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Home My WebLink About19 - Petition Certification for Proposed Underground Assessment District Nos. 111; and 116b NEWPORT CITY OF e= NEWPORT BEACH CqC/F00.NP City Council Staff Report October 13, 2015 Agenda Item No. 19 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Dave A. Webb, Public Works Director - 949-644-3311, dwebb@newportbeachca.gov PREPARED BY: Michael J. Sinacori, Assistant City Engineer PHONE: 949-644-3342 TITLE: Petition Certification for Proposed Underground Assessment District Nos. 111 (Area bounded by: 23rd Street, West Oceanfront, 30th Street and Balboa Boulevard); and 116b (Area Bounded by: 45th Street/Channel Road, Channel Park, River Avenue/47th Street and Neptune Avenue) ABSTRACT: Residents within two (2) areas along Balboa Boulevard in West Newport have now submitted separate petitions to the City of Newport Beach signed by at least 50% of the affected property owners requesting formation of Underground Utility Assessment District Numbers 111 and 116b (AD 111 and AD 116b). These areas are adjacent to the City Council established Balboa Boulevard Rule 20a undergrounding project currently in design by Southern California Edison (Edison). City staff and the proponents of AD 111 and AD 116b are recommending that a property owner vote be held using a cost estimate to confirm the property owner's desire to underground prior to completing the final Balboa Boulevard 20a design efforts. If AD 111 and AD 116b are approved, design funds would then be advanced to Edison and AT&T for the design and bidding of the proposed underground systems, simultaneously, at a potential cost savings to the Balboa Boulevard 20a and AD 111 and AD 116b projects. RECOMMENDATION: a) Adopt Resolution No. 2015-81, A Resolution of the City Council of the City of Newport Beach, California, Accepting Petition of Assessment District No. 111; and b) Adopt Resolution No. 2015-82, A Resolution of the City Council of the City of Newport Beach, California, Accepting Petition of Assessment District No. 116b. Petition Certification for Proposed Underground Assessment District Nos. 111 (Area bounded by: 23rd Street, West Oceanfront, 30th Street and Balboa Boulevard); and 116b (Area Bounded by: 45th Street/Channel Road, Channel Park, River Avenue/47th Street and Neptune Avenue) October 13, 2015 Page 2 FUNDING REQUIREMENTS: There is no new fiscal impact related to this item. Based on Council input last fiscal year, an $87,000 Professional Services Agreement with Harris and Associates was executed to complete the Engineer's Reports, prepare assessment ballots and attend the public hearings for the property owners to consider undergrounding for these two (2) districts. Approximately $60,000 of the $87,000 in General Funds has been expended and the Engineer's Reports are now complete. Preparation of assessment ballots and schedules for public hearings for these districts can be accommodated within the existing budget. If the districts are not successful in formation, the General Funds utilized to date for the preparation of the Engineer's Reports would not be recovered from the proposed district property owners. DISCUSSION: The property owners of Proposed Underground Assessment District Nos. 111 and 116b (AD 111 and AD 116b) have submitted separate petitions to the City requesting a Special Assessment District be formed, pending approval of a district wide vote, to finance the undergrounding of overhead utilities within the proposed district. The boundaries of the proposed AD 111 and AD 116b districts are shown within Attachment A and B respectively. One of the initial steps in the district formation process is the circulation of the Petition for Special Assessment Proceedings. Proponents of AD 111 and AD 116b circulated the petitions to property owners within the proposed districts and have now submitted the petition signatures for each proposed district to the City. The submitted signatures represent just over 50% of the assessable land within the proposed district. The City's current guidelines require a minimum of 60% of property owners' signatures in favor of the district in order to proceed with the district formation process. The 60% guideline reduces the financial risk to the City and further assures the City Council that the community is truly in favor of undergrounding and will vote positively in the future. State law requires a minimum of 50%. After much effort, proponent organizers within both AD 111 and AD 116b have successfully reached the 50% threshold. However, they have encountered difficulty in contacting more property owners as both these areas have low owner occupancy. Obtaining the remaining required signatures to meet the City's 60% guideline is unlikely to occur in the immediate future for the reasons stated. To date, Harris and Associates has reviewed and certified that the proponents of AD 111 have obtained 51.52% of the signatures required. Proponents of AD 116b have obtained 53.72% of the property owner's signatures as required. Both proposed Assessment Districts meet the Petition Certification for Proposed Underground Assessment District Nos. 111 (Area bounded by: 23rd Street, West Oceanfront, 30th Street and Balboa Boulevard); and 116b (Area Bounded by: 45th Street/Channel Road, Channel Park, River Avenue/47th Street and Neptune Avenue) October 13, 2015 Page 3 minimum 50% prepetition threshold established under State law and can legally move forward to a public vote if City Council so directs. Due to the proximity to the City Council approved Balboa Boulevard 20a Underground Assessment District and the timing of that project, City staff is recommending moving forward with the districts and holding the public hearing necessary to form the adjacent AD 111 and AD 116b districts. Following certification of the petition, the typical next step in the formation process is for the City to advance the necessary funds to Edison and AT&T for the design of the new underground systems. However, the design will take 18 to 24 months and these funds will not be recovered if AD 111 and AD 116b are not formed. In addition, AD 111 and AD 116b are adjacent to the City's Balboa Boulevard Rule 20a undergrounding project that extends from West Coast Highway to 23`d Street. The design work for the 20a project is underway and construction is planned in approximately two (2) years. In order to finalize the 20a design, the undergrounding boundaries of adjacent areas must be understood by Edison. Prior to combining the design efforts and to guarantee commitment from the AD 111 and AD 116b property owners, City staff and the proponents are recommending a property owner vote prior to expending any more design efforts on the 20a project or advancing design funds for the AD 111 and AD 116b projects. As noted above, the City previously entered into a contract with Harris and Associates to prepare the Engineer's Reports for these two (2) districts. This was done after an outreach meeting with the community where there was overwhelming support for moving forward with the joint undergrounding project. To assist in the process, the City mailed post cards to property owners in these two (2) areas which yielded the two (2) areas of undergrounding (AD 111 and AD 116b). If the projects proceed together, the City could realize in excess of $500,000 in savings for the 20a project. The residents would also receive savings by completing their project in concert with the 20a efforts and gaining the economy of scale of the larger project. Staff estimates at least a 20% savings to the resident's project if done in concert with the Balboa Boulevard 20a project. PROJECT HISTORY: • November 12, 2013 — City Council approves the Balboa Boulevard 20a Undergrounding Project. The initial boundary of the project includes the first pole off Balboa Boulevard and impacts approximately 150 private properties. • Summer 2014 — SCE informs the City that the project cost for the Balboa Boulevard project has increased and SCE places the design efforts on hold as City staff works with the community on possible solutions to the boundary/cost Petition Certification for Proposed Underground Assessment District Nos. 111 (Area bounded by: 23rd Street, West Oceanfront, 30th Street and Balboa Boulevard); and 116b (Area Bounded by: 45th Street/Channel Road, Channel Park, River Avenue/47th Street and Neptune Avenue) October 13, 2015 Page 4 issues, including having adjacent areas undergrounded under possible 20b projects. • September 9, 2014 - Community meeting held to discuss the possibility of adjacent areas forming 20b underground districts in concert with the planned Balboa Boulevard 20a Project. The approximate 100 property owners in attendance showed overwhelming support for the idea. • January 21, 2015 - Second Community Meeting held and petition signature post cards were mailed to residents in areas where undergrounding was desired (AD 111 and AD 116b). Minimum requirement of 50% signature was indicated to the more than 50 property owners in attendance. • February 10, 2015 — City Council Study Session held to discuss possible changes to the Underground District formation process. The City Council indicated a general support for the status quo, including maintaining a 60% signature requirement for the petition. • May 2015 - City staff requested that AD 111 and AD 116b proponents submit all signatures received to identify areas of support for undergrounding to date. The areas shown on the attached boundary maps are those having greater than 50% support. The proponents indicate that any further signatures will be difficult to obtain due to owner occupancy in the area and the difficulty of trying to obtain owner contacts. Proponents request to move forward to certification with less than the desired 60% property owner signatures. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15302 (replacement of existing facilities involving negligible expansion of capacity) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential to have a significant effect on the environment. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENTS: Attachment A— Proposed Boundary Map of AD 111 Attachment B — Proposed Boundary Map of AD 116b Attachment C — Resolution Certifying the Petition for AD 111 Attachment D — Resolution Certifying the Petition for AD 116b N ATTACHMENT A 0 BOUNDARYPROPOSED 01 ASSESSMENTT DISTRICT --mS 014 3012 NNNN 1 3012 fp rn oNam 0 3010 3008 3008 3OOa_ �W(I1J(O�W(JtJ �W(/t�NNN O WQIW W WW W � 3000 ut 30TH ST 2914 O » NNNN I ON.OP OOiWON°A N Z 66T 2912 w W o Nrnmo aw y ➢ m 2910 m a v N N I2904 � WUV(ONW NJ ONNNNNN NN iN '� 2900 07 I 29TH ST D STREET 2$14 W I2$12 pOj � .P O]W NAO]OJID ON< WON �N� O W 29Ty 2810 � S+ 2808 p C 2806 80 N o Z$OZ V(�-�W(T J(O�W �W(ItJtO+WN 2800 mmmu,/ 28TH ST Do 2712 r- O� .mnmN 2712 W ON�P OtWON 211 2710 2 11 O N z 2708 11 N I 2706 2702 OVO�W(n JIO�W�NO 2700 J 28rN 27TH ST sr 262 y'DO aCC S 26TH ST 2510 2508 rn I 2506 y 2504 2500 VIp�W NNNNN (TV(O�WUtV(O 4FZO6 o �ONAWWON 26TH 7. S 2ao4 _ TO RFFT 2202 00 NNNN �1 2400 °O I 24TH T U 2314 r 2310 c Jo DD W C 1 6 -' 2306 307/ 2304 30 BOUN ARY OF PROPOSED 2302 2300 m /'nom o wcNii 30 ASSE SMENT DISTRICT 22RD� 2214 2212 2233 2 20 208 - PARCELS:278 PROPOSED ASSESSMENT DISTRICT NO. 111 .� AREA BOUND BY NEWPORT BLVD,23RD STREET,31ST STREET,AND OCEAN FRONT WEST LEGEND N UTILITY POLES TO REMAIN ® UTILITY POLES TO BE REMOVED ® UTILITY POLES FROM 20A PROJECT N.T.S. OVERHEAD UTILITY LINES TO BE REMOVED 6/18/15 OVERHEAD UTILITY LINES TO REMAIN IN PLACE 19-5 GUY WIRE 48TH ST ATTACHMENT B �O 9L m iC 1 47TH ST ` 'y \00 w D CO 4 N NN W W of �v� -I 46TH ST ' v, ^o �v 1� A61W 0 NA� � O N � ay �n wN wN as ^^ BOUND A Y OF PROP SED aaaao� ^ ASSESSM NT DISTRIC 45TH ST I a° ry alp N N N N N W W p p 6 ry AwONAOCOON I pP p�bp^� �, 0. p0 V• �� » � WI \ I I m NNNN W W DI b�0� \ D (P O WCTVO � W W Labb = 44TH ST O O � � NNNNN W D N N NN��pa A BONA 61000 A W W o W m "— ,_ „� „� cormts< �W W < m 0 N rn 43RD ST 4210 N N N N N W p o o NN 4208-v2 A OD N A 61 W 0 A m m o 4208 0420 n to N N N NN 4204 tl2 Z CNV O �WV, VCNO W � �3Lww N a � ¢200 42ND ST < m 4„0-,/2 » > N N N N 1 4110 � NNNNN pW WON”' ¢10$ T arncooNarnao _ 4106 A p ---- T- N 4104 p Z j N N N D wlcnJ wcn !-74m4100 Q PROPOSED ASSESSMENT DISTRICT NO. 116B .` AREA BOUND BY BALBOA BLVD, NEPTUNE AVE,47TH ST,45TH ST,AND CHANNEL RD . LEGEND N O UTILITY POLES TO REMAIN PARCELS:53 ® UTILITY POLES TO BE REMOVED ® UTILITY POLES TO BE REMOVED AS PART OF 20A BALBOA BLVD.PROJECT N.T.S. OVERHEAD UTILITY LINES TO BE REMOVED 8/20/15 OVERHEAD UTILITY LINES TO REMAIN IN PLACE GUY WIRE V ADDED WOOD OR STEEL GUY POLES 19-6 ATTACHMENT C RESOLUTION NO. 2015- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH ACCEPTING PETITION OF ASSESSMENT DISTRICT NO. 111 WHEREAS, the owners of certain real property situated in the City of Newport Beach (the "City") have filed with the City Clerk several signed counterparts of a petition, requesting the implementation of a project for the undergrounding of certain existing, overhead utility facilities, together with appurtenant work and improvements, as described therein, the cost of which is to be specifically assessed against each parcel of land benefiting from such improvements as shown on an exhibit map attached to the petition; and WHEREAS, the petition satisfies the requirements for instituting proceedings for the conversion of existing overhead electric and communication facilities to underground locations in accordance with Section 5896.5 of the Streets and Highways Code of the State of California; and WHEREAS, the City Clerk has also received a certificate to the effect that the petition has been signed by persons owning lands constituting more than fifty percent (50%) in area of the land subject to assessment within the proposed assessment district; and NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: PETITION ACCEPTED. The petition, as filed with the City Clerk, is hereby found to be legally sufficient and is accepted. Section 2: DETERMINATION TO UNDERTAKE PROCEEDINGS. The special - 1 - 19-7 assessment proceedings shall be undertaken by the terms of the petition, pursuant to the Municipal Improvement Act of 1913 and Limitation and Majority Protest Act of 1931 commencing with Section 2960 of the Streets and Highways Code. Section 3: PUBLIC INTEREST AND CONVENIENCE SERVED. This City Council hereby finds and determines that the public interest and convenience will be served by the taking of such proceedings. Section 4: This action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(3) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3 because the activity is not a project as defined in Section 15378 and has no potential for resulting in physical change to the environment, directly or indirectly. Section 5: ACTION IS FINAL. This action is "final' within the meaning of Streets and Highways Code Section 3012. Section 6: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution. ADOPTED this day of 2015. BY: Edward D. Selich, Mayor ATTEST: - 2 - 19-8 Leilani I. Brown, City Clerk Attachment: Assessment Engineer Certificate of Sufficiency of Petition - 3 - 19-9 CERTIFICATE OF SUFFICIENCY OF PETITION STATE OF CALIFORNIA COUNTY OF ORANCE CITY OF NEWPORT BEACH The undersigned hereby CERTIFIES as follows: That 1 am the duly appointed ASSESSMENT ENGINEER of the CITY OF NEWPORT BEACH, CALIFORNIA. That on the 23`d day of lune, 2015, 1 reviewed a Petition for the formation of an Assessment District for certain public works of improvement, together with appurtenances, appurtenant work and acquisition, where necessary, in a special assessment district known and designated as ASSESSMENT DISTRICT NO. 1 I 1 (hereinafter referred to as the "Assessment District'), a copy of which is on file in the Office of the City Clerk. The undersigned hereby further specifically certifies as follows: 1. That 1 caused said Petition to be examined and my examination revealed that said Petition was signed by not less than five(5) owners of assessable land in the proposed Assessment District as shown by the last equalized assessment roll used by the City, owning lands constituting more than fifty percent (50%) of the area of all assessable lands within the proposed Assessment District, all as prescribed by Section 5896.6 of the Streets and Highways Code of the State of California. 2. Said Petition did represent fifty-one and fifty two hundredths of a percent (51.52%) of the assessable area of property within the proposed boundaries of the Assessment District. Executed this 23`d day of June, 2015 at Irvine, California. ALISON BOULEY, P.E. O HARRIS &ASSOCIATES ASSESSMENT ENGINEER CITY OF NEWPORT BEACH STATE OF CALIFORNIA 19-10 ATTACHMENT D RESOLUTION NO. 2015- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH ACCEPTING PETITION OF ASSESSMENT DISTRICT NO. 116B WHEREAS, the owners of certain real property situated in the City of Newport Beach (the "City") have filed with the City Clerk several signed counterparts of a petition, requesting the implementation of a project for the undergrounding of certain existing, overhead utility facilities, together with appurtenant work and improvements, as described therein, the cost of which is to be specifically assessed against each parcel of land benefiting from such improvements as shown on an exhibit map attached to the petition; and WHEREAS, the petition satisfies the requirements for instituting proceedings for the conversion of existing overhead electric and communication facilities to underground locations in accordance with Section 5896.5 of the Streets and Highways Code of the State of California; and WHEREAS, the City Clerk has also received a certificate to the effect that the petition has been signed by persons owning lands constituting more than fifty percent (50%) in area of the land subject to assessment within the proposed assessment district; and NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: PETITION ACCEPTED. The petition, as filed with the City Clerk, is hereby found to be legally sufficient and is accepted. Section 2: DETERMINATION TO UNDERTAKE PROCEEDINGS. The special - 1 - 19-11 assessment proceedings shall be undertaken by the terms of the petition, pursuant to the Municipal Improvement Act of 1913 and Limitation and Majority Protest Act of 1931 commencing with Section 2960 of the Streets and Highways Code. Section 3: PUBLIC INTEREST AND CONVENIENCE SERVED. This City Council hereby finds and determines that the public interest and convenience will be served by the taking of such proceedings. Section 4: This action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(3) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3 because the activity is not a project as defined in Section 15378 and has no potential for resulting in physical change to the environment, directly or indirectly. Section 5: ACTION IS FINAL. This action is "final' within the meaning of Streets and Highways Code Section 3012. Section 6: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution. ADOPTED this day of 2015. BY: Edward D. Selich, Mayor ATTEST: - 2 - 19-12 Leilani I. Brown, City Clerk Attachment: Assessment Engineer Certificate of Sufficiency of Petition - 3 - 19-13 CERTIFICATE OF SUFFICIENCY OF PETITION STATE OF CALIFORNIA COUNTY OF ORANCE CITY OF NEWPORT BEACH The undersigned hereby CERTIFIES as follows: That I am the duly appointed ASSESSMENT ENGINEER of the CITY OF NEWPORT BEACH, CALIFORNIA. That on the 18h day of June, 2015, I reviewed a Petition for the formation of an Assessment District for certain public works of improvement, together with appurtenances, appurtenant work and acquisition, where necessary, in a special assessment district known and designated as ASSESSMENT DISTRICT NO. I I 6 (hereinafter referred to as the "Assessment District''), a copy of which is on file in the Office of the City Clerk. The undersigned hereby further specifically certifies as follows: 1. That I caused said Petition to be examined and my examination revealed that said Petition was signed by not less than five(5) owners of assessable land in the proposed Assessment District as shown by the last equalized assessment roll used by the City, owning lands constituting more than fifty percent (50%) of the area of all assessable lands within the proposed Assessment District, all as prescribed by Section 5896.6 of the Streets and Highways Code of the State of California. 2. Said Petition did represent fifty-three and seventy two hundredths of a percent (53.72%) of the assessable area of property within the proposed boundaries of the Assessment District. Executed this 18`h day of June, 2015 at Irvine, California. 2�k-z� 4 ALISON BOULEY, P.E. HARRIS &ASSOCIATES ASSESSMENT ENGINEER CITY OF NEWPORT BEACH STATE OF CALIFORNIA 19-14