Loading...
CC RES 1994-083RESOLUTION NO. 94 -83 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, CALIFORNIA DECLARING ITS INTENTION TO ORDER A SUPPLEMENTAL ASSESSMENT IN CONNECTION WITH RANCHO PALOS VERDES IMPROVEMENT DISTRICT NO. 5A, DALADIER DRIVE, ET AL, PURSUANT TO THE MUNICIPAL IMPROVEMENT ACT OF 1913 THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS: Section 1, The City Council, by its Resolution No. 89- 31, ordered improvements to be made within a certain assessment district designated as "Rancho Palos Verdes Improvement District No. 5A, Daladier Drive, et al." (the "District ") pursuant to the Municipal Improvement Act of 1913, Division 12 of the California Streets and Highways Code, commencing with Section 10000 (the "Act ") , and confirmed an assessment of the cost of such improvements upon the several subdivisions of land within the District. Section 2. The improvements ordered by the City Council by its Resolution No. 89 -31 (the "Improvements ") include the following: a. The excavation of trenches, backfilling, resurfacing, and the. installation of communication cable and wire facilities and underground supporting structures such as conduits, manholes, pull boxes, handholes, and other associated facilities, together with appurtenances and appurtenant work for the conversion of overhead electric and communication facilities to underground locations; b. The relocation or alteration of existing pipeline utilities where required to complete the above - described work; C, The acquisition.of rights -of -way, easements or land necessary for the accomplishment of the above - described works of improvement; and d. The construction, reconstruction or conversion of electric or communication facilities, including connections to owners' premises, located upon any lot or parcel within the District. Such work shall be done at the owner's expense; provided, however, such work may be done by the contractor or public utility performing the conversion work and the cost thereof included in the assessment to be levied upon such lot or parcel provided the owner executes and files with the City Clerk a written request therefor which expressly authorizes the contractor or public utility and their respective officers, agents and employees to enter upon such lot or parcel for such ur ose and shall waive any right of protest or P objection in P respect of the doing of the work and the inclusion of the cost thereof in the assessment. Section 30 Litigation challenging formation of the District was filed shortly after adoption of Resolution No, 89- 31. The Improvements were not completed pending resolution of the litigation. Prior to the lawsuit, the City had solicited bids from private contractors to construct the Improvements. The City did not award a contract for the Improvements. The City had also negotiated agreements with Pacific Telephone, Southern California Edison, and Times - Mirror Cable Television (the "Public Utilities "), but these agreements are no longer in effect. Section 4. The litigation challenging formation of the District was unsuccessful. On September 3, 1992, the California Supreme Court denied review of the lower court's decision upholding the formation of the District. On February 2, 1993, the City Council directed staff to continue with the necessary tasks to implement the District. Section 5. The City Council rejected all outstanding bids to construct the Improvements, and directed staff to negotiate agreements with the Public Utilities. The City has advertised for bids to construct the Improvements and has negotiated agreements with the Public Utilities, The Public Utilities have prepared revised plans and specifications for the Improvements which are substantially the same as those originally prepared for the Improvements, except that certain minor changes have been made to the plans and specifications for the Improvements. Section 6. The lowest responsible contractor's bid for constructing the Improvements exceeds the estimated cost set forth in the engineer's report approved by Resolution No. 89 -31, and therefore will result in an increase in the estimated cost of the Improvements. In addition, the proposed agreements with the Public Utilities provide for greater costs and lesser credits than those previously estimated, and therefore will result in an increase in the estimated cost of the Improvements. Finally, the estimated amount of incidental expenses in connection with constructing the Improvements, obtaining necessary easements for the Improvements, and issuing bonds to assist in financing the Improvements exceeds the previous estimate for such expenses, and therefore will result in an increase in the estimated cost of the Improvements. Section 7. Staff has calculated that the estimated cost of the Improvements exceeds the cost estimate contained in the Engineer's Report approved by the City Council in its Resolution No. 89 -31 by $679,955. Section 8. The City Council hereby determines that the assessment of the cost of the Improvements upon the several subdivisions of land within the District, approved by its Resolution No. 89 -31, will fail to raise sufficient money to pay 2 - RESOL. NO. 94 -83 all costs, damages, and expenses of the Improvements. Section 9, The City Council hereby (i) finds that the public interest, necessity and convenience require, and (ii) declares its intention to order, the levy of a supplemental assessment to pay the deficit described in Section 8 above. Section 10. Revenues from the supplemental assessment will be used to finance the Improvements briefly described in Section 2 above. Section 11. For a description of the exterior boundaries of the District, reference is hereby made to a map titled "Assessment Diagram, Rancho Palos Verdes Improvement District 5A, Daladier Dr. et al.," approved by the City Council and on file in the office of the City Clerk of the City of Rancho Palos Verdes, located at City Hall, 30940 Hawthorne Boulevard, Rancho Palos Verdes. Such map has also been recorded in the office of the County Recorder of the County of Los Angeles. Such map indicates by a boundary line the extent of the territory included in the District, and shall govern for all details as to the extent of the District. Section 12. The City Engineer is hereby appointed and designated as Assessment Engineer for purposes of supplemental assessment proceedings to be undertaken in connection with the District. Section 13. The Improvements are hereby referred to the Assessment Engineer, who is hereby directed to make a written report in accordance with Section 10204 of the Streets and Highways Code and to file such report with the City Clerk in connection with the levy of a supplemental assessment. Section 14. Provision is hereby made for the issuance of improvement bonds pursuant to Chapter 7 of the Act, to represent unpaid supplemental assessments. The City Council determines and declares that bonds shall be issued under the provisions of the Improvement Bond Act of 1915, Division 10 of the Streets and Highways Code, commencing with Section 8500. Section 15. Notice is hereby given that serial bonds or term bonds, or both, to represent unpaid supplemental assessments, and to bear interest at the rate of not to exceed 12 percent per annum, or such other maximum rate of interest as may be permitted by law, payable semiannually, shall be issued hereunder in one or more series in the manner provided by the Improvement Bond Act of 1915, Division 10 of the Streets and Highways Code, and the last installment of bonds shall mature a maximum of 39 years, or such other maximum number of years to maturity as may be permitted by law, from the second day of September next succeeding 12 months from their date. 3 - RESOL. NO. 94 -83 Section 16. The City Council hereby determines and declares that the City will not obligate itself to advance available funds from the City Treasury to cure any deficiency which may occur in the bond redemption fund. Section 17, The City Council hereby determines that the principal amount of bonds.maturing or becoming subject to mandatory prior redemption each year shall be other than an amount equal to an even annual proportion of the aggregate principal of the bonds, and that the amount of principal maturing or becoming subject to mandatory prior redemption in each year plus the amount of interest payable in that year shall be an aggregate amount that is substantially equal each year, except for the moneys falling due on the first maturity or mandatory prior redemption date of the bonds which shall be adjusted to reflect the amount of interest earned from the date when the bonds bear interest to the date when the first interest is payable on the bonds. Section 18. With respect to the procedures for collec- tion of supplemental assessments and the advance retirement of bonds in connection with the District, the City Council proposes to proceed under the provisions of Part 11.1 of Division 10 of the Streets and Highways Code. Section 19, The City Council hereby designates the City Treasurer, or the designated agent of the City Treasurer, to collect and receive the supplemental assessments. Section 20. Pursuant to Streets and Highways Code Section 8680, the City Council hereby provides that a penalty of two percent per month of the total amount of a delinquent installment shall be added to such delinquent installment after the close of business on the delinquency date and an additional penalty of two percent of the amount of the delinquency shall be added at the beginning of business on the tenth day of each succeeding month until such delinquent installment and all penalties thereon are fully paid. This penalty shall be in lieu of all other penalties assessed by other provisions of law. Section 21. The City Council hereby determines that the bonds issued to represent.unpaid supplemental assessments may be refunded under specified conditions. The City Council hereby declares that such bonds may be refunded upon determination by resolution of the City Council to do so. The City Council may undertake such a refunding upon recommendation of a financial advisor that it is in the best interests of the City to undertake such a refunding. Such written recommendation shall include the reasons therefor. The maximum interest rate on such refunding bonds shall not exceed 12 percent per annum or such other maximum rate of interest as then may be permitted by law. The maximum 4 - RESOL. NO. 94 -83 number of years to maturity, of the refunding bonds shall not exceed 39 years from the second day of September next succeeding twelve months from the date of the refunding bonds, or such other maximum number of years to maturity as then may be permitted by law. Any adjustment to supplemental assessments resulting from the refunding will be done on a pro rata basis. Section 22. Any surplus moneys remaining in the improvement fund after the completion of the Improvements and the payment of all claims from the improvement fund by reason of the assessment and any supplemental assessment levied for the Improvements shall be disposed of in accordance with Streets and Highways Code Section 10427. Section 23. The City Council hereby declares that any lot or parcel belonging to the United States, the State of California, the County of Los Angeles or the City of Rancho Palos Verdes, which is in use in the performance of any public function, shall be omitted from the supplemental assessment to cover the costs and expenses of the Improvements. Section 24, The City Council hereby determines that it is in the public interest and more economical to do work on private property to eliminate any disparity in level or size between the Improvements and private property, rather than to adjust the work on public property to eliminate such disparity. Section 25. In the opinion of the City Council, the public interest will not be served by allowing property owners to take a contract to perform any of the Improvements. Section 26. The City Engineer is hereby appointed and designated to perform the duties and functions of the Superintendent of Streets in connection with the supplemental assessment proceedings. Section 27. The City Council hereby declares its intention to enter into agreements with Southern California Edison, Pacific Telephone, and Times - Mirror Cable Television pursuant to the provisions of Chapter 2 of the Act. 5 - RESOL. NO. 94 -83 PASSED, APPROVED and ADOPTED this 20th day of September, 1994. RAYOR' ATTEST: CITY CLERK Stye of California County of Los Angeles ) SS City of Rancho Palos Verdes I, JO PURCELL, City Clerk of the City of Rancho Palos Verdes, hereby certify that the above Resolution No. 94 -83 was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on September 20, 1,1994, City C Iork City of Rancho Palos Verdes 6 - RESOL. NO. 94 -83