HomeMy WebLinkAbout15 - Irrevocable Offer of Dedication - Newport Ridge ParkCITY OF NEWPORT BEACH COUNCIL AGENDA
CITY COUNCIL STAFF REPORT _
9_t3 -o
Agenda Item No. 17
August 23, 2005
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Office of the City Attorney
Robin Clauson, City Attorney
(949) 644 -3131 or rclauson(oacity.newport- beach.ca.us
City Manager's Office
Dave Kiff, Assistant City Manager
(949) 644 -3002 or dkiffe city. newport- bea ch. ca. us
SUBJECT: Acceptance of Irrevocable Offer of Dedication: Newport Ridge Park
ISSUE:
Should the City accept a 1993 Irrevocable Offer of Dedication for Newport Ridge Park
and then convey ownership of all of the Park except the land underneath the proposed
Newport Coast Community Center complex to the Newport Ridge Community
Association or should the area of baseball fields also be accepted?
RECOMMENDATION:
Direct the Newport Coast Advisory Committee to review and refine the Open Space
Goals outlined in the Pre - Annexation Agreement at the NCAC's September meeting
and to return a recommendation to the City Council for confirmation.
DISCUSSION:
In September of 2004 the City Council authorized the Mayor or the City Manager to
accept dedication of the Newport Ridge Park and to quitclaim, lease or otherwise
transfer, at no cost to the Newport Ridge Community Association ( "NRCA "), that portion
of Newport Ridge Park that is not necessary for the maintenance and operation of the
proposed Newport Coast Community Center. A map of the affected area is shown in
Exhibit 1.
As a result the City Council's action in September 2004, a 1993 Irrevocable Offer of
Dedication ( "IOD" — see Exhibit 2) from The Irvine Company ( "TIC ") to the County of
Orange ( "County ") was provided to the City Attorney for review and to draft the
appropriate documents for the City of Newport Beach ( "City ") to accept the park and to
quitclaim or lease back the portion of the property unnecessary for the Newport Coast
Newport Ridge Park IOD
August 23, 2005
Page 2
Community Center. Since then, the City Attorney has reviewed the IOD, the 2001 Pre -
Annexation Agreement ( "PAA "), and various other related documents that have been
recorded by TIC after the IOD was recorded. Taken together it became clear to the City
Attorney that additional action of the City Council was necessary to accept the IOD.
This report will provide some background into the IOD and a brief summary of its
provisions along with a summary of provisions of the FAA and other relevant
documents. This background and summary are intended to assist Council so that they
can give staff direction on how to proceed.
Background:
The 7,700 -acre Newport Coast Community at the eastern edge of the City is a
combination of two planned communities (the San Joaquin Hills Planned Community
[now known as Newport Ridge] and the Newport Coast Local Coastal Program, 2nd
Amendment). In the 1980s and 1990s as the communities were developed, the major
landowner, TIC, and the planning jurisdiction, the County, established a somewhat
complex program of private ownership of lands like parks, street medians, parkways,
and slopes along public streets.
Assessment and Mello -Roos districts funded construction of the Newport Coast's major
infrastructure -- like the parks (including Newport Ridge Park), the Newport Coast Fire
Station, Newport Coast Elementary School, sewers, water mains, streets, streetlights,
stoplights, and the installation of the community's street landscaping. When
homeowners moved into the community, the development was set up such that
homeowners' associations and community associations (HOAs /CAs) often picked up
both ownership and maintenance costs of certain properties.
As part of the County's approval for development of Newport Coast, the County
required TIC to irrevocably offer Newport Ridge Park and Crestridge Park to the County
via the IOD. Until such time as the IOD is accepted, TIC or its successor holds title to
the property subject to the IOD. Currently, the NRCA as successor to TIC owns and
maintains both Newport Ridge Park and Crestridge Park as private parks.
The Local Agency Formation Commission (LAFCO) approved the City's annexation of
the Newport Coast effective January 1, 2002. Upon annexation, all right, title, and
interest of the County vested in the City, including the right to accept the IOD.
In the years leading up to the January 1, 2002 annexation of the Newport Coast, the
City Council and a group known as the Newport Coast Committee of 2000 (NCC2K)
negotiated a FAA (attached as Exhibit 3) that addressed several annexation - related
issues, including the acceptance of offers of dedication for, among other things,
Newport Ridge Park. Today, the Newport Coast Advisory Committee ( "NCAC ") helps
oversee the implementation of the PAA, pursuant to City Council adopting Resolution
No. 2001 -81 (attached as Exhibit 4).
Newport Ridge Park IOD
August 23, 2005
Page 3
Summary of Relevant Legal Documents:
Irrevocable Offer of Dedication:
The 1993 San Joaquin Hills Local Parks' IOD specifically offered dedication of Newport
Ridge Park and Crestridge Park, in fee, to the County. The parks were dedicated
subject to reservations by TIC of certain rights under and over the land including non-
exclusive easements for installing park improvements such as tennis courts, regulation
and practice softball fields, soccer fields, volleyball courts, picnic areas and tot lot
playgrounds. In 1994 the legal description for a Newport Ridge Park was changed by
the recording of a Lot Line Adjustment.
Grant Deed
In 1999 TIC granted fee title to NRCA subject to the terms of the IOD and a covenant
running with the land that the property would be used as a community park for the
benefit of all the "Owners of Residences" as defined in the Declaration of CC &Rs
(Covenants, Conditions and Restrictions) for NRCA.
Pre - Annexation Agreement:
The City and the NCC2K entered into the PAA in 2001. The PAA documented certain
negotiated terns by which the residents of Newport Coast would support City's
application for annexation of Newport Coast to the City. Paragraph (7) of the PAA dealt
directly with the location, design and funding of a community center. The PAA
envisioned the successor committee, NCAC, to hold public meetings to consider the
Newport Coast community's interest in building a community center. The NCAC was
given authority to make recommendations to as to the location, design, siting and
construction of a community center within certain design and funding parameters. The
City was obligated to use its best efforts, to the extent permitted by law, to approve
permits and grant land use approvals necessary to the design, siting and construction of
the community center.
The steps outlined in Paragraph (7) have been complied with and the plans to build the
community center at Newport Ridge Park were submitted to City Council and approved
on February 24, 2004. However, the PAA also envisioned a process whereby the
NCAC would review and refine certain Open Space Goals that include Newport Ridge
Park. Until that section is completed, the City Council cannot determine how much of
Newport Ridge Park to accept under the IOD or all the terms and conditions under
which it would lease back the park to the NRCA.
Paragraph (13) of the PAA deals with open space and recreational facilities. This
paragraph includes steps for the City to accept open space offers of dedication and
envisions the NCAC will "review and refine" certain "Open Space Goals" outlined in the
PAA and submit the Open Space Goals to the City Council for "for confirming action."
The Assistant City Manager, Dave Kiff, does not recall that the NCAC has ever
Newport Ridge Park IOD
August 23, 2005
Page 4
reviewed and refined the Open Space Goals as agreed to in the PAA. This may explain
why the Council was unfamiliar with the staffs direction to the City Attorney that the City
did not want to accept all of the Newport Ridge Park but only the portion necessary for
the community center. This particular Open Space Goal has been discussed in the
context of the community center but not in the larger overall concept envisioned in the
provisions of Paragraph 13.
Before the City Council gives the City Manager and the City Attorney further direction on
whether and to what extent the City accepts the Newport Ridge Park and /or Crestridge
Park, we recommend that the NCAC review and refine the Open Space Goals as
outlined in the PAA with consideration to all open space and recreational activities and
development within the Newport Coast and with consideration to the testimony and
opinions of Newport Coast residents at a public meeting. At that meeting the NCAC can
forward its Open Space Goals to the City Council for confirmation and direction to staff
for acceptance of the IOD.
Committee Action: The NCAC generally supports the City's acceptance of area
necessary to operate the Community Center but, because of previous opposition by the
NRCA HOA Board, does not want the City to accept the rest of Newport Ridge Park and
Crestridge Park. If the City chooses to accept the rest of Newport Ridge Park and
Crestridge Park, NRCA and the NCAC has asked that the City lease back this land to
the NRCA.
Environmental Review: The City Council's approval of this agenda item does not
require environmental review.
Public Notice: This agenda item may be noticed according to the Brown Act (72 hours
in advance of the public meeting at which the City Council considers the item).
Submitted by:
i )
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Robin Clauson,
City Attorney
Submitted by:
— � (�� 14),
Day iff,
Assistant City Manager
Attachments: Exhibit 1 — Map
Exhibit 2 — IOD
Exhibit 3 -- 2001 Pre- Annexation Agreement
Exhibit 4 — Resolution No. 2001 -81
F:\users\cat\shared\CCstaffreports\NRparklOD.doc
EXHIBIT 1
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EXHIBIT 2
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RECORDED AT- REQUEST OF, AND RETURN TO:
County of Orange
GSA/Real Estate
14 Civic Center Plaza. Third Floor
Santa Ana, CA 92701
DOC # 43- 0234810
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IRRFVOCABI F OFFER QF—DED117ATION
THii IRVINE COMPANY. a Michigan corporation (the "Offeror'). hereby
irrevocably offers it, dedicate in fee to the County of Orange. a political subdivision of the
State of California (the 'County'). for local park purposes consistent with the County's Local
Park Code. the - .following real property covered by that certain Tract Map No. 14509 (the
'Tract Map ") (collectively. the 'Property'): (i) Lats g and 10 of the Tract Map (the
"Newport Ridge Park") as depicted on Exhihit A and described in Exhibit B and (ii) Lot 37
of the Tract Map as depicted on Exhihit A and described in Exhihit (the "Crestridge
Park "). This Offer is made pursuant to California Government Code Section 66477.
EXCEPTING AND RESERVING unto Offeror, iLs successors and assigns (which
may include any homeowners' association). together with the right to grant and transfer all
or a portion of the same. the following:
A. Any and all oil. oil rights. minerals. mineral rights. natural gas rights and
other hydrearbons by whatsoever name known. geothermal steam and all products derived
from any of the foregoing. that may be within or under the Property. together with the
Perpetual right of drilling. mining. exploring, and operating therefor and storing in and
removing the same from the Property or any other land. including the right to whipstock or
directionally drill and mine from lands other than the Property, oil or gas wells. tunnels and
shafts into, through or across the subsurface of the Property and to bottom such wbipstocked
or directionally drilled wells. runnels and shafts under and beneath or beyond the exterior
Emits thereof. and to redrili. rcumnei. equip. maintain. repair. deepen and operate any such
wells or mines: but without the right to enter upon or use the surface of the Property to drill.
mine. store. explore, or operate thrcugh the surface or the upper 500 feet of the subsurface
of the Property:
B. Except for use of surface or subsurface water by the County for local park
purposes on the Property. any and all water. solar- heated water. reclaimed rights. whether
surface or subsurface. appurtenant or relating to the Property. or owned or used by Offeror
in connection with the Property together with the right to explore, drill. redrill and remove
such water from the Property. to store such water in the ground -water basin underlying the
Property by percolating. spreading, or injecting water into such basin from Imations on lands
lying outside of the Property, and to divert or otherwise utilize such water, rights, or
interests on any other property owned or leased by Offeror. but without the right to enter
upon or use the surface of the Property in the exercise of such right:
C. Non-exclusive easements over, under and across the Property for the
construction. installation. maintenance. and use of electric. gas. telephone. cable television.
water, sewer, drainage facilities. gas monitoring probes and other related facilities, and in
connection with the Crestridge Park portion of the Property for the construction, installation,
maintenance, and use of certain flood control. sewer and storm drain improvements as shown
on the Tract Map and as memorialized by the easements shown on the Tract Map, so long as
use of such easement does not unreasonably interfere with the County's use and enjoyment of
the Property as a local park and the Property is restored to the condition existing prior to the
011 wrG \IRV[ea \41 DGE- LP.DD8
use of such casement. If the County (or any governmental agency on hchalf of the County)
has accepted this Offer. Offeror shall nut thereafter construct or place any facility or
improvement on the Property pursuant to thii reserved easement without first providing
County's Environmental Management Agcncy /Harbors. Beaches and Parks District (the
"EMA ") thirty -(30) days in which to review and comment on the size and location of each
proposed improvement: and
D. Non - exclusive easements on. over. under and /or across the Property for the
construction. installation. development and maintenance of the following improvements to the
Prepeny (the "Park Improvements "). including. but not limited to: (i) with respect to the
Newport Ridge Park. tennis courts. a regulation softball field. a practice softball field. a
soccer field. grass volleyball coups. a tot lot playground. picnic areas and other
improvements. full and half basketball courts. restroom facilities. a trellis shade structure. a
parking lot. walkways. benches. landscaping. landscape irrigation. and graded or
manufactured slopes: and (ii) with respect to the Crestridge Park. a tot lot playground. an
open play area. picnic areas and other improvements. a gazebo. walkways. benches.
landscaping. landscape irrigation. and graded or manufactured slopes. Offeror shall not
construct. place. assemble. or maintain on the Property any improvement of any nature
without first providing EMA thirty (30) days in which to review and comment on the exterior
design. size. color. appearance. and location of each proposed improvement (the "Park _
Improvement Plans "). FNIA shall review the Park Improvement Plans for consistency with
criteria established by the County pursuant to the San Joaquin Hills Planned Community
Local Park Implementation Plan (the "Implementation Plan "). Before commencing any
construction of any such improvement. Offeror shall consider incorporating into revised Park
Improvement Plans any suggested comments and /or revisions by EMA which are transmitted
in writing to Offeror within the thirty (30) day review period and which are compatible with
Offeror's surrounding development. If the County does not send written comments to
Offeror within such thirty (30) day review period. then such Park Improvement Plans shall
be deemed acceptable to Counry. If the County (or any govemmental agency on behalf of
the County) has accepted this Offer. entry unto the Property thereafter for use of this
reserved easement shall be subject to compliance with the reasonable and typical
requirements of County's encroachment permit which are consistent with the terms of this
Offer.
Upon recordation of this Offer, Offeror shall provide to County a policy of title
insurance for the Property issued as of the date of recordation of this Offer in the amount of
$38.700 consistent with the Preliminary Title Report issued by First American Title
Insurance Company. Order No. 9260406, dated October 29. 1992. as set forth in Exhibit D
attached hereto ( the "Title Report") and insuring County as provided in the following
paragraph.
Offeror hereby covenants and agrees that the Property is. and shall remain insurable
against all liens. encumbrances, assessments, easements. leases (recorded and unrecorded).
and taxes except:
011 WE" IRV I RE W I OGE- LP.005
(1) Any installment of general and special county aril city taxes. if any.
allocable to a period subsequent to the time title is vested in or physical possession is taken
by County. whichever first occurs. and all taxes subsequent thereto (however. Offeror shall
remain liable for payment of any taxes allocable to a period prior to the time title is vested in
or acrual possession is taken by County, whichever first occurs. pursuant to the provisions of
Section 5084 and 5086. California Revenue and Taxation Code. as amended: and Offeror
shall pay all taxes due and payable affecting said Property together with penalties and interest
thereon. and delinquent or nondelinquunt assessments or bonds and any interest thereon prior
to recordation of this Offer).
(2) The lien of supplemental taxes. if any. assessed pursuant to the
provisions of Chapter 3.5 (commencing with Section 75) of the Revenue and Taxation Code
of the State of California added by Chapter 498. Statutes of 1983. will be permitted to show
in County's title insurance policy. However, Offeror shall remain liable for payment of such
taxes as set forth in Paragraph (1) above.
(3) All exceptions to title contained in the Title Report, except item no. 8
regarding a Deed of Trust to which Prudential Insurance Company of America is the
beneficiary.
(4) A non - exclusive easement over and across Crestridgc Park granted to
the County for purposes of monitoring and maintaining certain flood control. sewer and
storm drain improvements as shown on the Tract Map and as memorialized by the easements
shown on the Tract Map or any other similar improvements to be installed by Offeror within
the Property .
(5) 'I'rc exceptions. reservations. and covenants provided in this Offer.
OFFEROR states, and COUNTY acknowledges.
(i) that the Property may have been farmed or used for grazing
purposes and that in connection therewith fertilizers. pesticides. weed
killers and other agricultural chemicals may have been used on the
Property: and
(ii) that such chemicals may be present on the Property.
OFFEROR is unaware of any other releases of hazardous materials that
may have occurred on the Property — including any releases that may
have affected the soil or the groundwater of the Property.
Furthermore. the Property is in close proximity to the Coyote Canyon
Landfill (dtc 'Landfill ") which has been operated by the County and
the County should be aware of any releases of hazardous materials
from such Landfill. and. .therefore. Offeror makes no representation or
warranty as to any releases of hazardous materials unto the Property
arising from operation of the Landfill. As used in this Offer the tern
C!I %DEq IRV I RE \RIDGE- 1F.00a
hazardous materials means the materials defined in Section 25501(k) of
the California Health and Safety Code. The tcmm "hazardous
materials" includes. without limitation. Pesticides. fungicides.
rodenticides. and petroleum hydrocarbons in quantities or
concentrations that are injurious to the health and safety of persons or
harmful to the environment.
Except for the allocation of liability for remcdiation of any portion of the Property
due to the release of hazardous materials. which shall be governed by law. COUNTY will
accept the Property. if at all. in "AS 15" condition without any representation or warranty by
OFFEROR or its representatives. real or implied. as to the condition of the Property or its
suitability for any use.
The County acknowledges and agrees that upon acceptance of this Offer the Property
shall be subject to the County Park Abandonment Law of 1959 contained in Government
Code Sections 25580 gl. !.iM. (the " Abandonment Act -) and that the County shall not sell.
contract to sell. assign. (case for other than a local park purpose. or in any other way
transfer or convey an interest in all or any portion of the Property to a third party (except for
grants of easements for utility purpase_ which support local park uses on the Property-) or
abandon the use of the Property for local park purposes except in accordance with the
Abandonment Act as currently set forth in Government Code Sections 5580 et. sec.
Offeror shall Consstruct and install and. until this Offer is accepted. shall maintain (or
cause to be maintained) the Park Improvements in accordance with the Park Improvement
Plans.
Until this Offer is accepted by the County. Offeror and its successors and assigns are
permitted to freely enter upon the Property and to use the Property for (i) open space and
landscaped areas (ii) any uses consistent with local park purposes (including constructing the
Park Improvements and placing fencing and gates surrounding the Property) and /or (iii) any
uses consistent with the exceptions and reservations contained in this Offer . After
acceptance of this Offer, Offeror and its successors may enter upon the Property to construct
and install the Park Improvements subject to obtaining an encroachment permit from the
County.
Prior to acceptance of this Offer by County. Offeror hereby grants to County. its
agents, or assigns. a license to enter the Property for purposes relatod to planning activities.
Any such access shall be subject to Offeror's entry permit requirements and shall be
reasonably provided so long as the parry desiring access holds a valid entry permit from
Offeror and gives Offeror no less than 5 days prior written notice of such entry.
Recordation of this Offer by County shall automatically and immediately provide
Offeror 18.5 credit acres of 'Local Park Code Credits" in accordance with the County's
Local Park Code and the Implementation Plan.
011 \DEC \IRV IME \R I01C-L1.00L
Offeror and County acknowledge and agree that, until this Offer is accepted, the
Properly is to be exempt from County fee requirements.
This Offer has been reviewed and approved by County as satisfying the
Implementation Plan as it relates to the offer of dedication of the Property for local park
purposes.
This Offer may be accepted only by County Resolution of the Board of Supervisors of
County whenever, in the judgment of said Board, the Properly is desired. Acceptance of this
Offer by County shall constitute acceptance .of ownership of the Property and all Park
Improvements constructed thereon.
IN WITNESS WHEREOF. Offeror has caused this Offer to be executed by its
duly authorized officers as of this tyt day of �,.. I , 1993.
011 UECl14V IM E \i IOU-LV.008
r
OFFEROR
THE IRVINE COMPANY.
a Michigan corporation
i-
By: / '
William H. McFaorid
Executive Vice - President
('James R. Cavanaugh
/Assistant Secretary
Q PPN
CERTIFICATE OF ACCEPTANCE
This is to certify that the within document is hemby accepted for purposes of
recordation only, under authority of a Resolution adopted by the Board of Supervisors of
Orange County. This acceptance is not to be construed in any way as an acceptance of the
Offer for the Property. -
Dated: By:
Michael J. Hot.,�rd
Manager, Ac 'uisilions
GSA/A,rd stale
APPROVALS
Approved as to e bY
County Counsel an " I. , 9
i
By;
1
De sc4 ion Ap—o EMA
on ri-2
—
By:
011%UEC \:0.V IRE %R1Da- LP.00a
Recommended for approval
by General Services Agency,
Real Estate
By
Recommended for approval by
Environmental Management A ency
By:
ACKNOWLEDGEMENTS
STATE OF CALIFORNIA )
)ss.
COUNTY OF ORANGE )
On rr'L 19Q3 before me.
6U. T. = TT //t/7 personally appeared
H eifri tme, R Gunrta e/r personally known to me (0r-$rewd-eo
Hie en the besis of sap i6 ) to be the''person(�whose name Ls) j,Qa, subscribed
to the within instrument and acknowledged to me that be/SkGthev executed the same in
bi51b itheir authorized capaciqqjc..�), and that by %clLie /theirsignarure(s) on the instrument
the person s). or the entity upon behalf of which the persons) acted. executed the
instrument.
WITNESS my hand and official seal.
I % Nna=.s<
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W Cann. BC*" F9 1S M7
STATE OF CALIFORNIA )
)ss.
COUNTY OF ORANGE )
Notary P blic
On before me,
personally appeared
personally known to me (or proved to
me on the basis of satisfactory evidence) to be the person(s) whose name(s) is /are subscribed
to the within instrument and acknowledged to me that he /she /they executed the same in
his /her /their authorized capacity(ies). and that by his /her /their signature(s) on the insLniment
the person(s), or the entity upon behalf of which the person(s) acted. executed the
instrument.
WITNESS my hand and official seal.
0111 ECVRVIRE \R1D1u -LP.QM
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Notary Public
EXHIBIT A
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EXHIBIT A
rt Ridge Par
Crestridge Park
April 2, 1993
LEGAL DESCRIPTION
NEWPORT RIDGE PARK
Lots 8 and -10 of Tract No. 14509, in the County of orange, State of
California, as shown on a map recorded in Book 688, Pages 1 to 16 inclusive of
Miscellaneous Maps, in the office of the County Recorder of said County, as said
tract was amended by those certain Certificates of Correction recorded June 26,
1992 as Instrument No. 92- 431391, and recorded July 8, 1992 as Instrument No.
92- 457550, both of Official Records of County of Orange, California.
APPROVED:
OLD- SCOIT
Right- of -Vay Engineer
HIS:an
3040210144292
EXHIBIT B
April 2, 1993
LEGAL DESCRIPTION
CRESTRIDGE PARK
Lot 37 of Tract No. 14509, in the County of Orange, State of California, as
shown an a nap recorded in Book 688, Pages L to 16 inclusive of Miscellaneous
Maps, in the office of the County Recorder of said County, as said tract wea
amended by those certain Certificates of Correction recorded June 26, 1992 as
instrument No. 92- 431391, and recorded July B, 1992 as Instrument No. 92- 457550,
both of Official Records of County of Orange, California.
APPROVED:
�-7.i' EAROi� Y. s�arr
Right- of -Vay Engineer
HIS:an EXHIBIT "C"
3040230144292
OR- 9260406
FIRST AMERICAN T7= INSURANCE COMPANY
114 E.0 FIIRh St.R, (P.O. Ras PAT)
S Tta ABU, 41i[omis 9'2702
(714l 555 -3211
CORE`_', CROUDACS, DIETRICH AND DRAGUN
5 PARK PLAZA, SUITE 1050
IRVINE, CALIFORNIA 92714
ATiN: DAN CORBY
YOUR NO. MH''-_ IRVINE COMPANY)
IN RESPONSE 10 THE ABOVE REFERENCED APPLICATION FOR A POLICY DF TITLE INSURANCE, THIS COIPARY
NESEBT REPJ TS THAI IT IS PREPARZO TO ISSUE. OR CAUSE TO BE ISSUED, AS OF INC DATE MCREOF, A
PCLICT OR POLICIES OF TITLE INSURANCE DESC218INC THE LARD AND THE ESTATE OR INTEREST THEREIN
HEREINAFTER SET FORTH, INSURING AGAINST LOSS WHICH HAT BE SUSTAINED BY REASON OF ANT DEFECT,
LIEN OR ENCYRBRAHCE NOT SHOWN M REFERRED TD AS AN EXCEPTION SELOJ OR NOT EXCLUDED FROM
COVERAGE PUASOAXI 10 THE PRINTED SCHEDULES, CONDITIONS AND STIPULATIONS OF THE POLICY FORMS.
THE PAINTED E% EPTEWS A" EXCLUSIONS FNCI THE COVERAGE OF THE POLICY OR POLICIES ME SET F09TH
IN EXHIBIT A ATTACHED. COPIES OF THE POLICY FIN M.S SXOUW BE READ. THEY ARE AVAILABLE FROM
THE OFFICE WHICH ISSUEO THIS REPORT.
THIS REPORT (AID ANT SUPPLEMENTS Olt AMENDMENTS HERETO) IS ISSUED SOLELY FOR THE PURPOSE OF
FACILITATING THE ISSUANCE OF A POLICY OF TITLE INTORAX :E AND NO LIABILITT IS LESMED HESEST.
IF IT IS DESIRED THAT LIABILITY BE ASSUMED PRIOR TO THE ISSVAHCE OF A POLICY OF TILE
INSURANCE, A BINDER OR COWITMECT SHOULD BE REGUESIEO.
GATED AS OF 0G703ER 29, 19.2 AT 7:30 A.M.
By KMi2R C. REIMER - TITLE OFFICER
C? POLICY OF TITLE I :iSL:v'2CE CC: ED .'
:.5 < -PORT IS: AM= RICAIP LAIv� TITLE A550 C= ?.=IO:: ON�LRS
POLICY.
PAGE i
OR- 9260406
TITLE TO THE WITS OR INTEREST IT THE D+IE HEREOF IS VESTED IN:
THE IRVINL COMPANY, A MICHIGAN CORPORATION.
THE ESTCTE OR INTE]EST IN THE LIVD HEIEIHRFTER DESCRIBED OR REFERRED TO COVERED FIT THIS REPOIT IS:
A FEE.
IT THE DNTE HEIEDF EXCEPTIONS TO COVERNGE IN 60017IGH 70 THE PRINTED EXCEPTIONS IUD EXCLUSIONS IN THE POL:CD
FM 141LO RE IS FOLLOWS:
1. TAXES, BONDS A'`7 ASS>SSF- ':,'TS NOT EXAVMITED.
NOTE: A PAYMENT 0? $50.00 TO COVER THE COST OF A TAX SEARCH WILL
BE R= QUiRED PRIOR '1D T E ISSUANCE OF A TAX REPORT.
2. 7HE LIEN CF SUPPLEMENTAL TAXES ASSESSED PURSUANT TO CFAPTER 3.5
CO?='F=NCING WITH SECTION 75 OF THT CALIFORNIA RF;VENliz AND TAXATION
CODE.
3. TFiE PROPERTY COVERED }iEREIN LIES WITHIN THE BOUNDARIES OF
CC:*ENNITY FACILITIES DISTRICT NO. 1 OF IRVIF.'E RANCH WATER DISTRICT,
AS DISCLCSED BY AN ASSESS,-'NT DISTRICT MAP FILED AS IITSTRUIL.^IT NO.
86- 591442 RECORDED DEC =DER 2, 1986.
AIM AS DISCLOSED BY AN ASSESSMENT DISTRICT MAP FILED IN BOCK 33,
PAGE 31 OF ASSESSMENT MAPS AS INSTRUMENT NO. 87- 051901, RECORDED
JALIUARY 29, 1987 OF CF77CIAL RECORDS.
4. PFOFERTY COVERED HEREIN LIES WITHIN ASSESSM_NT DISTRICT NO.
BB -1 OF T'-:E IRVINE COAST ASSESSF -NT DISTRICT AND AS DISCLOSED BY A-N
ASSESS =N7, DISTRICT MAP FILED IN BOOK 44, PAGE 7 OF ASSESSMENT1
MAPS, RECORDED SEPT=GE2 22, 1993 AS INSTRL'NcN'L NO. 86- 4819 -14 CF
OFFICIAL, RECORDS. '
AND AS DISCLOSED = 'i ASSESSICEN DISTRICT MAP FILED IN HOOK 45,
PAGE 26 OF ASS=SSiG +l'<A ?S RECORDED NOVrLER 21, 19E8 AS INSTRLnr_TNY
'.W. EB- SOE361 OF CF? =CIS: 22C0?. ='S.
AND AS DISCLOSED BY ;SSESSI =ZN7 DISTRICT MLT.P FILcD IN 300X 54,
PAGE 40 OF !l,F =S RECORDED =7-=RU—RY 25, .5 >_
INSTRLT MB.? NO. 91- 093940 OF OFFICIAL RECORDS
OR- 9260406
AND AS DISCLOSED HY AN ASSESSMENT DISTRICT MAP FILED IN BOOK 55,
PAGES 47 TO 49 OF ASSESSMENT :lAlA S RECORDED MARCH 6, 1991 AS
INSTR:C-zNT NO. 91- 102146 OF OFFICIAL RECORDS.
AND AS DISCLOSED BY AN ASSESSMENT DISTRICT MAP FILED IN BOOK 56,
?AGES 46 TO 48 OF ASSESSMENT MAPS RECORDED DECM —SER 27, 1991 AS
IRSTRU',''Na NO. 91- 713664 OF OFFICIAL RECORDS.
NOTE 1: THE EFFECT OF AN INSTRUMENT ENTITLED "NOTICE OF
ASSZSS! -SNT" RECORDED NOVEMBER 21, 190B AS INSTRUMENT NO. BB- 606990
OF OFFICIAL RECORDS; REFERENCE BEING MADE TO THE RECORD THEREOF FOR
EUML PARTICULARS.
NOTE 2: THE EFFECT OF AN INSTRUMENT ENTITLED "AMENDED NOTICE OF
ASSESSM3NT" RECORDED DECZ - -'-ER 14, 1968 AS INSTRUMENT NO. 89- 649516
C. O- FICIAL R= CORDS; REFERENCE BEING MADE TO THE RECORD THEREOF FOR
FULL ?ARTICU:ARS.
S. THE PROPERTY COVERED HEREIN LIES WITHIN THE BOUNDARIES OF
NEWPORT !SSA UNIFIED SCHOOL DISTRICT COM UN17' FACILITIES DISTRICT
NO. 30 -1 AS DISCLOSED BY AN ASSESSMENT DISTRICT MAP FIL =7 IN HOOK
°: FAGES 26 TO 26 OF ASSESSMENT MA ?S, RECORDED JUNE 14, 1990 AS
INSTRUMENT NO. 90- 315398 OF OFFICIAL RECORDS.
NOT_: AN iNS: t:J^' =Ni ENTITLED "NOTICT OF SP3CIAL TAX LIEN" RECORDED
AUGUST 24, 1390 AS INSTRLZ -ENT NO. 90- 453226 03 OFFICIAL RECORDS;
REFERENCE BEING MADE TO THE RECORD THEREOF FOR FULL PARTICULARS.
6. .N UNRECORDED DISPOSAL STATION LEASE, DATED AUGUST 6, 1963,
BETn =EN THE IRVINE COMPANY, A HEST VIRGINIA CORPORATION, AND THE
COUNTY OF ORANGE, AS DISCLOSED IN AN AGRcEMENT DATED MAY 4, 1965,
= E=n?-EN SAID COUNTY OF ORANGE, THE IRVINE COMPANY, AND SOUTHERN
CALIFORNIA EDISON COMPANY, A CORPORATION, RECORDED NAY 18, 1965 IN
BOOK 7524, ?AGE 449 OF OFFICIAL RECO.ADS, OVER A PORTION OF LOTS 8
A7 10.
7, PV '7NRIEC0.iD =D LASE, DATED AUGUST _ 1982, = X-CUTzD BY THE
IRVINE COMPA'rY, A MICHIGAN CORPORATION, AS LESSOR, AND GAS RECOVERY
SYSTE ?S, INC., A CALIFORNIA CORPORATION, AS LESSEE. FOR TdE TERM,
AND UPON THE 7ERYS, COVENANTS'AXD CO\7I7ICNS =ROVIDEO IS DISCLOSED
°Y `MC?PT^JG?. OF RE: JSS GAS LEASE fi7 AG= . °_ =:G :.i tDCCRDc7 OCTOBER 6,
_.:2
AS I ::S:r.;i,• =:,i ::0. 82-352123 CP C7 JS.
COVERS A PORTION OF LOTS 8 AND 10.
ir'
OR- 9260406
S. A DEED OF TRUST,. COVERING -,H-- I?EREIN DESCRIBED AND 0:n =R LAND;
TO SEC'JTRF. AN INDEBTEDN ='SS OF $46,204,397.00, RECORDED SEPTEMBER 7,
1983 AS INSTRI-71,2ENT NO. 83- 391528 OF OFFICIAL RECORDS.
DATED: SEPTEMBER 7, 1983,.
TRUSTOR: TF7 IRVINE COMPANY, A CORPORATION.
TRUSTEE: TICOR TITLE INSURANCE COMPANY 07 Gli,IFCFXIA, A
CORPORATION.
BE \?FICIARY: T E PRUDENTIAL INSUIRANCE COMPANY OF A
CORPORATION.
NOTE 1: AN ASSIG:^.'!-NT OF ALL RENTS, ROYALTIES, ISSUES AND PROFITS
ACCRUING FROM SAID LAND, AS ADDITIONAL SECURITY FOR T -HE PAY!w ='NT OF
THE IND-EBTEDNESS SECURED BY T-4z DIED OF TRUST SHOWi' HER-IN.
RECORDED: S= ?T="+3 =R 7, 1983 AS INSTRtSr' :T NO. 63-_.'_529 OF,
OFFICIAL RECORDS. -
XECJ'i =D BY: THE IRVI\B COMPANY, A MICHIGAN CORPORATION.
TO: THE PRUDENTIAL INSURANCE COMPANY OF A1IZRICA, A NEW
J=RSEY CORPORATION.
NOT-- 2: OVER A PORTION OF LOTS 8 AND 10.
9. AN :.`S_M-I:r AS SET FORTH IN AN _INSTRUMENT RECOP ED DEC !-SZR 17,
1986 AS INSTRLP.iil'T NO. 86- 622577 OF OFFICIAL RECORDS,
IN FAVOR OF: SOU;FiRV CALT?OR-NIA EDISON COMPANY, A CORPORATION.
FOR: £L= CTRICAL, COMMUNICATION SYST =+S, A?P-STINANCES
AND INCIDENTAL PURPOSES.
OV R: A.PORTION OF LOT S.
REFERENCI B='NG MADE TO T-HE RECORD FOR EXACT LOCATION OF SAID
L -NT.
10. AN EASEMENT FS SET FORTH IN AN jNSTRUtG'N RECORDED
22, 1955 AS INSTAL? -'N^: NO. 86- 633105 OF OFFICIAL RECORDS,
IN' FAVOR Oa: PACIFIC BELL.
FOR: COXIMUNICATION SYSTE+1S, A- PURTENANCES A\7 T CIDEhTAL
PURPOSES.
OVER: A PORTION OF BLOCX9 LOTS 8 AND 37.
MEING MADE TO THE RECORD FOR EXACT LOCF.`cN 05 SAID
11. E}S E:_a T5 FC3 STORM DRAIN PURPOSES, :S SBOSN AND DEDICATED TO
CAS i O: G A-l;G: ON T 2 YAP O= SAT_D T-.ACT, A _Ci �. r..-: -Z
OF LOTS 8, 10 AND 37.
OR- 9260406
12. AN 'EASEKENT FOR FLOODPLAIN PURPOSES OVER LOT 37, AS SHOWN AND
DEDICATED TO THE COUNTY OF CR;,N =E ON THE MAP OF SAID TRACT.
13. EASE:VMNTS AS SHOWN AND DEDICATED TO THE COUNTY OF ORANGE 0*7
THE MAP OF SAID TRACT FOR 3IKE PURPOSES, AFFECTING A PORTION
OF LOTS 10 AND 37,
14, EAS E-l' =ITS AS SHOWN AND DEDICATED TO T:E COUNTY OF ORANGE ON
THE MAP OF SAID TRACT IOR SID—=WALK PURPOSES, AFFECTING LOTS 10 AND
37,
15, THE FACT THAT ALL RIGHTS OF VEHICULAR ACCESS TO NEWPORT COAST
DRIVE_ AND SAN JOAQUIN HILLS ROAD, EXC=EPT AT APPROVED ACCESS
LOCATIONS, HERE RELEASED AND RELINQUISHED TO THE COUNTY 02 ORANGE
ON THE MAP OF SAID TRACT,
16. EASEMENTS FOR SEN_E, DOMESTIC WATER, RECLAIMED WATER, AND
INGRESS AND EGRESS PURPOSES, AS SHOWN AND DEDICATED TO THE IRVINE
RANCH WATER D= STRICT ON THE MAP OF SAID TRACT, WHICH EASEf=- S
SHALL BE SL33JECT TO THE SAME TERM'S AND CONDITIONS AS ARE SHOWN IN
TH AT CERTAIN EAS EM*='1T RECORDED AUGUST 20, 1985 AS INSTRUMENT NO.
65- 311205 OF OFFICIAL 'RECORDS OF ORANGE COUNTY, WITH AN ADDED
CONDITION THAT NO TREWS SHMLL BE PLANTED IN SAID EASEMENTS WITHOUT
PRIOR WRITTEN CONSENT FROM THE IRVINE RANCH WATER DISTRICT, OV=ER A
PORTION OF LOT 37, AS SHOWN AND DELINEATED ON THE MAP OF SAID
TRACT.
17, AN EASEM=VT OVER ;LND ACROSS LOTS 8, 10 AIN'D 37 OF SAID TRACT
FOR THE PURPOSE OF LOT AND SLC ?-- DRAINAGE TO AIN7 FROM SAID LOTS 8,
10 AND 37, AS RESERVED BY T7 :E IRVINE COMPANY, ITS SUCCESSORS AND
ASSIGNS, TOGETHER WIT3 TEE RIGHT TO GRANT AND TRANSFER ALL OR A
PORTION OF THE SA BY RECITA, ON T =5 M.Ln OF SAID TRACT. SAID
EAS�NT SiRA_T.L HE NON - EXCLUSIVE A.D THE IRVINE CO."MA'NY RETAINS THE
RIGHT TO USE AND GRANT TO O KERS THE ARIGHT TO USE ALL OR ANY
PORTION OF THE AREA COVERED BY THE EASEMENT FOR ALL LAWFUL
P17mPCSES, AS RECITED ON T::E MAP OF SAID TRACT.
13. .:E RECITAL ON T. = NAP OF SAID TRACT THAT-.
'BUILDING PERM ---T ISSuA tiCa S —Z, BE P: ?SED IN ACCORDANCE WITH
A \Y 5CA7_D Or' - 77_RVISCRS A. =CFED GP.07=22 XANAG�'. ='_.T PlIPSING
PxR PERTAINING -0 THI TI'r =30VISION OF PL =LIC SERVICES AND
FACILITIES. A VALID 30AR1D OF SUPERVISORS APPROVED DEVELOPRCs:4
ACREERG_'N PERTAINLNG TO PEOP_7.= WHICH IY.CL� Z_7S
DEVELOPYIENT PHASING PLAN SFA_L SATISFY TYRE R.-- .QDIRENSNTS OF
THIS CONDITION."
PA.E
CR•9260406
19. TEE RECITAL ON THE MAP OF SAID TRACT THAT THE LAND - COVERED BY
7z:IS MAP IS LOCATED IN A VERY HIGH FIRE HAZARD AREA DUE TO WILDLAND
EXPOSURE.- THIS DECLARATION SHALL RUN WITH THE LAND UNTIL A
DETERMINATION IS MADE BY THE FIRE AGENCY THAT THE PROPERTY IS NO
LONGER LOCATED IN A VERY HIGH FIR£ HAZARD AREA.
20. THE RECITAL ON THE MAP OF SAID TRACT THAT THIS PROPERTY MAY BE
SUBJECT TO IMPACTS FROM THE SAN JOAQUIN HILLS TRANSPORTATION
CORRIDOR.
21. Ti:E RECITAL ON THE MAP OF SAID TRACT WHICH STATES "A PORTION
C LOT 37 IS FOR FLOOD PLAIN AND RETENTION PURPOSES AAID LOT 37 IS
NOT A SEPARATE. BUILDING .SITE."
22. AN EASE -- \7 AS SET FORTH IN AN INSTRUMiNT RECORDED AUGUST 25,
1.992 AS It35TRU?vf NT NO. 92- 562135 OF OFFICIAL RECORDS.
IN FAVOR OF: SOUTHERN CALIFORNIA EDISON COMPANY, A CORPORATION.
FCR: PUBLIC UTILITIES AND INCIDENTAL PURPOSES.
OVER: A PORTION OF LOT 10.
OR- 9260406
DESCRIPTION
T:-IE LAND REFERRED TO IN THIS REPORT IS SITUATED IN THE STATE OF
CALIFORNIA, COUNTY OF ORANGE, AND IS DESCRIBED AS FOLLOWS:
LOTS 8, 10, AND 37 OF TRACT NO. 14509, AS SHOWN ON A N.AP FILED IN
BOOR 688, PAGES 1 TO 16 INCLUSIVE OF MISCELLANEOUS MAPS, RECORDS OF
ORANGE COUNTY, CALIFORNIA, AND AS AFLNDED BY THOSE CERTAIN
CERTIFICATES OF CORRECTION RECORDED JUNE 26, 1992 AS INSTRUMENT N0.
92. 431391 AND RECORDED JULY 8, 1992 AS INSTRUMENT NO, 92- 457550,
HOT?: OF OFFICIAL RECORDS OF COUNTY OF ORANGE, CALIFORNIA.
-A__ 7
OR- 9260406
f f f f r f r f
"THE MAP ATTACHED HERETO MAY OR MAY NOT BE A SURVEY OF Ti=- LAND
DEPICTED THEREON. YOU SHOULD NOT RELY UPON IT FOR ANY PURPOSE
OTHER THAN ORIENTATION TO THE GE`IERAL LOCATION OF THE PARCEL OR
PARCELS DEPICTED. FIRST AM-RICAN EXPRESSLY DISCLAIMS ANY LIABILITY
FOR ALLEGED LOSS OR DAMAGE WHICH MAY RESULT FROM RELIANCE UPON THIS
MAP
r f f f f f f f
LR
PlI TS (CC& -R'S, IF ANY) ENCLOSED.
NOTE: WIRING INSTRUCTIONS FOR SLR- ESCROW DEPOSITS AR-_ AS FOLLOWS:
FIRST INTERSTATE BANK ACCOUNT 1-180721037
1018 NORTE MAIN STRSET ABA #122000218
SANTA ANA, CALIFORNIA
CREDIT TO FIRST AMERICAN TITLE INSURANCE CO.
OR- 9260406 TITLE OFFIGR - ROGER C. RE_MER
DiSPSGARD IF FIRST MMERICAN IS Y01R ESCROW SETTL-_=XT AGENT -
CONTACT FSCP.OW OF ?ICBR FOR WIR_NG INSTRUCTIONS
PAGE a
OR- 9260406
NOTICE
SECIION 12417 -1 OF THE CALIFORNIA INSURANCE CODE, EFFECTIVE JINVUT I, 1QV0, REQUIRES TWIT ANT
TITLE INSURANCE COMPANY, UNDERWRITTEN TITLE COMPANY, M CONTROLLED ESCROW CMPANY HANDLING
FUNDS IN AN ESCROW M WR'ESCAW CAPACIIT, WIT A SPECIFIED WULIER OF DAR AFTER DEPOSITING
FUNDS, IEFGRE,RECMDINL ANT OOCVHENTS IN CONNECTION WITH THE TUNSACTION 01 DISRVRSING FUNDS.
THIS STATUTE ALLOWS FOR FUNDS DEPOSITED BY WIRE TRANSFER TO RE DISBURSED THE SUE OAT AS
DEVOSIT. IN THE CASE OF CASHIER'S CNECSS M CERTIFIED CNECSS, FUNDS WAY RE DI SEYRSEO THE NEST
DAT AF-.-,R DEPOSIT, IN ORDER TO AVOID UNUECESSART DELAYS OF THREE TO SEVEN OATS, M HOPE,
PLEASE USE WIRE TXUSf ER, USXT£R'S CNECSS, M CERTIFIED CHECSS WHENEVER POSSIStE,
If YOU HAVE ANT QUESTIONS RECUT THE EFFECT OF THIS REV UV, PLEASE CONTACT TWA LOCAL FIRST
UEAICAW OFFICE FM NDIE DETAILS-
NOTICE
IN ACCICANCE WITH SECTIONS TWOS AND 26171 Of EKE IIWWUE AND 1AZATIW CODE, A YuTER HAY RE
REZVIRED TO VITHHDLO AN "W0 EQUAL TO THREE ANO OPE-TNIND PERCENT OF THE SALES PRICE IN THE
CASE Of THE DISPOSITION OF CALIFORNIA REAL PROPEATT INIEREST IT EITHER -
1. A SELLER VRO IS AN INDIVIDUAL WITH A LAST KAGAN STREET ADDRESS OUTSIDE OF
CALIFORNIA M WHEN TWE OISBURSEM -NT INSTRUCTIONS AUTHORIZE THE PROCEEDS BE SENT TO A
FINANCIAL INTERMEDIARY OF THE SELLER, M
2. A CORPORATE SELLER VH1CN HAS NO ADAMANT PLACE OF ROSINESS IN CALIFORNIA,
THE BUTER MAT IECNE NBJECT TO PENALTY FOR FAILURE TO WITHHOLD AN ANOINT EQUAL TO THE
GREATER OF 10 PERCENT OF THE ANOINT REQUIRED TO RE WITHHELD M FIVE HUNDRED DOLLARS
(S500)-
NaVEVER, NOTWITHSTANDING ANT DINER PROVISION INCLUDED IN THE CALIFORNIA STATUTES
REFERENCED ABOVE, NO OUTER WILL BE REQUIRED TO WITHHOLD ANT AMOD(T M RE SUBJECT TO
PENALTY FOR FAILURE TO WITHHOLD IF-.
1- THE SALES PAIL OF THE U.LIFDA. I• REAL PROP ERTI CONVETW 00B ROT EXCEED WE
HUNDRED THOUSINQ DOLLARS (SIO0,000), W
2- THE SELLER EXEDUIES A WRITTEN i3RTIIIw E, UNDER THE PENALTY OF PERJURT,
CERTIFYING THAT THE SELLER IS A RESIDENT OF CALIFORNIA, M IF A OD,ZVMATTDN, HAS A
PER .EAI PLACE OF BUSINESS IN CAL FDA NIA, OW
S- TAB SELLER, WHO IS AN INDIVIDUAL. EXECUTES A WRITTEN CERTIFICATE, UNDER THE
PENNY Of PERYJRI, THAT THE CALIFORNIA REAL PROPERTY REINO CURVETED IS THE SELLER`S
PRINCIPAL R_ESIOENU (AS DEFINED IN SECTION 1054 OF THE IWTERWL AEVENUE CODE).
THE SELLER IS SUBJECT TO PENALTY FM SRWIR6LT.FILIN6 A FIALOULEVT CERTIFICATE FIAT THE
IJRPOSE OF AVOIDING THE WITHKS.AIWG REQUIRZIlUT,
IN- CALIFORNIA STArJTEE K- 7-E-9:70 ABOVE INCLUDE PROV:SIONS WkICM AUTHORIZE THE
FRARCHiSE TAX SDUD TO ORAKT R__ °A =EO VI= HMOOINC UD VAIATIRS FRO( WITHHOLDING ON A
USE -AT -USE BASIS,
TKE PARTIES TO THIS lRADEACT'. vw' -O S Ix: AN AUOR ETIS, AZ=gTANT'S, OR OPNER TAX
SPECIALIST'S D IWIM CDICtD.TND TKE EFFECT OF THIS UV W THIS TRANSACTION AAD SNOJLD
POF ACT ON ART STATEMENTS MVE OR CWTTEO BY THE ESCROW M CLOSING OFFICER-
PAGE
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RESOLUTION OF THE BOARD OF SUPERVISORS OF
ORANGE COUNTY, CALIFORNIA
April 6 1993
On motion of Supervisor Vasquez duly seconded and carried, the following
Resolution was adopted:
WHEREAS, this Board received a document entitled 'San Joaquin Hills Local Parks
Irrevocable Offer of Dedication' from The Irvine Company, a Michigan corporation,
covering the following project:
Project Assessor's Parcel Nos.
GA 1257 -34
Newport Ridge and Crestrldge Parks 461 - 151 -06
451- 152 -02. 05
NOW THEREFORE BE IT RESOLVED AND ORDERED that this Board hereby:
I. Finds that Final EIR 517, previously certified on February 26, 1991, was
considered prior to approval of the project, was determined adequate to serve as a
Program EIR for this project, and satisfies all requirements of CEOA. The Final EIR
reflects the independent judgement of the Lead Agency.
2. Finds that pursuant to Section 711.4 of the Fish and Game Code, this project
is exempt from the required fees, as it has been determined that no adverse impact to
wildlife resources will result from the project.
3. Receives said Irrevocable offer of Dedication.
4. Directs the Clerk of the Board to forward a copy of this Resolution along
with the original Irrevocable Offer of Dedication to GSA /Real Estate for execution of
the Certificate of Acceptance for recordation purposes only.
Resolution No. 93 -364
San Joaquin Hills Local Parks
Irrevocable Offer of Dedication
Newport Ridge and Crestridge Parks
5M:klm:We 6737-1 A -2 -93 -1-
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i
Chairman of the Board of Supervisors
'SIGNED AND CERTIFIED THAT A COPY
OF THIS DOCUMENT HAS BEEN DELIVERED
'TO THE CHAIRMAN OF THE BOARD
CledPHYLLIS A. HENDERSON
of the Board of Supervisors
of Orange County, California
AYES:
SUPERVISORS
GADDI H.
VASQVEZ,
ROGER R. STANTON, WILLIAM G.
STEINER,
THOMM F.
RILEY AND HARRIETT N. WIEDER
NOES:
SUPERVISORS
NONE
ASSENT: SUPERVISORS NONE
STATE OF CALIFORNIA )
) ss:
COUNTY OF ORANGE )
I, PHYLLIS A. HENDERSON, Clerk of the Board of Supervisors of Orange County,
California, hereby certify that the above and foregoing Resolution was duly and
regularly adopted by the said Board at a regular meeting thereof held on the 6th day
of April 1993, and passed by an unanimous vote of said Board.
IN WITNESS WHEREOF, I have hereunto set nY hand and seal this 6th day of
April 1993.
SMAI• 032 -2 341 -93
PHYLLIS A. HENDERSON
Clerk the Board of Supervisors
of Orange County, California
-2-
J
DedicaL_.i of Newport Ridge Park aav -;restridge Park
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InI, rv.:! :.UINC1 IAA TRUMENT IS A TRUE
ANC: CORRECT CORY OF THE ORIGINAL
ON FILE IN THIS 0MCE.
C
EXHIBIT 3
PRE - ANNEXATION
AGREEMENT
This Pre - Annexation Agreement ( "Agreement') between the City of Newport Beach
( "City ") and the Newport Coast Committee of 2000 ( "NCC2K ") is hereby made on
November 28, 2001 ( "Execution Date ") with reference to the following:
RECITALS
WHEREAS, the City has, by a Resolution of Application Requesting Initiation of
Proceedings to Annex Territory ("Resolution") adopted on September 26, 2000, and by an
Application submitted on March 19, 2001, initiated proceedings to annex property
commonly known as Newport Ridge and Newport Coast ( "Property "). The Property,
which is described on Exhibit A and depicted on Exhibit B, consists of approximately 7,799
acres of developed and undeveloped property. The Property is currently in the
unincorporated area of the County of Orange ( "County ") and has been in the City's sphere
of influence since 1976.
WHEREAS, the Local Agency Formation Commission of Orange County (LAFCO)
has determined the City's application is complete and has adopted Resolution No. CA 01 -06
ordering the approval of the proceedings upon the completion of certain terms and
conditions. Resolution No. CA 01 -06 is included as Exhibit C.
WHEREAS, NCC2K is a group of Newport Coast homeowners who have
volunteered to negotiate with the City regarding special obligations of the City to the
Property ( "City Obligations ") of the proposed annexation that they would recommend to
their neighbors in Newport Coast. As a result, NCC2K and representatives of the City
have, at City's request, engaged in extensive discussions regarding the issues that are
addressed in this Agreement. City acknowledges that no member of NCC2K has requested
or received authorization from any individual or homeowners association in Newport
Coast to represent that person or entity with respect to any issue or matter covered by this
Agreement. City also acknowledges that no member of NCC2K has requested or received
Page 2
authorization from any person or entity to state the position of any person or entity, with
respect to the terms and conditions of this Agreement. NCC2K has performed a
community service by communicating to current Newport Coast residents the discussion of
issues that resulted in this Agreement and other important facts related to the proposed
annexation.
WHEREAS, the City Council approved the City Obligations in conjunction with the
adoption of the Resolution and submittal of the application to LAFCO. These City
Obligations were the result of extensive discussions over a three -,year period between
representatives of the City and NCC2K regarding the method and manner in which the
City would provide services and public infrastructure for Newport Coast residents
subsequent to the January 1, 2002 effective date of annexation ( "Effective Date').
WHEREAS, some of the City Obligations involve the allocation of funds that the
Citv is entitled to receive from the Irvine Ranch Water District ( "District ") pursuant to an
agreement approved by the Newport Beach City Council on January 24, 2000 and that has
been adjudicated in a validation action filed in the Orange County Superior Court
("Contract"). The City intends to allocate funds paid pursuant to the Contract (funds that
represent property taxes paid by Newport Coast residents) to provide community facilities
for current and future residents of Newport Coast and to reduce the amount of assessment
district debt that owners of improved and occupied single - family residences are required to
pay.
WHEREAS, City has approved, or is in the process of approving, certain agreements
that may impact the manner and method by which City performs its obligations pursuant
to this Agreement. These agreements (collectively referred to as the "Related Agreements ")
include an Annexation and Development Agreement with The Irvine Company
( "Company") and a Cooperative Agreement with the County for the performance of certain
municipal functions, including planning and development services, by the County. City's
obligations pursuant to this Agreement are to be performed in a manner consistent with its
obligations pursuant to the Related Agreements.
Page 3
WHEREAS, on August 28, 2001, the Newport Beach City Council authorized the
City Manager to execute this Agreement on behalf of the City.
NOW, THEREFORE, in consideration of the mutual covenants and promises and
other good and valuable consideration the Parties agree as follows:
1. BASIC PROVISIONS. This Section specifies the general provisions that are
applicable to the manner, method, timing and extent of the implementing actions
the City is required to take pursuant to this Agreement and the status of NCC2K as
a party to this Agreement.
(a) Acknowledgements. This Agreement is not intended to bind, or create any
obligation on the part of, NCC2K or anv of its members. City acknowledges
that NCC2K has not requested or received authority from any person or any
entity (including any homeowner association) with respect to any provision of
this Agreement. City acknowledges that NCC2K and its members have, at
City's request, provided valuable insight into the interests, needs, opinions
and positions of Newport Coast residents with respect to the proposed
annexation and the impacts of that annexation on services, representation,
assessment district debt and recreational facilities. The Parties agree that
NCC2K has effectively communicated the basic provisions of this Agreement
to Newport Coast residents, through a Web site (www.newportcoast.org),
newsletters and personal communications. The Parties also agree that many
Newport Coast residents are relying on City's good faith compliance with this
Agreement in formulating their position on the annexation - including any
possible protest of the annexation. Accordingly, the Parties agree that the City
has a legal obligation to comply with the terms and conditions of this
Agreement to the maximum extent permitted by law.
(b) Consistencv with Development Plan. The Parties acknowledge that the
County and the Company have, for thirty (30) years, been involved in the
Page 4
planning for development of the Property. This lengthy planning process
has culminated in a complex and fully integrated plan ( "Development Plan")
for the preservation and development of the Property that is reflected in
numerous planning documents and land use decisions ( "Development
Approvals "). The failure properly to implement the Development Plan and
Development Approvals could deprive the public of the benefits of the
proposed open space dedications and deprive Newport Coast residents of
certain amenities. NCC2K acknowledges and agrees that City shall not be
required to perform any duty or obligation pursuant to this Agreement that
would constitute a breach of the Related Agreements. The Parties also agree
that the City shall perform its duties with respect to the siting of the
Community Center and.the development, use, operation and maintenance of
open space/ recreational facilities in a manner that does not impair or
interfere with the City's obligations pursuant to the Related Agreements.
This Agreement does not impair or restrict the right of any resident of
Newport Coast, any Newport Coast homeowner association or residential
community association ( "Association ") or any member of NCC2K from
taking any action or expressing any position relative to the content or
implementation of any component of the Development Plan or the
Development Approvals.
(c) Alternatives. This Agreement establishes certain obligations of the City with
regard to assessment district debt relief, the siting and construction of a
community center or the use of funds allocated for the community center to
increase assessment district debt relief and the assumption of the
responsibility to maintain certain slopes, parkways, medians and other open
space upon request of a homeowner association. The Parties acknowledge
that they have not fully evaluated the means and methods of, or the legal or
practical impediments to, implement and fulfill those obligations.
Accordingly, the Parties agree to use their respective best efforts and good
Page 5
faith to identify and implement alternative methods or means of achieving
the obligations of the City.
(d) Term of Agreement. This Agreement shall become effective when fully
executed by the Parties ( "Execution Date "). However, the Parties agree that
the City is unable to perform the majority of its duties until the Effective
Date. The Parties will work cooperatively to develop plans to implement
various provisions of this Agreement, such as those related to the legal
mechanism to reduce assessment district debt and the siting of the
Community Center, prior to, and in anticipation of, the Effective Date. The
City's obligations to perform any duty pursuant to this Agreement shall be
suspended in the event that sufficient protests are filed to require an election
and shall resume upon Completion of Annexation. This Agreement shall
terminate if (a) the annexation proceedings are terminated for any reason; (b)
the Completion of Annexation does not occur on or before June 30, 2002; or
(c) the City and the Newport Coast Advisory Committee ( "Committee')
have determined that the City has performed all of its obligations.
2. NEWPORT COAST ADVISORY COMMITTEE. The City Council shall establish the
Commttee by Resolution ( "Committee Resolution') adopted on or before October
23, 2001. The Conunittee shall consist of seven (7) members. Four (4) members of
the Committee shall be appointed by NCC2K. The member or members of the City
Council that are nominated from the district or districts in which any portion of the
Property is located shall be members of the Committee. The City Council shall
appoint any remaining member or members of the Committee who shall be
residents of Newport Coast. The Committee Resolution shall specify that the initial
terms of the Committee members appointed by NCC2K shall be tluee years with
two of those members automatically serving additional three -year terms. All
members of the Committee appointed by NCC2K shall reside within the Property at
all times during their terms of office and NCC2K shall appoint a replacement at
such time as any of the members they appoint no longer resides in the Newport
Page 6
Coast. The Committee shall terminate if, and at such time as, LAFCO terminates the
annexation proceedings prior to certifying annexation of the Property or the City
has fully performed its obligations pursuant to this Agreement.
3: COUNCIL REPRESENTATION. The Newport Beach City Charter provides that
any territory annexed to the City shall, at the time of annexation, be added by
ordinance to an adjacent district or districts. The Charter also authorizes the City
Council to change and redefine the boundaries of districts so that each district
"constitute(s) natural areas of contiguous and compact territory" and the residents
are fairly represented. The Property shall, in its entirety, be considered part of
District 7 as of the Effective Date until the next regular municipal general election or
a redistricting that occurs subsequent to the Effective Date. In the event the City
Council changes and redefines district boundaries pursuant to Section 1005 of the
Charter prior to the next general municipal election (November 2002), the entire
Property shall either (a) remain in District 7 or (b) be placed in one Council District.
This Agreement does not require the City Council to establish district boundaries
such that portions of the Property are within more than Council District but does
prohibit any such action until after the next municipal general election (November
2002).
4. AVIATION COMMITTEE. The City Manager shall, on or before the Effective Date,
submit to the City Council a proposed modification of the terms and conditions of
the resolution establishing the Citizens Aviation Committee to provide for
membershp by at least one resident of Newport Coast. The City Council shall
adopt the proposed amendment and shall not, subsequent to adoption, modify the
resolution to elimvlate membership by a Newport Coast resident on the Aviation
Corrunittee.
Page 7
5. ESTABLISHMENT OF ACCOUNTS.
(a) The City shall establish, within ten working days after the Effective Date,
the following three accounts:
(i) Receipt Account. The "Receipt Account" shall receive payments
from IRWD pursuant to the Contract and shall disburse funds to
the Building Account and the Allocation Account. Interest accrued
to funds in the Receipt Account shall accrue to the City.
(ii) Allocation Account. The "Allocation Account" shall receive and
expend funds to the County of Orange solely for the reduction of
assessment district debt owed by owners of fully improved and
occupied single - family residences in Newport Coast. Interest
accrued to funds in this account shall accrue to this Account.
(iii) Building Account. The "Building Account" shall receive and
expend funds for the Community Center or for Infrastructure
Allocation under specific circumstances. Interest accrued to funds
in this account shall accrue to the City until January 1, 2003. After
January 1, 2003, interest accrued to funds in this account shall
accrue to this Account.
(b) All Funds in the accounts created by this Section shall be segregated for
accounting purposes (receipt and disbursement) and invested in
accordance with State law and the City's Investment Policy.
6. ASSESSMENT DISTRICT RELIEF. The provisions of this Section are intended to
implement the City's obligation to use funds received by the City from IRWD
pursuant to the Contract to reduce assessment district debt for the owners of fully
improved and occupied single family dwellings in the Newport Coast by a total of
Page 8
$18 million dollars and at the rate of $1.2 million per year for a period of fifteen
years. For the purposes of this Agreement, the term "fully improved and occupied
single - family residence" shall mean any single family residence (including single
homes on one parcel, attached residences on a single parcel, or any condominium)
that has received all inspections, is ready for occupancy or occupied and for which
the Assessor has received the documentation necessary to initiate property tax
assessment and collection procedures with respect to a person or entity other than
the builder or the owner of the property prior to any development activity. The
assessment district debt shall be further reduced to the extent to which funds
allocated for the proposed Community Center are not utilized for that purpose.
(a) Transfers of Funds to the Allocation Account. Within three (3) working
days of receipt of $15 mullion into the Receipt Account, the City shall
transfer $1.2 million to the Allocation Account. The City shall repeat this
transaction fourteen (14) consecutive times over fourteen (14) consecutive
years ( "Subsequent Transfers ") on or before the date specified under
Subsection (c)(ii) of this Section. In the event that the City is late in making
a Subsequent Transfer to the Allocation Account, the City shall pay six
percent (6 %) interest per annum on a pro -rated basis on any late amount.
(b) Process. Within thirty (30) days after the Effective Date, the Committee
shall meet to discuss the manner in which funds within the Allocation
Account should be allocated. City shall retain, and have present at the
initial meeting and all subsequent meetings, legal counsel with at least ten
(10) years experience in matters related to municipal finance (Special
Counsel) to assist and advise the NCAC regarding the manner in which
funds received pursuant to the Contract are allocated to reduce assessment
district debt in accordance with City's obligations. Special Counsel shall be
responsible for making recommendations to the Committee relative to the
method and manner of reducing assessment district debt within sixty (60)
days after the Committee's first meeting.
Page 9
(c) Recommendation. The Committee shall, within 60 days after receipt of
recommendations from Special Counsel, develop and transmit to the City
Manager, recommendations regarding the method and manner of
allocating revenue in the Allocation Account for the purpose of reducing
assessment district debt. The City shall use its best efforts expeditiously to
prepare all documentation, and grant all approvals, necessary to
implement the recommendations of Committee. The City Manager shall
implement those recommendations except to the extent that any
recommended action is contrary to law or to the extent that State or local
law requires City Council approval.
(d) Expenditures from the Allocation Account.
(i) Initial Facility Expenditure. The City shall expend all funds in the
Allocation Account to reduce assessment district debt in accordance with
the recommendations of the Committee. The first payment from the
Account shall be considered the "Initial Facility Expenditure." All
documents and approvals necessary to make the Initial Facility
Expenditure shall be prepared and given as expeditiously as possible
following receipt of the recommendations from Special Counsel and the
Committee. The Initial Facility Expenditure shall be made within five (5)
days after all required documents have been approved and executed and
all required approvals have been granted. The month and date of the
fast payment shall be deemed the Anniversary Date.
(ii) Subsequent Facility Expenditures. City shall annually expend from the
Allocation Account, assuming revenue is available, the additional sum of
$1.2 million to reduce assessment district debt. These payments shall be
considered "Subsequent Facility Expenditures." The City shall make
fourteen (14) Subsequent Facility Expenditures on, or as close in time as
Page 10
possible to, the Anniversary Date unless otherwise advised by the
Committee. The Subsequent Facility Expenditures shall be made at a
time and in a manner consistent with the Initial Facility Expenditure
assuming funds are available unless Special Counsel has determined that
all or a portion of the method or manner of allocation or expenditure
violates then current State or local law.
(iii) Unanticipated Property Tax Receipts. In the event the total of the Initial
Facility Expenditure and all Subsequent Facility Expenditures is less than
$18 million and City has received a property tax allocation of more than
sixteen percent (16 %) of the 1% Basic Levy in any Fiscal Year between
2001 -02 and 2015 -16 from properties in the Newport Coast, the City shall
continue to make annual allocations to, and expenditures from the
Allocation Account, assuming funds are available, on each Anniversary
Date until the total of all expenditures equals $18 million ( "Supplemental
Expenditures "). Supplemental Expenditures shall be in the sum of $1.2
million unless a smaller amount will cause the total of expenditures to
equal $18 million. Supplemental Expenditures shall be made in a
manner and method consistent with this Section unless Special Counsel
determines that the method or manner violates State or local law.
(e) Special Provisions. The Initial Facility Expenditure, all Subsequent Facility
Expenditures, and all Supplemental Expenditures shall be made only for the
benefit of the owners of improved and occupied single - family residences and
their successors in interest. The Initial Facility Expenditure, Subsequent
Facility Expenditures and any Supplemental Expenditure shall not be
applied to reduce City's commitments relative to the construction of a
Community Center as specified in Section 6. City's obligation to pay the
Initial Facility Expenditure, any Subsequent Facility Expenditure or any
Supplemental Expenditure is limited to the receipt of funds pursuant to the
Contract and any unanticipated property tax revenue as that term is defined
Page 11
in this Section. City shall use its best efforts, including litigation at City's
sole cost and expense if necessary, to enforce the terms and conditions of the
Contract in the event of any failure or alleged failure to perform on the part
of IRWD.
COMMUNITY CENTER. The purpose of this Section is to implement the obligation
of City to use up to $7 million (separate from the Allocation Account revenue)
received pursuant to the Contract to construct a Community Center. The City shall,
in locating, planning and constructing the Community Center, adhere to the
following:
(a) Fund Transfer. City shall, within three (S) working days after receipt of $15
million into the Receipt Account, transfer $7 million to the Building Account.
(b) Use of Funds. Allocation and disbursement of funds in the Building
Account may be used only to pay (or reimburse in the case of the City
advance) the actual costs (exclusive of the time spendby City staff and
officials and any non - monetary City resources) of obtaining necessary
permits for, designing and constructing the Community Center.
(c) Use of City Staff. City shall use its best efforts to rmnnrdze the use of outside
consultants to perform tasks related to the design, siting and construction of
the Community Center by assigning those tasks to City staff to the maximum
extent feasible.
(d) Fund Advance. City shall, upon approval of a budget amendment by the
City Council, advance up to $100,000 for use by the Committee for the siting,
planning and design of the Community Center. Funds advanced by the City
shall be reimbursed from the Building Account upon receipt of revenue
pursuant to the Contract.
Page 12
(e) City Obligations. City shall be responsible for funding the furnishings,
fixtures and equipment (FF &E) for the Community Center out of funds other
than funds in the Building Account or Allocation Account. City shall waive
any and all fees normally charged for applications for any permit necessary
to plan, design and construct the Community Center and shall request
waivers from any other public agency required to issue any permit or grant
any approval for the Community Center. City may use funds in the Building
Account to pay any costs related to the application for, analysis of, or
processing of, any discretionary land use approval required as a pre-
condition to development of the Community Center on the proposed site,
only to the extent City is required to make payments to any public agency.
(f) Plani -dng /Location. The Committee shall hold open, noticed, and public
meetings as it considers the Newport Coast community's interest in the
Community Center. if the Committee deems the Center desirable, it shall
make recommendations to the City Council and the County regarding the
most appropriate location for the Community Center. Possible locations
include a site within or adjacent to Newport Ridge Park or within a park to
be constructed at the top of Ridge Park Road. The Committee shall submit
recommendations regarding the preferred location of the Community
Center, and the reasons for the recommendation, to the City Council and the
County for appropriate action. The Committee shall endeavor to
recommend a site for the Community Center that will not require the
approval or amendment of any discretionary land use approval on the part
of the City, County or other public agency. This Agreement shall not
constitute a commitment of the City or the City Council to approve any
discretionary permit or approval that requires a public hearing pursuant to
State or local law. However, the City Council shall use its best efforts, to the
extent permitted by law, to approve permits and grant land use approvals
necessary to the design, siting and construction of the Community Center.
Page 13
(g) Design Parameters. The Community Center shall consist of a structure that
contains approximately 2,000 square feet of floor area available to the public
and may contain a gymnasium, library and community meeting rooms. The
design of, and amenities in, the Community Center shall be developed by
Committee and submitted to the City Council for final approval The City
Council shall, to the fullest extent permitted by law, use its best efforts and
good faith to approve the Community Center as proposed by the Committee.
The design of the Community Center shall take into consideration and be
consistent with the funds available for construction and the architectural
style of the Newport Coast.
(h) Construction. The construction of the Community Center is anticipated to
commence between 2002 and 2004. The Community Center shall be
constructed in accordance with the provisions of State and local laws
applicable to public works projects. In the event City does not commence
construction of the Community Center on or before June 30, 2004 and the
Committee does not extend the deadline, the Committee shall make a
recommendation to the City regarding the desirability of pursuing
completion of the project or to transfer the funds to the Allocation Account
as provided in Subsection (j).
(i) Use and Operation. The City shall operate the Community Center and
install FF &E appropriate to the permitted uses of the Community Center.
The FF &E shall be installed no later than sixty (60) days after a certificate of
occupancy has been issued for the Community Center. City shall own and
operate the Community Center and adopt a community access and use plan
based on recommendations by the Committee. The approved access and use
plan shall give a priority use by, and advance reservation preference to,
Newport Coast residents and homeowner associations without unduly
restricting public use of the Community Center.
Page 14
(j) Remaining Funds. In the event the Community Center is constructed and
funds remain in the Building Account, the remaining funds in the Building
Account shall be transferred to the Allocation Account and used to reduce
assessment district debt as soon as feasible.
(k) Reallocation. In the event the Parties decide not to construct a Community
Center, all funds remaining in the Building Account shall be transferred to
the Allocation Account for distribution as a part, and on the Anniversary
Date, of the next three Subsequent Facility Expenditures after the date of the
decision.
8. ANALYSTS OF ASSESSMENT DISTRICTS AND RECOVERY OF MONIES OWED.
The City shall retain legal counsel experienced in municipal financing including the
formation and administration of improvement and assessment districts. City shall
instruct legal counsel to conduct a thorough examination or audit of the documents
prepared in conjunction with all Assessment Districts and Improvement Districts in
the Newport Coast and Newport Ridge. For the purposes of this Section, these
districts shall collectively be referred to as "Assessment Districts" and shall include,
but not be limited to, County Assessment Districts #88 -1 and #92 -1. This
examination shall be commenced within sixty (60) days after the Effective Date and
shall be concluded within (150) days of the Effective Date subject to an extension of
the examination period by Committee. City shall not place any limitation on legal
counsel's budget for the reasonable and necessary expenses to be incurred in the
performance of a complete and thorough examination, and the attainment of a
result, which is satisfactory to the Committee. Legal counsel shall report findings to
the Committee in writing within one hundred eighty (180) days after the Effective
Date subject to an extension of time approved by the Committee. In the event that
legal counsel determines that:
(i) Modifications to any decision, document or practice could result in
Page 15
Assessment District debt relief for owners of fully improved and
occupied single family residences; or
(ii) Assessment District funds were not used in a legal manner; or
(iii) Assessment District funds were not used in a manner that benefited
those who were assessed in a manner proportionate to the assessment
imposed; or
(iv) The allocation of costs or expenses related to the Assessment District
was inequitable or is based upon erroneous assumptions regarding use
and /or benefit, then
the City shall use its best efforts, including initiation of litigation against any and all
appropriate parties if determined appropriate by the City Council, to provide relief
through a modification of the decision, documents, conditions and /or practice or to
recover such funds.
Furthermore, the City shall use its best efforts, including initiation of litigation
against any and all appropriate parties, if determined appropriate by the City
Council, to provide relief, as each new assessment district is proposed, or an existing
assessment district is modified. Such relief may include, but is not limited to, a
modification of the proposed assessment district formation or any decision,
documents, conditions, and /or practice or, if appropriate, to recover funds.
WATER AND SEWER SERVICE. The Parties acknowledge that City has, pursuant
to the Contract, agreed that the District will provide water, sewer, and reclaimed
water service to the Newport Coast. City shall take any necessary action to enforce
provisions of the Contract that relate to rate protection and the District's
Improvement District levies ( #140/240 and #160/260).
Page 16
10. FIRE AND EMERGENCY MEDICAL SERVICES. City shall provide Fire
suppression and emergency medical service to the Newport Coast in the same
manner and at the same cost as provided to current Newport Beach residents. City
shall assign one Paramedic Assessment Unit ( "PAU ") to the Newport Coast Fire
Station (Station 952) on a full time basis as of the Effective Date. City shall maintain
a PAU at Station #52 subject only to the City Council's authority pursuant to the
Charter. The Parkes acknowledge that this Agreement does not create any legal
claim or right of action on the part of any Newport Coast resident to any specific
service or response time and that all decisions relative to service are subject to the
City Council's authority pursuant to the Charter.
11. LAW ENFORCEMENT SERVICES. City shall provide law enforcement services to
the Property in the same manner and cost as that service is provided to current
Newport Beach residents and businesses. City intends to hire sufficient additional
personnel to create one additional patrol beat and related support staff. City will
realign patrol beats to ensure that the Property becomes a part of two patrol beats
(beats covering the Property and other portions of the City) to enhance coverage in
the Newport Coast in comparison to existing service. City will periodically evaluate
staffing and assignments to ensure that levels of patrol and service call response
times in the Newport Coast are comparable to other areas of the City. City shall
consider, and implement when appropriate, recommendations of the Committee to
provide temporary law enforcement services to Newport Coast residents such as the
use of the Community Center or fire station to stage events such as crime prevention
presentations, fingerprinting, and other community events. The Parties
acknowledge that this Agreement does not create any legal claim or right of action
on the part of any Newport Coast resident to any specific law enforcement service
or response time and that all decisions relative to service are subject to the City
Council's authority pursuant to the Charter.
12. CURBSIDE RESIDENTIAL REFUSE COLLECTION. City shall, as of the Effective
Date, pay all charges incurred from the Effective Date forward by any residential
Page 17
Association, or any resident of any Association, that is a Party to this Agreement, for
curbside refuse collection for fully improved and occupied single family residences.
City shall have no obligation to pay for, or provide, any form of refuse collection for
educational, commercial, hotel, timeshare, or multi- family uses. City's obligation to
pay for refuse collection charges for curbside residential collection shall continue
until:
(a) Similar refuse collection is no longer provided without charge to residents in
Newport Beach's pre -1996 boundaries; or
(b) City provides the refuse collection service using its own forces or a
contractor.
In the event City provides curbside residential refuse service, City shall provide that
service at the same rates as are paid by the Newport Beach residents paying the
lowest rate for the same or similar service. In the event City assumes the
responsibility for curbside refuse collection for single family residences using its
own forces, City shall use its best efforts to provide refuse collection service using
equipment and collection techniques such as automated collection vehicles and
presorted refuse containers similar to those in use as of the Effective Date.
13. OPEN SPACE AND RECREATIONAL FACILITIES
(a) Procedures. The Parties acknowledge that certain open space dedications
may have been accepted by the County and /or may contain conditions that
preclude or impair the Parties' ability to achieve the Open Space Goals.
NCC2K acknowledges that City has a pre - existing duty to take or avoid any
action that could impair or restrict the development rights of Company and
that failure to perform could impact the open space dedication or
improvement obligations of the Company. Accordingly, the NCC2K
acknowledges that the City is required to accept the transfer or assignment
of any open space dedicated to the County unless the City determines that
Page 18
failure to do so will have no impact on the Company s development rights
and Company consents in writing. NCC2K also acknowledges that City is
required to accept any open space offered for dedication unless the City
determines that failure to do so will have no impact on Company's
r
development rights and Company consents in writing. City shall accept,
conditionally accept, require revisions to, or reject offers of dedication of
open space as necessary or appropriate to achieve the Open Space Goals if
City has determined that such action will not impact Company's
development rights and Company has consented to such action in writing.
City shall also accept dedications of open space that may be inconsistent
with the Open Space Goals upon a determination that failure to accept
dedication would create the potential for poorly maintained or improved
open space.
(b) Open Space Goals. This Agreement outlines certain "Open Space Goals'
that will be reviewed and refined by the Committee and submitted for
confirming action by the City Council. The Committee shall make
recommendations regarding those areas of open space that will remain
under the jurisdiction, and the sole responsibility, of certain Associations and
those areas that should be owned and/ or maintained by the City. The
following is a summary of the "Open Space Goals" that will be reviewed and
refined by Committee and may be submitted to the City Council for
confirming action:
(i) Coastal Canyon Park shall remain a private facility.
(ii) The City Council shall lease -back to one or more homeowners
associations, specific open space areas such as parks or portions of
parks that have been, or are to be, developed, including, without
limitation, Newport Ridge Park and the yet to be constructed park
adjacent to Signal Peak and Crystal Cove State Park, and that have
(m)
(iv)
(v)
Page 19
been recommended by the Committee. The lease shall be for the
maximum term permitted by law and the compensation to City shall
be $1 per year provided that the lessee(s) assume(s) all risk and
liability related to the open space and agree to maintain the open
space at no cost to the City.
When consistent with this Agreement and necessary to achieve an
Open Space Goal, City shall accept an offer of dedication for open
space or request the County transfer its interest in the Open Space.
City or its contractor shall maintain recreational open space and
related facilities in a manner that equals or exceeds the maintenance
standards for each area or facility in effect as of the Effective Date.
The NCC2K has expressed a desire for lighted athletic fields to be
constructed in the Newport Coast. The Committee shall recommend
locations for the development of one or more lighted athletic fields
that mini, -dze homeowner impact. In no event shall any lighted
athletic field be developed at Newport Ridge Park. City will, to the
maximum extent permitted by law, use its best efforts and good faith,
to support development of any lighted athletic field recommended by
the Committee providing the recommendations are consistent with
City standards.
14. PROPERTY MAINTENANCE.
(a) Intent /Public Purpose. The purpose and intent of this Section is to
allow for City maintenance of certain parkways, medians, natural slopes,
and fuel modification zones in the Newport Coast in accordance with
quality standards in effect as of the Effective Date. The Parties agree that
proper maintenance of parkways, medians, natural slopes, and fuel
Page 20
modification zones and the right to protect or enhance habitat serves a
valuable public purpose. The Parties intend that the City's obligation to
maintain parkways, medians, natural slopes and fuel modification zones
is contingent upon a request by the property owner and execution of an
agreement that, among other things, fully protects the City from any
liability related to its maintenance unless the damage is proximately
caused by the City's active negligence. The Parties acknowledge that
City's maintenance obligations do not extend to any landscaping,
irrigation, or lighting in or around the entrance pavilions or to any
landscaped area within any community - such as private parks, private
parkways, or private medians on streets behind gates.
(b) Section Definitions. For purposes of this Section, the terms:
(i) "Association" shall mean a residential homeowners' association or
residential community association within the boundaries of the Property.
(ii) "Fuel modification zone" shall mean a slope owned by an Association that
is adjacent to, and generally below, residential parcels and that has been
planted with fire- resistant vegetation to prevent or inhibit fire damage to
structures.
(iii) "Natural slope" shall mean a slope owned by an Association that has not
been improved or contains primarily native vegetation, and is generally
adjacent to and below a fuel modification zone.
(iv) "Maintain" or "Maintenance" shall mean, in the context of natural slopes,
parkways, medians, and fuel modification zones, the irrigation,
maintenance of irrigation equipment, fertilization, general care and
replacement of plant material, and the maintenance of electrical and
lighting equipment as applicable.
(v) "Median' shall mean the area in the center of a public street.
(vi) "Parkway" shall mean the area between a public sidewalk and the street
curb.
Page 21
(vii) "Property owner' shall mean an Association within the Property. It shall
not mean a government, educational, or commercial venture such as a
school, hotel, timeshare operator, golf course, land development company
or retail center.
(c) General Obligations. City shall, during the term of this Agreement, have the
obligation to maintain and pay for the costs of such maintenance:
(i) Medians and parkways along public streets.
(ii) Natural slopes or fuel modification zones if and when the property owner
fully satisfies the conditions specified in Subsection (d). City shall obtain
any permit necessary to conduct any maintenance on any natural slope
that is within the Natural Communities Conservation Plan. In no event
shall the City be liable for any slope failure or slope subsidence in any fuel
modification zone unless the failure or subsidence is proximately caused
by the active negligence or willful conduct of the City.
City or its contractor shall maintain all medians and parkways, and to the extent
the property owner satisfies the conditions specified in Subsection (d), the
natural slopes, fuel modification zones, and open space dedications and
facilities, in a manner that equals or exceeds the maintenance standards for each
area or facility which is in place as of the Effective Date. City shall not be liable
for any loss, claim or damage proximately caused by irrigation of a fuel
modification zone that is consistent with the time and extent of irrigation
occurring as of the Effective Date.
(d) Conditions to City Obligation Regarding Natural Slimes and Fuel Modification
Zones. City's obligation to maintain any fuel modification zone or natural slope
is contingent on satisfaction of all of the following conditions:
(i) Written Request. An Association in existence as of the Effective Date
Page 22
has, within nine (9) months after the Effective Date, served City with a
written request to maintain all or a portion of the fuel modification zone
and /or natural slope; or, for those Associations not in existence as of
the Effective Date, the Association shall, within nine (9) months of
formation, have served the City with a written request to maintain all
or a portion of the fuel modification zone and /or natural slope within
that Association's boundaries.
(ii) Maintenance A Treement. The property owner has executed a written
agreement ( "Maintenance Agreement "), approved as to form and
content by the City Attorney, that specifically authorizes City to enter
the property to perform the maintenance defined in Subsection (b) of
this Section, specifies the level of maintenance, and authorizes City use
of any facilities necessary to provide maintenance. The Maintenance
Agreement shall require the City to pay all costs incurred in
maintenance of the natural slope, median, parkway, or fuel
modification zone, including but not limited to water and other
necessary utility services. The Maintenance Agreement shall confirm
that the City is not liable for any loss, claim or damage, including slope
subsidence or failure, unless proximately caused by the negligence or
willful act of the City or its officers, employees, or agents. The
Maintenance Agreement shall also require the property owner to fully
cooperate with City and its officers, agents, members, employees and
contractors with respect to maintenance of the property.
(iii) Material Default. The property owner is not in material default
pursuant to the terms and conditions of the Maintenance
Agreement described in Subdivision (ii).
(e) Map. City and the Committee shall, within nine (9) months after the
Effective Date prepare the maps of the fuel modification zones and
Page 23
natural slopes. The maps are for information and the failure of a map to
depict property that otherwise qualifies as a fuel modification zone or
natural slope shall not affect the City's maintenance obligations.
15. UNDERGROUND UTILITIES. City shall, as of the Effective Date and during the
term of this Agreement, use its "best efforts" to encourage Southem California
Edison or its successor entity to underground power lines and electrical facilities in
the Newport Coast. City shall also use its best efforts to form an underground
utility assessment district upon a request from any group of Newport Coast
residents or any Association comprised on Newport Coast residents.
16. MISCELLANEOUS PROVISIONS
(a) Entire Agreement. This Agreement sets forth and contains the entire
understanding and agreement of the Parties, and all oral or written
representations, understandings or agreements are expressly stated in
this Agreement. No testimony or evidence of any such representations,
understandings, or covenants shall be admissible in any proceeding or
any kind or nature to interpret or determine the terms or conditions of
this Agreement.
(b) Severability. This Agreement and the remaining terms, provisions,
covenants, and conditions shall continue in full force and effect if any
term, provision, covenant, or condition is determined invalid, void, or
unenforceable by a final order of a court of competent jurisdiction unless
the order prevents one or both of the Parties from performing duties to
the extent that consideration would be lacking and, in such event, this
Agreement shall terminate.
Page 24
(c) Interpretation and Governing Law. This Agreement and any related
dispute shall be governed and interpreted in accordance with the laws of
the State of California. This Agreement shall be construed as a whole
according to its fair language and common meaning to achieve the
objectives and purposes of the Parties. The rule of construction to the
effect that ambiguities are to be resolved against the drafting Party shall
not be-employed in interpreting this Agreement since each Party has
been represented by counsel.
(d) Waiver. The failure of a Party to insist upon the strict performance by
the other Party, or the failure of a Party to exercise its rights upon the
default of the other Party, shall not constitute a waiver of that Party's
rights pursuant to this Agreement
(e) Successors in Interest. The burdens of this Agreement shall be binding
upon, and the benefits of this Agreement shall inure to, all successors in
interest to the Parties to this Agreement as well as the residents Newport
Coast.
(f) Specific Performance. The Parties acknowledge that monetary damages
would be inadequate to remedy any breach of this Agreement by either
Party. Accordingly, the Parties agree that any breach of this Agreement
shall entitle the non - breaching Party to file an action for specific
performance in a court of competent jurisdiction. In no event shall either
Party be liable for monetary damages, to one another or to any third
party, in the event of a breach of this Agreement by either Party.
(g) Counterparts. This Agreement may be executed by the Parties in
counterparts, which counterparts shall be construed together and have
the same affect as if all of the Parties had executed the same instrument.
Page 25
(h) jurisdiction and Venue. Any action at law or in equity arising under this
Agreement or brought by any Party shall be filed and tried in the
Superior Court of the County of Orange, State of California.
(i) Further Actions and Instruments. The Parties shall cooperate with one
another to the fullest extent possible to achieve the goals and objectives
of this Agreement including the prompt preparation, execution and/or
filing of documents and records necessary to implement provisions of
this Agreement
(j) Amendments in Writing /Cooperation. This Agreement may be
amended only by written consent of the Parties specifically approving
the amendment and in accordance with the Charter and State law. The
Parties shall cooperate in good faith with respect to any amendment
proposed in order to clarify the intent and application of this Agreement,
and shall treat any such proposal on its own merits, and not as a basis for
the introduction of unrelated matters.
(1;) Authority to Execute. The person or persons executing this Agreement
on behalf of each Party warrants and represents that he/she/they have
the authority to execute this Agreement on behalf of that Party.
(1) Notices. Any notice required or provided as a result of this Agreement
shall, if intended for City, be mailed to:
City Manager
Newport Beach City Hall
3300 Newport Boulevard
Newport Beach, California 92663
And if intended for NCC2K be mailed to:
'Prv- Annexahan Agreement i
November 28, 2002
Page 26
And if intended for NCC2K be mailed to:
Jim McGee
23 Corporate Plaza, Suite 2 0
1 Newport Beach, California 92600
IN WITNESS THEREOF, the parties hereto have executed this Agreement on the
Execution Date set forte above.
CITY:
HOMER L. BLU +7 A.U, City Manager
ATTEST.
LAVONNE I ?RTCL Z)S, City Clerk
FO
AS TO FORM:
BURNHAM, City Attorney
EXHIBIT 4
RESOLUTION NO. 2001- ai
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF NEWPORT BEACH
RELATING TO THE FORMATION OF THE
NEWPORT COAST ADVISORY COMMITTEE
WHEREAS, the Newport Coast community is a 7,799 -acre area within Newport
Beach's easternmost sphere of influence; and
WHEREAS, in Fall 2001, the Newport Coast community contains about 3,000
dwelling units and about 7,000 residents; and
WHEREAS, the City of Newport Beach has received the permission of the
Orange County Local Agency Formation Commission (OC LAFCO) to annex the
Newport Coast community pending a protest period and the satisfaction of certain
terms and conditions; and
WHEREAS, as a part of the annexation process, the City Council has agreed to
create a seven - member resident -based committee called the Newport Coast
Advisory Committee (NCAC) to advise the City Council in matters of importance to
the Newport Coast community; and
WHEREAS, the City Council has agreed to structure the NCAC in a manner
that allows the Newport Coast Committee of 2000 to appoint four members to the
NCAC, with the City Council appointing three members including one or more
members of the City Council whose district includes the Newport Coast; and
WHEREAS, the NCAC is intended — at least initially — to address issues such as
the placement of a community center in the Newport Coast, a payment to refund (in
part) certain assessment district obligations in the Newport Coast, the City's
maintenance of specified slopes and medians in the Newport Coast, and more; now,
therefore be it
RESOLVED by the City Council of the City of Newport Beach that it hereby
forms the Newport Coast Advisory Committee to advise the City Council
regarding issues of importance to the Newport Coast community; and
BE IT FURTHER RESOLVED by the City Council of the City of Newport
Beach that the NCAC shall have the term, membership, staffing, and duties as
described in Exhibit A to this Resolution. The information in Exhibit A shall be
included within the City's Boards, Commissions, and Committees Manual under
Section V of the Manual.
ADOPTED this 25th day of September, 2001.
ATTEST:
LAVONNE M. HARKLESS
Newport Beach City Clerk
GAROLD B. ADAMS
Mayor of Newport Beach
Exhibit A (and Attachment B)
NEWPORT COAST ADVISORY COMMITTEE
AUTHORIZATION: Established by Resolution 2001 -_, adopted on September 25,
2001.
MEMBERSHIP: Seven members of the Newport Coast community, appointed as
follows:
• Terms shall be for three years.
• Four of the members shall be appointed by the Newport
Coast Committee of 2000 or, if the NCC2K ceases to exist,
the Master Homeowners' Associations in the Newport
Coast. Two of the four members shall be appointed to
"double -term" positions, meaning up to six years.
• Three of the members shall be appointed by the City Council
from an applicant pool. The council member(s) representing
the Newport Coast community shall make up one, two, or
all three of the Mayor's appointments. The Mayor shall
make his or her appointments from applicants who reside in
the Newport Coast. If the Council Member representing the
Newport Coast does not reside in the Newport Coast, this
council member's appointment shall be an exception to the
Newport Coast resident -only qualification for this
committee's membership.
Three consecutive unexcused absences by a committee
member shall disqualify that Committee member from the
NCAC. A vacancy from the City Council's appointments
shall be replaced by the City Council. A vacancy by the
NCC2K /Master HOAs' appointments shall be replaced by
the NCC2K /Master HOA.
Committee support shall come from the City Manager's Office
and the City Attorney's Office. All meetings shall be open and
public and subject to the Brown Act.
TERM: The Committee's term shall be six (6) years or the cessation of
annexation proceedings (Annexation #CA01 -06) at the time that
the LAFCO executive officer deems Annexation #CA01 -06) not
complete or withdrawn.
PURPOSE &
RESPONSIBILITIES:
A. Advise the City Council - Advise the City Council on any
matter of importance to the Newport Coast community not listed
herein.
B. Community Center - Advise the City Council on the Newport
Coast community's interest (or lack thereof) in the placement of a
community center in the Newport Coast. Advise the City
Council on the location, design, and use of the Community
Center.
C. Assessment District Relief - Advise the City Council on the
equitable.allocation of approximately $18 million in assessment
district relief to owners and occupiers of sing ,le family homes in
the Newport Coast.
D. Slope, Park, and Median Maintenance - Advise the City
Council regarding the maintenance of slopes, medians, and parks
within the Newport Coast. Advise the City Council of the
quality and standards of such maintenance.
Section V - Page 6
STATE OF CALIFORNIA }
COUNTY OF ORANGE } ss.
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. 2001 -81 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
25th day of September, 2001, and that the same was so passed and adopted by the following vote, to
wit:
Ayes; Heffernan, O'Neil, Ridgeway, Glover, Bromberg, Proctor, Mayor Adams
Noes: None
Absent: None
Abstain: None
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the
official seal of said City this 26th day of September, 2001.
(Seal)
d1� /,)�.Wa&
City Clerk
Newport Beach, California