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HomeMy WebLinkAboutTC Res 2017-01-04 RESOLUTION NO. 0 1-2017 A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF TIBURON, CALIFORNIA, DECLARING ITS INTENTION TO TAKE PROCEEDINGS PURSUANT TO THE MUNICIPAL IMPROVEMENT ACT OF 1913 AND TO ISSUE BONDS PURSUANT TO THE IMPROVEMENT BOND ACT OF 1915 TO UNDERGROUND ALL EXISTING OVERHEAD UTILITY FACILITIES WITHIN THE BOUNDARIES OF THE PROPOSED TOWN OF TIBURON ASSESSMENT DISTRICT NO. 2017-1 (HAWTHORNE UNDERGROUNDING DISTRICT) AND MAKING CERTAIN FINDINGS AND DETERMINATIONS IN CONNECTION THEREWITH WHEREAS, the Town Council of the Town of Tiburon (the "Town") has previously adopted Town Council Resolution No. 2996 supporting the undergrounding of overhead utility wires and poles and has adopted Policy and Procedures for the Formation of Utility Undergrounding Assessment Districts (the"Policies"); and WHEREAS, in accordance with the Policies, the owners of certain parcels of land have submitted petitions (the "Petitions") to the Town requesting the formation of an assessment district in order to underground all of the overhead utility wires, poles and other facilities providing utility service to the area within the proposed assessment district; and WHEREAS, the Town Clerk has reviewed the Petitions and in accordance with Streets and Highways Code Section 5896.7 has presented to the Town Council a certificate as to the sufficiency of the Petitions to the effect that petitions have been submitted by more than five owners of assessable land within the proposed assessment district, as shown on the last equalized assessment roll, who own lands constituting more than one-half of the area of all assessable lands within the proposed assessment district; and WHEREAS, the Town Engineer and Director of Public Works (the "Town Engineer") has reviewed the Petitions and determined that the Petitions show support for the proposed assessment district by the owners of at least sixty percent (60%) of the parcels within the proposed assessment district;and WHEREAS, the Town Council desires to adopt this resolution in accordance with the Policies and the provisions of Streets and Highways Code Section 10200, which is a part of the Municipal Improvement Act of 1913 (the "1913 Act'), declaring its intention to make acquisitions and improvements to underground all electric, telephone and cable facilities, remove poles,overhead wires, guys and anchors and complete appurtenant work thereto as further described in Section 3 hereof (the "Improvements") and to order the formation of an assessment district to pay the costs thereof under and pursuant to the provisions of the 1913 Act; and WHEREAS, the proposed assessment district, if it is formed, is to be known and designated as the Town of Tiburon Assessment District No. 2017-1 (Hawthorne Undergrounding District) (the "Assessment District'); and WHEREAS, the proposed boundaries of the Assessment District are shown on a map which indicates by a boundary line the extent of the territory proposed to be included in the Assessment District, which map has been prepared by Harris & Associates (the "Assessment Engineer") and designated "Town of Tiburon Hawthorne Undergrounding District Proposed Boundary Map" (the "Map"), which Map is on file in the office of the Town Clerk; and WHEREAS, the Town Engineer, with the assistance of the Assessment Engineer, is competent to make and file with the Town Clerk the report with regard to the Improvements, which report is required by the 1913 Act to be made and filed; and WHEREAS, the conversion of overhead electric utility distribution system facilities to underground, including connection to existing overhead electric utility distribution lines where the surface is restored to the condition existing prior to undergrounding, is categorically exempt from the California Environmental Quality Act (Public Resources Code Section 21000 et seg.) ("CEQA") and its implementing guidelines (14 California Code of Regulations Section 15000 et seq.) (the "Guidelines") pursuant to Section 15302(d) of the Guidelines; and WHEREAS, in order to finance the cost of the Improvements the Town Council intends to consider issuing bonds secured by the assessments to be levied on property in the Assessment District pursuant to the Improvement Bond Act of 1915, being Division 10 (commencing with Section 8500) of the Streets and Highways Code (the "1915 Act');and WHEREAS, before issuing bonds, the Town Council is required, under the 1915 Act, to 1 adopt a resolution declaring its intention to do so; NOW, THEREFORE, The Town Council of the Town of Tiburon does hereby find, order and resolve as follows: SECTION 1. The above recitals, and each of them, are true and correct. SECTION 2. In accordance with the Policies, the Town Council hereby appoints Harris & Associates as the Assessment Engineer and the firm of Stradling Yocca Carlson & Rauth, a Professional Corporation and Samuel Sperry as bond counsel for the Assessment District. SECTION 3. The Improvements generally include the undergrounding of existing electric, telephone and cable facilities, including the removal of poles, overhead wires, guys and anchors and the installation of new underground service connections and new streetlights and appurtenant work therewith within the area shown on the Map. The Map is hereby approved as the preliminary boundary Map for the Assessment District. The Improvements will be designed and constructed to the standards required by the Pacific Gas and Electric Company ("PG&E") and other utility providers. The Town will inspect the work to ensure conformance to Town standards and specifications where applicable. Once completed, the underground facilities will become the property and responsibility of PG&E and such other utility providers. Each owner of property located within the Assessment District will be responsible for arranging for and paying for work on his property necessary to connect facilities constructed by the public utilities in the public streets to the points of connection on the private property. Conversion of individual service connections on private property is not included in the work to be done by the Assessment District. Failure to convert individual service connections on private property may result in a recommendation to the Town Council that the public utilities be directed to discontinue service to that property or that other actions be taken in accordance with applicable laws to convert such individual service connections. �I Overhead facilities cannot be removed until all overhead service has been discontinued. SECTION 4. The Town Council hereby finds and declares that the public interest and necessity require the acquisition and construction of the Improvements, and any portion of the costs of the Improvements to be assessed against parcels within the Assessment District will be of direct and special benefit to such parcels. The Town Council hereby declares its intention to order the conversion of the existing overhead electric and communication facilities to underground locations, and the acquisition of the Improvements, to make the expenses thereof chargeable upon the area included within the Assessment District, and to form the Assessment District. SECTION 5. The Town Council further declares its intention to levy a special assessment upon the land within the Assessment District in accordance with the respective special and direct benefit to be received by each parcel of land from the Improvements. SECTION 6. The Town Council finds and determines that before ordering the acquisition of the Improvements it shall take proceedings pursuant to the 1913 Act and pursuant to Part 7.5 of the Special Assessment Investigation, Limitation and Majority Protest Act of 1931, Streets and Highways Code Section 2960 et seq. (the"1931 Act'). SECTION 7. The Assessment Engineer is hereby authorized and directed to make and file with the Town Clerk a written report with regard to the 1913 Act (the "Report"), which Report shall comply with the requirements of Section 10204 and Section 2961 of the Streets and Highways Code and Article XIIID of the California Constitution and shall contain the following: (a) Plans and specifications for the Improvements; (b) A general description of works or appliances already installed and any other property necessary or convenient for the operation of the Improvements, if the works, appliances or property are to be acquired as part of the Improvements; (c) An estimate of the cost of the Improvements, and the cost of land, rights of ways, easements, and incidental expenses in connection with the Improvements, including the cost of registering bonds, and a determination of the portion of the costs that represent a general benefit and the portion of the costs that represent a direct and special benefit to each of the parcels within the Assessment District; (d) A diagram showing the exterior boundaries of the Assessment District, the boundaries of any zones within the Assessment District and the lines and dimensions of each parcel of land within the Assessment District as they existed at the time of passage of this resolution (each subdivision to be given a separate number on the diagram); and (e) A proposed assessment of the total amount of the cost and expenses of the proposed Improvements that confer a direct and special benefit upon the several subdivisions of land in the Assessment District in proportion to the estimated special benefits to be received by such subdivision, respectively, from the Improvements (the assessment shall refer to the subdivisions by their respective numbers assigned as provided in (d) above). I i (f) A proposed maximum annual assessment upon each of the several subdivisions of land in the Assessment District to pay costs incurred by the Town and not otherwise reimbursed which result from the administration and collection of assessments or from the administration or registration of any associated bonds and reserve or other related funds. In addition, the Report shall contain the information required by the 1931 Act as set forth in Streets and Highways Code Section 2961(b), including: (a) The total amount, as near as may be determined, of the total principal sum of all unpaid special assessments and special assessments required or proposed to be levied under any completed or pending assessment proceedings, other than the proposed assessments to be levied with respect to the Assessment District, which would require an investigation and report under the 1931 Act against the total area proposed to be assessed; and (b) The total true value, as near as may be determined, of the parcels of land and improvements within the Assessment District which are proposed to be assessed. Total true value may be estimated as the full cash value of the parcels as shown upon the last equalized assessment roll of the county. Alternatively, total true value may be determined by other reasonable means, including, but not limited to, by adjusting the value shown on the last equalized assessment roll to correct for deviations from market value due to Article XIIIA of the California Constitution. f SECTION 8. Notice is hereby given that serial or term bonds to represent unpaid assessments and to bear interest at a rate not to exceed 12 percent per annum will be issued in the manner provided in the 1915 Act to represent the unpaid assessments and the last installment of such bonds shall mature a maximum of 30 years from the second day of September next succeeding 12 months from their date. The principal amount of such bonds maturing or becoming subject to mandatory prior redemption each year shall not be an amount equal to an even annual proportion of the aggregate principal amount of the bonds, but rather (except as specifically otherwise provided by the Town Council in connection with the sale of such bonds), shall be an amount which, when added to the amount of interest payable in each year, will be a sum which is substantially equal in 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. Such bonds shall be serviced and collected by the Town Treasurer or by such registrar and/or paying agent(s) as this Town Council may from time to time designate. SECTION 9. Following the acquisition of the Improvements and the payment of all incidental expenses in connection with the formation of the Assessment District and the issuance of bonds pursuant to the 1915 Act, any surplus remaining in the improvement fund established for the Assessment District shall be used as determined by the Town Council as provided in Section 10427 of the Streets and Highways Code. SECTION 10. The provisions of Part 11.1 of the 1915 Act, providing an alternative procedure for the advance payment of assessments and the calling of bonds, shall apply. SECTION 11. Except as specifically otherwise provided for herein, the Improvements shall L be made and ordered pursuant to the provisions of the 1913 Act. SECTION 12. The Town Council hereby determines that the Town will not obligate itself to advance available funds from its treasury to cure any deficiency which may occur in the bond l redemption fund established for the Assessment District. SECTION 13. The public interest will not be served by allowing the property owners to take any contract to be let for the construction of the Improvements, and no notice of award of contract shall be published. SECTION 14. It is hereby determined that the bonds proposed to be issued in these proceedings may be refunded. Any adjustment to assessments resulting from such refunding shall be done on a pro rata basis as required pursuant to Section 8571.5 of the Streets and Highways Code. Any such refunding shall be pursuant to the provisions of Division 11.5 (commencing with Section 9500) of the Streets and Highways Code, except that, if, following the filing of the report specified in Section 9523 and any subsequent modifications of the report, the Town Council finds that all of the conditions specified in Section 9525 are satisfied and that the adjustments to assessments are on a pro rata basis, the Town Council may approve and confirm the report and any, without further proceedings, authorize, issue, and sell the refunding bonds pursuant to Chapter 3 (commencing with Section 9600) of Division 11.5 of the Streets and Highways Code. Any such refunding bonds shall bear interest at the rate of not to exceed twelve percent (12%) per annum, or such higher rate of interest as may be authorized by applicable law at the time of sale of such bonds; and the last installment of such bonds shall mature on such date as will be determined by the Town Council in the proceedings for such refunding. I SECTION 15. It is in the public interest and more economical to do certain work on private property to eliminate any disparity in level or size between the Improvements and private property and to add the actual cost of such work to the assessment of the property to which such work was done; provided that no work of this nature shall be performed until and unless the written consent of the owner of property is first obtained. SECTION 16. Pursuant to Streets and Highways Code Section 10110, the Town intends to enter into agreements with PG&E and the other utility providers, and any agreement between the Town and PG&E, or any other public utility, for the ownership, management, or control of the underground electric, telephone and cable facilities to be installed in connection with the Improvements,would benefit any current or future residents of the Assessment District. SECTION 17. Pursuant to Section 15302(d) of the Guidelines, the undergrounding of the Improvements will have no significant effect on the environment and is categorically exempt from CEQA. The Town Clerk is directed to cause a notice of exemption to be posted as required by law. SECTION 18. The Town Council hereby waives the requirement in the Policies for the appointment at this time of an underwriter for the Assessment District (the "Underwriter") and determines that delaying the appointment of the Underwriter to a later date in the proceedings will not adversely affect the proceedings as the Town will be engaging a municipal advisor to assist it in estimating the costs of issuing the bonds for the Assessment District. SECTION 19. All inquiries for any and all information relating to these proceedings, including information relating to protest procedures, should be directed to: _ Greg Chanis Town Manager i1505 Tiburon Boulevard Tiburon, California 94920 (415) 435-7373 SECTION 20. This Resolution shall take effect immediately upon its passage. SECTION 21. The Town Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions. PASSED,APPROVED, and ADOPTED on January 4, 2017, by the following vote: AYES: COUNCILMEMBERS: Doyle, Fraser, Fredericks, O;Donnell,Tollini NOES: COUNCILMEMBERS: None (r N � JIM FRASER ATTEST: �TFAN LEA STEFANI, own'Clerk 1