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HomeMy WebLinkAbout18 - Assessment District 75 - Balboa Business DistrictCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. is April 27, 2004 TO: Mayor and Members of the City Council FROM: Public Works Department Patrick Arciniega, Associate Engineer 949 - 644 -3311 parciniega@city.newport-beach.ca.us SUBJECT: UNDERGROUNDING UTILITIES IN PROPOSED ASSESSMENT DISTRICT NO. 75 BALBOA BUSINESS DISTRICT AND DESIGNATION OF THIS AREA AS AN UNDERGROUND UTILITIES DISTRICT RECOMMENDATIONS: 1. Open public hearing on the formation of Assessment District No. 75. 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. 2004 - _ approving contracts for utility improvements. b. Adopt Resolution No. 2004 - _ declaring the results of the ballot tabulation, confirming the assessment, ordering the acquisition of improvement; approving the Assessment Engineer's Report, and designating the area an Underground Utilities District for Assessment District No. 75 Balboa Business District. 6. Approve a Budget Amendment in anticipation of the formation and approval of Assessment District No. 75. The proposed Budget Amendment will increase revenue estimates by $1,141,671.00 and increase expenditure appropriations by $1,039,079.00. The difference of $100,227.00 will be utilized to establish a bond reserve of approximately $60,522.00 and $42,071.00 will be utilized to reimburse the City for past assessment engineering and design expenditures related to this district. This Budget Amendment also appropriates $55,030 for the related assessment on City owned property. 7. If desired, abandon the proceedings SUBJECT: Undergrounding Utilities In Proposed Assessment District No. 75 Balboa Business District and Designation of this Area as an Underground Utilities District April 27, 2004 Page 2 0 DISCUSSION On January 23, 2001 City Council authorized $54,800.00 for the design of underground utility plans and a Professional Services Agreement with GFB Friedrich & Associates for assessment engineering services for proposed Assessment District No. 75. This action was recommended by staff prior to formally receiving petitions from property owners representing 60 percent of the land area, normally requested by City Council. At that time, authorization was recommended prior to receiving petitions so that the Utility Underground District could be processed concurrently with the Balboa Village redevelopment project. Petitions have not been submitted, nor does staff feel they are likely to be submitted. The absence of petitions does not legally affect the formation of this District. On December 9, 2003, the City Council accepted a preliminary Engineer's Report for proposed Assessment District No. 75, adopted a Resolution of Intention to form the District, and set a public hearing on the Assessment District for January 27, 2004 (see attachment). The location of the proposed District and overhead facilities to be removed is shown on the attached sketch. Action on the District will be taken after the public hearing is closed and the ballots are counted. On January 15, 2004, 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 by the private property owners. A Public Hearing was previously held for this District on January 27, 2004. The district failed at this time with a vote of 45.98% for the district and 54.02% against. Due to the amount of public interest in seeing this district move forward, including from property owners who voted against the district on January 27, 2004, this project went to City Council on March 9, 2004 for adoption of a Resolution of Intention to set a Public Hearing date of April 27, 2004 and ordering the intention of assessment ballot procedure to form this district. There is no legal restriction to prevent bringing this matter to a Public Hearing again. The Proposition 218 Omnibus Implementation Act, which supercedes the hearing, noticing and ballot requirements of the 1913 and 1931 Acts, does not contain a one -year prohibition period. The total cost of the District is $1,210,440.38, which 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 the City Attorney and the Bond Counsel have determined that underground utility districts are undertaken at the request of the SUBJECT: Undergrounding Utilities In Proposed Assessment District No. 75 Balboa Business District and Designation of this Area as an Underground Utilities District April 27, 2004 Page 3 • 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) will require 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 bonds, if necessary, to pay Edison within 60 days after SCE notifies the City. The ITCC Tax associated with this District is approximately $68,768.63, 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 used a 'modified front footage' method of apportioning assessments within this District based on the variety of land uses and the similarity of lot width street frontage. The parcels and lots are assessed relative to a "standard" residence (27 feet of frontage) that receives a full measure of benefit within the Assessment District. Due to the fact that there are areas within the District that have varying degrees of utilities that are overhead and underground, the Assessment Basis is therefore divided into three parts to assess properties only for the facilities necessary to underground. This three part formula takes into consideration the land use, number of facilities to underground and lot frontage. In no case has an assessment been imposed on any lot that exceeds the • reasonable cost of the proportional special benefit conferred on that lot. 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 (attached). The estimated individual parcel assessment without the ITCC tax component ranges from $0.00 to $51,066.81, with the average assessment being $12,219.39. The estimated assessment with the ITCC tax component ranges from $0.00 to $54,393.83, with the average assessment being $13,015.49. Adoption of these Resolutions will also designate this area as an Underground Utilities District per Chapter 15.32 of the Municipal Code of the City of Newport Beach. Environmental Review This project qualifies for a Class 2 California Environmental Quality Act (CEQA) exemption under Section 15302, item "d" of the Implementing Guidelines as follows: "Conversion of overhead electric utility distribution system facilities to underground including connection to existing overhead electric utility distribution lines where the surface is restored to the condition existing prior to the underground ing." Public Notice for this Public Hearing was mailed out on March 12, 2004 to provide a minimum 45 -day noticing to property owners within the proposed district boundary. SUBJECT: Undergrounding Utilities In Proposed Assessment District No. 75 Balboa Business District and Designation of this Area as an Underground Utilities District April 27, 2004 Page 4 Funding Availability: Upon formation and approval of the District, funding will be provided by property owner contributions and bonded assessments. See attached Budget Amendment. Prepared by: Patri . Arcin66a Project Engineer Submitted by: St en G. ad ublic Works Director Attachments: Resolution Approving Contracts for Utility Improvements Resolution Declaring Results of Ballot Tabulation March 9, 2004 Council Report Sketch Engineers Report SBC Agreement Edison Agreement Budget Amendment u 0 • CITY OF NEWPORT BEACH RESOLUTION NO. 2004 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH APPROVING CONTRACTS FOR UTILITY IMPROVEMENTS FOR ASSESSMENT DISTRICT NO. 75 (BALBOA BUSINESS DISTRICT) 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. 75 (BALBOA BUSINESS DISTRICT) (hereinafter referred to as the "Assessment District "); and 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; and 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 $304,422.00 SBC - letter agreement $548,000.00 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 27th day of April 2004. AYES: NOES: ABSENT: ABSTAIN: ATTEST: Mayor RESOLUTION NO. 2004 . A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DECLARING THE RESULTS OF THE BALLOT TABULATION, APPROVING THE ASSESSMENT ENGINEER'S REPORT, CONFIRMING ASSESSMENTS FOR ASSESSMENT DISTRICT NO. 75 (BALBOA BUSINESS DISTRICT), ORDERING THE ACQUISITION OF IMPROVEMENTS, AND DESIGNATING THE AREA AN UNDERGROUND UTILITIES DISTRICT WHEREAS, this City Council has previously adopted its Resolution of Intention and initiated proceedings for the 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. 75 (Balboa Business District) (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 "); and 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; and WHEREAS, this City Council further finds that the 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; and WHEREAS, the Report, as preliminarily approved, contained all the matters and items called for pursuant to the provisions of the Improvement 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 Improvement Act, Article XIIID, and the Implementation Act are referred to herein collectively as the "Assessment Law "), 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 of the public hearing all ballots submitted pursuant to the Assessment Law were tabulated, all in the manner provided by the Assessment Law; and WHEREAS, atthis 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; and 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 are hereby overruled and denied. BALLOT TABULATION PURSUANT TO ARTICLE MID 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 Engineer's 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. 2 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 Engineers Report presented and considered at the public hearing. ASSESSMENT ENGINEER'S REPORT SECTION 6. The Assessment Engineers 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 Engineers 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, including the portion for possible federal tax liability, as authorized by these proceedings and the Assessment is Law. 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 Engineers Report. RECORDATION OF ASSESSMENT SECTION 8. The City Clerk shall forthwith deliver to the Superintendent of Streets the assessment, together with the diagram attached thereto and made a part thereof, as confirmed, with a 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 for that 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 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. i 3 MAILED NOTICE SECTION 10. Upon recordation of the diagram and assessment, a notice shall be mailed to each owner of real property within the Assessment District at the owner's 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. 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 the 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 bythe assessment roll and that said entry then shall be made each year during the life of the bonds for the proceedings for the 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 to collect and maintain records of the 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 for the expenses of making such collections. This direction is specifically made pursuant to the authorization of M 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 forthe payment ofcosts 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 at a regular meeting of the City Council of the City of Newport Beach, held on the 27th day of April, 2004, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: City Clerk 0 CITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 16 March 9, 2004 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Public Works Department Patrick Arciniega 949 - 644 -3311 parcineiga @city.newport- beach.ca.us SUBJECT: PROPOSED ASSESSMENT DISTRICT NO. 75 - BALBOA BUSINESS DISTRICT (AREA BOUNDED BY OCEANFRONT BOULEVARD, ADAMS STREET, EDGEWATER PLACE, AND 'A' STREET) FOR UNDERGROUNDING UTILITIES RECOMMENDATIONS: I. Adopt the following Resolutions for Proposed Assessment District No. 75: a. Resolution No. 2004- _ declaring intention to order the construction of certain improvements in proposed Assessment District No. 75; 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 designating the area an underground utilities district. b. Resolution No. 2004- giving preliminary approval to the Report of the assessment engineer, setting the time and place for a public hearing as April 27, 2004; and ordering the intention of assessment ballot procedure for Assessment Distict No. 75. HISTORY: On January 23, 2001 City Council authorized $54,800.00 for the design of underground utility plans and a Professional Services Agreement with GFB Friedrich & Associates for assessment engineering services for proposed Assessment District No. 75. This action was recommended by staff prior to formally receiving petitions from property owners representing 60 percent of the land area, normally requested by City Council. At that time, authorization was recommended prior to receiving petitions so that the Utility Underground District could be processed concurrently with the Balboa Village redevelopment project. Petitions have not been submitted, nor does staff feel they are likely to be submitted, their absence does not legally affect the formation of this District. A Public Hearing was previously held for this District on January 27, 2004. The district failed at this time with a vote of 45.98% for the district and 54.02% against. SUBJECT: Proposed Assessment District No. 75 (Balboa Business District) for Undergrounding Utilities March 9. 2004 Page 2 Due to the amount of public interest in seeing this district move forward, including from property owners who voted against the district on January 27, 2004, this project is being recommended again for adoption of a Resolution of Intention to set another Public Hearing date and ordering the intention of assessment ballot procedure to form this district. There is no legal restriction to prevent bringing this matter to a Public Hearing again. The Proposition 218 Omnibus Implementation Act, which supercedes the hearing, noticing and ballot requirements of the 1913 and 1931 Acts, does not contain a one -year prohibition period. DISCUSSION: Proposed Assessment District No. 75 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 their associated proceedings. The procedure being used to create the Assessment District is outlined in the Municipal Improvement Act of 1913. Bonds issued 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. 75 is estimated as follows: ITEM ESTIMATED COST Estimated Cost of Construction $937,664.00 Estimated Incidental Costs and Expenses $117,875.00 Estimated Financing (Bond) Costs $114,598.84 Federal Income Tax Component of Contribution (ITCC) $68,768.63 Estimated Total Cost: $1,238,906.47 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 since underground utility districts are undertaken at the request of the community for purposes of community aesthetics and public safety, and 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. In the event the Internal Revenue Service (IRS), State, City and /or local government taxing authority determines that this project is taxable, Southern California Edison (SCE) will require the City to reimburse the full amount of the determined tax liability, plus interest, penalties, fees, and related costs. In that case the City may need to sell a second issue of the bonds, if necessary, to pay SCE within 60 days after they notify the City of Newport Beach. The estimated ITCC tax amount is $68,768.63. r -1 0 \J • C� SUBJECT: Proposed Assessment District No. 75 (Balboa Business District) for Undergrounding Utilities March 9. 2004 Page 3 The City Attorney's Office has reviewed SCE's request to have the preceding statement included in the Assessment District Report. It was determined that the City would not 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. 75: • 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 March 9, 2004 April 15, 2004 April 27, 2004 September 2004 January 2005 May 2005 August 2005 September 2005 The Assessment Engineer chose a `modified front footage' method of apportioning assessments within this District based on the variety of land uses and the similarity of lot width street frontage. The parcels and lots are assessed relative to a "standard" residence (27 feet of frontage) that receives a full measure of benefit within the Assessment District. Due to the fact that there are areas within the District that have varying degrees of utilities that are overhead and underground the Assessment Basis is divided into three parts to assess properties only for the facilities necessary to underground. This three -part formula takes into consideration the land use, number of facilites to underground and lot frontage. In no case has an assessment been imposed on any lot that exceeds the reasonable cost of the proportional special benefit conferred on that lot. The estimated assessment without the ITCC tax component ranges from $919.20 to $51,066.81, with the average assessment being $9,380.07. The estimated assessment with the ITCC tax componenet ranges from $979.09 to $54,393.83, with the average assessment being $9,991.18. SUBJECT: Proposed Assessment District No. 75 (Balboa Business District) for Undergrounding Utilities March 9, 2004 Page 4 Environmental Review: A Notice of Exemption was completed October 17, 2003 and filed with the County Recorder on October 17, 2003. A Certificate of Environmental Proceedings was completed February 27, 2004. Prepared by: Patrick L. Arciniega Associate Engineer Attachments: Submitted by: Stephen G. Barium ~ Public Works Director 1. Exhibit Showing District Boundaries 2. Resolution Of Intention 3. Resolution Passing On Report Of Assessment Engineer, Setting Public Hearing, and Ordering Initiation Of Assessment Ballot Procedures 4. Engineer's Report Pi • �LH Er�9 S` 0 t °u �`e 'f2�J Ln r, U H Q W 0 C4 C. 0 0 0 N ZE U Q J N O 'fir 2 �oZ • o z � Q ti z 0 n z `4 Q Q w o U O a W 07 �e 0 z . i 4� 1• W q w q O w s > w o Z Z w U C Q q N l4 A W Z Z Z p N N J F Z C O O Q S q q q C yNj °m 33O¢ Z I 1 I w i • o 10 J I 1 13d 1m' I I I I 1 I u O m J F- w NIVW NOIJNIHSVM WIVd I I I I 1 1 1 I I I I I 1 1 I ENGINEER'S REPORT for UTILITY UNDERGROUNDING ASSESSMENT DISTRICT NO. 75 (Balboa Business District) for the CITY OF NEWPORT BEACH Preliminary: March 9, 2004 Confirmed: April 27, 2004 • • ENGINEER'S "REPORT" CITY OF NEWPORT BEACH ASSESSMENT DISTRICT NO. 75 (Balboa Business District) TABLE OF CONTENTS Citations and Contents of Report 1 PART I - PLANS AND SPECIFICATIONS 4 PART II - ESTIMATE OF COSTS 5 PART III - ASSESSMENT ROLL 7 EXHIBIT IA - 1931 ACT TABLE OF VALUES IA -1 (Follows Page 9) EXHIBIT 1B - DEBT LIMIT VALUATION 10 EXHIBIT "A" - METHOD AND FORMULA OF ASSESSMENT SPREAD 11 PART IV - ANNUAL ADMINISTRATIVE ASSESSMENT 17 PART V - BOUNDARY MAP AND ASSESSMENT DIAGRAN 18 PART VI(A) - DESCRIPTION OF WORKS OF IMPROVEMENT, TIME ESTIMATE 19 PART VI(B) - RIGHT -OF -WAY CERTIFICATE 21 PART VI(C) - CERTIFICATE OF COMPLETION OF ENVIRONMENTAL PROCEEDINGS 22 EXHIBIT II - ASSESSMENT ROLL (Follows Page 22) II -1 0 J AGENCY: CITY OF NEWPORT BEACH • PROJECT: UTILITY UNDERGROUNDING ASSESSMENT DISTRICT NO. 75 (Balboa Business District) TO: CITY COUNCIL ENGINEER'S "REPORT" PURSUANT TO THE PROVISIONS OF SECTION 10204 OF THE STREETS AND HIGHWAYS CODE 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, the "Special Assessment Investigation, Limitation and Majority Protest Act of 1931 ", being Division 4 of said Streets and Highways Code, and Section 4(b) of Article XIIID of the Constitution of the State of California, and in accordance with the Resolution of Intention, being Resolution No. 2004 -21, adopted by the CITY COUNCIL of the CITY OF NEWPORT BEACH, STATE OF CALIFORNIA, in connection with the proceedings for ASSESSMENT DISTRICT NO. 75, (Balboa Business District) (hereinafter referred to as the "Assessment District "), I, JOHN A. FRIEDRICH, authorized representative of GFB- FRIEDRICH & ASSOC., INC., the duly appointed ASSESSMENT ENGINEER, submit herewith the "Report" for the Assessment District, consisting of five (5) parts as follows: PART Plans and specifications for the proposed improvements. Said plans and specifications are hereby incorporated into and by this reference made a part of this Report. PART II An estimate of the cost of the proposed works of improvement, including capitalized interest, incidental costs and expenses in connection therewith. PART III This Part shall consist 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. • 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. C. The total true value, as near as may be determined from the latest Assessor's roll, of the parcels of land and improvements which are proposed to be assessed. D. Exhibit IA indicates the total of the proposed assessment combined with any previously unpaid assessment on any parcel of land in the proposed district. 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 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. PART VI This Part consists of the following information: A. Description of the work for the proposed improvements. B. Right -of -way certificate. C. Environmental certification. Dated this 9M day of i 20 z�4 FR/ GFB- FRIEDRICH & ASSOC., INC. No. C27861 .�c Exp. 3 /31/06 A. CIVIL. �� ASSESSMENT ENGINEER cr CA-A 2 Preliminary Approval by the CITY COUNCIL of the CITY OF NEWPORT BEACH, California, on the r� day of � �, / ✓ ' , 20 0 . 0 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 , 20 CITY CLERK CITY OF NEWPORT BEACH STATE OF CALIFORNIA 3 0 0 11 ENGINEER'S "REPORT" PART CITY OF NEWPORT BEACH ASSESSMENT DISTRICT NO. 75 (Balboa Business District) PLANS AND SPECIFICATIONS The plans and specifications which describe the general nature, location, and extent of the improvements for this Assessment District are filed in the office of the City Clerk and in the office of the Public Works Department; and are hereby incorporated into this "Report" by reference as if attached. 10 ENGINEER'S "REPORT" PART H CITY OF NEWPORT BEACH ASSESSMENT DISTRICT NO. 75 (Balboa Business District) COST ESTIMATE Preliminary Estimate Confirmed Costs without with Assessment SCE ITCC Tax SCE ITCC Tax w/ SCE ITCC Tax A. CONSTRUCTION COSTS 1. Southern California Edison Structures $206,213.00 $206,213.00 $206,213.00 Underground Cabling & Equipment $113,209.00 $113,209.00 $113,209.00 (Less Design Engineering Advance) ($15,000.00) ($15,000.00) ($15,000.00) SCE ITCC Tax (18.43 %)* 68,768.63 68,768.63 Subtotal, SCE Costs w/o ITCC Tax $304,422.00 Subtotal, SCE Costs w/ ITCC Tax $373,190.63 $373,190.63 2. SBC Rough Estimate $548,000.00 $548,000.00 $548,000.00 Subtotal, SBC Costs $5%8_,000.00 $548.000.00 $54$000.00 Subtotal, Construction $852,422.00 $921,190.63 $921,190.63 Construction Contingencies 2. 5 42.00 85142.00 72,455,87 TOTAL CONSTRUCTION COSTS $937,664.00 $1,006,432.63 $993,646.50 B. INCIDENTAL COSTS 1. Design Engineering (SCE) $15,000.00 $15,000.00 $15,000.00 2. Design Engineering (SBC) 7,400.00 7,400.00 7,400.00 3. Assessment Engineering 31,175.00 31,175.00 31,175.00 4. Construction Inspection 9,900.00 9,900.00 9,900.00 5. City Administration 11,400.00 11,400.00 11,400.00 6. Printing, Advertising, Notices 4,000.00 4,000.00 4,000.00 7. Bond Printing, Registration & Servicing 1,000.00 1,000.00 1,000.00 8. Filing Fees 500.00 500.00 500.00 9. Bond Counsel 20,000.00 20,000.00 20,000.00 10. Paying Agent 2,500.00 2,500.00 2,500.00 11. Contingencies 15 (100.00 15,000.00 1,953.14 Subtotal, Incidentals $117,875.00 $117,875.00 $104,828.14 Subtotal, Construction & Incidentals $1,055,539.00 $1,124,307.63 $1,098,474.64 (Continued - Next Page) 0 0 9 LJ 0 E * Adelphia Cable is required to pay for undergrounding through their Franchise Agreement with the City. ** ITCC = Income Tax Component of Contribution (18.43 % of SCE Costs). [Section 18(b) of IRS Code] * ** 2nd bond issue for Federal Income Tax Component of Contribution (ITCC) - 6.12% of the Preliminary Estimate "with SCE ITCC Tax" Balance to Assessment which will be issued only if the Federal Governmen implements the tax. The 2nd bond issue (ITCC issue) amount is the difference between the Balance to Assessment in the "with ITCC Tax" column above and the Balance to Assessment in the "without ITCC Tax" column above. The Confirmed Assessment per parcel without the SCE ITCC Tax may be seen in Exhibit II - Assessment Roll (1 st Bond Issue), attached hereto. ri ENGINEER'S "REPORT" PART II CITY OF NEWPORT BEACH ASSESSMENT DISTRICT NO. 75 (Balboa Business District) COST ESTIMATE Preliminary Estimate Confirmed Costs without with I Assessment SCE ITCC Tax SCE ITCC Tax w/ SCE ITCC Tax Subtotal Forward, Construction & Incidentals $1,055,539.00 $1,124,307.63 $1,098,474.64 C. FINANCING COSTS 1. Bond Discount (2.5 %) $29,078.21 $30,972.66 $30,261.01 2. Bond Reserve (5 %) 58,156.42 61,945.32 60,522.02 3. Capitalized Interest (1.75 %) 20,354.75 21,680.86 21,182.71 Subtotal, Financing Costs $107,589.38 $114,598.84 $111,965.74 TOTAL DISTRICT COSTS $1,163,128.38 $1,238,906.47 $1,210,440.38 D. CASH CONTRIBUTION $0_00 0.00 0.0 E. BALANCE TO ASSESSMENT $1,163,128.38 $1,238,906.47 $1,210,440.38 * Adelphia Cable is required to pay for undergrounding through their Franchise Agreement with the City. ** ITCC = Income Tax Component of Contribution (18.43 % of SCE Costs). [Section 18(b) of IRS Code] * ** 2nd bond issue for Federal Income Tax Component of Contribution (ITCC) - 6.12% of the Preliminary Estimate "with SCE ITCC Tax" Balance to Assessment which will be issued only if the Federal Governmen implements the tax. The 2nd bond issue (ITCC issue) amount is the difference between the Balance to Assessment in the "with ITCC Tax" column above and the Balance to Assessment in the "without ITCC Tax" column above. The Confirmed Assessment per parcel without the SCE ITCC Tax may be seen in Exhibit II - Assessment Roll (1 st Bond Issue), attached hereto. ri ENGINEER'S "REPORT" • PART III CITY OF NEWPORT BEACH ASSESSMENT DISTRICT NO. 75 (Balboa Business District) ASSESSMENT ROLL WHEREAS, on March 9 , 20 04 , the CITY COUNCIL of the CITY OF NEWPORT BEACH, CALIFORNIA, did, 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, and as amended, the "Special Assessment Investigation, Limitation and Majority Protest Act of 1931 ", being Division 4 of said Streets and Highways Code, and Article XIIID of the Constitution of the State of California, adopt its Resolution of Intention No. 2004 -21 , for the 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. 75 (Balboa Business District), hereinafter referred to as the "Assessment District "); and, . WHEREAS, said Resolution of Intention, as required by law, did direct GFB- Friedrich & Assoc., Inc., as Assessment Engineer, to make and file a "Report", consisting of 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, and E. The description of the improvements proposed to be constructed under these proceedings. 7 For particulars, reference is made to the Resolution of Intention as previously adopted. NOW, THEREFORE, I, JOHN A. FRIEDRICH, a licensed engineer of GFB- Friedrich & Assoc., Inc., the duly appointed Assessment Engineer, pursuant to the "Municipal Improvement Act of 1913" and Article XIIID of the Constitution of the State of California, do hereby submit the following: I, pursuant to the provisions of law and the Resolution of Intention, 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 to the identification of said parcels, reference is made to the Assessment Diagram, a copy of which is attached hereto. 2. As required by law, a Diagram is hereto attached, showing the Assessment District, as well as the boundaries and dimensions of the respective parcels and subdivisions of land within said District as the same existed at the time of the passage of said Resolution of Intention, each of which subdivisions of land or parcels or lots, respectively, have been given a separate number upon said Diagram and in said Assessment Roll. • 3. The subdivisions and parcels of land with numbers therein as shown on the respective Assessment Diagram as attached hereto correspond with the numbers 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, and the last installment of said bonds shall mature a maximum of THIRTY -NINE (39) YEARS from the 2nd 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 the requirements contained in Article XIIID, and by further direction and order of the City Council, I hereby make 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: THIS SPACE INTENTIONALLY LEFT BLANK E CJ THIS SPACE INTENTIONALLY LEFT BLANK 0 E AS PRELIMINARILY AS • APPROVED CONFIRMED Estimated Cost of Construction: $ 1,006,432.63 $ 993,646.50 Estimated Incidental Costs and Expenses: $ 117,875.00 $ 104,828.14 Estimated Financing (Bond) Costs: $ 114,598.84 $ 111,965.74 Estimated Total Cost: $ 1,238,906.47 $ 1,210,440.38 Estimated Contribution: $ 0.00 $ 0.00 Balance to Assessment: $ 1,238,906.47 $ 1,210,440.38 For particulars as to the individual assessments, reference is made to Exhibit II attached hereto. 6. The Method and Formula of Assessment Spread is as set forth in Exhibit "A ", which is attached hereto, referenced and so incorporated. CJ THIS SPACE INTENTIONALLY LEFT BLANK 0 E 0 • Q O\ r It 0 0 0 O O O O O\ O\ O\ O\ O\ v1 O M M M M M �c w . It 0 0 0 O O O O O O O O O ,Q C M �c �c �c �c �c M O` O M� O O O O O O O O` O` O` O` O` O w w w w w 7 �c O\ 7 O\ 65 65 65 69 65 69 69 r r r r r y O r �c �c �c �c �c M �c r M w O\ O\ O\ O\ O\ ,I ,Z ,Z ,Z 69 69 69 69 69 C m ^ 65 . . . .--i . 65 C 65 69 69 65 65 65 65 65 65 65 Cjh Q m 7 M M 7 r N 0M0 tr�1 �/1 r r O) N O Ri , N 7 C C 0M�1 tM1 tM1 tM1 tM1 ,c W- 0 0 0 0 0 0 0 0 0 0 0 0 �c �c M O` O M 0 0 0 0 0 0 0 O` O` O` O` O` O w w w w w It �c O` 7 O` 65 65 65 65 65 65 65 r r r r r h O r �D �C '21 '21 'CL M 'c r M o0 O` O` O` O` O` r h M w It It It It It l— O O, l— It 69 69 69 69 69 � h 69 69 N 69 69 69 Q. 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O O 'z' N N Ncn Mi Mi Mi .Ni .�-i — .Ni .�-i .�-i .�-i .�-i .�-i .�-i .�-i .�-i .�-i — — — .�-i — .�-i — N U O .Mi .Mi .Mi — — i — — i — — i — ; — Q cl O 7 7 7 7 7 7 7 7 7 7 V 7 7 7 C) 7 7 7 7 V 7 7 7 st _ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 D m O\ O N M \O l— m O N M m O\ W z m m m m m m m m m m Q v1 0 11 0 \ \ \� \ o u^ � \\} R@Q4 G wr \\ \ \ \\ \ �< m ® m 5 \ s$g= 3 {} \){ s \ Ln /2< a ° CD \ \ } ( ® / /�� \ / \\ � f / / � s \ G ( E� )/ 2 CN � ®} \ 0>u \(; / ON e4 / § ƒ / 60 \ rn ® }f { })\ k }\\ J ) \ @ ~� wZ a � a < 0 11 0 • CITY OF NEWPORT BEACH ASSESSMENT DISTRICT No. 75 (Balboa Business District) Exhibit IB DEBT LIMIT VALUATION A. Estimated Balance to Assessment $1,210,440 B. Unpaid Special Assessments 0.00 Total A & B $1,210,440 C. True Value of Parcels $60,120,094 ** Average Value to Lien Ratio 50: 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, does not exceed one -half (1/2) of the true value of the parcels proposed to be assessed. DATED: 20 GFB- FRIEDRICH & ASSOC., INC. • HN A. FRIED CH, P.E. ASSESSMENT ENGINEER 10 ENGINEER'S "REPORT" EXHIBIT "A" • CITY OF NEWPORT BEACH ASSESSMENT DISTRICT NO. 75 (Balboa Business Disrricr) METHOD AND FORMULA OF ASSESSMENT SPREAD Article XIIID requires and the statutes provide that assessments, as levied pursuant to the provisions of the "Municipal Improvement Act of 1913 ", must be based on the special benefit that the properties receive from the works of improvement. It is necessary that the property owners receive a special and direct benefit distinguished from that of the general public. The law does not specify the method or formula that should be used in any special assessment district proceedings, and that responsibility rests with the Assessment Engineer, who is appointed for the purpose of making the analysis of the facts and determining the correct apportionment of the assessment obligation. The goal is to apportion the assessments to each parcel in direct proportion with the special benefit that the parcel will receive from the improvements. For these proceedings, GFB- Friedrich & Assoc., Inc. has been appointed to • perform the functions of Assessment Engineer. The special benefits that inure to the properties within the boundary of Assessment District No. 75 are threefold; first, the undergrounding of existing overhead electrical and telephone lines, the removal of supporting poles, and the construction of a new and improved underground electrical and telephone system will result in enhanced service, reliability and capacity; second, the improvements increase safety; and third, removal of existing poles and overhead wires will aesthetically enhance all parcels adjacent to the improvements. There are a variety of land uses within the District boundary. Because many of the parcels receiving special benefit from the proposed improvements contain residences with similar lot widths fronting on their streets, a "modified front footage" method of apportioning assessments is being used for this Assessment District. If a lot or parcel has a structure with more than one story, the formula is adjusted to reflect the benefit received by type of use on said lot or parcel with multilple residential units or commercial uses. The modified front footage method of spreading assessments generally reflects the size of the lot or parcel, which in turn reflects the level of use of the facilities, and therefore the special benefit that they receive. The modified front footage method also is a measure of the amount of utility trench crossing in front of said lot or parcel. It is reasonable and our conclusion to spread assessments using a modified front footage formula where each parcel or lot is assessed relative to a "standard" residence (27 feet of frontage) within the Assessment District that receives a full • measure of benefit (all three parts of special benefit as described below). The construction cost and proportionate share of the incidental costs for bid items will, therefore, be spread on a 11 • modified front footage basis to those areas or subareas of the Assessment District that benefit from the works of improvement. Because the benefit from the improvements is specific to each parcel, there is no general benefit component that is received by parcels outside of the Assessment District boundary or by the general public. The special benefit received from the above -cited works of improvement is estimated to be in proportion to the modified front footage allocated to each parcel as described below. • In the Balboa Business District, there are a variety of existing conditions regarding electric, telephone and overhead utility lines with poles. For example, some lots already have underground electric service but not underground telephone service; other lots already have both underground electric and telephone services, but have overhead lines that require undergrounding; other lots require all services to be undergrounded; and still others have all of their services and utility lines undergrounded already. Apparently, some of the developers of the lots within the District paid to have the utilities undergrounded as part of the development process while others did not. Consequently, in order to assess properties only for the facilities or work necessary, the modified front footage formula used in this District is divided into 3 equal parts; 1) underground electric service (E) is required, 2) underground telephone service (T) is required, and 3) overhead utility lines (OLR) must be undergrounded. The modified front footage formula to be used throughout the Assessment District is given below with one, two, three or none of the three parts considered for each lot or condominium. Please refer to the Assessment Diagram for the location of existing overhead facilities. Land Use Code 14 15 29 30 31 32 34 38 39 52 76 85 88 110 121 122 * 125 Land Use Recreational, Amusement Park Residential, Apartment Commercial, Commercial Building Commercial, Commercial Condominium Commercial, Commercial Lot Commercial, Miscellaneous Uses Residential, Condominium Residential, Duplex Miscellaneous, Exempted Fully Commercial, Hotel Vacant, Multi Family Acreage Commercial, Office Building Commercial, Parking Lot Commercial, Restaurant Commercial, Shopping Center - Supermarket Residential, Single Family Residential Commercial, Storage - Warehouse 12 Assessment Basis Front Footage - 3 x # of Facilities 1.5 x Front Footage _ 3 x # of Facilities Front Footage + 3 x # of Facilities Front Footage + 3 x # of Facilities Front Footage + 3 x # of Facilities Front Footage _ 3 x # of Facilities 0.8 x Front Footage _ 3 x # of Facilities 1.0 x SFR + 3 x # of Facilities Front Footage + 3 x # of Facilities 2.0 x Front Footage + 3 x # of Facilities Front Footage + 3 x # of Facilities Front Footage + 3 x # of Facilities 0.5 x Front Footage _ 3 x # of Facilities Front Footage + 3 x # of Facilities Front Footage + 3 x # of Facilities Front Footage (27' min) _ 3 x # of Facilities Front Footage + 3 x # of Facilities Land Use • Code Land Use Assessment Basis 126 Commercial, Store Building 127 Commercial, Store Franchise 128 Commercial, Stores & Offices 129 Commercial, Stores & Residential 133 Recreational, Theater — Walk in 135 Residential, Triplex Front Footage + 3 x # of Facilities Front Footage +3 x # of Facilities Front Footage =3 x # of Facilities 1.5 x Front Footage + 3 x # of Facilities Front Footage + 3 x # of Facilities 1.0 x Front Footage -= 3 x # of Facilities * Basic assessment for a 27' wide single - family residential lot A service drop is defined as an electric service line and a telephone service line constructed to the property line of a parcel or lot. A single residential service drop is based on service to a "standard" residence with 27 feet of frontage. A service drop for a multiple -unit residential /apartment complex or a larger commercial use may require larger service lines to meet user demands. A lot with buried electrical and /or telephone transmission lines on two or more of it's sides shall only be assessed for one side frontage; said side frontage shall be the same side that is used to assess other nearby parcels with similar land uses. Said side is generally the side of the parcel represented by it's address. The rationale for this is that the buried transmission lines on the non - assessed side(s) of a parcel are necessary to make the entire underground utility system functional, and therefore constitutes a measure of special benefit for each of the parcels within the assessment district boundary. The costs for the installation of said non - assessed transmission lines are therefore shared by each property owner proportionately. In anticipation that a lot or parcel that receives no assessment or a partial assessment in this Assessment District has a residence or commercial building constructed on it in the future that requires electric and telephone service, the City in conjunction with the utility companies, will charge sufficient fees and construction costs to the property owner(s) of such a lot or parcel to effect equity with the other lots or parcels that received assessments for similar facilities in this Assessment District. Some or all of said fees and construction costs may be used to pay down the assessments on the other parcels within the Assessment District on a pro -rata basis. Some of the lots and parcels, identified by their Assessor Parcel Numbers, within the boundary of the proposed assessment district require special consideration, as follows: 13 • • Assessor • Parcel No. Land Use Description 048 - 121 -20 Residential, This parcel requires electric and telephone drops Duplex and utility line undergrounding, but will have a new pole and cable added at it's westerly property line. Therefore, it will receive a 34% reduction in it's assessment due to having a pole remaining. 048 - 121 -21 Residential, This parcel requires a telephone drop and utility Duplex line undergrounding only, but will have a new guy pole added at it's southeast corner. Therefore, it will receive a 20% reduction in it's assessment due to having a guy pole remaining. 048 - 121 -09 Residential, This parcel requires electric and telephone drops Commercial, Stores Triplex and utility line undergrounding, but will have a 048 - 135 -11 Residential, Duplex new guy pole added directly across the street. Therefore, it will receive a 20% reduction in it's assessment due to having a guy pole remaining. 932 - 160 -01 Residential, This series of condominium units is in a large through Condominiums three -story building. Fifty -four feet of overhead • 932 - 160 -24, inclusive utility line and two poles require undergrounding in the alley behind the building. Each condo- minium unit is being assessed for 1.80 feet of modified front footage to pay for their share of the cost of undergrounding said line and poles. 048 - 135 -02 Recreational- Theater 048 - 135 -03 Commercial, Stores 048 - 135 -07 Commercial, Hotel 048 - 135 -11 Residential, Duplex • Each of these parcels share an existing pole in the alley behind their buildings. Because this pole has no existing utility lines, it is reasonable and our conclusion to have each property be assessed for 9.00 equivalent front feet for the removal of the pole (OLR) and undergrounding of any equipment affixed to it (the properties identified by Assesor's Parcel No. 048 - 135 -03 and 048 - 135 -11 already have undergrounded electric (E) and telephone (T) services). Furthermore, the two other properties, identified by Assessor's Parcel Nos. 048 - 135 -02 and 048 - 135 -07, also require underground tele- phone service drops (T). Therefore, the two properties which require the pole removal and telephone service drops, and which each have at least 54 feet of frontage are each being assessed for 18.00 equivalent front feet for telephone service plus the aforementioned 9.00 equivalent front feet for the pole removal. 14 Several lots that front on the north side of Balboa Boulevard have wedge shapes. The average of the lot front and back lot dimensions is used to determine the front footage used in the • assessment formula. During the time that this Engineer's Report was being written, a variety of other assessment formulae were considered. Assessment units (AU) or Equivalent Dwelling Units (EDU) were considered as a method of spreading assessments. This is often a viable method of spreading assessments but was rejected because of the difficulty in assigning AU's or EDU's to the variety of land uses found on the lots and parcels within the proposed assessment district boundary. Acreage was rejected as a method of spreading assessments because of the difference in size among the lots within the District. The use of an acreage formula would not reflect the special benefit derived from undergrounded electrical and telephone improvements. In conclusion, it is my opinion that the assessments for the above - referenced Assessment District have been spread in direct proportion to the special benefits that each lot or parcel receives from the works of improvement. It is my further opinion that: a. The proportionate special benefit derived by each identified lot has been determined in relationship to the entirety of the cost of the construction of the works of improvement. b. No assessment has been imposed on any lot that exceeds the reasonable cost of the • proportional special benefit conferred on that lot. c. Only special benefits have been assessed. DATED: 20 GFB- FRIEDRICH & ASSOC., INC. / E • • R 15 is L J I, LA01)1] ? M. t���KI�SS , 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 2�M day of rr i 20MV yd6�--,7 CITY CLERK CITY OF NEWPORT BEACH STATE OF CALIFORNIA I, , as CITY CLERK of the CITY OF NEWPORT BEACH, CALIFORNIA, do hereby certify that the foregoing assessment, together with the Diagram attached thereto, was approved and confirmed by the City Council of said City on the day of , 20 CITY CLERK CITY OF NEWPORT BEACH STATE OF CALIFORNIA I, STEPHEN G. BADUM, P.E., 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 ,20 16 SUPERINTENDENT OF STREETS CITY OF NEWPORT BEACH STATE OF CALIFORNIA ENGINEER'S "REPORT" PART IV CITY OF NEWPORT BEACH ASSESSMENT DISTRICT NO. 75 (Balboa Business Dist icr) ANNUAL ADMINISTRATIVE ASSESSMENT A proposed maximum annual administrative assessment shall be levied on each parcel of land and subdivision of land with 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, Los Angeles, and Riverside 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. 0 17 ENGINEER'S "REPORT" PART V CITY OF NEWPORT BEACH ASSESSMENT DISTRICT NO. 75 (Balboa Business District) BOUNDARY MAP AND ASSESSMENT DIAGRAM Full -sized copies of the Boundary Map and the Assessment Diagram are on file in the Office of the City Clerk of the City of Newport Beach. Please refer to the following pages for reduced copies of said maps. As required by the Act, the Assessment Diagram shows the exterior boundary of the District and the assessment number assigned to each parcel of land that appears in the 1931 Act Table of Values (Exhibit IA) and the Assessment Roll (Exhibit II). The Assessor's parcel number is also shown for each parcel or lot as they existed at the time of the adoption of the Resolution of Intention and reference is hereby made to the Assessor's Parcel Maps of the County of Orange for the boundaries and dimensions of each parcel or lot within the District OR \ +a \| ;! / / : G to �—gTF§ � . � f �! - -- � k s & § � ZEE° �® «q \( ¥k (� 0 2 \ � : z ILL _ § \2 �» &» o� 7§ §§ q § � \ q - q k \/ / � • I 5 LO N O LO- LLI -2r0 Z si z L w LL r � V w 3 J Q i o1- R1 -v.o I mi U Lo- RI -P.o „ wm W LL O I I r1 -LL1 -w ~ m C6 I M F W a z S O o O0 I ZQ F F6N ¢ 3 � i W LL Z O Z LL Q O W N Z aw m ,O C c C U = LL UO �/ A 20 0 ! w/ 2 W O N U Q J F W N W N e�sse £ 133HS 33S i6 OBI S. 133815 NOIONIHSVM z A S 1 fC- 09l - tC- 091 -Lt6 y1101tl 1Y Jy NI $tl39 3 Lt- 091 -LC6 13Jnd b0 9935SY 335 I ¢ -091 -LC6 u -m I -voa 1 � 9 { -p9i -LC6 9t -091 -LC6 � ta- ai -a.o Q i � > 1 W LO- a. -a.o � J 0 O li M i m- ai -a•0 I �� i _i___� � 133815 I Hltld � I i� U �O i Q O m mJ m 1 n sc 1110N3N _ _ 133x15 ' SHUY IL- [ZI -Br0 I�c 50-I L16 WO 1 -aro '+Joe ".van 3 4 Z < 7 U ' w J n $ e SRI �r. �4 SI I,SI� J I i U Z z rn °e_ Caw » -.d w rn o�, LO- LLI -2r0 I I PO-LLI -Pr0 si 50- RAE -6r0 i 91- LLi -9r0 se -LLl -aro I s1- R1 -P.o I +o- LLI -fi.a i o1- R1 -v.o I t0- LLI -Br0 I 11- 2L1 -Bb '� I I Lo- RI -P.o „ � tl- Rl -v.o G 10 -LL1 -aro I I r1 -LL1 -w ~ ~ C6 I M 1110N3N _ _ 133x15 ' SHUY IL- [ZI -Br0 I�c 50-I L16 WO 1 -aro '+Joe ".van 3 4 Z < 7 U ' w J n $ e SRI �r. �4 SI I,SI� J I i U Z z rn °e_ Caw » -.d w rn o�, l0-Z[1 -p10 rl Ifi B �1l- L[1 - %0 60- SCI - %o I a m -sa - %o F CO- Kl -p10 � nl n I CO- S[+ - %p I Sb by -sn -pro I � LI- ZfI - %0 I j S6 +1 -OLC -Safi S6 I � N- OZS -S{6 I .� L[- OLS -SC6 I 61 Kf1 -pM ,p 0 n .SP G x .S6 'fi tt Cco .K m Sl y.fl w J � n I I 1 I 1 1 0 I C Q i W 1 J 1 � I I m V I Ir ' 133tl1S NIVW O I I 1 IZ Z Q Q Z Q! @ I O LL O m 1 w r J Q m D Y mi. 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W vl a �/� I d , m J I a d .LL .0:1 10wo �q O DrP De^ 8 - a a Sr sr z I— W LL ~� W mr J UU /V LL w m W LL L 2a COO j V' az o0 = ate 3fl) ° a O W W Z L_ W F W z MO LLZU Z 02 ¢ W aid as }O a° " 1-LL LLI ao I ° Va ENGINEER'S REPORT PART VI(A) CITY OF NEWPORT BEACH ASSESSMENT DISTRICT NO. 75 (Balboa Business District) DESCRIPTION OF WORKS OF IMPROVEMENT, TIME ESTIMATE The following improvements are proposed to be constructed and installed in streets and alleys roughly bounded by Adams Street, Ocean Front, "A" Street, and Bay Avenue in the City of Newport Beach. 1. Removal of 27 existing power and telephone poles, and addition of one utility pole and one guy pole at the periphery of the District. 2. Removal of all overhead service drops for both electric and telephone service. 3. Construction of approximately 2,308 linear feet of mainline underground power and telephone conduit, with appurtenant vaults, manholes and pullboxes. 4. Construction of underground cable television conduit with appurtenant facilities. 5. Construction of required service conduit and appurtenances to private property lines for 85 "standard" lots and 7 lots containing condominiums within the District. The improvements will be designed and constructed by the Southern California Edison Company (electric), SBC (telephone) and Adelphia (cable TV). The City of Newport Beach will inspect the work for conformance to applicable City standards and specifications. Once completed, the underground electric, telephone and cable TV facilities will become the property and responsibility of Southern California Edison, SBC and Adelphia respectively. 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 or easements to the points of connection on 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 six (6) months after the sale of bonds. Property owners will be required to provide necessary underground connections within 120 calendar 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 utility companies be directed to discontinue service to that property. Overhead facilities cannot be removed until all overhead service has been discontinued. 19 • • The general locations of the existing facilities to be undergrounded are shown on the Assessment Diagram in Part V of this 'Report ". THIS SPACE INTENTIONALLY LEFT BLANK 20 ENGINEER'S "REPORT" . PART VI(B) CITY OF NEWPORT BEACH ASSESSMENT DISTRICT NO. 75 (Balboa Business District) RIGHT -OF -WAY CERTIFICATE CITY OF NEWPORT BEACH COUNTY OF ORANGE STATE OF CALIFORNIA The undersigned hereby CERTIFIES UNDER PENALTY OF PERJURY that the following is true and correct. At all times herein mentioned, the undersigned was, and now is, the duly appointed SUPERINTENDENT OF STREETS of the CITY OF NEWPORT BEACH, CALIFORNIA. That there have now been instituted proceedings under the provisions of the "Municipal Improvement Act of 1913 ", being Division 12 of 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. 75 (Balboa Business District) (hereinafter referred to as the "Assessment District "), THE UNDERSIGNED STATES AND CERTIFIED AS FOLLOWS: That all easements, rights -of -way or land necessary for the accomplishment of the works of improvement for the above - referenced Assessment District have been obtained and are in the possession of the City. It is further acknowledged that works of improvement as proposed to be constructed within said Assessment District must be constructed within public rights -of -way, land or easements as owned by said City at the time of the construction of the works of improvement. EXECUTED this /,?day of /,�4c- , 20 0`Y, at Newport Beach, California. TEPHEN G. BADUM, P.E. SUPERINTENDENT OF STREETS CITY OF NEWPORT BEACH STATE OF CALIFORNIA 21 • ENGINEER'S "REPORT" PART VI(C) CITY OF NEWPORT BEACH ASSESSMENT DISTRICT NO. 75 (Balboa Business District) CERTIFICATION OF COMPLETION OF ENVIRONMENTAL PROCEEDINGS CITY OF NEWPORT BEACH COUNTY OF ORANGE STATE OF CALIFORNIA The undersigned, under penalty of perjury, CERTIFIES as follows: 1. The improvements to be constructed under the proceedings in Assessment District No. 75 are categorically exempt from the provisions of the California Environmental Quality Act (CEQA) under the provisions of Paragraph 15302, Class 2 (d) of "Guidelines For Implementation of the California Environmental Quality Act ", as adopted by the Secretary for Resources of the State of California, June 1992. 2. The undergrounding to be done under Assessment District No. 75 is categorically exempt from the requirement for the preparation of environmental documents under the California Environmental Quality Act guidelines because 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 the undergrounding, does not have a significant effect on the environment, and are declared to be categorically exempt. 3. A Notice of Exemption has been filed in the office of the County Clerk of Orange County, California. A copy of the Notice of Exemption marked Exhibit "C" is attached to this Report and is hereby made a part of this Report. 4. All environmental evaluation proceedings necessary for the formation of Assessment District No. 75 have been completed to my satisfaction, and no further environmental proceedings are necessary. EXECUTED this 450 day of /#5QAY 20 O , at Newport Beach, California. L,-STEPHEN ADUM, P.E. • DIRE OF PUBLIC WORKS CI F NEWPORT BEACH STATE OF CALIFORNIA 22 Exhibit "C" POSTED CI_ V OF NEWPORT BEAL3 OCT 1 72003 3300 Newport Boulevard - P.O. Box 1768 Newport Beach, CA 92658 -8915 Tom DALY, p (949) 644 -331 °Epm NOTICE OF EXEMPTION To: F-1 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 Lxe7mF,'T KEGorztk, EtaV. Gp� OFt TOM DALY, CS. FYI'iEC�PJcp ,Y' TOMDALY, :E%:1:'_D: From City of Newport Beach 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. 75 Project Location: Balboa Village, Newport Beach, CA Specific: Area bounded by Adams St., Edgewater Plc., A St., and West 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. Recorded in Official Records, County of Oram Tom Daly, Clerk - Recorder Exempt Status: (check one) FEE ❑ Ministerial (Sec. 21080(b)(1);15268); 200385001348 02.39pm 1011710: ❑ Declared Emergency (Sec. 21080(b)(3); 15269(a)); 90 83 Z01 ❑ Emergency Project (Sec. 21080(b)(4); 15269(b)(c); 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 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: Patrick L. 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C a A N v i L 11 � W O h d d o 7 O a H r v; a w o6 oo �c m o0 w a o Q b Q V C C ooc M M or0 ooc ooc in u� Ey q h O N b b O r h 0 0 00 h O ... C N C to N 69 69 H .y p 69 69 69 69 f9 69 69 69 69 69 N w z9 Q 9 N o� o M a e M M ry° e M C N to to N 69 69 to O 69 69 69 69 69 69 69 69 69 69 N N Vf o u O cn cn r a cn r r a M a C H r h �D DD DD DD b LT DD DD � LT V N y to O� r LT to r r to O aJ oo r �o 'C cn cn oo a o0 0o cn V: a � F U a C N oc .�-� �-� CO N lr9 CO ti 6�9 V U y vj vj vj vj vj vj vj vj vj vj -. F � �°, z z c Ln W c Ln a,p aaaaaaa xxx O O O Q wF°, o W to t=i to W to u O F F F F F F F U c U � h o0 00 0o as o N r oo v� a N a N cn a a y y v h M r r o in C O N C r O p y A fV N� in o0 r V N C o0 h .N. v V C to N ti '+ LT r V O O z b - Hl y M - .h- .h- .h- .h- .h- -- -- .h- yv O p .ti .ti .ti .ti .ti .ti .ti .ti .ti .ti ' N DD DD DD 00 DD DD DD DD DD DD 00 DD W m m�� a ¢ Z oNO oro 000o m a a a .y N C v u F II a F L N W E a v 0 P. C a A N v i L 11 � W O h Order# LE(11) 1106Q 3939 E. Coronado St. Anaheim, CA 92607 -1667 APPLICATION and LETTER OF AGENCY FOR CUSTOM WORK October 3, 2003 Order Number: LE(11) 1106Q Customer Billing Telephone Number: 949.644.9947 BILL TO: City of Newport Beach Department of Public Works Attn: Mr. Patrick Arciniega 3300 Newport Beach, CA 92658 -8915 DESCRIPTION OF CUSTOM WORK: This is in response to the City of Newport Beach's request to convert all aerial facilities within Underground Assessment District No. 75 to underground. This district included Adams St. to "A" St. between Ocean Front and Newport Bay. CHARGE FOR CUSTOM WORK: $555,400 Applicant requests that SBC act as its agent in performing the above - described custom work on Applicant's behalf. Applicant agrees to pay the charge(s) indicated above for such work. The charge(s) will be computed in accordance with SBC's ordinary accounting practices under the Uniform System of Accounts for Class A telephone companies and will include allocated costs for labor, engineering, materials, transportation, motor vehicles, tool and supply expenses and sundry billings from sub - contractors and suppliers for work and materials related to the job. Applicant agrees to make an advance payment of $548,000 prior to commencement of the work. This amount is less the deposit of $7,400 received on 3/28/02. Applicant agrees to pay the contract price as stated above plus any applicable taxes when the work is completed. If the applicant cancels the work prior to completion, Applicant agrees to pay SBC for the costs it has incurred in starting performance under the contract and before being notified to cease only. The price is guaranteed for 6 months from October 3, 2003. If the charges are not accepted within 120 days the order will be cancelled and a new order will need to be placed. The second estimate may be higher than the price that was originally quoted. ACCEPTED FOR CUSTOMER: Name: Company: Date: ACCEPTED FOR SBC: �- Title: Area Mgr (2Y-. Engineering Date: I D— & 1005 56C W \L-L }40t,,1oiz C1A1M. /.r<-r 0 eV- Vn1/,T:59M1_ilR'rC s)•I'A-04 0 0 AGREEMENT FOR REPLACEMENT • OF OVERHEAD WITH UNDERGROUND DISTRIBUTION FACILITIES (Installation by Utility) THIS AGREEMENT, made this �l day of % u r r1LG K , 20 B , between SOUTHERN CALIFORNIA EDISON COMPANY, a corporation, hereinafter called "Utility ", and the party or parties whose names are subscribed hereunder as "Applicants ", WITNESSETH: 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 MAKE , State of California, substantially described as follows: -91ULA al bImE,b T)I 1 / D15 Q 75- N \N?NF,.-k U-Xh CR, (0"0 and as shown on the map attached hereto and made a part hereof; and WHEREAS, a. It is necessary for all property owners served from Utility's overhead facilities to be 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 overhead 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, backfilling, 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.: I. Q Adplicants will pay to Utility concurrently with the execution hereof the nonrefundable amount of , , which is the excess, if any, of the estimated costs, including breaking of pavement, trenching, baccfilling, and paving required in connection with installation of the underground system, and of $ , 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. SCE = 1561 REV 11101 0 PrinmEOn lw.yeW pyw 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 first SOUTHERN f ALIFORNIA EDISON COMPANY 1 Iiy REGION OR DIVISION MANAGER SIGNATURE OF APPLICANTS ADDRESS Address 156 -1 —2— DRANUE REWON REGION OR DIVISION AMOUNT e TOTAL $ Mu, L{ :0Q • • Sales Invoice Name: Rule 20B I Assessment Dist 75 Project Location: Balboa Business Dist Newport Beach Ca, 92660 Please mail payment to: Southern California Edison Company Attn: Mike Bowen 7333 Bolsa Ave Westminster, CA 92683 Project Description: Overhead to Underground conversion All prices applicable for a period of 180 days from this date and are subject to change thereafter- r. nypice-In oyma Q.6.7 13 Non-refundable Billing: Structures S 206,213.00 Underground Cabling & Equipment S 113,209,00 S Total $ 319,422.00 Less Customer Advance $ (15,000.00 Please Pay This Amount $ 304,422.00 Exempted ITCC ([nderanffication Letter Required From Customer) $ 68,768.63 5CE W\LL- tkbmM F:4.) kL ct)sf -Pt--_R mv,�("NAAL_ T)k-ff_,-t 2-.)S- D-4 City of Newport Beach NO. BA- 04BA -050 BUDGET AMENDMENT 2003 -04 EFFECT ON BUDGETARY FUND BALANCE: Increase Revenue Estimates X Increase Expenditure Appropriations AND Transfer Budget Appropriations SOURCE: from existing budget appropriations X from additional estimated revenues from unappropriated fund balance EXPLANATION: This budget amendment is requested to provide for the following: AMOUNT: $1,osa,los.00 • AX Increase in Budgetary Fund Balance Decrease in Budgetary Fund Balance No effect on Budgetary Fund Balance To increase revenue estimates and expenditure appropriations for proposed Assessment District 75 - Balboa Business District. This Budget Amendment also appropriates $55,030 for the related assessment on City owned property. ACCOUNTING ENTRY: BUDGETARY FUND BALANCE Fund Account 4075 3605 830 1000 010 3605 REVENUE ESTIMATES (3601) Number Fund /Division Account 4075 6960 830 26675 EXPENDITURE APPROPRIATIONS (3603) Description AD 75 Fund Balance AD 75 Bond Reserve General Fund Unappropriated Surplus Description AD 75 Contributions AD 75 Bond Reserve Proceeds Description Division Number 74075- Various AD 75 (See Attached District Recap) Account Number Division Number 7013- C5200754 AD 75 - City Property Assessment Account Number Division Number Account Number Division Number Account Number Signed Signed: Signed: Services Director Administrative Apprgdal: City Manager City Council Approval: City Clerk Amount Debit Credit $42,071 $60,522 $55,030 $1,081,149 $60,522 $1,039,079 $55,030.00 Date D e Date • CITY OF NEWPORT BEACH Assessment District 75 Balboa Business District Preliminary Recap Based on Engineer's Report Prior Year Expenditures Budget TOTAL Division No. 74075 Fiscal Year Ended Amendment Project Acct. 2001 2002 Request Commitment Construction Electric 9801 304,422 304,422 Phone 9802 548,000 548,000 Construction Contingency 9805 72,456 72,456 Potential ITCC Tax - 68,768 Total Construction - - 924,878 993,646 Incidentals & Financing Costs Electric Design 9810 15,000 15,000 Phone Design 9811 7,400 7,400 Assessment Engineering 9812 19,671 11,504 31,175 Construction Inspection 9813 9,900 9,900 City Administration 9814 11,400 11,400 Underwriter's Discount 9815 30,261 30,261 Capitalized Interest 9816 21,183 21,183 Bond Counsel 9817 20,000 20,000 Paying Agent Fees 9818 2,500 2,500 Filing Fees 9819 500 500 Printing, Advertising, Notices 9820 5,000 5,000 Official Statement Cost 9821 - Incidental Contingency • 9825 1,953 1,953 Total Incidentals & Financing Costs 34,671 7,400 114,201 156,272 Total Proposed Expenditures 1,039,079 1,149,918 34,671 7,400 Bond Reserve 60,522 Total Assessment District Commitment 1,210,440 Less: ITCC Tax Total Expected Assessment Commitment • (68,769) 1,141,671 0 CITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT , 1bJ Agenda Item No. 16 March 9, 2004 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Public Works Department Patrick Arciniega 949 - 644 -3311 parcineiga @city.newport - beach.ca.us SUBJECT: PROPOSED ASSESSMENT DISTRICT NO. 75 - BALBOA BUSINESS DISTRICT (AREA BOUNDED BY OCEANFRONT BOULEVARD, ADAMS STREET, EDGEWATER PLACE, AND 'A' STREET) FOR UNDERGROUNDING UTILITIES RECOMMENDATIONS: 1. Adopt the following Resolutions for Proposed Assessment District No. 75: a. Resolution No. 2004- declaring intention to order the construction of certain improvements in proposed Assessment District No. 75; 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 designating the area an underground utilities district. b. Resolution No. 2004- _ giving preliminary approval to the Report of the assessment engineer, setting the time and place for a public hearing as April 27, 2004; and ordering the intention of assessment ballot procedure for Assessment Distict No. 75. HISTORY: On January 23, 2001 City Council authorized $54,800.00 for the design of underground utility plans and a Professional Services Agreement with GFB Friedrich & Associates for assessment engineering services for proposed Assessment District No. 75. This action was recommended by staff prior to formally receiving petitions from property owners representing 60 percent of the land area, normally requested by City Council. At that time, authorization was recommended prior to receiving petitions so that the Utility Underground District could be processed concurrently with the Balboa Village redevelopment project. Petitions have not been submitted, nor does staff feel they are likely to be submitted, their absence does not legally affect the formation of this District. A Public Hearing was previously held for this District on January 27, 2004. The district failed at this time with a vote of 45.98% for the district and 54.02% against. SUBJECT: Proposed Assessment District No. 75 (Balboa Business District) for Undergrounding Utilities March 9. 2004 Page 2 Due to the amount of public interest in seeing this district move forward, including from property owners who voted against the district on January 27, 2004, this project is being recommended again for adoption of a Resolution of Intention to set another Public Hearing date and ordering the intention of assessment ballot procedure to form this district. There is no legal restriction to prevent bringing this matter to a Public Hearing again. The Proposition 218 Omnibus Implementation Act, which supercedes the hearing, noticing and ballot requirements of the 1913 and 1931 Acts, does not contain a one -year prohibition period. DISCUSSION: Proposed Assessment District No. 75 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 their associated proceedings. The procedure being used to create the Assessment District is outlined in the Municipal Improvement Act of 1913. Bonds issued 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. 75 is estimated as follows: ITEM ESTIMATED COST Estimated Cost of Construction $937,664.00 Estimated Incidental Costs and Expenses $117,875.00 Estimated Financing (Bond) Costs $114,598.84 Federal Income Tax Component of Contribution (ITCC) $68,768.63 Estimated Total Cost: $1,238,906.47 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 since underground utility districts are undertaken at the request of the community for purposes of community aesthetics and public safety, and 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. In the event the Internal Revenue Service (IRS), State, City and /or local government taxing authority determines that this project is taxable, Southern California Edison (SCE) will require the City to reimburse the full amount of the determined tax liability, plus interest, penalties, fees, and related costs. In that case the City may need to sell a second issue of the bonds, if necessary, to pay SCE within 60 days after they notify the City of Newport Beach. The estimated ITCC tax amount is $68,768.63. 0 0 0 0 SUBJECT: Proposed Assessment District No. 75 (Balboa Business District) for Undergrounding Utilities March 9, 2004 Page 3 The City Attorney's Office has reviewed SCE's request to have the preceding statement included in the Assessment District Report. It was determined that the City would not 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. 75: • Resolution of Intention March 9, 2004 • Property Owner Information Meeting April 15, 2004 • Public Hearing April 27, 2004 • Public Utilities Commence Work September 2004 • City Notifies Property Owners to Install Service January 2005 Connections • Property Owners Complete Conversions May 2005 • Public Utilities Begin to Remove Overhead August 2005 Structures • Public Utilities Finish Removing Poles and September 2005 Overhead Structures The Assessment Engineer chose a 'modified front footage' method of apportioning assessments within this District based on the variety of land uses and the similarity of lot width street frontage. The parcels and lots are assessed relative to a "standard" residence (27 feet of frontage) that receives a full measure of benefit within the Assessment District. Due to the fact that there are areas within the District that have varying degrees of utilities that are overhead and underground the Assessment Basis is divided into three parts to assess properties only for the facilities necessary to underground. This three -part formula takes into consideration the land use, number of facilites to underground and lot frontage. In no case has an assessment been imposed on any lot that exceeds the reasonable cost of the proportional special benefit conferred on that lot. The estimated assessment without the ITCC tax component ranges from $919.20 to $51,066.81, with the average assessment being $9,380.07. The estimated assessment with the ITCC tax componenet ranges from $979.09 to $54,393.83, with the average assessment being $9,991.18. SUBJECT: Proposed Assessment District No. 75 (Balboa Business District) for Undergrounding Utilities March 9, 2004 Page 4 Environmental Review: A Notice of Exemption was completed October 17, 2003 and filed with the County Recorder on October 17, 2003. A Certificate of Environmental Proceedings was completed February 27, 2004. Prepared by: � � -(2�— �-j Patrick L. Arciniega Associate Engineer Attachments: Submitted by: Stephen G. Badum Public Works Director 1. Exhibit Showing District Boundaries 2. Resolution Of Intention 3. Resolution Passing On Report Of Assessment Engineer, Setting Public Hearing, and Ordering Initiation Of Assessment Ballot Procedures 4. Engineer's Report 0 9 Q W A O U :a 5 a U W q F 0 F U NCH e9 Z p Z G 4 ttu 0 0 0 N Q v E w� J N Z° r rOZ Ll Z W L7 W J Q q F U z Q vi F W O P w � Q W O Uq, O a w w 0 1 Q I O W G W C] O W f � W O � S z W N N f A O W z Z Z p N N J r Z Z A 0 W yy O O W y m 3 3 o a I I 0 0 I O I 133 rL:fh _It_ 1 1 1 1 I J m Q O m J Q m H Q W NIVVY VYlVd I 1 1 I 1 I I I 1 I 1 I 1 I 1 I 1 1 I I 1 I RESOLUTION NO. 2004- • RESOLUTION DECLARING INTENTION TO ORDER THE CONSTRUCTION OF CERTAIN IMPROVEMENTS IN PROPOSED ASSESSMENT DISTRICT NO. 75 (BALBOA BUSINESS DISTRICT), 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. 75 (Balboa Business District) (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, 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; WHEREAS, the assessment proceedings for the Assessment Districtwere 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. 0 DESCRIPTION OF IMPROVEMENTS SECTION 2. The public improvements to be constructed and the manner of the construction are generally described as follows: A. The improvements generally consist of the conversion of existing overhead electrical and communication facilities to underground locations within the area generally described as Balboa Business District, which area is generally shown on the Map, together with appurtenances and appurtenant work thereto, all to serve and specially benefit the properties within Assessment District No. 75 (Balboa Business District). 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. E 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. 75 (Balboa Business District)" 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 . SECTION 3. The proposed improvements are hereby referred to GFB- Friedrich & Assoc., Inc. (the "Assessment Engineer"), who is hereby directed to make and file a report as required by the Improvement Act, Article XIIID of the Constitution of the State of California, and the Omnibus Proposition 218 Implementation Act (Government Code Section 53750), such report (the "Assessment Engineer's 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 otherterritory within such Assessment District, as the same existed at the time of the passage of this Resolution of Intention, each of which subdivisions shall be given a separate number upon such diagram; D. The proposed assessment of the assessable costs and expenses of the construction of the proposed improvements upon the real property in the Assessment District in proportion to the estimated special benefits to be received by the real property, respectively, from such improvements. Such assessment shall refer to such real property upon such diagram by the respective numbers thereof; E. The description of the improvements proposed to be constructed under these proceedings. When any portion or percentage of the assessable costs and expenses of the construction of the improvements is to be paid from sources other than assessments, the amount of such portion or percentage shall first be deducted from the total estimated costs and expenses of such construction, and such assessment shall include only the remainder of the estimated costs and expenses. The assessment shall refer to the subdivisions by their respective numbers as assigned pursuant to subparagraph D above. BONDS SECTION 4. Notice is hereby given that bonds to represent the unpaid assessments, and bear interest at the rate of not to exceed the current legal maximum rate of 12% per annum, will be issued hereunder in the manner provided in the Improvement Bond Act of 1915 (Streets and Highways Code Section 8500, et seq.), which bonds shall be issued for a term not to exceed the legal maximum term as authorized by law, namely, thirty -nine (39) years from the second day of September next succeeding twelve (12) months from their date. The provisions of Part 11.1 of the Act, providing an alternative procedure for the advance payment of assessments and the calling of bonds shall apply. 3 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 years adjustment. Pursuant to the provisions of the Improvement Act and specifically Streets and Highways Code Section 10603, the Treasurer is hereby designated as the officerto 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 pursuantto 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 ofthe proceeds of the sale of bonds as authorized by law. 0 PROCEEDINGS INQUIRIES 0 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 that may occur in the bond redemption fund for the Assessment District. ANNUAL ADMINISTRATIVE ASSESSMENT SECTION 12. It is hereby declared that this legislative body proposes to levy an annual assessment pursuant to Section 10204 of the Streets and Highways Code of the State of California, such annual assessment to pay costs incurred by the City and not otherwise reimbursed which result from the administration and collection of assessments and from the administration and registration of assessment bonds and the related bond funds. UTILITY IMPROVEMENTS SECTION 13. Pursuant to Section 10110 of the Streets and Highways Code of the State of California, it is also the intention of this legislative body with respect to the improvements to be owned managed or controlled by any other public agency, regulated public utility, or mutual water company, prior to ordering the construction of improvements, to enter into an agreement with each public utility company or public agency, or any E 0 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 9th day of March, 2004, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: City Clerk Mayor RESOLUTION NO. 2004- RESOLUTION GIVING PRELIMINARY APPROVAL TO THE REPORT OF THE ASSESSMENT ENGINEER FOR ASSESSMENT DISTRICT NO. 75 (BALBOA BUSINESS DISTRICT) AND AN UNDERGROUND UTILITIES DISTRICT, SETTING A TIME AND PLACE FOR A 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. 75 (Balboa Business District) (hereinafter referred to as the "Assessment District') to provide for the conversion of certain overhead electrical and communication facilities to underground locations, togetherwith 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 ail true and correct. SECTION 2. The Report is adopted, passed upon, and preliminarily approved, as follows: A. The plans and specifications for the proposed improvements to be constructed, as contained in the Report, are hereby preliminarily approved and adopted; B. The Assessment Engineer's estimate of the itemized and total costs and expenses of the construction of the improvements and of the incidental expenses in connection therewith contained in the Report, and each of them are hereby preliminarily approved and adopted; C. The diagram showing the Assessment District referred to and described in the Resolution of Intention, and also the boundaries and dimensions of the respective real property interests within the Assessment District, as the same existed at the time of the passage of said Resolution of Intention, each of which have been given a separate number upon the diagram, as contained in the Report, is hereby preliminarily approved and adopted; 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 Engineers 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 April 27, 2004 at 7:00 p.m. Pursuant to the provisions of the Assessment Law, each record owner of property that is subject to the assessment has the right to submit an assessment ballot in favorof or in opposition to the proposed assessment. Assessment ballots will be mailed to the record owner of each property interest located within the assessment district and subject to a proposed assessment. Each such owner may complete such ballot and thereby indicate their support for or opposition to the proposed assessment. All such ballots must be received by the City Clerk at the following address at or before the time set for the close of the public hearing: City Clerk City of Newport Beach 3300 Newport Boulevard Newport Beach, CA 92658 A postmark prior to such date and time will not be sufficient. At the conclusion of the public hearing, the City Council shall cause the assessment ballots timely received to be opened and tabulated. If a majority protest exists, the City Council shall not impose an assessment within the assessment district. A majority protest K 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 9th day of March, 2004, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: City Clerk 0 ENGINEER'S REPORT for UTILITY UNDERGROUNDING ASSESSMENT DISTRICT NO. 75 (Balboa Business District) for the CITY OF NEWPORT BEACH Preliminary: March 9, 2004 Confirmed: 0 • ENGINEER'S "REPORT" CITY OF NEWPORT BEACH ASSESSMENT DISTRICT NO. 75 (Balboa Business District) TABLE OF CONTENTS i Citations and Contents of Report 1 PART I - PLANS AND SPECIFICATIONS 4 PART 11- ESTIMATE OF COSTS 5 PART III - ASSESSMENT ROLL 7 EXHIBIT IA - 1931 ACT TABLE OF VALUES IA -1 (Follows Page 9) EXHIBIT 113 - DEBT LIMIT VALUATION 10 EXHIBIT "A" - METHOD AND FORMULA OF ASSESSMENT SPREAD 11 PART IV - ANNUAL ADMINISTRATIVE ASSESSMENT 17 PART V - BOUNDARY MAP AND ASSESSMENT DIAGRAN 18 PART VI(A) - DESCRIPTION OF WORKS OF IMPROVEMENT, TIME ESTIMATE 19 PART VI(B) - RIGHT -OF -WAY CERTIFICATE 21 PART VI(C) - CERTIFICATE OF COMPLETION OF ENVIRONMENTAL PROCEEDINGS 22 EXHIBIT 11 - ASSESSMENT ROLL (Follows Page 22) II -1 E AGENCY: CITY OF NEWPORT BEACH PROJECT: UTILITY UNDERGROUNDING ASSESSMENT DISTRICT NO. 75 (Balboa Business District) TO: CITY COUNCIL ENGINEER'S "REPORT" PURSUANT TO THE PROVISIONS OF SECTION 10204 OF THE STREETS AND HIGHWAYS CODE 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, the "Special Assessment Investigation, Limitation and Majority Protest Act of 1931 ", being Division 4 of said Streets and Highways Code, and Section 4(b) of Article XIIID of the Constitution of the State of California, and in accordance with the Resolution of Intention, being Resolution No. adopted by the CITY COUNCIL of the CITY OF NEWPORT BEACH, STATE OF CALIFORNIA, in connection with the proceedings for ASSESSMENT DISTRICT NO. 75, (Balboa Business District) (hereinafter referred to as the "Assessment District "), I, JOHN A. FRIEDRICH, authorized representative of GFB- FRIEDRICH & ASSOC., INC., the duly appointed ASSESSMENT ENGINEER, submit herewith the "Report" for the Assessment District, consisting of five (5) parts as follows: PART I Plans and specifications for the proposed improvements. Said plans and specifications are hereby incorporated into and by this reference made a part of this Report. PART II An estimate of the cost of the proposed works of improvement, including capitalized interest, incidental costs and expenses in connection therewith. PART III This Part shall consist 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. 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. C. The total true value, as near as may be determined from the latest Assessor's roll, of the parcels of land and improvements which are proposed to be assessed. D. Exhibit IA indicates the total of the proposed assessment combined with any previously unpaid assessment on any parcel of land in the proposed district. 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 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. PART VI This Part consists of the following information: A. Description of the work for the proposed improvements. B. Right -of -way certificate. C. Environmental certification. Dated this 4-,Yt day of V , 20 4:)4— GFB- FRIEDRICH & ASSOC., INC. 'P No. C27661 E,p.3 /31/06 * A. D C CIVIL �� ASSESSMENT ENGINEER cx CXL% 2 i0 Preliminary Approval by the CITY COUNCIL of the CITY OF NEWPORT BEACH, California, on the day of , 20 CITY CLERK CITY OF NEWPORT BEACH STATE OF CALIFORNIA Final Approval by the CITY COUNCIL of the CITY OF NEWPORT BEACH, California, on the day of , 20 3 CITY CLERK CITY OF NEWPORT BEACH STATE OF CALIFORNIA ENGINEER'S "REPORT" PART I CITY OF NEWPORT BEACH ASSESSMENT DISTRICT NO. 75 (Balboa Business District) PLANS AND SPECIFICATIONS The plans and specifications which describe the general nature, location, and extent of the improvements for this Assessment District are filed in the office of the City Clerk and in the office of the Public Works Department; and are hereby incorporated into this 'Report" by reference as if attached. 0 • rd 0 E ENGINEER'S "REPORT" PART II CITY OF NEWPORT BEACH ASSESSMENT DISTRICT NO. 75 (Balboa Business District) COST ESTIMATE Preliminary Estimate Costs without with Confirmed SCE ITCC Tax SCE ITCC Taz Assessment A. CONSTRUCTION COSTS 1. Southern California Edison Structures $206,213.00 $206,213.00 Underground Cabling & Equipment $113,209.00 $113,209.00 (Less Design Engineering Advance) ($15,000.00) ($15,000.00) SCE ITCC Tax (22.597c)* 68,768.63 Subtotal, SCE Costs w/o ITCC Tax $304,422.00 Subtotal, SCE Costs w/ ITCC Tax $373,190.63 2. SBC Rough Estimate $548,000.00 $548,000.00 Subtotal, SBC Costs $548.000.00 $548.000.00 Subtotal, Construction $852,42100 $921,190.63 Construction Contingencies 85.242.00 85 242. TOTAL CONSTRUCTION COSTS $937,664.00 $1,006,432.63 B. INCIDENTAL COSTS I. Design Engineering (SCE) $15,000.00 $15,000.00 2. Design Engineering (SBC) 7,400.00 7,400.00 3. Assessment Engineering 31,175.00 31,175.00 4. Construction Inspection 9,900.00 9,900.00 5. City Administration 11,400.00 11,400.00 6. Printing, Advertising, Notices 4,000.00 4,000.00 7• Bond Printing, Registration & Servicing 1,000.00 1,000.00 8. Filing Fees 500.00 500.00 9• Bond Counsel 20,000.00 20,000.00 10. Paying Agent 2,500.00 2,500.00 11. Contingencies 15 15,000.00 Subtotal, Incidentals $117,875.00 $117,875.00 Subtotal, Construction & Incidentals $1,055,539.00 $1,124,307.63 (Continued - Next Page) 5 * Adelphia Cable is required to pay for undergrounding through their Franchise Agreement with the City. ** ITCC = Income Tax Component of Contribution (22.59% of SCE Costs). [Section 18(b) of IRS Code] * ** 2nd bond issue for Federal Income Tax Component of Contribution (ITCC) - 6.12% of the preliminary Estimate "with SCE ITCC Tax" Balance to Assessment which will only be issued if the Federal Governmen implements the tax. The 2nd bond issue (ITCC issue) amount is the difference between the Balance to Assessment in the "with ITCC Tax" column above and the Balance to Assessment in the "without ITCC Tax" column above. 0 r� t� 40 ENGINEER'S "REPORT" PART II CITY OF NEWPORT BEACH ASSESSMENT DISTRICT NO. 75 (Balboa Business Disrrict) COST ESTIMATE Preliminary Estimate Costs without with Confirmed SCE ITCC Tax SCE ITCC Tax Assessment Subtotal Forward, Construction & Incidentals $1,055,539.00 $1,124,307.63 C. FINANCING COSTS 1. Bond Discount (2.5 %) $29,078.21 $30,972.66 2. Bond Reserve (5 %) 58,156.42 61,945.32 3. Capitalized Interest (1.75 %) 20,354.75 21,680.86 Subtotal, Financing Costs $107,589.38 $114,598.84 TOTAL DISTRICT COSTS $1,163,128.38 $1,238,906.47 D. CASK CONTRIBUTION $0.00 0.00 E. BALANCE TO ASSESSMENT $1,163,128.38 $1,238,906.47 * Adelphia Cable is required to pay for undergrounding through their Franchise Agreement with the City. ** ITCC = Income Tax Component of Contribution (22.59% of SCE Costs). [Section 18(b) of IRS Code] * ** 2nd bond issue for Federal Income Tax Component of Contribution (ITCC) - 6.12% of the preliminary Estimate "with SCE ITCC Tax" Balance to Assessment which will only be issued if the Federal Governmen implements the tax. The 2nd bond issue (ITCC issue) amount is the difference between the Balance to Assessment in the "with ITCC Tax" column above and the Balance to Assessment in the "without ITCC Tax" column above. 0 r� t� 40 ENGINEER'S "REPORT" PART III CITY OF NEWPORT BEACH ASSESSMENT DISTRICT NO. 75 (Balboa Business District) ASSESSMENT ROLL WHEREAS, on , 20 , the CITY COUNCIL of the CITY OF NEWPORT BEACH, CALIFORNIA, did, 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, and as amended, the "Special Assessment Investigation, Limitation and Majority Protest Act of 1931 ", being Division 4 of said Streets and Highways Code, and Article XIIID of the Constitution of the State of California, adopt its Resolution of Intention No. , for the 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. 75 (Balboa Business District), hereinafter 0 referred to as the "Assessment District "); and, WHEREAS, said Resolution of Intention, as required by law, did direct GFB- Friedrich & Assoc., Inc., as Assessment Engineer, to make and file a "Report ", consisting of 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; and E. The description of the improvements proposed to be constructed under these proceedings. 7 For particulars, reference is made to the Resolution of Intention as previously adopted. 0 NOW, THEREFORE, I, JOHN A. FRIEDRICH, a licensed engineer of GFB- Friedrich & Assoc., Inc., the duly appointed Assessment Engineer, pursuant to the "Municipal Improvement Act of 1913" and Article XIIID of the Constitution of the State of California, do hereby submit the following: 1. I, pursuant to the provisions of law and the Resolution of Intention, 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 to the identification of said parcels, reference is made to the Assessment Diagram, a copy of which is attached hereto. 2. As required by law, a Diagram is hereto attached, showing the Assessment District, as well as the boundaries and dimensions of the respective parcels and subdivisions of land within said District as the same existed at the time of the passage of said Resolution of Intention, each of which subdivisions of land or parcels or lots, respectively, have been given a separate number upon said Diagram and in said Assessment Roll. 3. The subdivisions and parcels of land with numbers therein as shown on the respective Assessment Diagram as attached hereto correspond with the numbers 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, and the last installment of said bonds shall mature a maximum of THIRTY -NINE (39) YEARS from the 2nd 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 the requirements contained in Article XIIID, and by further direction and order of the City Council, I hereby make 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: THIS SPACE INTENTIONALLY LEFT BLANK 0 I,* THIS SPACE INTENTIONALLY LEFT BLANK E AS PRELIMINARILY AS APPROVED CONFIRMED Estimated Cost of Construction: $ 1,006,432.63 $ Estimated Incidental Costs and Expenses: $ 117,875.00 $ Estimated Financing (Bond) Costs: $ 114,598.84 $ Estimated Total Cost: $ 1,238,906.47 $ Estimated Contribution: $ 0.00 $ Balance to Assessment: $ 1,238,906.47 $ For particulars as to the individual assessments, reference is made to Exhibit II attached hereto. 6. The Method and Formula of Assessment Spread is as set forth in Exhibit "A ", which is attached hereto, referenced and so incorporated. 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Q N N N 00 00 00 00 00 00 00 00 00 00 00 00 W 00 00 00 00 00 00 00 00 00 00 00 a a IT 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 A M a h b r oo a W W W 00 00 00 W Q 9 � 0 } , \\ jf \j\ \ \ \� \ \\ �< - e )j) s@Q= ■ \CA \ ° g [\\ e 2#� © R � _ $ §!® w § )j 2 \ 7 �)\ as Oo r _\ i(m} en $ a, v m en \ \2{ \/\ \\ \\ § � 2 ) . f/ a ~� < z a, a, } CITY OF NEWPORT BEACH ASSESSMENT DISTRICT No. 75 (Balboa Business District) Exhibit IB DEBT LIMIT VALUATION A. Estimated Balance to Assessment $1,238,907 B. Unpaid Special Assessments 0.00 Total A & B $1,238,907 C. True Value of Parcels $60,120,094 ** Average Value to Lien Ratio 49: 1 LA * 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. 0 ** 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 (i) the total amount of the principal sum of the special assessments proposed to be levied, together with the principal amount of previously levied special assessments, as set forth above, does not exceed one -half (112) of the true value of the parcels proposed to be assessed and (ii) the proposed assessment on each parcel does not exceed one -half (1/2) of the true value of the parcel. GFB- FRIEDRICH & ASSOC., INC. r r• S{] ENGINEER'S "REPORT" EXHIBIT "A" CITY OF NEWPORT BEACH ASSESSMENT DISTRICT NO. 75 (Balboa Business District) METHOD AND FORMULA OF ASSESSMENT SPREAD Article XUID requires and the statutes provide that assessments, as levied pursuant to the provisions of the "Municipal Improvement Act of 1913 ", must be based on the special benefit that the properties receive from the works of improvement. It is necessary that the property owners receive a special and direct benefit distinguished from that of the general public. The law does not specify the method or formula that should be used in any special assessment district proceedings, and that responsibility rests with the Assessment Engineer, who is appointed for the purpose of making the analysis of the facts and determining the correct apportionment of the assessment obligation. The goal is to apportion the assessments to each parcel in direct proportion with the special benefit that the parcel will receive from the improvements. For these proceedings, GFB- Friedrich & Assoc., Inc. has been appointed to perform the functions of Assessment Engineer. The special benefits that inure to the properties within the boundary of Assessment District No. 75 are threefold; first, the undergrounding of existing overhead electrical and telephone lines, the removal of supporting poles, and the construction of a new and improved underground electrical and telephone. system will result in enhanced service, reliability and capacity; second, the improvements increase safety; and third, removal of existing poles and overhead wires will aesthetically enhance all parcels adjacent to the improvements. There are a variety of land uses within the District boundary. Because many of the parcels receiving special benefit from the proposed improvements contain residences with similar lot widths fronting on their streets, a "modified front footage" method of apportioning assessments is being used for this Assessment District. If a lot or parcel has a structure with more than one story, the formula is adjusted to reflect the benefit received by type of use on said lot or parcel with multilple residential units or commercial uses. The modified front footage method of spreading assessments generally reflects the size of the lot or parcel, which in turn reflects the level of use of the facilities, and therefore the special benefit that they receive. The modified front footage method also is a measure of the amount of utility trench crossing in front of said lot or parcel. It is reasonable and our conclusion to spread assessments using a modified front footage formula where each parcel or lot is assessed relative to a "standard" residence (27 feet of frontage) within the Assessment District that receives a full measure of benefit (all three parts of special benefit as described below). The construction cost and proportionate share of the incidental costs for bid items will, therefore, be spread on a 11 modified front footage basis to those areas or subareas of the Assessment District that benefit from the works of improvement. Because the benefit from the improvements is specific to each parcel, there is no general benefit component that is received by parcels outside of the Assessment District boundary or by the general public. The special benefit received from the above -cited works of improvement is estimated to be in proportion to the modified front footage allocated to each parcel as described below. In the Balboa Business District, there are a variety of existing conditions regarding electric, telephone and overhead utility lines with poles. For example, some lots already have underground electric service but not underground telephone service; other lots already have both underground electric and telephone services, but have overhead lines that require undergrounding; other lots require all services to be undergrounded; and still others have all of their services and utility lines undergrounded already. Apparently, some of the developers of the lots within the District paid to have the utilities undergrounded as part of the development process while others did not. Consequently, in order to assess properties only for the facilities or work necessary, the modified front footage formula used in this District is divided into 3 equal parts; 1) underground electric service (E) is required, 2) underground telephone service (T) is required, and 3) overhead utility lines (OLR) must be undergrounded. The modified front footage formula to be used throughout the Assessment District is given below with one, two, three or none of the three parts considered for each lot or condominium. Please refer to the Assessment Diagram for the location of existing overhead facilities. Land Use Code 14 15 29 30 31 32 34 38 39 52 76 85 88 110 121 122 * IRXI Land Use Recreational, Amusement Park Residential, Apartment Commercial, Commercial Building Commercial, Commercial Condominium Commercial, Commercial Lot Commercial, Miscellaneous Uses Residential, Condominium Residential, Duplex Miscellaneous, Exempted Fully Commercial, Hotel Vacant, Multi Family Acreage Commercial, Office Building Commercial, Parking Lot Commercial, Restaurant Commercial, Shopping Center - Supermarket Residential, Single Family Residential Commercial, Storage - Warehouse 12 . Assessment Basis Front Footage - 3 x # of Facilities 1.5 x Front Footage _ 3 x # of Facilities Front Footage + 3 x # of Facilities Front Footage _ 3 x # of Facilities Front Footage + 3 x # of Facilities Front Footage + 3 x # of Facilities 0.8 x Front Footage + 3 x # of Facilities 1.0 x SFR + 3 x # of Facilities Front Footage 3 x # of Facilities 2.0 x Front Footage +3 x # of Facilities Front Footage <3 x # of Facilities Front Footage + 3 x # of Facilities 0.5 x Front Footage +3 x # of Facilities Front Footage <3 x # of Facilities Front Footage +3 x # of Facilities Front Footage (27' min) + 3 x # of Facilities Front Footage +3 x # of Facilities 9 0 KI Land Use Code 126 127 128 129 133 135 Land Ilse Commercial, Store Building Commercial, Store Franchise Commercial, Stores & Offices Commercial, Stores & Residential Recreational, Theater — Walk in Residential, Triplex Assessment Basis Front Footage +3 x # of Facilities Front Footage +3 x # of Facilities Front Footage + 3 x # of Facilities 1.5 x Front Footage +3 x # of Facilities Front Footage 3 x # of Facilities 1.0 x Front Footage +3 x # of Facilities * Basic assessment for a 27' wide single - family residential lot A service drop is defined as an electric service line and a telephone service line constructed to the property line of a parcel or lot. A single residential service drop is based on service to a "standard" residence with 27 feet of frontage. A service drop for a multiple -unit residential /apartment complex or a larger commercial use may require larger service lines to meet user demands. A lot with buried electrical and /or telephone transmission lines on two or more of it's sides shall only be assessed for one side frontage; said side frontage shall be the same side that is used to assess other nearby parcels with similar land uses. Said side is generally the side of the parcel represented by it's address. The rationale for this is that the buried transmission lines on the non - assessed side(s) of a parcel are necessary to make the entire underground utility system functional, and therefore constitutes a measure of special benefit for each of the parcels within the assessment district boundary. The costs for the installation of said non - assessed transmission lines are therefore shared by each property owner proportionately. In anticipation that a lot or parcel that receives no assessment or a partial assessment in this Assessment District has a residence or commercial building constructed on it in the future that requires electric and telephone service, the City in conjunction with the utility companies, will charge sufficient fees and construction costs to the property owner(s) of such a lot or parcel to effect equity with the other lots or parcels that received assessments for similar facilities in this Assessment District. Some or all of said fees and construction costs may be used to pay down the assessments on the other parcels within the Assessment District on a pro -rata basis. Some of the lots and parcels, identified by their Assessor Parcel Numbers, within the boundary of the proposed assessment district require special consideration, as follows: 13 Assessor • Parcel No. Land Use Description 048 - 121 -20 Residential, This parcel requires electric and telephone drops Duplex and utility line undergrounding, but will have a new pole and cable added at it's westerly property line. Therefore, it will receive a 34% reduction in it's assessment due to having a pole remaining. 048 - 121 -21 Residential, This parcel requires a telephone drop and utility Duplex line undergrounding only, but will have a new guy pole added at it's southeast corner. Therefore, it will receive a 20 % reduction in it's assessment due to having a guy pole remaining. 048 - 121 -09 Residential, This parcel requires electric and telephone drops Triplex and utility line undergrounding, but will have a new guy pole added directly across the street. Therefore, it will receive a 20% reduction in it's assessment due to having a guy pole remaining. 932 - 160 -01 Residential, This series of condominium units is in a large through Condominiums three -story building. Fifty -four feet of overhead 932 - 160 -24, utility line and two poles require undergrounding inclusive in the alley behind the building. Each condo- minium unit is being assessed for 1.80 feet of modified front footage to pay for their share of the cost of undergrounding said line and poles. 048 - 135 -02 Recreational- Theater Each of these parcels share an existing pole in the 048 - 135 -03 Commercial, Stores alley behind their buildings. Because this pole has 048 - 135 -07 Commercial, Hotel no existing utility lines, it is reasonable and our 048 - 135 -11 Residential, Duplex conclusion to have each property be assessed for 9.00 equivalent front feet for the removal of the pole (OLR) and undergrounding of any equipment affixed to it (the properties identified by Assesor's Parcel No. 048- 135 -03 and 048 - 135 -11 already have undergrounded electric (E) and telephone (T) services). Furthermore, the two other properties, identified by Assessor's Parcel Nos. 048 - 135 -02 and 048 - 135 -07, also require underground tele- phone service drops (T). Therefore, the two properties which require the pole removal and telephone service drops, and which each have at least 54 feet of frontage are each being assessed for 18.00 equivalent front feet for telephone service plus the aforementioned 9.00 equivalent front feet for the pole removal. 14 CJ • Several lots that front on the north side of Balboa Boulevard have wedge shapes. The average of the lot front and back lot dimensions is used to determine the front footage used in the assessment formula. During the time that this Engineer's Report was being written, a variety of other assessment formulae were considered. Assessment units (AU) or Equivalent Dwelling Units (EDU) were considered as a method of spreading assessments. This is often a viable method of spreading assessments but was rejected because of the difficulty in assigning AU's or EDU's to the variety of land uses found on the lots and parcels within the proposed assessment district boundary. Acreage was rejected as a method of spreading assessments because of the difference in size among the lots within the District. The use of an acreage formula would not reflect the special benefit derived from undergrounded electrical and telephone improvements. In conclusion, it is my opinion that the assessments for the above - referenced Assessment District have been spread in direct proportion to the special benefits that each lot or parcel receives from the works of improvement. It is my further opinion that: a. The proportionate special benefit derived by each identified lot has been determined in relationship to the entirety of the cost of the construction of the works of improvement. b. No assessment has been imposed on any lot that exceeds the reasonable cost of the proportional special benefit conferred on that lot. c. Only special benefits have been assessed. 15 GFB- FRIEDRICH & ASSOC., INC. //1 � ww//�,J /;&', �� A. FRI I) CH, P.E. ASSESSMENT ENGINEER I, 0)N- M �-- 1'� 0fr- "tCITY ERK 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 �2 -7 day of _�i�ZL °(may , 20 L4-. CITY CLERIC CITY OF NEWPORT BEACH STATE OF CALIFORNIA I, , as CITY CLERK of the CITY OF NEWPORT BEACH, CALIFORNIA, do hereby certify that the foregoing assessment, together with the Diagram attached thereto, was approved and confirmed by the City Council of said City on the day of , 20 CITY CLERK CITY OF NEWPORT BEACH STATE OF CALIFORNIA I, STEPHEN G. BADUM, P.E., 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 , 20 SUPERINTENDENT OF STREETS CITY OF NEWPORT BEACH STATE OF CALIFORNIA 16 11 ! • ENGINEER'S "REPORT" PART IV CITY OF NEWPORT BEACH ASSESSMENT DISTRICT NO. 75 (Balboa Business District) ANNUAL ADMINISTRATIVE ASSESSMENT A proposed maximum annual administrative assessment shall be levied on each parcel of land and subdivision of land with 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, Los Angeles, and Riverside 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 Nvorks of improvement. 17 ENGINEER'S "REPORT" PART V CITY OF NEWPORT BEACH ASSESSMENT DISTRICT NO. 75 (Balboa Business District) BOUNDARY MA.P AND ASSESSMENT DIAGRAM Full -sized copies of the Boundary Map and the Assessment Diagram are on file in the Office of the City Clerk of the City of Newport Beach. Please refer to the following pages for reduced copies of said maps. As required by the Act, the Assessment Diagram shows the exterior boundary of the District and the assessment number assigned to each parcel of land that appears in the 1931 Act Table of Values (Exhibit IA) and the Assessment Roll (Exhibit In. The Assessor's parcel number is also shown for each parcel or lot as they existed at the time of the adoption of the Resolution of Intention and reference is hereby made to the Assessor's Parcel Maps of the County of Orange for the boundaries and dimensions of each parcel or lot within the District EE3 0 f . N S N Rz,b6 c S QO� ° 3I liYk S Lg�gg�g �� :�o J ■ biy .Y- I� Lyl LO II I 1I nl3abi a3f5i➢&SY�; __ / I �..- v w LL y=j 133bid w W LL 4b OL �� mO W cc SOaf r-+ zQ oo ~W I m a 2 W W f W� oZ vi? 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Od W�z a� cc o YO <p ~ W �o W O u Q O O O� o d 1 °� a o; g ReiZ pZSg�i eie �� U 7 i T • O i I R I e I b o o I I � o <z -piss o 1 Q ^ B2- gr6 BDg 1 f ozr -9r¢ s Y09 n r OS m 1 W pt of I gt M W W 2 !n W W .oz I i N 0 �.at• O 7 8 I O o / ' 8 - � m Y i 1 o J j u[[ zs I c N VI S R ...i m/ aoeo �aa I I s[ 8 3 1`JNIHSb,N I � h28 I [ 133HS 33S V 133HS 33/S m, - o k 8 � sr I sc l 1 °]nN3gY oe }� !I N029N�HSb,H I o � I � a ( khi � I I � 1 J h- zr 4 133a1S1'+ sero F� m0 1 W az =04 R Fa ¢WW pz` U. i Y C W 0 u0 u J !SO•CI; � A•� �N ���R u °O� ENGINEER'S REPORT PART VI(A) CITY OF NEWPORT BEACH ASSESSMENT DISTRICT NO. 75 (Balboa Business District) DESCRIPTION OF WORKS OF IMPROVEMENT, TIME ESTIMATE The following improvements are proposed to be constructed and installed in streets and alleys roughly bounded by Adams Street, Ocean Front, "A" Street, and Bay Avenue in the City of Newport Beach. 1. Removal of 27 existing power and telephone poles, and addition of one utility pole and one guy pole at the periphery of the District. 2. Removal of all overhead service drops for both electric and telephone service. 3. Construction of approximately 2,308 linear feet of mainline underground power and telephone conduit, with appurtenant vaults, manholes and pullboxes. 4. Construction of underground cable television conduit with appurtenant facilities. 5. Construction of required service conduit and appurtenances to private property lines for 85 "standard" lots and 7 lots containing condominiums within the District. The improvements will be designed and constructed by the Southern California Edison Company (electric), SBC (telephone) and Adelphia (cable TV). The City of Newport Beach will inspect the work for conformance to applicable City standards and specifications. Once completed, the underground electric, telephone and cable TV facilities will become the property and responsibility of Southern California Edison, SBC and Adelphia respectively. 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 or easements to the points of connection on 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 six (6) months after the sale of bonds. Property owners will be required to provide necessary underground connections within 120 calendar 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 utility companies be directed to discontinue service to that property. Overhead facilities cannot be removed until all overhead service has been discontinued. M The general locations of the existing facilities to be undergrounded are shown on the Assessment Diagram in Part V of this "Report ". THIS SPACE INTENTIONALLY LEFT BLANK r 9 0 `J Ll lI* ENGINEER'S "REPORT" PART VI(B) CITY OF NEWPORT BEACH ASSESSMENT DISTRICT NO. 75 (Balboa Business District) RIGHT -OF -WAY CERTIFICATE CITY OF NEWPORT BEACH COUNTY OF ORANGE STATE OF CALIFORNIA The undersigned hereby CERTIFIES UNDER PENALTY OF PERJURY that the following is true and correct. At all times herein mentioned, the undersigned was, and now is, the duly appointed SUPERINTENDENT OF STREETS of the CITY OF NEWPORT BEACH, CALIFORNIA. That there have now been instituted proceedings under the provisions of the "Municipal Improvement Act of 1913 ", being Division 12 of 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. 75 (Balboa Business District) (hereinafter referred to as the "Assessment District "). THE UNDERSIGNED STATES AND CERTIFIED AS FOLLOWS: That all easements, rights -of -way or land necessary for the accomplishment of the works of improvement for the above - referenced Assessment District have been obtained and are in the possession of the City. It is further acknowledged that works of improvement as proposed to be constructed within said Assessment District must be constructed within public rights -of -way, land or easements as owned by said City at the time of the construction of the works of improvement. EXECUTED this 27 day of 20 0A, at NewRqo-Beach, California. a] �TEPHJRN G. BADUM, P.E. SUPERINTENDENT OF STREETS CITY OF NEWPORT BEACH STATE OF CALIFORNIA ENGINEER'S "REPORT" PART VI(C) CITY OF NEWPORT BEACH ASSESSMENT DISTRICT NO. 75 (Balboa Business District) CERTIFICATION OF COMPLETION OF ENVIRONMENTAL PROCEEDINGS CITY OF NEWPORT BEACH COUNTY OF ORANGE STATE OF CALIFORNIA The undersigned, under penalty of perjury, CERTIFIES as follows: 1. The improvements to be constructed under the proceedings in Assessment District No. 75 are categorically exempt from the provisions of the California Environmental Quality Act (CEQA) under the provisions of Paragraph 15302, Class 2 (d) of "Guidelines For Implementation of the California Environmental Quality Act ", as adopted by the Secretary for Resources of the State of California, June 1992. 2. The undergrounding to be done under Assessment District No, 75 is categorically exempt from the requirement for the preparation of environmental documents under the California Environmental Quality Act guidelines because 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 the undergrounding, does not have a significant effect on the environment, and are declared to be categorically exempt. 3. A Notice of Exemption has been filed in the office of the County Clerk of Orange County, California. A copy of the Notice of Exemption marked Exhibit "C" is attached to this Report and is hereby made a part of this Report, 4. All environmental evaluation proceedings necessary for the formation of Assessment District No. 75 have been completed to my satisfaction, and no further environmental proceedings are necessary. EXECUTED this day of FM1Z\iWW 20 DA, at Newport Beaky, California. ST E ,NY. BADUM, P.E. IRE OF PUBLIC WORKS CITYZCrF NEWPORT BEACH STATE OF CALIFORNIA 22 0 U Exhibit "C" POSTED CI_ Y OF NEWPORT BEAL3 OCT 112003 3300 Newport Boulevard - P.O. Box 1768 Newport Beach, CA 92658 -8915 (949) 644 -3311 Tom DAi.Y, tRDEa DP'" NOTICE OF EXEMPTION To: ❑ Office of Planning and Research 1400 Tenth Street, Room 121 Sacramento, CA 95814 County Clerk, County of Orange FX Public Services Division P.O. Box 238 PPWI EaOV. GDD� OF 4 lip TOM MALY, C. E�+r,nEC �FJEk TOM DALY. ay Cir u From: City of Newport Beach Public Works Department 3300 Newport Boulevard - P.O. Box 1768 Newport Beach, CA 92658 -8915 (Orange County) Date received for filing at OPR NameofProject: Assessment District No. 75 Project Location: Balboa Village, Newport Beach, CA Specific: Area bounded by Adams St., Edgewater P1c., A St., and West 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. Recorded in Official Records, County of Oranl Tom Daly, Clerk- Recorder Exempt Status: (check one) IIIIl Illl lillllllialnlll llnlllnilllllllallllllpnilllllNO FEE ❑ Ministerial (See. 2 1080(b)(1);15268); 200385001348 02:39PM 1011710; ❑ Declared Emergency (Sec. 21080(b)(3); 15269(a)); e0 83 Z01 ❑ Emergency Project (Sec. 21080(b)(4); 15269(b)(c); 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 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: Patrick L. 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U � U �j h ro�� oo m oo m o 0 �o 00 hy' a o" N N t'1 CO h �O N 7 00 V1 N > O� h N 69 V b Y1 Y1 V M 69 H V9 fA 6'i V9 V9 69 V9 69 Yi V9 O Vl 0 0 O 0 O 0 O O O ..O�}D OD O�}}D 00 W sstdt 00 OD w D6 00 0ti 0 C. 00 CO � c z ro� ro� ro w ro ro rn a N a a c d 0 v a v a a C W vo II II � F W O 0 0 C: 1;jtCA AGENDA CITY OF NEWPORT BEACH 3� • CITY COUNCIL STAFF REPORT Agenda Item No. 12 February 24, 2004 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Public Works Department Patrick Arciniega 949 -644 -3311 parciniega @city.newport- beach.ca.us SUBJECT: UNDERGROUND ASSESSMENT DISTRICT NO. 75 (BALBOA BUSINESS DISTRICT) —STATUS REPORT RECOMMENDATION: Proceed with placing Assessment District No. 75 Balboa Business District on the Council Agenda for Resolution of Intention for March 9, 2004 meeting. DISCUSSION: • On January 27, 2004 a Public Hearing was held for AD — 75 Balboa Business District Underground Utilities Assessment District. The result of the ballot was a majority protest with 66 ballots being turned in by the end of the Public Hearing, with 54% voting against the district, and 46% voting for the district. Since that ballot, we have received information that several property and business owners have reconsidered and that the district may be supported if the vote could be retaken. In response to this information, the City requested that Bond Counsel, Bob Hessell, investigate how the City may proceed. Mr. Hessell's response letter (see attached) states that the City may proceed with bringing the matter to Public Hearing again per the Proposition 218 Omnibus Implementation Act. As a result of this Act, the City may proceed without delay to impose assessments for proposed Assessment District No. 75. The renewed proceedings require that a new Resolution of Intention be adopted, followed by the 45 day notice, protest, and hearing requirements established by the Implementation Act. The quickest timetable to bring AD — 75 to Public Hearing would require adoption of a Resolution of Intention at the March 9, 2004 City Council Meeting, with Public Hearing notices mailed out by Friday, March 12, 2004 for a Public Hearing scheduled for April 13, 2004. However, that schedule could be affected by the need to revise the Engineer's Report due to revised cost estimates. SUBJECT: Underground Assessment District No. 75 (Balboa Business District) —Status Report ' February 24. 2004 Page 2 In general, a Preliminary Engineer's Report is presented to Council when adopting a • Resolution of Intention to begin Assessment District Hearing proceedings. The utility companies provide the City with Final Cost of Improvements and Underground Utility Agreements that are valid for a period of 180 days. The Final Costs from Southern California Edison for AD — 75 were received on November 18, 2003 and are valid until May 18, 2004. The Final Cost from SBC was received on October 3, 2003 and is valid until April 3, 2004. Even under the best of circumstances, the quote from SBC will need a time extension (keeping the existing quote) or need cost revisions. If a time extension is approved, the existing Final Costs from the Utilities Companies can be reconfirmed and the existing Final Engineer's Report can be utilized 'as is'. if the time extension is not approved and SBC revises their costs, then the Engineers Report will need to be revised and the schedule of the new hearing will need to be revised. However, the actual date of the hearing would not affect the starting date of a successful assessment district as the work would not be permitted to start until after Labor Day. Staff will make every effort to encourage the most expeditious process to minimize any delay to the proposed schedule. Environmental Review: This project qualifies for a Class 2 Califomia Environmental Quality Act (CEQA) exemption under Section 15302, item "d" of the Implementing Guidelines as follows: "Conversion of overhead electric utility distribution system facilities to • underground including connection to existing overhead electric utility distribution lines where the surface is restored to the condition existing prior to the und erg rounding." Prepared by: Submitted by: Pv P#j6k Arci i ga S h . Badum Associate Engineer uW u ' Works Director Attachment — Letter from Bob Hessell dated February 10, 2004 • Law Office of Robert E. Hessell • 12707 HIGH BLUFF DRIVE, ST,=200, SAN DIEGO, CA 92130 PH: (858) 350 -4288 FAM (858) 350 -4289 hessdl @cabondlaw.eom February 10, 2004 Stephen G. Badum P.E. Director of Public Works City of Newport Beach 3300 Newport Boulevard Newport Beach, CA 92568 Re: Assessment district majority protests — prior prohibition to further proceedings Dear Mr. Badum: On January 27, 2004, after a pubic hearing on the matter, property owner ballots were tabulated on the question of authorizing the imposition of assessments for proposed Assessment District No. 75. The ballots submitted in opposition to the assessments exceeded the ballots submitted in flavor of the assessments. As a consequence, there was a majority protest and the assessments may not be imposed. You now ask whether the City is precluded from renewing the proceedings for Assessment District No. 75 for a period of one year (or some other period) or whether the City may again seek authorization to impose the assessments without delay. • The short answer is that the City may proceed without delay if it chooses to again present the matter to property owners. Discussion: Assessment district proceedings are typically conducted under two acts: the Special Assessment Investigation, Limitation and Majority Protest Act of 1931 (commencing with section 2800 of the Streets and Highways Code) and the Municipal Improvement Act of 1913 (commencing with section 10000 of the Streets and Highways Code). Prior to the adoption of the Proposition 218 Omnibus Implementation Act, the notice, protest and hearing requirements of the 19I3 Act and the 1931 Act were foIIowed. The notice, protest and hearing requirements of the 1913 Act and the 1931 Act are substantially similar and were usually complied with through a joint proceeding. In general, the 1913 Act and the 1931 Act required mailed notice of the proposed assessment and a public hearing. The required notice also informed owners of property subject to the proposed assessment that they had a right to file a written protest against the improvements or assessments. In pertinent part the 1913 Act and the 1931 Act read as follows: 1931 Act, Section 2930: [If] ... a written protest filed with the clerk of the legislative body by the owners ... of a majority of the frontage of the property fronting on the acquisition or improvement in those cases where the cost in whole or part of the acquisition or improvement is to be assessed upon the property fronting on the • acquisition or improvement, or by the owners of more than one -half of the area of the property to be assessed for the acquisition or improvement Stephen G. Badum, P.E. Page 2, February 10, 2004 • in those cases where the cost in whole or part of the acquisition or improvement is to be assessed upon the property within a district, and protests are not withdrawn so as to reduce the same to less than a majority, then the proposed proceedings shall be forthwith abandoned, and the legislative body shall not for one year from the filing of that written protest commence or carry on any proceedings for the same improvement or acquisition.... [emphasis added]. 1913 Act, Section 10310 Protests; filing; presentation: After the legislative body passes on the report pursuant to Section 10301, any interested person may object to the proposed improvement, the extent of the assessment district, or to the proposed assessment by filing a written protest with the clerk of the legislative body at or before the time set for the hearing.... 1913 Act, Section 10311 Majority protest; overruling protest; modification or confirmation of proposed assessment: If the protest is against the proposed improvement and the legislative body finds that the protest is made by the owners of more than one- half of the area of the land to be assessed for the improvements, and protests are not withdrawn so as to reduce the protests to less than a majority, no further proceedings shall be taken for a period of one year from the date of the decision of the legislative body on the hearing, unless the protests are overruled by an affirmative vote of four - fifths of the members of the legislative body finding that the public health and • safety require that the improvements be made.... [emphasis added]. If a majority protest to the improvements was determined to exist, by the terms of the above quoted acts, the proceedings were to be terminated and no further proceedings were permitted for a period of one year.' Proposition 218 altered the conduct of assessment district proceedings. Among other things, Proposition 218 established new notice, hearing, and protest requirements with respect to any new or increased assessment regardless of the principal act being used to authorize the new or increased assessment. With the adoption of Proposition 218, a question arose as to whether or , not the notice, hearing, and protest provisions of the 1913 Act and the 1931 Act remained applicable and were to be followed at the same time as the notice, hearing, and protest provisions of Proposition 218. To clarify matters, the Proposition 218 Omnibus Implementation Act was adopted. The Implementation Act answered the question pertinent to this discussion as follows: ' Both the 1913 Act and the 1931 Act allowed the legislative body to overcome the one -year limitation period. Section 2931 of the 1931 Act states:... Nothing in this act contained shall prohibit the legislative body, within said one - yearperiod, from commencing and carrying on new proceedings for the construction of aportion of the improvement or the acquiring of a portion of the acquisition so protested against if it finds, by the affirmative vote of four - fifths of its members, that the owners of a majority of the property within the area of the assessment district to be established under said new proceedings are in favor of going forward with said portion of the improvement or • acquisition. • Stephen G. Badum, P.E. Page 3, February 10, 2004 53753 (a): The notice, protest, and hearing requirements imposed by this section supersede any statutory provisions applicable to the levy of a new or increased assessment that is in existence on the effective date of this section, whether or not that provision is in conflict with this article. Any agency that complies with the notice, protest, and hearing requirements of this section shall not be required to comply with any other statutory notice, protest, and hearing requirements that would otherwise be applicable to the levy of a new or increased assessment, with the exception of Division 4.5(commencing with Section 3100) of the Streets and Highways Code. If the requirements of that division apply to the levy of a new or increased assessment, the levying agency shall comply with the notice, protest, and hearing requirements imposed by this section as well as with the requirements of that division. The Implementation Act applies to all assessment district proceedings; it is not limited to those under either the 1913 Act or the 1931 Act. By its terms, the Implementation Act supersedes all other notice, hearing and protest requirements in existence on the effective date of the statute. Following the requirements of Proposition 218, the Implementation Act calls for a ballot protest procedure. Specifically, section 53753 of the Implementation Act further states: (b) Prior to levying a new or increased assessment, ... an agency shall give notice by mail to the record owner of each identified parcel.... Each notice shall also include, in a • conspicuous place thereon, a summary of the procedures for the completion, return, and tabulation of the assessment ballots required pursuant to subdivision (c), including a statement that the assessment shall not be imposed if the ballots submitted in opposition to the assessment exceed the ballots submitted in favor of the assessment, with ballots weighted according to the proportional financial obligation of the affected property. An agency shall give notice by mail at least 45 days prior to the date of the public hearing upon the proposed assessment.... (c) Each notice given pursuant to subdivision (b) shall contain an assessment ballot .. . (d). . . (2) A majority protest exists if the assessment ballots submitted, and not withdrawn, in opposition to the proposed assessment exceed the assessment ballots submitted, and not withdrawn, in its favor, weighting those assessment ballots by the amount of the proposed assessment to be imposed upon the identified parcel for which each assessment ballot was submitted [emphasis added). (3) If there is a majority protest against the imposition of a new assessment, or the extension of an existing assessment, or an increase in an existing assessment, the agency shall not impose, extend, or increase the assessment.... The ballot protest procedure under the Implementation Act is significantly different than the majority protest procedures under the 1913 Act and the 1931 Act. Neither the 1913 Act nor the 1931 Act requires that a ballot be delivered to each property owner. Instead, those acts . simply require notice to the owners that they may submit a written protest. More importantly, a majority protest is determined under the 1913 Act only when the protest is made by the owners Stephen G. Badum, P.E. Page 4, February 10, 2004 of more than one -half of the area of the land to be assessed for the improvements. Similarly, under the 1931 Act, a majority protest exists only when written protests are filed by owners owning more than one -half of the property fronting on the acquisition or improvement or more than one -half of the area of the property to be assessed for the acquisition or improvement, whichever is applicable. However, under the Implementation Act, a majority protest is determined by a ballot procedure and the assessment ballots are weighted by the amount of the proposed assessment to be imposed upon the identified parcel for which each assessment ballot was submitted. Front footage and area of land assessed are not considered.2 In addition, the notion of "majority" differs considerably between the Implementation Act and the 1913 Act and the 1931 Act. Under the 1913 Act and the 1931 Act a majority protest requires written protests from owners of more than half of the front footage or the land assessed. Under the Implementation Act a majority is determined based on the amount of weighted ballots actually received. A majority protest exists when the weighted ballots in opposition to the proposed assessment exceed the weighted ballots submitted in its favor. Thus, while the 1913 and 1931 Acts require at least a fifty percent protest, the Implementation Act may have a majority protest based on a single ballot irrespective of front footage or parcel size (e.g. a majority protest exists when only one ballot is returned and the ballot is in opposition). • Although not a controlling factor, the notice, hearing, and protest requirements of the • Implementation Act are, as discussed above, inconsistent with those of the 1913 Act and the 1931 Act. In any case, the notice, hearing, and protest requirements of the Implementation Act supersede those of the 1913 Act and the 1931 Act. The provisions found in the 1913 and 1931 Acts that prohibit any further proceedings for a period of one year following a majority protest are part of the protest requirements of those acts. Accordingly, the one -year prohibition period is also superseded. The Implementation Act does not contain a similar restriction. One may pose the argument that notwithstanding its connection to the superseded protest provisions of the 1913 Act and the 1931 Act, the one -year limitation should stand -alone and be applicable whenever there is a majority protest under the Implementation Act. The argument, however, lacks merit. First, as noted, the prohibition period results from and is part of the protest provisions of the 1913 Act and the 1931 Act. As such it is superseded whether or not it is inconsistent with the Implementation Act. Second, a majority protest under the Implementation Act may be, but more likely is not, equivalent to a majority protest under the 1913 Act and the 1931 Act. There often would be no way to determine that a majority protest under the 1913 Act and the 1931 Act existed from the results of a ballot procedure. Nothing in the 1913 Act and the 1931 Act or the Implementation Act suggests that the criteria for imposing the prohibition period should be changed. Third, the Implementation Act does not prohibit renewed proceedings after a 2 Assessments in some instances may be based entirely on front footage or parcel size. In those instances, a correlation may exist between the weighted ballot and the front footage or parcel size. Nonetheless, the Implementation Act does not take into consideration front footage or parcel size. Moreover, the Act does not suggest that one should analyze ballots to determine if a correlation may be possible in some instances. Stephen G. Badum, P.E. Page 5, February 10, 2004 • majority protest. The Implementation Act is not limited to proceedings brought under the 1913 Act and the 1931 Act, the statute applies to all assessment proceedings in a uniform manner. In the absence of a statute that prohibits further proceedings to impose the assessments for proposed Assessment District No. 75, the City may proceed without delay. In general, renewed proceedings would begin with a new resolution of intent followed by the notice, protest, and hearing requirements established by the Implementation Act. Should you have any further question or comment regarding the matters discussed in this opinion, please do not hesitate to contact me. Respectfully submitted, Robert E. Hesse]] • E ORDER OF PROCEDURE CITY OF NEWPORT BEACH ASSESSMENT DISTRICT NO. 75 (BALBOA BUSINESS DISTRICT) DATE OF PUBLIC HEARING: ApriI27, 2004 PUBLIC HEARING REQUIREMENT: HEARING REQUIRED PURSUANT TO THE "MUNICIPAL IMPROVEMENT ACT OF 1913," ARTICLE RIIID OF THE CONSTITUTION OF THE STATE OF CALIFORNIA AND CHAPTER 15.32 OF CITY CODE MAYOR: Announce that this is the time and place fixed for the public hearing on protests or objections to the Resolution of Intention, Assessment Engineer's Report, proposed assessments and all other matters relating to Assessment District No. 75 (Balboa Business District), and to designation of the area as an underground utilities district. Announce that all written protests and all ballots regarding Assessment District No. 75 (Balboa Business District) must be received by the City Clerk prior to the closing of the public hearing. CITY CLERK: Announce that notice of the Public Hearing has been given in the manner and form as required by law. STAFF OR CONSULTANTS - Explain purpose for Public Hearing. - Describe extent of works of improvement proposed to be acquired and boundaries of Assessment District. - Present and summarize Assessment Engineer's "Report". - Explain method and formula of assessment spread. - Make recommendation as to any modifications necessary in the assessments or proceedings. - Explain that the results of the tabulation of the ballots will be announced following the conclusion of the public hearing. - Explain that the area will be designated an underground utilities district END OF STAFF REPORT -- OPEN FOR PUBLIC DISCUSSION Order Of Procedure City Of Newport Beach Assessment District No. 75 (Balboa Business District) Page Two MAYOR: ASK EACH SPEAKER TO IDENTIFY THEMSELVES AND THEIR PROPERTY. First, ask to hear from anyone who wishes to speak against the acquisition of the improvements, the Assessment District, the underground utilities district, or the method of spread of the proposed assessments. Then, ask to hear from anyone who wishes to speak in favor of the proceedings. After all public testimony has been received and prior to the close of the public hearing, announce that all written protests and ballots must have been received by the City Clerk at this time and that after this time no more written protests or ballots may be submitted. Close the public hearing. CITY CLERK: Tabulate ballots and report on the tabulation of the ballots received. CITY COUNCIL: Discussion. IF THE BALLOT TABULATION REVEALS THAT A MAJORITY PROTEST HAS BEEN FILED PURSUANT TO ARTICLE XIIID: The City Council should entertain a motion to direct City staff to prepare a resolution abandoning the proceedings. IF THE BALLOT TABULATION REVEALS THAT A MAJORITY PROTEST HAS NOT BEEN FILED PURSUANT TO ARTICLE XIIID AND THE CITY COUNCIL WISHES TO PROCEED WITH THE FORMATION OF THE ASSESSMENT DISTRICT: CITY COUNCIL:Adopt RESOLUTION CONFIRMING ASSESSMENTS: Formal action declaring the results of the ballot procedure, ordering the acquisition of the improvements, confirming the assessments and approving the final Assessment Engineer's Report. 2 ASSESSMENT DISTRICT NO. 75 BALBOA BUSINESS DISTRICT Describe District & Scope of Work: Underground overhead Electrical, Telephone and Cable TV utilities Cost of District: AD 75 is estimated to cost $ 1,210,440.38 including ITCC TAX. Individual Assessments range from $ 979.09 to $ 54,393.83 with ITCC Tax $ 919.20 to $ 51,066.81 without ITCC Tax ITCC Tax: Federal Income Tax Component of Contribution Tax— City is indemnified from paying the tax, however the potential tax liability is disclosed in case the Federal Gov. changes the City's exempt status. Money collected is held for 8 years until statute of limitations expires, then monies are refunded to then property owners, or if money was not collected lien is released from property. Ballots: 1. Ballots must be turned in by the end of the Public Hearing, April 27, 2004, 2004. 2. Passage of the district is determined by a simple majority of the ballots returned. 30 day Cash Payment Period: 1. Can pay all of assessment or part of assessment 2. Cash payment will save approximately 7 (max) % of assessment. Assessment Notice billing will give both amounts ( the cash payment amount and the amount to bond). Basis of Assessment: Assessments are based on a modified frontage basis. The formula took into account the degree of undergrounding needed per parcel (electrical power service, telephone service and a portion of distribution lines) and the land use. (ie. commercial, residential, entertainment etc., etc.) Electrical Service Conversion: 1. Property Owner Responsibility to convert house service. 2. Do not hire contractor until Edison has completed installation underground conduits. City will send a letter to property owner asking them to connect to the underground system. Cost to underground Services: generally runs around $1,500 to $3,000 F4DSERnPBWIPA ,niegaWDWD251Ste.lnk2 -PH.6n g- AD -75 .da NN Po" JIV NOTICE OF APPOINTMENT AS DEPUTY CITY CLERK Notice is hereby given that Patrick Arciniega is appointed Deputy City Clerk effective April 27, 2004. This appointment shall continue until April 28, 2004 and is for the purpose of tabulating ballots for proposed Assessment District No. 75 at the City Council meeting of April 27, 2004. LaVonne M. Harkless, City Clerk a�, Lo Date q a7 loU — -4-IF CERTIFICATE AND STATEMENT OF ASSESSMENT BALLOT TABULATION ASSESSMENT DISTRICT NO. 75 (Balboa Business District) STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF NEWPORT BEACH ) THE UNDERSIGNED, City Clerk for the City of Newport Beach, in connection with the proceedings to consider the formation of Assessment District No. 75 (Balboa Business District) (the "Assessment District ") and the levy of assessments within the Assessment District, DOES HEREBY CERTIFY that, after the close of the public hearing held on April 27, 2004 to consider the formation of the Assessment District, the undersigned did tabulate the assessment ballots timely submitted by affected property owners. THE UNDERSIGNED further CERTIFIES that this Statement of Assessment Ballots Submitted shows the assessment ballots submitted in favor of the assessment and the assessment ballots submitted in opposition to the assessment, each total weighted according to the financial obligation of the affected properties for which the assessment ballots were submitted. TOTAL BALLOTS RECEIVED No. of Parcels: 62 Asmt Amt: $ '' � l .12 BALLOTS SUBMITTED IN FAVOR OF THE PROPOSED ASSESSMENT: No. of Parcels: � Asmt Amt: $ Asmt Amt Percent Yes: 64% BALLOTS SUBMITTED IN OPPOSITION TO THE PROPOSED ASSESSMENT: No. of Parcels: �4- Asmt Amt: $,_ 3C` . � ��i - Asmt Amt Percent No: 4V, % This certification is executed this April 27, 2004 ii ewport Beach, California. 00D'-V City Clerk ' 1 essment ngmee F: \LISERS\PB"d PAreiniega\AD\AD75 \BallotTabulation- AD75.da CITY OF NEWPORT BEACH ASSESSMENT DISTRICT NO. 75 (Balboa Business District) BALLOT LOG Asmt. No. Assessor's Parcel No. Property Owner Confirmed Assessment 1 = Yes 2 = No "Yes" Votes ($) "No,, Votes ($) 1 048 - 121 -20 Wah Trust $13,054.52 2 048 - 121 -21 Xenos,Jane $8,703.01 3 048 - 122 -01 Vines, Theron Jr. & Geneil $14,686.33 1 $14,686.33 4 048 - 122 -02 Depauw, Harvey K/B A Trust $14,686.33 5 048 - 122 -03 Depauw, Harvey K/B A Trust $14,686.33 6 048 - 122 -04 Mithcell Properties LLC $14,686.33 7 048 - 122 -05 Rose, Ronald W TR $14,686.33 8 048- 122 -06 Gucciardo, James Frank $7,343.17 1 $7,343.17 9 048 - 122 -07 Ashoff, Richard D TR $20,669.65 2 $20,669.65 10 048 - 123 -01 Martin, M B $9,790.89 11 048 - 123 -02 Lanco $7,343.17 2 $7,343.17 12 048 - 123 -03 Adams, Walter E $4,895.44 13A 932 - 160 -35 Kramer, Gary $0.00 13B 932- 160 -36 Kramer, Gary $0.00 14 048 - 123 -11 Bandel, Zvi & Eva $0.00 15A 932 - 160 -31 Balboa Assoc $0.00 15B 932 - 160 -32 Maurici, Comenico $0.00 15C 932 - 160 -33 Fernandez, Ruth A $0.00 15D 932 - 160 -34 Tinsley, Gary & Mary $0.00 16A 932- 160 -01 Fishman, Alfred & Molly $979.09 2 $979.09 16B 932 - 160 -02 Dunkleman, Donald TR $979.09 2 $979.09 16C 932 - 160 -03 Lean, Gregory Jan & Jill Alice $979.09 16D 932 - 160 -04 Villicana, Alexander TR $979.09 16E 932- 160 -05 Contractor Rustom N/R R Te $979.09 16F 932 - 160 -06 Montgomery, Harold G TR $979.09 2 $979.09 16G 932 - 160 -07 Lewis, James Dean & Mary Jane S $979.09 16H 932 - 160 -08 Duff, Robert W $979.09 2 $979.09 161 932 - 160 -09 Kaplanis, Peter T $979.09 1 $979.09 16J 932 - 160 -10 Thompson, Patrick G $979.09 16K 932 - 160 -11 Nashed, A/N 2002 TR $979.09 16L 932 - 160 -12 Green, Jerilyn R $979.09 16M 932 - 160 -13 Noekel, Lyle B TR $979.09 16N 932 - 160 -14 Whitehead, J W & M A 2002 TR $979.09 1 $979.09 160 932 - 160 -15 Boyles, Jeff G & Boyles, Gary E; Jol $979.09 1 $979.09 16P 932 - 160 -16 Beloblosky, Andrew $979.09 2 $979.09 16Q 932- 160 -17 Neufeld, Ernest A TR $979.09 1 $979.09 16R 932 - 160 -18 Rosenthal, Stuart $979.09 2 $979.09 16S 932 - 160 -19 Moore, James Patrick & Lisa M $979.09 16T 932 - 160 -20 Bechok, David $979.09 BALLOT LOG - 1 CITY OF NEWPORT BEACH ASSESSMENT DISTRICT NO. 75 (Balboa Business District) BALLOT LOG Asmt. No. Assessor's Parcel No. Property Owner Confirmed Assessment 1 =Yes 2 = No "Yes" Votes ($) "No" Votes ($) 16U 932 - 160 -21 Aspesi, Sabrina J $979.09 16V 932 - 160 -22 Smith, Kathleen S TR $979.09 2 $979.09 16W 932 - 160 -23 Jones, Hazel Loree TR $979.09 1 $979.09 16X 932 - 160 -24 Williams, Diane E $979.09 17 048- 122 -08 Parashis, Harry G $31,004.48 18 048- 122 -16 Irish, Deborah M. $14,686.33 19 048- 122 -15 Hobbs, Verity Christine TR; $14,686.33 20 048- 122 -10 Henry Tsutomu Tai TR of Defined C $14,686.33 2 $14,686.33 21 048- 122 -11 Brien, Ward T TR $14,686.33 1 $14,686.33 22 048- 122 -13 Kosger, Mari $14,686.33 2 $14,686.33 23 048- 122 -14 Richardson, Kimm A $14,686.33 24 048- 121 -09 Sota, Ronald J/J C $13,054.52 25 048- 135 -05 Wilson, LeRoy G TR $0.00 26 048- 135 -04 Barnett, Virginia Dee TR $4,895.44 27 048- 135 -03 Malazian, Gary E TR $4,895.44 1 $4,895.44 28 048- 135 -02 City of Newport Beach $14,686.33 1 $14,686.33 29 048- 135 -09 Collins, Evelyn F TR $0.00 30 048- 132 -19 Bonadona, David & Diana $32,636.30 31 048- 132 -02 Legere, Steven $9,790.89 2 $9,790.89 32 048- 132 -01 Nelson, Myrtle & Robert $9,790.89 2 $9,790.89 33 048- 132 -15 Farr, May S TR $17,949.96 2 $17,949.96 34 048- 132 -14 Kottman, Steven A $9,790.89 1 $9,790.89 35 048- 132 -13 B -n112 California Limited Partnersh $14,686.33 36 048- 132 -12 Shapiro, William D 2001 TR $14,686.33 37A 936- 520 -40 Victory Outreach La Puente Inc $7,832.71 37B 936 - 520 -41 Victory Outreach La Puente Inc $7,832.71 38A 936- 520 -31 Sechrist, Crystal $11,749.07 2 $11,749.07 37B 936 - 520 -32 Sclafani, Frederick/S TR $11,749.07 39 048- 132 -07 4 Sails Home Developers $10,878.77 2 $10.878.77 40 048- 132 -08 Mead 2001 TR $10,878.77 2 $10,878.77 41 048- 132 -09 Alexon, Harry TR $10,878.77 2 $10,878.77 42 048- 135 -07 Balboa Inn, LLC $14,686.33 1 $14,686.33 43 048- 135 -11 Sherreitt Rev Living Trust $4,895.44 1 $4.895.44 44 048- 135 -10 Read, James W Jr. $0.00 45 048- 135 -12 Wmc Investments LLC $0.00 46 048- 133 -05 Westrem, John L TR $3,628.07 2 $3,628.07 47 048- 133 -06 Herberts, Curtis AN L TR $5,439.38 1 $5,439.38 48 048- 133 -07 Westrem, John L TR $10,878.77 2 $10,878.77 49 048- 133 -08 Westrem, John L TR $2,719.69 2 $2,719.69 BALLOT LOG - 2 CITY OF NEWPORT BEACH ASSESSMENT DISTRICT NO. 75 (Balboa Business District) BALLOT LOG Asmt. No. Assessor's Parcel No. Property Owner Confirmed Assessment 1 = Yes 2 = No "Yes" Votes ($) "No" Votes ($) 50 048- 133 -15 Maddy, Kent J. & Lauri Lee $10,878.77 2 $10,878.77 51 048- 133 -17 Aircraft Analysts Inc $25,385.60 52 048- 133 -10 Hannaford, Nada TR $10,878.77 2 $10,878.77 53 048- 133 -04 Balboa Pavilion Company $50,765.76 1 $50,765.76 54 048- 133 -03 Norton, Helen B $10,878.77 55 048- 133 -02 Whipple, Susan M; Marans, Laurie $10,878.77 1 $10,878.77 56 048- 133 -01 Ferguson, Joseph M TR $10,878.77 2 $10,878.77 57 048- 131 -06 Sytnyk, Alex & Patricia $21,757.53 58 048- 131 -05 Sluder, Darrell H TR $10,878.77 1 $10,878.77 59 048- 131 -07 Wallen, Kathleen Trustee, Meurs G $10,878.77 60A 936- 520 -26 Karsant, Mary $8,985.86 2 $8,985.86 60B 936 - 520 -27 Okeefe, William F Jr $8,985.86 1 $8,985.86 61 048- 131 -03 Hoeft, Richard III & Carol $10,878.77 62A 936- 520 -28 Whipple, Ross / Susan M $8,703.01 1 $8,703.01 62B 936- 520 -29 Whipple, Ross J TR $8,703.01 1 $8,703.01 63 048- 131 -01 Miller, Joseph R $10,878.77 64 048- 131 -10 Orange County Sanitation District $12,564.97 65 048- 131 -08 Holley Southwestern Properties $10,878.77 1 $10,878.77 66 048- 131 -09 Vogel, Joanna Tooker $5,869.09 67 048- 134 -01 Avallone Commercial Properties $5,439.38 68 048- 134 -02 Daquila TR $0.00 69 048- 134 -05 City of Newport Beach $9,067.45 1 $9,067.45 70 048- 134 -04 Fuchs, Mellvine TR $5,439.38 2 $5,439.38 71 048- 134 -03 Fuchs, Mellvine TR $5,450.26 2 $5,450.26 72 048- 112 -18 Sibling Associates 1 $5,074.94 73 048- 112 -19 Sibling Associates 1 $11,787.14 74 048- 112 -22 Vallely Investments LP $18,972.57 1 $18,972.57 75 048- 112 -21 Edgewater Place $4,596.28 1 $4,596.28 76 048- 112 -09 Franklin, Michael & John H. $5,259.88 77 048- 112 -23 Edgewater Place $10,878.77 1 $10,878.77 78 048- 112 -13 City of Newport Beach $0.00 79 048- 112 -20 Balboa Fun Zone Rides Inc $38,438.31 1 $38,438.31 80 048- 116 -05 Depauw, Harvey K & Beverly A $5,439.38 81 048- 116 -04 Day, Justine R TR $54,393.83 1 $54,393.83 82 048- 116 -06 City of Newport Beach $25,837.07 1 $25,837.07 83 048- 115 -04 Ward, Sue Swoffer $40,795.37 2 $40,795.37 84 048- 115 -03 Allen, Gloria M TR $32,636.30 85 048- 115 -02 Candelmo, Anthony J $16,318.15 2 $16,318.15 86 048- 115 -01 Miller- klerer, Donna $16,318.15 BALLOT LOG - 3 CITY OF NEWPORT BEACH ASSESSMENT DISTRICT NO. 75 (Balboa Business District) BALLOT LOG Asmt. Assessor's Confirmed 1 = Yes "Yes" "No" Property Owner No. Parcel No. Assessment 2 = No Votes ($) Votes ($) 87 048 - 115 -12 Miner Properties $10,878.77 2 $10,878.77 88 048 - 115 -11 Ghuman, Joginder S; Singh, Harpre $27,196.91 89 048 - 115 -09 Faith, Lyle H & Charlotte J $5,439.38 2 $5,439.38 90 048 - 115 -14 Kruse, Richard H TR; Kruse R; C F $10,87877 1 $10,878.77 91 048 - 115 -13 Max Singer Limited Partnership $10,878.77 92 048 - 115 -07 Hardesty TR $18,314.40 2 $18,314.40 93 048 - 133 -16 City of Newport Beach $5,439.39 1 $5,439.39 TOTALS $1,210,440.38 $384,301.48 $307,640.64 COMBINED "YES" AND "NO" VOTES $691,942.12 PERCENT "YES VOTES" ("YES" VOTES / COMBINED VOTES) 55.54% TOTAL NUMBER OF PARCELS WITH BALLOTS SUBMITTED 62 PERCENT BALLOTS RETURNED BY DOLLAR ($) AMOUNT 57.2% Ballot Data Compiled By: John Friedrich BALLOT LOG - 4 *�Iy City of Newport Bead WO. BA- 04BA -050 BUDGET AMENDMENT 2003 -04 AMOUNT: EFFECT ON BUDGETARY FUND BALANCE: Increase Revenue Estimates P ncrease in Budgetary Fund Balance X Increase Expenditure Appropriations AND Decrease in Budgetary Fund Balance Transfer Budget Appropriations No effect on Budgetary Fund Balance SOURCE: from existing budget appropriations X from additional estimated revenues from unappropriated fund balance EXPLANATION: This budget amendment is requested to provide for the following: To increase revenue estimates and expenditure appropriations for proposed Assessment District 75 - Balboa Business District. This Budget Amendment also appropriates $55,030 for the related assessment on City owned property . ACCOUNTING ENTRY: BUDGETARY FUND BALANCE Fund Account 4075 3605 830 1000 010 3605 REVENUE ESTIMATES (3601) Fund /Division Account 4075 6960 830 26675 Amount Description Debit AD 75 Fund Balance AD 75 Bond Reserve General Fund Unappropriated Surplus $55,030 Description AD 75 Contributions $1,081,149 AD 75 Bond Reserve Proceeds $60,522 EXPENDITURE APPROPRIATIONS (3603) Description Division Number 74075- Various AD 75 (See Attached District Recap) Account Number Division Number 7013- C5200754 AD 75 - City Property Assessment Account Number Division Number Account Number Division Number Account Number Signed: Financial 4pproval: Administrative Services Director Signed Signed: City Council Approval: City Clerk Credit $42,071 $60,522 $1,039,079 $55,030.00 y -�_',' U3� Date WE Date CITY OF NEWPORT BEACH Assessment District 75 Balboa Business District Preliminary Recap Based on Engineer's Report Incidentals & Financing Costs Electric Design Prior Year Expenditures Budget Division No. 74075 Fiscal Year Ended Amendment Construction Inspection Acct. 2001 2002 Request Construction Underwriter's Discount 9815 Electric 9801 304,422 Phone 9802 548,000 Construction Contingency 9805 72,456 Potential ITCC Tax Official Statement Cost 9821 Total Construction _ _ 924,878 Incidentals & Financing Costs Electric Design 9810 Phone Design 9811 Assessment Engineering 9812 Construction Inspection 9813 City Administration 9814 Underwriter's Discount 9815 Capitalized Interest 9816 Bond Counsel 9817 Paying Agent Fees 9818 Filing Fees 9819 Printing, Advertising, Notices 9820 Official Statement Cost 9821 Incidental Contingency 9825 Total Incidentals & Financing Costs Total Proposed Expenditures Bond Reserve Total Assessment District Commitment Less: ITCC Tax Total Expected Assessment Commitment 15,000 7,400 19,671 11,504 9,900 11,400 30,261 21,183 20,000 2,500 500 5,000 TOTAL Project Commitment 304,422 548,000 72,456 68,768 15,000 7,400 31,175 9,900 11,400 30,261 21,183 20,000 2,500 500 5,000 1,953 1,953 34,671 7,400 114, 201 156,272 34,671 7,400 1,039,079 1,149,918 60,522 1,210,440 (68,769) 1,141,671 RESOLUTION NO. 2004 - 33 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH APPROVING CONTRACTS FOR UTILITY IMPROVEMENTS FOR ASSESSMENT DISTRICT NO. 75 (BALBOA BUSINESS DISTRICT) 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. 75 (BALBOA BUSINESS DISTRICT) (hereinafter referred to as the "Assessment District'); and 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; and 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 $304,422.00 SBC - letter agreement $548,000.00 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 27th day of April 2004. AYES: Heffernan, Rosansky, Adams, Bromberg, Webb, Nichols, NOES: - -- Mayor Ridgeway ABSENT: ABSTAIN: ATT //STT: CITY CLERK MAY RT g Yifa�'� /e CAO #iy STATE OF CALIFORNI A COUNTY OF ORANGE as. CITY OF NEWPORT BEACH } I, LaVonne M. Harkless, City Clerk of the City of Newport Beach, California, do hereby certify that the whole number of members of the City Council is seven; that the foregoing resolution, being Resolution No. 2004-33 was dulv and regularly introduced before and adopted by the City Council of said City at a regular meeting of said Council, duly and regularly held on the 27th day of April, 2004, and that the same was so passed and adopted by the following vote, to wit: Ayes: Heffernan. Rosansky, Adams, Bromberg. Webb, Nichols, Mavor Ridgeway 'Noes: None Absent: None Abstain: None IN WITNESS WHEREOF. I have hereunto subscribed my name and affixed the official seal of said City this 27th day of April, 2004. 44 N (Seal)1111 x City Clerk Newport Beach, California RESOLUTION NO. 2004 -34 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DECLARING THE RESULTS OF THE BALLOT TABULATION, APPROVING THE ASSESSMENT ENGINEER'S REPORT, CONFIRMING ASSESSMENTS FOR ASSESSMENT DISTRICT NO. 75 (BALBOA BUSINESS DISTRICT), ORDERING THE ACQUISITION OF IMPROVEMENTS, 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. 75 (Balboa Business District) (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 "); and 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; and WHEREAS, this City Council further finds that the area comprising the Assessment District should be designated an underground utilities district pursuantto Chapter 15.32 of the Code of Ordinances of the City of Newport Beach; and WHEREAS, the Report, as preliminarily approved, contained all the matters and items called for pursuant to the provisions of the Improvement 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 Improvement Act, Article XIIID, and the Implementation Act are referred to herein collectively as the "Assessment Law "), 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 1 improvements and assessments was held on the date hereof, and at the conclusion of the public hearing all ballots submitted pursuant to the Assessment Law were tabulated, all in the manner provided by the Assessment Law; and WHEREAS, at this time this City Council determines that the ballots received by the 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; and 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 are hereby overruled and denied. BALLOT TABULATION PURSUANT TO ARTICLE MID 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 Engineer's 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. 2 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 Engineer's 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, including the portion for possible federal tax liability, as authorized by these proceedings and the Assessment Law. 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. The City Clerk shall forthwith deliver to the Superintendent of Streets the assessment, together with the diagram attached thereto and made a part thereof, as confirmed, with a 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 for that 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 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 3 as set forth by law and specifically Section 3114 of the Streets and Highways Code of the State of California. MAILED NOTICE SECTION 10. Upon recordation of the diagram and assessment, a notice shall be mailed to each owner of real property within the Assessment District at the owner's 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. 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 the 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 for the proceedings for the 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 to collect and maintain records of the 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 pursuantto 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 pursuantto 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 bythis reference. PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Newport Beach, held on the 27th day of April, 2004, by the following vote: AYES: Heffernan, Rosansky, Adams, Bromberg, Webb, Nichols, ayor Ridgeway NOES: - -- ABSENT: - -- ABSTAIN: - -- STATE OF CALIFORNIA } COUNTY" OF ORANGE CITY OF NEI�TORT BEACH I, LaVonne M. Harkless, City Clerk of the City of Newport Beach, California, do hereby certify that the whole number of members of the City Council is seven; that the foregoing resolution, being Resolution No. 2004 -34 was duly and regularly introduced before and adopted by the City Council of said City at a regular meeting of said Council, duly and regularly held on the 27th day of April, 2004, and that the same was so passed and adopted by the following vote, to wit: Ayes: Heffernan, Rosansky, Adams, Bromberg, Webb. Nichols, 'Mayor Ridgeway Noes: None Absent: None Abstain: :None IN «FITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said City this 27th day of April, 2004. (Seal) & L97L7U— �—O , A�d &,'l City Clerk Newport Beach. California