety and welfare requires the removal of poles, overhead wires and associated overhead structures within the area of the Assessment District and the underground installation of wires and facilities for supplying electric, communication or similar or associated service; WHEREAS, the Report, as preliminarily approved, contained all the matters and items called for pursuant to the provisions of the Improvement Act and pursuant to 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 Improvement Act, Article XIIID and the Implementation Act are referred to herein collectively as the "Assessment Lave'), including the following: 1. Plans and specifications of the improvements proposed to be acquired; 2. Estimate of cost of acquisition of the improvements proposed to be acquired; 3. Diagram of Assessment District identifying all parcels that will receive a special benefit conferred upon them from the acquisition of the improvements and upon which an assessment is proposed to be imposed; 4. An assessment proportionate to the special benefit to be conferred upon each parcel to be assessed; 5. A description of the works of improvement proposed to be acquired; 6. An estimate of the time required to complete the conversion. WHEREAS, notices of a public hearing, accompanied by ballot materials, were mailed in the time, form and manner required by the Assessment Law and as evidenced by a certificate on file with the transcript of these proceedings, a full public hearing on the improvements and assessments was held on the date hereof, and at the conclusion ofthe public hearing all ballots submitted pursuant to the Assessment Law were tabulated, all in the manner provided by the Assessment Law; WHEREAS, at this time this City Council determines that the ballots received bythe City in favor of the proposed assessment and weighted as required by the Assessment Law exceeded the ballots received in opposition to the assessment and similarly weighted and, therefore, a majority protest does not exist; WHEREAS, this legislative body now desires to approve, confirm and order the improvements and assessments as set forth in the Assessment Engineer's Report as submitted; NOW, THEREFORE, the City Council of the City of Newport Beach does hereby Determine, Order and Resolve as follows: RECITALS SECTION 1. The above recitals are all true and correct. WRITTEN PROTESTS SECTION 2. All protests and objections of every kind and nature submitted pursuant to the Improvement Act be, and the same hereby are, overruled and denied. BALLOT TABULATION PURSUANT TO ARTICLE XIIID SECTION 3. The ballots submitted pursuant to the Assessment Law in favor of the assessment and weighted as required by the Assessment Law exceed the ballots submitted in opposition to the assessment and similarly weighted, and it is thereby determined that a majority protest pursuant to the Assessment Law does not exist. SPECIAL BENEFITS RECEIVED SECTION 4. Based upon the Assessment Engineers Report and the testimony and other evidence received at the public hearing, it is hereby determined that: A. All assessed properties within the boundaries of the Assessment District receive a special benefit from the works of improvement as proposed to be acquired for said Assessment District; B. The proportionate special benefit derived by each parcel proposed to be assessed has been determined in relationship to the entirely of the cost of the acquisition of the works of improvement; C. No assessment is proposed to be imposed on any parcel that exceeds the reasonable cost of the proportional special benefit to be conferred on such parcel; D. Only special benefits have been assessed and all parcels receiving a special benefit are to be assessed; E. There are no parcels within the proposed Assessment District which are owned or used by any agency as such term is defined in the Assessment Law, the State of California or the United States. PUBLIC INTEREST AND CONVENIENCE SECTION 5. The public interest and convenience require the acquisition of the improvements, and therefore it is hereby ordered that the improvements be acquired, together with appurtenances and appurtenant work in connection therewith, in said Assessment District, as set forth in the Resolution of Intention previously adopted and as set forth in the Assessment Engineer's Report presented and considered at the public hearing. ASSESSMENT ENGINEER'S REPORT SECTION 6. The Assessment Engineer's Report, as now submitted, updated and amended, is hereby approved and said Report shall stand as the report as required by the Assessment Law for all future proceedings for this Assessment District. CONFIRMATION OF ASSESSMENT SECTION 7. The assessments, as now filed in the Assessment Engineer's Report and diagram for the improvements to be acquired, together with appurtenances and appurtenant work in connection therewith, are hereby confirmed. The assessments contained in the Assessment Engineers Report are hereby levied and approved as follows: A. The final assessments to represent the costs and expenses to finance acquisition of the works of improvement, as authorized for these proceedings. B. The annual assessment to pay for administrative costs in an amount not to exceed the maximum annual assessment as set forth in the Assessment Engineer's Report. RECORDATION OF ASSESSMENT SECTION 8. That the City Clerk shall forthwith deliverto the Superintendent of Streets the assessment, together with the diagram attached thereto and made a part thereof, as 3 confirmed, with his certificate of such confirmation attached and the date thereof; and that said Superintendent of Streets shall then immediately record said diagram and assessment in his Office in a suitable book to be kept forthat purpose and attach thereto his certificate of the date of such recording. COUNTY RECORDER NOTICE SECTION 9. Upon confirmation of the assessments and recordation of the assessment roll and diagram, a certified copy of the assessment diagram shall be immediately filed in the Office of the County Recorder. Immediately thereafter, a copy of the notice of assessment shall be recorded in the Office of the County Recorder in the manner and form as set forth by law and specifically Section 3114 of the Streets and Highways Code of the State of California. MAILED NOTICE SECTION 10. That upon recordation of the diagram and assessment, a notice shall be mailed to each owner of real property within the Assessment District at his last known address, as said address appears on the last equalized tax rolls of the County, said notice to set forth a statement containing a designation of the property assessed, as well as the amount of the final confirmed assessment, and further indicating that bonds will be issued pursuant to the "Improvement Bond Act of 1915 ". PUBLICATION SECTION 11. That notice shall also be given by publication in the designated legal newspaper, said notice setting forth the amount of the final assessment and indicating that said assessment is now due and payable, and further indicating that if said assessment is not paid within the allowed thirty (30) day cash collection period, bonds shall be issued as authorized by law. ASSESSMENT COLLECTION SECTION 12. The County Auditor is hereby authorized and directed, in accordance with the provisions of Section 8682 of the Streets and Highways Code of the State of California, to enter into his assessment roll on which property taxes will next become due, opposite each lot or parcel of land affected, in a space marked "public improvement assessment' or by other suitable designation, the next and several installments of such assessment coming due during the ensuing fiscal year covered by the assessment roll and that said entry then shall be made each year during the life of the bonds forthe proceedings forthe above - referenced Assessment District. This authorization is continual until all assessment obligations have been discharged and the bonds terminated. As an alternate, and when determined to be in the best interests for bondholders of the Assessment District, this legislative body may, by Resolution, designate an official other than the County Tax Collector and /or other agent, to collect and maintain records of the la collection of the assessments, Including a procedure other than the normal property tax collection procedure. In accordance with the provisions of Section 8685 of the Streets and Highways Code, if any lot or parcel of land affected by any assessment is not separately assessed on the tax roll so that the installment of the assessment to be collected can be conveniently entered thereon, then the Auditor shall enter on the roll a description of the lot or parcel affected, with the name of the owners, if known, but otherwise the owners may be described as "unknown owners ", and extend the proper installment opposite the same. ASSESSMENT VERIFICATION STATEMENT SECTION 13. The County Auditor is directed, within 90 days after any special assessment installment becomes delinquent, to render and submit a detailed report showing the amounts of the installments, interest, penalties and percentages so collected, for the preceding term and installment date, and from what property collected, and further identify any properties which are delinquent and the amount and length of time for said delinquency, and further set forth a statement of percentages retained forthe expenses of making such collections. This direction is specifically made pursuant to the authorization of Section 8683 of the Streets and Highways Code of the State of California. ASSESSMENT DISTRICT FUNDS SECTION 14. The Treasurer is hereby authorized at this time, if not previously done, to establish the following funds as necessary for the payment of costs and expenses and administration of the proceedings for this Assessment District: A. Improvement Fund: All monies received from cash collections, proceeds from the sale of bonds, and applicable contributions shall be placed into the Improvement Fund. B. Reserve Fund: All monies as designated to assist in the payment of delinquencies shall be placed into the Reserve Fund. C. Redemption Fund: All monies received from the payment of assessments shall be placed in the Redemption Fund. For particulars as to the administration and handling of the Funds, the specific terms and conditions shall be set forth in a Bond Indenture to be approved by the subsequent adoption of a Resolution Authorizing the Issuance of Bonds. UNDERGROUND UTILITIES DISTRICT DESIGNATION SECTION 15. The Assessment District area is hereby designated an underground utilities district pursuant to Chapter 15.32 of the Code of Ordinances of the City of Newport Beach. A description of the area included within the underground utilities district is contained in the Assessment Engineer's Report and incorporated herein by this reference. PASSED, APPROVED and ADOPTED this 12th day of November 2002. AYES: NOES: ABSENT: ABSTAIN: Mayor I, LaVonne M. Harkless, City Clerk of the City of Newport Beach, California, do hereby certify that the foregoing Resolution was duly passed, approved, and adopted by the City Council of the City of Newport Beach, California, at a regular meeting of said City Council held on the 12th day of November 2002. Executed this day of 2002. ATTEST: City Clerk F:\ USERS \PBW1Shared \ResolutionstAD86 - Ballot Tabulabon.doc Pq TO: Mayor and Members of the City Council FROM: Public Works Department September 24, 2002 CITY COUNCIL AGENDA ITEM NO. 11 SUBJECT: PROPOSED ASSESSMENT DISTRICT NO. 86 (AREA BOUNDED BY OCEAN BOULEVARD, OCEANFRONT BOULEVARD, "G" STREET, AND CHANNEL ROAD AND THE PUBLIC BEACH) FOR UNDERGROUNDING UTILITIES RECOMMENDATIONS: 1. Consider adoption of the following Resolutions for Proposed Assessment District No. 86: a. RESOLUTION No. 2002- &t MAKING FINDINGS ON A PETITION FOR, ADOPTING A MAP SHOWING THE PROPOSED BOUNDARIES OF, AND MAKING APPOINTMENTS FOR ASSESSMENT DISTRICT NO. 86. b. RESOLUTION No. 2002 - 672- DECLARING INTENTION TO ORDER THE CONSTRUCTION OF CERTAIN IMPROVEMENTS IN PROPOSED ASSESSMENT DISTRICT NO. 86, 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. 2002- e3 GIVING PRELIMINARY APPROVAL TO THE REPORT OF THE ASSESSMENT ENGINEER, SETTING THE TIME AND PLACE FOR A PUBLIC HEARING AS NOVEMBER 12, 2002, AND ORDERING THE INTENTION OF ASSESSMENT BALLOT PROCEDURE FOR ASSESSMENT DISTICT NO. 86. 2. Approve the Special Counsel agreement with Robert Hesse[[. HISTORY: Owners of property located in Proposed Assessment District No. 86 submitted petitions to the City requesting the formation of a special assessment district to underground overhead utilities. SUBJECT: UNDERGROUNDING UTILITIES IN PROPOSED ASSESSMENT DISTRICT NU. 86 (ALLEY BOUNDED BY OCEAN BOULEVARD, OCEANFRONT BOULEVARD, CHANNEL ROAD AND THE PUBLIC BEACH) September 24, 2002 Page 3 The ITCC tax associated with this district is approximately $80,556.00, 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 the assessment, each property owner will be responsible for converting their 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. The following is a tentative schedule for Proposed Assessment District No. 86: • Resolution of Intention • Property Owner Information Meeting • Public Hearing • Public Utilities Commence Work • City Notifies Property Owners to Install Service Connections • Property Owners Complete Conversions • Public Utilities Begin to Remove Overhead Structures • Public Utilities Finish Removing Poles and Overhead Structures September 24, 2002 October 24, 2002 November 12, 2002 January 2003 April 2003 August 2003 October 2003 December 2003 The Assessment Engineer determined there are 135 assessable parcels that are all zoned single family residential; therefore it is our conclusion that the special benefit is distributed equally to each parcel on a per parcel basis. In no case shall an assessment on a parcel be less than the equivalent cost for the number of service drops as defined in the Engineer's Report. An exception to this methodology is Assessment No. 117. This parcel was previously assessed 74 percent of the total assessment as part of Assessment District No. 64, 3 a oa IP a _ 5gg h9 Igl oo g g i&D ' x U ¢ HpNNE� - - m 1333 M0�38 3NIlK)iVW 133a1S I w J Z O < yg m O yl m LLJ W V U Q Z m a m a co ^ 'Co 0 R Of LL V1ZJ 3 ^ W_ y W ¢UZ 00 _ o = U D N U :E9 03a1S I ARUS n < co _ LL HF mo - 0 �w WW �Q V) m d U) } w o p W m z x N a W o ° _ u m Q W O U Q W U m J Q _ m S Lf) Z C) Z W R 13311S 3 ^ a iHO18 3AO8V 3NQlDiVIN Q* ¢ Q ^ ce mo ¢ r . m ^ 133a1S g Final Engineer's Report for Underground Utility Assessment District No. 86 Prepared under the provisions of the Municipal Improvement Act of 1913 For the CITY OF NEWPORT BEACH Orange County, California Prepared by: M MHarris & Associates October 23, 2002 City of Newport Beach October 23, 2002 Underground Utility Assessment District No. 86 Final Engineer's Report TABLE OF CONTENTS Page Introduction and Certifications ............................................................. ............................... 1 PART I Plans and Specifications ..................................................... ..............................4 PARTII Cost Estimates .................................................................... ............................... 5 PART III Assessment Rolland Method of Assessment Spread ....... ..............................6 Table 1 —Assessment Roll ................................................... ............................... 8 DebtLimit Valuation ......................................................... ............................... 1 1 Exhibit 1 — Method and Formula of Assessment Spread ... ............................... 12 PART IV Annual Administrative Assessment ................................ ............................... 16 PART V Boundary Map and Diagram of Assessment District ... ............................... 17 PART VI Description of Facilities ..................................................... .............................20 Right -of -Way Certificate ................................................... ............................... 21 Certification of Completion of Environmental Proceedings ............................. 22 Q.\Ntwpo Beach\AD864tpoM\fn1 Orptl.doc B Harris & Associates i Ir City of Newport Beach Underground Utility Assessment District No. 86 Final Engineer's Report AGENCY: CITY OF NEWPORT BEACH PROJECT: ASSESSMENT DISTRICT NO. 86 TO: CITY COUNCIL ENGINEER'S "REPORT" PURSUANT TO THE PROVISIONS OF SECTIONS 2961 AND 10204 OF THE STREETS AND HIGHWAYS CODE October 23, 2002 1 The purposes of this Assessment District is to provide financing to underground power, telephone and cable facilities in the area generally described as Balboa Peninsula, specifically the area bounded by "G" Street, Ocean Boulevard, Channel Road and the public beach. 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 Adelphia Cable standards. By virtue of such improvements, the proposed improvements are of special and direct benefit to these properties. Pursuant to the provisions of Article XIIID of the State Constitution, Part 7.5 of the "Special Assessment Investigation, Limitation and Majority Protest Act of 1931 ", being Division 4 of the Streets and Highways Code of the State of California, and the "Municipal Improvement Act of 1913 ", being Division 12 of said Code, and the Resolution of Intention, adopted by the City Council of the CITY OF NEWPORT BEACH, State of California, in connection with the proceedings for Assessment District No. 86 (hereinafter referred to as the "Assessment District "), I, Joan E. Cox, P.E., a Registered Professional Engineer and authorized representative of Harris & Associates, the duly appointed Engineer of Work, herewith submits the "Report" for the Assessment District, consisting of six (6) parts as stated below. PART This part contains the plans and specifications which describe the general nature, location and extent for the proposed improvements to be constructed, and are filed herewith and made a part hereof. Said plans and specifications are on file in the Office of the Superintendent of Streets. PART H 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: A. A proposed assessment of the total amount of the costs and expenses of the proposed improvements upon the several subdivisions of land within the Assessment District, in proportion to the special benefits to be received by such subdivisions from said improvements, which is set forth upon the assessment roll filed herewith and made a part hereof. M Q:\Newport Beach\AD86Vepons\fnl 13}ptl.doc Harris & Associates City of Newport Beach Underground Utility Assessment District No. 86 Final Engineer's Report October 23, 2002 Page 2 B. The total amount, as near as may be determined, of the total principal sum of all unpaid special assessments and special assessments required or proposed to be levied under any completed or pending assessment proceedings, other than that contemplated for the Assessment District, which would require an investigation and report under the "Special Assessment Investigation, Limitation and Majority Protest Act of 1931" against the total area proposed to be assessed. C. The total true value, determined from the latest Assessor's roll, of the parcels of land and improvements which are proposed to be assessed. PART IV This part contains the proposed maximum annual administrative assessment to be levied upon each subdivision or parcel of land within the Assessment District to pay the costs incurred by the CITY OF NEWPORT BEACH, and not otherwise reimbursed, resulting from the administration and collection of assessments, from the administration and registration of any associated bonds and reserve or other related funds, or both. rT.V614WT This part contains a map showing the boundaries of the Assessment District, and a diagram showing the Assessment District, the boundaries and the dimensions of the subdivisions of land within said Assessment District, as the same existed at the time of the passage of the Resolution of Intention. The Boundary Map and Assessment Diagram are filed herewith and made a part hereof, and part of the assessment. PART VI This part shall consist of the following information: A. Description of facilities B. Right -of -Way Certificate C. Environmental Certificate This report is submitted on October 23, 2002. HARRIS & ASSOCIATES JOAN OX, P.E. R.C.E. No. 41965 ENGINEER OF WORK CITY OF NEWPORT BEACH STATE OF CALIFORNIA Q:VJewpo BeachWD864eports\fn1 131ptl.doc Harris & Associates City of Newport Beach Underground Utitity Assessment District No. 86 Final Engineers Report October 23, 2002 Preliminary approval by the CITY COUNCIL of the CITY OF NEWPORT BEACH, CALIFORNIA. on the 24 day of September , 2002. 06. ., r MPUT� 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 , 2002. CITY CLERK CITY OF NEWPORT BEACH STATE OF CALIFORNIA Q:Wewpon BeachWD86,reportsVnl Urptl.doc lllfl Harris & Associates City of Newport Beach October 23, 2002 Underground Utility Assessment District No. 86 Final Engineer's Report Page 4 Part I Plans and Specifications The plans and specifications to construct the utility undergrounding improvements, and any ancillary improvements thereof, for the area generally described as Assessment District No. 86, Balboa Peninsula, specifically the area bounded by "G" Street, Ocean Boulevard, Channel Road and the public beach, 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. Said Plans and Specifications for the improvements are on file in the office of the Superintendent of Streets. Q:VJewpw Beach\AD86\reports\fnl 13rptl.doc Harris & Associates City of Newport Beach October 23, 2002 Underground Utility Assessment District No. 86 Final Engineer's Report Page 5 CONSTRUCTION COSTS Utility Construction' Southern California Edison Pacific Bell Contingency (10 %) INCIDENTAL EXPENSES Edison Design Engineering Pacific Bell Design Engineering Assessment Engineering Contract Inspection City Administration Filing Fees Bond Council Incidental Contingencies Part II Cost Estimate Estimated Costs Preliminary Confirmed $209,082 $209,082 $224,700 $224,700 Subtotal Construction Costs: $433,782 $433,782 $43,378 $43,378 Total Construction Costs: $477,160 $477,160 $15,000 $12,091 $26,000 $2,500 $5,000 $1,000 $15,000 $3,623 Total Incidental Expenses: $80,214 Total Construction and Incidental Expenses: $557,374 FINANCIAL COSTS (1 st Bond Issue) Underwriter's Discount 2.50% $16,000 Bond Reserve 5.00% $33,000 Funded Interest @ 12 months @ 6.00% $39,000 Paying Agent $2,500 Bond Printing, Registration and Servicing $10,000 Total Financial Costs: $100,500 $15,000 $12,091 $26,000 $2,500 $5,000 $1,000 $15,000 $3,623 $80,214 $557,374 $16,000 $33,000 $39,000 $2,500 $10,000 $100,500 DISTRICT FORMATION AMOUNT TO ASSESSMENT: $657,874 $657,874 FEDERAL INCOME TAX COMPONENT OF CONTRIBUTION (ITCC) (2nd Bond Issue) .. FINANCIAL COSTS (2nd Bond Issue) Federal Tax Component $60,502 $60,502 Underwriter's Discount 2.50% $2,000 $2,000 Bond Reserve 5.00% $4,000 $4,000 Funded Interest @ 12 months @ 6.00% $5,000 $5,000 Paying Agent $2,500 $2,500 Incidental Contingencies $6,554 $6,554 TOTAL FEDERAL TAX AND FINANCING COSTS: $80,556 $80,556 TOTAL AMOUNT TO ASSESSMENT: $738,430 $738,430 Adelphia Cable is required to pay for undergrounding through the Franchise Agreement with the City. " 2nd Bond Issue for Federal Income Tax Component of Contribution (34 %) will only be issured if the Federal Government assesses the tax. Q:Wewpon BeachWA86VeponsVn1 13rprl.doc Harris & Associates City of Newport Beach October 23, 2002 Underground Utility Assessment District No. 86 Final Engineer's Report Page 6 Part III Assessment Roll and Method of Assessment Spread WHEREAS, on September 24, 2002 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. 2002 -63, 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. 86 (hereinafter referred to as the "Assessment District "); and WHEREAS, said Resolution of Intention, as required by law, did direct the Engineer of Work to make and file a 'Report", consisting of the following as required by Section 10204 of the Act: a. Plans 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, Joan E. Cox, the authorized representative of HARRIS & ASSOCIATES, pursuant to Article XIIID of the California Constitution and the "Municipal Improvement Act of 1913 ", do hereby submit the following: Pursuant to the provisions of law and the Resolution of Intention, I have assessed the costs and expenses of the works of improvement to be performed in the Assessment District upon the parcels of land in the Assessment District specially benefited thereby in direct proportion and relation to the special benefits to be received by each of said parcels. For particulars as to the identification of said parcels, reference is made to the Assessment Diagram, a copy of which is attached hereto and incorporated herein. 2. As required by law, a Diagram is hereto attached, showing the Assessment District, as well as the boundaries and dimensions of the respective parcels and subdivisions of land within said District as the same existed at the time of the passage of said Resolution of Intention, each of which subdivisions of land or parcels or lots respectively have been given a separate number upon said Diagram and in said Assessment Roll. lei QNewport BmcMAD86\reports\fn1 U pti.doc Harris &Associates City of Newport Beach October 23, 2002 Underground Utility Assessment Oistrict No. 86 Final Engineer's Report Page 7 3. The subdivisions and parcels of land the numbers therein as shown on the respective Assessment Diagram as attached hereto correspond with the numbers as appearing on the Assessment Roll as contained herein. 4. NOTICE IS HEREBY GIVEN that bonds will be issued in accordance with Division 10 of the Streets and Highways Code of the State of California (the "Improvement Bond Act of 1915 "), to represent all unpaid assessments, which bonds shall be issued not to exceed the legal maximum term as authorized by law, THIRTY -NINE (39) YEARS from the 2nd day of September next succeeding twelve (12) months from their date. Said bonds shall bear interest at a rate not to exceed the current legal maximum rate of 12% per annum. 5. By virtue of the authority contained in said "Municipal Improvement Act of 1913 ", and by further direction and order of the legislative body, I hereby recommend the following Assessment to cover the costs and expenses of the works of improvement for the Assessment District based on the costs and expenses as set forth below: For particulars as to the individual assessments and their descriptions, reference is made to Table I (Assessment Roll) attached hereto. 6. The Method of Spread of Assessment is as set forth in the exhibit identified as Part III (Exhibit 1), which is attached hereto, referenced and so incorporated. Q:Wewport Beach1AD86kepo[ Vhf 13cptl.doc Harris & Associates As Preliminarily Approved As Confirmed Estimated Cost of Construction: $477,160 $477,160 Estimated Incidental Expenses: $80,214 $80,214 Estimated Financial Costs: $100,500 $100,500 Estimated Federal Tax & Financing Costs: $80,556 $80,556 Estimated Total to Assessment: $738,430 $738,430 For particulars as to the individual assessments and their descriptions, reference is made to Table I (Assessment Roll) attached hereto. 6. The Method of Spread of Assessment is as set forth in the exhibit identified as Part III (Exhibit 1), which is attached hereto, referenced and so incorporated. Q:Wewport Beach1AD86kepo[ Vhf 13cptl.doc Harris & Associates City of Newport Beach October 23, 2002 Underground Utility Assessment District No. 86 Final Engineer's Report Page 8 Table 1 Assessment Roll Benefit Preliminary Preliminary Confirmed Confirmed Assessor's Total Units Dist For- Total Asmt Dist. For- Total Asmt Value Asmt Parcel Assessed Existing per mation (1st (1st & 2nd mation (1st (1st & 2nd to Lien Q:VJewpom Beach\AD86\reports\fnl 13tpt1 AM Harris & Associates a4 City of Newport Beach 048 212 25 960,568 October 23, 2002 Underground Utility Assessment District No. 86 ,900.00 Final Engineer's Report $4,900.00 Page 9 $5,500.00 175 60 04821226 Benefit Preliminary Preliminary Confirmed Confirmed Assessor's Total Units Dist For- Total Asmt Dist For- Total Asmt Value Asmt Parcel Assessed Existing per mation(1st (1st &2nd mation(1st (1st &2nd to Lien 59 048 212 25 960,568 $0 1 ,900.00 $5,500.00 $4,900.00 $5,500.00 175 60 04821226 47,420 $0 1 ,900.00 5,500.00 $4,900.00 $5,500.00 81 61 048 212 22 $2,213,260 $0 1 $4,900.00 $5,500.00 $4,900.00 5,500.00 402 2 048 21233 $1,841,223 —U-1 $4,900.00 $5,500.00 $4,900.00 $5,500.00 335 63 048 21234 $2,493,838 $0 1 $4,900.00 $5,500.00 $4,900.00 5,500.00 453 Q:\Newport BeachW,D86keportsVnl 13rptl.doc Harris &Associates City of Newport Beach Underground Utility Assessment District No, 86 Final Enaineees Reoort October 23, 2002 10 Benefit Preliminary Preliminary * Confirmed Confirmed Assessors Total Units Dist For- Total Asmt Dist For- Total Asmt Value Asmt Parcel Assessed Existing per mation (1st (1st & 2nd mation (1st (1st & 2nd to Lien Q:VJewport BeachWD86Veports\fiI 13iptl.doc R Harris & Associates 9fr City of Newport Beach October 23, 2002 Underground Utility Assessment District No. 86 Final Engineer's Report Page 11 Table 2 Debt Limit Valuation A. ESTIMATED BALANCE TO ASSESSMENT $738,430 B. UNPAID SPECIAL ASSESSMENTS $7,091 TOTAL A & B $745,521 C. TRUE VALUE OF PARCELS $118,848,200 ** AVERAGE VALUE TO LIEN RATIO 159: * Unpaid Special Assessments shall consist of the total principal sum of all unpaid special assessments previously levied or proposed to be levied other than in the instant proceedings. ** True Value of Parcels means the total value of the land and improvements as estimated and shown on the last equalized roll of the County. This report does not represent a recommendation of parcel value, economic viability or financial feasibility, as that is not the responsibility of the Assessment Engineer. CERTIFICATION I, the undersigned Assessment Engineer, do hereby certify that the total amount of the principal sum of the special assessments proposed to be levied, together with the principal amount of previously levied special assessments, as set forth above, do not exceed one -half (112) the total true value of the parcels proposed to be assessed. EXECUTED on October 23, 2002. HARRIS & ASSOCIATES JOAN E.COX, P.E. R.C.E. No. 41965 ASSESSMENT ENGINEER CITY OF NEWPORT BEACH COUNTY OF ORANGE, STATE OF CALIFORNIA 0 Q:VJewpon Beach41D864epoM \ fn1 Urptl.doc Harris & Associates City of Newport Beach October 23, 2002 Underground Utility Assessment District No. 86 Final Engineer's Report Page 12 Exhibit 1 Method and Formula of Assessment Spread Since the improvements are to be funded by the levying of assessments, the "Municipal Improvement Act of 1913" and Article XIIID of the State Constitution require that assessments must be based on the special benefit that the properties receive from the works of improvement. In addition, Section 4 of Article XIIID of the State Constitution requires that a parcel's assessment may not exceed the reasonable cost of the proportional special benefit conferred on that parcel. Section 4 provides that only special benefits are assessable and the local agency levying the assessment must separate the general benefits from the special benefits. It also provides that parcels within a district that are owned or used by any agency, the State of California, or the United States shall not be exempt from assessment unless the agency can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit. Neither the Act nor the State Constitution specifies the method or formula that should be used to apportion the costs to properties in any special assessment district proceedings. The responsibility for recommending an apportionment of the costs to properties which specially benefit from the improvements rests with the Assessment Engineer, who is appointed for the purpose of making an analysis of the facts and determining the correct apportionment of the assessment obligation. In order to apportion the assessments to each parcel in direct proportion with the special benefit which it will receive from the improvements, an analysis has been completed and is used as the basis for apportioning costs to each property within the Assessment District. Based upon an analysis of the special benefit to be received by each parcel from the construction of the works of improvement, the Assessment Engineer recommends the apportionment of costs as outlined below. The final authority and action rests with the City Council after hearing all testimony and evidence presented at a public hearing, and tabulating the assessment ballots previously mailed to all record owners of property within the Assessment District. Upon the conclusion of the public hearing, the City Council must make the final determination whether or not the assessment spread has been made in direct proportion to the special benefits received by each parcel within the Assessment District. Ballot tabulation will be done at that time and, if a majority of the ballots weighted by assessment amount are not in opposition to the Assessment District, the City Council may form the Assessment District. The following sections set forth the methodology used to apportion the costs of the improvements to each parcel. Special Benefit In further making the analysis, it is necessary that the properties receive a special benefit distinguished from general benefits conferred on real property located in the District or to the public at large. 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 Assessment District. There are no main transmission or trunk facilities with in the Assessment 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 Q.\Newpo BeachWD86VeportsWn113tptl.doc Harris & Associates .10 City of Newport Beach Underground Utility Assessment District No. 86 Final Enoineer's Report October 23, 2002 13 by the new distribution facilities as a result of enhanced service, reliability and capacity, as well as improved safety. Removal of the existing wood poles and the overhead wires will also aesthetically enhance all parcels that are directly adjacent to these facilities. In this Assessment District, 100% of the cost allocation for the improvements is special benefit to the parcels within the Assessment District and there is no general benefit. By virtue of such special benefits, the proposed improvements will provide a higher level of service, increase the desirability of the properties and will specifically enhance the values of the properties within the Assessment District. Therefore, the proposed improvements are of direct and special benefit to these properties. Method of Apportionment Based upon the findings described above, the special benefit received by the properties within the boundaries of the Assessment District is the conversion from an overhead to an underground utility system resulting in improved safety, reliability, a higher level of service to all properties that will take service from the new facilities and improved aesthetics to the adjacent properties. Based on these conditions, it is our conclusion that the improvements specially benefit all properties in the Assessment District. As all properties in the Assessment District are zoned single family residential, it is also our conclusion that the special benefit is distributed equally to each parcel on a per parcel basis. Therefore, one benefit unit is assigned to each parcel within this assessment district. An exception to this is Assessment No. 117 (APN 048 - 282 -19). This parcel is also a part of the previously established Assessment District No. 64 and was previously assessed 74% of the total assessment amount, based on a determination that it would be assessed the balance when the overhead utilities directly adjacent to it were underground with this current district. Therefore, this parcel is assessed for I — 0.74 = 0.26 benefit units. Incidental Expenses and Bond Costs have been assessed to the entire Assessment District on a prorata basis relative to the construction cost allocations. The Total Assessment in this Assessment 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 total assessment lien on each parcel will be the estimated Total Assessment for District Formation plus the ITCC. For particulars to the Assessment Roll, reference is made to Table I. 11 QANewpon BeachWD86heporCsVn113rptl.doc Harris & Associates City of Newport Beach October 23, 2002 Underground Utility Assessment District No. 86 Final Engineers Report Page 14 In conclusion, it is my opinion that the assessments for the referenced Assessment District have been spread in direct accordance with the special benefits that each parcel receives from the works of improvement. DATED: October 23, 2002 HARRIS & ASSOCIATES QROFESSrpN C0 <( �� yc / 'v COX, P.E. m R.C.E. No. 41965 NO. 41965 a ASSESSMENT ENGINEER KP. 3131104 ,r CITY OF NEWPORT BEACH clvl" o��P ORANGE COUNTY, O cnVF STATE OF CALIFORNIA i1 QANewport BeachWD86Veports\fn113rptl.doc Harris & Associates City of Newport Beach October 23, 2002 Underground Utility Assessment District No. 86 Final Engineer's Report Page 15 I, Lcuol I. 13goyio , 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 Z? day of 4G E , 2002. WWV CITY CLERK �£X �� CITY OF NEWPORT BEACH o m STATE OF CALIFORNIA � i 3 ��F00.N�� I, k-ILA l I. 6 0V W W , 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 24 day of September , 2002. I, a- M"M _Q W wy'- WVTJ CITY CLERK CITY OF NEWPORT BEACH STATE OF CALIFORNIA a. C�[rFO0.N� 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 _ , 2002. CITY CLERK CITY OF NEWPORT BEACH STATE OF CALIFORNIA I, Stephen G. Badum, 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 , 2002. SUPERINTENDENT OF STREETS CITY OF NEWPORT BEACH STATE OF CALIFORNIA t! ii Q:\Newpm Beach41D86Veports\fn113rptl.dm Harris & Associates City of Newport Beach October 23, 2002 Underground Utility Assessment District No. 86 Final Engineer's Report Page 16 Part IV Annual Administrative Assessment A proposed maximum annual administrative assessment shall be levied on each parcel of land and subdivision of land within the Assessment District to pay for necessary costs and expenses incurred by the CITY OF NEWPORT BEACH, and not otherwise reimbursed, resulting from the administration and collection of assessments, from the administration or registration of any bonds and reserve or other related funds, or both. The maximum assessment is authorized pursuant to the provisions of Section 10204(I) of the Streets and Highways Code and shall not exceed fifty dollars ($50) per parcel per year, subject to an annual increase based on the Consumer Price Index (CPI), during the preceding year ending in January, for all Urban Consumers in the Orange, Riverside, and Orange County areas. The exact amount of the administration charge will be established each year by the Superintendent of Streets. The annual administrative assessment will be collected in the same manner and in the same installments as the assessment levied to pay for the cost of the works of improvement. Q:Wewpm De chWD86VepcM\fn1 13rptl.dm Harris & Associates .Z City of Newport Beach October 23, 2002 Underground Utility Assessment District No. 86 Final Engineer's Report Page 17 Part V Boundary Map and Diagram of Assessment A reduced copy of the Boundary Map and Assessment Diagram are attached hereto. Full -sized copies of the Boundary Map and Assessment Diagram are on file in the Office of the City Clerk, of the City of Newport Beach. As required by the Act, the Assessment Diagram shows the exterior boundaries of the assessment district and the assessment number assigned to each parcel of land corresponding to its number as it appears in the Assessment Roll contained in Part III Table 1. The Assessor's parcel number is also shown for each parcel as they existed at the time of the passage of the Resolution of Intention and reference is hereby made to the Assessors Parcel Maps of the County of Orange for the boundaries and dimensions of each parcel of land. Q:Newport BeachWD86\mports\fnl 13rptl.doc Harris &Associates © ! ] \ « ® §5 \! \) Ur / (���� g «2 Al §� / ;!| | IS \ § §) ��. |I 3 � \ - / 22M 38 +nwsm ` - �• / - - ; ) f § §� \■ /k | j £\® - -y`§ \ §©$ /m • -- - { § 3 /k s a - - \/ j _ E W °)� §k 0B \0 } \ \ } § -- \ / ® \_ \ s , |4 w>, 3Am, +nH2m 0 k ul )� s \\ n 2 a W m W H Y! 0 ED ED Z W U 0 0 tC - a 0�� ° O 0 Z w O �a Xvz nz Z Q = o0 ME C) x6 0 _ <� Z F- mo W U) tiF U) oa ~ 3 to yyW m z 4ao 0 o� Z O m 1 g D U) z z W Cl- C) m J Q m v M( 1332 Immll. °s Z & o a m e J13u I 133als W U 0 IT98 1 p° a- � Oa I � m c 0 o U m a OO ° D- o 13381S 1HSI2l 3AOGV 3NI-lH0lVW b �R G � Rol �pPp 1VW R 151 p m NNE U C� Ls im Q• RG�1 Co. IM 1 p° a- � Oa I � m c 0 o U m a OO ° D- o 13381S 1HSI2l 3AOGV 3NI-lH0lVW b �R G � Rol City of Newport Beach Underground Utility Assessment District No. 86 October 23, 2002 Final Engineer's Report Page 20 Part VI Description of Facilities, Time Estimate Section 10100 of the Act provides for the legislative body of any municipality to finance certain capital facilities and services within or along its streets or any public way or easement. The following is a list of proposed improvements as allowed under the Act to be installed, or improved under the provisions of the Act, including the acquisition of required right -of -way and/or property. For the general location of the improvements to be constructed referenced is hereby made to the Plans and Specifications described in Part I of this report. The following improvements are proposed to be constructed and installed in the general location referred to as Assessment District No. 86. 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 Adelphia Cable. The City of Newport Beach will inspect the work to ensure conformance to city standards and specifications where applicable. Once completed, the underground facilities will become the property and responsibility of Southern California Edison Company, Pacific Bell Telephone Company, and Adelphia Cable. Each owner of property located within the Assessment District will be responsible for arranging for and paying for work on his or her property necessary to connect facilities constructed by the public utilities in the public streets and alleys to the points of connection on the private property. Conversion of individual service connections on private property is not included in the work done by the Assessment District. The estimated time for completion of the undergrounding of the utilities is 6 months after the sale of bonds. Property owners will be required to provide necessary underground connections within 120 days of the completion of the underground facilities. Failure to convert individual service connections on private property may result in a recommendation to the City Council that the public utilities be directed to discontinue service to that property. Overhead facilities cannot be removed until all overhead service has been discontinued. Q:VJewport BeachWD86\reports\fn1 13rptl.doc Harris & Associates n,Y City of Newport Beach October 23, 2002 Underground Utility Assessment District No. 86 Final Engineer's Report Page 21 Right -of -Way Certificate STATE OF CALIFORNIA COUNTY OF ORANGE CITY OF NEWPORT BEACH The undersigned hereby CERTIFIES UNDER PENALTY OF PERJURY that the following is all true and correct. That at all time herein mentioned, the undersigned was, and now is, the authorized representative of the duly appointed SUPERINTENDENT OF STREETS of the CITY OF NEWPORT BEACH, CALIFORNIA. That there have now been instituted proceedings under the provisions of Article XIIID of the California Constitution, and the "Municipal Improvements Act of 1913," being Division 12 of the Streets and Highways Code of the State of California, for the construction of certain public improvements in a special assessment district known and designated as ASSESSMENT DISTRICT NO. 86 (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 located 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 construction by the CITY OF NEWPORT BEACH. EXECUTED this 230 day of O CT0150K 2002, at CITY OF NEWPORT BEACH, California. Q:1Newpm BeachWD86\reports\fn1 13rpt1.doc SUPERINDENT OF STREETS CITY OF NEWPORT BEACH State of California Harris & Associates City of Newport Beach Underground Utility Assessment District No. 86 final Engineer's Report Certificate of Completion of Environmental Proceedings STATE OF CALIFORNIA COUNTY OF ORANGE CITY OF NEWPORT BEACH The undersigned, under penalty of perjury, CERTIFIES as follows: October 23, 2002 Page 22 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. 86 (hereinafter referred to as the "Assessment District "). 2. The specific environmental proceedings relating to this Assessment District that have been completed are as follows: CEQA compliance review: The proposed project is Categorically Exempt (Class 2) from the provisions of CEQA (replacement or reconstructions). 3. I do hereby certify that all environmental evaluation proceedings necessary for the formation of the Assessment District have been completed to my satisfaction, and that no further environmental proceedings are necessary. EXECUTED this day of SWTEM55Q , 2002, at CITY OF NEWPORT BEACH, California. 0 Q.\Newporl DeachWD86\reports\fn1 13iptl.dm CITY OF &EWPORT BEACH STATE OF CALIFORNIA Harris & Associates Pacific Bell Telephone Compan 1255 Van Buren St. Room: 180 Anaheim, CA 92807 January 15, 2002 City of Newport Beach Public Works Department 3300 Newport Blvd., P.O. Box 1768 Newport Beach, Ca 92658 -8915 Attention: Patrick Arciniega Contact M 949 - 644 -3347 PACIFIC BELL gni��k This letter will confirm our conversation regarding the Undergrounding Assessment District No. 86, Balboa Peninsula Alley (bounded by: °G° Street, Channel Road, Ocean Blvd, and Public Beach). The amount of $236,790.52 is the final cost estimate of the project. A deposit of $12,091.25 was received on July 15, 1999, leaving the balance due shown below. This amount must be paid before any construction can begin. The balance due for this work will be $224,699.27. Please sign and return this letter along with your check to: Pacific Bell, Attention: CWBO UNIT, 1265 Van Buren St., RM 180 Anaheim, CA 92807 so that we may proceed with the work. An envelope is enclosed for your convenience. The above dollar figure for Pack Bell charges is good for a six month period from the date of this letter. If we have not received your check within the six month period, we will consider the matter closed. This dollar figure is conditional upon Pacific Bell being able to obtain all necessary governmental approvals and permits to accomplish the above described worts if Pack Bell is not able to obtain any such approvals or permits, or if you later cancel, modify, change or defer your request, we reserve the right to refund your money less any expenses incurred by Pacific Bell and Pacific Sell will have no further obligation to perform the work as described above. This is in accordance with applicable tariffs on file with the California Public Utilities Commission. For further assistance please call me on 714 - 666 -5710. Sincerely, �# M-i/ Jeff Meric kel Engineer Ref. No. LE(11)1101Q QW.B.O. # GLCLESM15 Signature of Customer. Date: Nov -05 -02 01:32pm From -SCE PUBLIC AFFAIRS 7149735752 T -055 P. 02/03 F -973 AGREEMENT FOR REPLACEMENT OF OVERHEAD WITH UNDERGROUND DISTRIBUTION FACILITIES (Installation by Utility) THIS AGREEMENT, made this day of 120 02 between SOUTHERN CALIFORNIA EDISON COMPANY, a corporation, hereinafter called "Utility ", and the parry or parties whose names are subscribed hereunder as "Applicants ", W IMSSETH: WHEREAS, Applicants have requested Utility, pursuant to Section B. of Utility's Rule No. 20, Replacement of Overhead with Underground Distribution Facilities, to replace Utility's existing overhead with underground distribution facilities at the location or locations in the County of orange , State of California, substantially described as follows: Assessment District 1186 Alleys between Ocean Blvd. & Ocean Front — G St. to Channel ltd. Newport Beach, CA 92661 and as shown on the map attached hereto and trade a part hereof; and a. It is necessary for all property owners served from Utility's overhead facilities to bu removed to agree in writing to perform the wiring changes on owners' premises so that service may be furnished from Utility's underground distribution system in accordance with Utility's rules and that Utility may discontinue Utility's overhead service upon completion of Utility's underground facilities, or b. Suitable legislation is in effect requiring such property owners to make such necessary wiring changes and authorizing Utility to discontinue Utility's ovcrhead service; and WHEREAS, Applicants have requested Utility to furnish and install the pads and vaults for transformers and associated equipment, conduits, ducts. boxes, and electrolier bases and to perform other work related to structures and substructures including breaking of pavement, trenching, backfnlling, and repaving required in connection with installation of the underground system; and WHEREAS, Underground service connections to each applicant from Utility's underground distribution system will be installed and maintained as provided in Utility's rules applicable thereto; NOW, THEREFORE, in consideration of the premises, and of the mutual promises and covenants of the parties hereto, hereinafter contained, it is mutually agreed by and between the parties hereto as follows, viz.: 1. Applicants will pay to Utility concurrently with the execution hereof the nonrefundable amount of g 101,832.00 , which is the excess, if any, of the estimated costs, including breaking of pavement, trenching, bac]�lling, and paving required in connection with installation of the underground system, and of g 122, 250.00 , the excess, if any, of the estimated costs including transformers, meters, and services, of completing the underground system and building a new equivalent overhead system. The amount contributed by each of said Applicants is shown hereinafter. 2. Utility will complete the undergrounding of said overhead distribution facilities, provided, however, Utility has been granted rights of way therefor satisfactory to and without cost to Utility. =9 ..� Nov -05 -02 01:32pm From -SCE PUBLIC AFFAIRS T140T35TS2 T -055 P.03/03 F -873 ..J U 3. Said underground distribution facilities will be and will remain the property of Utility. 4. Applicants each agree Applicants will perform necessary wiring changes on Applicants' premises so that service may be furnished from Utility's underground distribution system in accordance with Utility's rules, and Utility may discontinue Utility's overhead service upon completion of Utility's underground facilities. 5. This contract is subject to the Rules of Utility. 6. This contract shall at all times be subject to such changes or modifications by the Public Utilities Commission of the State of California as said Commission may, from time to time, direct in the exercise of its jurisdiction. above written. IN WITNESS WHEREOF, the parties hereto have executed this agreement on the day and year fast SOUTHERN CALIFORNIA EDISON COMPANY Orange Region R6010N OR DIVISION AMOUNT SIGNATURE OF APPLICANTS ADDRESS CONTRIBUTED 3300 Newport B1. Newport Beach, CA g 224,082.00 F, S $ S TOTAL $ Witness 156-1 —2— L� C1 • TO: Mayor and Members of the City Council FROM: Public Works Department September 24, 2002 CITY COUNCIL AGENDA ITEM NO. 11 t8 SUBJECT: PROPOSED ASSESSMENT DISTRICT NO. 86 (AREA BOUNDED BY OCEAN BOULEVARD, OCEANFRONT BOULEVARD, "G" STREET, AND CHANNEL ROAD AND THE PUBLIC BEACH) FOR UNDERGROUNDING UTILITIES RECOMMENDATIONS: 1. Consider adoption of the following Resolutions for Proposed Assessment District No. 86: a. RESOLUTION No. 2002- MAKING FINDINGS ON A PETITION FOR, ADOPTING A MAP SHOWING THE PROPOSED BOUNDARIES OF, AND MAKING APPOINTMENTS FOR ASSESSMENT DISTRICT NO. 86. b. RESOLUTION No. 2002- DECLARING INTENTION TO ORDER THE CONSTRUCTION OF CERTAIN IMPROVEMENTS IN PROPOSED ASSESSMENT DISTRICT NO. 86, 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. 2002- _ GIVING PRELIMINARY APPROVAL TO THE REPORT OF THE ASSESSMENT ENGINEER, SETTING THE TIME AND PLACE FOR A PUBLIC HEARING AS NOVEMBER 12, 2002, AND ORDERING THE INTENTION OF ASSESSMENT BALLOT PROCEDURE FOR ASSESSMENT DISTICT NO. 86. 2. Approve the Special Counsel agreement with Robert Hessell. HISTORY: Owners of property located in Proposed Assessment District No. 86 submitted petitions to the City requesting the formation of a special assessment district to underground overhead utilities. SUBJECT: UNDERGROUNDING UTILITIES IN PROPOSED ASSESSMENT DISTRICT NO. 86 (ALLEY BOUNDED BY OCEAN BOULEVARD, OCEANFRONT BOULEVARD, CHANNEL ROAD AND THE PUBLIC BEACH) September 24, 2002 Page 2 In response to petitions submitted by owners representing approximately 64.45 percent of the assessable property area within Proposed Assessment District No. 86, the City Council appropriated $52,641.25 on March 8, 1999, to facilitate the undergrounding of utilities. $27,091.25 was expended to prepare engineering plans and submit guaranteed prices to underground the utilities. $25,550 is being expended by the Assessment Engineer for preparation of the engineers report and assistance processing the assessment district. DISCUSSION: Proposed Assessment District No. 86 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. 86 is estimated as follows: ITEM ESTIMATED COST Estimated Cost of Construction $477,160.00 Estimated Incidental Costs and Expenses 80,214.00 Estimated Financing (Bond) Costs 100,500.00 Federal Income Tax Component of Contribution (ITCC) 80.556.00 Estimated Total Cost: $738,430.00 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. • • 0 0 SUBJECT: UNDERGROUNDING UTILITIES IN PROPOSED ASSESSMENT DISTRICT NO. 86 (ALLEY BOUNDED BY OCEAN BOULEVARD. OCEANFRONT BOULEVARD, CHANNEL ROAD AND THE PUBLIC BEACH) September 24.2002 Page 3 The ITCC tax associated with this district is approximately $80,556.00, 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 the assessment, each property owner will be responsible for converting their 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. The following is a tentative schedule for Proposed Assessment District No. 86: • Resolution of Intention • Property Owner Information Meeting • Public Hearing • Public Utilities Commence Work • City Notifies Property Owners to Install Service Connections • Property Owners Complete Conversions • Public Utilities Begin to Remove Overhead Structures • Public Utilities Finish Removing Poles and Overhead Structures September 24, 2002 October 24, 2002 November 12, 2002 January 2003 April 2003 August 2003 October 2003 December 2003 The Assessment Engineer determined there are 135 assessable parcels that are all zoned single family residential; therefore it is our conclusion that the special benefit is distributed equally to each parcel on a per parcel basis. In no case shall an assessment on a parcel be less than the equivalent cost for the number of service drops as defined in the Engineer's Report. An exception to this methodology is Assessment No. 117. This parcel was previously assessed 74 percent of the total assessment as part of Assessment District No. 64, SUBJECT: UNDERGROUNDING UTILITIES IN PROPOSED ASSESSMENT DISTRICT NO. 86 (ALLEY BOUNDED BY OCEAN BOULEVARD, OCEANFRONT BOULEVARD, CHANNEL ROAD AND THE PUBLIC BEACH) September 24, 2002 Page 4 based on the determination it would be assessed the balance when the overhead utilities directly adjacent to it were undergrounded with this current district. Therefore this parcel is assessed for 1 - 0.74 = .26 benefit units, which amounts to $1,274 without ITCC tax and $1,430 with ITCC tax. The estimated assessment without the ITCC tax component is $4,900. The estimated assessment with ITCC tax is $5,500. 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. An 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, Bond Counsel, to provide these legal services. The fee is approximately, $15,000 in accordance with the terms of the Agreement. This fee will be paid through the assessment district. Respectful Badum • PupieWorks Director Patrick L. Arcinlega J Project Engineer Attachments: 1. Exhibit Showing District Boundaries 2. Resolution Making Findings On Petition Adopting Proposed Boundary Map And Making Appointments 3. Resolution Of Intention 4. Resolution Passing On Report Of Assessment Engineer, Setting Public Hearing And Ordering Initiation Of Assessment Ballot Procedures 5. Engineer's Report 6. Special Counsel Agreement I• 1 L-A e „ 3 C f$ q 2 b- $ ti l t 1 1 �� E g ggg ' 1 g ' �cR M ; L n S - m 1331 M0138 3NI1H01VW l 133a15 w y J , CD c R Q m m m a m Z a m _ q U- 6 0 R p ix � V1Z• J W_ F w F C R Z z z <QZ n¢ R -- _ ZAP= oo " O < 13381s 1331115 N OFG V m m F- ° FF 06V) - LLI V) 0� �-- a N S palm z x aN0 _ U aw Z V ` U m z O = o a m - x 'R - J (R��� S R Z w R 133HIS a pG 1H01a 3n08V 3NI1H01VW O m�oC 133815 y E $Ex RESOLUTION NO. 2002 - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH MAKING FINDING ON A PETITION FOR, ADOPTING A MAP SHOWING THE PROPOSED BOUNDARIES OF, AND MAKING APPOINTMENTS FOR ASSESSMENT DISTRICT NO. 86 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. 86 (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. 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 Harris & Associates 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 24th day of September, 2002, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST City Clerk F:\ USERS\ PBIMShared \ResolutionsiP.D86- Petition.doc RESOLUTION NO. 2002 - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DECLARING INTENTION TO ORDER THE CONSTRUCTION OF CERTAIN IMPROVEMENTS IN PROPOSED ASSESSMENT DISTRICT NO. 86, DECLARING THE IMPROVEMENTS TO BE OF SPECIAL BENEFIT, DESCRIBING THE DISTRICT TO BE ASSESSED TO PAY THE COSTS AND EXPENSES THEREOF, PROVIDING FOR THE ISSUANCE OF BONDS, AND TO DESIGNATE THE AREA AN UNDERGROND UTITLITES DISTRICT WHEREAS, this legislative body has instituted proceedings for the formation of a special assessment district designated as ASSESSMENT DISTRICT NO. 86 (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, this legislative body further desires to ascertain whether area comprising the Assessment District should be designated an underground utilities district pursuant to Chapter 15.32 of the Code of Ordinances of the City of Newport Beach (the "City "); 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 welfare and to improve aesthetics within the area of the Assessment District; 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 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, to assess the cost thereof against the real property specially benefited thereby, and to designate the area an underground utilities district. . DESCRIPTION OF IMPROVEMENTS 0 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 described as Balboa Peninsula, which area is specifically bounded by "G" Street, Ocean Boulevard, Channel Road, and the public beach, together with appurtenances and appurtenant work thereto, all to serve and specially benefit the properties within Assessment District No. 86. 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 Engineers Report (described below) 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. 86" 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. 2 REPORT OF THE ASSESSMENT ENGINEER .i SECTION 3. The proposed improvements are hereby referred to Harris & Associates (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 (the "Assessment Engineers 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.), 3 • 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. • 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 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. 111 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: Patrick Arciniega, Project Engineer City of Newport Beach P.O. Box 1768 Newport Beach, California 92658 (949) 644 -3347 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 Engineers 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. 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 s • 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 24th day of September, 2002, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: 0 City Clerk r1 LJ E Mayor F:\ USERS \PBW\Shared \Resolutions�ADBB -Bond Issuance.doc RESOLUTION NO. 2002 - • RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH GIVING PRELIMINARY APPROVAL TO THE REPORT OF THE ASSESSMENT ENGINEER FOR ASSESSMENT DISTRICT NO. 86 AND AN UNDERGROUND UTILITIES DISTRICT, SETTING A TIME AND PLACE FOR PUBLIC HEARING THEREON, AND ORDERING THE INITIATION OF ASSESSMENT BALLOT PROCEDURES WHEREAS, this legislative body has instituted proceedings for the formation of a special assessment district designated as Assessment District No. 86 (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 Assessment District area should be designated an underground utilities district pursuant to Chapter 15.32 of the Code of Ordinances of the City of Newport Beach (the "Ordinance "); 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 ") and the Ordinance; 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; 1 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; 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, the proposed assessments, and the designation of the area as an underground utilities district at its regular meeting place, being the Council Chambers at 3300 Newport Boulevard, Newport Beach, California, on November 12, 2002 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 2 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 24th day of September, 2002, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: City Clerk c Mayor F:\USERS\PB W1Shared \ResolutionsiAD86- Ballot.doc 0 BOND COUNSEL AGREEMENT THIS AGREEMENT made and entered into as of September 1, 2002, by and between the City of Newport Beach, California, a municipality ( "City"), and Robert E. Hessell, attomey -at -law ( "Counsel "), WITNESSETH IT IS HEREBY AGREED by and between Counsel and City as follows: SECTION 1. Obligations 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. 86 (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; (f) 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 ornotice of sale and other supporting documentation relating to the offering for sale of any bonds or similar indebtedness; 0) preparingor 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 ot; orsecurhy 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. Obligations of Cites. 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 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 provided under this agreement. The fee shall be $15,000.00. The fee for the bonds or similar indebtedness shall be due and payable upon the occurrence of the Closing. 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 $0.34 /mile (unless over one -half hour and billed hourly) Facsimile: $0.10 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 fast 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 ofthe 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 ornit 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 orexpressing anyview 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. 2 0 •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 notrepresent 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 ofthis agreement, one or more of Counsel's presentor 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 thematters 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. Eitherparty may terminatethis Agreement by mailing written noticethereof tothe 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 By: 4�7�3� • Preliminary Engineer's Report for Underground Utility Assessment District No. 86 Prepared under the provisions of the Municipal Improvement Act of 1913 For the CITY OF NEWPORT BEACH Orange County, California Prepared by: M Harris & Associates September 6, 2002 .• LJ 0 • r1 LJ City of Newport Beach September 6, 2002 Underground Utility Assessment District No. 86 Preliminary Engineer's Report TABLE OF CONTENTS Page Introduction and Certifications ............................................................. ............................... I PART I Plans and Specifications ..................................................... ..............................4 PARTII Cost Estimates ..................................................................... ..............................5 PART III Assessment Roll and Method of Assessment Spread ....... ..............................6 Table I — Assessment Roll ................................................... ............................... 8 DebtLimit Valuation ......................................................... ............................... I I Exhibit I — Method and Formula of Assessment Spread ..... .............................12 PART IV Annual Administrative Assessment .................................. .............................16 PART V Boundary Map and Diagram of Assessment District ..... .............................17 PART VI Description of Facilities ..................................................... .............................20 Right -of -Way Certificate ..................................................... .............................21 Certification of Completion of Environmental Proceedings .............................22 \\ a2\DataWewport Beach\AD86\mports\pml Brptldoc t� Harris & Associates City of Newport Beach September 6, 2002 Underground Utility Assessment District No. 86 Preliminary Engineer's Report Page 1 AGENCY: CITY OF NEWPORT BEACH 10 PROJECT: ASSESSMENT DISTRICT NO. 86 TO: CITY COUNCIL ENGINEER'S "REPORT" PURSUANT TO THE PROVISIONS OF SECTIONS 2961 AND 10204 OF THE STREETS AND HIGHWAYS CODE The purposes of this Assessment District is to provide financing to underground power, telephone and cable facilities in the area generally described as Balboa Peninsula, specifically the area bounded by "G" Street, Ocean Boulevard, Channel Road and the public beach. 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 Adelphia Cable standards. By virtue of such improvements, the proposed improvements are of special and direct benefit to these properties. Pursuant to the provisions of Article XIIID of the State Constitution, Part 7.5 of the "Special Assessment Investigation, Limitation and Majority Protest Act of 1931", being Division 4 of the Streets and Highways Code of the State of California, and the "Municipal Improvement Act of 1913 ", being Division 12 of said Code, and the Resolution of Intention, adopted by the City Council . of the CITY OF NEWPORT BEACH, State of California, in connection with the proceedings for Assessment District No. 86 (hereinafter referred to as the "Assessment District "), I, Joan E. Cox, P.E., a Registered Professional Engineer and authorized representative of Harris & Associates, the duly appointed Engineer of Work, herewith submits the "Report" for the Assessment District, consisting of six (6) parts as stated below. PART This part contains the plans and specifications which describe the general nature, location and extent for the proposed improvements to be constructed, and are filed herewith and made a part hereof. Said plans and specifications are on file in the Office of the Superintendent of Streets. PART II This part contains an estimate of the cost of the proposed improvements, including capitalized interest, if any, incidental costs and expenses in connection therewith as set forth herein and attached hereto. PART III This part consists of the following information: A. A proposed assessment of the total amount of the costs and expenses of the proposed improvements upon the several subdivisions of land within the Assessment District, in • proportion to the special benefits to be received by such subdivisions from said improvements, which is set forth upon the assessment roll filed herewith and made a part hereof. t� AU2\13at"ewport Beach\AD86\repoM \pre1 13rpt3.doc Harris &Associates • City of Newport Beach September 6, 2002 Underground Utility Assessment District No. 86 Preliminary Engineer's Report Page 2 B. The total amount, as near as may be determined, of the total principal sum of all unpaid special assessments and special assessments required or proposed to be levied under any completed or pending assessment proceedings, other than that contemplated for the Assessment District, which would require an investigation and report under the "Special Assessment Investigation, Limitation and Majority Protest Act of 1931" against the total area proposed to be assessed. C. The total true value, determined from the latest Assessor's roll, of the parcels of land and improvements which are proposed to be assessed. PART IV This part contains the proposed maximum annual administrative assessment to be levied upon each subdivision or parcel of land within the Assessment District to pay the costs incurred by the CITY OF NEWPORT BEACH, and not otherwise reimbursed, resulting from the administration and collection of assessments, from the administration and registration of any associated bonds and reserve or other related funds, or both. PART V This part contains a map showing the boundaries of the Assessment District, and a diagram showing the Assessment District, the boundaries and the dimensions of the subdivisions of land within said Assessment District, as the same existed at the time of the passage of the Resolution of Intention. The Boundary Map and Assessment Diagram are filed herewith and made a part hereof, and part of the assessment. PART VI This part shall consist of the following information: A. Description of facilities B. Right -of -Way Certificate C. Environmental Certificate This report is submitted on September 6, 2002. \Ua2 \Data\Newpon BeachWD86\reports \prel Drptldoc HARRIS & ASSOCIATES JOAN E. COX, P.E. R.C.E. No. 41965 ENGINEER OF WORK CITY OF NEWPORT BEACH STATE OF CALIFORNIA Harris & Associates City of Newport Beach September 6, 2002 Underground Utility Assessment District No. 86 Preliminary Engineer's Report Page 3 Preliminary approval by the CITY COUNCIL of the CITY OF NEWPORT BEACH, CALIFORNIA, on the _ day of , 2002. 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 , 2002. CITY CLERK CITY OF NEWPORT BEACH STATE OF CALIFORNIA A a2\Data\Newpon Beach\AD86\reports \pre1 13rpt3.doc i7 Harris & Associates is • 1] City of Newport Beach September 6, 2002 Underground Utility Assessment District No. 86 Preliminary Engineer's Report Page 4 Part I Plans and Specifications The plans and specifications to construct the utility undergrounding improvements, and any ancillary improvements thereof, for the area generally described as Assessment District No. 86, Balboa Peninsula, specifically the area bounded by "G" Street, Ocean Boulevard, Channel Road and the public beach, 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. Said Plans and Specifications for the improvements are on file in the office of the Superintendent of Streets. 0 1V,a2\DataWewport BeachWD86keporulprel 13rptMoc Harris &Associates City of Newport Beach September 6, 2002 Underground Utility Assessment District No. 86 Preliminary Engineer's Report Page 5 CONSTRUCTION COSTS Utility Construction' Southern California Edison Pacific Bell Contingency (10 %) INCIDENTAL EXPENSES Edison Design Engineering Pacific Bell Design Engineering Assessment Engineering Contract Inspection City Administration Filing Fees Bond Council Incidental Contingencies Part II Cost Estimate Estimated Costs Preliminary Confirmed $209,082 $224,700 Subtotal Construction Costs: $433,782 $43,378 Total Construction Costs: $477,160 $15,000 $12,091 $26,000 $2,500 $5,000 $1,000 $15,000 $3,623 Total Incidental Expenses: $80,214 Total Construction and Incidental Expenses: $557,374 FINANCIAL COSTS (1st Bond Issue) Underwriter's Discount 2.50% $16,000 Bond Reserve 5.00% $33,000 Funded Interest @ 12 months @ 6.00% $39,000 Paying Agent $2,500 Bond Printing, Registration and Servicing $10,000 Total Financial Costs: $100,500 DISTRICT FORMATION AMOUNT TO ASSESSMENT: $657,874 FEDERAL INCOME TAX COMPONENT OF CONTRIBUTION (ITCC) (2nd Bond Issue) " FINANCIAL COSTS (2nd Bond Issue) Federal Tax Component $60,502 Underwriter's Discount 2.50% $2,000 Bond Reserve 5.00% $4,000 Funded Interest @ 12 months @ 6.00% $5,000 Paying Agent $2,500 Incidental Contingencies $6,554 TOTAL FEDERAL TAX AND FINANCING COSTS: $80,556 TOTAL AMOUNT TO ASSESSMENT: $738,430 Adelphia Cable is required to pay for undergrounding through the Franchise Agreement with the City. 2nd Bond Issue for Federal Income Tax Component of Contribution (34 %) will only be issured if the Federal Government assesses the tax. A a2\Dat"ewport Beach\AD86\teports \pm1 13ipt3.doc Harris & Associates 0 0 City of Newport Beach September 6, 2002 Underground Utility Assessment District No. 86 Preliminary Engineer's Report Page 6 Part III Assessment Roll and Method of Assessment Spread WHEREAS, on 2002 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. 2002 -_, 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. 86 (hereinafter referred to as the "Assessment District "); and WHEREAS, said Resolution of Intention, as required by law, did direct the Engineer of Work to make and file a "Report", consisting of the following as required by Section 10204 of the Act: a. Plans 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, Joan E. Cox, the authorized representative of HARRIS & ASSOCIATES, pursuant to Article XIIID of the California Constitution and the "Municipal Improvement Act of 1913 ", do hereby submit the following: 1. Pursuant to the provisions of law and the Resolution of Intention, I have assessed the costs and expenses of the works of improvement to be performed in the Assessment District upon the parcels of land in the Assessment District specially benefited thereby in direct proportion and relation to the special benefits to be received by each of said parcels. For particulars as to the identification of said parcels, reference is made to the Assessment Diagram, a copy of which is attached hereto and incorporated herein. 2. As required by law, a Diagram is hereto attached, showing the Assessment District, as well as the boundaries and dimensions of the respective parcels and subdivisions of land within said 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. t! \VC 20ataW ewportBeach \AD86'Tepons\pmI13rpt3.doc Harris & Associates City of Newport Beach September 6, 2002 Underground Utility Assessment District No. 86 Preliminary Engineer's Report Page 7 3. The subdivisions and parcels of land the numbers therein as shown on the respective Assessment Diagram as attached hereto correspond with the numbers as appearing on the Assessment Roll as contained herein. 4. NOTICE IS HEREBY GIVEN that bonds will be issued in accordance with Division 10 of the Streets and Highways Code of the State of California (the "Improvement Bond Act of 1915 "), to represent all unpaid assessments, which bonds shall be issued 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 agate not to exceed the current legal maximum rate of 12% per annum. 5. By virtue of the authority contained in said "Municipal Improvement Act of 1913 ", and by further direction and order of the legislative body, I hereby recommend the following Assessment to cover the costs and expenses of the works of improvement for the Assessment District based on the costs and expenses as set forth below: For particulars as to the individual assessments and their descriptions, reference is made to Table I (Assessment Roll) attached hereto. 6. The Method of Spread of Assessment is as set forth in the exhibit identified as Part III (Exhibit 1), which is attached hereto, referenced and so incorporated. \\122\Daw\14ewpon Beach\AD86VepoM \pre1 13rpt3.doc ii Harris & Associates 0 11 As Preliminarily As Approved Confirmed Estimated Cost of Construction: $477,160 Estimated Incidental Expenses: $80,214 Estimated Financial Costs: $100,500 Estimated Federal Tax & Financing Costs: $80,556 Estimated Total to Assessment: $738,430 For particulars as to the individual assessments and their descriptions, reference is made to Table I (Assessment Roll) attached hereto. 6. The Method of Spread of Assessment is as set forth in the exhibit identified as Part III (Exhibit 1), which is attached hereto, referenced and so incorporated. \\122\Daw\14ewpon Beach\AD86VepoM \pre1 13rpt3.doc ii Harris & Associates 0 11 City of Newport Beach September 6, 2002 Underground Utility Assessment District No. 86 Preliminary Engineer's Report Page 8 is Table 1 Assessment Roll Preliminary Preliminary Confirmed Confirmed Assessor's Total Benefit Dist For- Total Asmt Dist. For- Total Asmt Value Asmt Parcel Assessed Existing Units mation (1st (1st & 2nd mation (1st (1st & 2nd to Lien No. Number Value Liens , per Parcel Bond Issue) Bond Issues) Bond Issue) Bond Issues) Ratio \\la2 \Data\Newpon Beach\AD86\reports\pre1 13rpt3.dm Harris & Associates City of Newport Beach September 6, 2002 Underground Utility Assessment District No. 86 Preliminary Engineer's Report Page 9 Preliminary Preliminary Confirmed Confirmed Assessor's Total Benefit Dist. For- Total Asmt Dist. For- Total Asmt Value Asmt Parcel Assessed Existing Units mation (1st (1st & 2nd matron (1st (1st & 2nd to lien No. Number Value liens per Parcel Bond Issue) Bond Issues) Bond Issue) Bond Issues) Ratio A a2\Data\Newpon BeachWD86\repons\pm1 OrpOAm .0 r1 L� Harris & Associates 0 \\[a2 \Data\Newpon 13each1AD86\reports \pre1 13rpt1doc Harris &Associates City of Newport Beach September 6, 2002 Underground Utility Assessment District No. 86 Preliminary Engineer's Report Page 10 Preliminary Preliminary Confirmed Confirmed Assessor's Total Benefit Dist. For- Total Asmt Dist. For- Total Asmt Value Asmt Parcel Assessed Existing Units mation (1st (1st & 2nd mation (1st (1st & 2nd to Lien No. Number Value Liens per Parcel Bond Issue) Bond Issues) Bond Issue) Bond Issues) Ratio 0 \\[a2 \Data\Newpon 13each1AD86\reports \pre1 13rpt1doc Harris &Associates City of Newport Beach September 6, 2002 Underground Utility Assessment District No. 86 Preliminary Engineer's Report Page 11 Table 2 Debt Limit Valuation A. ESTIMATED BALANCE TO ASSESSMENT $738,430 B. UNPAID SPECIAL ASSESSMENTS $7,091 TOTAL A & B $745,521 C. TRUE VALUE OF PARCELS $118,848,200 ** AVERAGE VALUE TO LIEN RATIO 159 :1 Unpaid Special Assessments shall consist of the total principal sum of all unpaid special assessments previously levied or proposed to be levied other than in the instant proceedings. ** True Value of Parcels means the total value of the land and improvements as estimated and shown on the last equalized roll of the County. This report does not represent a recommendation of parcel value, economic viability or financial feasibility, as that is not the responsibility of the Assessment Engineer. CERTIFICATION I, the undersigned Assessment Engineer, do hereby certify that the total amount of the principal sum of the special assessments proposed to be levied, together with the principal amount of previously levied special assessments, as set forth above, do not exceed one -half (1/2) the total true value of the parcels proposed to be assessed. EXECUTED on September 6, 2002. HARRIS & ASSOCIATES JOAN E.COX, P.E. R.C.E. No. 41965 ASSESSMENT ENGINEER CITY OF NEWPORT BEACH COUNTY OF ORANGE, STATE OF CALIFORNIA \\ra2\Data\Newpon Beach\AD86\repons \pre1 13tpt3.dm .• 0 Harris & Associates 0 • City of Newport Beach September 6, 2002 Underground Utility Assessment District No. 86 Preliminary Engineer's Report Page 12 • Exhibit 1 Method and Formula of Assessment Spread Since the improvements are to be funded by the levying of assessments, the "Municipal Improvement Act of 1913" and Article XIIID of the State Constitution require that assessments must be based on the special benefit that the properties receive from the works of improvement. In addition, Section 4 of Article XIIID of the State Constitution requires that a parcel's assessment may not exceed the reasonable cost of the proportional special benefit conferred on that parcel. Section 4 provides that only special benefits are assessable and the local agency levying the assessment must separate the general benefits from the special benefits. It also provides that parcels within a district that are owned or used by any agency, the State of California, or the United States shall not be exempt from assessment unless the agency can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit. Neither the Act nor the State Constitution specifies the method or formula that should be used to apportion the costs to properties in any special assessment district proceedings. The responsibility for recommending an apportionment of the costs to properties which specially benefit from the improvements rests with the Assessment Engineer, who is appointed for the purpose of making an analysis of the facts and determining the correct apportionment of the assessment obligation. In order to apportion the assessments to each parcel in direct proportion with the special benefit which it will receive from the improvements, an analysis has been completed and is used as the basis for apportioning costs to each property within the Assessment District. Based upon an analysis of the special benefit to be received by each parcel from the construction of the works of improvement, the Assessment Engineer recommends the apportionment of costs as outlined below. The final authority and action rests with the City Council after hearing all testimony and evidence presented at a public hearing, and tabulating the assessment ballots previously mailed to all record owners of property within the Assessment District. Upon the conclusion of the public hearing, the City Council must make the final determination whether or not the assessment spread has been made in direct proportion to the special benefits received by each parcel within the Assessment District. Ballot tabulation will be done at that time and, if a majority of the ballots weighted by assessment amount are not in opposition to the Assessment District, the City Council may form the Assessment District. The following sections set forth the methodology used to apportion the costs of the improvements to each parcel. Special Benefit In further making the analysis, it is necessary that the properties receive a special benefit distinguished from general benefits conferred on real property located in the District or to the public at large. 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 Assessment District. There are no main transmission or trunk facilities with in the Assessment 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 fi \\La2\Data\Newpon Beach\AD86Veports \pre1 Brptldoc Harris &Associates City of Newport Beach September 6, 2002 Underground Utility Assessment District No. 86 Preliminary Engineer's Report Page 13 by the new distribution facilities as a result of enhanced service, reliability and capacity, as well as improved safety. Removal of the existing wood poles and the overhead wires will also aesthetically enhance all parcels that are directly adjacent to these facilities. In this Assessment District, 100% of the cost allocation for the improvements is special benefit to the parcels within the Assessment District and there is no general benefit. By virtue of such special benefits, the proposed improvements will provide a higher level of service, increase the desirability of the properties and will specifically enhance the values of the properties within the Assessment District. Therefore, the proposed improvements are of direct and special benefit to these properties. Method of Apportionment Based upon the findings described above, the special benefit received by the properties within the boundaries of the Assessment District is the conversion from an overhead to an underground utility system resulting in improved safety, reliability, a higher level of service to all properties that will take service from the new facilities and improved aesthetics to the adjacent properties. Based on these conditions, it is our conclusion that the improvements specially benefit all properties in the Assessment District. As all properties in the Assessment District are zoned single family residential, it is also our conclusion that the special benefit is distributed equally to each parcel on a per parcel basis. Therefore, one benefit unit is assigned to each parcel within this assessment district. An exception to this is Assessment No. 117 (APN 048 - 282 -19). This parcel is also a part of the previously established Assessment District No. 64 and was previously assessed 74% of the total assessment amount, based on a determination that it would be assessed the balance when the overhead utilities directly adjacent to it were underground with this current district. Therefore, this parcel is assessed for 1 — 0.74 = 0.26 benefit units. Incidental Expenses and Bond Costs have been assessed to the entire Assessment District on a prorata basis relative to the construction cost allocations. The Total Assessment in this Assessment 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 total assessment lien on each parcel will be the estimated Total Assessment for District Formation plus the ITCC. For particulars to the Assessment Roll, reference is made to Table 1. \Va2\Data\Newpon Beach\AD86\reports \pm1 13ipt3.doc i7 Harris & Associates L, E r1 U 0 City of Newport Beach September 6, 2002 Underground Utility Assessment District No. 86 Preliminary Engineer's Report Page 14 In conclusion, it is my opinion that the assessments for the referenced Assessment District have been spread in direct accordance with the special benefits that each parcel receives from the works of improvement. DATED: September 6, 2002 HARRIS & ASSOCIATES \V.a2\Data\Newpon Beach1AD86\reports\pre1 13ipt3.doc COX, P.E. R.C.E. No. 41965 ASSESSMENT ENGINEER CITY OF NEWPORT BEACH ORANGE COUNTY, STATE OF CALIFORNIA ii Harris & Associates City of Newport Beach September 6, 2002 Underground Utility Assessment District No. 86 Preliminary Engineer's Report Page 15 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 , 2002. 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 , 2002. 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 _ , 2002. 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 , 2002. Ll SUPERINTENDENT OF STREETS CITY OF NEWPORT BEACH STATE OF CALIFORNIA • i7 \Ua2\Data \Newport Beach\AD86\repoae \pre1 13rpt3.d« Harris &Associates 0 r-� u City of Newport Beach September 6, 2002 Underground Utility Assessment District No. 86 Preliminary Engineer's Report Page 16 Part N Annual Administrative Assessment A proposed maximum annual administrative assessment shall be levied on each parcel of land and subdivision of land within the Assessment District to pay for necessary costs and expenses incurred by the CITY OF NEWPORT BEACH, and not otherwise reimbursed, resulting from the administration and collection of assessments, from the administration or registration of any bonds and reserve or other related funds, or both. The maximum assessment is authorized pursuant to the provisions of Section 10204(f) of the Streets and Highways Code and shall not exceed fifty dollars ($50) per parcel per year, subject to an annual increase based on the Consumer Price Index (CPI), during the preceding year ending in January, for all Urban Consumers in the Orange, Riverside, and Orange County areas. The exact amount of the administration charge will be established each year by the Superintendent of Streets. The annual administrative assessment will be collected in the same manner and in the same installments as the assessment levied to pay for the cost of the works of improvement. U220ataNewport BeachWD86\reports\pre1 13rpt3.doc Harris &Associates City of Newport Beach September 6, 2002 Underground Utility Assessment District No. 86 Preliminary Engineer's Report Page 17 Part V Boundary Map and Diagram of Assessment A reduced copy of the Boundary Map and Assessment Diagram are attached hereto. Full -sized copies of the Boundary Map and Assessment Diagram are on file in the Office of the City Clerk, of the City of Newport Beach. As required by the Act, the Assessment Diagram shows the exterior boundaries of the assessment district and the assessment number assigned to each parcel of land corresponding to its number as it appears in the Assessment Roll contained in Part III Table 1. The Assessor's parcel number is also shown for each parcel as they existed at the time reference is hereby made to the Assessors Parcel and dimensions of each parcel of land. \\la2\D=\Nev pon Beach\AD86\reports \pre1 13rpO.doc of the passage of the Resolution of Intention and Maps of the County of Orange for the boundaries i7 Harris & Associates 0 0 0 ti `3,� G 0 z _ yAOR = nUY� x 2 2 Q m 1331 M0138 3NI1H0IVW W 133a1S l - S GC Q U m x u R x u Q w z CD R �coo O C m vl Z O '^ W_ m~ Z `zz R ^ R p�UZ 0¢ uLZ � _ _�- Z 2 O H U = 133211S I 1332115 Op uu mF2 mo - 0 V) O r A OWm z R x C) u d W � O u o � a m u ^ �O�Y Z Z p ^ w W a R 1332115 qffi� d A 1H9I8 3A08V 3NI1HOIVW y m� 1332115 0 a8 °s 2 Q W m W 2 in J m Z Q W v o� m OS O LL Z o W �a OfVz �M Q UO Q 2 J �.. U =6 Q U 4 ~ Z F m w O W N � (n m w d t N 3 LLJ V) z ¢4 o o LL, w Z Z v O m I V) N Z Z W a 0 m a m v gg33 � m E E E d�� 133&S 9 X ❑ © e ! 8 X ❑ u 1 ! R® qqmmlij �" MM- 13384 i W p p" ❑ p. A p On m zQ n E V W ^ O a J fla m (f 4 © 1 ® p- .M81S tyrrye r h�u �$b r� • City of Newport Beach September 6, 2002 Underground Utility Assessment District No. 86 Preliminary Engineer's Report Page 20 Part VI Description of Facilities, Time Estimate Section 10100 of the Act provides for the legislative body of any municipality to finance certain capital facilities and services within or along its streets or any public way or easement. The following is a list of proposed improvements as allowed under the Act to be installed, or improved under the provisions of the Act, including the acquisition of required right -of -way and/or property. For the general location of the improvements to be constructed referenced is hereby made to the Plans and Specifications described in Part I of this report. The following improvements are proposed to be constructed and installed in the general location referred to as Assessment District No. 86. 1. Removal of existing power and telephone poles. 2. Removal of overhead resident service drops. 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 Adelphia Cable. The City of Newport Beach will inspect the work to ensure conformance to city standards and specifications where applicable. Once completed, the underground facilities will become the property and responsibility of Southern California Edison Company, Pacific Bell Telephone Company, and Adelphia Cable. Each owner of property located within the Assessment District will be responsible for arranging for and paying for work on his or her property necessary to connect facilities constructed by the public utilities in the public streets and alleys to the points of connection on the private property. Conversion of individual service connections on private property is not included in the work done by the Assessment District. The estimated time for completion of the undergrounding of the utilities is 6 months after the sale of bonds. Property owners will be required to provide necessary underground connections within 120 days of the completion of the underground facilities. Failure to convert individual service connections on private property may result in a recommendation to the City Council that the public utilities be directed to discontinue service to that property. Overhead facilities cannot be removed until all overhead service has been discontinued. Q:We%vport Beach\AD86\repom \pmI 13rpt3.doc Harris & Associates City of Newport Beach September 6, 2002 Underground Utility Assessment District No. 86 Preliminary Engineer's Report Page 21 Right -of -Way Certificate STATE OF CALIFORNIA COUNTY OF ORANGE CITY OF NEWPORT BEACH The undersigned hereby CERTIFIES UNDER PENALTY OF PERJURY that the following is all true and correct. That at all time herein mentioned, the undersigned was, and now is, the authorized representative of the duly appointed SUPERINTENDENT OF STREETS of the CITY OF NEWPORT BEACH, CALIFORNIA. That there have now been instituted proceedings under the provisions of Article XIIID of the California Constitution, and the "Municipal Improvements Act of 1913," being Division 12 of the Streets and Highways Code of the State of California, for the construction of certain public improvements in a special assessment district known and designated as ASSESSMENT DISTRICT NO. 86 (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 located 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 construction by the CITY OF NEWPORT BEACH. EXECUTED this 2 4 day of 2002, at CITY OF NEWPORT BEACH, California. \ \La2\Dam\Newyon Beach\AD86\repoM \pre1 13rpt3.dm SUPERINDENT OF STREETS CITY OF NEWPORT BEACH .10 Harris & Associates • • • • City of Newport Beach September 6, 2002 Underground Utility Assessment District No. 86 Preliminary Engineer's Report Page 22 Certificate of Completion of Environmental Proceedings STATE OF CALIFORNIA COUNTY OF ORANGE CITY OF NEWPORT BEACH The undersigned, under penalty of perjury, CERTIFIES as follows: 1. That I am the person who authorized to prepare and process all environmental documentation as needed as it relates to the formation of the special assessment district being formed pursuant to the provisions of the "municipal Improvement Act of 1913" being Division 12 of the Streets and Highways Code of the State of California, said special Assessment district known and designated as ASSESSMENT DISTRICT NO. 86 (hereinafter referred to as the "Assessment District "). 2. The specific environmental proceedings relating to this Assessment District that have been completed are as follows: CEQA compliance review: The proposed project is Categorically Exempt (Class 2) from the provisions of CEQA (replacement or reconstructions). 3. I do hereby certify that all environmental evaluation proceedings necessary for the formation of the Assessment District have been completed to my satisfaction, and that no further environmental proceedings are necessary. EXECUTED this day of California. \VC 2\Data\Newpon 13each\AD86\reports \pre1 13rpt3.doc 2002, at CITY OF NEWPORT BEACH, ?rOF NEWPORT BEACH TE OF CALIFORNIA Harris & Associates CYL,(Y OF NEWPORT BEAD H 3300 Newport Boulevard - P.O. Box 1768 Newport Beach, CA 92658 -8915 (714) 644 -3200 NOTICE OF EXEMPTION To: ❑ Office of Planning and Research 1400 Tenth Street, Room 121 ' Sacramento, CA 95814 County Clerk, County of Orange X ❑ Public Services Division P.O. Box 238 Santa Ana, CA 92702 P 0 STE D.9 FEB 2 B 2(i0% From: City of Ne14 UCrU Public Works Department 3300 Newport Boulevard - P.O. Box 1768 Newport Beach, CA 92658 -8915 (Orange County) Date received for filing at OPR: Name of Project: Assessment District No. 86 Project Location: Peninsula Point, Newport Beach, CA Specific: Alley bounded by Ocean Blvd., Channel Rd., °G" St. ce the ocean front Project Location -City: Newport Beach Project Location - County: Orange Project Description: The project consists of an assessment district to underground existing overhead utilities. Exempt Status: (check one) ❑ Ministerial (Sec. 21080(b)(1);15268); ❑ Declared Emergency (Sec. 21080(b)(3); 15269(a)); ❑ Emergency Project (Sec. 21080(b)(4); 15269(b)(c); Categorical Exemption. State type and section number. Class 2: Replacement and reconstruction; Section 15302. ❑ Statutory Exemptions. State code number: ❑ General Rule (Sec. 15061(b)(3)) Reasons why project is exempt: The Secretary for Resources has found that conversion of overhead electric utility distribution system facilities to underground locations where the surface is restored to the condition prior to undergrounding does not have a significant effect on the environment. Name of Public Agency Approving Project: City of Newport Beach Date of Approval: Name of Person or Agency Carrying Out Project: Newport Beach Public Works Department Contact Person: Dick 11offstadt Title: Development Engineer Signature: Tel.No. (949) 644 -3311 Date: -2 --Z 0 • F:\USERS\PLMSHAREM] FORMS \NEG - DEC \OOOEXMPT.DOC