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HomeMy WebLinkAboutFile 1 of 2 - Reservoir Hill - Assessment District 88-1 - Wa � Engineering Report 1 � RESERVOIR HILL � WATER MAIN EXTENSION ASSESSMENT DISTRICT No. 88-1 i 1 ' Prepared for CITY OF NUNTINGTGN BEACH � r Prepared by ' BIaCK &Veatch Engineers-Architects Project No. 14155.300 November 28, 1988 1 tAGENCY: CITY OF HUNTINGTON BEACH PROJECT: ASSESSMENT DISTRICT NO. 88-1 ' (RESERVOIR HILL) TO: CITY COUNCIL ' CITY OF HUNTINGTON BEACH ' ENGINEER'S "REPORT" PURSUANT TO THE PROVISIONS OF SECTION 10204 OF THE ' STREETS AND HIGHWAYS CODE Pursuant to the provisions. of the "Municipal Improvement Act of 1913", ' being Division 12 of the Streets and Highways Code of the State of California, and in accordance with the Resolution of Intention, being Resolution No. 59-26, adopted by the CITY COUNCIL of the CITY OF HUNTINGTON ' BEACH, STATE OF CALIFORNIA, in connection with the proceedings for ASSESSMENT DISTRICT NO. 88-1 (RESERVOIR HILL) (hereinafter referred to as the "Assessment District") , I, as authorized representative of ' BLACK & VEATCH, the duly appointed ENGINEER OF WORK, submit herewith the "Report" for the Assessment District, consisting of five (5) parts as follows: ' PART I Plans and specifications for the proposed improvements are filed herewith and made a part hereof. Said plans and specifications are on file in the Office of the City Clerk. PART II An estimate of the cost of the proposed improvements, including incidental costs and expenses in connection therewith, is as set forth on the lists ' thereof, attached hereto, and are on file in the Office of the City Clerk. PART III ' A proposed assessment of the total amount of the costs and expenses of the proposed improvements upon the several subdivisions of land within the Assessment District, in proportion to the estimated benefits to be received ' by such subdivisions, from said improvements, is _set forth upon the assessment roll filed herewith and made a part hereof. ' PART IV A diagram showing the Assessment District, the boundaries and the ' dimensions of the subdivisions of land within said Assessment District, as the same existed at the time of the passage of the Resolution of Intention, is filed herewith and made a part hereof, and part of the assessment. ' 14155.300/2.4 1 1 ' PART V Description of the work for the proposed improvements and description of ' all rights-of-way, easements and lands to be acquired, if necessary. ' Dated this 24th day of October , 1988. ' BLACK & VEATCH ' ENGINEER OF WORK CITY OF HUNTINGTON BEACH STATE OF CALIFORNIA PRELIMINARY APPROVAL BY THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH, CALIFORNIA, ON THE 24th DAY OF October , 1988. CITY CLERK CITY OF HUNTINGTONYBEACH- STATE OF CALIFORNIA-` FINAL APPROVAL BY THE CITY COUNCIL OF THE CITY OF HUNTINGTON --BEACH, CALIFORNIA, ON THE 5th DAY OF December ,• 1988. ' CITY CLERK CITY OF HUNTINGTON-BEACH STATE OF CALIFORNIA: t 1 ' 14155.300/2.4 2 1 ' ENGINEER'S "REPORT" ' PART I PLANS AND SPECIFICATIONS The plans and specifications for this Assessment District are referenced ' herein and incorporated as if attached and a part of this "Report". 1 1 1 14155.300/2.4 3 ' ENGINEER'S "REPORT" PART II ' COST ESTIMATE ' I. PUBLIC WORKS OF CONSTRUCTION: ESTIMATED COST ' BID ITEMS QUANTITY PRELIMINARY CONFIRMED 1. 18-inch PVC pipe, SDR 18 3,954 L.F. 336,090 321,504 ' 2. 16-inch PVC pipe, SDR 18 5,214 L.F. 354,552 374,345 3. 12-inch PVC pipe, SDR 18 3,492 L.F. 178,092 220,505 4. 20-inch Butterfly Valve. . 1 ea. 4,500 3,500 ' 5. 18-inch Butterfly Valves 6 ea. 24,000 20,400 6. 16-inch Butterfly Valves 8 ea. 28,800 20,800 7. 12-inch Gate Valves 15 ea. 30,000 16,500 ' 8. 8-inch Gate Valves 9 ea. 8,100 6,300 9. 6-inch Gate Valves 3 ea. 1,500 1,800 10. 4-inch Blow-off Assembly 9 ea. 22,500 15,300 11. 2-inch Air-Vacuum Relief 22 ea. 48,400 46,200 ' 12. 16-inch Check Valve 1 ea. 3,000 4,000 13. 12-inch Check Valve 1 ea. 2,200 3,000 14. 8-inch Check Valve 2 ea. 2,200 4,000 ' 15. through 35. Connection Details Lump Sum 69,865 80,700 36. 4-inch Blow-off (Detail V) 14 ea. 49,000 39,200 37. Traffic Control Lump Sum 15,000 6,000 38. Sheeting and Shoring Lump Sum 15,000 1,700 SUBTOTAL, PUBLIC WORKS OF CONSTRUCTION: $ 1,192,799 $ 1,185,754 II. WORK BY OTHERS (CONSTRUCTION) : $ 0 $ 0 SUBTOTAL, WORK BY OTHERS (CONSTRUCTION) $ 0 $ 0 TOTAL CONSTRUCTION (ITEMS I AND II) $ 1,192,799 $ 1,185,754 ' CONSTRUCTION CONTINGENCY $ 119,280 $ 118,575 TOTAL CONSTRUCTION AND CONTINGENCY $ 1,312,079 $ 1,304,329 ' III. INCIDENTAL EXPENSES: ' Design Engineering $ 78,000 $ 78,000 Agency Engineering 0 0 Preliminary survey 22,000 22,000 Preliminary soils engineering 15,000 15,000 ' Assessment engineering A. Debt Limit Report 7,000 7,000 B. Engineer's Report 46,000 46,000 14155.300/2.4 4 ' ESTIMATED COST PRELIMINARY CONFIRMED ' Special Counsel $ 20,000 $ 20,000 Financial Consultant 15,000 15,000 Right-of-Way Engineering 8,000 0 Appraisals 0 0 Acquisition of land 0 0 Agency Administration 5,000 0 Plan checking 8,000 0 Construction inspection 20,000 0 Construction survey In Bid In Bid Construction administration 12,000 12,000 ' Compaction test 25,000 25,000 Printing and advertising, notices, etc. 2,000 2,000 Fee for California Debt Advisory Commission 0 0 Bond printing and servicing 2,000 22000 ' Incidental contingency 28,952.21 22,035.39 SUBTOTAL INCIDENTAL COSTS $ 313,952.21 $ 266,035.39 ' Bond discount (3%) $ 48,781 $ 47,111 Reserve fund (6%) 97,562 94,222 ' Capitalized interest (4%) 65,041 622814 TOTAL INCIDENTALS AND FINANCING COSTS $ 5252336.21 $ 470,182.39 ' TOTAL CONSTRUCTION AND INCIDENTALS $1,837,415.21 $1,774,511.39 IV. CASH CONTRIBUTIONS $ 0 $ 0 ' SUBTOTAL CONTRIBUTIONS $ 0 $ 0 ' BALANCE TO ASSESSMENT $1,837,415.21 $1,774,511.39 1 1 14155.300/2.4 5 1 ENGINEER'S "REPORT" ' PART III ASSESSMENT ROLL WHEREAS, on September 19 1988, the CITY COUNCIL of the CITY OF HUNTINGTON BEACH, CALIFORNIA, did, pursuant to the provisions for the "Municipal Improvement ' Act of 1913", being Division 12 of the Streets and Highways Code of the State of California, and as amended, adopt its Resolution of Intention No. 59-26, for the construction of certain public improvements, together with appurtenances and ' appurtenant work in connection therewith, in a special assessment district known and designated as ASSESSMENT DISTRICT NO. 88-1 (RESERVOIR HILL) (hereinafter referred to as the "Assessment District") ; and, ' WHEREAS, said Resolution of Intention, as required by law, did direct the appointed Superintendent of Streets to make and file a "Report", consisting of the following: ' a. Plans; b. Specifications; c. Cost estimate; d. Assessment Diagram showing the Assessment District and the subdivisions of land contained therein; e. A proposed assessment of the costs and expenses of the works of ' improvement levied upon the parcels and lots of land within the boundaries of the Assessment District. ' For particulars, reference is made to the Resolution of Intention as previously adopted. NOW, THEREFORE, I, as authorized representative of BLACK & VEATCH, the duly ' appointed ENGINEER OF WORK, pursuant to the "Municipal Improvement Act of 1913", do hereby submit the following: ' 1. I, pursuant to the provisions of law and the Resolution of Intention, have assessed the costs and expenses of the works of improvement to be performed in the Assessment District upon the parcels of land in the ' Assessment District benefited thereby in direct proportion and relation to the estimated benefits to be received by each of said parcels. For particulars as to the identification of said parcels, reference is made to the Assessment Diagram, a copy of which is attached hereto. 2. As required by law, a Diagram is hereto attached, showing the Assessment District, as well as the boundaries and dimensions of the ' respective parcels and subdivisions of land within said District as the same existed at the time of the passage of said Resolution of Intention, each of which subdivisions of land or parcels or lots respectively ' have been given a separate number upon said Diagram and in said Assessment Roll. ' 14155.300/2.4 6 ' 3. The subdivisions and parcels of land the numbers therein as shown on the respective Assessment Diagram as attached hereto correspond with the numbers ' as appearing on the Assessment Roll as contained herein. 4. NOTICE IS HEREBY GIVEN that bonds will be issued in accordance with ' Division 10 of the Streets and Highways Code of the State of California (the "Improvement Bond Act of 1915") , to represent all unpaid assessments, and the last installment of said bonds shall mature a maximum of nineteen (19) YEARS from the 2nd day of September next succeeding twelve (12) months from their date. Said bonds shall bear interest at a rate not to exceed the current legal maximum rate of 12% per annum. ' 5. By virtue of the authority contained in said "Municipal Improvement Act of 1913", and by further direction and order of the legislative body, I hereby make the following Assessment to cover the costs and expenses of the works of improvement for the Assessment District based on the costs and expenses as set forth below: ' AS PRELIMI- NARILY APPROVED CONFIRMED ' Estimated Cost of Construction: $1,312,079.00 $1,304,329.00 Estimated Incidental Costs and Expenses: $ 525,336.21 $ 470,182.39 ' Estimated Total Cost: $1,837,415.21 $1,774,511.39 Estimated Contribution: $ 0 $ 0 ' Balance to Assessment: $1,837,415.21 $1,774,511.39 ' For particulars as to the individual assessments and their descriptions, reference is made to the Exhibit attached hereto. ' 6. The Method of Spread Assessment is as set forth in Exhibit "A", which is attached hereto, referenced and so incorporated. ' DATED: October 24 , 1988; Modified December 5 1988. ' BLACK & VEATCH ' ENGINEER OF WORK CITY OF HUNTINGTON BEACH STATE OF CALIFORNIA 14155.300/2.4 7 ' EXHIBIT "A" ' METHOD AND FORMULA OF ASSESSMENT SPREAD ' The law requires and the statutes provide that assessments, as levied pur- suant to the provisions of the "Municipal Improvement Act of 1913", must be based on the benefit that the properties receive from the works of improve- ment. The statute does not specify the method or formula that should be used in any special assessment district proceedings. The responsibility ' rests with the Assessment Engineer, who is retained for the purpose of making an analysis of the facts and determining the correct apportionment of the assessment obligation. For these proceedings, the City has retained the services of Black & Veatch. (See attached Exhibit for a statement of ' qualifications and experience) . The Assessment Engineer then makes his recommendation at the public hearing ' on the Assessment District, and the final authority and action rests with the City after hearing all testimony and evidence presented at that public hearing. Upon the conclusion of the public hearing, the City must make the final action in determining whether or not the assessment spread has been ' made in direct proportion to the benefits received. The Reservoir Hill area consists predominately of currently undeveloped properties which are located in an area of the City that lies generally ' above elevation 60. An existing booster pressure zone is located within this area. This booster pressure zone will be expanded by formation of the ' Assessment District. The existing booster pressure zone consists of the Seacliff Estates Development and the Seacliff Village Shopping Center. Water facilities to serve the existing booster pressure zone are already in place and have been paid for by the appropriate developers. These present ' water customers located within the existing booster pressure zone will receive no direct benefit from the project and will not be assessed for the improvements. ' The Assessment District will be the area generally bounded on the north by Ellis Avenue, on the east by Huntington Street, on the south by Yorktown, ' and on the west by a line parallel to and approximately 1,000 feet west of Edwards Street. Existing customers who will be served by the expanded booster pressure zone will realize an improved level of service in terms of capacity and pressure, bringing them up to the level of service generally provided to all the City's water customers. First of all, it is necessary to identify the benefit that the public ' improvement will render to the properties within the boundaries of the Assessment District. Properties located within the Assessment District will receive the benefit of having access to a public water supply of adequate capacity and pressure. Two distinguishable types of benefits may ' be realized by properties in the Assessment District: capacity and ' 14155.300/2.4 8 ' distribution. All properties in the Assessment District will be assured of adequate capacity furnished by the grid or network of new and existing ' water mains comprising the higher pressure zone. Those properties which are adjacent to, or which "front", new water mains, will receive a further benefit of distribution. A distribution benefit results from being able to ' make a direct service connection tap to a new water main located in the higher pressure zone. Exemptions from the Assessment District are granted to those- properties which now have adequate water service and which meet the following development criteria: ' Parcels fully developed in conformance with the City's general plan and zoning ordinances. Such parcels are normally characterized by ' street improvements, permanent structures, asphalt parking lots, and landscaping, all of which satisfy current local code requirements. ' Existing water customers located in the higher pressure zone, but who are now located in lower pressure zone, would receive the benefit of increased capacity and pressure, but not a distribution benefit. These customers are only assessed for a capacity benefit. ' In further making the analysis, it is necessary that the property owners receive a special and direct benefit distinguished from that of the general ' public. Only those properties located in the higher pressure zone, which includes land areas generally above an elevation of 60 feet above mean sea level, and which can be logically served from either the new water mains or from future extensions of those mains, benefit from this project. Other ' properties located outside of the Assessment District in the City of Huntington Beach will receive no benefits from the project. Similarly, existing properties located in the higher pressure zones which are already ' served by the existing smaller booster pressure zone, such as the Seacliff Village Shopping Center and adjacent residential developments will receive no added benefits from the project. ' An in-depth analysis was made and two factors are being used in the final method of spread and assessment. The proposed assessment formula includes two cost components: one for capacity and one for distribution. Those ' properties which front new water mains in the higher pressure zone will be assessed for capacity and distribution. Those properties which do not front new mains will only be assessed for capacity. The capacity charge is ' based upon total acreage in the Assessment District, and each property will be assessed at a flat unit cost per acre. The distribution assessment is based upon the front footage of each property which borders a new water ' main. The distribution assessment is based upon an equivalent cost for installing a distribution main along the affected properties. A typical distribution main size would be 6 to 8 inches in diameter. The installed cost of a 6 to 8 inch diameter water main and appurtenances is ' approximately $30 per foot of length. Since a water distribution main normally serves properties on both sides of the street, the proposed distribution assessment is one-half times $30 per foot of length, which is ' $15 per foot of front footage. For properties located on street corners, the distribution assessment is based upon the average front footage along the two streets. The capacity charge required to fund the balance of the project costs is $2,513 per acre. ' 14155.300/2.4 9 In conclusion, it is my opinion that the assessments for the above referenced Assessment District have been spread in direct accordance with the benefits that each parcel receives from the works of improvement. ' DATED: October 24 1988 BLACK & VEATCH ENGINEER OF 'ORIC ' CITY OF HUNTINGTON BEACH STATE OF CALIFORNIA I, CONNIE BROCKWAY, as CITY CLERK of the CITY OF HUNTINGTON BEACH, CALIFORNIA, do hereby certify that the foregoing Assessment, together with the Diagram attached thereto, was filed in my office on the 24th day of ' October 1988. ' CITY CLERK CITY OF HUNTINGTON BEACH STATE OF CALIFORNIA I, CONNIE BROCKWAY, as CITY CLERK of the CITY OF HUNTINGTON BEACH, ' CALIFORNIA, do hereby certify that the foregoing Assessment, together with the Diagram attached thereto, was approved and confirmed by the City Council of said City on the 5th day of December 1988. CITY CLERK ' CITY OF HUNTINGTON BEACH STATE OF CALIFORNIA ' I, LES EVANS, as SUPERINTENDENT OF STREETS of the CITY OF HUNTINGTON BEACH, CALIFORNIA, do hereby certify that the foregoing Assessment, together with ' the Diagram attached thereto, was recorded in my office on the 7th day of December , 1988. ' SUPERINTENDENT OF STREETS CITY OF HUNTINGTON BEACH ' STATE OF CALIFORNIA 14155.300/2.4 10 Page No . 1 ' 12/02/88 ASSESSMENT ASSESSOR' S PROPERTY PRELIMINARILY CONFIRMED PAYMENT ' PARCEL N0, LEGAL DESCRIPTION APPROVED & RECORDED 02301012 SEC 2 T 6 R 11 POR NW1 /4 14486 . 21 14148 . 11 ' 02301013 SEC 2 T 6 R 11 POR NW1 /4 53586 . 18 51485 . 13 0231812.9 T 6 R 11 SEC 3 POR OF SEC 165457 . 60 158821 . 60 02325141 SEC 3 T 6 R 11 POR NE1 /4 6675 . 90 6408 . 15 ' 11001556 SEC 34 T 5 R 11 POR SW1 /4 94928 . 12 91899 . 92 11001557 SEC 34 T 5 R 11 POR SW 1 /4 40786 . 96 39241 . 36 11001559 SEC 34 T 5 R 11 POR SW1 /4 18326 .00 17591 .00 ' 11019001 SEC 34 T 5 R 11 N1 /2 NW 11938. 08 11459. 28 1 /4 NW1 /4 SE1 /4 11019002 SEC 34 T 5 R 11 N1 /2 NE1 /4 6361 . 74 6106 . 59 NW1 /4 SE1 /4 ' 11019003 SEC 34 T 5 R 11 W 1 /2 S1 /2 3089 . 24 2965 . 34 NW1 /4 NW1 /4 SE1/4 11019004 SEC 34 T 5 R 11 W1 /2 NE1 /4 3272. 50 3141 . 25 NW1 /4 SE1 /4 ' 11019005 SEC 34 T 5 R 11 W1 /2 NE1 /4 12723 . 48 12213 . 18 NW1 /4 SE1 /4 11019006 FAIRVIEW ADD TO HUN.TINGTON 2591 . 82 2487 . 87 BEACH LOT A & LOTS B/C 11019101 FAIRVIEW ADD TO HUNTINGTON 164 . 93 158. 32 BEACH LOT 1 11019102 FAIRVIEW ADD TO HUNTINGTON 164. 93 158. 32 BEACH LOT 2 11019103 FAIRVIEW ADD TO HUNTINGTON 340 . 34 326 . 69 BEACH LOT 3 ' 11019104 FAIRVIEW ADD TO HUNTINGTON 539 . 93 533 . 32 BEACH LOT 5 11019105 FAIRVIEW ADD TO HUNTINGTON 164. 93 158. 32 BEACH LOT 6 11019106 FAIRVIEW ADD TO HUNTINGTON 164 . 93 158. 32 BEACH LOT 7 ' 11019108 FAIRVIEW ADD TO HUNTINGTON 164. 93 158 . 32 BEACH LOT 9 11019109 FAIRVIEW ADD TO HUNTINGTON 164. 93 158. 32 BEACH LOT 10 11019112 FAIRVIEW ADD TO HUNTINGTON 164. 93 158. 32 BEACH LOT 24 11019113 FAIRVIEW ADD TO HUNTINGTON 164. 93 158. 32 BEACH LOT 23 11019114 FAIRVIEW ADD TO HUNTINGTON 164. 93 158 . 32 BEACH LOT 22 11019115 FAIRVIEW ADD TO HUNTINGTON 340 . 34 326 . 69 BEACH LOT 20 AND 21 11019116 FAIRVIEW ADD TO HUNTINGTON 164 . 93 158. 32 BEACH LOT 19 11 fage No . 2 2/02/88 ASSESSMENT ' ASSESSOR' S PROPERTY PRELIMINARILY CONFIRMED PAYMENT PARCEL NO . LEGAL DESCRIPTION APPROVED & RECORDED 11019117 FAIRVIEW ADD TO HUNTINGTON 164 . 93 158 .32 BEACH LOT 18 ' 11019118 FAIRVIEW ADD TO HUNTINGTON 340 . 34 326 . 69 BEACH LOT 16 AND 17 11019120 FAIRVIEW ADD TO HUNTINGTON 164 . 93 158. 32 BEACH LOT 14 11019121 FAIRVIEW ADD TO HUNTINGTON 164. 93 158. 32 BEACH LOT 13 ' 11019201 FAIRVIEW ADD TO HUNTINGTON 340. 34 326. 69 BEACH LOT 25 AND 26 11019203 FAIRVIEW ADD TO HUNTINGTON 164 . 93 158 . 32 BEACH LOT 28 ' 11019206 FAIRVIEW ADD TO HUNTINGTON 164 . 93 158. 32 BEACH LOT 31 ' 11019207 FAIRVIEW ADD TO HUNTINGTON 164. 93 158 . 32 BEACH LOT 32 11019208 FAIRVIEW ADD TO HUNTINGTON 164 . 93 158. 32 BEACH LOT 33 ' 11019209 FAIRVIEW ADD TO HUNTINGTON 164 . 93 158. 32 BEACH LOT 34 11019211 FAIRVIEW ADD TO HUNTINGTON 164. 93 158. 32 BEACH LOT 36 11019212 FAIRVIEW ADD TO HUNTINGTON 164 . 93 158. 32 BEACH LOT 48 11019214 FAIRVIEW ADD TO 497. 42 477. 47 ' HUNTINGTONBEACH LOT 44 AND LOTS 45 & 46 11019216 FAIRVIEW ADD TO HUNTINGTON 164 . 93 158. 32 BEACH LOT 42 11019218 FAIRVIEW ADD TO HUNTINGTON 164 . 93 158 . 32 BEACH LOT 40 11019219 FAIRVIEW ADD TO HUNTINGTON 164. 93 158 . 32 BEACH LOT 39 11019301 FAIRVIEW ADD TO HUNTINGTON 164. 93 158 . 32 BEACH LOT 49 11019302 FAIRVIEW ADD TO HUNTINGTON 164. 93 158. 32 BEACH LOT 50 lt019303 FAIRVIEW ADD TO HUNTINGTON 164 . 93 158. 32 BEACH LOT 51 11019304 FAIRVIEW ADD TO HUNTINGTON 164 . 93 158 . 32 BEACH LOT 52 1 11019305 FAIRVIEW ADD TO HUNTINGTON 164 . 93 158 . 32 BEACH LOT 53 11019307 FAIRVIEW ADD TO HUNTINGTON 340. 34 326 . 69 BEACH LOT 55 AND 56 12 1 Page No . 3 12/02/88 ASSESSMENT ASSESSOR' S PROPERTY PRELIMINARILY CONFIRMED PAYMENT ' PARCEL NO , LEGAL DESCRIPTION APPROVED & RECORDED 11020001 SEC 34 T 5 R 11 NW1 /4 5576 . 34 5352 . 69 BW1/4 BE1 /4 SE1 /4 11020002 SEC 34 T 5 R 11 SW1 /4 6545 . 00 6282 . 50 NW1 /4 NE1 /4 SE1 /4 ' 11020003 SEC 34 T 5 R 11 E1 /2 NW1 /4 12514. 04 12012 . 14 NE1 /4 SE1 /4 11020004 SEC 34 T 5 R 11 NE1 /4 6545 . 00 6282 . 50 SW1 /4 NE1 /4 SE1 /4 ' 11020005 SEC 34 T 5 R 11 W1 /2 SW1 /4 13090 . 00 12565 . 00 NE1 /4 SE1 /4 11020010 SEC 34 T 5 R 11 N1 /2 N1 /2 6361 . 74 6106 . 59 SW1 /4 NE1 /4 SE1 /4 11020011 SEC 34 T 5 R 11 S1 /2 N1 /2 6361 . 74 6106 . 59 SW1 /4 NW1 /4 SE1 /4 ' 11020013 SEC 34 T 5 R 11 N1 /2 NW1 /4 17673 . 48 17163 . 18 SW1/4 SE1/4 11020014 SEC 34 T 5 R 11 S1 /2 NW1 /4 17673 . 48 17163 . 18 SW1 /4 SE1 /4 ' 11020015 SEC 34 T 5 R 11 W1/2 NE1 /4 13090 . 00 12565 . 00 SW1/4 SE1/4 11020016 SEC 34 T 5 R 11 E1 /2 NE1 /4 13090 . 00 12565 . 00 SW1/4 SE1 /4 ' 11020017 SEC 34 T 5 R 11 S E 1 /4 62431 . 82 60490 . 37 SE1 /4 SE1 /4 AND SW1 /4 SE1 /4 SE1 /4 ' 11020018 SEC 34 T 5 R 11 E1 /4 S E 1 /4 17516 . 40 17012 . 40 SW1 /4 SE1 /4 11020019 SEC 34 T 5 R 11 El /4 W1 /2 8758. 20 8506 . 20 SE1 /4 SW1 /4 SE1 /4 11020020 SEC 34 T 5 R 11 W1/2 W1 /2 8758. 20 8506 . 20 SE1 /4 SW1 /4 SE1 /4 ' 11020021 SEC 34 T 5 R 11 E1 /2 SW1 /4 17516 . 40 17012 . 40 SW1 /4 SE1 /4 11020022 SEC 34 T 5 R 11 W1 /2 SW1 /4 18960 . 38 18486 . 83 SW1 /4 SE1 /4 11020023 SEC 34 T 5 R 11 SE1 /4 6545 . 00 6282 . 50 SW1/4 NE1 /4 SE1 /4 11020029 SEC 3 T 6 R 11 POR NE1 /4 222163 . 80 214383 . 30 11021001 SEC 34 T 5 R 11 N1 /2 NE1 /2 14586 . 38 14175 . 83 NE1 /2 SE1 /2 11021002 SEC 34 T 5 R 11 N 99 FT 4733 . 74 4583 . 59 S1 /2 NE1 /4 NE1 /4 SE1 /4 11021003 SEC 34 T 5 R 11 N 33 FT S 1411 . 30 1374 . 55 231 FT E 495 FT 21 /2 NE1 /4 NE 1 /4 1 ' 13 fage No . 4 2/02/88 ' ASSESSMENT 'ASSESSOR' S PROPERTY PRELIMINARILY CONFIRMED PAYMENT PARCEL NO . LEGAL DESCRIPTION APPROVED & RECORDED 1 11021004 SEC 34 T 5 R 11 N33FT 340 . 34 326 . 69 S231FT W165FT S1 /2 NE1 /2 S E 1 /4 11021006 SEC 34 T 5 R 11 N33FT 1751 . 64 1701 . 24 ' S143FT S1 /2 NE1 /4 NE1 /4 SE1 /4 11021007 SEC 34 T 5 R 11 POR SE1 /4 2335 . 52 2268 . 32 11021008 SEC 34 T 5 R 11 S66FT, 3503 . 28 3402 . 48 S1 /2 NE1 /4 NE1 /4 SEl /4 111021009 SEC 34 T 5 R 11 N1 /2 SE1 /4 17464 . 04 16962 . 14 NE1 /4 SE1/4 , 11021010 T 5 R 11 SEC 34 POR SE1 /4 2880. 13 2797 . 70 11021011 T 5 R 11 SEC 34 POR SE1 /4 859 . 03 857 . 67 11021101 TR 62 LOT 60 542 . 55 535 . 83 111021102 TR 62 LOT 59 542 .55 535 . 83 11021103 TR 62 LOTS 57/58 1085 . 10 1071 . 66 11021104 TR 62 LOT 56 542 . 55 535 . 83 11021105 TR 62 LOTS 49 TO 55 INC 3803 . 10 3755 . 85 11021106 TR 62 LOTS 37 TO 40 INC 680 . 68 653 . 38 11021107 TR 62 LOT 41 680. 68 653 . 38 11021108 TR 62 LOT 42 167 . 55 160 . 83 11021109 TR 62 LOT 43 167 . 55 160 . 83 11021110 TR 62 LOT 44 167 .55 160 . 83 11021111 TR 62 LOT 45 167 . 55 160 . 83 11021112 TR 62 LOT 46 167 . 55 160 . 83 111021113 TR 62 LOT 47 167 . 55 160 . 83 11021114 TR 62 LOT A48 167 .55 160 . 83 11021201 TR 62 LOT 36 167 . 55 160 . 83 1 11021202 TR 62 LOT 35 167 . 55 160 . 83 11021203 TR 62 LOT 34 167. 55 160 . 83 11021204 TR 62 LOT 33 167 .55 160 . 83 111021205 TR62 LOT 32 167 . 55 160 . 83 11021206 TR 62 LOT 31 167 . 55 160 .83 11021207 TR 62 LOT 30 167 . 55 160 . 83 11021208 TR 62 LOT 29 167 . 55 160 . 83 111021209 TR 62 LOT 28 167. 55 160 . 83 11021210 TR 62 LOT 27 167 .55 160 . 83 11021211 TR62 LOT 26 167. 55 160. 83 ,11021212 TR 62 LOT 25 167 . 55 160 .83 11021214 TR 62 LOT 13 167. 55 160 . 83 11021215 TR 62 LOTS 14/ 15/ 16 497 . 42 477 . 47 11021216 TR 62 LOT 17 167 . 55 160 . 83 111021217 TR 62 LOT 18 167 . 55 160 . 83 11021218 TR 62 LOT 19 167. 55 160. 83 11021219 TR62 LOT 20 167 . 55 160 . 83 14 1 Page No . 5 ' 12/02/88 ' ASSESSMENT 'ASSESSOR' S PROPERTY PRELIMINARILY CONFIRMED PAYMENT PARCEL NO. LEGAL DESCRIPTION APPROVED & RECORDED 11021220 TR 62 LOT 21 167 . 55 160 . 83 11021221 TR 62 LOTS 22/23 340. 34 326 . 69 11021222 TR 62 , LOT 24 167 . 55 160 . 83 11021301 TR 62 LOT 12 167 . 55 160. 83 11021302 TR 62 LOT 11 167 . 55 160 . 83 ' 11021303 TR 62 LOT 10 167 . 55 160 . 83 11021304 TR 62 LOT 9 167 . 55 160 . 83 11021305 TR 62 LOT 8 167. 55 160. 83 ' 11021306 TR 62 LOT 7 167 . 55 160 . 83 11021307 TR 62 LOT 6 167 . 55 160 . 83 11021308 TR 62 LOT 5 167 .55 160 . 83 ' 11021309 TR 62 LOT 4 167. 55 160 . 83 11021310 TR 62 LOT 3 167 .55 160 . 83 11021311 TR 62 LOT 2 167. 55 160 . 83 11021312 TR 62 LOT 1 167 . 55 160 . 83 ' 11022002 SEC 34 T 5 R 11 N1 /2 NE1 /4 17464. 04 16962 . 14 SE1 /4 SE1 /4 11022003 SEC 34 T 5 R 11 S1 /2 NE1 /4 10592 . 20 10287 . 70 SE1 /4 SE1 /4 -EX S 130 11022004 SEC 34 T 5 R 11 POR SE1 /4 6871 . 84 6674 . 44 11022005 T 5 R 11 SEC 34 POR SE1 /4 13090 .00 12565 . 00 ' SURFACE AND 500 FT SUBSURFACE VERTICALLY 11022101 TR 306 LOT 19 602. 14 577 . 99 11022102 TR 306 LOTS 1/2 392 . 70 376 . 95 11022103 TR 306 LOT 3 191 . 11 183 . 45 11022104 TR 306 LOT 4 191 . 11 183 . 45 11022105 TR 306 LOT 5 191 . 11 183 . 45 ' 11022106 TR 306 LOT 6 191 . 11 183 . 45 11022107 TR 306 LOT 7 191 . 11 183 . 45 11022108 TR 306 LOT 8 191 . 11 183 . 45 11022109 TR 306 LOT 9 191 . 11 183 . 45 11022110 TR 306 LOT 10 191 . 11 183 . 45 11022111 TR 306 LOT 11 191 . 11 183 . 45 11022112 TR 306 LOT 12 191 . 11 183 . 45 11022113 TR 306 LOT 13 191 . 11 183 . 45 11022114 TR 306 LOT 14 191 . 11 183 . 45 11022115 TR 306 LOT 15 191 . 11 183 . 45 11022117 TR 306 LOT 17 191 . 11 183 . 45 11022118 TR 306 LOT 18 191 . 11 183 . 45 11022119 TR 306 LOT 19 191 . 11 183 . 45 111022120 TR 306 LOT 20 191 . 11 183 . 45 11022121 TR306 LOT 21 191 . 11 183 . 45 11022122 TR 306 LOT 22 191 . 11 183 . 45 11022123 TR 306 LOT 23 191 . 11 183 . 45 15 1 Page No . 6 ' 12/02/88 ' ASSESSMENT tASSESSOR' S PROPERTY PRELIMINARILY CONFIRMED PAYMENT PARCEL NO . LEGAL DESCRIPTION APPROVED & RECORDED 1 11022124 TR 306 LOT 24 191 . 11 183 . 45 11022125 TR 306 LOT 25 191 . 11 183 . 45 11022126 TR 306 LOT 26 191 . 11 183 . 45 11022201 TR 306 LOT 27 191 . 11 183 . 45 ' 11022202 TR 306 LOT 28 191 . 11 183 . 45 11022204 TR 306 LOTS 31 /32 392. 70 376 . 95 11022205 TR 306 LOT 33 191 . 11 183 . 45 11022206 TR 306 LOTS 34/35 392 . 70 376 . 95 ' 11022207 TR 306 LOT 36 191 . 11 183 . 45 11022208 TR 306 LOT 37 191 . 11 183 . 45 11022209 TR 306 LOTS 38/39 392 . 70 376 . 95 ' 11022210 TR 306 LOTS 40 TO 43 INC 759 . 22 728 . 77 11022211 TR 306 LOTS 44/45/46 575 . 96 552 . 86 11022213 TR 306 LOT 49 191 . 11 183 . 45 1-11022214 TR 306 LOT 50 191 . 11 183 . 45 11022216 TR 306 LOT 52 191 . 11 183 . 45 11022218 TR 306 LOT 54 191 . 11 183 . 45 11022219 TR 306 LOT 55 191 . 11 183 . 45 ' 11022220 TR 306 LOTS 56/57/58 575 . 96 552 . 86 11022221 TR 306 LOT 59 191 . 11 183 . 45 11022222 TR 306 LOT 60 191 . 11 183 . 45 ' 11022223 TR 306 LOT 61 191 . 11 183 . 45 11022224 TR 306 LOT 62 191 . 11 183 . 45 11022226 TR306 LOT 64 191 . 11 183 . 45 11022227 TR 306 LOT 65 191 . 11 183 . 45 ' 11022228 TR 306 LOT 63 191 . 11 183 . 45 11022229 TR 306 LOT 47 191 . 11 183 . 45 11022230 TR 306 LOT 48 191 . 11 183 . 45 ' 11023008 T 6 R 11 SEC 3 POR N1 /4 76183 . 80 73128 . 30 AND T 6 R 11 SEC 4 POR NE1 /4 ' 11107202 SEC 35 T 5 R 11 SELY 1 AC 2251 . 48 2161 . 18 NET1 /4 NE1 /4 SW1/4 11107203 SEC 35 T 5 R 11 SE1 /4 340. 34 326 . 69 NE1 /4 SW1 /4 -BET CO RD & RR R/W 11107204 SEC 35 T 5 R 11 POR SW1 /4 161549 . 88 155810 . 58 11107205 SEC 35 T 5 R 11 S 10 .09 AC 24661 . 56 23672 . 46 t E 14. 74 AC N 21 . 49 AC NE 1 /4 SW1 /4 -WLY OF CO RD- 11107207 SEC 35 T 5 R 11 W 6 . 75 AC 10053 . 12 9649 . 92 ' N 27 . 38 AC NE1 /4 SW1 /4 -EX W 169 FT N 46 0 FT & E 170 FT S 300 FT- 11107208 SEC 35 T 5 R 11 W 160 FT N 4241 . 16 4071 . 06 ' 460 FT NE1 /4 SW1 /4 16 fage No . 7 2/02/88 ' ASSESSMENT 'ASSESSOR' S PROPERTY PRELIMINARI N PRELIMINARILY CONFIRMED PAYMENT PARCEL NO . LEGAL DESCRIPTION APPROVED & RECORDED 11107209 SEC 35 T 5 R 11 E 170 FT W 3063 . 06 2940 . 21 ' 320 FT S 300 FT N 920. 5 FT NE 1 /4 SW1 /4 11107210 SEC 35 T 5 R 11 N1 /2 SE1 /4 12252. 24 11760 . 84 ' NW1 /4 SW1 /4 -EX S 70 FT E 200 FT 11107211 SEC 35 T 5 R 11 E1 /2 NE1 /4 12723 . 48 12213 . 18 NW1 /4 SW1/4 ' 11107212 SEC 35 T 5 R 11 S1 /2 NE1 /4 12723. 48 12213 . 18 NW1 /4 SW1 /4 11107214 SEC 35 T 5 R 11 S1 /2 NW1 /4 17464. 04 16962 . 14 NW1 /4 SW1 /4 11107215 SEC 35 T 5 R 11 N1 /2 SW 14 17464 . 04 16962 . 14 NW 14 SW1 /4 ' 11107217 SEC 35 T 5 Rll N300FT 7196 . 54 7088 . 39 W180FT S1 /2 S1/2 NW1 /4 SW/4 11107218 SEC 35 T 5 R 11 N112 NW1 /4 15888. 30 15431 . 55 NW1 /4 SW1 /4 -EX ST 11107220 SEC 35 T 5 R 11 3 . 91 AC 10236. 38 9825 . 83 M/L NE1 /4 SW1/4 11107221 SEC 35 T 5 R 11 POR NW1 /4 14168 . 32 13618. 12 SW1 /4 AS SECS IN DD -85717/402 OR- 11107222 SEC 35 T 5 R 11 2 AC M/L 5236. 00 5026 . 00 IN NW1 /4 SW1/4 11107223 SEC 35 T 5 R 11 POR SW1/4 8587. 04 8242. 64 11111001 GARFIELD STREET ADD BLK E 2618 .00 2513 . 00 LOT 18 ' 11111002 GARFIELD STREET ADD BLK E 2618. 00 2513 . 00 LOT 17 ' 11111003 GARFIELD STREET ADD LOT 15 2618. 00 2513 . 00 BLK E (AND N 120 FT LOT 14 BLK E 11111004 GARFIELD STREET ADD LOT 15 4790. 94 4598. 79 ' BLK E (AND N 120 FT LOT 14 BLK E 11111005 GARFIELD STREET ADD LOT 13 2565 . 64 2462 . 74 ' BLK E(AND S 25 FT LOT 14 BLK E 11111007 GARFIELD STREET ADD LOT 10 3559 . 00 3506 . 50 ' BLK E (AND LOTS 11 & 12 BLK E 11111009 GARFIELD STREET ADD LOT 7 2363 . 94 2329 . 29 BLK E (AND LOT 8 BLK E 1 17 fage No . 8 2/02/88 ' ASSESSMENT 'ASSESSOR' S PROPERTY PRELIMINARILY CONFIRMED PAYMENT PARCEL NO . LEGAL DESCRIPTION APPROVED & RECORDED 11111010 GARFIELD STREET ADD BLK E 1195 . 06 1177 . 21 LOT 6 11111011 GARFIELD STREET ADD BLK E 1195. 06 1177 . 21 LOT 5 ' 11111012 GARFIELD STREET ADD BLK E 1195 . 06 1177 . 21 LOT 4 11111013 GARFIELD STREET ADD BLK E 1195. 06 1177 . 21 LOT 3 11111014 GARFIELD STREET ADD BLK E 1195 . 06 1177 . 21 LOT 2 11111016 GARFIELD STREET ADD BLK E 2110. 11 2025 . 48 LOT 24 11111018 GARFIELD STREET ADD LOT 21 5236 . 00 5026 . 00 BLK E (AND LOT 22 BLK E ' 11111019 GARFIELD STREET ADD BLK E 2618 . 00 2513 . 00 LOT 20 11111020 GARFIELD STREET ADD BLK E 2618 . 00 2513 . 00 LOT 19 11111021 GARFIELD STREET ADD LOT 23 1309 . 00 1256 . 50 BLK E ALL -EX S1 /2- 11111022 GARFIELD STREET ADD LOT 23 1309 . 00 1256. 50 BLK 3 S 72 . 5 FT , 11111023 GARFIELD STREET ADD LOT 25 183 . 26 175 . 91 BLK E E1 /2 OF LOT 11112001 GARFIELD STREET ADD BLK F 4276. 34 4183 . 94 LOT 20 111112006 GARFIELD STREET ADD BLK F 4609 . 74 4512. 09 LOT 16 11112007 GARFIELD STREET ADD BLK F 4609 . 74 4512 . 09 LOT 15 11112008 GARFIELD STREET ADD BLK F 4793 . 00 4688. 00 LOT 14 11112009 GARFIELD STREET ADD BLK F 3875 . 58 3790. 53 LOT 13 11112011 GARFIELD STREET ADD BLK F 1907 . 56 1889 . 71 LOT 12 111112012 GARFIELD STREET ADD BLK F 1210. 77 1192 . 29 LOT 11 11112013 GARFIELD STREET ADD BLK F 1195. 06 1177. 21 LOT 10 11112014 GARFIELD STREET ADD BLK F 1195 . 06 1177 . 21 LOT 9 11112015 GARFIELD STREET ADD BLK F 1195. 06 1177 . 21 LOT 8 11112016 GARFIELD STREET ADD LOT 6 2363 . 94 2329 . 29 ' BLK F (AND LOT 7 BLK F ' 18 Page No . 9 12/02/88 ' ASSESSMENT ' ' N ASSESSOR' S PROPERTY PRELIMINARILY CONFIRMED PAYMENT PARCEL NO. LEGAL DESCRIPTION APPROVED & RECORDED 11112017 GARFIELD STREET ADD BLK F 1195 . 06 1177 . 21 LOT 5 ' 11112018 GARFIELD STREET ADD BLK F 1195. 06 1177 . 21 LOT 4 ' 11112019 GARFIELD STREET ADD BLK F 1195. 06 1177 . 21 LOT 3 11112020 GARFIELD STREET ADD LOT 1 2371 . 79 2336 . 83 BLK F (AND LOT 2 BLK F) ' 11112022 GARFIELD STREET ADD BLK F 2618. 00 2513 . 00 LOT 25 11112023 GARFIELD STREET ADD BLK F 2618. 00 2513 . 00 LOT 24 ' 11112024 GARFIELD STREET ADD BLK F 2620 . 62 2515 . 51 LOT 23 ' 11112025 GARFIELD STREET ADD BLK F 2618. 00 2513 . 00 LOT 22 11112028 GARFIELD STREET ADD BLK F 4276 . 34 4183 . 94 LOT 19 ' 11112029 GARFIELD STREET ADD LOT 26 2120 . 58 2035 . 53 BLK F AND POR OF LOT 27 BLK F 11112030 GARFIELD STREET ADD LOT 27 516 . 52 501 . 82 BLK F POR OF LOT 11113001 GARFIELD STREET ADD BLK D 794. 51 792 . 72 LOT 1 ' 11113002 GARFIELD STREET ADD LOT 2 1779 . 50 1753 . 25 BLK D (AND E1 /2 LOT 2 BLKD 11113005 GARFIELD STREET ADD BLKD 1187 . 21 1169 . 67 LOT 5 111113006 GARFIELD STREET ADD BLK D 1195. 06 1177 . 21 LOT 6 / 11113007 GARFIELD STREET ADD BLK D 1195 . 06 1177 . 21 LOT 7 11113008 GARFIELD STREET ADD BLK D 1195. 06 1177 . 21 LOT 8 ' 11113009 GARFIELD STREET ADD LOT 9 2390 . 12 2354. 42 BLK D (AND LOT 10 BLK D 11113010 GARFIELD STREET ADD BLK D 1195 . 06 1177 . 21 LOT 11 111113011 GARFIELD STREET ADD LOT 12 1142. 41 1133 . 59 BLDK D N1 /2 111113012 GARFIELD STREET ADD LOT 12 1297 . 29 1288. 58 BLK D S1/2 11113014 GARFIELD STREET ADD BLK D 2916 . 98 2852 . 93 LOT 13 19 Page No . 10 ' 12/02/88 ' ASSESSMENT ' ASSESSOR' S PROPERTY PRELIMINARILY CONFIRMED PAYMENT PARCEL NO. LEGAL DESCRIPTION APPROVED & RECORDED 11113015 GARFIELD STREET ADD BLK D 4793 .00 4688 . 00 LOT 14 ' 11113016 GARFIELD STREET ADD LOT 15 9586 . 00 9376 . 00 BLK D (AND LOT 16 BLK D ' 11113011 GARFIELD STREET ADD BLK D 4793 . 00 4688, 00 LOT 17 11113018 GARFIELD STREET A-DD LOT 18 8054. 92 7866 . 97 BLK D (AND LOT 19 BLK D 11113019 GARFIELD STREET ADD BLK D 6605 . 46 6529 . 86 LOT 20 11113020 GARFIELD STREET ADD LOT 21 5236. 00 5026 . 00 BLK D (AND LOT 22 BLK D ' 11113021 GARFIELD STREET ADD LOT 23 1256. 64 1206 . 24 BLK D W1 /2 11113022 GARFIELD STREET ADD LOT 23 1309 . 00 1256 . 50 BLK D E1 /2 11113023 GARFIELD STREET ADD LOT 24 5236. 00 5026 . 00 BLK D (AND LOT 25 BLK D ' 11113024 GARFIELD STREET ADD BLK D 2618. 00 2513 . 00 LOT 26 11113025 GARFIELD STREET ADD BLK D 1596. 98 1532 . 93 LOT 27 ' 11113026 GARFIELD STREET ADD BLK D 1779 . 50 1753 . 25 LOT 4 AND BLK DPOR OF LOT 3 ' 11114001 GARFIELD STREET ADD LOT 1 2363 . 94 2329 . 29 BLK C (AND LOT W BLK C 11114002 GARFIELD STREET ADD LOT 3 592 . 29 583 . 58 BLK C E1 /2 11114004 GARFIELD STREET ADD BLK C 1195. 06 1177 . 21 LOT 5 ' 11114005 GARFIELD STREET ADD BLCK C 1195. 06 1177 . 21 LOT 6 11114006 GARFIELD STREET ADD LOT 7 2363 . 94 2329 . 29 BLCK C (AND LOT 8 BLCK C ' 11114007 GARFIELD STREET ADD LOT 9 2363 . 94 2329 . 29 BLCK C (AND LOT 10 BLK C 11114008 GARFIELD STREET ADD BLK C 1195. 06 1177 . 21 LOT 11 ' 11114009 GARFIELD STREET ADD BLK C 1195. 06 1177 . 21 LOT 12 11114014 GARFIELD STREET ADD BLK C 2618. 00 2513 . 00 LOT 18 11114015 GARFIELD STREET ADD BLK C 2618. 00 2513 . 00 LOT 19 ' 20 fage No , 11 2/02/88 ASSESSMENT ' ASSESSOR' S PROPERTY PRELIMINARILY CONFIRMED PAYMENT PARCEL NO . LEGAL DESCRIPTION APPROVED & RECORDED 11114016 GARFIELD STREET ADD BLK C 2618 .00 2513 . 00 LOT 20. 11114018 GARFIELD STREET ADD BLK C 2618. 00 2513 . 00 LOT 22 11114011 GARFIELD STREET ADD BLK C 2618. 00 2513 . 00 ' 11114020 GARFIELD STREET ADD LOT 24 523 . 60 502 . 60 BLK C W 60 FT 11114021 GARFIELD STREET ADD LOT 24 1282 . 82 1231 . 37 ' BLK C E 240 FT -EX E 105 FT S 125 FT- 11114022 GARFIELD STREET ADD LOT 24 785 . 40 753 . 90 BLK C S 125 FT E 105 FT ' 11114023 GARFIELD STREET ADD BLK C 2618. 00 2513 . 00 LOT 25 11114024 GARFIELD STREET ADD BLK C 2618. 00 2513 . 00 LOT 26 11114025 GARFIELD STREET ADD BLK C 2618. 00 2513 . 00 LOT 27 ' 11114026 GARFIELD STREET ADD LOT 28 654. 50 628 . 25 BLK C POR OF LOT 11114027 GARFIELD STREET ADD LOT 28 654. 50 628 . 25 BLK C POR OF LOT ' 11114028 GARFIELD STREET ADD LOT 17 654. 50 628 . 25 BLK C 11 /2 N1/2 11114029 GARFIELD STREET ADD LOT 17 654. 50 628 . 25 BLK C W1 /2 S1/2 11114030 GARFIELD STREET ADD LOT 17 654. 50 628. 25 BLK C E1 / 2 S1 /2 ' 11114031 GARFIELD STREET ADD LOT 17 654. 50 628 . 25 BLK C E1 /2 N1 /2 11114032 GARFIELD STREET ADD LOT 13 4712. 40 4523 . 40 ' BLK C 815 FTW 175 FT -MEASURED TO E L N OF SMELTZER AVE-AND W 175 FT LOTS 14, 15 & 16 BLK C ' -MEASURED T 0 E LN OF SMELTZER AVE- 11114033 GARFIELD STREET ADD LOT 13 4712. 40 4523 . 40 ' BLK C ALL -EX S 15 FT W175 FT- -MEASURED TO E LN OF SMELTZER ST- AND LOTS 14 TO 16 INC BLC C -EX W 175 ' F T- -MEASURED TO E LN OF SMELTZER ST. 11114034 GARFIELD STREET ADD LOT 21 654. 50 628 . 25 ' BLK C ELY 75 FT 21 ' Page No . 12 12/02/88 ' ASSESSMENT ASSESSOR' S PROPERTY PRELIMINARILY CONFIRMED PAYMENT ' PARCEL N0 . LEGAL DESCRIPTION APPROVED & RECORDED 11114035 GARFIELD STREET ADD LOT 21 1963 . 50 1884 . 75 BLK C ALL -EX ELY 75 11114036 GARFIELD STREET ADD LOT 3 592 . 29 583 . 58 BLK C W1 /2 ' 11114037 GARFIELD STREET ADD BLK C 1195 . 06 1177. 21 LOT 4 11115013 GARFIELD STREET ADD BLK B 1195 . 06 1177. 21 LOT 12 ' 11115015 GARFIELD STREET ADD BLK B 1806 . 42 1733 . 97 LOT 13 11115017 GARFIELD STREET ADD LOT 15 1806 . 42 1733 . 97 BLK B (AND LOT 16 BLK B 11115018 GARFIELD STREET ADD BLK B 2015 . 86 1935 . 01 LOT 17 ' 11115019 GARFIELD STREET ADD BLK B 1335 . 18 1281 . 63 LOT 18 11115020 GARFIELD STREET ADD BLK B 1151 . 92 1105 . 72 LOT 19 11115021 GARFIELD STREET ADD LOT 20 942. 48 904 . 68 BLK B N1 /2 11115022 GARFIELD STREET ADD LOT 20 392 . 70 376 . 95 BLK B N1 /2 S1 /2 11115023 GARFIELD STREET ADD LOT 20 366. 52 351 . 82 BLK B S1 /2 S1 /2 ' 11115024 GARFIELD STREET ADD BLK B 1021 . 02 980. 07 LOT 21 11115025 GARFIELD ST ADD BLKB LOT 2499 . 30 2436 . 30 22 ' 11115026 GARFIELD STREET ADD BLK B 2390. 12 2354 . 42 LOT 23 11115027 GARFIELD STREET ADD BLK B 2390. 12 2354. 42 LOT 24 11115028 GARFIELD ST ADD LOT 25 BLK 4866. 28 4791 . 73 B (AND LOT 26 BLK B ' 11115029 GARFIELD STREET ADD BLK B 2512 . 69 2472 . 79 LOT 27 11115030 GARFIELD STREET ADD BLK B 3822. 66 3731 . 31 LOT 28 ' 11115031 GARFIELD STREET ADD BLK B 2555 . 26 2521 . 66 LOT 29 11115032 GARFIELD STREET ADD LOT 30 890. 12 854 . 42 BLK B W1/2 ' 11115033 GARFIELD STREET ADD LOT 30 1798. 60 1777 . 60 BLK B W1 /2 ' 11115034 GARFIELD STREET ADD LOT 30 235 . 62 226 . 17 BLK B NW1 /4 E1 /2 22 ' Page No . 13 12/02/88 ASSESSMENT ASSESSOR' S PROPERTY PRELIMINARILY CONFIRMED PAYMENT ' PARCEL N0, LEGAL DESCRIPTION APPROVED & RECORDED 11115036 GARFIELD STREET ADD BLK B 3695 . 14 3670 . 99 LOT 34 11115037 GARFIELD STREET ADD BLK B 2467. 88 2435 . 33 LOT 35 ' 11115038 GARFIELD STREET ADD BLK B 2662. 63 2619 . 58 LOT 36 11115039 GARFIELD ST ADD BLK B LOT 2869. 22 2817. 77 37 ' 11115040 GARFIELD STREET ADD BLDK B 3078. 66 3018. 81 LOT 38 11115044 GARFIELD STREET ADD BLK B 1806 . 42 1733 . 97 LOT 31 11115047 GARFIELD STREET ADD LOT 9 3934. 00 3881 . 50 BLK B AND LOTS 10 & 11 BLK B AND P t 15919101 TR 7 BLK E LOT 1 . 2670. 36 2563 . 26 15919102 TR 7 BLK E LOT 2 2120 .58 2035 . 53 15919103 TR 7 BLK E LOT 3 2748. 90 2638. 65 115919104 TR 7 BLK E LOT 4 2722 . 72 2613 . 52 15928101 GARFIELD ST ADD LOT 1 BLK 2958. 81 2930. 46 A ALL -EX ST-(AND ALL -EX ST-LOT 7 15928102 GARFIELD ST ADD LOT 3 BLK 4492. 26 4432 . 41 A AND LOTS R TO 6 INC ALL OF BLK A 15928103 GARFIELD STREET ADD LOT 7 1116 . 52 1101 . 82 BLCK A ALL -EX ST- 15928105 GARFIELD STREET ADD LOT 8 2277. 66 2186 . 31 ' BLK A AND LOTS 9 TO 11 INC ALL OF BLK A 15928208 GARFIELD STREET ADD LOT 20 916 . 30 879 . 55 BLK A N1/2 15928209 GARFIELD STREET ADD LOT 20 916 . 30 879 . 55 BLK A S1/2 /15928210 GARFIELD STREET ADD BLK A 1675 . 52 1608 . 32 LOT 21 15928211 GARFIELD STREET ADD LOT 22 5157 . 46 4950 . 61 BLK A AND LOTS 23 & 24 BLK A 115928212 GARFIELD STREET ADD LOT 25 811 . 58 779 . 03 POR OF LOT 15931102 TR 37 LOT 3 POR OF LOT AND 20917. 82 20078 . 87 POR LOT 4 AND LOT 9 AND POR LOT 10 AND POR SE1 /4 SEC 35 T 5 R 11 . 23 fage No . 14 2/02/88 IASSESSMENT 1ASSESSOR' S PROPERTY PRELIMINARILY CONFIRMED PAYMENT PARCEL NO. LEGAL DESCRIPTION APPROVED & RECORDED 15931103 T4 37 LOTS 5/6 . 5497 . 80 5277 . 30 15931104 TR 37 LOT 7 S 31 . 2 FT N 392. 70 376 . 95 62 . 4 FT IN LOT 15931105 TR 37 LOT 7 S 31 . 2 FT N 392. 70 376. 95 62 . 4 FT IN LOT . 15931106 TR 37 LOT 7 S 41 . 6 FT N 628. 32 603 . 12 104 FT IN LOT 15931107 TR 37 LOT 7 N 52 S 104 FT 523 . 60 502 . 60 IN LOT 115931108 TR 37 LOT 7 S 104 FT IN 680. 68 653 . 38 LOT -EX N52 FT- , 15931110 TR 37 LOT 8 N1 /2 S1 /2 680. 68 653 . 38 15931111 TR 37 LOT 8 S1/2 S1 /2 680 . 68 653 . 38 15931112 TR 37 POR LOT 10 1204. 28 1155 . 98 115935101 TR 11805 LOT R 13 . 09 12 . 56 15935102 TR 11805 LOT X 170. 17 163 . 34 15935103 TR 11805 LOT 1 544 . 54 522 . 70 15935104 TR 11805 LOT 2 625. 70 600 . 61 15935105 TR 11805 LOT 3 654 . 50 628 . 25 15935106 TR 11805 LOT 5 706 . 86 678 . 51 15935107 TR 11805 LOT 5 761 . 84 731 . 28 15935108 TR 11805 LOT 6 761 . 84 731 . 28 15935109 TR 11805 LOT 7 790 . 64 758 . 93 15935110 TR 11805 LOT 8 952 . 95 914 . 73 15935111 TR 11805 LOT 9 735 . 66 706 . 15 115935112 TR 11805 LOT 10 735 . 66 706 . 15 15935113 TR 11805 LOT 11 735 . 66 706 . 15 15935114 TR 11805 LOT 12 761 . 84 731 . 28 t15935115 TR 11805 LOT 13 877 . 03 841 . 86 15935116 TR 11805 LOT 14 790. 64 758 . 93 15935117 TR 11805 LOT 15 654 . 50 628 . 25 15935118 TR 11805 LOT Y 196. 35 188. 47 115935201 TR 11805 LOT 16 843 .00 809 . 19 15935202 TR 11805 LOT 17 706 . 86 678 . 51 15935203 TR 11805 LOT 18 843 .00 809 . 19 115935204 TR 11473 LOT 5 897 . 97 861 . 96 15935205 TR 11473 LOT 4 3157 . 31 3030 . 68 15935206 TR 11473 LOT 3 1905. 90 1829 . 46 15935207 TR 11473 LOT 7 761 . 84 731 . 28 15935208 TR 11473 LOT 6 816 . 82 784 . 06 15935209 TR 11805 LOT 19 816 . 82 784 . 06 15935210 TR 11805 LOT 20 843 . 00 809 . 19 1 15935211 TR 11805 LOT 21 897 . 97 861 . 96 15935212 TR 11805 LOT 22 1034. 11 992 . 63 15935213 TR 11805 LOT 23 761 . 84 731 . 28 24 Page No . 15 ' 12/02/88 ' ASSESSMENT ASSESSOR' S PROPERTY PRELIMINARILY CONFIRMED PAYMENT PARCEL NO. LEGAL DESCRIPTION APPROVED & RECORDED 15935214 TR 11805 LOT 24 680 . 68 653 . 38 ' 15935215 TR 11473 LOT 9 544 . 54 522. 70 15935216 TR 11473 LOT 8 599 . 52 575 . 48 15935217 TR 11473 LOT 2 2803 . 88 2691 . 42 15935218 TR 11473 LOT 1 2395 . 47 2299 . 39 15935219 TR 11805 LOT 25 680. 68 653 . 38 15935220 TR 11805 LOT 26 1007 . 93 967 . 50 15935221 TR 11805 LOT Z 162. 32 155. 81 ** Total *** 1837415 . 21 1774511 . 39 1 1 25 1 ENGINEER'S "REPORT" ' PART V DESCRIPTION OF RIGHTS-OF-WAY TO BE ACQUIRED RIGHT-OF-WAY CERTIFICATE ' STATE OF CALIFORNIA COUNTY OF ORANGE CITY OF_HUNTINGTON BEACH ' The undersigned hereby CERTIFIES UNDER PENALTY OF PERJURY that the following is all true and correct. ' At all times herein mentioned, the undersigned was, and now is, the authorized representative of BLACK & VEATCH duly appointed ENGINEER OF WORK of the CITY OF ' HUNTINGTON BEACH, CALIFORNIA, That there have now been instituted proceedings under the provisions of the "Munici- pal. Improvement Act of 1913", being Division 12 of the Streets and Highways Code of ' the State of California, for the construction of certain public improvements in a special assessment district known and designated as ASSESSMENT DISTRICT NO. 88-1 (RESERVOIR HILL) (hereinafter referred to as the "Assessment District") . THE UNDERSIGNED STATES AND CERTIFIES AS FOLLOWS: [ X] a. That all easements, rights-of-way, or land necessary for the accomplish- ment of the works of improvement for the above referenced Assessment District have been obtained and are in the possession of the City. ' [ ] b. That all easements, rights-of-way or land necessary for the accomplishment of the works of improvement for the above referenced Assessment District have been obtained and are in the possession of the City, EXCEPT FOR THOSE ' DESCRIBED IN EXHIBIT "A" attached hereto, showing legal description and maps of rights-of-way and easements not yet obtained at this time. It is further acknowledged that works of improvement as proposed to be constructed ' within said Assessment District must be constructed within public rights-of-way, land, or easements as owned by said City at the time of the construction of the works of improvement, and the undersigned hereby further certifies that all ' rights-of-way necessary for the works of improvement will be obtained and in the possession of the City prior to the commencement of any construction. ' EXECUTED this 24th day of October 1188, at City of Huntington Beach, California. BLACK & VEATCH t 1) GI-A-1-`-A ENGINEER OF WORK ' CITY OF HUNTINGTON BEACH STATE OF CALIFORNIA 14155.300/2.8 26 ' ENGINEER'S "REPORT" ' PART V DESCRIPTION OF WORKS OF IMPROVEMENT ' AND RIGHTS-OF-WAY TO BE ACQUIRED DESCRIPTION OF WORKS OF IMPROVEMENT ' The proposed works of improvement are generally described as follows: Furnishing and installing approximately 12,740 lineal feet of water mains and appurtenances to serve a new higher pressure zone in the Reservoir Hill ' Assessment District within the City of Huntington Beach. Water mains will range in size from 12-inches to 18-inches in diameter. Proposed locations of the new water mains are shown on the Assessment District Boundary Map ' included in this report. 14155.300/2.7 27 ' BOUNDARY DESCRIPTION Segment Number Bearing Distance (feet) 1 N89011'32"E 4621.87 ' 2 N89011'32"E 658.32 3 Soo°02'02"W 569.00 4 N89059'22"E 689.60 ' 5 S00°02'25"W 901.33 6 S89058'36"W 239.42 7 Soo°02'25"W 104.00 8 N89058'36"E 239.42 ' 9 Soo°02'25"W 315.59 10 Soo°00'36"E 744.81 11 N89041'40"W 744.62 ' 12 S45019'05"W 745.47 13 Soo°19'51"E 209.60 14 S89039' 15"E 310.22 ' 15 Soo°19'43"E 410.35 16 S89041'06"E 135.00 17 Soo°19'38"E 120.00 18 N89041'06"W 813.43 ' 19 S19015'35"W 524. 14 20 N89039'43"W 796.54 21 Soo°20' 17"E 379.56 ' 22 N89039'43"W 285.14 23 N00°19'59"E 60.08 24 N89040'01"W 359.85 25 Soo°17'56"W 167.84 26 N89045'25"W 441.25 27 02037'21" 20.46 R = 447.00 ' 28 S89045'25"E 78.75 29 N00017'20"E 250.00 30 S89045'25"E 206.25 31 Soo°17'20"W 6.25 32 S89045'25"E 217.89 33 N00017'20"E 833.89 ' 34 12059'28" 181.39 R = 800.00 35 42°13' 16" 589.52 R = 800.00 36 20051'47" 291.30 R = 800.00 37 1705242" 249.63 ' R = 800.00 38 Soo°23'03"W 254.45 39 N89039'53"W 219.42 40 N00°20' 15"E 6.00 ' 41 N89039'53"W 145.68 14155.300/2.3 28 ' BOUNDARY DESCRIPTION ' Segment Number Bearing Distance (feet) 42 N00021'23"E 73.93 ' 43 S89038'37"E 45. 10 44 N00021'23"E 200.00 45 N89038'37"W 130.00 ' 46 S82026'52"W 324.53 47 S60022'26"W 500.00 48 Sol 017'S0"W 509.00 ' 49 S32012'40"E 670.22 50 S4801l'20"E 195. 13 51 S22048'23"E 211.26 52 S67011'37"E 61.40 ' 53 S72017'25"E 124.92 54 S30000'06"E 157.28 55 S52007'30"W 684.00 ' 56 N81032'02"W 699.62 57 S82046' 17"W 425.55 58 S72018'38"W 365.27 ' 59 N51057'36"W 157.43 60 N18013'31"E 445.00 61 N45058' 16"E 250.35 62 N30022'31"E 450.89 ' 63 N41053'12"W 358.50 64 N12021' 19"E 328.47 65 N02021'06"E 487.41 ' 66 N17001'26"W 97.56 67 N66009'18"W 310.97 68 N44010,1011W 208.80 69 N00018'37"E 2996.09 70 N89018' 15"E 124.00 71 N00049'32"W 120.00 72 S89018115"W 124.00 ' 73 N00018'37"E 210.36 74 S89032'15"E 329.05 75 S89032'15"E 699.50 76 N00016'41"E 329.97 77 S89059'45"E 368.00 78 90000,00" 50.27 ' R = 32.00 79 S00°02' 10"W 90.00 80 N89059'45"W 325.00 81 N00002' 10"E 145.00 82 S89059'45"E 300.00 83 S00002'10"W 195.00 84 N89059145"W 600.00 85 N00002'10"E 100.00 86 S89059145"E 300.00 ' 14155.300/2.3 29 tBOUNDARY DESCRIPTION . Segment Number Bearing Distance (feet) 87 N00°02' 10"E 95.00 ' 88 S89059'36"E 50.00 89 Soo°02'10"E 123.00 90 N89059'36"W 50.00 ' 91 N00002'02"E . 123.00 92 S89059'36"E 40.00 93 Soo°02'10"E 91.00 94 90000,00" 50.27 ' R = 32.00 95 00002'10"E 8.00 96 00002'02"E 123.00 ' 97 N00000'00"E 113.00 98 90000,00" 50.27 R = 32.00 ' 99 S89°57'58"E 528.00 100 90000,00" 31.42 R = 20.00 101 Soo°02'03"W 125.00 ' 102 N89057'58"W 300.00 103 Soo°02'03"W 145.00 104 N89057'58"W 280.00 ' 105 N55000'37"W 406.01 106 N34059'23"E 250.00 107 S55000'37"E 406.01 108 N34059' 10"E 250.00 t ' 14155.300/2.3 30 Files in the O!fice of :h, CLt. Clerk of the City of MunciNton Belch this I - day ..ba,• -CITY CLERK -- - CITY OF HUNT!NGTON BEACH - STATE Of CALIFORNIA - - Recorded _i C.h D!.`ice p[ the Sueerincendent of Stteetr of the Cit., of - MuntLGt;cen 3Recn:'._ 7 de+-of ttd.n6— l°BB. S PEPLINTENDEKT Of STREETS CITY Of HUNTINGTON BEACH STATE Of CALIFORNIA - An • a levied by the CltY of MuntLn➢tcn Beach o the lots, pieces -- end parcelsr of r!a d anc.r. er. c .......r di.4r.m. Said ......nenc ' iad the - ' Gay eft h 7jtlC`.d Y 3988; slid ...... - - dLaqta. anG cne a. s c to_1 __ o d.d _n the Of!Lce f the Sup in- -rndent o' Screecr ro[rm,id Clcy C. a d.e of �f.trm6" - 39BB- Reference turtle tha a Col! cttled _ the of!tcr of , the SuprincenGant`of Strae s-'oc mere _ ro[ each a tasament levied ' ,gatn,t each p c.I of Land,no.,on 9cA_r .....suiee n/t dl.q: . CITY CLERK CIT_Y Of HUNTINGTON BEACH STATE OF CALIFORNIA I Filed cni, day of 3?88, at the hder of � 'clock in Book of Hap, of A,aere.... and f o'clock Yat:_tt_es Diacc_ts in ho Cffic.•cf the County ....td.r of the .�.+.xe County of Orange. S tat.of Ulif or.ie. tl - ,cEE COUNTY RECORDER COUNTY OF okANC£ L I STATE Of CALIFORNIA - TT _ 1 (�', i/.•.' //^,` 1: 3 _• V. 1 - _ •� '1 S.'�� •,� fl' .qI' IP • /.. :( � .. .. 11 I__ __ � . _ � � 44i' 1 �'i ��:�.i:i Ei' - ..=,j- �` sncEr IVDEt l;1 I � !' �_ /r .... :'I� `,.I ��__�_- / - ''�'�\\,�,13 rt1 f� '•.:: -.'�.L.�,•t„"�� r'1, c--n is , LEGEND : I Vl— I� +93ESSw ENT D:STP:CT `1\ li; - '�' 1 l I' /� �� lll.���,\•f'•�\ a 1 _ .1. I _ f _ / BOUNDARY r��I �1yf'I�LII yIi ✓ I l-J, FARGEL BOUNDARY 1 /)� 1i3O r900f ASEEBSMENT Ho. �n •1' -- I f'.� _I U �• _ - ''i1��,11�"•Ca'�r`,\:' . --- -=l '- �.-- - 11 --- - - - -- - - --- - a�------- _ PSON{AS ASSESSMENT DIAGRAM O` " f—at,.L.Y.1-- _— • • •• ' u�: - _ r ...� °oa➢BEa nee . oBtaCKSVeata� ASSESSMENT DISTRICT 88-1 RESERVOIR HILL .....,e `•`DD.G. Fc- f NUNTINGTON REIGN COUNTY OF ORAM(i STATE OG CAL:FORNIA Yg1020] 6 Fi 1'C of .he Cit, Clerl, Of ch. City of xunc ington Belch this C:TY CLERK CITY CF HUNVI-TON BEACH STATE no CALIFORNIA Rec­de.- t�e offce 4f the-S—rt—e,dent Of St:90t& cf the City Of xcnt 34— 1:- 7- d--,-Of Dtc—b- S-n-14TVIDENT OF STREETS :-Y OF H..T.—T.N BEACH 'T_ OF CALIFORNIA A. ...... le-td by the C;%, Of He.rilazl. Beech III the It— piece, 1,�W c�.'.' o,zn-- .7t oiag"-.. Slid.:�,d,s —d Per h C e i—_.o :�Z�;: . ,,Be; . ........t di.9r.. end Z.. .•......nt -,I- .— r—r= mh -.he Offic? the S.p.ri. -eneentof of C;t• ch d....of i9eB. I. . ...... rVII the C%4-'i�...anentt !;Ce't S peri-Intent of S-e—1 -or z�e t.acz .-- of aga t III—z—,2 of '—d IIh—I- th. .........c di.qree. CIT. CLERK C I-_Y OF HUNT-NGTON BEACH STATE OF CALIFORhIA Filed 'Z�L­ .-y of 19.., ec the lh— of 006 • ---j.Ck P_-.. in of ..p• of A.....— andC Di—riz=' i Cf!1c, z c.—y R...rd.r of the C'..'Y of -f f St. C.'-or .4 1-q- A. aell"CH COUNTY RECORDER COUNTY Or ORANGE STATE OF CALIFORNIA 4—--------- 3 L it ip r '3� 7 F�lwdl- I.— ME. Al ;-4 3 r u , , o M" LEGEND :7 &SSESSIIIENT DISTRICT BOUNDARY A —CEL BOON 11012002 ASSESS.E— .0. --u v I h 07 N .4 WE J ASSESSMENT DIAGRAM W]OaM VeatCn ASSESSMENT DISTRICT 88-1 HIT RESERVOIR HILL .01 S—E OF MIFOR". CITY OF 51UNITINGTON BEIICH CO�TV OF 04MGE _ TI II1 CITY QF HU�I ITI�NGTO� I 13EACH -mow: Map on File with City Clerk ■ CERTIFICATE OF AUTHORIZED OFFICERS Name of (Huntington Beach Obligor/Issues CITY OF HUNTINGTON BEACH Assessment Dist. 88-1) Address 2000 24ain Street, Huntington Beach, Ca. 92648 To: B a n k o f A m e r i c a rational Tnzat and Savings Aviation corporate Met Division 555 South Flmer Street, Sth Floor Ins Angeles, C h 90071 I, the tmdersigned Connie Brockway, City Clerk of the City of Huntington hereby certify t, pursuant to resolution duly adopted by the , those officers named upon face of oertificate have been duly authorized, are now acting ified to sign written instructions, consents, certificates or o 'ties, etc., on behalf of this namicipality/ompany, spec' tunes appearing opposite the names and titles are the signatures of su officers and that said resolutions el authorizing these officers now in full force and effect. You are further authorized to reoognize ignatures until you receive our written instructions to the contrary. (Print) (Signature) Grace Winchell Mayor, will si � Ray Silver Asst. City44wwmjM, will sign Michael Uberuaga City uanager, will si Donald Watson Treasurer, will sign Finance Director, will sign Connie Brockway City Clerk , will sign Robert J. Franz Deputy City Admnstr. will si will sign Certified on , 192-L. (SEAL) I, the undersigned City Clerk of Huntington Beach, 3 California, hereby certify that the specimen signatures appearing opposite the names and titles are the genuine signatures of such officers. t Name: Title: .ZX 2Z/L rztnla/doc 06/90 n a4 Kathryn M.Valdivia Assistant Vice President iooletl% recyc paper Corporate Trust 8510 555 South Flower Street 5th Floor Los Angeles,CA 90071- Bank of America 213/228-4146 Bank of America Corporate Trust Administration June 17, 1993 City of Huntington Beach 2000 Main Street Huntington Beach, Ca 92648 Attn: Dan Villella Director of Finance o RE: Huntington Beach 1970 Park Bonds 78209 Huntington Beach Assessment Dist. #88-1 79903 Huntington Beach Comm. Fac Dist. 1990-1 Spec. Tax Bonds 79967 V (/ Huntington Beach Parking Authority, 1968 Revenue Bonds 77972 Huntington Beach, Public Fac"Corp. LHD Mtg. Bonds 9-1-72 782698269/> Huntington Beach, Public Fac Corp., Escrow 79767 Dear Mr. Villella: Enclosed is a copy of our Certificate of Authority of Officers. In order to insure that the Trustee/Fiscal Agent/Paying Agent takes directions from authorized officers, please complete the Certificate and return to us within 15 days after your receipt of this letter. If there has been no change from the current list (copy enclosed) , please indicate "no change" on the Certificate, date and sign it, and return it to us. If you have any questions, please call. Sincerely, Kathy Valdivia Assistant Vice President KV:jn Tel: (213) 228-4146 Enclosure a WP51\LETTERS\CERTAU.KV[233 Bank of America National Trust and Savings Association 555 South Flower Street Los Angeles,California 90071 213/228-4146 CITY OF HUNTINGTON BEACH 2000 MAIN STREET CALIFORNIA 92648 OFFICE OF THE CITY CLERK CONNIE BROCKWAY CITY CLERK July 16, 1993 Kathryn M. Valdivia Assistant Vice President Bank of America Corporate Trust 8510 5th Floor Los Angeles, CA 90071 Dear Ms. Valdivia: Pursuant to our telephone conversation of July 15, 1993, I am returning the certification appropriately reworded. In order to certify the document as originally worded it would be necessary that the Council adopt a new resolution specifying the individuals who now occupy each of these positions. If you decide a resolution is required, please notify me by letter and I will transmit a request to the City Attorney and to the Finance Director that such resolution be prepared for Council adoption. Sincerely, �&66 Connie Brockway, CMC City Clerk CB:ln 1273I 1 Telephone:714-536-5227) TI ICEI _ " ®Ir HtI�NTIIiGJTON 8 !ACH ■ I BROWN 8 DIVEN R 0. BOX 6025 - i F, MACKENZIE BROWN' FAIRBANKS RANCH PLAZA SAN DIEGO (619) 456-1915 WARREN B. DIVEN RANCHO SANTA FE. CALIFORNIA 92067 ORANGE (7(4) 551-1915 DANIEL S. HENTSCHKE LOS ANGELES (213) S87-1915 TELEX (619) 756-0412 VENTURA (80S) 653-1915 •• -OFESSIONAL CORRO-10r. RIVERSIDE (7141 359-5489 Auqust 31, 1988 Les Evans, City Engineer City of Huntington Beach P. O. Box 190 DEP i. Off '. !'_ ^�^RKS Huntington Beach, CA 92548 11 1 1088 RE: ASSESSMENT DISTRICT NO. 88-1 (RESERVOIR HILL) HUIWnNGTON BEACH. CAQW Dear Les: - Enclosed herein please find the following documents for consideration and adoption at the meeting scheduled for September 19, 1988: I. ORDER OF PROCEDURE. 2. RESOLUTION ACTING ON PETITION. i; 3. RESOLUTION MAKING APPOINTMENTS. n. RESOLUTION ADOPTING PROPOSED BOUNDARY MAP- I 5. RESOLUTION OF INTENTION. The ORDER OF PROCEDURE as enclosed herein sets forth the presentation, and said ORDER OF PROCEDURE will also be helpful in the preparation of the Minutes. I - i Please note that a copy of the AGENDA for the meeting of September 19, 1968, setting 1 forth a 'general description of the project and the time and place of the meeting, must be posted in a location freely accessible to the general public at least 72 hours before the time set for said meeting. DOCUMENTS On file now in the Office of the City Clerk should be the following: 1. Executed Petition n . Certificate of Sufficiency of Petition ?. Proposed Boundary Map We would appreciate the opportunity to review the Petition, Certificate and proposed boundary map prior to any presentation to the City Council. e� O BROWN & DIVEN Les Evans, City Engineer _ City of Huntington Beach August 31, 1988 Page Two RESOLUTIONS Through the adoption of the enclosed Resolutions, the following will generally be accomplished: The RESOLUTION MAKING FINDINGS ON PETITION is the formal action and acceptance of Petition submitted by property owners. The RESOLUTION MAKING APPOINTMENTS is the formal appointment of the Superintendent of Streets, newspaper, etc. The RESOLUTION APPROVING BOUNDARY MAP is the formal action establishing and approving boundaries of the proposed Assessment District. The RESOLUTION OF INTENTION is the jurisdictional Resolution under "1913 Act" proceedings, declaring intent to finance improvements through the issuance of bonds. SCHEDULE The proposed schedule for major activities and Council actions will be as follows: DATE ACTIVITY SEPTEMBER 19, 1988: Receive petition and proposed boundary map. _ Council, by Resolution, accomplish the following: _ - Approve Petition - Approve Boundary Map - Make Preliminary Appointments and Approve Agreement - Adopt Resolution of Intention OCTOBER 17, 1988: Formal presentation of Engineer's "Report'', consisting of the following: - Plans - Specifications - Cost Estimate Assessment Roll Assessment Diagram BROWN 8 DIVEN Les Evans, City Engineer City of Huntington Beach August 31, 1988 Page Three DATE ACTIVITY City Council, by Resolution, to accomplish the following: - Approve Engineer's "Report" and authorize public hearing Authorizing bidding on works of improvement _ - - Request formal proposal for sale of bonds NOVEMBER 16, 1988: Receipt of construction bids DECEMBER 5, 1988: Formal public hearing. City Council, by Resolu- tion, to consider the following: - Order work - Confirm assessments - Approve Engineer's "Report" DECEMBER 19, 1988: City Council, by Resolution, to consider the following: - Authorize issuance of bonds - Accept proposal for sale of bonds - Award construction contract _ Further detailed schedules and Orders of Procedure will be presented prior to the appropriate Council_ meeting, together with the applicable notices, instructions, etc. At this time I am still waiting to receive the following: A. Copy of executed Petitions -B. Copy of executed Certificate of Sufficiency C. Copy of proposed boundary map As written communications are filed in connection with the proceedings, copies should immediately transmitted to the following: A. Each member of the legislative body B. Office-of Engineer of Work C. Office of Brown & Diven I would appreciate receiving conformed copies of all Resolutions upon their adoption, together with a copy of the minutes of the meeting where the Resolutions have been adopted. BROWN 8 DIVEN Les Evans, City Engineer City of Huntington Beach August 31, 1988 Page Four Under separate cover I will be transmitting all notices, affidavits and certificates in order to meet the necessary notice requirements following the conclusion of the meeting. Upon your review of the enclosed material, if you have any questions, comments or suggestions, please call. Very truly yours, F. MACKENZIE BROWN FMB:bd encls. cc: Alicia Wentworth, City Clerk David Argo; Black & Veatch Larry Rolapp; Fieldman, Rolapp & Associates (letter/OP only) i o-� STATEMENT OF THE ACTION OF THE CITY COUNCIL . Council Chamber, City Hall Huntington Beach, California Monday, September 19, 1988 Mayor Erskine called the regular meeting of the City Council of the City of Huntington Beach to order at 7 p.m. ROLL CALL Present: Kelly, Green, Finley, Erskine, Mays, Winchell , Bannister Absent: None (City Council) ASSESSMENT DISTRICT 88-1 (RESERVOIR HILL ASSESSMENT DISTRICT) PETITION FROM HUNTINGTON BEACH COMPANY - ELLIS/HUNTINGTON/YORKTOWN/EDWARDS - ADOPTED The City Clerk presented a communication from the Director of Public Works regarding the formation of an assessment district for the construction of water transmission lines in the Ellis-Goldenwest area of the city north of Ellis, east of Huntington, south of Yorktown, west of Edwards) . The City Clerk presented Resolution No. 5923 for Council consideration - "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH MAKING FINDINGS ON PETITION RELATING TO SPECIAL ASSESSMENT DISTRICT NO. 88-1 (RESERVOIR HILL)." The City Clerk presented Resolution No. 5924 for Council consideration -"A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH MAKING APPOINTMENTS TO ASSESSMENT DISTRICT NO. 88-1 (RESERVOIR HILL)." The City Clerk presented Resolution No. 5925 for Council consideration - "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH ADOPTING A MAP SHOWING PROPOSED BOUNDARIES OF ASSESSMENT DISTRICT NO. 88-1 . (RESERVOIR HILL)." The City Clerk presented Resolution 5926 for Council consideration - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH DECLARING INTENTION TO ORDER CONSTRUCTION OF CERTAIN IMPROVEMENTS, DECLARING THE WORK TO BE OF MORE THAN LOCAL OR ORDINARY BENEFIT, DESCRIBING THE DISTRICT TO BE ASSESSED TO PAY THE COSTS AND EXPENSES THEREOF, AND PROVIDING FOR THE ISSUANCE OF BONDS (ASSESSMENT DISTRICT NO. 88-1 , RESERVOIR HILL)." Following discussion, a motion by was made by Green, seconded by Kelly, to adopt Resolution Nos. 5923, 5924, 5925, and 5926 by the following roll call vote: AYES: Kelly, Green, Finley, Mays, Winchell NOES: Erskine, Bannister ABSENT: None 1 Mayor Erskine adjourned the regular meeting of the City Council of the City of Huntington Beach at 9:45 a.m. to September 28, 1988 in the Council Chamber, Civic Center. ATTEST: Connie Brockway City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California Connie Brockway City Clerk STATE OF CALIFORNIA ) John Erskine County of Orange ) Mayor City of Huntington Beach) I, CONNIE BROCKWAY, the duly appointed and qualified City Clerk of the City of Huntington Beach, California, do hereby certify that the above and foregoing is a true and correct Statement of Action of the City Council of said City at their regular meeting held on the 19th day of September 1988. WITNESS my hand and seal of the said City of Huntington Beach this the 23rd day of September, 1988. Connie Brockway City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California eputy STATEMENT OF THE ACTION OF THE CITY COUNCIL Council Chamber, City Hall Huntington Beach, California Monday, September 19, 1988 Mayor Erskine called the regular meeting of the City Council of the City of Huntington Beach to order at 7 p.m. ROLL CALL Present: Kelly, Green, Finley, Erskine, Mays, Winchell , Bannister Absent: None (City Council) ASSESSMENT DISTRICT 88-1 (RESERVOIR HILL ASSESSMENT DISTRICT) PETITION FROM HUNTINGTON BEACH COMPANY - ELLIS/HUNTINGTON/YORKTOWN/EDWARDS - ADOPTED The City Clerk presented a communication from the Director of Public Works regarding the formation of an assessment district for the construction of water transmission lines in the Ellis-Goldenwest area of the city north of Ellis, east of Huntington, south of Yorktown, west of Edwards) . The City Clerk presented Resolution No. 5923 for Council consideration - "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH MAKING FINDINGS ON PETITION RELATING TO SPECIAL ASSESSMENT DISTRICT NO. 88-1 (RESERVOIR HILL)." The City Clerk presented Resolution No. 5924 for Council consideration -"A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH MAKING APPOINTMENTS TO ASSESSMENT DISTRICT NO. 88-1 (RESERVOIR HILL)." The City Clerk presented Resolution No. 5925 for Council consideration - "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH ADOPTING A MAP SHOWING PROPOSED BOUNDARIES OF ASSESSMENT DISTRICT NO. 88-1 . (RESERVOIR HILL)." The City Clerk presented Resolution 5926 for Council consideration - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH DECLARING INTENTION TO ORDER CONSTRUCTION OF CERTAIN IMPROVEMENTS, DECLARING THE WORK TO BE OF MORE THAN LOCAL OR ORDINARY BENEFIT, DESCRIBING THE DISTRICT TO BE ASSESSED TO PAY THE COSTS AND EXPENSES THEREOF, AND PROVIDING FOR THE ISSUANCE OF BONDS (ASSESSMENT DISTRICT NO. 88-1 , RESERVOIR HILL)." Following discussion, a motion by was made by Green, seconded by Kelly, to adopt Resolution Nos. 5923, 5924, 5925, and 5926 by the following roll call vote: AYES: Kelly, Green, Finley, Mays, Winchell NOES: Erskine, Bannister ABSENT: None ti Uula- cat 0, -w Q ?- �r Mayor Erskine adjourned the regular meeting of the City Council of the City of Huntington Beach at 9:45 a.m. to September 28, 1988 in the Council Chamber, Civic Center. ATTEST: Connie Brockway City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California Connie Brockway City Clerk STATE OF CALIFORNIA ) John Erskine County of Orange ) Mayor City of Huntington Beach) I , CONNIE BROCKWAY, the duly appointed and qualified City Clerk of the City of Huntington Beach, California, do hereby certify that the above and foregoing is a true and correct Statement of Action of the City Council of said City at their regular meeting held on the 19th day of September 1988. WITNESS my hand and seal of the said City of Huntington Beach this the 23rd day of September, 1988. Connie Brockway City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California Deputy i CITY OF HUNTINGTON BEACH 2000 MAIN STREET CALIFORNIA 92648 OFFICE OF THE CITY CLERK September 22, 1988 Brown & Diven, Law Offices P. 0. Box 8025 Fairbanks Ranch Plaza Rancho Santa Fe, CA 92067 The City Council of the City of Huntington Beach at the regular meeting held Monday, September 19, 1988, adopted Resolutions 5923, 5924, 5925, and 5926 regarding the formation of an assessment district for the construction of water transmission lines in the Ellis-Goldenwest area in the City of Huntington Beach. Enclosed are certified copies of the resolutions for your records. Connie Brockway City Clerk CB:bt Enc. (Telephone:714-536.5227) 7APPROVZID BY GI IJL f FOR CITY COUNCIL'ACTION ���,� Date G ti AiZ7L Q1J �Y GZTY ty---lMonorahle Mayor and City Council $ ®Y$� Submitted by: Paul E. Cook, City Administrator �C ' ,,....�•" { Prepared by: Louis F. Sandoval, Director of Public Works aITY Subject: Assessment District Number 88-1 (Reservoir Hill Assess rict) 1 5 # S9a 3 Consistent with Council Policy? Yes [ ] New Policy or Exception fat Statement of Issue, Recommendation,Analysis, Funding Source,Alternative Actions,Attachmennts. ' STATEMENT OF ISSUE: The City has received a petition from the Huntington Beach Company requesting the formation of an assessment district for the construction of water transmission lines in the Ellis - Goldenwest area of the city. RECOMMENDATION: Adopt Resolution Number 5 a3 Making Findings on Petition. Adopt Resolution Number S 9a Making Appointments Adopt Resolution Number S Adopting Proposed Boundary Map Adopt Resolution Number �a• Declaring Intention to Form Assessment District Number 88-1 (Reservoir Hill ANALYSIS: The Ellis - Goldenwest area of the city suffers from low water pressure and marginal water service for fire protection. The proposed assessment district will be the area generally bounded on the north by Ellis Avenue, on the east by Huntington Street, on the south by Yorktown and on the west by a line parallel to and approximately 1000 feet west of Edwards Street. The majority of the properties in this area are undeveloped, and over 70% of them are owned by the Huntington Beach Company. Some of the properties in the proposed assessment district are presently receiving water service. These customers fall into three major categories: Present residential customers who will The County View Estates subdivision benefit from the assessment district. was allowed to develop with the condition that all new property owners would"partici- pate in the assessment district. These properties will be assessed. Present customers who will not benefit A few residences and commercial from the assessment district. customers within the district are presently receiving adequate water service to fully developed properties. These properties are excluded from the assessment district and will'not be assessed. PIO 5/85 \� Assessment District No. 88-1 (Reservoir Hill Assessment Dist.) - RCA September 7, 1988 Page 2 Present customers who will benefit Several properties in the area have water from the assessment district when service for a single home on a large their property is fully developed. undeveloped property. Other properties receive water service for oil uses or commercial uses which will surely be replaced by more intense development in the future. These properties are proposed to be assessed. Two informational meetings were held, with all affected property ownerers invited to participate. There have been no negative reactions to the proposed district. FUNDING SOURCE: Assessment District Number 88-1 (Reservoir Hill) ALTERNATIVES: 1. Install the necessary water facilities with City water funds. 2. Require water lines to be installed by developers. 3. Do nothing. ATTACHMENTS: 1. Petition 2. Boundary Map 3. Resolution Number Making Findings on Petition. 4. Resolution Number Making Appointments 5. Resolution Number Adopting Proposed Boundary Map 6. Resolution Number ,�9�b Declaring Intention to Form Assessment District Number 88-1 (Reservoir Hill) PEC:LFS:JR:dw 1776g PETITION AND WAIVER FOR SPECIAL ASSESSMENT PROCEEDINGS 1. We, the undersigned, are the property owners of land shown on the map attached as Exhibit "A" and made a part of this document. 2. We petition you to undertake special assessment proceedings for the following described public improvements; The construction and installation of water line improvemens (12" through 18"), together with appurtenances and appurtenant work to serve and benefit properties located within the boundaries of Assessment District No. 88-1 (Reservoir Hill). 3. We understand: A. THAT the cost of the improvements will be charged to the land which benefits from the improvements, including our land; B. THAT a report will be prepared on the project, including plans and specifications, a detailed cost estimate, and a division of the costs among the benefited parcels of land, and that you will conduct a public hearing on the report; C. THAT the cost of engineering, legal and other incidental expenses will be included in the project cost; D. THAT each property owner may pay his assessment either in cash without interest or installments with interest over a period of years. 4. We consent to other appurtenant work and acquisition that is, in the opinion of the legislative body, necessary to properly effectuate said improvements, and we hereby expressly waive the proceedings required and all limitations under the "Special Assessment Investigation, Limitation and Majority Protest Act of 1931", being Division 4 of the Streets and Highways Code of the State of California. 5. We hereby further request that all efforts and attempts be made so that said proceedings and the Resolution of Intention can be adopted at the earliest time. 6. We agree to dedicate all required rights-of-way or easements necessary for the works of improvements, all dedications to be accomplished before the ordering of the improvements. i-Y THE UNDERSIGNED HEREBY CERTIFY UNDER PENALTY OF PERJURY THAT THEY ARE THE OWNERS OF RECORD OF THE PROPERTY AS SET FORTH HEREIN. NAME OF PROPERTY DATE OF OWNER AND STREET LEGAL DESCRIPTION OR SIGNING ADDRESS COUNTY TAX PARCEL NO. SIG Huntington Beach Co. 11021008 2120 Main Street 11021009 Suite 260 11020017 Huntington Beach, CA 11020018 92648 11020022 11001556 77 11023008 11020029 11107218 11107204 11107215 11113010 11113016 11113017 11113018 11113019 11115047 15928101 15928102 11115026 11115027 11115028 11115029 11115031 11115032 11115040 02301012 11107202 11107203 11107205 11107207 11107208 11107209 11107210 11107211 11107212 11107220 11107222 11107223 11115033 11114030 11114031 15928105 11001557 11020010 11020019 Petition Page 2 NAME OF PROPERTY DATE OF OWNER AND STREET LEGAL DESCRIPTION OR SIGNING ADDRESS COUNTY TAX PARCEL NO. SIGNATURE 02301013 11113021 11020020 02318129 15931102 15931103 15931104 15931105 15931106 15931107 15919101 15919102 15919103 11113020 11113022 11113023 11114028 11114029 11114032 11114033 11114034 11114035 11115018 11115022 11115023 11115044 15928212 11020011 FIELD IN THE OFFICE OF THE CITY CLERK THIS p7*W DAY OF 1988. Said petition represents 72.2 % of the assessable area, as shown on the attached map. City Clerk City of Huntington Beach State of California STATE OF CALIFORNIA ) ss. COUNTY OF ORANGE ) On this day of August 1988, before me, the undersigned, a Notary Public in and for said State, personally appeared ----R -J-.---Work-- -- - and ------A J-:-Glark------ , known to me or proved to me on the basis of satisfactory evidence to be the ---V-ice-----Presiden-t and -Assistan-t--Secreta-ry-- , respectively, of HUNTINGTON BEACH COMPANY, which executed the within instrument, and -personally known to me to be the persons whose names are subscribed to the within instrument on behalf of such corporation, and acknowledged to me that such corporation executed the same pursuant to its by-laws or a resolution of its Board of Directors. WITNESS my hand and official seal. i Signature: Qwz_L_0--- --T °` OFFICIAL SEAL JAC30E J. LOPEZ ..� Notary Piave Celttomla ORANGE COUNTY .......,.. My Comm.EXP.Qa.13,199Q -- _..------ ._-._Jackie -J-:-L-ope z------------�--- _ Name (typed or printed) (This area reserved for official seal) My commission expires: -- 19.11-3-i9 -- CERTIFICATE OF SUFFICIENCY OF PETITION STATE OF CALIFORNIA COUNTY OF ORANGE CITY OF HUNTINGTON BEACH LES EVANS, the undersigned, hereby CERTIFIES as follows: That I am the duly appointed CITY ENGINEER of the CITY OF HUNTINGTON BEACH, CALIFORNIA. That on the 1st day of September , 1988, I reviewed a Petition and Waiver 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. 88-1 (RESERVOIR HILL) (hereinafter referred to as the "Assessment District") , a copy of which is on file in the Office of the City Clerk. That I caused said Petition and Waiver to be examined and my examination revealed that said Petition and Waiver has been signed. by property owners representing more than sixty (60%) percent of the assessable area of lands within the boundaries of the proposed Assessment District, all as prescribed by Section 2804 of the Streets and Highways Code of the State of California ("Special Assessment Investigation, Limitation and Majority Protest Act of 193111) . That said Petition and Waiver did represent sevErty to point tko ( 72.2 %) percent of the assessable area of property within the boundaries of the Assessment District. That said Petition and Waiver meets the requirements of Section 2804 of the Streets and Highways Code of the State of California. / Executed this day of �J pp e)o4ern btr 1988, at Huntington Beach, California. - CITY ENGINEER CITY OF HUNTINGTON BEACH STATE OF CALIFORNIA PETITION AND WAIVER FOR SPECIAL ASSESSMENT PROCEEDINGS 1. We, the undersigned, are the property owners of land shown on the map attached as Exhibit "A" and made a part of this document. 2. We petition you to undertake special assessment proceedings for the following described public improvements; The construction and installation of water line improvemens (12" through 18"), together with appurtenances and appurtenant work to serve and benefit properties located within the boundaries of Assessment District No. 88-,1 (Reservoir Hill). 3. We understand: A. THAT the cost of the improvements will be charged to the land which benefits from the improvements, including our land; B. 1-HiA F a report will ne prepared on the project, including plans and specifications, a detailed cost estimate, and a division of the costs among the benefited parcels of land, and that you will conduct a public hearing on the report; C. THAT the cost of engineering, legal and other incidental expenses will be included in the project cost; U. THAT each property owner may pay his assessment either in cash without interest or installments with interest over a period of years. `t. `:Ve consent to other appurtenant work and acquisition that is, in the opinion of the legislative body, necessary to properly effectuate said improvements, and we hereby expressly waive the proceedings required and all limitations under the "Special Assessment Investioation, Limitation and Majority Protest Act of 1931", being Division 4 of the Streets and Highways Code of the State of California. 5. We hereby further request that all efforts and attempts be made so that said proceedings and the Resolution of Intention can be adopted at the earliest time. 6. We agree to dedicate all required rights-of-way or easements necessary for the works of improvements, all dedications to be accomplished before the ordering of the improvements. i THE UNDERSIGNED HEREBY CERTIFY UNDER PENALTY OF,PERJURY THAT THEY ARE THE OWNERS OF RECORD OF THE PROPERTY ASSET FORTH HEREIN. NAME OF PROPERTY DATE OF OWNER AND STREET LEGAL DESCRIPTION OR ; SIGNING ADDRESS COUNTY TAX PARCEL NO. SIGN Huntington Pacific Corp. 11020013 - ./ 2120 Main Street 11107214 Suite 260 11107217 / Huntington Beach, CA 11107221 92648 FIELD IN THE OFFICE OF THE CITY CLERK THIS DAY OF , 1988. - - Said petition represents 2.4 % of the assessable area, as shown on the attached map. i City Clerk City of Huntington Beach State of California STATE OF CALIFORNIA ) ss. COUNTY OF ORANGE ) � T On this _ day of -August 1988, 'before me, the undersigned, a Notary Public in and for said State, personally appeared - - R. J. Work- and -- -A. J. Clark - known to me or proved to me on the basis of satisfactory evidence to be the Vice President and Assistant Secretary , respectively, of HUNTINGTON PACIFIC CORPORATION, which executed the within instrument, and personally known to me to be the persons whose names are subscribed to the within instrument on behalf of such corporation, and acknowledged to me that such corporation executed the same pursuant to its by-laws or a resolution of its Board of Directors. WITNESS my hand and official seal. Signature: �� -.C�-� OFFICIAL SEAL JACKIE J. LOPEZ d Notary"t-catitomla � ORANGE COUNTY • Mr OMM.UP Oct. 13, +aso Jackie J. Lopez - Name (typed or printed) (This area reserved i for official seal) My commission expires: 10/13/90 - 1 CERTIFICATE OF SUFFICIENCY dF PETITION STATE OF CALIFORNIA COUNTY OF ORANGE CITY OF HUNTINGTON BEACH LES EVANS, the undersigned, hereby CERTIFIES as follows: That I am the duly appointed CITY ENGINEER of the CITY OF HUNTINGTON BEACH, CALIFORNIA. That on the 1st day of . September 1988, I reviewed a Petition and Waiver 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. 88-1 (RESERVOIR HILL) (hereinafter referred to as the "Assessment District") , a copy of which is on file in the Office of the City Clerk. That I caused said Petition and Waiver to be examined and my examination revealed that said Petition and Waiver has been signed by property owners representing more than sixty (60%;) percent of the assessable area of lands within the boundaries of the proposed Assessment District, all as prescribed by Section 2804 of the Streets and Highways Code of the State of California ("Special Assessment Investigation, Limitation and Majority Protest Act of 1931" ) . That said Petition and Waiver did represent two point four ( 2 . 4 $) percent of the assessable area of property within the boundaries of the assessment District. That said Petition and Waiver meets the requirements of Section 2804 of the Streets and Highways Code of the State of California. 3'T I� Executed this day of e P 4f'^ Qor 1988, at Huntington Beach, California. CITY ENGINEER CITY OF HUNTINGTON BEACH STATE OF CALIFORNIA PETITION AND WAIVER FOR SPECIAL ASSESSMENT-PROCEEDINGS 1. We, the undersigned, are the property owners of land shown on the rnap attached as Exhibit "A" and made a part of this document-. 2. We petition you to undertake special assessment proceedings for the following described public improvements; The construction and installation of water line improvemens (12" through 18"), together with appurtenances and appurtenant, work to serve and benefit properties located within the boundaries of Assessment District No. 88-I (Reservoir Hill). 3. We understand: A. THAT the cost of the improvements will be charged to the land which benefits from the improvements, including our land; B. THAT a report will be prepared on the project, including plans and specifications, a detailed cost estimate, and a division of the costs among the benefited parcels of land, and that you will conduct a public hearing on the report; C. THAT the cost of engineering, leo_al and other incidental expenses will be includes' in the project cost; D. THAT each property owner may pay his assessment either in cash without interest or installments with interest over a period of years. 4. We consent to other appurtenant work and acquisition that is, in the opinion of the legislative body, necessary to properly effectuate said improvements, and we hereby expressly waive the proceedings required and all limitations under the "Special Assessment Investigation, Limitation and N-iajority Protest Act of 1931", being Division 4 of the Streets and Highways Code of the State of California. 5. We hereby further request that all efforts and attempts be made so that said proceedings and the Resolution of Intention can be adopted at the earliest time. 6. We agree to dedicate all required rights-of-way or easements necessary for the works of improvements, all dedications to be accomplished before the ordering of the improvements. i THE UNDERSIGNED HEREBY CERTIFY UNDER PENALTY OF PERJURY THAT THEY ARE THE OWNERS OF RECORD OF THE PROPERTY -AS SET FORTH HEREIN. NAtAE OF PROPERTY DATE OF OWNER AND STREET LEGAL DESCRIPTION OR SIGNING ADDRESS COUNTY TAX PARCEL NO. SIG Huntington Beach-Co: 11021008 2120 Main Street 11021009 Suite 260 11020017 Huntington Beach, CA 11020018 92648 11020022 11001556 11023008 - 11020029 11107218 - 11107204 11107215 11113010 11113016 11113017 11113018 11113019 11115047 15928101 15928102 11115026 11115027 11115028 11115029 11115031 11115032 11115040 02301012 11107202 11107203 11107205 11107207 11107208 11107209 11107210 _ 11107211 11107212 11107220 11107222 11107223 11115033 11114030 11114031 15928105 11001557 11020010 11020019 Petition Page 2 NAME OF PROPERTY DATE Or `' OWNER AND STREET LEGAL DESCRIPTION OR SIGNING ADDRESS COUNTY TAX PARCEL NO. SIGNATURE 02301013 11113021 11020020 02318129 15931102 15931103 15931104 15931105 15931106 15931107 15919101 15919102 15919103 11113020 ' 11113022 11113023 11114028 11111029 It114032 11114033 11114034 11114035 11115018 11115022 11115023 11115044 15928212 11020011 FIELD IN THE OFFICE OF THE CITY CLERK THIS 07AW DAY OF 1988. �- Said petition represents 72.2 % of the assessable area, as shown on the attached map. City Clerk City of Huntington Beach State of California STATE OF CALIFORNIA ) ss. COUNTY OF ORANGE ) On this day of August 1988, before me, the undersigned, a Notary Public in and for said State, personally appeared R. J. Work and A. J. Clark - , known to me or proved to me on the basis of satisfactory evidence to be the Vice President and Assistant--Secretary , respectively, of HUNTINGTON BEACH COMPANY, which executed the within instrument , and personally known to me to be the persons whose names are subscribed to the within instrument on behalf of suc:: corporation. , and acknowledged to me that such corporation executed the same pursuant to its by-laws or a resolution of its Board of Directors. WITNESS my hand and official seal. i Signature: --i. Cl .C:_ OFFICIAL SEAL ' JACKIE J. LOPEZ ' •—d Notary PUM- ;aptomla ?#� ORANGE OOUNTY Mr Comm.EXP.Oct. 13.19W Jackie J.-- Lopez - Name (typed or printed) (This area reserved for official seal) IV commission expires: 10/13/90 CERTIFICATE OF SUFFICIENCY OF PETITION STATE OF CALIFORNIA COUNTY OF ORANGE CITY OF HUNTINGTON BEACH LES EVANS, the undersigned, hereby CERTIFIES as follows: That I am the duly appointed CITY ENGINEER of the CITY OF HUNTINGTON BEACH, CALIFORNIA. That on the 1st day of September 1988, I reviewed a Petition and Waiver 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. 88-1 (RESERVOIR HILL) (hereinafter referred to as the "Assessment District") , a copy of which is on file in the Office of the City Clerk. That I caused said Petition and Waiver to be examined and my examination revealed that said Petition and Waiver has been signed by property owners representing more than sixty (60%) percent of the assessable area of lands within the boundaries of the proposed Assessment District, all as prescribed by Section 2804 of the Streets and Highways Code of the State of California ("Special Assessment Investigation, Limitation and Majority Protest Act of 1931") . That said Petition and Waiver did represent sty tkO paint tWD ( 72.2 %) percent of the assessable area of property within the boundaries of the. Assessment District. That said Petition and Waiver meets the requirements of Section 2804 of the Streets and Highways Code of the State of California. / Executed this I day of • elofien, b1r 1988, at Huntington Beach, California. CITY ENGINEER CITY OF HUNTINGTON BEACH STATE OF CALIFORNIA i ENGINEER'S "REPORT" PART V DESCRIPTION OF RIGHTS-OF-WAY TO BE ACQUIRED RIGHT-OF-WAY CERTIFICATE STATE OF CALIFORNIA COUNTY OF ORANGE CITY OF HUNTINGTON BEACH The undersigned hereby CERTIFIES UNDER PENALTY OF PERJURY that the following is all true and correct. At all times herein mentioned, the undersigned was, and now is, the duly appointed CITY ENGINEER of the CITY OF HUNTINGTON BEACH, CALIFORNIA. That there have now been instituted proceedings under the provisions of the "Munici- pal Improvement Act of 1913", being Division 12 of the Streets and Highways Code of the State of California, for the construction of certain public improvements in a special assessment district known and designated as ASSESSMENT DISTRICT NO. 88-1 (RESERVOIR HILL) (hereinafter referred to as the "Assessment District" ) . THE UNDERSIGNED STATES AND CERTIFIES AS FOLLOWS: (check one) [ a. That all easements, rights-of-way, or land necessary for the accomplish- ment of the works of improvement for the above referenced Assessment District have been obtained and are in the possession of the City. ( ) b. That all easements, rights-of-way or land necessary for the accomplishment of the works of improvement for the above referenced Assessment District have been obtained and are in the possession of the City, EXCEPT FOR THOSE DESCRIBED IN EXHIBIT "A" attached hereto, showing legal description and maps of rights-of-way and easements not yet obtained at this time. It is further acknowledged that works of improvement as proposed to be constructed within said Assessment District must be constructed within public rights-of-way, land, or easements as owned by said City at the time of the construction of the works of improvement, and the undersigned hereby further certifies that all rights-of-way necessary for the works of improvement will be obtained and in the possession of the City prior to the commencement of any construction. EXECUTED this ! day of 10tem Cr , 1988, at en , California. CITY ENGINEER CITY OF HUNTINGTON BEACH STATE OF CALIFORNIA ORDER OF PROCEDURE CITY OF HUNTINGTON BEACH ASSESSMENT DISTRICT NO. 88-1 (RESERVOIR HILL) DATE OF MEETING: SEPTEMBER 19, 1988 STAFF: General presentation as to boundaries of Assessment District and extent of works of improvement. CITY COUNCIL: Adopt RESOLUTION MAKING FINDINGS ON PETITION: Formal action and acceptance of Petition submitted by property owners. CITY COUNCIL: Adopt RESOLUTION MAKING APPOINTMENTS: Formal appointment of Superintendent of Streets, newspaper, etc. CITY COUNCIL: Adopt RESOLUTION ADOPTING PROPOSED BOUNDARY MAP: Formal action approving boundaries of proposed Assessment District. CITY COUNCIL: Adopt RESOLUTION OF INTENTION: Jurisdictional Resolution under "1913 Act" proceedings, declaring intent to finance improvements through the issuance of bonds. PROPOSED SCHEDULE: SEPTEMBER 19, 1988: ADOPT JURISDICTIONAL RESOLUTIONS OCTOBER 17, 1988: AUTHORIZING BIDDING ON WORKS OF IMPROVEMENT AND REQUEST PROPOSAL FOR SALE OF BONDS NOVEMBER 16, 1988: DATE FOR RECEIPT OF CONSTRUCTION BIDS DECEMBER 5, 1988: PUBLIC HEARING TO CONSIDER THE FOLLOWING: A. CONFIRMATION OF ASSESSMENT DISTRICT B. ORDERING IMPROVEMENTS PETITION AND WAIVER FOR SPECIAL ASSESSMENT PROCEEDINGS 1. We, the undersigned, are the property owners of land shown on the map attached as Exhibit "A" and made a part of this document. 2. We petition you to undertake special assessment proceedings for the following described public improvements; The construction and installation of water line improvemens (12" through 18"), together with appurtenances and appurtenant work to serve and benefit properties located within the boundaries of Assessment District No. 88-1 (Reservoir Hill). 3. We understand: A. THAT the cost of the improvements will be charged to the land which benefits from the improvements, including our land; B. THAT a report will be prepared on the project, including plans and specifications, a detailed cost estimate, and a division of the costs among the benefited parcels of land, and that you will conduct a public hearing on the report; C. THAT the cost of engineering, legal and other incidental expenses will be included in the project cost; D. THAT each property owner may pay his assessment either in cash without interest or installments with interest over a period of years. 4. We consent to other appurtenant work and acquisition that is, in the opinion of the legislative body, necessary to properly effectuate said improvements, and we hereby expressly waive the proceedings required and all limitations under the "Special Assessment Investigation, Limitation and Majority Protest Act of 1931", being Division 4 of the Streets and Highways Code of the State of California. 5. We hereby further request that all efforts and attempts be made so that said proceedings and the Resolution of Intention can be adopted at the earliest time. 6. We agree to dedicate all required rights-of-way or easements necessary for the works of improvements, all dedications to be accomplished before the ordering of the improvements. THE UNDERSIGNED HEREBY CERTIFY UNDER PENALTY OF PERJURY THAT THEY ARE THE OWNERS OF RECORD OF THE PROPERTY AS SET FORTH HEREIN. NAME OF PROPERTY DATE OF OWNER AND STREET LEGAL DESCRIPTION OR SIGNING ADDRESS COUNTY TAX PARCEL NO. SIG Huntington Pacific Corp. 11020013 2120 Main Street 11107214 Suite 260 11107217 _ Huntington Beach, CA 11107221 92648 FIELD IN THE OFFICE OF THE CITY CLERK THIS DAY OF , 1988. Said petition represents 2.4 % of the assessable area, as shown on the attached map. City Clerk City of Huntington Beach State of California STATE OF CALIFORNIA ) ss. COUNTY OF ORANGE ) s 7` On this / day of -----Au us-t----- 1988, before me, the undersigned, a Notary Public in and for said State, personally appeared and - -A:--J: Clark----- known to me or proved to me on the basis of satisfactory evidence to be the Vice- President and Assistant---Secretary_. , respectively, of HUNTINGTON PACIFIC CORPORATION, which executed the within instrument, - and personally known to me to be . the persons whose names are subscribed to the within instrument on behalf of such corporation, and acknowledged to me that such corporation executed the same pursuant to its by-laws or a resolution of its Board of Directors. WITNESS my hand and official seal. Signature: .• , OFFICIAL SEAL JACKIE J. LOPEZ Notary Public-Callfomla ORANGE COUNTY MY Comm.Exp.Oct. 13. tsso ---- --- - _----..-.Jackie-J- L-opez--- - ---- -- - Name (typed or printed) (This area reserved for official seal) My commission expires: --- 1-0/1-3/90- - CERTIFICATE OF- SUFFICIENCY OF PETITION STATE OF CALIFORNIA COUNTY OF ORANGE CITY OF HUNTINGTON BEACH LES EVANS, the undersigned, hereby CERTIFIES as follows: That I am the duly appointed CITY ENGINEER of the CITY OF HUNTINGTON BEACH, CALIFORNIA. That on the 1st day of September 1988, I reviewed a Petition and Waiver 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. 88-1 (RESERVOIR HILL) (hereinafter referred to as the "Assessment District") , a copy of which is on file in the Office of the City Clerk. That I caused said Petition and Waiver to be examined and my examination revealed that said Petition and Waiver has been signed by property owners representing more than sixty (60%) percent of the assessable area of lands within the boundaries of the proposed Assessment District, all as prescribed by Section 2804 of the Streets and Highways Code of the State of California ("Special Assessment Investigation, Limitation and Majority Protest Act of 1931") . That said Petition and Waiver did represent two point four ( 2 . 4 %) percent of the assessable area of property within the boundaries of the Assessment District. That said Petition and Waiver meets the requirements of Section 2804 of the Streets and Highways Code of the State of California. Yr Executed this / day of 110 em i or- 1988, at Huntington Beach, California. CITY ENGINEER - CITY OF HUNTINGTON BEACH STATE OF CALIFORNIA THEE.:Cit ` Q F HtU�l TIIN�G tfox FB� ACH t)TICS ,I PUBLIC NOTICE i. PUBLIC NOTICE NOTICE OF PUBLIC HEARII,`--, CITY OF HUNTINGTON BEAY_.A) REGARDING THE ESTABLISHMENT OF A FEE FOR PROCESSING DIVISIONS OF LAND WITHIN ASSESSMENT DISTRICT 88-1 "RESERVOIR HILL ASSESSMENT DISTRICT" This public hearing was originally scheduled for 9/5/89 and was continued open,to various meetings and will now be heard on November 20, 1989. , Notice is hereby given that a public hearing will be held by the City Council of the City of Huntington Beach: DATE: November 20, 1989 TIME:7:00 p.m.,(or as soon thereafter as possible) PLACE: City Council Chambers, 2000 Main Street, City of Huntington Beach Civic Center To consider the following Resolution: RESOLUTION NO.6064 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH ESTABLISHING A FEE FOR PROCESSING LAND AND ASSESSMENT DIVISION APPLICATIONS PURSUANT TO THE PROVISIONS OF THE "IMPROVEMENT BOND ACT OF 1915", BEING DIVISION 10 OF THE STREETS AND HIGHWAYS CODE OF THE STATE OF CALIFORNIA., WHEREAS, the City Council of the City of Huntington Beach, California, has recently completed proceedings for the construction of certain public improvements in what,is known and designated as ASSESSMENT DISTRICT NO.88-1 (hereinafter referred to as the "Assessment District"), pursuant to the provisions of the Division 12,of the Streets and Highways Code of the State of California, with bonds to issue under the terms and provisions of the "Improvement Bond Act of 1915", being Division 10 of said Code; and, Assessments have been levied and bonds issued on.certain parcels of property and it is determined that certain of the original parcels will be divided and requests and applications will be made for the division of assessments on the divided lots or parcels,all according to provisions in said "Improvement Bond Act of 1915";and, This legislative body is desirous of establishing a reasonable fee for processing applications for division of land assessment in order to be reimbursed for the necessary costs so incurred as set forth in said "Improvement Bond Act of 1915". NOW,THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: SECTION 1.That the above recitals are all true and.correct. S'ECTION.2. That the following fee schedule is hereby determined to be reasonable and is an amount which will cover reimbursement for the necessary costs in processing applications for divisions of land and assessment pursuant to the"Improvement Bond Act of 1915",being Division 10 of the Streets and Highways Code of the State of California: A. All applications for division of land and assessment shall be accom- panied by a fee of$50.00 for each separate part or parcel of land into which the original lot or parcel has been divided. B. If no application is filed, at the time the Superintendent of streets files the amended assessment pursuant to order of this legislative'body,the fee is- determined to be$100.00 for each separate part or parcel of land into which the original lot or parcel has been divided. Prior to making the division, the Superintendent of Streets shall notify the property owner as to the costs for the appointment.In the event the costs are not paid within fifteen(15)days of notification,the Superintendent of Streets shall, in preparing the amended Assessment,show separately thereon the amount of said fee charged to each individual parcel. The amount so charged shall then be entered, if not paid, upon the assessment roll and collected along with the first installment of the amended assessment. SECTION 3. That all fees.so collected, either by application or.as an installment on the assessment,are to be deposited in the General Fund of the Treasury of this Agency. The public is invited to attend and provide the City Council with written and oral comments and ask questions concerning proposed City's Fees. CONTACT PERSON: LOUIS SANDOVAL Director of Public Works 2000 Main Street Huntington Beach,CA 92648 , Phone:(714)536-5432 CITY OF HUNTINGTON BEACH by:Connie Brockway,City Clerk DATED,:9/14/89 Pblished Orange Coast Daily Pilot November 9, 1989 th885 Avtr.o+uc� tc PvD::a� ap.sr:rs^tishtf a' ar + -c1.,Dn- pun%0. �—' notrctr• by Docfv* of th• Superior Court anp• 1ounty. Calrfornra. Nurn"r. A-6214. dotod ?4 SaDtamp�r, 1961. and A-24831. Baled 11 June. 1963 -- STATE OF CALIFORNIA County of Orange .,,e.c «o.cr. .e..e+..rp C~W - ti �I l I am a Citizen of the United States and a resident of A ; the County aforesaid-. I am over the age of eighteen years. and not a party to or interested in the below entitled matter. I am a principal clerk of the Orange Coast DAILY PILOT, with which is combined the NEWS-PRESS. a newspaper of general circulation, printed and 'published 1n the City of Costa Mesa. County of Orange. State of California, and that a Notice of Public Hearing of which copy attached hereto is a true and complete copy, was printec and published to the Costa Mesa. Newport Beach. Huntington Beach, Fountain Valley, Irvine. the South Coast communities and Laguna Beach issues of said newspaper for 1 time Consecutive weeks to will the issue(s) of November 9 t98 9 198 196 19E 198 1 declare, under penalty of perjury, that the foregoing is true and correct. Executed on November 9 198 9 at Costa Mesa, California. Signature PROOF OF PUBLICATION � l REQUEST FOR CITY COUNCIL ACTION Date November 20, 1989 Submitted to: Honorable Mayor and City Council Submitted by: Paul E. Cook, City Administrato;)'�--� iol�lol ��I� �,y✓' Prepared by: Louis F. Sandoval, Director of Public Works LO �� RESOLUTION NO 6064 ESTABLISHING A FEE FOR PROCESSING TA l,11 Subject: ASSESSMENT DISTRICT LAND DIVISION Consistent with Council Policy? (x9 Yes [ ] New Policy or Exception Statement of Issue, Recommendation,Analysis, Funding Source,Alternative Actions,Attachments: STATEMENT OF ISSUE: The City has continuing administrative duties to assure bonds issued in the Reservoir Hill Assessment District are properly paid. RECOMMENDATION: Adopt Resolution No. 6064 establishing a fee to offset the costs of respreading assessments when land within the Reservoir Hill Assessment District is divided. ANALYSIS: On December 5, 1989, the City Council formed the Reservoir Hill Assessment District (88-1) and imposed assessment on parcels within the district to pay for construction.of water lines. As subdivisions within the district are approved, assessments must be respread, bondholders notified and amended assessments and maps filed with the County Auditor. For the past eight months, City staff has been providing this service at no cost to the developer. With the possibility that many new subdivisions will be approved in the next few years, staff feels that it would be appropriate to establish a fee for respreading and recording assessments. The Huntington Beach Company has requested that the fees be paid prior to recordation of the final map rather than at the time of application for division of land. An alternative resolution has been prepared to reflect their request. FUNDING SOURCE: Personnel costs offset by revenue to the General Fund. ALTERNATIVE ACTION: Do not adopt fees and continue to provide the assessment respreading at no cost to the developer. ATTACHMENTS- Resolution PEC:LFS:LGE:dw 2236g/l1 Plo 5/85 RESOLUTION NO . � . RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH ESTABLISHING A FEE FOR '' PROCESSING LAND AND ASSESSMENT DIVISION APPLICATIONS PURSUANT TO THE PROVISIONS OF THE " IMPROVEMENT BOND ACT OF' 1.915" , BEING DIVISION 10 OF THE STREETS AND HIGHWAYS CODE OF THE STATE OF CALIFORNIA �i. i� WHERL.AS , the City Council of the City of Huntington Beach , 'I C;; 1 ifornia , has recent 1y completed proc /District" ) c .n�uction �� i r l 11: ri.n I)rit� l. ic improvements in what: signated as i ASSESSMENT DISTRIC ( hereinafter referred to as the "Assess ) , pursuant= tothe provisions of i:he "Municipal Improv13 " , being Division 1.2 of the Streets and Highw ys Code of the State of C<il. ifornia , with bonds to issue un er the terms and provisions of. I.-.he " Improvement Bond Act of 19 being Division 10 of said Code ; Assessment~ have been levied and bonds issued on certain � arr r l � of property and it is determined that certain of the oriqiryal parcels will be i.vided , and requests and applications will b made for the di /1E of assessments on the divided lots or piltf.—els , all accoro provisions in said " Improvement Bond Act 19) 15 " ; and , This legisl. body is desirous of establishing a i � e� isonab.1e fce f.�rssing applications for division of land i �i f assessrr,ent: in order to be reimbursed for the necessary costs so uncurred as set f ' rth in said " Improvement Bond Act of 1.915 " . ' I NOW, THEREFORE , IT IS HEREBY RESOLVED AS FOLLOWS : SECTI0N 1 . That the above recitals are all true and correct . i SECTION 2 . That the following fee schedule is hereby determined to be reasonable and is an amount which wiII cover reimbursement: for i:he necessary c nst�; in processing applications for divisions of l rind I1 Mid assessment: pursuant. to the " Improvement Bond Act of 191.5" , bF�i.ng i I Division 10 of: the Streets and Highways Code of the State of ti Ca .1i. fornia : A . A]. l. applications for division of land and assessment , shall be accompanied by a fee of $50 . 00 for each separate part or parcel of land into which the original lot or parcel has been divided . I B . If no application is filed , at the time the Superintendent of Streets files the amended assessrnenL pursuant. Lo order of this . legislati.ve body , the fee Ls determined to be $100 . 00 for each separate part or i parcel of land into which the original lot or parcel has been divided . Prior to making the division , the. Superintendent of Streets shall. notify the property owner as to the costs for the apportionment . In the #� event the costs are not paid within fifteen ( 15) days of notification , the Superintendent of Streets shall , in preparing the amended assessment , show separately �I thereon the amount: of said fee charged to each i individual parcel . The amount so charged shall Cher, entered , if not paid , upon the assessment roll and �i i collected along with the first installment of the t amended assessment . - ` SECTION 3 That all fees so collected, either by application o,: as j an installment on the assessment , are to be deposited -2- �3 i � i ' r in the General Fund of the Treasury of this Agency . `:, PASSED AND ADOPTED by the City Council of the City of HLInL.ington Beach at. a regular meeting held thereof on the day of t9E39 Mayor ATTI ST : APPROVED AS TO FORM : ----------- - --- -- -- - - --- Ci. t:y Clerk City Attorney -7 _ �y (:f?VIEWED AND APPROVED : INITIATED ND APPROVED : i City A7mini.str. ator Director of Public Works -3- l NOT1".OF PUBLIC HEARING l F fRTY d HUNT11 NGT�O : B"E A C RARDING THE ESTABLISHMErTt OF A FEE FOR PROCESSING DIVISIONS OF LAND WITHIN ASSESSMENT DISTRICT 88-1 "RESERVOIR HILL ASSESSMENT DISTRICT" This public hearing was originally scheduled for 9/5/89 and was continued open to various meetings and will now be heard on November 20, 1989. Notice is hereby given that a public hearing will be held by the City Council of the City of Huntington Beach: DATE: November 20, 1989 - TIME; 7:00 p.m., (or as soon thereafter as possible) PLACE: City Council Chambers, 2000 Main Street, City of Huntington Beach Civic Center I To consider the following Resolution: RESOLUTION NO. 6064 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH ESTABLISHING A FEE FOR PROCESSING LAND AND ASSESSMENT DIVISION APPLICATIONS PURSUANT TO THE PROVISIONS OF THE ''IMPROVEMENT BOND ACT OF 1915'',BEING DIVISION 10 OF THE STREETS AND HIGHWAYS CODE OF THE STATE OF CALIFORNIA. WHEREAS, the City Council of the City of Huntington Beach. California, has recently completed proceedings for the construction of certain public improvements in what is known and designated as ASSESSMENT DISTRICT NO. 88-1 • (hereinafter referred to as the "Assessment District''), pursuant to the provisions of the Division 12 of the Streets and Highways Code of the State of California, with bonds to issue under the terms and provisions of the ''Improvement Bond Act of 1915'', being Division 10 of said Code-, and, Assessments have been.levied and bonds issued on certain parcels of property and it is determined that certain of the original parcels will be l divided and requests and applications will be made for the division..of assessments on the divided lots or parcels, all according to provisions in sagid,, -Improvement Bond Act of 1915"; and, This legislative body is desirous of establishing a reasonable fee for processing applications for division of land assessment in order to be reimbursed for the necessary costs so incurred as` set forth in said "Improvement Bond Act of 19 15". NOW, THEREFORE, 1T IS HEREBY RESOLVED AS FOLLOWS: SECTION 1. That the above recitals are all true and correct. SECTION 2. That the following fee schedule is hereby determined to be ,reasonable and is an amount which will cover reimbursement for the necessary costs in processing applications for divisions of land and assessment pursuant to the ''Improvement Bond Act of 1915", being Division 10 of the Streets and Highways Code of the State of California: '—` A. All applications for division of land and assessment shall be accom- panied by a fee of $50.00 for each separate part or parcel of land into which the original lot or parcel has been divided. B. If:no application is filed, at the time the Superintendent of streets files the amended assessment pursuant to order of this legislative body, the fee is deterrn'ined to be $100.00 for each separate part or parcel of land into which the original lot or parcel has been divided. Prior to making the division, the _ Superintendent of Streets shall notify the property,owner as to the costs for event the costs are not aid within fifteen 15 days of " notification"-theupe-Srintendent of Streets sl—iafl; in preparing' the amen�iuG';==; - •�a_ _ _, assessment,show separately thereon the amount of said fee charged to each individual parcel. The amount so charged shall then be entered, if not paid, Rrt upon the assessment roll and collected along with the first installment of the j amended assessment. SECTION 3. That all fees so collected, either by application or as an ; installment on the assessment, are to be deposited in the General Fund of the ' Treasury of this Agency. i The public is invited to attend and provide the City Council with written and oral comments and ask questions concerning proposed City's Fees. i CONTACT PERSON: LOUIS SANDOVAL Director of Public Works 2000 Main Street Huntington Beach, CA 92648 Phone: (714) 536-5432 CITY OF HUNTINGTON BEACH by: Connie'Brockway, Clty Clerk t f ' ` REQUES t FOR CITY COUNCIL ACTION Date n,,gii c t l QRQ Submitted to: Honorable Mayor and City ('onnc:il Submitted b 1L .��- y F aryl E. Gook, City Administrator Prepared by: : Louis F. Sandoval, r)irector of Public Works Subject: RESOLUTION NO. 60_ " ESTABLISHING A FEE FOR PROCESSING ASSESSMENT DISTRICT LAND DIVISIONS -k�Consistent with Council Policy? ] Yes [ ] New Policy or Exception 0(0 QjQ/ Lo Statement of Issue, Recommendation, Analysis, Funding Source, Alternative Actions, Attachments: STATEMENT OF ISSUE: l he City has cobtinuing administrative duties to assure honds issued in the Reservoir Hill Assessment District are properly maid. RI. CoMMENDATION: Ad')pt Pe,,ohition No. 60 H est:ihllshlngg a fee to offset the, costs of resprearting ll r ,,essinents when land within the Reservoir dill Assessment District is divided. l ANALYSIS: On December 5, 1989, the City Council formed the Reservoir Hill Assessment District (fig--I ) and imposed assessments on parcels within the district to pay for construction of water lines. As subdivisions within the district are approved, assessments must he respread, hondholders notified anal amended assessments any' maps filers with the County Auditor. For the past eight months, City staff has been providing this service at no cost to the de.veloner. With the possihility that many new subdivisions will he approved in the next few years, staff feels that it would be appropriate to establish a fee for respreading rued recording .assessments. FUNDING SOURCE: Personnel costs offset by revenue to the General Fund. ALTERNATIVE ACTION: Do not adopt fees and continue to provide the assessment respreading at no cost to the rf�• velnper. A'.P'1'AC1-1MENTS r , ti RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH ESTABLISHING A FEE FOR PROCESSING LAND AND ASSESSMENT DIVISION APPLICATIONS PURSUANT TO THE PROVISIONS OF THE "IMPROVEMENT BOND ACT OF 1915" , BEING DIVISION 10 OF THE STREETS AND HIGHWAYS CODE OF THE STATE OF CALIFORNIA WHEREAS, the City Council of the City of Huntington Beach, California , has recently completed proceedings for the construction n( cort:a.in public improvements in what is known and designated as ASSESSMENT DISTRICT NO . 88-1 (hereinafter referred to as the "Assessment District" ) , pursuant to the provisions of the "Municipal Improvement Act of 1913 " , being Division 12 of the Streets and Highways Code of the State of California , with bonds to issue under the terms and provisions of the " Improvement Bond Act of 1915" , being Division 10 of said Code; and , Assessments have been levied and bonds issued on certain parcels of property and it is .determined that certain of the original parcels will be divided, and requests and applications will be made for the division of assessments on the divided lots or parcels , all according to provisions in said " Improvement Bond Act of 1915" ; and , This legislative body is desirous of establishing a i-easonable fee for processing applications for division of land assessment in order to be reimbursed for the necessary costs so incurred as set forth in said " Improvement Bond Act of 1915" . NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS : SECTION 1 . That the above recitals are all true and correct . SECTION 2 . That the following fee schedule is hereby determined to be reasonable and is an amount which will cover reimbursement for t:he necessary cnst:s in processing applications for divisions of Land and assessment pursuant: to the " Improvement Bond Act of 1915" , being Dl.vision 10 of the Streets and Highways Code of the State of California : A . All applications for division of land and assessment shall be accompanied by a fee of $50 . 00 for each separate part or parcel of land into which the original lot or parcel has been divided . B . If no application is filed, at the time the Superintendent of Streets files the amended assessment pursuant to order of this legislative body, the fee is determined to be $100 . 00 for each separate part or parcel of land into which the original lot or parcel has been divided . Prior to making the division, the Superintendent of Streets shall notify the property owner as to the costs for the apportionment . In the event the costs are not paid within fifteen ( 15) days of notification, the Superintendent of Streets shall , in preparing the amended assessment , show separately thereon the amount: of said fee charged to each individual parcel . The amount so charged shall then be entered , if not paid , upon the assessment roll and collected along with the first installment of the amended assessment . t SECTION 3 . That all fees so collected, either by application or as an installment on the assessment , are to be deposited -2- .3 in the General Fund of the Treasury of this Agency. PASSED AND ADOPTED by the City Council of the City of Huut_ington Beach at: a regular meeting held thereof on the day of _ - _--_--, 19 89 . Mayor------------------------------ ATTEST : APPROVED AS TO FORM: City Clerk City Attorney -7 _ v REVIEWED AND APPROVED: INITIATED ND APPROVED : 1 CityVAministrator Director of Public Works 40 ,3 a -3- - --- NO, a PUBLIC HEARING. :a1i(prn�e.• Fiumbor A=6211;'Cat"ed-29'Sep� 1961. and :,..a ,:, "':? 2<831. Cstod 1 i .June. 1963. CIT- JNTINGTON"BEACH - REGARDING.THE ESTABLISHMENT - - OF A:FEE FOR PROCESSING ;TATE OF CALiFORNtA DIVISIONS OF LAND WITHIN ASSESSMENT DISTRICT 88-1 :ounty of Orange ►m C Mo.� AA�- a-w C - .d bf u M o: � i "RESERVOIR HILL ASSESSMENT DISTRICT" Notice is hereby given that a public hearing will be held by the City Council of the City of Huntington Beach: am a Citizen.of the UNIed States and a resident of DATE: September-5, 1989 he Countyaforesaid; 1 am over the age 01 eighteen 'TIME: 7:00 p.m.,(or as soon thereafter as possible) 9 9 PLACE: City Council Chambers, 2000 Main Street, City of Huntington ears, and not a party to;5r interested in the below Beach Civic Center mlitled matter. 1 am a principal clerk of the Orange To consider the following Resolution: :oast DAILY PILOT. with which is combined the RESOLUTION NO.6064 4EWS-PRESS. a newspaper of general circulation. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH ESTABLISHING "A FEE. FOR PROCESSING LAND AND )rinted and published in the City of Costa Mesa. (ASSESSMENT.DIVISION APPLICATIONS PURSUANT TO THE_PROVISIONS OF THE "IMPROVEMENT BOND ACT OF 1915", BEING DIVISION•.10 OF .ounty of Orange. State of Catitomia. and that 8 "THE'STREETS AND HIGHWAYS CODE OF THE STATE OF CALIFORNIA. Public H�3ring WHEREAS,.the City Council of the City of Huntington Beach, California, Jatic u e o} has recently completed proceedings for the construction of certain public Improvements in what is known and designated as ! ASSESSMENT DISTRICT NO.88-1 )f which copy attached hereto is a true and complete (hereinafter referred to as the "Assessment District"), pursuant to the provisions of.the Division 12 of the Streets and Highways Code of the State of ;opy, was printed and published in the Costa Mesa, . California, with bonds-to Issue under the terms and provisions of the "Improvement Bond Act of 1915", being-Division 10 of said Code; arid, Jewport Beach, Huntington Beach. Fountain Valley, Assessments have been levied and bonds issued on certain parcels of rvine, the South Coast communities and Laguna property and it is determined that certain of the original parcels will be divided and requests and applications will be made for the division of 3each issues of said newspaW for t 1mE'S assessments on the divided lots or parcels,all according to provisions in said "Improvement Bond Act of 1915";and, :onsecutive weeks to wit-the bmue(s) of This legislative body is desirous of establishing a reasonable fee for processing applications.for division of land assessment In order to be reimbursed for the necessary' costs so incurred as set forth in said "Improvement Bond Act of 1915". August 24 -198 9 NOW,THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: SECTION 1.That the above recitals are all true and correct. August 28 198 9 SECTION 2. That the following fee schedule is hereby determined to be reasonable and is an amount which will cover reimbursement for the. IJ necessary costs in processing applications for divisions of land and assessment pursuant to the"Improvement Bond Act of 1915",being Division September 1 198 9 10 of the Streets and Highways Code of the State of California: A. All applications for division of land and assessment shall be accom- panied by a fee of$50.00 for each separate part or parcel of land into which 198 the original lot or parcel has been divided. B. If no application is filed,at the time the Superintendent of streets fifes the amended assessment-pursuant to order of this legislative body,the fee is determined.to be$100.00 for'each separate part or parcel of land into which 198 the original lot of parcel has been divided. Prior to making the division,the Superintendent of Streets shall notify the property owner as to the costs for the appointment.In the event the costs are not paid within fifteen(15)days of notification,.the Superintendent of Streets shall, in preparing the amended assessment,show separately thereon the amount of said fee charged to each declare, under penalty of perjury, that the individual parcel.The amount so charged shall then be entered,if not paid,, upon the assessment roll'and collected along with the first installment of the: bregoing is true and correct, amended assessment. SECTION 3. That all fees so collected, either by application or as an iristaliment on the assessment,are to be deposited in the General Fund of the Treasury of this Agency. ' Executed on September 1 198 9 The public is invited to attend and provide the City Council with written and at Costa Mesa, California. oral comments and ask questions concerning proposed City's Fees. _ CONTACT PERSON: LOUIS SANDOVAL L. Director of Public Works Signature 2000 Main Street g Huntington Beach,CA 92648 I Phone:(714)536-5432 lCiTY OF HUNTINGTON BEACH by:Con_nle Brockway,Clty'Clerk DATED:9/14/89 Published Coast Daily. Pilot August 24, 28, der 1, '1989 ' PilOOF OF PUDUC!a T ION • CITY OF HUNTINGTON INTER-DEPARTMENT. COMMUNICATION HUNTIN6TON BEACH (JU it To Rich Barnard, From Mike Adams Deputy City Administrator Director, Community Development Subject Date COUNCIL FOLLOW—UP October 25, 1989 REQUEST NO. 89-152/. ASSESSMENT DISTRICT 88-1 RESOLUTION 6064— RESERVOIR HILL j This item was generated from the Public Works Department. Therefore, continuance to the November 20, 1989 meeting with new public hearing notification should be coordinated through the Public Works Department or City Clerk's office. MA:ss ,,-t l (3938d) Huntington Beach CompanyCS 2120 Main Street,' 260, Huntington Beach,California 92648-2499 (714)960-4351 FAX 714-969-3659 October 2, 1989 Mr. Lou Sandoval, Director Public Works Department 2000 Main Street Huntington Beach, CA 92648 Resolution 6064 Land Division Fee Reservoir Hill Assessment District Dear Lou: The Huntington Beach Company has reviewed proposed Resolution No. 6064, and while we do not object to the payment of a fee to cover the City's cost of re- apportioning assessments, we request that the resolution be redrafted to allow the fees to be paid upon approval of the final record map, along with all other required fees, rather than with the initial subdivision application. We would appreciate your consideration of this amendment. Please call me if you have any questions related to this request. Very truly yours, William D. Holman Project Manager WDH/j cc: Paul Cook, City Administrator Mike Adams, Community Development Director ' 0.4 t& CITY OF HUNTINGTON BEACH 2000 MAIN STREET " CALIFORNIA 92648 OFFICE OF THE CITY CLERK October 18, 1989 Mr. William D. Holman Project Manager Huntington Beach Company 2120 Main Street #260 Huntington Beach, CA 92648-2499 Dear Mr. Holman: The proposed Resolution No. 6064 (Reservoir Hill Assessment District) will be considered at the continued Public Hearing at the Huntington Beach City Council meeting to be held on November 20, 1989. Sincerely, Connie Brockway, CIVIC City Clerk CB:pm (Telephone: 714-536-5227) CITY OF HUNTINGTON BEACH 2000 MAIN STREET CALIFORNIA 92648 OFFICE OF THE CITY CLERK October 18, 1989 Huntington Beach Company 2120 Main Street, Suite 260 Huntington Beach, CA 92648 The City Council of the City of Huntington Beach at the regular meeting held October 16, 1989, continued decision on your appeal to Planning Commission denial of Zone Change 87-16 and Negative Declaration No. 87-49 to November 20, 1989. If you have any questions regarding this matter, please contact Hal Simmons, Community Development Department, 536-5271. Connie Brockway, CMC City Clerk CB:pm CC: Paul Cook, City Administrator Gail Hutton, City Attorney Mike Adams, Director of Community Development (Telephone: 714-536-5227) rt-PUBLN10TICE I PUBLIC NOTICE I PUBLIC NOTICE NOTICE OF PUBLIC HEARING 4 CITY OF HUNTINGTON BEACH hEGARDING THE ESTABLISHMENT OF A FEE FOR PROCESSING DIVISIONS OF LAND WITHIN ASSESSMENT DISTRICT 88-1 "RESERVOIR HILL ASSESSMENT DISTRICT" Notice is hereby given that a public hearing will be held by the City Counci of the City of Huntington Beach: DATE:September 5, 1989 TIME:7:00 p.m.,(or as soon thereafter as possible). PLACE: City Council Chambers, 2000 Main Street, City of Huntingtor Beach Civic Center To consider the following Resolution: RESOLUTION NO.6064 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTOP BEACH ESTABLISHING A' FEE FOR PROCESSING LAND ANC ASSESSMENT DIVISION APPLICATIONS PURSUANT TO THE PROVISION; OF THE "IMPROVEMENT BOND ACT OF 1915", BEING DIVISION 10 OF THE STREETS AND HIGHWAYS CODE OF THE STATE OF CALIFORNIA. WHEREAS, the City Council of the City of Huntington Beach, California has recently completed proceedings for the construction of certain public Improvements in what is known and designated as ASSESSMENT DISTRICT NO.88-1 (hereinafter referred to(as the "Assessment District"), pursuant to the provisions of the Division 12 of the Streets and Highways Code of the State o California, with bonds to issue under the terms and provisions of the ;'Improvement Bond Act of 1915", being Division 10 of said Code;and, Assessments have been levied and bonds issued on certain parcels o property and it is determined that certain of the original parcels will be divided and requests and applications will be made for'the division o assessments on the divided lots or parcels,all according to provisions in saic "Improvement Bond Act of 1915";and, This legislative body is,desirous of establishing a reasonable fee foi processing applications for division of land assessment in order to be reimbursed for the necessary costs so incurred as set forth in saic "Improvement Bond Act of 1915". NOW,THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: SECTION 1.That the above recitals are all true and correct. SECTION 2. That the following fee schedule is hereby determined to be reasonable and is an amount which will cover reimbursement for the necessary costs .in processing applications for divisions of land anc assessment pursuant to the"Improvement Bond Act of 1915",being Divislor 10 of the Streets and Highways Code of the State of California: A. All applications for division of land and assessment shall be accom• panied by a fee of$50.00 for each separate part or parcel of land into.whict the original lot or parcel has been divided. B,If no application is filed,at the time the Superintendent of streets file; the amended assessment pursuant to order of this legislative body,the fee i, determined to be$100.00 for each separate part or parcel of land Into which the original lot or parcel has been divided. Prior to making the division,the Superintendent of Streets shall notify the property owner as to the costs foi the appointment.In the event the costs are not paid within fifteen(15)days o notification, the Superintendent of Streets shall, in preparing the amendec assessment,show separately thereon the amount of said fee charged to each Individual parcel.The amount so charged shall then be entered, if not paid upon the assessment roll and collected along with the first installment of the amended assessment. SECTION 3. That all fees so collected,'either• by application or as ar installment on the assessment,are to be deposited in the General Fund of the Treasury of this Agency. The public is invited to attend and provide the City Council with written anc oral comments and ask questions concerning proposed City's Fees. CONTACT PERSON: LOUIS SANDOVAL Director of Public Works 2000 Main Street Huntington Beach,CA 92648 Phone:(714)536-5432 CITY OF HUNTINGTON BEACH by:Connie Brockway,City Clerk DATED:9/14/89 Published Orange Coast Daily Pilot August 24, 28, September 1, 1985 th70f GI nol,ccs by Dc•croe of m,,o Supor:or Courl of Orange County, S0 Csl,lorn,a. Number A-62k:eated 29 SOPIGmboc• 1961. and V A•2s83jl ibatod 11 Junn. 1963. ` STATE OF CALIFORNIA -" County of Orange ► kmcs •b--*o-ro�-.-.e br es .rnn... . .. .. ) pewo f Vo cnt....—As% i am a Citizen.of the UNIed States and a resident of the County aforesaid; 1 am over the age of eighteen years. and not-a party to br interested in the below ' entitled matter..I am a principal clerk of the Orange Coast DAILY PILOT. with which is combined the NEWS-PRESS. a newspaper of general circulation, printed and pubrrshed in the City of Costa Mesa, County of Orange. State of California.. and that a _ Nc%tir;e of Public Htgaring of which copy attached hereto is a true and complete copy, was printed and pcibrrshed in the Costa Mesa,'. - Newport Beach, Huntington Beach. Fountain Valley, Irvine. the South Coast communities and Laguna - Beach issues of said newspaper for - 3 t.i mes _ - consecutive weeks to wit-the issues) of _ Aucfust 24 198_9 August 28 . 19g 9 September 1 1989 - . 198 198 1 declare, under penalty of perjury, that the foregoing is true and correcL Executed on _ September 1 , 198 9 at Costa Mesa, Cafifornia_ '- Signature P?007 OF U-2-L iC!a710:1 1WLK; one UL I rutlLlG NUIILL i ru[AIG NU LL NOTICE OF PUBLIC HEARING CITY OF HUNTINGTON BEACH REGARDING THE ESTABLISHMENT OF A FEE FOR PROCESSING DIVISIONS OF LAND WITHIN ASSESSMENT DISTRICT 88-1 "RESERVOIR HILL ASSESSMENT DISTRICT" Notice is hereby given that a public hearing will be held by the City Counc Df the City of Huntington Beach: DATE:September 5, 1989 TIME:7:00 p:m.,(or as soon thereafter as possible) PLACE: City Council Chambers, 2000 Main Street, City of Huntingta Beach Civic Center To consider the following Resolution: RESOLUTION.NO.6064 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTOI BEACH ESTABLISHING A FEE -FOR PROCESSING LAND AN[ ASSESSMENT DIVISION APPLICATIONS PURSUANT TO THE PROVISION; OF THE "IMPROVEMENT BOND ACT OF 1915", BEING DIVISION 10 01 THE STREETS AND HIGHWAYS CODE OF THE STATE OF CALIFORNIA. WHEREAS, the City Council of the City of Huntington Beach, CaliforniE has.recently completed proceedings for the construction of certain publi improvements in what is known and designated as ASSESSMENT DISTRICT NO.88-1 (hereinafter referred to as the "Assessment District"), pursuant to th provisions of the Division 12 of the Streets and Highways Code of the State c California, with bonds to issue under the terms and provisions of th "Improvement Bond Act of 1915", being Division 10 of said Code;and, Assessments have been levied and bonds issued on certain parcels c property and it is determined that certain of the original parcels will b divided and requests and applications will be made for the division c assessments on the divided lots or parcels,all according to provisions in sail "Improvement Bond Act of 1915";and, This legislative body is desirous of establishing a reasonable fee fc processing applications for division of land assessment in order to b reimbursed for the necessary costs so incurred as set forth In sai "Improvement Bond Act of 1915". NOW,THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: SECTION 1.That the above-recitals are all true and correct. SECTION 2. That the following fee schedule is hereby determined to b reasonable and is an amount which will cover reimbursement for. th necessary costs in processing applications for divisions of land an assessment pursuant to the"Improvement.Bond Act of 1915",being Divisio 10 of the Streets and Highways Code of the State of California: A. All applications for division of land and assessment shall be accorr panied by a fee of$50.00 for each separate part or parcel of land into whic the original lot or parcel has been divided. B. If no application is filed,at the time the Superintendent of streets file the amended assessment pursuant to order of this legislative body,the fee i determined to be$100.00 for each separate part or parcel of land into whic the original lot or parcel has been divided. Prior to making the division,th Superintendent of Streets shall notify the property owner as to the costs fc the appointment.In the event the costs are not paid within fifteen(15)days c notification, the Superintendent of Streets shall, In preparing.the amende assessment,show separately thereon the amount of said fee charged to eac individual parcel.The amount so charged shall then be entered,if not paic upon the assessment roll and collected along with the first installment of th amended assessment. SECTION 3. That all fees so collected, either by application or as a installment on the assessment,are to be deposited in the General Fund of th Treasury of this Agency. The public is invited to attend and provide the City Council with written an oral comments and ask questions concerning proposed City's Fees. CONTACT PERSON: LOUIS SANDOVAL Director of Public Works 2000 Main Street Huntington Beach,CA 92648 Phone:(714)536-5432 CITY OF HUNTINGTON BEACH by:Connie Brockway,City Clerk DATED:9/14/89 Published Orange Coast Daily Pilot August 24, 28, September 1, 19E th7r 6 10 nOl:c^r.s by DPCIO.0 of lnD Suporror Cnurl of Orange County, .California. Numbor A-6214. Cared 29 Saplomber. 1961• and A•7,(831. baled 11 June. 1962. -- STATE OF CALIFORNIA `— County of Orange r,m.0 �o A,&..rr-.v C--ie t am a Citizen.of the thyted States and a resident of the County,aforesaid; )am over the age of eighteen years, and not-a party to-br interested in the below ' entitled matter. I am a principal clerk of the Orange _ Coast DAILY PILOT. with which is combined the NEWS-PRESS. a newspaper of general circulationi, printed and pubrished in the City of Costa Mesa. County of Orange. State of .California. and that a Notice of Public Hearing of which copy attached hereto is a true and complete ' copy. was printed and pilbrished in the Costa Mesa... _ Newport Beach. Huntington Beach. Fountain Vaney. Irvine, the South Coast communities and Laguna Beach issues of said newspaper for - consecutive weeks to wit-the issues)of _ August 24� 9 August 28 . 19a 9 ' September 1 Zg8 9 . t98 I declare, under penalty of perjury, that the foregoing is true and correct Executed on September 1 11989 at Costa Mesa, California. Signature • PDOOF OF ^U2LIC!a T 10'.1 CITY OF HUNTINGTON BEACH INTER-DEPARTMENT COMMUNICATION HUNTINGTON BEACH To Lou Sandoval From Connie Brockway Dept. of Public Works City Clerk Subject Huntington Beach Co. Letter Date October 4, 1989 Re: Assessment Districts Attached is a letter from Huntington Beach Company regarding the public hearing on Resolution No. 6064 - Assessment Fees. I will include this material in the Council meeting packet for. 10/16/89. I am sending a copy to the City Attorney's office in case it might have an effect on the public hearing notice or for possible revis- ion of .the resolution so if Huntington Beach Company request is approved it can be adopted in correct form. CB:pm Attachment .CC: Gail Hutton, City Attorney Art De LaLoza Paul Cook, City Administrator NOTICE OF PUBLIC HEARING CITY OF HUNTINGTON BEACH REGARDING THE ESTABLISHMENT OF A FEE FOR PROCESSING DIVISIONS OF LAND WITHIN ASSESSMENT DISTRICT 88-1 "RESERVOIR HILL ASSESSMENT DISTRICT:" Notice is hereby given that a public hearing will be held by the City Council of the City of Huntington Beach: DATE: September 5, 1989 TIME: 7: 00 p.m. , (or as soon thereafter as possible) PLACE: City Council Chambers 2000 Main Street, City .of Huntington Beach Civic Center To consider the following Resolution: RESOLUTION NO. 6064� RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH ESTABLISHING A FEE FOR PROCESSING LAND AND ASSESSMENT DIVISION APPLICATIONS PURSUANT TO THE PROVISIONS OF THE "IMPROVEMENT BOND ACT OF 1915" , BEING DIVISION 10 OF THE STREETS AND HIGHWAYS CODE OF THE STATE OF CALIFORNIA WHEREAS, the City Council of the City of Huntington Beach, California, has recently completed proceedings for the construction of certain public improvements in what is known and designated as ASSESSMENT DISTRICT NO. 88-1 (hereinafter referred to as the "Assessment District") , pursuant to the provisions of the "Municipal Improvement Act of 1913" , being Division 12 of the Streets and Highways Code of the State of California, with bonds to issue under the terms and provisions of the "Improvement Bond Act of 1915" , being Division 10 of said Code; and, Assessments have been levied and bonds issued on certain parcels of property and it is determined that certain of the original parcels will be divided, and requests and applications will be made for the division of assessments on the divided lots or parcels, all according to provisions in said "Improvement Bond Act of 1915" ; and, '01 -1- This legislative body is desirous of establishing a reasonable fee for processing applications for division of land assessment in order to be reimbursed for the necessary costs so incurred as set forth in said "Improvement Bond Act of 1915" . NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: SECTION 1. That the above recitals are all true and correct. SECTION 2. That the following fee schedule is hereby determined to be reasonable and is an amount which will cover reimbursement for the necessary costs in processing applications for divisions of land and assessment pursuant to the "Improvement Bond Act of 1915" , being Division 10 of the Streets and Highways Code of the State of California: A. All applications for division of land and assessment shall be accompanied by a fee of $50.00 for each separate part or parcel of land into which the original lot or parcel has been divided. B. If no application is filed, at the time the Superintendent of Streets files the amended assessment pursuant to order of this legislative body, the fee is determined to be $100.00 for each separate part or parcel of land into which the original lot or parcel has been divided. Prior to making the division, the Superintendent of Streets shall notify the property owner as to the costs for the apportionment. In the event the costs are not paid within fifteen (15) days of notification, the Superintendent of Streets shall, in preparing the amended assessment, show separately thereon the amount of said fee charged to each individual parcel. The amount so charged shall then be entered, if not paid, upon the assessment roll and collected along with the first installment of the amended assessment. SECTION 3 . That all fees so collected, either by application or as an installment on the assessment, are to be deposited in the General Fund of the Treasury of this Agency. -2- The oubli-c is- invited to attend and provide the City Council with written and oral comments and ask questions concerning proposed City' s Fees . CONTACT PERSON: LOUIS SANDOVAL Director of Public Works 2000 Main Street Huntington Beach, CA 92648 Phone: (714) 536-5432 _ CITY OF HUNTINGTON BEACH by: Connie Brockway, City Clerk DATED: 9/14/89 -3- CITY OF HUNTINGTON BEACH INTER-DEPARTMENT COMMUNICATION HUNTINGTON BEACH To LES EVANS From ART DELALOZA CITY ENGINEER ACTING CITY ATTORNEY Subject Date NOTICE OF HEARING August 14, 1989 ASSESSMENT DISTRICT FEES Att hed is the- above notice per your request. Please co rdinate with City Clerk on timing etc. ART DELALOZA ACTING CITY ATTORNEY cc: Connie Brockway, City Clerk P8BL4C- 1R`I�( CE I PUBLIC NOTICE I PUBLIC.NOTICE NOTICE OF PUBLIC HEARING * CITY OF HUNTINGTON BEACH REGARDING THE ESTABLISHMENT OF A FEE FOR PROCESSING DIVISIONS OF LAND WITHIN ASSESSMENT DISTRICT 88-1 "RESERVOIR HILL ASSESSMENT DISTRICT" Notice is hereby given that a public hearing will be held by the City Counci M the City of Huntington Beach: DATE:September 5, 1989 TIME:7:00 p.m.' (or as soon thereafter as possible) PLACE: City Council Chambers, 2000 Main Street, City of Huntingtoi Beach Civic Center To consider the following Resolution: RESOLUTION NO.6051 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTOP BEACH: ESTABLISHING A FEE FOR PROCESSING LAND AN[ ASSESSMENT DIVISION APPLICATIONS PURSUANT TO THE PROVISION: OF THE "IMPROVEMENT BOND ACT OF 1915", BEING DIVISION 10 Ol THE STREETS AND.HIGHWAYS CODE OF THE STATE OF CALIFORNIA. WHEREAS, the City Council of the City of Huntington Beach, California nas recently completed proceedings for'the construction of certain public mprovements in what is known and designated as ASSESSMENT DISTRICT NO.88-1 (hereinafter referred to as the "Assessment District"), pursuant to thl provisions of the Division 12 of the Streets and Highways Code of the State c California, with bonds to issue under the terms and provisions of thi Improvement Bond Act of 1915", being Division 10'of said Code;and, Assessments have been levied and bonds issued on certain parcels c property and it is determined that certain of the original parcels will bi divided and requests and applications will be made for the division c assessments on-the divided lots or.parcels,all according to provisions in sail "Improvement Bond Act of 1915";and, This legislative body is desirous of establishing a reasonable fee fo processing applications for division of land assessment in order to bi reimbursed .for the necessary costs so incurred as set forth in sah "Improvement Bond Act of 1915". NOW,THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: SECTION 1:That the above recitals are all true and correct. SECTION 2. That the following fee schedule is hereby determined to b, reasonable and is an "amount which will cover reimbursement for th. necessary costs in processing applications for divisions of land any assessment pursuant to the"Improvement Bond Act of 1915",being Divisioi 10 of the Streets and Highways Code of the State of California: A. All applications for division of land and assessment shall be accom panied by a fee of$50.00 for each separate part or parcel of land into whicl the original lot or parcel has been divided. B. If no application is filed,at the time the Superintendent of streets file the amended assessment pursuant to order of this legislative body,the fee i determined to be$100.00 for each separate part or parcel of land into whicl the original lot or parcel has been divided. Prior to making the division,th, Superintendent of Streets shall notify the property owner as to the costs fo the appointment.Ih the event the costs are not paid within fifteen(15)days c notification, the Superintendent of Streets shall, in preparing the amender assessment,show separately thereon the amount of said fee charged to eacl individual parcel.The amount so charged shall then be entered, if not paic upon the assessment roll and collected along with the first installment of th. amended assessment. SECTION 3. That all fees so collected, either by application or as ai installment on the assessment,are to be deposited in the General Fund of th Treasury of this Agency. The public is invited to attend and provide the City Council with written an, oral comments and ask questions concerning proposed City's Fees. CONTACT PERSON: LOUIS SANDOVAL Director of Public Works 2000 Main Street Huntington Beach,CA 92648 Phone:(714)536-5432 CITY OF HUNTINGTON BEACH by.Connie Brockway,City Clerk DATED:9/14/89 Published Oranae Coast Dailv Pilot Auqust 24, 1989 th70 .utholizeO to Publish Ad'+orLsoments Of all kinCs including pubt3r_ notices by,Decree Superior Court,ol Orange County, CatjlOrnra. Number A-6214. dated 29 September. 1961. and A-24031, dated 11 June. 1963. STATE OF CALIFORNIA County of Orange PutW twice Ao—v-w ca -sd a yr arnoM a r w f powd t0 oc.cokom.yes am a Citizen of the Utyted States and a resident of _ the County aforesaid; I am over the age of eighteen years. and not a- party to br interested in the below " entitled matter. 1 am a principal clerk of the Orange `Coast DAILY PILOL with which is combined the NEWS-PRESS: a newspaper of general circulation. printed and published in the City of Costa Mesa, -County of Orange: -State of 1Califorrlia. and that a _ Notice of Publ i r- 14PAri ng - of which copy attached hereto is a true and complete COPY. was printed and published in the Costa Mesa.. _ Newport Beach, Huntington Beach. Fountain Valley, Irvine, the South Coast communities and Laguna Beach issues of said newspaper for 1 time consecutive weeks to wit-the issue(s) of Au6ust 24 , 198 9 198 198 198 i declare, under penalty of perjury, that the foregoing is true and correct. Executed on Aiigust 24 , egg 9 at Costa Mesa, California. . 0 Signature P►?OOf OF nU..LICA T f0:! CITY OF HUNTINGTON BEACH 2000 MAIN STREET CALIFORNIA 92648 OFFICE OF THE CITY CLERK October 18, 1989 Mr. William D. Holman Project Manager Huntington Beach Company 2120 Main Street #260 Huntington Beach, CA 92648-2499 Dear Mr. Holman: The proposed Resolution No. 6064 (Reservoir Hill Assessment District) will be considered at the continued Public Hearing at the Huntington Beach City Council meeting to be held on November 20, 1989. Sincerely, Connie Brockway, CMC City Clerk CB:pm (Telephone:714-536-5227) Huntington Beach Company BC: 2120 Main Street,'�260, Huntington Beach,California 92648-2499 (714)960-4351 FAX 714-969-3659 C- c J October 2, 1989 ,.,� :,;, -4 rn :s.._4 C7 r' r^m Mr. Lou Sandoval, Director Public Works Department 2000 Main Street Huntington Beach, CA 92648 Resolution 6064 Land Division Fee Reservoir Hill Assessment District Dear Lou: The Huntington Beach Company has reviewed proposed Resolution No. 6064, and while we do not object to the payment of a fee to cover the City's cost of re- apportioning assessments, we request that the resolution be redrafted to allow the fees to be paid upon approval of the final record map, along with all other required fees, rather than with the initial subdivision application. We would appreciate your consideration of this amendment. Please call me if you have any questions related to this request. Very truly yours, William D. Holman Project Manager WDH/j cc: Paul Cook, City Administrator Mike Adams, Community Development Director REQUEST FOR CITY COUNCIL ACTION Date Anoner 71, 1 ORA Submitted to: Honorable Mayor and City Council own P a � Submitted by: Paul E. Cook, City Administrator j �Oh� Prepared by: Louis F. Sandoval, Director of Public Works 9/i�/�9 Subject: /0/ RESOLUTION NO. 60 � ESTABLISHING A FEE FOR PROCESSING ASSESSMENT DISTRICT LAND DIVISIONS OAJ /0 Consistent with Council Policy. k I Yes I I New Policy or Exception JhoA Statement of Issue, Recommendation,Analysis, Funding Source,Alternative Actions,-Attachments: STATEMENT OF ISSUE: The City has continuing administrative duties to assure bonds issued in the Reservoir Hill Assessment District are properly paid. RECOMMENDATION: Adopt Resolution No. 60(oq establishing a fee to offset the costs of respreading assessments when land within the Reservoir Hill Assessment District is divided. ANALYSIS: On December 5, 1989, the City Council formed the Reservoir Hill Assessment District (88-1) and imposed assessments on parcels within the district to pay for construction of water lines. As subdivisions within the district are approved, assessments must be respread, bondholders notified and amended assessments and maps filed with the County Auditor. For the past eight months, City staff has been providing this service at no cost to the developer. With the possibility that many new subdivisions will be approved in the next few years, staff feels that it would be appropriate to establish a fee for respreading and recording assessments. FUNDING SOURCE: Personnel costs offset by revenue to the General Fund. ALTERNATIVE ACTION: Do not adopt fees and continue to provide the assessment respreading at no cost to the developer. ATTACHMENTS: Resolution. 10,09 P10 5/85 CITY OF HUNTINGTON BEACH INTER-DEPARTMENT COMMUNICATION HUNTINGTON BEACH To Bob Franz From Betty Tate .Deputy City Administrator Deputy City Clerk Subject ASSESSMENT DISTRICTS Date November 17, 1989 We are transmitting this request for information regarding assessment districts for your response. The only assessment district we are aware of is the Reservoir Hill Assessment District. LAW OFFICES PALMIERI, TYLER, WIENER, WILHELM & WALDRON A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS TELECOPIER (714) 851-1554 WRITER'S DIRECT 4000 MAC ARTHUR BOULEVARD DIAL NUMBER TELEX: 5106016110 - EAST TOWER - SUITE 1000 P. O. BOX 8090 NEWPORT BEACH. CALIFORNIA 92660 (714) 851-9400 REFER TO FILE NO. November 7, 1989 City of Huntington Beach City Clerk 2000 Main Street P.O. Box 190 Huntington Beach, CA 92648 Re: Assessment Districts 1989-90 Tax Year Dear Sir or Madam: We are in the process of updating our master file on special districts and special assessment districts. In connection with the Department of Real Estate we are required to provide a written response to the questions and provide any documentation set forth in the enclosed form 624C. The Department of Real Estate has agreed 624C's need only be renewed yearly or when additional funding is expected. It is not necessary to complete a 624C for a fully funded district, but a letter listing the district is required. Please include all of your districts which are currently subject to the tax or will be in the upcoming year. You may provide your response in letter form if preferred. Please direct your response to me at the above address. If you have any questions with regard to this request, I can be reached at (714) 851-9400. Thank you for your assistance in this matter. Very truly yours, Stacey Roche Legal Assistant Enclosures We have referred this to Mr. Franz, Administrative Services Director, 536-5236. STATE OF CALIFORNIA . . DEPARTMENT OF REAL ESTATE SUBDIVISIONS SPECIAL DISTRICT & SPECIAL ASSESSMENT DISTRICT RE 624C(Rev.3/89) Name of Special District Special District Located In: (city/county) Purpose of District(describe) Will bond or assessment be paid in full prior to close of any sales escrows and property conveyed free and clear of lien? ............................................................... ❑ Yes ❑ No If YES, answer"N/A"to the remainder of this questionnaire and provide that no escrow will close Until the lot/unit is free and clear of this bond or assessment. Have the bonds been issued? ..................................................................... ❑ Yes ❑ No ❑ N/A What is the total amount of the bonds issued/to be issued? ................................. S What will be the term (in years)of the bonds? ................................................ (years) fi What is the current or anticipated tax rate required to finance the repayment of the issued bonds and, if applicable, authorized but unissued bonds? .................................... ❖ Is it anticipated there will be a tax rate increase in the future? .............................. Cl Yes ❑ No ❑ N/A If YES,what is the maximum future tax rate likely to be required to finance the repayment ofbonds? .......................................................................................... ❖ List any other information that you believe is important to disclose to lot/unit purchasers concerning the district. Completed By Date Title Telephone Number I STATE OF CALIFORNIA DEPARTMENT OF REAL ESTATE SUBDIVISIONS SPECIAL DISTRICT & SPECIAL ASSESSMENT DISTRICT RE 624C(Rev.3/89) Name of Special District Special District Located In: (city/county) Purpose of District(describe) Will bond or assessment be paid in full prior to close of any sales escrows and property conveyed free and clear of lien? ............................................................... ❑ Yes ❑ No If YES, answer"N/A"to the remainder of this questionnaire and provide that no escrow will close until the lot/w-it is free and clear of this bond or assessment. Have the bonds been issued? ..................................................................... ❑ Yes ❑ No ❑ N/A What is the total amount of the bonds issued/to be issued? ................................. $ What will be the term (in years)of the bonds? ................................................ (years) ? What is the current or anticipated tax rate required to finance the repayment of the issued bonds and, if applicable, authorized but unissued bonds? .................................... Is it anticipated there will be a tax rate increase in the future? ..................... ❑ Yes ❑ No ❑ N/A If YES,what is the maximum future tax rate likely to be required to finance the repayment ofbonds? .......................................................................................... ❖ List any other information that you believe is important to disclose to lot/unit purchasers concerning the district. Completed By Date Title Telephone Number Page 4 - 11/20/89 - )uncil/Agency.Agenda (4) D-2 . (City Council) PUBLIC HEARING - FEE FOR PROCESSING DIVISIONS OF LAND WITHIN ASSESSMENT DISTRICT 88-1 - (RESERVOIR HILL ASSESSMENT DISTRICT) - RESOLUTION NO. 6064 Public hearing opened on 9/5/89 to consider Resolution (PUBLIC No. 6064 - "A RESOLUTION OF THE CITY COUNCIL OF THE HEARING CITY OF HUNTINGTON BEACH ESTABLISHING A FEE FOR PROCESSING CONT. LAND AND ASSESSMENT DIVISION APPLICATIONS PURSUANT TO THE OPEN PROVISIONS OF THE ' IMPROVEMENT BOND ACT OF 1915 ' , BEING FROM DIVISION 10 OF THE STREETS AND HIGHWAYS CODE OF THE STATE 10/16/89) STATE OF CALIFORNIA. " The following fee schedule is an amount which will cover reimbursement for the necessary costs in processing applications for divisions of land and assessment pursuant to the "Improvement Bond Act of 1915" , being Division 10 of the Streets and Highways Code of the State of California : All applications for division of land and assessment are $50 . 00 for each separate part or parcel of land into which the original lot or parcel has been divided . If no application is filed, at the time the Superintendent of Streets files the amended assessment pursuant to order of this legislative body, the fee is determined to be $100 . 00 for each separate part or parcel of land into which the original lot or parcel has been divided . Prior to making the division, the Superintendent of ,Streets shall notify the property owner as to the costs for the apportionment . If costs are not paid within fifteen ( 15) days of notification, the Superintendent of Streets shall , in preparing the amended assessment , show separately thereon the amount of said fee charged to each individual parcel . The amount so charged shall then be entered, if not paid, upon the assessment roll and collected along with the first installment of the amended assessment . That all fees so collected, either by application or as an installment on the Assessment , are to be deposited in the General Fund of the Treasury of this Agency. Communication dated 10/2/89 from Huntington Beach Company requesting said resolution be revised to allow fees to be paid upon approval of the final record map along with all other required fees rather than with the initial subdivision application. RECOMMENDED ACTION: (4) (11/20/89) REQUES FOR CITY COUNCIL ACTION Date August 11, 1987 Submitted to: Honorable Mayor and City Council Submitted by: Charles W. Thompson, City Administrator Prepared by: Paul E. Cook, Director of Public Workk� Subject: Special Counsel for Reservoir Hill Assessment Di a Consistent with Council Policy? [X] Yes [ ] New Policy or Exce i Statement of Issue, Recommendation,Analysis, Funding Source,Alternative Actions,Attachments: STATEMENT OF ISSUE: Special Counsel is required to provide legal services for the proposed Reservoir Hill Assessment District. RECOMMENDATION: Authorize the City Attorney to request proposals for legal services for the proposed Reservoir Hill Assessment District. ANALYSIS: The Water Division of the Public Works Department is pursuing an assessment district for the construction of water facilities in the Goldenwest-Garfield area. The area within the proposed district has inadequate water service and is presently undevelopable without private systems to boost water pressure. The major property owner within the project area (Huntington Beach Company) is in favor of the project. The share of district costs which would be spread to existing homes in Tracts 6453, 7421 and 7656 are recommended to be borne by City water funds. All affected property owners have received preliminary notice of a proposed district and were invited to an information meeting in 1984. No protests are anticipated. In order to prepare resolutions, notices, bond forms, etc., the services of Special Counsel are in order. The water facilities are presently being designed by a consulting engineer. FUNDING SOURCE: Account 920901 = $20,000.00 (Water Contingency Fund) To be reimbursed by the Assessment District. ALTERNATIVE ACTIONS: 1. Proceed with in-house counsel. 2. Terminate Assessment District proceedings. ATTACHMENTS: Assessment District Boundary Map (proposed). 1 NO 5/85 f c, �� •\ rs, Py \ o� A CITY OF I HUNTING f ON Bt•:A.CH \�J `HATER DIVISION RESERVOIR HILL WATER IMPROVEMENT DISTRICT LEGEND ----- BOUNDARY OF IMPROVEMENT DISTRICT 0L 5000� -11000� 2COO TRANSCRIPT OF WE PROCEEDINGS CITY OF HUATPINZON BEACH ASSESSMENT DISTRICT NO. 88-1 (RESERVOIR HILL) LIMITED OBLIGATION IIPROVEMENT BONDS ASSESSMENT DISTRICT PROCEEDINGS AND RELATED DOCUMENTS 1. Resolution No. 5923; A Resolution of the City Council of the City of Huntignton Beach Making Findings on Petition Relating to Special Assessment District No. 88-1 (Reservoir Hill). 2. ,Resolution No. 5924; A Resolution of the City Council of the City of Huntington Beach Making Appointments to Assessment District No. 88-1 (Reservoir Hill). 3. Resolution No. 5925; A Resolution of the City Council of the City of Huntington Beach Adopting a Map Showing Proposed Boundaries of Assessment District No. 88-1 (Reservoir Hill). 4. Resolution No. 5926; A Resolution of the City Council of the City of Huntington Beach Declaring Intention to Order Construction of Certain Improvements, Declaring the Work to be, or more than, Local or Ordinary Benefit, Describing the District to be Assessed to Pay the Costs and Expenses Thereof, and Providing for the Issuance of Bonds (Assessment District No. 88-1, Reservoir Hill). 5. Resolution No. 5936; A Resolution of the City Council of the City of Huntington Beach Passing on the "Report" of the Engineer, Giving Preliminary Approval, and Setting a Time and Place for Public Hearing. 6. Resolution No. 5937; A Resolution of the City Council of the City of Huntington Beach Referencing Prevailing Wage Scale and Directing Call for Construction Bids. 7. Resolution No. 5938; A Resolution of the City Council of the City of. Huntington Beach Requesting Proposal for Sale of Bonds to Represent Unpaid Assessments Upon Lands in an Assessment District. 8. Resolution No. 5959;' A Resolution of the City Council of the City of Huntington Beach Ordering Certain Changes and Modifications to the Engineer's Report in a Special Assessment District. 9. Resolution No. 5960; A Resolution of the City Council of the City of Huntington Beach Overruling and Denying Protests and Making Certain Findings in a Special Assessment District. 10. Resolution No. 5961; A Resolution of the City Council of the City of Huntington Beach Confirming the Assessment, Ordering the Improvements Made, Together with Appurtenances, and Approving the Engineer's "Report" ' - Related to Assessment District No. 88-1. 11. Resolution No. 5970; A Resolution of the City Council of the City of Huntington Beach, California, Authorizing Issuance of Bonds, Approving Bond Indenture and Preliminary Official Statement for a Special Assessment District. 12. Resoltion No. 5971 ; A Resolution of the City Council of the City of Huntington Beach Accepting Proposal for Sale of Bonds and Providing for the Establishment of a Redemption Fund. 13. Resolution No. 5972; A Resolution of the City Council of the City of Huntington Beach Awarding the Contract for the Construction of Certain Public Works of Improvement in a Special Assessment District. 14. Certificates of Compliance with Notice Requirements and Related Documents. 15. Notice of Determination. BOND DOCUMENTS 16. Specimen Bond. 17. Bond Indenture. 18. Receipt for Purchase Price. 19. Receipt for Bonds. 20. Preliminary Official Statement. 21 . Final Official Statement. 22. Purchase Contract. 23. IRS Form 8038-G. CLOSING CERTIFICATES AND DOCUMENTS 24. Signature and No-Litigation Certificate. 25. Non-Arbitrage Certificate. 26. Underwriter's Closing Certificate. 27. Instructions to Fiscal Agent. 28. Certificate of Fiscal Agent. OPINION 29. Final Legal Opinion. 30. Supplemental Legal Opinion. 31. Reliance Letter. R RESOLUTION NO. 5923 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH MAKING FINDINGS ON PETITION RELATING TO SPECIAL ASSESSMENT DISTRICT NO. 88-1 (RESERVOIR HILL ) WHEREAS, the City Council of the City of Huntington Beach has been presented by certain property owners an executed Petition requesting the construction of certain ' public improvements, together with appurtenances and appurtenant work in connection therewith, said improvements to be constructed pursuant to the terms and provisions of the "Municipal Improvement Act of 1913" , being Division 12 of the Streets and Highways Code of the State of California, in a special assessment district known and designated as Assessment District No . 68-1 (Reservoir Hill ) , (hereinafter referred to as the "Assessment District" ) ; and It has been reported that said petition contains the signatures of more than sixty percent (60% ) of the property owners of the assesable area of the property to be subject to assessment for the proposed works of improvement . Said Petition meets the requirements of Section 2804 of Division 4 of the Streets and Highways Code of the State of California . NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Huntington Beach as follows: Section 1 . That the above recitals are all true and correct . Section 2 . That it is hereby found that said petition has been signed by owners owning land constituting more than sixty percent (60% ) of all assessable land within the boundaries of the proposed Assessment District . Section 3 . That said Petition shall be filed with the transcript of these proceedings and shall remain open to public inspection Section 4 . That said Petition meets the requirements of Section 2804 of Division 4 of the Streets and Highways Code of the State of California, and further- proceedings and limitations under the provisions of the "Special Assessment Investigation, Limitation and Majority Protest Act of 1931" shall not be . applicable to these proceedings . PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof on the 19th day of September , 1988 . Ma or ATTEST: AP VED AS TO FORM: City Clerk CIty Attorn y ;; ;����, REVIEWED AND APP VED: I ITIATED A D A(6i7ED: i n 4&'Y Aamini/stra or Director of Public Works b c 2 - • - Re' No. 5923 i STATE OF CALIFORNIA ) COUNTY OF ORANGE } ss: CITY OF HUNTINGTON BEACH ) I, CONNIE BROCKWAY, the duly appointed, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a regular meeting thereof held on the 19th day of September 19 88 by the following vote: AYES: Councilmembers: Kelly, Green, Finley, Mays, Winchell .s . NOES: Councilmembers: Erskine, Bannister ABSENT: Councilmembers: None • Gam` City Clerk and ex-o fici C erk of the City Council of the City of Huntington Beach, California The foregoing instrumentis a correct Copy of the:original on file in this office. MW I� � 9 ONNIF BRnr� =t►9 y City clerk and Ex-officio.Clerk of the City CWncA of the City of.Huntineon Beach, Cal. �► � ~- � -�_� Deputy RESOLUTION NO. 5924 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH MAKING APPOINTMENTS TO ASSESSMENT DISTRICT NO. 88-1 (RESERVOIR HILL) WHEREAS, the City Council of the City of Huntington Beach is considering the formation of a special assessment district, pursuant to the terms and provisions of the "Municipal Improvement Act of 191311 , being Division 12 of the Streets and Highways Code of the State of California, for the construction of certain public works of improvement, together with appurtenances and appurtenant work , - said special assessment district to be known and designated as Assessment District No. 88-1 (Reservoir Hill ) , (hereinafter referred to as the "Assessment District" ) ; and At this time, this legislative body is desirous of making the required appointments and designating persons to perform certain duties, in order to allow the proceedings to go forward to completion in accordance with the provisions of law. NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Huntington Beach as follows: Section 1 . That the above recitals are all true and correct . Section 2 . That the City Engineer is hereby appointed to perform all of the duties and "functions of the Superintendent of Streets as said duties are specified and designated in the "Municipal Improvement Act of 1913" , being Division 12 of the Streets and Highways Code of the State of California, for the above-referenced Assessment District-. - 1 - Section 3 . That the place for recordation of the assessment roll and diagram shall be in the Office of the Superintendent of Streets, and said assessment roll and diagram, upon recordation, shall be kept as a permanent record . Section 4 . That the Daily Pilot is hereby designated as the newspaper for all publications as required by law and as necessary for completion of this Assessment District . Section 5 . That Black & Veatch is hereby appointed the Engineer of Work and Assessment Engineer for said proceedings, and shall perform all of the duties and responsibilities as set forth by law as they relate to said Assessment District . . Section 6 . That Brown & Diven, Attorneys at Law, are hereby appointed to act as Bond Counsel for the purposes of preparing proceedings and issuing an approving opinion attesting to the validity of the proceedings and the enforceability of the bonds . PAGE END - 2 - Section 7 . That Fie.ldman, Rolapp & Associates is hereby appointed as Financial Consultant and appointed to interview underwriters and investors for the purposes of selling the bonds to be issued in order to finance said proceedings, and said bonds are to be issued pursuant to the terms and provisions of the "Improvement Bond Act of 1915" , being Division 10 of the Streets and Highways Code of the State of California, pursuant to the terms and conditions of the Agreement for Financial Consultant Services submitted herewith , which Agreement is hereby accepted and authorized for execution. Section 8 . That this .legislative body hereby establishes a special Improvement Fund designated by the name and number of the Assessment District, and into said fund shall be placed all proceeds from the sale of bonds and cash collections . In order to expedite the improvements or acquisition under these proceedings and as authorized by law, funds from any available source may be transferred into said special fund . Any funds transferred are a loan to the fund and shall be repaid out of PAGE END 3 - th- proceeds of the sale of bonds, including authorized incidental expenses, as well as costs for the construction of the. authorized public improvements , all as required and authorized by law, and specifically Section .10210 of the Streets and Highways Code of the State of California . PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof on the 19th day of September , 1988 . Ma or ATTEST: APPROVED AS TO FORM: City Clerk City A torney vwlssy-) 'D REV AND A P VED: INITIATED AND APPROVED: City Administr for Directo of Public Works I be 4 - Re, No. 5924 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, CONNIE BROCKWAY, the duly appointed, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a regular meeting thereof held on the 19th day of September 19 88 by the following vote: AYES: Councilmembers: Kelly, Green, Finley, Mays, Winchell NOES: Councilmembers: Erskine, Bannister _ABSENT: Councilmembers: None City Clerk and ex-offic o Clerk of the City Council of the City The foregoing instrument is a correct of Huntington Beach, California COPY of the original on'file in this office. Attest y- 19� ON _ City Clerk and Ex-officio Clerk—ol the City Council of the Clty of Huntington Beach, Cal. _ Deputy y RESOLUTION NO. 5925 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH ADOPTING A MAP SHOWING PROPOSED BOUNDARIES OF ASSESSMENT DISTRICT NO. 88-1 (RESERVOIR HILL ) WHEREAS, the City Council of the City of Huntingtop Beach has been presented and has received a map showing and describing the boundaries of the area proposed to be assessed in an assessment district under the provisions and authority of the "Municipal Improvement Act of 1913" , being Division . 12 of the Streets and Highways Code of the .-State of California; said assessment district known and designated as Assessment District No. 88-1 (Reservoir Hill) , (hereinafter referred to as the "Assessment District" ) . NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Huntington Beach as follows: Section 1 . That the above recitals are all true and correct . Section 2 . That a map of the Assessment District showing the boundaries of the proposed Assessment District and lands and property to be assessed to pay the costs and expenses of the proposed improvements designated as "Proposed Boundaries of Assessment District No. 88-1 (Reservoir Hill ) " is hereby submitted, and the same is hereby approved and adopted . Section 3 . That the original map of said proposed . boundaries of the proposed Assessment District, and one copy thereof, is to be filed in the Office of the City Clerk . Section 4 . A certificate shall be endorsed on the original and on at least one copy of the map of the Assessment District , evidencing the date and adoption of this Resolution, and within fifteen ( 15 ) days after the adoption of the Resolution fixing the time and place of hearing on the formation or extent of said Assessment District . A copy of said map shall be filed with .the correct and proper endorsements thereon with the County Recorder , all in the manner and form provided for in - 1 - Section 31.11 of the Streets and Highways Code of the State of s California . PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof on the 19th day of September , 1988 . ATTEST: AP ED AS TO FORM: C 1 t y C erk Attorn �. REVIEWED AID IPPROVED: IN TIATED AN APPROVED: City Adnist�rator � � Director f Public Works be 2 - Rf No, 5925 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, CONNIE BROCKWAY, the duly appointed, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City- of Huntington Beach is seven; -.. . . that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a regular meeting thereof held on the 19th day iof September 19 88 by the following vote: AYES: Councilmembers: Kelly, Green, Finley, Mays, Winchell NOES: Councilmembers: Erskine, Bannister ABSENT: Councilmembers: None City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California The foregoing instrument is a correct copy of the original on file in.this office. Attest �� !2 19 CON City Clerk and Ex-officio Cler c of the City Council of the Clty of Huntington Beach, Gal. Deputy RESOLUTION NO. 5926 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH DECLARING INTENTION TO ORDER CONSTRUCTION OF CERTAIN IMPROVEMENTS, DECLARING THE WORK TO BE, OR MORE THAN. LOCAL OR ORDINARY BENEFIT, DESCRIBING THE DISTRICT TO BE ASSESSED TO PAY THE COSTS AND EXPENSES THEREOF, AND PROVIDING FOR THE ISSUANCE OF BONDS (ASSESSMENT DISTRICT NO. 88-11 RESERVOIR HILL) The City Council of the City of Huntington Beach hereby resolves as follows: The public interest and convenience require, and it is the intention of this body,, pursuant to the provisions of Division 12 of the Streets and Highways Code of the State of California (the "Municipal Improvement Act 1913" ) , to order the construction of certain public improvements, together with appurtenances and appurtenant work , in a special assessment district known and designated as Assessment District No. 88-1 (Reservoir Hill ) . Section 1 . DESCRIPTION OF IMPROVEMENTS: A . The construction and installation of approximately 14 ,400 lineal feet of new water distribution mains and connections to existing mains to serve and benefit properties located within the boundaries of this Assessment District. B . Said streets, rights-of-way and easements shall be shown upon the plans herein referred to and to be filed with these proceedings . C . All of said work and improvements are to be constructed at the places and in the particular locations, of the forms, sizes, dimensions and materials, and at the - 1 - lines , grades and elevations as shown and delineated upon the plans , profiles and specifications to be made therefor, as hereinafter provided . D . The description of the improvements and the termini of the work contained herein are general in nature . All items of work do not necessarily extend for the full length of the description thereof . The plans and profiles of the work as contained in the Engineer ' s "Report" shall be controlling as to the correct and detailed description thereof. E . Whenever any public way is herein referred to as running between two public ways , or from or to any public way, the intersections of the public ways referred to are included to the extent that work shall be shown on the plans to be done therein. F . Notice is hereby given of the fact that in many cases said work and improvement will bring the finished work to a grade different from that formerly existing . and to that extent, said grades are hereby changed and said work will be done to said changed grades. Section 2 . DESCRIPTION OF ASSESSMENT DISTRICT: Said improvements and work are of direct benefit to the properties and land within the Assessment District, and this legislative body hereby makes the expenses of said work and improvement chargeable upon a district, . which said Assessment District is hereby declared to be the Assessment District benefited by said work and improvements and to be assessed to 2 - pay the costs and expenses thereof , including incidental expenses and costs and which .are described as follows: All that certain territory in the District included within the exterior boundary lines shown on the plat exhibiting the property affected or benefited by or to be assessed to pay the costs and expenses of- said work and improvements in the Assessment - District , said map titled and identified as "Proposed Boundaries of Assessment District No. 88-1 (Reservoir Hill) , and which map was heretofore approved and which said diagram is on file with the transcript of these proceedings, EXCEPTING therefrom the area shown within and delineated upon said map or plat hereinabove referred to, the area of all public streets, public avenues, public lanes, public roads, public drives, public courts, public alleys , and all easements and rights-of-way therein contained belonging to the public. For all particulars as to the boundaries of the Assessment District, reference is hereby made to said boundary map heretofore previously approved, and for a complete - description of said Assessment District, the said plat and proposed boundary map on file shall govern. Section 3 . REPORT OF ENGINEER: This proposed improvement is hereby referred to Black & Veatch, who are. hereby directed to make and file the report in writing containing the following: A. Plans and specifications _ of the proposed improvements; 3 - B . An estimate of the cost of the proposed works of improvements, including the cost of the incidental expenses in connection therewith; C . A diagram showing the Assessment District above referred to, which shall also show the boundaries and dimensions of the respective subdivisions of land within said Assessment District, as the same existed at the time of the passage of the Resolution of Intention, each of which subdivisions shall be given a separate number upon said Diagram; D. A proposed assessment of the total amount of the assessable costs and expenses of the proposed improvement upon the several divisions of land in proportion to the estimated benefits to be received by such subdivisions, respectively, from said improvement. Said assessment shall refer to such subdivisions upon said diagram by the respective numbers thereof; . E . The description of the works of improvement to be constructed under these proceedings, and acquisition, where necessary. When any portion or percentage of the cost and expenses of the improvements are to be paid from sources other than assessments, the amount of such portion or percentage shall first be deducted from the total estimated costs and expenses of said work and improvements, and said assessment shall include only the remainder of the estimated costs and expenses . Said assessment shall refer to said subdivisions by their respective numbers as assigned pursuant to Subsection D of this Section . 4 - Section 4 . BONDS: Notice is hereby given that serial bonds to represent the unpaid assessments, and bear interest at the rate of not to exceed the current legal maximum rate of 12% per annum, will be issued hereunder in the manner provided in the "Improvement Bond Act of 191511 , being Division 10 of the- Streets and Highways Code - of the State of California, the .last installment of which bonds shall mature a maximum of and not to exceed Nineteen ( 19 ) Years from the second day of September next succeeding twelve ( 12 ) months from their date . The provisions of Par 11 . 1 of said Act, providing an alternative procedure for the advance payment of assessments and the calling of bonds shall apply. The principal amount of the bonds maturing each year shall be other than an amount equal to an even annual proportion of the aggregate principal of the bonds, and the amount of principal maturing in each year, plus the amount of interest payable in that year, will be generally an aggregate amount that is equal each year, except for the first year ' s adjustment . Pursuant to the provisions of the Streets and Highways Code of the State of California, specifically Section 10603 , the Treasurer is hereby designated ' as the officer to collect and receive the assessments during the cash collection period. Said bonds further shall be serviced by the Treasurer or designated Paying Agent . Section 5 . "MUNICIPAL IMPROVEMENT ACT OF 191311 : That except as herein otherwise provided for the issuance of bonds, all of said improvements shall be made and ordered pursuant to the provisions of the "Municipal Improvement Act of 5 - 15-13" , being Division 12 of the Streets and Highways Code of the State of California. Section 6 . SURPLUS FUNDS : If any excess. shall be realized from the assessment, it shall be used, in such amounts as the legislative body may determine, in accordance with the provisions of law for one or more of the following purposes: A. Transfer to the general fund, provided that the amount of any such transfer shall not exceed the lesser of One Thousand ($1,000 .00) or five percent (5% ) of the total from the Improvement Fund; B . As a credit upon the assessment and any supplemental assessment; or C . For the maintenance of the improvement. Section 7 . SPECIAL FUND: The legislative body hereby establishes a special . improvement fund identified and designated by the name of this Assessment District, and into - said Fund monies may be transferred at any time to expedite the making of the improvements herein authorized, and any such• advancement of funds is a loan and shall be repaid out of the proceeds of . the sale of bonds as authorized by- law. Section 8 . PRIVATE CONTRACT: Notice is hereby given that the public interest will not be served by allowing the property owners to take the contract for the construction of the improvements, and that, as authorized by law, no notice of award of contract shall be published . 6 - Section 9 . GRADES: Notice is hereby given that the grade to which the work shall be done is to- be shown on the plans and profiles therefor, which grade may vary from the existing grades . The work herein contemplated shall be done to the grades as indicated on the plans and specifications, to which reference is made for a description of the grade at which the work is to be done . Any objections or protests to the proposed grade shall be made at the public hearing to be conducted under these proceedings . Section 10 . PROCEEDINGS INQUIRIES: For any and all information relating to these proceedings , including information relating to protest procedure, your attention is directed to the person designated below: Les Evans, City Engineer City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 Telephone: 714/536-5435 Section 11 . PUBLIC PROPERTY : All public property in the use and performance of a public function shall be omitted from assessment in these proceedings unless expressly provided and listed herein. Section 12 . NO CITY LIABILITY: It is hereby further determined and declared that the City of Huntington Beach will not obligate itself to advance any available funds from the City Treasury to cure any deficiency or delinquency which may occur in the bond redemption fund by failure of property owners to pay annual special assessments . This determination shall be clearly set forth and stated in the title o the bonds to be issued pursuant to these proceedings as 7 - authorized and required by Section 8769 of the Streets and Highways Code of the State of California. Section 13 . PETITION: That a petition signed by property owners representing more than 60% in area of the property subject to assessment for said improvement has been signed and filed with the legislative body, and said written petition expressly contains a waiver of any of the proceedings and limitations as set forth under Division 4 of the Streets and Highways Code of the State of California, the "Special Assessment Investigation, Limitation and Majority Protest Act of 1931" . PAGE END 8 - Section 14 . WORK ON PRIVATE PROPERTY : It is hereby further determined to be in the best public interest and convenience and more economical to do certain work on private property to eliminate any disparity in level or size between the improvements and the private property . The actual cost of such work is to be added to the assessment on the lot on which the work is done, and no work of this nature is to be performed until the written consent of the property owner is first obtained. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof on the 19th day of September , 1988 . Ma r ATTEST: AP ED AS TQ FORM: 01K .Or 1 � City Clerk y A _orn y =-* R WE rAN A ED• I ITIATED APPR 4. City Adminis ra or Director of Public Works 9 - RP No. 5926 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, CONNIE BROCKWAY, the duly appointed, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number- of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a regular meeting thereof held on the 19th day of September 19 88 by the following vote: AYES: Councilmembers: Kelly, Green, Finley, Mays, Winchell NOES: Councilmembers: Erskine, Bannister ABSENT: Councilmembers: None City Clerk and ex-officiowClerk of the City Council of the City of Huntington Beach, California foregoing instrument is a correct Copy of.the original on file-in this office. Attest 2= 19� CON City Clerk and Ex-officio Clerk o the�Cityv Council.of the Clty of Huntington-Beach, CaL By Deputy RESOLUTION NO. 5936 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH PASSING ON THE "REPORT" OF THE ENGINEER, GIVING PRELIMINARY APPROVAL, AND SETTING A TIME AND PLACE FOR PUBLIC HEARING WHEREAS, the City Council of the City of Huntington Beach, has instituted proceedings for the construction of certain public works of improvements and appurtenances under provisions of the "Municipal Improvement Act of 1913" , being Division 12 of the Streets and Highways Code of the State of. California, in a special assessment district known and designated as Assessment District No. 88-1 (Reservoir Hill, hereinafter referred to . as the "Assessment District" ) ; and There has been prepared and filed with the legislative body a "Report" provided for in §§ 10203 and 10204 of the Streets and i Highways Code of the State. of California, and this "Report" has been presented for consideration; and A Resolution of Intention for this improvement was previously adopted by the legislative body, and the "Report" as now presented shall stand as the "Report" for the purpose of subsequent proceedings hereunder . NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of. the City of Huntington Beach as follows: SECTION ' l .' That the above recitals are all true and correct . SECTION 2 . That the "Report" of the Engineer referred to hereinabove is considered adopted, passed upon, and preliminarily approved, as follows : �J 1 _ 5936 A. That the plans and specifications for the proposed improvements to be made, contained in said "Report" be, and they are hereby preliminarily approved and adopted; B. That the Engineer ' s- estimate of the itemized and total costs and expenses of said acquisition, where necessary, and improvements, and of the incidental expenses in connection therewith, contained in said "Report" , be, and each of them are hereby preliminarily approved and adopted; C . That the diagram showing the Assessment District referred to and described in said Resolution of Intention, and also the boundaries .and dimensions of the respective subdivisions of land within said Assessment District, as the same existed at the time of the passage of said Resolution of Intention, each of which subdivisions have been given a separate number upon said diagram, as contained in said "Report" , be, and it is hereby preliminarily approved and adopted; D. That the proposed assessment upon the several subdivisions of land in said Assessment District, in proportion to the estimated benefits to be received by such subdivisions, respectively, from said acquisition and improvements, and of the incidental expenses thereof, as contained in said "Report" , be, and they are hereby preliminarily approved and adopted; l E. That the maps and descriptions of the lands and easements to be acquired, as contained in said "Report" be, and the same are hereby preliminarily _ 2 _ 5936 approved. SECTION 3 . That said "Report" shall stand as the Engineer ' s "Report" for the purpose of all subsequent proceedings had pursuant to said Resolution of Intention. SECTION 4 . NOTICE IS HEREBY GIVEN THAT ON MONDAY, THE 5TH DAY OF DECEMBER, 1988, AT THE. HOUR OF 7 :00 O'CLOCK P.M. , IN THE REGULAR MEETING PLACE OF THIS LEGISLATIVE BODY, BEING THE COUNCIL CHAMBERS, CITY HALL, ANY AND ALL PERSONS HAVING ANY OBJECTIONS TO THE PROPOSED WORK, OR ASSESSMENT, OR EXTENT OF THE ASSESSMENT DISTRICT, OR TO THE PROPOSED GRADES, MAY APPEAR AND SHOW CAUSE WHY SAID WORK SHOULD NOT BE DONE OR CARRIED OUT IN ACCORDANCE WITH THE RESOLUTION OF INTENTION AND THE "REPORT" OF THE ENGINEER. PROTESTS MUST BE IN WRITING AND MUST BE DELIVERED TO THE CITY CLERK AT OR BEFORE THE TIME SET FOR THE PUBLIC HEARING. SECTION 5. That the City Clerk is hereby directed to give notice of said Public Hearing by causing to be conspicuously posted on all open streets within the Assessment District, not more than 300 feet apart on each street so posted, but not less than 3 in all, notice of the passage of the Resolution of Intention and of this Resolution,' • all in accordance with the provisions of said Division 12 . SECTION 6. That the City Clerk is hereby directed to give notice of said public Hearing and of the passage of the Resolution of Intention and this Resolution by causing such notice to be published in accordance with 5 6066 of the Government Code, in the newspaper previously designated as the newspaper for all publications as required by law and as 3 - 5936 • y necessary for completion of this Assessment District . SECTION 7. That the City Clerk is hereby directed to mail notice of said Public Hearing and the adoption of the Resolution of Intention and of the filing of the "Report" to all persons owning real property proposed to be assessed, whose names and addresses appear on the last equalized assessment roll for County taxes prior thereto, or as known to said City Clerk, and to all other persons as prescribed in accordance with the provisions of said Division 12 . SECTION 8. That the City Clerk is hereby further directed to file a copy of the proposed boundary map in the Office of the County recorder within fifteen ( 15 ) days of the adoption of the proposed boundary map, said boundary map to be in the manner and form as set forth in Division 4 .5 of the Streets and Highways Code of the State of California. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Huntington Beach on the 24th day of October 1988 . M or ATTEST: AP VED AS TO FORM: City Clerk C' t Attorney Q. kZ-15-7 46-/a -W REVIEWED AND APPROVED: INITIATED AND APPROVED: S City Administrator Director of Public Works be 4 5936 Res, No. 5936 STATE OF CALIFORNIA COUNTY OF ORANGE ; ss: CITY OF HUNTINGTON BEACH ) I, CONNIE BROCKWAY, the duly appointed, qualified City Clerk of the City of Huntington Beach, and ex officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a regular meeting thereof held on the 24th day of October 19 88 by the following vote: AYES: Councilmembers: Kelly, Green, Finley, Erskine, Mays, Winchell i i j NOES: Councilmembers: Bannister j ABSENT: Councilmembers: None City Clerk and ex-.off' io Clerk of the City Council o the City of Huntington Beach, California The foregoing instrument Is a correct COPY of the original on file in this office. Attest ,I J.211 19,M City Cleik and Ex-officio Clerk.of the City Council of the City of Huntington Beach, - California. BY 4a i.��i�o�.�a„ Deputy � � ~ 5936 RESOLUTION NO. 5937 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH REFERENCING PREVAILING WAGE SCALE AND DIRECTING CALL FOR CONSTRUCTION BIDS WHEREAS, the City Council of the City of Huntington Beach has. heretofore instituted proceedings under the provisions of the "Municipal Improvement Act of 1913" , being Division 12 of the Streets and Highways Code of the State of California, for the construction of certain public works of improvement in a special assessment district known and designated as Assessment District No . 88-1 (Reservoir Hill, hereinafter referred to as the "Assessment District" ) ; and At this time there have been submitted for final review the plans and specifications for the works of improvement for the Assessment District; and It is the intention of the legislative body to also call for sealed proposals or bids for the doing of said work and improvements in said Assessment District; and It is necessary to determine the prevailing rate of wages for the various classifications of workmen required in the performance of said work. NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Huntington Beach as follows: SECTION "l . That the above recitals are true and correct . SECTION' 2 . That the plans and specifications for the works if improvement in the Assessment District are hereby i approved and authorized for bidding. SECTION 3 . That it is hereby determined and ascertained that the general prevailing rate of per diem wages in the 1 - 5937 locality in which said work described is to be performed in the ` manner of the construction of certain public works of improvement, together with appurtenances, in the Assessment District, under the provisions of the "Municipal Improvement Act of 1913" , being Division 12 of the Streets and Highways Code of the State of california, for each craft or type of workman or mechanic needed to execute the contract, and also the general prevailing rate for legal holiday and overtime work of each s craft or type of workman or mechanic, is in accordance with the schedule obtained. from the Director of Industrial Relations, pursuant to the provisions of Section 1773 of the Labor Code of the State of California, and reference is hereby made to copies thereof on file with the transcript of these proceedings, which said copies are available to any interested party upon request. Further a copy shall be posted at each job site during the course of construction. SECTION 4 . That the proposals or bids shall be opened and examined at a public meeting so called; and said ' results of the biding shall be reported at the next regular meeting of this legislative body after the opening of the bids . SECTION 5. That the terms and conditions for bidding on the works of improvement for this Assessment District are as set forth in full in the Bid Documents in the specifications as previously approved . Reference is hereby made to said Bid Documents heretofore approved and identified as "NOTICE INVITING -1 SEALED PROPOSALS, ASSESSMENT DISTRICT NO. 88-1 (RESERVOIR HILL) " . For all particulars as to bidding, the Notice Inviting Sealed proposals above referenced and all incorporated documents 5937 - 2 - and laws , including but not limited to the "Municipal :. I Improvement Act of 1913" shall control. SECTION 6 . That it is hereby determined that in the event the contractor, contracting owners included, does not complete the work within the time limit specified in the contract or within the time limit as shall be authorized, the contractor or, contracting owners, as the case may be, shall pay as liquidated damages the amount or amounts as set forth in the specifications for the project, said amounts herein referenced and so incorporated. That it is impractical to determine the actual damage which ill be sustained by reason of such delay, but that the stated sum is a reasonable amount for said liquidated . damages and is not being imposed as a penalty. PASSED AND ADOPTED at a regular meeting of the City Council I of the City of Huntington Beach on the 24th day of October , 1988 . Ma or ATTEST: APPROVED AS TO FORM: City Clerk Cit Attorney(Q!��v)�2-�� REVIEWED AND APPROVED: INITIATED AND APPROVED: City Administrator Director of Public Works be _ 3 _ 5937 Res. No. 5937 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) s9: CITY OF HUNTINGTON BEACH ) I, CONNIE BROCKWAY, the duly appointed, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a regular meeting thereof held on the 24th day of October 19 88 by the following vote: AYES: Councilmembers: Kelly, Green, Finley, Erskine, Mays, Winchell NOES: Councilmembers: Bannister ABSENT: Councilmembers: None City Clerk and ex-officio 97erk of the City Council of the City of Huntington Beach, California The foregoing instrument is a -correct copy of the original on file in this office. Attest 1912 City Clerk and Ex-officio Clerk of the City Council of the City of Huntington Beach, California. . 6y putt' 5937 RESOLUTION NO. 5938 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH REQUESTING PROPOSAL FOR SALE OF BONDS TO REPRESENT UNPAID ASSESSMENTS UPON LANDS IN AN ASSESSMENT DISTRICT WHEREAS, the City Council of the City of Huntington Beach in accordance with the terms and provisions of the "Municipal Improvement Act of 1913" , being Division 12 of the Streets and Highways Code of the State of California, and pursuant to its Resolution of Intention previously adopted,has initiated proceedings for the construction of certain public works of improvement, together with acquisition, where necessary, and appurtenances, in a spebial assessment district known and designated as Assessment District No. 88-1 (Reservoir Hill,hereinafter referred to as the "Assessment District" ) ; and It has been determined that serial bonds representing unpaid assessments against private property shall be issued pursuant to and as set forth in the "Improvement Bond Act of 1915", being Division 10 of the Streets and Highways Code of the State of California; and At this time this legislative body is desirous to request the solicitation of a proposal for the sale of bonds for purposes of financing the works of improvement as proposed for construction in this Assessment District . NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Huntington Beach as follows: SECTION 1 . That the above recitals are all true and correct . 1 - 5938 SECTION 2 . That the Financial Consultant, Fieldman, lRolapp & Associates is hereby authorized to formally request and solicit a proposal from Stone & Youngberg relating to the sale of bonds to issue to represent unpaid assessments against the privately owned property within the boundaries of the Assessment District, said bonds to be issued pursuant to the provisions of the "Improvement Bond Act of 191511 , being Division 10 of the Streets and Highways Code of the State of California. The interest rate on said bonds shall not exceed the current legal maximum rate of twelve percent ( 12%) per annum. Said bonds shall be issued pursuant to the terms and conditions as set forth in the Resolution of Intention as previously adopted for these proceedings. SECTION 3 . That there will be furnished the legal opinion of Brown & Diven, Attorneys at Law, approving the legality of the proceedings and the issuance of sad bonds . SECTION 4 . That in the event of any delinquency in the payment of any installment of an assessment, it is hereby covenanted with the holder of the bonds that this legislative body will cause to be commenced and thereafter diligently prosecuted, judicial foreclosure proceedings upon all delinquent unpaid assessments within one hundred fifty (150 ) days following any delinquency. It is further hereby ordered that an investigation be initiated as soon as possible each year to PAGE END 2 - 5938 determine all tax delinquencies on all properties within the boundaries of the above referenced Assessment District . PASSED AND ADOPTED at a regular meeting. of the City Council of the City of Huntington Beach on the 24th day of October , 1988 . M or ATTEST: APPROVED AS TO FORM: CityClerk � t A torney L��-\�-�'Z�n 6 -i i�C a REVIEWED AND APPROVED: INITIATED AND APPROVED: Z 0 4- 4r & 2*,.. City Administrator Director of Public Works be 3 - 5938 Res. No. 5938 STATE OF CALIFORNIA ) j COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, CONNIE BROCKWAY, the duly appointed, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a regular meeting thereof held on the 24th day of October 19 88 by the following vote: AYES: Councilmembers: Kelly, Green, Finley, Erskine, Mays, Winchell NOES: Councilmembers: Bannister ABSENT: Councilmembers: None City- Clerk and ex-officio Werk of the City Council of the City of Huntington Beach, California The foregoing instrument is a correct , copy of the original on file il this office. Attest,",_,_ 19� City Clerk and Ex•officio Clerk of the City Council of the City of Huntington Beach, California. By & 6' eputy 5938 RESOLUTION NO. 5959 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTIN.GTON BEACH ORDERING CERTAIN CHANGES AND MODIFICATIONS TO THE ENGINEER'S REPORT IN A SPECIAL ASSESSMENT DISTRICT WHEREAS, the City Council of the City of Huntington Beach has previously adopted its Resolution of . Intention pursuant to the provisions of the "Municipal Improvement Act of 1913 , " being Division 12 of the Streets and Highways Code of the State of California, for the construction of certain works of improvement in a special assessment district known and designated as Assessment District No . 88-1 (Reservoir Hill) hereinafter referred to as the "Assessment District; " and Based upon the presentation and recommendations of staff and 1 available documentation, it now appears that the changes and 1 modifications as set forth in the amended assessment roll, as presented herein, should be approved and ordered to be done. NOW, THEREFORE, it is hereby resolved as follows : SECTION 1 . That the above recitals are all true and correct . SECTION 2 . That all changes and modifications as set forth in the final assessment roll and Engineer 's Report as herewith submitted are hereby ordered and authorized to be made . For all particulars, reference is made to said "Report" as herein approved, a copy of which will remain on file with the , transcript of these proceedings and open for public inspection . SECTION 3 . That the Engineer 's Report, the Assessment Roll, and all related documentation, as so modified, are for the _1_ 5959 i best interests of the property owners within the Assessment IDistrict, and said assessment, as modified, is in accordance with the benefits received, and the Report, as herein modified and amended, shall stand as the Report for all subsequent proceedings relating to this Assessment District . PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 5th day of December 1988 . Mayor ATTEST: APPROVED AS TO FORM: 46*40�"- A - City Clerk ��� City Attorney REVIEWED AND APPROVED INITIATED AND APPROVED: Gum- 43� 4� -�- 6 City AdministptorR Director, Public Works 11--rL�'Jj--gQS �J sg _2_ 5959 Res. No. 5959 STATE OF CALIFORNIA COUNTY OF ORANGE ; ss: CITY OF HUNTINGTON BEACH ) I, CONNIE BROCKWAY, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a regular meeting thereof held on the 5th day of December 19 gg , by the following vote: AYES: Councilmembers: MacAllister. Green. Winchell , Bannister, Mays, Silva, Erskine NOES: Councilmembers: None ABSENT: Councilmembers: None My Clerk and ex-o icy er of the City Council of the City of Huntington Beach, California The foregoing instrument is a correct copy of the original on file in this office. Attest1l�19q City Clerk and Ex-officio Clerk 01 th t City Council of the City of Huntington Beach, California. 5959 By Deputy RESOLUTION NO. 5960 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH OVERRULING AND DENYING PROTESTS AND MAKING CERTAIN FINDINGS IN A SPECIAL ASSESSMENT DISTRICT WHEREAS, the City Council of the City of Huntington Beach has, by resolution, declared its intention to order the construction of certain public works .of improvement, pursuant to the terms and provisions of the "Municipal Improvement Act of 1913, " being Division 12 of the Streets and Highways Code of the State of California, in a special assessment district known i and designated as Assessment District No. 88-1 (Reservoir Hill) hereinafter referred to as the "Assessment District; " and, Certain owners of property liable to be assessed for improvements have filed written protests or objections and delivered the same to the City Clerk not later than the hour set for hearing such objections; and At the time set for said public hearing, all protests and objections were duly heard and considered, and all matters as to the method and formula of the assessment spread and the determination as to whether or not the property did receive a benefit and whether the assessments were apportioned in accordance to benefit were heard and considered . NOW, THtREFORE, it is hereby resolved as follows : SECTION 1 . That the above recitals are all true and correct . = SECTION 2 . That the public hearing on the Assessment District is hereby closed . -1- SECTION 3 . That all protests and objections of every kind and nature be, and the same hereby are, overruled and denied, and it is further determined that said protests and objections are made by the owners of less than one-half (1/2 ) of the area of property to be assessed for said improvements within said Assessment District . SECTION 4 . That is hereby further determined that all properties within the boundaries of the Assessment District receive a local and direct benefit from the works of improvement as proposed for said Assessment District, and it is hereby further determined and declared that all assessable costs and expenses have been apportioned and spread over the properties within the boundaries of the assessment District in direct proportion to the benefits received thereby. SECTION 5 . That the Engineer 's method of spread and apportionment of all costs is hereby approved and adopted as being a correct and proper apportionment of all costs is hereby approved and adopted as being a correct and proper apportionment and distribution of all assessable costs for _ i -2- �Q�n these works of improvement. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 5th day of December , 1988 . Mayor ATTEST: APPROVED AS TO FORM: City Clerk WfCity Attorneye ��..2z.-� REVIEWED AND .APPROVED: INITIATED AND PPROVED: s City Administrator , LDirecto , Public Works sg 5960 -3- Res. No. 5960 STATE OF CALIFORNIA COUNTY OF ORANGE ; ss: CITY OF HUNTINGTON BEACH I, CONNIE BROCKWAY, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a regular meeting thereof held on the 5th day of December 19 88 , by the following -vote: i i AYES: Councilmembers: MacAllister, Green, Winchell , Bannister, Mays, Silva, Erskine NOES: Councilmembers: None ABSENT: Councilmembers: None &WM�o q. i y Uer and ex-officlo r1erk of the City Council of the City of Huntington Beach, California The foregoing instrument is a correct 1 copy of the original on file in this office, Attest J IQ 41119_9 City Clerk and Ex•officio Clerk'of the City Council of the City of Huntington Beach, California. 13y eputy RESOLUTION NO. 5961 I A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ' HUNTINGTON BEACH CONFIRMING THE ASSESSMENT, ORDERING THE IMPROVEMENTS MADE, TOGETHER WITH APPURTENANCES, AND APPROVING THE ENGINEER'S "REPORT" RELATED TO ASSESSMENT DISTRICT NO. 88-1 WHEREAS, the City Council of the City of Huntington Beach, did previously adopt its Resolution of Intention for the construction of certain public works of improvement, together with appurtenances and appurtenant work, including acquisition where appropriate, in a special assessment district known and designated as Assessment District No. 88-1 (Reservoir Hill) hereinafter referred to as the "Assessment District" ; and Pursuant to said Resolution of Intention, a "Report, " as therein provided, was presented, considered and approved; and Said "Report, " as preliminarily approved, contained all the matters and items called for by law and as pursuant to the provisions of the "Municipal Improvement Act of 1913 , " being . Division 12 of the Streets and Highways Code of the State of California, including the following: 1 . Plans and specifications of the proposed improvements; 2 . Estimate of 'cost; 3 . Diagram of Assessment District; ' 4 . An ' as*sessment according to benefits; 5. A description of the works of improvement; and, All protests have been heard and considered, and a full hearing has been given, all in the manner provided by law; and Notices of said hearing were duly and regularly posted, mailed and published in the time, form and manner required by -1� law and as evidenced by affidavits on file with the transcript of these proceedings; and, The owners of one-half (1/2 ) of the area assessed for the cost of the project did not file written protests against the said proposed. improvements and acquisition where appropriate, and this legislative body did, after providing a full hearing, overrule and deny all protests and objections; and, This legislative body is now satisfied with the assessment and all matters contained in the "report" as now updated and submitted. NOW, THEREFORE, it is hereby resolved as follows : RECITALS SECTION 1 . That the above .recitals are all true and I correct . PUBLIC INTEREST AND CONVENIENCE SECTION 2 . That the public interest and convenience require the proposed improvements to be made, and .therefore it is hereby ordered that the work to be done and improvements to be made, together with appurtenances and appurtenant work in connection therewith, including acquisition where appropriate, in said Assessment District, as set forth in the Resolution of Intention previously adopted and as set forth in the "Report" presented and considered, and as now submitted. CONFIRMATION OF ASSESSMENTS SECTION 3 . That the "Report, " as now updated and submitted, consisting of the assessment and diagram for the improvements, together with appurtenances and appurtenant work -2- 5961 in connection therewith, including acquisition where Iappropriate, is hereby confirmed. The assessment contained in said "Report" is hereby levied upon the respective subdivisions of land in the Assessment District as set forth in said "Report . " RECORDATION OF ASSESSMENT SECTION 4 . That the City Clerk shall forthwith deliver to the Superintendent of Streets the said assessment, together with the diagram attached thereto and made a part thereof, as confirmed, with his certificate of such confirmation attached and the date thereof; and that said Superintendent of Streets shall then immediately record said diagram and assessment in his office in a suitable book to be kept for that purpose and attach I thereto his certificate of the date of such recording. COUNTY RECORDER NOTICE SECTION 5 . Upon confirmation of the assessments and recordation of the assessment role and diagram, a certified copy of the assessment diagram shall be immediately filed in the office of the County Recorder . Immediately thereafter, a copy of the notice of assessment shall be recorded in the office of the County Recorder in the manner and form as set forth by law and specifically Section 3114 of the Streets and Highways Code of the State of California. MAILED NOTICE SECTION 6. That said Superintendent of Streets, upon the recording of said diagram and assessment, shall mail to each --_ owner of real property within the Assessment District at his 5961 -3- last known address, as the same appears on the tax rolls of the County or on file in the office of the City Clerk, or both addresses if said address is not the same, or to General Delivery when no address so appears, a statement containing a designation by street number or other description of the property assessed sufficient to enable the owner to identify the same, the amount of the assessment, the time and place of payment thereof, the effect of failure to pay within such time, and a statement of the fact that bonds will be issued on unpaid assessments pursuant to the "Improvement Bond Act of 1915 . " PUBLICATION SECTION 7 . That said Superintendent of Streets shall also give notice by publishing a copy of a notice of recording of assessment in the newspaper previously selected to publish all notices as provided by law, giving notice that said assessment has been recorded in his office, and that all sums assessed thereon are due and payable immediately, and that the payment of said sums is to be made within thirty (30 ) days after the date of recording the assessment, which date shall be so stated in said notice, and of the fact that securities will be .issued upon unpaid assessments . IMPROVEMENT FUND SECTION 6 . That the Treasurer is hereby authorized and directed to establish a special fund account to be known as the IMPROVEMENT FUND, and designated by 'the name of this Assessment District, into which fund shall be paid all payments to be received upon said assessment, and the proceeds of the sale of bonds to be issued representing unpaid assessments . -4- 5961 RESERVE FUND SECTION 9 . That the Treasurer is hereby further authorized to establish a special reserve fund, into which the . designated amount shall be transferred and held in trust for the bondholders and used to assist final discharge by any payment by property owners within the boundaries of the Assessment District . PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 5th day of December , 1988 . Mayor ATTEST: APPROVED AS TO FORM: City Clerk 1Y i t y Attorneyw� REVIEWED AND APPROVED: NITIATED AN APPROVED: City Administrator Director, Public Works _5_ 5961 Res, No. 5961 STATE OF CALIFORNIA COUNTY OF ORANGE ss: CITY OF HUNTINGTON- BEACH ) . I, CONNIE BROCKWAY, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a regular meeting thereof held on the 5th day of December 19 88 , by the following vote: AYES: Councilmembers: MacAllister, Green, Winchell , Bannister, Mays , Silva, Erskine NOES: Councilmembers: None ABSENT: Councilmembers: None City Clerk and ex-o ici er of the City Council of the City of Huntington Beach, California The foregoing instrument is a correct copy of the original on file in this office. Attest_ 19'a City Clerk and Ex-officio Clerk OT the City Council of the City of Huntington Beach, California. By -; Deputy RESOLUTION NO. 5970 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH, CALIFORNIA, AUTHORIZING ISSUANCE OF BONDS, APPROVING BOND INDENTURE AND PRELIMINARY OFFICIAL STATEMENT FOR A SPECIAL ASSESSMENT DISTRICT WHEREAS, the CITY COUNCIL of the CITY OF HUNTINGTON BEACH,,- is conducting proceedings for the construction of certain public improvements in a special assessment district pursuant to the terms and provisions of the "Municipal Improvement Act of 191311 , being Division 12 of the Streets and Highways Code of the State of California, said special assessment district known and designated as ASSESSMENT DISTRICT NO. 88-1 (RESERVOIR HILL) (hereinafter referred. to as the "Assessment District" ) ; and j This legislative body has previously declared in its Resolution of Intention to issue bonds to finance said improvements, said bonds to issue pursuant to the terms and provisions of the "Improvement Bond Act of 1915" being Division 10 of said Code; and, At this time this legislative body is desireous to set forth all formal terms and conditions relating to the authorization, issuance and administration of said bonds; and There has been presented, considered and ready for approval a bond indenture- setting forth formal terms and conditions relating to the issuance and sale of bonds; and, There has also been presented a Preliminary Official Statement containing information including but not limited to the Assessment District and the -type of bonds, including terms and conditions thereof. -1- 5970 NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: SECTION 1 . That the above recitals are true and correct . SECTION 2 . That this legislative body does authorize the issuance of bonds pursuant to the terms and provisions of the "Improvement Bond Act of 191511 , being Division 10 of the Streets and Highways Code of the State of California, and does expressly approve the BOND INDENTURE substantially in the form presented herein, subject to modifications as necessary and as approved by the City Attorney and the City Manager . A copy of said BOND INDENTURE shall be kept on file with the transcript of these proceedings and open for public inspection, with final approval conclusively evidenced by the City Manager 's execution. Said bonds shall be issued and subject to the terms and conditions in said approved Bond Indenture . _SECTION 3 . That the Preliminary Official Statement, as prepared and submitted, is hereby approved and adopted, and the. execution and distribution is hereby. authorized. A copy of said Preliminary Official Statement shall be kept on file with the transcript of these proceedings and remain open for public inspection. The City Manager is hereby authorized, subject to Bond counsel concurrence, to approve a final Official Statement in substantial compliance with the Preliminary Official Statement, and upon such approval, the execution and distribution of such final Official Statement is authorized. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 19th day of December , 1988 . M&XOQ _2_ 5970 BOND INDENTURE .I This Bond Indenture (the "Indenture") dated as of December 19, 1988, entered into and approved by the City of Huntington Beach (the "Issuer") , a municipal corporation, to establish the terms and conditions pertaining to the issuance of bonds in a special assessment district known and designated as ASSESSMENT DISTRICT NO. 88-1 (RESERVOIR HILL) " (the "Assessment District") . SECTION 1. Issuance, Designation and Amount. Pursuant to the provisions of the "Improvement Bond Act of 191511, being Division 10 of the Streets and Highways Code of the State of California, as amended (the "Act") , the Issuer does hereby authorize the issuance of bonds to represent unpaid assessments within the Assessment District in principal amount not -to exceed $1,837,000.00 and designated as the City of Huntington Beach, Assessment District No. 88-1 (Reservoir Hill) Limited Obligation Improvement Bonds (the "Bonds") . SECTION 2. Unpaid Assessments. The Issuer shall, immediately upon the completion of the 30-day cash collection period, determine the assessments which are unpaid and the aggregate amount thereof as authorized by Section 8621 of the Streets and Highways Code of the State of California. SECTION 3. Term of Bonds. Bonds to represent the unpaid assessments, and bear interest at a rate not to exceed the current legal maximum rate of 12% 1i per annum, will be issued in the manner provided in the Act, the last installment of which Bonds shall mature a maximum of and not to exceed nineteen (19) years from the second day of September next succeeding twelve (12) months from their date. The provisions of Part 11. 1 of the Act, providing an alternative procedure for the advance payment of assessments and the calling of Bonds shall apply. SECTION 4 Registered Bonds. Said Bonds shall be issuable only as fully regis- tered " Bonds in the denomination of $5,000, or any integral multiple thereof, except for one bond maturing in the first year of maturit.y, which shall include the amount by which the total issue exceeds the maximum integral multiple of $5,000 contained therein. SECTION 5. Date of Bonds . All of said Bonds shall be dated the 17th day of January, 1989, and interest shall accrue from that date'. " SECTION 6. Maturity and Denomination. The Bonds• shall be issued in serial form with annual maturities on September 2nd of every year succeeding twelve (12) months after their date, until the whole is paid. The amount maturing each year shall be such as to result in approximately equal annual debt service during the term of the issue as reflected by the interest rate and/or rates and principal amounts maturing in the respec- tive years of maturity as set forth in Exhibit "A" attached hereto and incorporated herein by this reference, and the Issuer shall, imme- diately upon completion of the cash collection period, prescribe the denominations of the Bonds, which shall be in convenient amounts, not necessarily equal, and shall further provide for their issuance and delivery. 1 5970 SECTION 7. Interest. Each Bond shall be of a single maturity . and shall bear interest at the rate as set forth in Exhibit "A" hereto from the 1 interest payment date next preceding the date on which it authenticated y and registered, unless said Bond is authenticated and registered as of an interest payment date, in which case it shall bear interest from said interest payment date, or unless said Bond is authenticated and " registered prior to the first interest payment date, in which case it shall bear interest from its date, until payment of its principal sum has been discharged. SECTION 8. Place of Payment. The principal on the Bonds shall be payable in lawful money of the United States of America upon surrender of the Bond at the office of the designated registrar, transfer agent and paying agent of the Issuer ( "Paying Agent" ) , or such other registrar, transfer agent or paying agent as may be designated by subsequent Resolution of the Issuer. Interest on said Bonds shall be paid by check or draft to the regis- tered owner thereof at his address as it appears on the books of regis- tration, or at such address as may have been filed with the Paying Agent for that purpose, as of the 15th day of the month immediately preceding said interest payment date. SECTION 9. Redemption. This Bond, or a portion thereof if issued in a denomina- tion greater than $5,000, shall be subject to redemption and payment in advance of maturity in increments of $5,000 as provided in Section 8768 of the Streets and Highways Code, on the 2nd day of March or September . 1 in any year, .by giving the notice provided in said law to the regis- tered owner thereof at his address as it appears on the books of regis- tration and by paying principal of and accrued interest on such redeemed amount, together with a premium equal to three percent (3%) of the redeemed principal amount. If less than the entire Bond is redeemed, the unredeemed portion shall be reissued to the registered owner thereof. SECTION 10. Transfer of Registered Bonds. Any fully registered Bond may, in accor- dance with its terms, be transferred upon the books of registration required to be kept pursuant to the provisions of Section 11 by the owner in whose name it is registered, or by his duly authorized attorney or legal representative, upon surrender of such fully regis- tered Bond for registration of such transfer, accompanied by delivery of a written instrument or transfer in a form approved by the Paying Agent and by the owner of said Bonds, duly executed. SECTION 11. Exchange of Registered Bonds. Fully registered Bonds may be exchanged at the. office of the Paying Agent for a like aggregate principal amount of Bons of the same series, interest rate and maturity, subject to the terms and conditions provided in the system of registration for. regis- tered debt obligations, including the payment of certain. charges, if �--• any, upon surrender and cancellation of this Bond. Upon such transfer and exchange, a new registered Bond or Bonds of any authorized denomina- J` � tion or denominations of the same maturity for the same aggregate l principal amount will be issued to the transferee in exchange therefor. 2 cn�n SECTION 12. Books of Registration. There shall be kept by the Paying Agent sufficient books for -the registration and transfer of the Bonds and, upon presentation for such purpose, the Paying Agent shall, under such reasonable regulations as it may prescribe, register or transfer or cause to be registered or transferred, on said register, Bonds as hereinbefore provided. SECTION 13. Execution of Bonds. The Bonds shall be executed in facsimile by the Treasurer and by the City Clerk, and the corporate seal shall be imprinted in facsimile on the Bonds. The Bonds shall then be delivered to the Paying Agent for authentication and registration. In case an officer who shall have signed or attested to any of the Bonds by facsimile or otherwise shall cease to be such officer before the authen- tication, delivery and issuance of the Bonds, such Bonds nevertheless may be authenticated, delivered and issued, and upon such authentica- tion, delivery and issue, shall be as binding as though those who signed and attested the same had remained in office. SECTION 14. Authentication. Only such of the Bonds as shall bear thereon a certifi- cate of authentication substantially in the form below, manually executed by the Paying Agent, shall be valid or obligatory for any purpose or entitled to the benefits of this Indenture, and such certificate of the transfer agent and registrar shall be conclusive evidence that the Bonds so authenticated have been duly executed, authenticated and delivered hereunder, and are entitled to the benefits of this Indenture. -� FORM OF CERTIFICATE OF AUTHENTICATION AND REGISTRATION This bond has been authenticated and registered on 1 as Transfer Agent, Registrar and Paying Agent By: SECTION 15. Negotiability, Registration and Transfer of Bonds. The transfer of any Bond may be registered only upon such books of registration upon surren- der thereof to the Paying Agent, together with an assignment duly executed by the owner or his attorney or legal representative, in satis- factory form. Upon any such registration of transfer, a new Bond or Bonds shall be authenticated and delivered in exchange for such Bond, in the name of the transferee, of any denomination or denominations authorized by this Indenture, and in an aggregate principal amount equal to the principal amount of such Bond or principal amount of such Bond or Bonds so surrendered. In all cases in which Bonds shall be exchanged or transferred, the Paying Agent shall authenticate at the earliest practical time, Bonds -in accordance with the provisions of this Indenture. All Bonds surrendered in such exchange or registration transfer shall forthwith be cancelled. The Paying Agent may make a charge for every such exchange or registration of transfer of Bonds sufficient• to reimburse it for any tax or other governmental charge required to be paid with respect to such exchange or registration of 3 5970 transfer. No transfer of fully registered Bonds shall be required to be made between the fifteenth (15th) day of the month next preceding each interest payment date, nor during the fifteen (15) days preceding 4 ,I. the selection of any Bonds for redemption prior to the maturity thereof, nor with respect to any Bond which has been selected for redemption prior to the maturity thereof. SECTION 16. Ownership of Bonds. The person in whose name any Bond shall be regis- tered shall be deemed and regarded as the absolute owner thereof for all purposes, and payment of or on account of the principal and redemp- tion premium, if any, of any such Bond, and the interest on any such Bond, shall be made only to or upon the order of the registered owner thereof or his legal representative. All such payments shall be valid and effectual to satisfy and discharge the liability upon such Bond, including the redemption premium, if any, and interest thereon, to the extent of the sum or sums so paid. SECTION 17. Mutilated, Destroyed, Stolen or Lost Bonds. In case any Bond secured hereby shall become mutilated or be destroyed, stolen or lost, the Issuer shall cause to be executed and authenticated a new Bond of like date and tenor in exchange and substitution for and upon the cancella- tion of such mutilated Bond or in lieu of and in substitution for such Bond mutilated, destroyed, stolen or lost, upon the owner's paying the reasonable expenses and charges in connection therewith, and, in the case of a Bond destroyed, stolen or lost, his filing with the Paying Agent and Issuer of evidence satisfactory to them that such Bond was destroyed, stolen or lost, and of his ownership thereof, and furnishing f the Paying Agent and Issuer with indemnity satisfactory to them. SECTION 18. Cancellation of Bonds. All Bonds paid or redeemed, either at or before maturity, shall be cancelled upon the payment or redemption of such Bonds, and shall be delivered to the Paying Agent when such payment or redemption is made. All Bonds cancelled under any of the provisions Of this Indenture shall be destroyed by the Paying Agent, which shall execute a certificate in duplicate describing the Bonds so destroyed, and shall retain said executed certificate in its permanent files for the issue. SECTION 19. Creation of Funds. The Treasurer is hereby authorized and directed to establish the following Funds for purposes of making payment for the costs and expenses for the works of improvement and payment of principal and interest on the Bonds. The Funds to be created are designated as follows: IMPROVEMENT FUND: The proceeds from the sale of the Bonds, after deposit of required amounts in the Reserve Fund and Redemption Fund, shall be placed in the Fund hereby created, pursuant to Sections 10602 and 10424 of the California Streets and Highways Code, as amended, which ghall be called the "Improvement Fund", and the monies in said Fund shall be used only for the purposes authorized in said assessment proceedings, and specifically to pay for the costs and expenses of the construction or acquisition of the authorized public capital improve- ments, together with all incidental expenses. Any surplus in the Improvement Fund after completion of the improvements shall remain in 4 5970 the Improvement Fund for a period of not less than two (2) years from the receipt of Bond proceeds as provided in Section 10427.1 of the California Streets and Highways Code, and thereafter shall be utilized or distributed as determined by the Issuer. . REDEMPTION FUND: The Treasurer is hereby authorized and directed to keep a Redemption Fund designated by the name of the proceedings, into which he shall place accrued interest, if any, on the Bonds from the date of the Bonds to the date of delivery to the initial purchaser thereof, all sums received for the collection of the assessments and the interest thereon, together with all penalties, if applicable. Principal of and interest on said Bonds shall be paid to the registered owner out of the Redemption Fund created pursuant to Section 8671 of the California Streets and Highways Code. Accrued• interest .paid by the purchaser of the Bonds, if any, shall be deposited in the Redemption Fund. In all respects not recited herein, said Bonds shall be governed by the provisions of the Act. Under no circumstances shall the Bonds or interest thereon be paid out of any other fund except as provided by law. RESERVE FUND: Pursuant to Part 16 of the Act, there shall be created a special reserve fund for the Bonds to be designated by the name of the Assessment District and specified as the special "Reserve Fund". An amount equal to six percent (6%) of the original Bond proceeds shall be deposited in the Reserve Fund out of said Bond proceeds. Monies in the Reserve Fund shall be applied as follows: A. Amounts in said Reserve Fund shall be transferred to the Redemption Fund for the Bonds if, as result of delinquencies in the payment of assessments, there are insufficient monies in said Redemption Fund to pay principal of and interest on the Bonds when due. Amounts so transferred shall be repaid to the Reserve Fund from proceeds from the redemption or foreclosure of property with respect to which an assessment is unpaid and from payments of the delinquent assessments; B. Interest earned on the permitted investment of monies on deposit in the Reserve Fund shall remain in the Reserve Fund so that the amount therein may accumulate to and subsequently be maintained at the "Reserve Requirement" . The Reserve Requirement shall be an amount equal to the lesser of (i) the Maximum Annual Debt Service on the Bonds, (11) 125% of the average annual debt service on the Bonds, or (iii) 10% of the original principal amount of the Bonds. Annual Debt Service on the Bonds for each year ending September 2nd shall equal -the sum of (a) the interest falling due on the outstand- ing Bonds in such 12 month period, assuming that the outstanding Bonds are retired as scheduled, and (b) the principal amount of outstanding Bonds falling due during such 12 month period. "Average Annual Debt Service" shall mean the average Annual Debt Service during the term of the Bonds . "Maximum Annual Debt Service" shall mean, as computed from time to time, the largest Annual Debt Service during the period from the date of such computa- tion through the final maturity of any outstanding Bonds. 5 cn-7n C. On July 15 of each fiscal year the amount on deposit in the Reserve -, Fund in excess of the Reserve Requirement shall be transferred from the Reserve Fund to the Redemption Fund and shall be credited to iI the unpaid assessment installments payable during ouch fiscal year. The Auditor ' s record, prepared pursuant to Section 8682 of the Streets and Highways Code, shall reflect the credits against each of the unpaid assessments in the manner provided in Streets and Highways Code Section 10427. 1 in amounts equal to each parcel s proportionate share of such transfer. Notwithstanding the above, interest earnings on monies on deposit in the Reserve Fund in excess of the "yield" on the Bonds, as that term is defined in the Internal Revenue Code of 1986 (the "Code") , shall be subject to transfer and rebate to the United States. D. Whenever monies in the Reserve Fund are sufficient to retire all of the Bonds outstanding, plus accrued interest thereon, such money shall be transferred to the Redemption Fund for the Bonds and collection of the remaining unpaid assessments shall cease. E. In the event assessments are paid in cash in advance of their final ; maturity date, the Issuer is required to credit the prepaid assess- ment with a proportionate share of the Reserve Fund and to transfer an amount equal to such credit to the Redemption Fund to be utilized for the advance retirement of Bonds. ECTION 20. No Issuer Liability. It is hereby further determined and declared that the Issuer will not obligate itself to advance any available funds from its Treasury to cure any deficiency or delinquency which may occur in the Bond Redemption Fund by failure of property owners to pay annual special assessments. This determination shall be clearly set forth and stated in the title of the Bonds to be issued pursuant to these proceed- ings as authorized and required by Section 8769 of the Streets and Highways Code of the State of California. SECTION 21. Covenant to Foreclose. The Issuer hereby covenants that upon default of any assessment payment due, it will cause Superior Court foreclosure proceedings to be brought within one hundred fifty (150) days of such default and thereafter diligently prosecute to completion such proceed- ings. Such foreclosure proceedings may be deferred if funds are advanced to the special Reserve Fund to keep said Fund continually at the level set forth in the Section entitled "Reserve Fund" set forth hereinabove. SECTION 22. Covenant to Maintain Tax-Exempt Status. The Issuer covenants that it will not make any use of the proceeds of the Bonds issued hereunder which would cause the Bonds to become "arbitrage bonds" subject to Federal income taxation pursuant to the provisions of Section 148(a) of the Code, or to become "Federally-guaranteed obligations" pursuant to the provisions of Section 149(b) of the Code, or to become "private I activity bonds" pursuant to the provisions of Section 141(a) of the Code. To that end, the Issuer will comply with all applicable require- ments of the Code and all regulations of the United States Department of Treasury issued thereunder to the extent such requirements are, at 6 '5970 the time, applicable and in effect. Additionally, the Issuer agrees to implement and follow each and every recommendation provided by Bond Counsel and deemed to be necessary to be undertaken by the Issuer to ensure compliance with all applicable provisions of the Code in order to preserve the exemption of interest on the Bonds from Federal income taxation. SECTION 23. Covenant Regarding Arbitrage. The Issuer shall not take or permit nor suffer to be taken any action with respect to the gross proceeds of the Bonds as such term is defined under the Code which, if such action had been reasonably expected to have been taken, or had been deliberately and intentionally taken, on the date of issuance of the Bonds, would have caused the Bonds to be "arbitrage bonds" within the meaning of Section 148 of the Code and the regulations promulgated thereunder. SECTION 24. Order to Print and Authenticate Bonds . The Treasurer is hereby instructed to cause Bonds, as set forth above, to be printed, and to proceed to cause said Bonds to be authenticated and delivered to an authorized representative of the purchaser, upon payment of the purchase price as set forth in . the accepted proposal for the sale of Bonds. SECTION 25. Arbitrage_ Certificate. On the basis of the facts, estimates and circum- stances now in existence and in existence on the date of issue of the Bonds, as determined by the Treasurer, said Treasurer is hereby autho- rized to certify that it is not expected that the proceeds of the issue 1 will be used in a manner that would cause such obligations to be arbitrage Bonds . Such certification shall be delivered to the purchaser together with the Bonds. IN WITNESS WHEREOF, the Issuer has executed this Bond Indenture effective the date first written hereinabove. CITY MANAGER CITY OF HUNTINGTON BEACH STATE OF CALIFORNIA 5970 i ATTEST: i City Clerk REVIEWED AND APPROVED: APPROVED AS TO FORM: City Administrator City Attorney INITI ED AND APPROVED: Chief off= mii,�istrativ Se vices STATE OF CALIFORNIA ) COUNTY OF ORANGE. ) ss . CITY OF HUNTINGTON BEACH ) I , CONNIE BROCKWAY, the duly elected, qualified and acting City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said city, do hereby certify that the whole number of members of the City Council of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of more than a majority of all the members of said City Council at a regular meeting thereof held on the 19th day of December , 1988 , by the following vote: AYES: COUNCILMEN: MacAllister, Green, Winchell , Bannister, Mays, Silva, Erskine -3- Cn7rl NOES: COUNCILMEN: I _ None ABSENT: COUNCILMEN: None City Clerk The foregoing instrument is a. correct copy of the original on file in this office. Attest 42 19 City Clerk and Ex-officio Clerk oY the City Council of the City of Huntington Beach, California. By,� ' ePu�► —4— 5970 t �Ii t EXHIBIT A .� $1,774,511.39* City of Huntington Beach Assessment District No. 88-1 Limited Obligation Improvement Bonds (Reservoir Hill ) Principal* Maturity Date Amount Interest Rate 9/02/90 $ 4,511.39 6.500 9/02/91 40,000.00 6.700 9/02/92 50,000.00 6.900 9/02/93 50,000.00 7.000 9/02/94 55,000.00 7.200 - 9/02/95 60,000.00 7.400 9/02/96 65,000.00 7.500 9/02/97 70,000.00 7.600 9/02/98 75,000.00 7.700 9/02/99 80,000.00 7.800 9/02/00 85,000.00 7.900 9/02/01 90,000.00 7.900 9/02/02 100,000.00 8.000 9/02/03 105,000.00 8.000 9/02/04 115,000.00 8.000 9/02/05 125,000.00 8. 100 9/02/06 135,000.00 8.100 9/02/07 145,000.00 8.100 9/02/08 155,000.00 8-. 100 9/02/09 170,000.00 8.100 Total $1,774,511 .39 The net interest cost, which includes a discount of 2.50%, is 8.15%. The average coupon rate is 7.97%. All Bonds are re-offered at par. * Subject to change upon close of cash collection period on January 5, 1989. RESOLUTION NO. 5971 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH ACCEPTING PROPOSAL FOR SALE OF BONDS AND PROVIDING FOR THE ESTABLISHMENT OF A REDEMPTION FUND WHEREAS, the CITY COUNCIL of the CITY OF HUNTINGTON BEACH has heretofore instituted and conducted proceedings under the terms and provisions of the "Municipal Improvement Act of 1913" , being Division 12 of the Streets and Highways Code of the State of California, for the construction of certain public works of improvement, together with appurtenances and appurtenant work, in a special assessment district known and designated as ASSESSMENT DISTRICT No. 88-1 (RESERVOIR HILL) (hereinafter referred to as the "Assessment District" ) ; and In the Resolution of Intention it was determined and declared that bonds should issue under the provisions of the "Improvement Bond act of 1915" , being Division 10 of the Streets and Highways Code of the State of California; and There has now been received, in proper form, a proposal (hereinafter the "proposal" ) for the purchase of said bonds to issue under said proceedings, which is considered to best serve the interests of owners of land included within the Assessment District and should be accepted, NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS : SECTION 1 . That the above recitals are all true and correct . SECTION 2 . That the proposal received December 19, 1988 , from STONE & YOUNGBERG for the purchase of improvement bonds representing unpaid assessments in said Assessment District is hereby accepted and approved. SECTION 3 . The said sale is subject to all the terms and conditions as set forth in the Bond Indenture and in the accepted } proposal . SECTION 4 . That subject to approval by the City Attorney, the Mayor and City Clerk are hereby authorized to execute the proposal and a copy of said proposal shall be kept on file with the transcript of these proceedings . -1- 10 SECTION 5 .. That the Treasurer be, and hereby is, directed to have the bonds printed immediately upon the expiration of the cash collection period, and said Treasurer shall then have said bonds signed and delivered upon receipt of the amount of monies due pursuant to said proposal and upon the performance of all t-he conditions as set forth in the proposal . SECTION 6 . That the interest rate or rates on said bonds be, and the same hereby is fixed at the rate or rates as set forth in said accepted proposal . SECTION 7. That the Treasurer is hereby authorized and directed to keep a redemption fund designated by the name of the proceedings, into which he shall place all sums received for the collection of the assessments and the interest thereon, together with all penalties, .if applicable, thereon and from which he shall disburse such funds to the registered owner . Under no circumstances shall the said bonds or interest thereon by paid out of any other fund except as provided by law. Said fund shall be- known as the REDEMPTION FUND, and shall be designated by the name of this Assessment District . SECTION 8 . That the Treasurer shall transfer monies as necessary from the SPECIAL RESERVE FUND in the manner and form as authorized by law. PASSED and ADOPTED by the City Council of "the City of Huntington Beach at a regular -meeting thereof held on the 19th day of December , 1988 . Mayor ATTES APPROVED AS 0 FORM: . v-- City Clerk City Attorney l REV ND FF ED: NITIATED ND APPROVED: C ' ty Administrator Dire for of Public Works - ►'�._ th-gib -2- SQ'7i ��- STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF HUNTINGTON BEACH) I , CONNIE BROCKWAY,- the duly elected, qualified and acting City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said city, do hereby certify that the whole number of members of the City Council of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of more than a majority of all the members of said City Council at a regular meeting thereof held on the 19th day of December ,, 1988, 'by the following votes : AYES: COUNCILMEN: MacAllister, Green, Winchell , Bannister, Mays, Silva, Erskine NOES: —COUNCILMEN: None ABSENT: COUNCILMEN: None The foregoing instrument is a correct copy of the original on file in this office.Attest City Clerk / 19 !t City Clerk and Ex-officio Clerk of the City Council of the City of Huntington Beach, California. By t, Deputy -3- 5971 RESOLUTION NO. 5972 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH AWARDING THE CONTRACT FOR THE CONSTRUCTION OF CERTAIN PUBLIC WORKS OF IMPROVEMENT IN A SPECIAL ASSESSMENT DISTRICT WHEREAS, the CITY COUNCIL of the CITY OF HUNTINGTON BEACH did publicly open, examine and declare all sealed proposals or bids for doing the work and improvements described in its Resolution of Intention, which Resolution and a "Report" subsequently approved, are hereby expressly referred to for a description of said work and improvements and for all particulars relative to the proceedings for the works of improvement, in a special assessment district known and designated as ASSESSMENT DISTRICT NO. 88-1 (RESERVOIR HILL) (hereinafter referred to as the "Assessment . District" ) , NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: I SECTION 1 . That the above recitals are all true and correct . SECTION 2 . That this legislative body hereby rejects all of said proposals or bids except that herein mentioned, and does hereby award the construction contract for doing said work and making improvements in the Assessment District to the lowest responsible bidder, to-wit : DRAINAGE CONSTRUCTION COMPANY, INCORPORATED at the prices named in the bid of said bidder on file with the transcript of these proceedings and open for public inspection. SECTION 3 . That this award of contract is hereby conditioned upon and made subject to the receipt of monies and proceeds from •the issuance and sale of bonds . The Contractor shall not commence construction or order equipment until he has received a Notice to Proceed . Any progress payment to the Contractor for work completed may be delayed if monies have not been received from the sale of bonds. SECTION 4 . That the works of improvement shall be constructed in the manner and form as set forth in the plans and _1_ 5972 specifications for these proceedings, as previously approved as a part of the "Report" , as required by law and specifically the "Municipal Improvement Act of 191311 , being Division 12 of the Streets and Highways Code of the State of California. SECTION 5 . That subject to approval by the City Attorney, the Mayor and City Clerk are hereby authorized to execute the Agreement for the works of improvement relating to said Assessment District, and a copy of said Agreement shall be on file with- the transcript of these proceedings. SECTION 6 . That all monies to pay for the costs and expenses of the above referenced Assessment District shall be paid from the funds as deposited in the Improvement Fund, including any interest earned thereon. PASSED and ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 19th day of December , 1988 . Mayor ATTEST: APPROVED Ar FORM: City Clerk &I City Attorney REV P,-. D 1�P15R0� D : INITIATED A APPROVED: City Administrator Direc or of Public Works STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss . CITY OF HUNTINGTON BEACH) I , CONNIE BROCKWAY, the duly elected, qualified - and acting City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said city, do hereby certify that the whole number of members of the City Council of Huntington Beach -2- 5972 is seven; that the foregoing resolution was passed and adopted by the affirmative vote of more than a majority of all the members of said City Council at a regular meeting thereof held on the 19th day of December , 1988, by the following vote: AYES: COUNCILMEN: MacAllis er, Green Winchell Bannister,-May-., Silva, Frckina NOES: COUNCILMEN: None ABSENT: COUNCILMEN: None City Clerk The foregoing instrument is a corrQct copy of the original on file i thi office. Attest ��f 19 gQ City Clerk and Ex•officio Clerk of the City Council of the City of Huntington Beach. California. $y� Deputy -3- CA-7A CERTIFICATE OF COMPLIANCE WITH NOTICE REQUIREMENTS ASSESSMENT DISTRICT NO. 88-1 (RESERVOIR HILL) STATE OF CALIFORNIA COUNTY OF ORANGE CITY OF HUNTINGTON BEACH CONNIE BROCKWAY, under penalty of perjury, CERTIFIES AS FOLLOWS: The undersigned is now, and at all times mentioned herein was, the duly qualified and acting CITY CLERK of the CITY OF HUNTINGTON BEACH, CALIFORNIA, and as such, accomplished the notice requirements in connection with the referenced Assessment District, as noted: POSTING The NOTICE OF IMPROVEMENT was posted not more than three hundred (300) feet apart on all open streets within the District described in a Resolution of Intention previously adopted, and not less than three (3) Notices in all were posted. Said posting was completed on the 16th day of November , 1988. A copy of the AGENDA for the meeting of October 24, 1988, setting forth a general description of the project and the time and place of the meeting, was posted in 'a location freely accessible to the general public at least 72 hours before the time set for said meeting; said posting being accomplished on the 20th day of October , 1988. PUBLICATION (DAILY PILOT) The NOTICE INVITING SEALED PROPOSALS was published once a week - for two successive weeks; said publications being accomplished on the 29th day of October , 1988, and on the 3rd day of November 1988, and 10 November, 1988 . The NOTICE OF IMPROVEMENT was published in the designated legal newspaper in accordance with Section 6066 of the Government Code of the State of California, said publication being Made once a week for two successive weeks; said publications being accomplished on the 3rd day of November 1988, and on the loth day of November 1988. RECORDING A copy of the proposed BOUNDARY MAP was filed in the Office of the County Recorder within fifteen (15) days after the adoption of the Resolution Setting Hearing; said filing 'being accomplished on the 28th day of October 1988. i � T MAILING The NOTICE TO PROPERTY OWNERS (NOTICE. OF HEARING) under Division 12 of the Streets and Highways Code of the State of California ("Municipal Improvement Act of 1913") , was mailed to all persons owning real property proposed to be assessed according to the names and addresses of such owners as the same appear on the last County Assessment Roll, or at his address as known to the undersigned; also to every owner of property assessed by the State, under Section 14 of Article XIII of the Constitution of the State of California, at the address of the owner of such property as shown on the last City roll transmitted to the County Auditor in all instances where such property is proposed to be assessed; said mailing being accomplished on the 3rd day of November , 1988. EXECUTED this day of , 1988, at Huntington Beach, California. CITY CLERK CITY OF HUNTINGTON BEACH STATE OF CALIFORNIA The foregoing instrument is. a correct copy of the original on file in th's office. Attest Iq�E City Clerk and Er-officio C'srlc , th Cily Council of tha City of Huntington 1323ch, Czliiornia.By Y17a-1,d(d:r; X-2�jD eputy CERTIFICATE OF COMPLIANCE WITH NOTICE-REQUIREMENTS ASSESSMENT DISTRICT NO. 88-1 (RESERVOIR HILL) STATE OF CALIFORNIA COUNTY OF ORANGE CITY OF HUNTINGTON BEACH CONNIE BROCKWAY, under penalty of perjury, CERTIFIES AS FOLLOWS: The undersigned is now, and at all times mentioned herein was, the duly qualified and acting CITY CLERK of the CITY OF, HUNTINGTON BEACH, CALIFORNIA, and as such, accomplished the notice requirements in connection with the referenced Assessment District, as noted: RECORDATION The original of the ASSESSMENT ROLL AND DIAGRAM was recorded in the Office of the Superintendent of Streets on the 7th day of December , 1988. A copy .of the .ASSESSMENT DIAGRAM was filed in the Office of the County Recorder, in Assessment District Maps Book 45 , Page(s) 29 thru 34 on the 7th day of December 1988, as Document No. 88-637474 . A copy of the NOTICE OF ASSESSMENT was recorded in the Office of the County Recorder on the 7th day of December 1988. PUBLICATION (DAILY PILOT) The STATEMENT OF ASSESSMENT, pursuant to Section 6066 of the Government Code of the State of California, was published once a week for two successive weeks, with at least five days intervening between publications; said publications being accomplished on the 9th day of December , 1988, and on the 15th day of December 1988. POSTING A copy of the AGENDA for the meeting of December 5, 1988, setting forth a general description of the .project and the time and place of the meeting, was posted in a location freely accessible to _the general 'public at least 72 hours before the time set for said meeting; said posting being accomplished on the 2nd day of December , 1988. MAILING The STATEMENT OF ASSESSMENT, pursuant to the provisions of the "Municipal Improve- ment Act of 191311, was mailed, postage prepaid, to each person owning property in the Assessment District at his last known address as it appears on the tax rolls of the City, or on file in the Office of the undersigned, or to both addresses if they are not the same, or when no address appears, the same was mailed to the person addressed to General Delivery, which Notice also designated the property within the Assessment District belonging to each such owner and contained a statement of the amount to be assessed against the property of each owner, respectively; said mailing being accomplished on the 9th day of December , 1988. EXECUTED this day of ( -'�r��[i 1988, at Huntington Beach, California. r CITY CLERK CITY OF HUNTINGTON BEACH STATE OF CALIFORNIA The foregoing instrument is a correct COW of the original on file in office. Attest thi 1 g,pq City Clerk and Ex•officio Cler of the City Council of the City of Huntington Beach, California. aDeputy Ri.CUCS7CUEST +PJG 8V-6374T5 EU Y. WHEN RECORDED, RETURN TO RECORDED IN OFFICIAL RECORDS OF ORANGE COUNTY,CALIFORNIA CITY CLERK 4:00 CITY OF HUNTINGTON BEACH 1✓M DEC — 7 1988 2000 MAIN STREET _ HUNTINGTON BEACH, CA 92648 pp Q L�,� Recorder C11 NOTICE OF ASSESSMENT Pursuant to the requirements of Section 3114 of the Streets and Highways Code of the State of California, the undersigned, CITY CLERK of the legislative body of the CITY OF HUNTINGTON BEACH, STATE OF CALIFORNIA, HEREBY GIVES NOTICE that a diagram and assessment were recorded in the Office of the Superintendent of Streets of said City, as provided for in said Section 3114, and relating to the following described real property: All that property lying within the boundaries of the Assessment District, of which the exterior boundaries and real property of said District are as delineated upon a map of said District entitled ASSESSMENT DISTRICT NO. 88-1 (RESERVOIR HILL) filed in the Office of the County Recorder o ORANGE COUNTY on the , '�'�}. day of '�rG ,` , 1988, in Book P-age(s) T^� , Document No. , MAPS OF AS ESSMENT DISTRICTS, Official Re ords of said County, and as shown on an assessment diagram recorded in the Office of the Superintendent of Streets of said 0, and reference is hereby made to said Map for the description of the real property within said Assessment District. NOTICE IS FURTHER GIVEN that upon the recording of this Notice in the Office of the County Recorder, the several assessments assessed on the lots, pieces and parcels shown on said filed Assessment Diagram shall become a lien upon the lots or portions of lots assessed, respectively. Reference is made to the Assessment Diagram and Assessment Roll recorded in the Office of the Superintendent of Streets for the amount of any final and confirmed . assessments. Attached hereto is a list indicating the' names of the assessed owners, all as required pursuant to Section 27288 . 1 of the Government Code of the State of California. DATED: , 1988. CITY CLERK CITY OF HUNTINGTON BEACH STATE OF CALIFORNIA Names of Property Owners 88-637475 Adler, Kenneth S. �Ae, �vK ACW CAL. Albert, Wilma M. Aldoroty, Robert Allen, Robert H TR Amark, Judy Armstrong, Colleeny1 G�4Fi� Ashby, Richard K. Bailey, W. R. Bank Union & Tr of LA Tr Bates, Loren S. Beer, Kenneth V. Bioxin, John A. Bird, Martin W. Blasgen, Michael W. Bollman, Charles H. Boom, Daryl C. Borghetti, Ronard P. Bouska, William J. Brindle, Ronald I. Brown, James M. Brown, Leslie Bruno, Joe Burlingham, Marion Busche', Gene A. Butters, Lois P.- Carmichael, George M.' Catron, Delbert Franklin Central Park #5 Chapman, Gerald Cobb, Marvin W. Cohn, Alvin R. Cook, Joan Newcomer Coombs, Rachelle C. Cracchiolo, Salvator W. Custer, Prentiss M. Dabney, Walter Nichols Davis, Michael A. Dahl, David D. Demaio, Arthur J. De Nubila, Virginia M. Deutsch, Warren Clifford Duncan, David P. Dunn, Robert J. Dunn, Roger Elliott, Willis M. Enebach, Hugo J. Eng, Vincent Chee Kei Engle,_ James M. Espitia, Albert S. Estrada, Ignaciao F. Faas, A.J. & Sons Faas, John A. 6j d%A*jI tZ- p W , 1 88=637475 Page 2 Fisher, John T. Fjaeran, Randi Folmar, Cecil J. Ford, Janet Fuller, Leland C. Grabe, Carl G. Gale, Steven Gatton, Philip H. Goddard, Mary Frances Goetsch, Elmer E. Gordon, Ruth L. Gowdy, Robert Gordon Tr Greer, Bruce L. Greer, Ruby M. Gustafson Brothers, Inc. Gustafson, John Guthrie, Laura A. Hanks, Heber T. Hargrove, Elizabeth M. Hassett, Gloria Bradeson Hathaway, J. I. Hay, William Hill, Gene N. Hoffman, Edward R. Howell, Peter S. Hubbs, Kenneth Huntington Beach Co. Huntington Pacific Corp. Huntington Signal Oil Co. Huntington Surfside Corp. Irvine, Tracy Ishibashi Akira Jacobson, Allan R. Jankowiak, Donald B. Kahle, Vance R. Keller, Melvin F. Killingsworth, Dagmar Kubelka, Barton A. Lambert, Barbara A. Landis, William Lang, H.A. Est Lang, Robert D. Liao, Daniel Levoy, Bertram J..Consvr Lindesy, Margaret LIndley, Robert B. LIngle, Harold A. Tr Loma Linda University 88=637475 Page 3 Macklinga, Pat Orr Main, William D. Mandic, Robert P. Jr. Marow, Milton H. Martinson, Don McKenzie, Charles P. Meyer, Richard W. Jr. Tr Mills, Stanfell F. Mitchell, James E. Mola Development Corp. Morton, Harold C. Muniz, Joe Niccole, Michael W. Niccole, Michael Wayne Nolff, Werner Oliver, Ted O'Neill, Peter T. Orlando, Raymond John Parks, Jann V. Pedersen, A.M. Perez, Miguel Vargas Tr Peterson, Helen Vick Pettitt, Margaret J. Plunkett, Glenn P. Powers, Mary E. Ouine, Mercedes V. Raboy, Nolan D. Renner, Wilvian J. Tr Ross, Lorna Tr RSTGS Investment Group S & C Oil Co., Inc. Sailer, Daniel F. Schuesler, John R. Scott, William J. Scouller, Emma F. Shafer, Dickson Tr Sherrill, Robert J. Smith, Gyneth P. Smith, Mary Ann Smith, Raymond P. Southern Calif. Edison Spelts, Louis C. Spelts, Louis Stedd, Gregory J. Stermann, Margaret J. Sunderland, Robert C. Swartz, Thelma G. Taylor, Michael Lee 1 Telford, James L. TEM Properties Page 4 88..6374T5 Terry, Bill D. Thomas, James Warren Thomas, John A. Thomas, Linda L. Thompson, Dale E. Tipton, Ferrol M. Title Insurance and Trust Townley, Nellie A. Tunstall, Charles G. Tr Tsai, James C.J. Tsang, Samuel M.O. Walker, Dorothy J. Wallbank, Erik Walter, Larry R. Watson, Gordon M. Weaver & Mola Weir Donald A. Weir Oil Co. Weller, Stevens Tr Wendland, Dale'A. Western Homex Corp. Wood, Dena Jeanne Zepeda Woodson, Hiro Woolpert, Duane V. Worthy, Pearl N. Wysocki, Louis Edward Young, Norma D. The foregoing instrument is a correct copy of the original on file in thi office. Attest- City Clerk and Ex•officio Clerk of tho City Council of the City of Huntington Beach, California. By - -- lime. .�%�i¢a6u)Deputy NOTICE OF DETERMINATION . Nov Q 88 l ounty Clef TO: Office.of Planning and Research FROM: (Public Agency L m pEPIJ 1400 Tenth Street, Room 121 City of Hunt ingt Sacramento, CA 95814 _ ?Qno Main strPPt- or County Clerk Huntington Beach, CA 92648 County of flran�e SUBJECT: Filing of Notice of Determination in compliance with Section 21108 o- 21152 of the Public Resources Code. Reservoir Hill Water Main Environmental Assessment No. 88 44 Project Title Kelly Main (714) 536-5271 '. Sate Clearingnouse Number Contact Person Telephone Number (If submitted to Clearinghouse) Water mins to be located in Edwards Street Between Ellis Ave. and Garfield Ave. , in Goldenwest Street between Ellis Ave. anc Clay Ave. , and in Garfield Ave. between Edwards St. and Main St. Project Location 13, 200 lineal feet of water main to be located in the Reservoir Hill Project Description area, This is to advise that the Lead -Agency or Responsible Agency) has approved the above described project and has made the :ollowing determinations regarding'the above •describes' project: 1. The project_ will, x will not, have a significant effect on the environment. 2. _ An Environmental Impact Report was prepared for this protect pursuant to the provisions of CEQA. x ..A Negative Dezlara:ion was j,rcpared for this, project pUrs:;ant :o the provisions of CEQA. The EIR or negative Declaration and record of project app.oval may be examined at: City of Hi,nti ngtnn Reach, Com_miini ty DPyP1�p mPnt _,__ _?Q00 Main Street, Huntington Beth. CA 92648 '(714) 536-5271 3. Mitigation measures x were, _were not, made a condition of the approval of the project. 4. A statement of Overriding ,Considerations was, x was not, adopted for this project. Date Received for Filing SignaturC Assis ant Plann r PUTY Revised :'anuary 1985 _ _ Nz a MO W- UNITED STATES OF AMERICA i AN\ STATE OF CALIFORNIA _ s - - G31�®0 SQ�aC�D G3C�C�30�4I�aC�D � - �� LIMITED OBLIGATION IMPROVEMENT BOND IM CITY OF HUNTINGTON BEACH VW- ASSESSMENT DISTRICT NO. 88-1 v ` (RESERVOIR HILL) " INTEREST RATE: MATURITY DATE: BOND DATE: CUSIP: - - JANUARY 17, 1989 .a Under and by virtue of the"Improvement Bond Act of 1915".Division 10 of the Streets and Highways Code of the State of California(the"Act"),the REFERENCE IS MADE TO THE FURTHER PROVISIONS OF THIS BOND SET FORTH ON THE REVERSE HEREOF WHICH SHALL FOR ALL = City of Huntington Beach.California(the"Agency")will,out of the redemption fund for the payment of the bonds issued upon the assessments made for PURPOSES HAVE THE SAME EFFECT AS THOUGH FULLY SET FORTH HEREIN. S3 the construction of certain public works of improvement m the Assessment DistncL being Assessment District No.MI(Reservoir Hill).more fully - - described in Resolution of Intention No.5926.adopted by the City Council of the Agency on the 19dn day of September.1969,pay to the registered owner This bond shall not be entitled to any benefit under the Act or the Proceedings or became valid Or Obligatory for any purpose.until the Certifies"of - �r stated above.or registered assigns.on the maturity data stated above.the principal sum stated above m lawful money of the United States of America. Authentication and Registration hereon endorsed shall he"been dated and signed by the fiscal agent of the - -- with interest trerecn from the interest paymerm oats neat the oats m whits ttris bard te autlertticaed end .unless this bad is _ -- - authenticated and registered as of an Interest pe,ment date. \\\\ \ \\\\ City of Huntington Beach.California,and authenticated and registered m or prior a the first payment se its. l ni o pri urr� \\\ IT H \F ;�u �e Dy the Treasurer of the i has been discharged,at the roe per annum stated above. ffi tie 1 a 0 rtyr � h\cenVC�n�' te ae \.yenx\ neon.all an the 17th day of January.1969. CERTIFICATE OF AUTHENTICATION AND REGISTRATION •; This Bona has been authenticated and registered pursuant to the Bond Indenture authoriz- CITY OF HUNTINGTON BEACH, CALIFORNIA ' Ing the issuance thereof. BANK OF AMERICA NATIONAL TRUST AND SAVINGS ASSOCIATION, � ���� o as Fiscal Agent I .. ....... I)If O�• c r•.tar I a �u \1LJ V L 0:�,ir;i[rt2CrKC( o.Qi pTtl�i .L� 1 m AUTHORIZED OFFICER %/ ;e-' Z' ( p�• U J \ i•" ,r a O_ TREASURER CITY CLERK W � DATED: /�II�CE\OUN`Y �c_ �It�t6. \\002 LIMITED OBLIGATION IMPROVEMENT BOND CITY OF HUNTINGTON BEACH ASSESSMENT DISTRICT NO. 88-1 (RESERVOIR HILL) This bond is one of several annual series of bonds of like date,tenor and effect,but differing in The bonds are issuable only as fully registered bonds in denominations of$5.000.00 or any integral amounts,interest rates and maturities,issued by the Agency under said law for the purpose of providing multiple thereof,except for one bond maturing in the first year of maturity which includes the amount by means for paying for the work and improvements described in said Resolution of Intention,and is which the total issue exceeds the maximum integral multiple of$5,000.00 contained therein. secured by the monies in the redemption fund and by the unpaid assessments made for the payment of said work,and,including principal and interest,is payable exclusively out of said fund. This bond is transferable by the registered owner hereof in person or by his attorney duly authorized in writing at the office of the fiscal agent of the Agency,subject to the terns and conditions provided in the The interest is payable semiannually,to wit:On the second day of March and September in each year Agency's system for registration for registered debt obligations,including the payment of certain charges. hereafter,to the registered owner hereof by check or draft mailed to such owner at his address as it if any,upon surrender and cancellation of this bond.Upon such transfer a new registered bond or bonds appears on the registration books of the Agency kept by the fiscal agent,or at such address as may have of any authorized denomination or denominations of the same maturity,for the same aggregate principal been filed with the fiscal agent of the Agency for that purpose,as of the fifteenth day of the month amount,will be issued to the transferee in exchange therefor. - immediately preceding said interest payment date;provided,that the first installment is for the interest to This bond,or a portion thereof it issued in a denomination greater Man$5,000.00,shall be subject to the second day of March,1990:and thereafter,the interest installments are for the semiannual interest. redemption and payment in advance of maturity in increments of$5,000.00 as provided in Section 8768 of the Act,on the second day of March or September in any year by giving the notice provided in said law to This bond will continue to bear interest after maturity at the rate above stated;provided,it is the registered owner hereof at his address as it appears on the registration books of the fiscal agent of presented at maturity and payment thereof is refused upon the sole ground that there are not sufficient the agency and by paying principal of and accrued interest on such redeemed amount,together with a monies in said redemption fund with which to pay same.1f it is not presented at maturity,interest thereon premium equal to three percent(3%)of the redeemed principal amount.If less than the entire bond is will run until maturity. redeemetl,the unredeemed portion shall be reissued to the registered owner thereof. LEGAL OPINION I hereby certify that the following is a lull and correct copy of a signed legal opinion of Brown&Diven,Attorneys at Law,on file in my office,which opinion is dated the date of the Bonds referred to therein. CITY CLERK Of CITY OF HUNTINGTON BEACH ASSESSMENT DISTRICT NO.88-1 (RESERVOIR HILL) 1915 ACT LIMITED OBLIGATION IMPROVEMENT BONDS BOND DATE:JANUARY 17,1989 We have examined the record of the proceedings of the CITY COUNCIL of the CITY OF HUNTINGTON BEACH,CALIFORNIA(the'•A ency),for the levy of special assessments and authorization and issuance of bonds upon unpaid assessments(the"Bonds")in what is known and designated as ASSESSMENT DISTRICT NO.88-1(RESERVOIR HILL)as set forth and described in a Resolution of Intention.being Resolution No. 5926,as approved and adopted by the City Council of said Agency. Said proceedings were had and taken pursuant to the provisions of the"Municipal Improvement Act of 1913",being Division 12 of the Streets and Highways Code of the State of California,with Bonds issued pursuant to Me provisions of the"Improvement Bond Act of 1915",being Division 10 of said Code.This examination covers said proceedings down to and including Me issuance and execution of said Bonds by the Treasurer.No examination has been made of the ownership and use of the property assessed. Said Bonds,in the total principal amount of$1,653,904.59,are dated the 17th day of January.1989,and are issued in denominations of$S.DOD.00,or any integral multiple thereof,except for one Bond maturing in the first year of maturity which includes the amount by which the total issue exceeds the maximum integral multiple of$5,000.00 contained therein.Said Bonds are issued in registered form as to both principal and interest and are payable to the registered owner thereof out of the redemption fund for the payment of said Bonds at the once of the designated fiscal agent,with the first interest installment payable on March 2,1990,and interest thereafter payable semiannually on September 2nd and March 2nd of each year with principal maturing on September 2nd of each subsequent year until paid. From such examination,we are of the opinion that said proceedings have been taken in accordance with the laws,court decisions and Constitution of the State of California,and in substantial compliance with the Provisions of the"Municipal Improvement Act of 1913",and that said Bonds,having been issued in duly authorized form and executed by the proper officials and delivered in the manner provided by law,are regularty aSaed Bonds,and that the payment of each of said Bonds is secured by a valid assessment lien upon certain lands as described in said assessment.In the event of default in the pa ment of any installment of principal or Interest,the land securing such installments and assessments shall be sold in the same manner in which real property is sold for the non-payment of general property taxes,and shall be subject to redemption in the some manner and to the same extent that real property may be redeemed. The Agency is not obligated in any way to advance available funds from the General Treasury to cure any deficiency which may occur in the redemption fund and is not obligated to become a purchaser at any tax sate• and the only advancement of funds shall be from the special reserve fund. There has been included in the bond issue a"special reserve fund",from which funds will be advanced to the redemption fund to assist in the payment of delinquent assessments,and said monies will also be used to assist in the discharge of assessments. As a cumulative remedy,if any assessment or installment thereof is not paid,the legislative body has ordered that the same be collected by an action brought in the Superior Court to foreclose the lien thereof.The court shall have the power to decree a lien against the lot or parcel covered by the assessment and shall order the premises to be sold on execution as in other cases of the sale of real property. The rights of the owners of the Bands and the enforceability thereof may be subject to bankruptcy,insolvency,reorganization and other similar laws affecting creditors'rights,or equitable principles relating to or limiting creditors'rights. The Bonds,or a portion thereof if issued in denominations greater than$5.000.00,shall be subject to redemption and payment in advance of maturity in increments of$5,000.00 as provided in Section 8768 of the Act, on the second day of March or September in any year by giving the notice provided in said taw to the registered owner thereof at his address as it appears on the ragtstraflon books of the Agency and by paying principal of and accrued interest on such redeemed amount,together with a premium equal to three percent(3%)of the redeemed principal amount.If less than an entire Bond is redeemed,the unredeemed portion shall be reissued to the registered owner thereof. In our opinion,the interest on said Bonds is excluded from gross Income for Federal income tax purposes and is not an item of tax preference for purposes of the Federal alternative minimum tax imposed upon individuals and corporations:it should be noted,however,that for the purpose of computing the alternative minimum tax imposed on corporations(as defined for Federal income tax purposes),such Interest is taken into account in determining adjusted net book income(adjusted current earnings for taxable years beginning after December 31,1989).This opinion presumes that the Agency complies with all requirements of the Internal Revenue Code of 1986 that must be satisfied subsequent to the issuance of the Bonds in order that interest thereon be,or continue to be,excluded from gross income for Federal income tax purposes.The Agency has covenanted to comply with each such requirement.Failure to comply with such requirements may cause the inclusion of interest on the Bonds in gross income for Federal income tax purposes to be retroactive to the date Of issuance of the Bonds. In our opinion the interest on the Bonds is exempt from personal income taxation by the State of California. Respectfully submitted, BROWN&DIVEN ASSIGNMENT For value'received hereby sells, assigns and transfers untie the within-mentioned Bond and hereby irrevocably constitutes and appoints attorney, to transfer the same on the books of the Paying Agent with full power of substitution in the premises. Dated: NOTE:The signature to this assignment must correspond with the name as written on the face of the within Bond in every particular,without afteration or enlargement or any change whatsoever. Signature Guaranteed: BOND INDENTURE This Bond Indenture (the "Indenture") dated as of December 19, 1988, entered into and approved by the City of Huntington Beach (the "Issuer") , a municipal corporation, to establish the terms and conditions pertaining to the issuance of bonds in a special assessment district known and designated as ASSESSMENT DISTRICT NO. 88-1 (RESERVOIR HILL) (the "Assessment District") . SECTION 1. Issuance, Designation and Amount. Pursuant to the provisions of the "Improvement Bond Act of 1915" (the "Act"), being Division 10 of the Streets and Highways Code of the State of California, the Issuer does hereby authorize the issuance of bonds to represent unpaid assessments within the Assessment District in principal amount of $1,653,904.59 and designated as the City of Huntington Beach, Assessment District No. 88-1 (Reservoir Hill) Limited Obligation Improvement Bonds (the "Bonds") . SECTION 2. Unpaid Assessments. The Issuer shall, immediately upon the completion of the 30-day cash collection period, determine the assessments which are unpaid and the aggregate amount thereof as authorized by Section 8621 of the Act. SECTION 3. Term of Bonds. Bonds to represent the unpaid assessments, and bear interest at a rate not to exceed the current legal maximum rate of 12% per annum,. will be issued in the manner provided in the Act the last installment of which Bonds shall mature not later than nineteen (19) years from the second day of September next succeeding twelve (12) months from their date. The provisions of Part 11.1 of said Act, providing an alternative procedure for the advance payment of assess- ments and the calling of Bonds shall apply. Pursuant thereto, whenever an owner of land subject to assessment, except the owner of land which has been ordered to judicial foreclosure pursuant to Section 8830 of the Act, elects to pay off an unpaid assessment pursuant to said Part 11.1, the Treasurer shall collect from such owner the total of the following sums: (a) The amount of any delinquent installments of principal and interest , together with penalties accrued to the date of prepayment. (b) The unpaid, nondelinquent principal of the assessment, including principal posted to the tax roll for the current fiscal year but not yet paid. (c) An allowance for redemption premium, calculated by multiplying the amount of the unmatured principal by 3%. Unmatured principal excludes principal due during the fiscal year of prepayment. (d) A reasonable fee, fixed by the Treasurer, for the cost of adminis- tering the prepayment and the advance retirement of Bonds. 1 (e) Interest accrued to the next call date of the Bonds. The next call date shall be the next bond interest payment date which is not less than 90 days after the date of prepayment. Credit shall be given, or a refund provided, for installments of interest posted to the current tax roll and actually paid. SECTION 4. Registered- Bonds. Said Bonds shall be issuable only as fully regis- tered Bonds in the denomination of $5,000, or any integral multiple thereof, except for one bond maturing in the first year of maturity, which shall include the amount by which the total issue exceeds the maximum integral multiple of $5,000 contained therein. SECTION 5. Date of Bonds. All of said Bonds shall be dated the 17th day of January, 1989, and interest shall accrue from that date. SECTION 6. Maturity and Denomination. The Bonds shall be issued in serial form with annual maturities on September 2nd of every year succeeding twelve (12) months after their date, until the whole is paid. The amount maturing each year shall be such as to result in approximately equal annual debt service during the term of the issue as reflected by the interest rate and/or rates and principal amounts maturing in the respec- tive years of maturity as shown on Exhibit "A" attached hereto and incorporated herein by this reference, and the Issuer shall, imme- diately upon completion of the cash collection period, prescribe the denominations of the Bonds, which shall be in convenient amounts, not necessarily equal, and shall further provide for their issuance and delivery. SECTION 7. Interest. Each Bond shall be of a single maturity and shall bear interest at the rate as set forth in Exhibit "A" attached hereto for said Bonds from the interest payment date next preceding the date on which it is authenticated and registered, unless said Bond is authenti- cated and registered between the 15th day of the month preceeding said interest payment date and an interest payment date, in which case it shall bear interest from said interest payment date, or unless said Bond is authenticated and registered prior to the first interest payment date, in which case it shall bear interest from its date, until payment of its principal sum has been discharged. SECTION 8. Place of Payment. The principal on the Bonds shall be payable in lawful money of the United States of America upon surrender of the Bond at the corporate trust office of Bank of America National Trust and Savings Association, the designated fiscal agent, registrar, transfer agent and paying agent of the Issuer ("Fiscal Agent") in San Francisco, California, or such other fiscal agent, registrar, transfer agent or paying agent as may be designated by subsequent Resolution of the Issuer. Interest on said Bonds shall be paid on March 2 and September 2 of each year, commencing March 2, 1990, by check or draft to the registered owner thereof at his address as it appears on the books of registra- tion, or at such address as may have been filed with the Fiscal Agent for that purpose, as of the 15th day immediately preceding said interest payment date. 2 SECTION 9. Redemption. Any Bond, or a portion thereof if issued in a denomination greater than $5,000, shall be subject to redemption and payment in advance of maturity in increments of $5,000 on the 2nd day of March or September in any year, by giving notice thereof to the registered owner thereof at his address as it appears on the books of registration and by paying principal of and accrued interest on such redeemed amount, together with a premium equal to three. percent (3%) of the redeemed principal amount. If less than the entire Bond is- redeemed, a new bond in the amount of the unredeemed portion shall . be delivered to the registered owner thereof. The Treasurer shall provide the Fiscal Agent with written directions to redeem the Bonds or any portion thereof at least ten (10) days prior to the date on which the Fiscal Agent shall be required to give notice of such redemption to the owner of any Bond to be redeemed. Notice of redemption shall be given by the Fiscal Agent in writing to the owner of the Bond by registered or certified mail or personal service. Service or mailing of the notice shall be made at least 30 and no more than 60 days before the date fixed for redemption. The Fiscal Agent shall select Bonds for redemption in such a way that the ratio of outstanding Bonds to issued Bonds shall be approximatley the same in each annual series insofar as possible. Within each annual series, Bonds shall be selected for retirement by lot. If notice of redemption is given, the Bond shall mature and become payable on the date fixed for redemption in the notice. The owner of the Bond may, prior to the date of redemption, with the consent of the Treasurer, surrender it and receive the principal and interest thereon to the date of payment together with the redemption premium. If the Bond has not been sooner surrendered on the date fixed for redemption, the Fisal Agent shall set aside to the credit of the owner of the Bond the amount of principal and accrued interest then due on the Bond,together with the redemption premium, and the Bond shall then be deemed to have matured and interest shall cease to accrue on the Bond. The amount so set aside shall, upon demand and upon the surrender and cancellation of the Bond, be paid to the owner of the Bond. SECTION 10. Transfer of Registered Bonds. Any fully registered Bond may, in accor- dance with its terms, be transferred upon the books of registration required to be kept pursuant to the provisions of Section 12 by the owner in whose name it is registered, or by his duly authorized attorney or legal representative, upon surrender of such fully regis- tered Bond for registration of such transfer, accompanied by delivery of a written instrument of transfer in a form approved by the Fiscal Agent and by the owner of said Bond, duly executed. The Fiscal Agent shall require the payment by the Bondholder requesting such transfer of any tax or other governmental charge required to be paid with respect to such transfer and such charges as provided for in the system of registration for registered debt obligations. 3 No transfer of fully registered Bonds shall be required to be made between the fifteenth (15th) day next preceding each interest payment date, nor during the fifteen (15) days preceding the selection of any Bonds for redemption prior to the maturity thereof, nor with respect to any Bond which has been selected for redemption prior to the maturity thereof. SECTION 11. Exchange of Registered Bonds. Fully registered Bonds may be exchanged at the office of the Fiscal Agent for alike aggregate principal amount of Bonds of the .same series, interest rate and maturity, subject to the terms and conditions provided in the system of registration for the Bonds, including the payment of certain charges, if any, upon surrender and- cancellation of such Bond. Upon such transfer and exchange, a new registered Bond or Bonds of any authorized denomination or denomina- tions of the same maturity for the same aggregate principal amount will be issued to the transferee in exchange therefor. SECTION 12. Books of Registration. There shall be kept by the Fiscal Agent suffi- cient books for the registration and transfer of the Bonds and, upon presentation 'for such purpose, the Fiscal Agent shall, under such reasonable regulations as it may prescribe, register or transfer or cause to be registered or transferred, on said register, Bonds as hereinbefore provided. SECTION 13. • Execution of Bonds. The Bonds shall be executed in facsimile by *the Treasurer and by the City Clerk, and the corporate seal shall be imprinted in facsimile on the Bonds. The Bonds shall then be delivered to the Fiscal, Agent for authentication and registration. In case an officer who shall have signed or attested to any of the Bonds by facsimile or otherwise shall cease to be such officer before the authen- tication, delivery and issuance of the Bonds, such Bonds nevertheless may be authenticated, delivered and issued, and upon such authentica- tion, delivery and issue, shall be as binding as though those who signed and attested the same had remained in office. SECTION 14. Authentication. Only such of the Bonds as shall bear thereon a certifi- cate of authentication substantially in the form below, manually executed by the Fiscal Agent, shall be valid or obligatory for any purpose or entitled to the benefits of this Indenture, and such certifi- cate of the transfer agent and registrar shall be conclusive evidence that the Bonds so authenticated have been duly executed, authenticated and delivered hereunder, and are entitled to the benefits of this Indenture. FORM OF CERTIFICATE OF AUTHENTICATION AND REGISTRATION This bond has been authenticated and registered pursuant to the Bond Indenture authorizing the issuance thereof. BANK OF AMERICA NATIONAL TRUST AND SAVINGS ASSOCIATION as Fiscal Agent By: Authorized Officer Dated: 4 SECTION 15. Ownership of Bonds. The person in whose name any Bond shall be regis- tered shall be deemed and regarded as the absolute owner thereof for all purposes, and payment of or on account of the principal and redemp- tion premium, if any, of any such Bond, and the interest on any such Bond, shall be made only to or upon the order of the registered owner thereof or his legal representative. All such payments shall be valid and effectual to satisfy and discharge the liability upon such Bond, including the redemption premium, if any, and interest thereon, to the extent of the sum or sums so paid. SECTION 16. Mutilated, Destroyed, Stolen or Lost Bonds. In case any Bond secured hereby shall become mutilated or be destroyed, stolen or lost, the Issuer shall cause to be executed and authenticated a new Bond of like date and tenor in exchange and substitution for and upon the cancella- tion of such mutilated Bond or in lieu of and in substitution for such Bond mutilated, destroyed, stolen or lost, upon the owner's paying the reasonable expenses and charges in connection therewith, and, in the case of a Bond destroyed, stolen or lost, his filing with the Fiscal Agent and Issuer of evidence satisfactory to them that such Bond was destroyed, stolen or lost, and of his ownership thereof, and furnishing the Fiscal Agent and Issuer with indemnity satisfactory to them. SECTION 17. Cancellation of Bonds. All Bonds paid or redeemed, either at or before maturity, shall be cancelled upon the payment or redemption of such Bonds, and shall be delivered to the Fiscal Agent when such payment or redemption is made. All Bonds cancelled under any of the provisions of this Indenture shall be destroyed as provided by law by the Fiscal Agent, which shall execute a certificate in duplicate describing the Bonds so'destroyed, and Fiscal Agent shall retain one executed certifi- cate in its permanent files for the issue and shall forward the dupli- cate copy to the Issuer for its permanent files. SECTION 18. Creation of Funds. The Fiscal Agent is hereby authorized and directed to establish the following Funds for purposes of making payment for the costs and expenses for the works of improvement and payment of principal and interest on the Bonds. The Funds to be created are desig- nated as follows: IMPROVEMENT FUND: The proceeds from the sale of the Bonds, after deposit of required amounts in the Reserve'.Fund and Redemption Fund as specified by the Issuer in the instructions to the Fiscal Agent delivered prior to the Bond closing, shall be placed by the Fiscal Agent in the Fund hereby created, pursuant to Sections 10602 and 10424 of the California Streets and Highways Code, as amended, which shall be called the "Improvement Fund", and the monies in said Fund shall be used only for Project Costs as that term is defined hereinafter. "Project Costs" shall mean the costs of acquisition or construction of the works of improvement as authorized in the assessment proceedings and all incidental costs related thereto, all as more particular described in the Final Engineer's Report for Assessment District No. 88-1 (Reservoir Hill) , City of Huntington Beach, on file in the office of the City Clerk. 5 Upon receipt of a duly executed "Payment Request Form" in substantially the form attached hereto as Exhibit "B", the Fiscal Agent shall pay the Project Costs from amounts in the Improvement Fund directly to the contractor or such other person, corporation or entity entitled to payment hereunder unless. the Issuer requests payment to be made to the contractor or such other party jointly, in which case said Project Costs shall be paid jointly. The Fiscal Agent shall be responsible for the safekeeping and investment of the monies held in the Improvement Fund and the disposition thereof in accordance with this Section. The Fiscal Agent may rely on an executed Payment Request Form as complete authorization for said payments. Any surplus in the Improvement Fund after completion of the improve- ments shall remain in the Improvement Fund for a period of not less than two (2) nor more than three (3) years from the receipt of Bond proceeds and thereafter shall be utilized or distributed as determined by the Issuer in accordance with Streets and Highways Code Section 10427.1. REDEMPTION FUND: The Fiscal Agent is hereby authorized and directed to keep a Redemption Fund designated by the name of the proceedings, into which shall be placed (i) accrued interest, if any, on the Bonds, (ii) an amount representing interest on the Bonds to September 1, 1989, (iii) all sums received for the collection of the assessments and the interest thereon, together with all penalties, if applicable, and (iv) any surplus in the Improvement Fund authorized by the Issuer pursuant to Streets and Highways Code Section 10427.1 to be credited against unpaid assessments. The Issuer shall transfer or cause to be transferred all sums received for the collection of the assessments, interest and penalties thereon, and all sums received for the prepayment of assessments to the Fiscal Agent within fifteen (15) business days of the receipt thereof by the Issuer. Principal of and interest on said Bonds shall be paid by the Fiscal Agent to the registered owners out of the Redemption Fund to the extent funds on deposit in said Redemption Fund are available therefor created pursuant to Section 8671 of the Act. In all respects not recited herein, said Bonds shall be governed by the provisions of the Act. Under no circumstances shall be the Bonds or interest thereon be paid out of any other fund except as provided by law. RESERVE FUND: Pursuant to Part 16 of the Act the Fiscal Agent shall create a special reserve fund for the Bonds to be designated by the name of the Assessment District and specified as the "Reserve Fund". An amount equal to six percent (6%) of the original Bond proceeds shall be deposited in the Reserve Fund out of said Bond proceeds. Monies in the Reserve Fund shall be applied by the Fiscal Agent as follows: 6 A. Whenever there are insufficient funds in the Redemption Fund to pay the next maturing installment of principal of or interest on the Bonds, the Fiscal Agent shall transfer the amount necessary to make up such deficiency from the Reserve Fund to the Redemption Fund. The amounts so advanced from the Reserve Fund shall be reimbursed by the Issuer from the proceeds of the redemption or sale of the parcels for which payment of delinquent installments of assessments and interest thereon have been made from the Reserve Fund. Such proceeds shall be transferred by the Issuer to the Fiscal Agent within fifteen (15) business days of receipt thereof by the Issuer and the Fiscal Agent shall immediately deposit such proceeds in the Reserve Fund. B. Interest earned on the permitted investment of monies on deposit in the Reserve Fund shall remain in the Reserve Fund so that the amount therein may accumulate to and subsequently be maintained at the "Reserve Requirement". The Reserve Requirement shall be an amount equal to the lesser of (i) the Maximum Annual Debt Service on the Bonds, (11) 125% of the average annual debt service on the Bonds, or (111) 6% of the original principal amount of the Bonds. Annual Debt Service on the Bonds for each year ending September 2nd shall equal the sum of (a) the interest falling due on the outstand- ing Bonds in such 12 month period, assuming that the outstanding Bonds are retired as scheduled, and (b) the principal amount of outstanding Bonds falling due during such 12 month period. "Average Annual Debt Service" shall mean the average Annual Debt Service during the term of the Bonds. "Maximum Annual Debt Service" shall mean, as computed from time to time, the largest Annual Debt Service during the period from the date of such computa- tion through the final maturity of any outstanding Bonds. C. on July 15 of each fiscal year the amount on deposit in the Reserve Fund in excess of the Reserve Requirement shall be transferred by the Fiscal Agent from the Reserve Fund to the Redemption Fund and shall be credited to the unpaid assessment installments payable during each year during which any part of the Bonds remain outstand- ing. The Auditor's record, prepared pursuant to Section 8682 of the Streets and Highways Code, shall reflect the credits against each of the unpaid assessments in the manner provided in Streets and Highways Code Section 10427.1 in amounts equal to each parcel's proportionate share of such transfer. D. All sums remaining in the Reserve Fund in the year in which the last installments of the assessments become due and payable shall be credited toward the assessments as follows: Prior to June 30th of the Fiscal Year next preceding the Fiscal Year in which the last unpaid assessment installment becomes due and payable, the Fiscal Agent shall determine the amount remaining in the Reserve Fund, if any, after all sums advanced and interest thereon have been reimbursed, and shall notify the Issuer of such determination. The Issuer shall order any remaining amount to be distributed and/or credited in the manner set forth in Streets and Highways Code Section 10427.1, provided only that where all or any 7 part of such assessments remain unpaid and are payable install- ments, the amount apportioned to each parcel shall be credited against the last unpaid assessment installment, then such excess shall be credited against the next to last unpaid assessment installment. Whenever the balance in the Reserve Fund is sufficient to retire all remaining outstanding Bonds in the issue, whether by advance retirement or otherwise, the Issuer shall cease collection of the principal and interest on the assessments shall be discontinued and the Reserve Fund shall be liquidated in retirement of the Bonds. In the event that the balance in the fund at the time of liquida- tion exceeds the amount required to retire all outstanding Bonds in the issue, the excess shall be returned to the Issuer who shall apportion to each parcel upon which the individual assessment remained unpaid at the time the balance in the Reserve Fund was sufficient to retire all outstanding Bonds in the issue. The payments shall be made in cash to the respective owners of the parcels except that, if the excess is not greater than one thousand dollars ($1,000) , the excess may be transferred to the General Fund of the Issuer. E. In the event an unpaid assessment is. paid in cash in advance of the final Bond maturity date, the Issuer is required to credit such prepaid assessment with a proportionate share of the Reserve Fund, thus reducing the total amount of the Reserve Fund. The amount to be so credited is six percent (6%) of the original amount of the assessment being prepaid (i.e. , the original pro-rata amount deposited in the Reserve Fund) , less any amount previously trans- ferred from the Reserve Fund to the Redemption Fund as a result of the delinquency in the payment of assessment installments for the parcel for which the assessment is being prepaid. The Issuer shall direct the Fiscal Agent in writing to transfer the amount represent- ing such credit from the Reserve Fund to the Redemption Fund. SECTION 19. Rebate Fund. The Fiscal Agent shall maintain the Rebate Fund separate from any other fund established and maintained hereunder. The Fiscal Agent shall transfer into the Rebate Fund all amounts required by the Issuer to . be transferred in accordance with the provisions of the Arbitrage Rebate Provisions attached hereto as Exhibit "C". Subject to the provisions of said Arbitrage Rebate Provisions, amounts on deposit in the Rebate Fund shall only be applied to payments made to the United States in accordance with written instructions of the Issuer. Notwith- standing any other provisions of this Indenture, all earnings on amounts on deposit in the Rebate Fund shall remain therein until paid to the Federal government. The Fiscal Agent shall have no responsibi- lity under this Section or the Arbitrage Rebate Provisions other than to transfer money into the Rebate Fund and to pay such amounts to the Federal government, all at the Issuer's direction. SECTION 20. Investments. Obligations purchased as investments of monies in any of the funds and accounts in which investments are authorized shall be deemed at all times to be part of such funds and accounts. Except as 8 provided in Section 18 hereof with respect to the Reserve Fund and Section 19 hereof with respect to the Rebate Fund, all investment earnings on monies held under this Indenture shall, prior to the earlier of (i) the substantial completion of the works of improvement, which shall be established by receipt by Fiscal Agent of a written notice signed by the Treasurer of the Issuer stating that the autho- rized improvements have been completed, (ii) February 15, 1992, or (iii) the date on which an amount equal to the Bond proceeds allocable to the works of improvement and authorized incidental expense have been expended ("Completion Date"), be deposited into the Improvement Fund. After the Completion Date, all such investment earnings shall be deposited in the Redemption Fund. Subject to the restrictions set forth herein, monies in said funds and accounts may from time to time be invested by the Fiscal Agent at the written direction of the District, or if no such written direction is given, in Authorized Investments (as defined hereinafter) described in (8) of the definition of such terms, provided that: (a) Monies in the Improvement Fund shall be invested in obligations which will by their terms mature as close as practicable to the date the Issuer estimates the monies represented by the particular investment will be needed for withdrawal from such fund; (b) Monies in the Redemption Fund shall be invested only in obliga- tions which will by their terms mature on such dates so as to ensure the payment of principal of and interest on the Bonds as the same become due; and (c) Half of the monies in the Reserve Fund may be invested in obliga- tions which shall mature not more than five (5) years from the date of purchase by the Fiscal Agent and the balance may be invested in obligations which shall mature not more than ten years from the date of purchase by the Fiscal Agent, provided that no such obligation shall mature later than the final maturity of the Bonds. The Fiscal Agent shall sell at the beat price obtainable or present for redemption any obligations so purchased whenever it may be necessary to do so in order to provide monies to meet any payment or transfer for such funds and accounts or from such funds and accounts. For the purpose of determining at any given time the balance. in any such funds or accounts, any such investments constituting a part of such funds and accounts shall be valued at the lesser of their market value or cost. Notwithstanding anything herein to the contrary, the Fiscal Agent shall not be responsible for any loss from any investments pursuant to this Indenture. "Authorized Investments" means any of the following to the extent such securities are eligible for the legal investment of funds of the District: (1) United States Treasury notes, bonds, bills or certificates of indebtedness, or those for which the faith and credit of the United States is pledged for the payment of principal and interest; 9 (2) Time certificates of deposit or negotiable certificates of deposit issued by a state or nationally chartered bank or trust company, including the Fiscal Agent, or a state or federal savings and loan association; provided, that such certificates of deposit shall be ( i ) continuously and fully insured by the Federal Deposit Insurance Corporation or the Federal Savings and Loan Insurance Corporation, or (ii) issued by any bank or trust company organized under the laws of any state of the United States of America or any national banking association (including the Fiscal Agent) having a combined capital and .surplus of at least one hundred million dollars ($100,000,000) , and such certificates shall have maturi- ties of six (6) months or less, or (iii) continuously and fully secured by such securities as are described in clause (1) above, which securities shall have a market value (as determined on a marked-to-market basis calculated at least weekly, and exclusive of accrued interest) of not less than the principal amount of such certificates of deposit; (3) Bills of exchange or time drafts drawn on and accepted by a commer- cial bank (including the Fiscal Agent) , otherwise known as bankers' acceptances, which are eligible for purchase by members of the Federal Reserve System; provided, that purchases of eligible bankers' acceptances may not exceed two hundred seventy (270) days' maturity; (4) Commercial paper of "prime" quality of the highest ranking or of the highest letter and numerical rating as provided by either Moody's or Standard& Poor'B, which commercial paper is limited to issuing corporations that are organized and operating within the United States of America and that have total assets in excess of five hundred million dollars ($500,000,000) and that have an "A" or higher rating for the issuer's debentures, other than commer- cial paper, as provided by either Moody's or Standard & Poor's; provided, that purchases of eligible commercial paper may not exceed one hundred eighty (180) days' maturity nor represent more than ten percent (10%) of the outstanding commercial paper of an issuing corporation; (5)_ Any repurchase agreement with any bank or trust company organized under the laws of any state of the United States of America (including the Fiscal Agent) or any national banking association or government bond dealer reporting to, trading with and recog- nized as a primary dealer by, the Federal Reserve Bank of New York, which agreement is secured by any one or more of the securities described in clause (1) above; provided, that the under- lying securities are (i) required by the repurchase agreement to be held by any such bank, trust company or primary dealer having a combined capital and surplus of at least one hundred million dollars ($100,000,000) and being independent of the issuer of such repurchase agreement, and (ii) maintained at a market value (as determined on a marked-to-market basis calculated at least weekly) of not less than the amount so invested; 10 (6) Bonds, notes, warrants or other evidence of indebtedness of the State of California or of any political subdivision or public agency thereof which are rated in one of the two highest short- term or long-term rating categories by either Moody's or Standard & Poor's; and (7) Any other investment directed by the Issuer in which the Bond proceeds may be legally invested as permitted in the determination of the Issuer by Government Code Sections 53601 and 53635. (8) Shares of a diversified open-end management investment company (as defined in the Investment Company Act of 1940) or shares in a regulated investment company (as defined in Section 851(a) of the Code) that is (a) a money market fund -that has been rated in the highest rating category by Moody's Investors Service and "AAAm" or "AAAm-G" , by Standard & Poor's Corporation or (b) money market accounts of the Fiscal Agent or any state or federal bank that is rated at least "P-1" or "Aaa" by Moody's Investors Service and at least "A-1" or "AAA" by Standard & Poor's Corporation or whose one bank holding company parent is rated at least "A-1" or "AAA" by Standard & Poor's and at least "P-1" or "Aaa" by Moody's Investors Service. SECTION 21. No Issuer Liability. It is hereby further determined and declared that the Issuer. will not obligate itself to advance any available funds from . its Treasury to cure any deficiency or delinquency which may occur in the Redemption Fund by failure of property owners to pay annual special assessments. This determination shall be clearly set forth and stated in the title of the Bonds to be issued pursuant to these proceedings as authorized and required by Section 8769 of the Act. SECTION 22. Covenant to Foreclose. It is hereby further determined and declared that the Issuer will not obligate itself to advance any available funds from its Treasurys to cure any deficiency or delinquency which may occur in the Bond Redemption Fund by failure of property owners to pay annual special assessments. This determination shall be clearly set forth and stated in the title of the Bonds to be issued pursuant to these proceedings as authorized and required by Section 8769 of the Streets and Highways Code of the State of California. SECTION 23. Covenant to Maintain Tax-Exempt Status. The Issuer covenants that it will not make any use of the proceeds of the Bonds issued hereunder which would cause the Bonds. to become "arbitrage bonds" subject to Federal income taxation pursuant to the provisions of Section 148(a) of the Code, or to become "Federally-guaranteed obligations" pursuant to the provisions of Section 149(b) of the Code, or to become "private activity bonds" pursuant to the provisions of Section 141(aj of the Code. To that end, the Issuer will comply with all applicable require- ments of the Code and all regulations of the United States Department of Treasury issued thereunder to the extent such requirements are, at the time, applicable and in effect. Additionally, the Issuer agrees to implement and follow each and every recommendation provided by Bond Counsel and deemed to be necessary to be undertaken by the Issuer to ensure compliance with all applicable provisions of the Code in order to preserve the exclusion from gross income of interest on the Bonds from Federal income taxation. 11 SECTION 24. Covenant Regarding Arbitrage. The Issuer shall not take or permit nor suffer to be taken any action with respect to the gross proceeds of the Bonds as such term is defined under the Code which, if such action had been reasonably expected to have been taken, or had been deliberately and intentionally taken, on the date of issuance of the Bonds, would have caused the Bonds to be "arbitrage bonds" within the meaning of Section 148 of the Code and the regulations promulgated thereunder. SECTION 25. Order to Print and Authenticate Bonds. The. Treasurer is hereby instructed to cause Bonds, as set forth above, to be printed, and to proceed to cause said Bonds to be authenticated and delivered to an authorized representative of the purchaser, upon payment of the purchase price as set forth in the accepted proposal for the sale of Bonds. SECTION 26. Arbitrage Certificate. On the basis of the facts, estimates and circum- stances now in existence and in existence on the date of issue of the Bonds, as determined by the Treasurer, said Treasurer is hereby autho- rized to certify that it is not expected that the proceeds of the issue will be used in a manner that would cause such obligations to be arbitrage Bonds. Such certification shall be delivered to the purchaser together with the Bonds. SECTION 27. Fiscal Agent. The Issuer hereby appoints BANK OF AMERICA NATIONAL TRUST AND SAVINGS ASSOCIATION as Fiscal Agent for the Bonds. The Fiscal Agent is hereby authorized to and shall mail interest payments to the Bondowners, select Bonds for redemption, give notice. of redemp- tion of Bonds, maintain the Bond register and maintain and administer the Redemption Fund, the Reserve Fund, the Improvement Fund and the Rebate Fund. The Fiscal Agent is hereby authorized to pay the principal of and premium, if any, on the Bonds when the same are duly presented to it for payment at maturity or on call and redemption, to provide for the registration of transfer and exchange of Bonds presented to it for such purposes, to provide for the cancellation of Bonds, all as provided in this Indenture, and to provide for the authen- tication of Bonds, and shall perform all other duties assigned to or imposed on it as provided in this Indenture. The Fiscal Agent shall keep accurate records of all funds administered by it and all Bonds paid and discharged by it. The Fiscal Agent initially appointed, and any successor thereto, may be removed by the Issuer and a successor or successors may be appointed. So long as any Bonds are outstanding and unpaid the Fiscal Agent and any successor or successors thereto desig- nated by the Issuer shall continue to be Fiscal Agent of the Issuer for all of said purposes until the designation of a successor or successors as Fiscal Agent. The Issuer shall compensate the Fiscal Agent for the performance of its services hereunder pursuant to the Fiscal Agent Agreement. A Fiscal Agent appointed hereunder may resign at any time upon 90 days, written notice and after appointment of a successor. Upon merger, consolidation or reorganization of a Fiscal Agent, the Issuer will appoint a new Fiscal Agent, which may be the corporation resulting from such reorganization. 12 SECTION 28. Liability of Fiscal Agent. The recitals of fact and all promises, covenants and agreements contained herein and in the Bonds shall be taken as statements, promises, covenants and agreements of the Issuer, and the Fiscal Agent assumes no responsibility for the correctness of the same and makes no representations as to the validity or sufficiency of this Indenture or of the Bonds, and shall incur no responsibility in respect thereof other than in connection with its duties or obligations herein, or in the Bonds or in the certificate of authentication assigned to or imposed upon the Fiscal Agent. The Fiscal Agent shall be under no responsibility or duty with respect to the issuance of the Bonds for value. The Fiscal Agent shall not be liable in connection with the performance of its duties hereunder, except for its own negli- gence or willful misconduct. The Fiscal Agent shall be protected in acting on any notice, resolution, request, consent, certificate or ' other document believed by it to be genuine and to have been signed or presented by the.proper party. The Issuer further covenants and agrees to indemnify and save the Fiscal Agent harmless against any lose, expense and liabilities which it may incur arising out of or in the exercise and performance of its powers and duties hereunder, including the costs and expenses of defend- ing against any claim or liability, but excluding liabilities which are due to the Fiscal Agent's negligence of willful misconduct. The obliga- tion of the Issuer under this Section shall survive resignation or removal of the Fiscal Agent under this Indenture and payment of the Bonds and discharge of this Indenture. IN WITNESS WHEREOF, the Issuer has executed this Bond Indenture effective the date first written hereinabove. CITY MANAGER CITY OF HUNTINGTON BEACH STATE OF CALIFORNIA 13 EXHIBIT "A" MATURITY SCHEDULE YEAR PRINCIPAL INTEREST RATE 1990 3,904.59 6.50% 1991 40,000.00 6.70% 1992 45,000.00 6.90% 1993 50,000.00 7.00% 1994 50,000.00 7.20% 1995 55,000.00 7.40% 1996 60,000.00 7.50% 1997 65,000.00 7.60% 1998 70,000.00 7.70% 1999 75,000.00 7.80% 2000 80,000.00 7.90% 2001 85,000.00 7.90% 2002 90,000.00 8.00% 2003 100,000.00 8.00% 2004 105,000.00 8.00% 2005 115,000.00 8.10% 2006 125,000.00 8.10% 2007 135,000.00 8.10% 2008 145,000.00 8.10% 2009 160,000.00 8.10% 14 EXHIBIT "B" PAYMENT REQUEST FORM (Attach duplicate original of Payee's statement(s) or invoice(s) ) ( ) PROGRESS PAYMENT ( ) FULL/FINAL PAYMENT The Fiscal Agent is hereby requested to pay from the City of Huntington Beach, Assessment District No. 88-1 (Reservoir Hill) Improvement Fund established by the Bond Indenture dated December 19, 1988, to the person, corporation or other entity designated below as Payee, the sum set forth below such designation, in payment of the .Project .Costs described below. The amount shown below is due and payable under a purchase order, contract or other authorization with respect to the Project Costs described below and has not formed the basis of any prior request for payment. Payee: Address: Amount: $ Description of Project Costs or portion thereof accepted by the Treasurer on behalf of Assessment District No. 88-1 (Reservoir Hill) , and authorized to be paid to the Payee: Executed by Authorized Representative of the City of Huntington Beach on behalf of Assessment District No. 88-1 (Reservoir Hill) Signature: Name: Title: Dated: Payment Request No. 15 EXHIBIT "C" ARBITRAGE. REBATE INSTRUCTIONS DEFINITIONS For purposes -of these instructions, the following terms shall have the meanings set forth below: Bond Year. The term "Bond Year" means the 12 month period commencing on the Delivery Date of the Bonds and each 12 month period thereafter. Code. The term "Code" means the Internal Revenue Code of 1986, as amended. Delivery Date. The term "Delivery Date" means the date the Bonds are delivered to the initial purchaser. Excess Investment Earnings. The term "Excess Investment Earnings" means an amount equal to the sum of: (1) The excess Of (a) The aggregate amount earned from the date of delivery of the Bonds on all Non-purpose Obligations in which Gross Proceeds of the Bonds are invested (other than amounts attributable to an excess described in this paragraph (1) ) , over :(b) The amount that would have been earned if the Yield on such Non-purpose Obligations (other than amounts attributable to an excess described in this paragraph (1) ) had been equal to the Yield on the Bonds, plus (2) Any income attributable to the excess described in paragraph (1) . Gross Proceeds. The term "Gross Proceeds" means the sum of the following amounts: (1) original proceeds, i.e. , the net amount after payment of all expenses of issuance of the Bonds received by the Issuer as a result of the sale of the Bonds, excluding original proceeds of the Bonds which become transferred proceeds (determined in accordance with applicable Regulations) of obligations issued to refund in whole or in part the Bonds; (2) Investment proceeds, i.e. , amounts received at any time by the Issuer, such as interest and dividends, resulting from the investment of any original proceeds (as referenced in (2) above) or investment proceeds in Non-purpose Obligations, increased by any profits and decreased (if necessary, below zero) by any losses on such investments, excluding investment proceeds which become transferred proceeds (determined in accordance with applicable Regulations) of obligations issued to refund in whole or in part the Bonds; 16 (3) Sinking fund proceeds, i.e. , amounts, other than original proceeds, investment proceeds or transferred proceeds (as referenced in (1) above) of the Bonds, which are held in the Redemption Fund and any other fund to the extent that the Issuer reasonably expects to use such other funds to pay principal or interest on the Bonds; (4) Amounts in the Reserve Fund and in any other fund established as a reasonably required reserve or replacement fund; (5) . Amounts, other than -as specified...in this definition, used to pay principal and interest on the Bonds; and, (6) Amounts received as a result of investing amounts described in this definition. Investment Property. The term "Investment Property" means any security (as defined in Section 165(g) (2) (A) or (B) of the Code) , obligation, annuity or investment-type property within the meaning of Section 148(b) (2) of the Code in which Gross Proceeds are invested, but, excluding, however, obligations the interest of which is exempt from income tax under Section 103 of the Code. Issue Date. . The term "I-ssue ..Date" .means the date . upon which the Fiscal Agent receives the proceeds from the sale of the Bonds and delivers the Bonds to the under- writer purchasing the Bonds. Issuer. The term "Issuer" means the City -of Huntington Beach, .California. Non-purpose Obligation. The term "Non-purpose Obligation" means any Investment Property which is acquired with the Gross Proceeds of the Bonds and is not acquired in order to carry out the governmental purpose of the Bonds. Purchase Price. The term "Purchase Price", for the purpose of computation of the Yield of the Bonds, has the same meaning as the term "Issue Price" in Sections 1273(b) and 1274 of the Code, and, in general, means the initial offering price to the public (not including bond houses and brokers, or similar persons or organiza- tions acting in the capacity of underwriters or wholesalers) at which price a substantial amount of the Bonds are sold. The term "Purchase Price", for the purpose of computation of Yield of Non-purpose Obligations means the fair market value of the Non-purpose Obligation on the date of use of Gross Proceeds of the Bonds for acquisition thereof, or if later, on the date that Investment Property constituting a Non-purpose Obligation becomes a Non-purpose Obligation of the Bonds. Regulations. The term "Regulations" means temporary and permanent Regulations promulgated under Section 148 of the Code. Yield. The term "Yield" means that yield which, when used in computing the present worth of all payments of principal and interest (or other payments in the case of Non-purpose Obligations which require payments in a form not characterized as princi- pal and interest) on a Non-purpose Obligation or on the Bonds produces an amount equal to the Purchase Price of such Non-purpose Obligation or the Bonds, all computed as prescribed in applicable Regulations. 17 REBATE PROVISIONS Transfer of Investment Earnings. Annually, on the last day of each Bond Year, or on the preceding business day in the event that such last day is not a business day, the Issuer shall transfer or cause the Fiscal Agent to transfer from the various funds created pursuant to this Indenture to the Rebate Fund, for purposes of ulti- mate rebate to the United States, an amount equal to Excess Investment Earnings. Calculation of Excess Investment Earnings. Prior to the last day of the first Bond Year, the •Issuer shall calculate the Excess Investment Earnings. Thereafter, prior to the last day of each Bond .Year and on the date of retirement of the Bonds, the Issuer shall calculate the amount of Excess Investment Earnings. This calculation shall be made or caused to be made by the Issuer in accordance with the following rules: (1) Except as provided in paragraph (2) below, in determining the amount described in paragraph (1) (a) of the definition of Excess Investment Earnings, the aggre- gate amount earned on Non-Purpose Obligations shall include (i) all income realized under Federal income tax accounting principles (whether or not the person earning such income -is subject to Federal income tax) with respect to such Non-purpose Obligations and with respect to the reinvestment of investment receipts from such Non-purpose Obligations (without regard to the transaction costs incurred in acquiring, carrying, selling or redeeming such Non-purpose Obligations) , including, but not limited to, gain or lose realized on the dispo- sition of such Non-purpose Obligations (without regard to -when such gains are taken into account under Section 453 of the Code relating to taxable year .of exclusion -of. gross income), and income under Section 1272 of the Code (relating to original issue discount) and (ii) any unrealized gain or lose as of the date of retirement of the Bonds in the event that any Non-purpose Obligation is retained after such date. (2) Investment Property shall be treated as acquired for its fair market value at the time it becomes a Non-purpose Obligation, so that gain or lose on the dispo- sition of such Investment Property shall be computed with reference to such fair market value as its adjusted basis. (3) In determining the amount described in paragraph (1) (b) of the definition of Excess Investment Earnings, the Yield on the Bonds shall be determined based on the actual Yield of the Bonds during the period between the date of issuance of the Bonds and the date the computation is made (with adjustments for discount) . (4) In determining the amount described in paragraph (ii) of the definition of Excess Investment Earnings, all income attributable to the excess described in paragraph (1) of said definition must be taken into account, whether or not that income exceeds the Yield on the Bonds, and no amount may be treated as "negative arbitrage". (5) In determining the amount described in the definition of Excess Investment Earn- ings, there shall be excluded any amount earned on any fund or account which is used primarily to achieve a proper matching of revenues and debt service within each Bond Year and which is depleted at least once a year, except for reason- ably carryover amount not in excess of the greater of one year's earnings on such fund or account or 1/12 of annual debt service, as well as amounts earned on said earnings if the gross earnings on all such funds and accounts for the Bond Year is less than $100,000.00. 18 Payment to United States. The Issuer shall provide the Fiscal Agent with written instructions directing the Fiscal Agent to pay from the Rebate Fund an amount equal to Excess Investment Earnings to the United States in installments with the first payment to be made not later than thirty (30) days after the end of the fifth Bond Year, and with subsequent payments to be made not later than five (5) years after the preceding payment was due. The Issuer shall assure that each such installment is in an amount equal to at least ninety percent (90%) of the Excess Investment Earnings with respect to the Bonds as of. the close of the computation period. Not ..later than sixty (60) days after the retirement of the Bonds, the Issuer shall provide the Fiscal Agent with written. instructione -directing the Fiscal Agent to pay from the Rebate Fund to the United States one hundred percent (100%) of the thereto- fore unpaid Excess Investment Earnings of the Bonds. In the event that there are any . amounts remaining in the Rebate Fund following the payment required by the preceding sentence, the Issuer shall use such amount for any lawful purpose of the Issuer. The Issuer shall cause the Fiscal Agent to remit payments to the United States at the address prescribed by the Regulations as the same may be from time to time in effect with such reports and statements as may be prescribed by such Regula- tions. In the event that, for any reason, amounts in the Rebate Fund are insuffi- cient to make the payments to the United States which are required hereunder, the Issuer shall assure that such -payments are made to the United States on a timely basis from any funds lawfully available therefor. Further Obligation of Issuer. The Issuer . shall assure that Excess Investment Earnings are not paid or disbursed except as. provided in these instructions. To that end,. ,the Issuer shall-,.assure that investment transactions are on an arms-length :basis. In the event that.. Non-purpose Obligations consist of certificates of deposit ...;or investment .contracts,- :investment .in such Non-Purpose Obligations shall be made in :accordance with .the- procedures described in applicable Regulations as from time time in effect. MAINTENANCE OF RECORDS. The Issuer shall keep and retain for a period of six (6) years following the retirement of the Bonds, records of all determinations made pursuant to these Instructions. 19 $1,653,904.59 CITY OF HUNTIN=ON BEACH ASSESSMENT DISTRICT NO. 88-1 (RESERVOIR HILL) _ LIMITED OBLIGATION IMPFOVEbWT BONDS (THE "BONDS") RECEIPT FOR PURCHASE PRICE RECEIPT is hereby acknowledged from Stone & Youngberg of the purchase price, as hereinafter set forth, for the above described Bonds issued by the CITY OF HUNTINGIION BEACH, STATE OF CALIFORNIA, with proceedings having been taken pursuant to the provisions of the "Municipal Improvement Act of 1913", being Division 12 of the Streets and Highways Code of the State of California, and said Bonds being issued pursuant to the provisions of the "Improvement Bond Act of 1915", being Division 10 of said Code. Said Bonds are dated the 17th day of January, 1989, and are further designated as ."LIMIT® OBLIGATION IMPROVEMENT BONDS, ASSESSMENT DISTRICT NO. 88-1 (RESERVOIR HILL)". Said Bonds- are in the total principal aggregate amount of $1,653,904.59, and bear interest from their date to their maturity date, payable on March 2nd and September 2nd of each year commencing March 2; 1990, with principal payments commencing September 2, 1990. PRINCIPAL: $1,6531904.59 LESS DISCOUNT: ($ 41 ,347.61 ) PLUS ACCRUED INTEREST: $ 3,240.09 CLOSING AMOUNT DUE: $11615,797.07 DATED: January 26 , 1989. BANK OF MMCA NATIONAL TRUST AND SAVINGS ASSOCIATION, AS FISCAL AGENT FOR THE CITY OF HUNTINGICN BEACH, CALIFORNIA $1,653,904.59 CITY OF HUNTINGTCN BEACH ASSESSMENT DISTRICT NO. 88-1 (RESERVOIR HILL) LIMITED OBLIGATION IMPROVEMENT BONDS (THE "BOA") RECEIPT IOR BONDS S RECEIPT is hereby acknowledged from the TREASURER of the CITY OF HUNTPINGTON BEACH, STATE OF CALIFORNIA, of the above described Bonds issued by said City, with proceedings having been taken pursuant to the provisions of the "Municipal Improvement Act of 1913", being Division 12 of the Streets and Highways Code of the State of California, and said Bonds being issued pursuant to the provisions of the "Improvement Bond Act of 1915", being Division 10 of said Code. Said Bonds are dated the 17th day of January, 1989, and are further designated as "LIMITED OBLIGATION IMPFOVEMENTr BONDS, ASSESSMENT DISTRICT NO. 88-1 (RESERVOIR HILL)". Said Bonds are in the total principal aggregate amount of $1,653,904.59, and bear interest from their date to their maturity, payable on March 2nd and September 2nd of each year cxxmmencing March 2, 1990, with principal payments comencing September 2, 1990. DATED: January 26 , 1989. STONE & YOUNGBERG By: k k NOT TO EXCE D $1,774,511.39 CITY OF HUNTINGTON BEACH (Orange County, California) ASSESSMENT DISTRICT NO. 88-1 (RESERVOIR HILL) INTRODUCTION This Introduction does not purport to describe in detail all pertinent matters relating to the Bonds, the Project, the District, the Proposed Development and Property Ownership. Reference is hereby made to the entire Preliminary Official Statement including the cover page and the Appendices, if any, for further information in connection herewith. This Preliminary Official Statement describes the City of Huntington Beach, Orange County, California (the "City", the "County", and "State", respectively), Assessment District No. 88-1 (Resevoir Hill) (ttc "District") and provides information material to the sale of not to exceed $1,774,511.39 Limited Obligation Improvement Bonds (the "Bonds") proposed to be issued by the City pursuant to the Improvement Bond Act of 1915 (the "1915 Act" or the 'Bond Law") and pursuant to assessment proceedings conducted in accordance with the Municipal Improvement Act of 1913 (the "1913 Act"). The District lies predominantly in an area of the City of Huntington Beach, California, known as the "Reservoir Hill" area. The District is bounded on the north by Ellis Avenue, on the east by Huntington Street, on the South by Yorktown, and on the west by a line parallel to and approximately 1,000 feet west of Edwards Street. The District is situated in the southwest portion of the City. The District consists of 370 assessed parcels (the "Assessed Parcels") with an actual assessed acreage of approximatelya 588.10 acres. Resevoir Hill area consists predominantly of currently undeveloped properties which are located in an area of the City which lies generally above elevation 60. Proceeds from the Bonds will be used to fund a public improvement project (the "Project") generally consisting of approximately 12,740 lineal feet of water mains and appurtenances within the boundaries of the District. According to the City, the Orange County Assessor reports that the 1988-89 assessed valuation of all properties assessed under these proceedings totals $37,942,177 ($26,334,488 land, $11,607,689 improvements), which is approximately 21.38 times greater than the aggregate assessment. For a discussion of assessed valuation, your attention is directed to "The District" section herein. ' Preliminary, subject to cash collection and other appropriate modifications. I The Bonds are issued upon and secured by the unpaid assessments levied in the improvement proceedings, and said unpaid assessments together with interest thereon constitute a trust fund for the redemption and payment of the principal of the Bonds and the interest thereon. All the Bonds are also secured by the moneys in the Redemption Fund created pursuant to the assessment proceedings and by the unpaid assessments levied to provide for payment of said construction and acquisition of improvements, and, including principal and interest, are payable exclusively out of the Redemption Fund. The unpaid assessments represent fixed liens on the lots and parcels assessed. They do not, however, constitute a personal indebtedness of the respective owners of said lots and parcels. Under the provisions of the Improvement Bond Act of 1915, installments of principal and interest sufficient to meet annual debt service on the Bonds are to be included on the regular county tax bills sent to owners of property against which there are unpaid assessments. These annual installments are to be paid into a redemption fund ("Redemption Fund") which will be held by the Fiscal Agent and will be used to pay Bond principal and interest as they become due. The installments billed against each property each year represent a pro rata share of the total principal and interest coming due that year, based on the percentage which the unpaid assessment against that property bears to the total of unpaid assessments levied to repay the Bonds. If a delinquency occurs in the payment of any assessment installment, the City has the duty to transfer an amount equal to the delinquent installment from the Reserve Fund to the Redemption Fund. THE CITY HAS ELECTED IN THE PROCEEDINGS NOT TO BE OBLIGATED TO ADVANCE AVAILABLE FUNDS FROM THE CITY'S TREASURY IN THE EVENT OF A REDEMPTION FUND DEFICIENCY; PROVIDED, HOWEVER, THAT ITS ELECTION SHALL NOT PREVENT THE CITY FROM, IN ITS SOLE DISCRETION, SO ADVANCING FUNDS FOR SUCH PURPOSE AS OTHERWISE PROVIDED IN THE 1915 ACT. To provide funds which can be advanced to the Redemption Fund for payment of the Bonds and the interest thereon as a result of any delinquent assessment installments, the City will establish a special reserve fund (the "Reserve Fund") from Bond proceeds in the amount of six percent (6%) of the aggregate principal amount of the Bonds. Additionally, subject to City advances to the Reserve Fund, the City will covenant to initiate Superior Court foreclosure in the event of a delinquency within 150 days following such delinquency and to prosecute diligently to completion the foreclosure of each and every delinquent assessment installment. The right of redemption under this procedure is limited as opposed to the five year period under a tax sale. The Bonds are not general obligations of the City, of the State of California, or of any other political subdivision of the State, and neither the City nor the State, nor any political subdivision of the State, has pledged its full faith and credit for the payment thereof. For a more complete description see the subsections herein entitled "Security of the Bonds," "Reserve Fund" and "Covenant to Commence Superior Court Foreclosure" as described in the section entitled "The Bonds" herein. The City has caused the preparation of this Preliminary Official Statement; however, information contained herein does not purport to be comprehensive or definitive. All references to the Bonds and the Project are qualified in their entirety by reference to the Engineer's Report and to the City's resolutions setting forth the terms and description thereof. 2 r i J �• If f■N COUNT` .OS �NGE.ES COVNT` ;1 C 9 1 f� 1 0 I L , Thousand Oaks San Bernardino Pasadena i r i H011yw Ip SAN e!wN.RD"wO oO /IIv;-AS10E CDUNT" - Los Ange! — Riverside` i Ow,►NQE � � COUNTv Santa long na+ s Beach Cit of Hunting n Bea h 'C, Newport Beach Laguna Beach O _ Dana Point RIVERSIDE covNT" Santa San Clemente SAN OIEGO COUNT Catalina Island C 7E C E Oceanside ,y ,E Escondido �s Del Mar -San Diegr� N,¢%ICQ 3 RiEGI ONA! LOCH i 1ON MA? t- N W Z Q x �O a roOLSA AVE O ARGOSY Mc FA)DEN AVE aD �— r R N EDING R AVECENTER DRIVE V _ ~N F- U IHEIL AV %OH ... m WARN R N AVE _ _ — kY a SLATER ¢ AVE O 0 cc A 0° TALBERT AVE i �< O C/l A' O `•x, -- AVE y C, 'sa _ GARFILED._ AVE ; PORK OWN AVE !YA. N �► NFA ADAMI AVE ruj w IIAPOLIS AVE 19 in W ATL NTA 0 AVE _ 1 C < N O CITY OF AVE h W Z 1 t` , BANNING AVE HUNTI NGTON BEACH VICIA111-Y /WWR l2E3E,010%Q ///LL A10 At 88-/ 4 THE BONDS Purpose of the Bonds. The Bonds are authorized for the purpose of providing funds for water system improvements to benefit an area of approximately 588.10 net assessable acres. The improvements include the construction of certain water system improvements, together with appurtenances. The specific improvements to be made with the proceeds from the sale of the Bonds are described in the Resolution of Intention (define hereinbelow) and in "The Project" section of this Preliminary Official Statement. Authority for Issuance. The acquisition and improvement proceedings for the District have been conducted pursuant to Division 12 of the Streets and Highways Code of the State of California (the "Municipal Improvement Act of 1913") and the Resolution of Intention No. 59-26, adopted by the City Council of the City of Huntington Beach. The Bonds will be issued pursuant to the Bond Indenture (the "Indenture") dated December 19, 1988 approved by the City Council. The Bonds are secured by the unpaid assessments levied against private property in the District in accordance with the provisions of the 1913 Act and will be issued pursuant to Division 10 of the Streets and Highways Code (the "Bond Law" Description of the Bonds. The Bonds will be issued in the aggregate principal amount of not to exceed $1,774,511.391 and will be dated January 17, 1989. The Bonds will be issued as fully registered serial Bonds in denominations of any multiple of $5,000 each, except one Bond due in 1990, which will include the amount by which the principal amount of the issue exceeds the largest integral multiple of $5,000 contained therein. Interest on the Bonds shall be payable on March 2 and September 2 of each year commencing March 2, 1990. Principal of and premiums, if any, on the Bonds are payable upon presentation by the registered owner or his duly authorized representative at Bank of America National Trust and Savings, Los Angeles, California, Registrar, Transfer Agent and Paying Agent. Interest shall be paid by check or draft of the Paying Agent mailed to the registered owners (as shown on the registration books kept by the Paying Agent) as of the 15th day of the month immediately preceding the interest payment date. Redemption of Bonds. Any Bond may be called for redemption prior to maturity at the option of the City Treasurer in increments of $5,000 on any March 2 or September 2 upon payment of the principal amount, together with a premium of three percent (3%) of such principal amount and accrued interest on such principal amount to the date of redemption. No interest will accrue on the redeemed portion of a Bond beyond the March 2 or September 2 on which said Bond is called for redemption. Notice of redemption must be given by personal service or registered mail or certified mail to the registered owners at the registered owner's address as it appears on the registration books of the Registrar at least 30 days prior to the redemption date. The determination as to which Bond or Bonds are to be called will be made in accordance with Part 11.1 of the Bond Law. If less than an entire Bond is redeemed, the unredeemed portion shall be reissued to the registered owner 1. Preliminary, subject to cash collection and other appropriate modifications. 5 thereof. Subdivision, development or sale of parcels within the District could result in the early discharge of assessment liens. Such early discharge will result in redemption of Bonds prior to their stated maturities. Refunding Bonds. Pursuant to the "Refunding Act of 1984 for 1915 Improvement Act Bonds", Division 11.5 of the Streets and Highways Code of the State of California, the City may issue refunding bonds for the purpose of redeeming the Bonds. The City may issue and sell refunding bonds without giving notice to and conducting a hearing for the owners of property in the District, or giving notice to the holders of the Bonds if the governing body of the City finds that (i) each estimated annual installment of principal and interest on the reassessment to secure the refunding bonds is less than the corresponding annual installment of principal and interest on the original assessment, (ii) the number of years to maturity of all refunding bonds is no more than the number of years to the last maturity of the Bonds being refunded, and (iii) the amounts of any reassessments are computed by reducing each original assessment by the same percentage. Upon issuing refunding bonds, the governing body of the City could require that the Bonds be exchanged for refunding bonds on any basis which the governing body determines is for the benefit of the City if the Bondholders consent to the exchange. As an alternative to exchanging the refunding bonds for the Bonds, the City could sell the refunding bonds and utilize the proceeds to pay the principal of and interest and redemption premium, if any, on the Bonds as they become due, or advance the maturity of the Bonds and pay the principal of and interest and redemption premium thereon. Registration. The Bonds will be issued only as fully registered serial Bonds. Interest shall be payable to the registered owner at the owner's address as it appears on the registration books of the Registrar, or at such address as may have been filed with the Registrar for that purpose, as of the 15th day of the month immediately preceding each interest payment date. The Bonds will be transferable by the registered owner or by the registered owner's attorney, duly authorized in writing, at the office of the Transfer Agent, subject to the terms and conditions provided in the Transfer Agent's system for the registration for registered debt obligations, including the payment of certain charges, if any, upon surrender and cancellation. Upon such transfer, a new registered Bond or Bonds, of any authorized denomination or denominations of the same maturity, for the same aggregate principal amount, will be issued to the Transferee in exchange therefor. 6 SECURITY FOR THE BONDS The Bonds are issued upon and secured by the unpaid assessments levied in the improvement proceedings, and such unpaid assessments together with interest thereon constitute a trust fund for the redemption and payment of the principal of and interest on the Bonds. All of the Bonds are secured by the moneys in the Redemption Fund and the Reserve Fund created pursuant to the assessment proceedings and by the unpaid assessments levied against private property within the District to provide for payment of said acquisition and construction of improvements. Principal of and interest on the Bonds are payable exclusively out of the Redemption Fund. i The Bonds are not general obligations of the City and neither the faith and credit nor the taxing power of the City, the State of California or any of its political subdivisions is pledged to the payment of the Bonds. The unpaid assessments constitute fixed liens on the lots and parcels assessed, and do not constitute a personal indebtedness of the respective owners of said lots and parcels; accordingly, in the event of delinquency proceedings may only be had against the real property securing such delinquency. There is no assurance that the owners will be financially able to pay the assessment installments or that they will pay such installments even though financially able to do so. The unpaid assessments will be collected in annual installments, together with interest on the declining balances, on the tax roll on which general taxes on real property are collected and are payable, and will become delinquent at the same time and in the same proportionate amounts and bear the same penalties and interest after delinquency as do said general taxes. The properties upon which the assessments were levied are subject to the- same provisions for sale and redemption as are properties for nonpayment of general taxes; however, a shorter period of redemption may apply under provisions of state law. Limited Obligation of the City Upon Delinquency. If a delinquency occurs in the payment of any assessment installment, the City has the duty to transfer the amount of such delinquent installment from the Reserve Fund into the Redemption Fund. If there are additional delinquencies, after depletion of the Reserve Fund, the City has no duty to transfer into the Redemption Fund the amount of the delinquency out of any available funds of the City. Bondowners should not rely upon the City to advance monies to the Redemption Fund should the Reserve Fund ever be depleted. Reserve Fund. ` The Bond Indenture authorizing and providing for the issuance of Bonds, pursuant to the Improvement Bond Act of 1915, for the District will provide for the creation of a special reserve fund ("Reserve Fund") to provide available funds, to the extent of such Reserve Fund, from which the City shall make payment of the amount of any delinquent assessments levied in the proceedings and interest thereon, for transfer into the Redemption Fund for the Bonds. Payments from such Reserve Fund shall be deemed an advance to be reimbursed and deposited in the Reserve Fund from the proceeds of redemption or sale of the properties with respect to which payment of delinquent assessments and interest thereon was paid. 7 The Reserve Fund shall be held and maintained by the Fiscal Agent or designated Agent as a separate trust account distinct from all other funds of the City. Upon receipt of the proceeds of sale of the Bonds, an amount equal to six percent (6%) of the aggregate principal amount of Bonds shall be deposited in the Reserve.Fund. Covenant To Commence Superior Court Foreclosure. The Bond Law provides that in the event any assessment or installment thereof or any interest thereon is not paid when due, the City may order the institution of an action in the Superior Court of the State of California to foreclose the lien of the unpaid assessment as authorized in Part 14 of Division 10 of the Streets and Highways Code of the State of California. In such action, the real property subject to the unpaid assessment may be sold at a court foreclosure sale. Such court foreclosure sale procedure is not mandatory. However, the City will covenant with the registered Bond owners, that court foreclosure proceedings shall be commenced within 150 days following the date of such delinquency and that it will be diligently prosecuted to final judgment and sale. The City may, however, defer foreclosure proceedings if the City advances funds to the Reserve Fund to maintain the Reserve Fund at its original level. Effective July 1, 1983, a judgment debtor (property owner) has at least 140 days from the date of service of the notice of levy to redeem the property to be sold. If a property owner fails to so redeem and the property is sold, his or her only remedy is an action to set aside the sale which must be brought within six (6) months of the date of sale. If, as a result of such an action, a foreclosure sale is set aside, the judgment is revised and the judgment creditor is entitled to interest on the revised judgment as if the sale had not been made. (Section 701.680 of the Code of Civil Procedure of the State of California.) The constitutionality of the aforementioned legislation (which repeals the one-year redemption period) has not been tested and there can be no assurance that, if tested, such legislation will be upheld. Foreclosure proceedings may be deferred if the City advances funds to the Reserve Fund to keep said Fund continually at the level as initially funded (six percent [6%] of the principal amount of the Bonds originally issued), less adjustments for Bonds redeemed prior to maturity, as set forth in the Covenant for Superior Court Foreclosure. IN THE EVENT SUCH SUPERIOR COURT FORECLOSURE OR FORECLOSURES ARE NECESSARY, THERE MAY BE DELAYS IN PAYMENTS TO BONDHOLDERS PENDING PROSECUTION OF THE FORECLOSURE PROCEEDINGS TO COMPLETION AND RECEIPT BY THE CITY OF THE PROCEEDS OF THE FORECLOSURE SALE; IT IS ALSO POSSIBLE THAT NO BID WOULD BE RECEIVED AT THE FORECLOSURE SALE. Covenants of the City Regarding Arbitrage and Rebate. The City covenants and agrees to take no action which, in the opinion of Bond Counsel, would result in interest on the Bonds becoming includable in gross income under federal income tax law. The City represents and covenants in the Bond Indenture, for the benefit of the Bondowners, that it will comply with all applicable requirements of the Internal Revenue Code of 1986, as amended (the "Code"), together with any amendments thereto and regulations applicable thereto necessary to preserve the exclusion from gross income for purposes of federal income taxation of interest of the Bonds. 8 Priority of Assessment Lien. The assessment (and any re-assessment) and each installment thereof and any interest and penalties thereon constitute a lien against the lots and parcels of land on which they p were imposed until the same are paid. Such lien is subordinate to all fixed special assessment liens previously imposed upon the same property, but has priority over all private liens and over all fixed special assessment liens which may thereafter be created against the property. Such lien is co-equal with and independent of the lien for general taxes. The Assessment Engineer and the City report that there are no outstanding fixed special assessment liens previously levied on property located within the District. Special Assessments - Article XIIIA and XIIIB of the California Constitution. On July 2, 1979, the Fifth District Court of Appeal (94 Cal. App. 3d 974) rendered a 3-0 decision in the case of County of Fresno vs Malmstrom that determined that special assessments are not subject to the limitations of Article XIIIA (Proposition 13). The Court held the one percent tax limitation imposed by California Constitution Article XIIIA on ad valorem taxes does not apply to special assessments levied pursuant to Streets and Highways Code, Sections 5000 et seq. and 10000 et seq., the Improvement Act of 1911 and the Municipal Improvement Act of 1913. The Court further held that because special assessments pursuant to such acts are not within the definition of "special taxes" in Article XIIIA, the Constitution does not require the levy of assessments and the issuance of Bonds to be approved by a two-thirds vote of the qualified electors of the District. On September 12, 1979, the California Supreme Court refused to hear an appeal of the lower court's decision. On December 17, 1980, the Third District Court of Appeal (113 Cal. App. 3d 443) rendered a 3-0 decision in the case of County of Placer v. Corin that determined that special assessments are not subject to the limitation of Article XIIIB (Proposition 4, the Gann appropriations limit). The Court held that the definition of "proceeds of taxes", imposed by California Constitution Article XIIIB does not apply to special assessments and Improvement Bonds issued pursuant to Streets and Highways Code, Sections 8500 et seq., and 10000 et seq., the Improvement Bond Act of 1915 and the Municipal Improvement Act of 1913. The decision of the Court was not appealed. 9 The following table sets forth the estimated schedule of annual debt service of the Bonds: CITY OF HUNTINGTON BEACH ASSESSMENT DISTRICT NO. 88-1 (RESERVOIR HILL) ESTIMATED TABLE OF DEBT SERVICE NOT TO EXCEED $1,774,511.39 Maturing September 2 Principal Interest Debt Service 1990 1991 1992 1993 1994 .1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 * Preliminary; subject to change. 10 BONDOWNERS' RISKS General. In order to pay debt service on the Bonds, it is necessary that unpaid installments of assessments on land within the District are paid in a timely manner. Should the installments not be paid on time, the City has established a Reserve Fund in the initial amount of approximately six percent (6%) of the aggregate principal amount of the Bonds to cover delinquencies. The assessments are secured by a lien on the parcels of land and the City can institute foreclosure proceedings to sell land with delinquent installments for the amount of such delinquent installments in order to obtain funds to pay debt service on the Bonds. Failure by owners of the parcels to pay installments of assessments when due, depletion of the Reserve Fund, or the inability of the City to sell parcels which have been subject to foreclosure proceedings for amounts sufficient to cover the delinquent installments of assessments levied against such parcels may result in the inability of the City to make full or punctual payments of debt service on the Bonds, and bondowners would therefore be adversely affected. Unpaid assessments do not constitute a personal indebtedness of the owners of the lots and parcels within the District. There is no assurance the owners will be able to pay the assessment installments or that they will pay such installments even though financially able to do so. Bankruptcy and Foreclosure. The payment of property owners' assessment installments and the ability of the City to foreclose the lien of a delinquent unpaid assessment may be limited by bankruptcy, insolvency, or other laws generally affecting creditors' rights or by the laws of the State relating to court foreclosure. Although bankruptcy proceedings would not in themselves cause the assessment liens to become extinguished, bankruptcy of a property owner could result in a delay by the City in prosecuting court foreclosure proceedings. Such delay would increase the likelihood of a delay or default in payment of the principal of and interest on the Bonds, and the possibility of delinquent assessment installments not being paid in full. The various legal opinions to be delivered concurrently with the delivery of the Bonds (including Bond Counsel's approving legal opinion) will be qualified, as to the enforceability of the various legal instruments, by bankruptcy, reorganization, insolvency or other similar laws affecting the rights of creditors generally. Payment of the assessment installments is entirely dependent upon the timely payment by the existing landowners, or any other subsequent owners of property within the District; therefore, there could be delays in payment of debt service on the Bonds as bankruptcy filing may delay the City's ability to complete its Superior Court foreclosure proceedings. Moreover, amounts received upon foreclosure sales may not be sufficient to fully discharge delinquent installments. 11 .i Factors Which May Affect Land Development. There is no development currently proposed, however, any subsequent development proposed for the District may be affected by changes in general economic conditions, fluctuations in the real estate market, changes in ownership of the land and other factors. In addition, proposed development would be subject to existing and future federal, state and local regulations. Approval may be required from various public agencies in connection with the design, nature and extent of required public improvements, or such matters as land use and zoning. Failure to meet any such future regulations or obtain any such approvals in a timely manner could delay or adversely. affect any proposed development of the District. Limited City Obligation Upon Delinquency. The City's obligation to advance moneys to pay Bond debt service in the event of delinquent assessment installments shall not exceed the balance of the Reserve Fund. The City has made an election in the Resolution of Intention not to be obligated to advance funds .from the general fund of the City for delinquent assessment installments pursuant to Section 8769(b) of the Bond Law; the only obligation of the City is to transfer amounts available in the Reserve Fund. There is no assurance that funds will be available for this purpose and if, during the period of delinquency there are insufficient funds in the Reserve Fund, a delay may occur in payments to the owners of the Bonds. Direct and Overlapping Debt. Although no specific development project is planned within the District, the future development of the Resevoir Hills area would require the installation of a substantial amount of public improvements in addition to the Project. The City presently anticipates that a portion of such additional public improvements would be financed through the future formation of one or more assessment districts and/or community facilities districts, some of the territory of which would include land within the District. 12 r THE PROJECT Description of Work. The proposed works of improvement are generally described as follows: The construction of certain water system improvements within the Assessment District including appurtenances. Specific improvements to be constructed include furnishing and installing approximately 12,740 lineal feet of water mains and appurtenances to serve a new higher pressure zone in the Reservoir Hill Assessment District within the City of Huntington Beach. Water mains will range in size from 12- inches to 18-inches in diameter. Proposed locations of the new water mains are shown on the Assessment District Diagram in the Appendix Section of this Preliminary Official Statement. Estimated Project Costs. The following are Project costs for the Assessment District as estimated after receipt of the construction bids on November 17, 1988. CITY OF HUNTINGTON BEACH (Orange County, California) COST ESTIMATE FOR ASSESSMENT DISTRICT NO. 88-1 (RESERVOIR HILL) Estimated Costs 1. CONSTRUCTION EXPENSE Public Works of Construction $1,185,754.00 Construction Contingency 118,575.00 ---------------- TOTAL CONSTRUCTION AND CONTINGENCY $1,304,329.00 II. INCIDENTAL EXPENSES Incidental Costs $ 327,500.39 Underwriter's Discount 44,363.00 Reserve Fund 106,471.00 ---------------- TOTAL INCIDENTALS $ 478,334.39 III. LESS CONTRIBUTIONS Estimated Construction , Earnings $ 8,152.00 Cash Collections 0.00 ---------------- TOTAL CONTRIBUTIONS $ 8,152.00 ESTIMATED TOTAL ASSESSMENT $1,774,511.39 13 Method and Formula of Assessment. The law requires and the statutes provide that assessments, as levied pursuant to the provisions of the "Municipal Improvement Act of 1913", must be based on the benefit that the properties receive from the works of improvement. The statute does not .specify the formula that should be used in any special assessment district proceedings. The responsibility rests with the Engineer of Work (the "Assessment Engineer") who is retained for the purpose of making an analysis of the facts and determining the correct apportionment of the assessment obligation, based upon the benefit received by each parcel assessed. For these proceedings the City retained the services of Black & Veatch, Santa Ana, California. The Assessment Engineer makes his recommendation at the public hearing on the District, and the final authority and action rests with the City after hearing all testimony and evidence presented at that public hearing. Upon the conclusion of the public hearing, the City must take the final action in determining whether or not the assessment spread has been made in direct proportion to the benefits received. The following information was included in the Engineer's Report accepted and approved by the City Council: First of all, it is necessary to identify the benefit that the public improvement will render to the properties within the boundaries of the District. Properties located within the District will receive the benefit of having access to a public water supply of adequate capacity and pressure. Two distinguishable types of benefits may be realized by properties in the District: capacity and distribution. All properties in the District will be assured of adequate capacity furnished by the grid or network of new and existing water mains comprising the higher pressure zone. Those properties which are adjacent to, or which "front" new water mains, will receive a further benefit of distribution. A distribution benefit results from being able to make a direct service connection tap to a new water main located in the higher pressure zone. Exemptions from the District are granted to those properties which now have adequate water service and which meet the following development criteria: Parcels fully developed in conformance with the City's general plan and zoning ordinances. Such parcels are normally characterized by street improvements, permanent structures, asphalt parking lots, and landscaping, all of which satisfy current local code requirements. Existing water customers located in the higher pressure zone, but who are now located in the lower pressure zone, would receive the benefit of increased capacity and pressure, but not a distribution benefit. These customers are only assessed for a capacity benefit. In further making the analysis, it is necessary that the property owners receive a special and direct benefit distinguished from that of the general public. Only those properties located in the higher pressure zone, which includes land areas generally above an elevation of 60 feet above mean sea level, and which can be logically served from either the new water main or from future extensions of those mains, benefit from this project. Existing properties located in the high pressure zones which are already served by an existing smaller booster pressure zone, such as the Seacliff Village Shopping Center and adjacent residential developments will receive no added benefits from this project. 14 r An in-depth analysis was made and two factors are being used in the final method of spread and assessment. The proposed assessment formula includes two cost components: one for capacity and one for distribution. Those properties which front new water mains in the higher pressure zone will be assessed for capacity and distribution. Those properties which do no front new mains will only be assessed for capacity. The capacity charge is based upon total acreage in the District, and each property will be assessed a flat unit cost per acre. The distribution assessment is based upon the front footage of each property which borders a new water main. The distribution assessment is based ! upon an equivalent cost for installing a distribution main along the affected properties. A typical distribution main size would be 6 to 8 inches in diameter. The installed cost of a 6 to 8 inch diameter water main and appurtenances is approximately $30 per foot of length. Since a water distribution main normally serves properties on both sides of the street, the proposed distribution assessment is one-half times $30 per foot of length, which is $15 per foot of front footage. For properties located on street corners, the distribution assessment is based upon the average foot frontage along the two streets. Summary of Assessment Proceedings. The Assessment proceedings being used by the City for the District provide for all costs to be either estimated or ascertained prior to doing the work or making the acquisition of the improvements, right of use or property involved. Under such proceedings, the assessments are then levied, collections made and Bonds sold to represent unpaid assessments. The money obtained from cash collections and Bond proceeds shall be used by the City in payment for the work to be accomplished, for the property or right of use to be acquired and for incidental expenses. Assessment proceedings can be initiated by either a petition or by the City without a petition. The District proceedings were initiated by petition of the owners of more than 60% of the area of the property to be subject to assessment. The assessment proceedings commenced, and Black & Veatch prepared a written report (the "Engineer's Report") which contained, among other things, the estimate of Project costs and the assessment for each parcel to be benefited. The total amount of the proposed assessment I was based on the engineer's estimated cost of the Project. The individual assessments were spread among the various parcels of land within the District on the basis of the j special benefit to be derived by each parcel from the improvements and acquisitions. j The Engineer's Report was filed and preliminarily approved by the City Council on October 24, 1988. Thereafter, notice was published in a local newspaper and also posted along all of the open streets within the District. In addition, notice of the proposed assessment was mailed to each of the owners whose property was proposed to be assessed. The notices advised the property owners of the filing of the Engineer's Report, the date, time and place for a hearing on the Project, the proposed assessments and the right to protest. The mailed notices also advised the property owners of the estimated amount proposed to be assessed against their properties, as shown in the Engineer's Report. 15 Property owners had the right to protest in writing prior to or at the commencement of the hearing and to be heard at such hearing. At the conclusion of the hearing, held on December S, 1988, the City adopted its resolution confirming the assessments and ordering the work and acquisitions. Upon recordation by the County Recorder of Orange County in the official records, the assessments became liens against the various assessed parcels. The property owners were given published and mailed notice of the opportunity to pay all or a portion of the assessment in cash within 30 days of the recording of the assessment in the office of the Superintendent of Streets. The notice further advised the property owners that to the extent cash payment was not made, Bonds would be sold to represent unpaid assessments. It is anticipated that the cash payment period will end on January 6, 1989. Any property owner who pays an assessment during the cash collection period is entitled to, and will receive, a reduction of the assessment representing that portion of the assessment that would otherwise be used for a Bond discount, capitalized interest and for funding of the Reserve Fund. Special Assessment Investigation, Limitation, and Majority Protest Act of 1931. The provisions of the Special Assessment Investigation, Limitation and Majority Protest Act of 1931, Division 4 of the Streets and Highways Code of the State of California, do not apply to these assessment proceedings inasmuch as these proceedings have been waived by petition executed by over 60% of the owners of land proposed to be assessed under these proceedings. Disposition of Surplus Funds. After completion of the Improvement Project and the payment of all claims from the Improvement Fund, the City's governing body shall determine if a surplus remains in the Improvement Fund by reason of the assessment and any supplemental assessment levied for said improvement. Any such surplus shall be used as follows: a) For transfer to the General Fund of the City of an amount not to exceed the lesser of One Thousand Dollars ($1,000.00) or five percent (5%) of the total amount expended from the Improvement Fund; and b) For the maintenance of the improvement; and c) As a credit upon the assessment and any supplemental assessment, as provided in Section 10427.1 of the Streets and Highways Code of the State of California. 16 THE ASSESSMENT DISTRICT The property within the boundaries of the District lies entirely within the City of Huntington Beach. The District is located in the Reservoir Hill portion of the City. The District is generally bounded on the north by Ellis Avenue, on the east by Huntington Street, on the south by Yorktown, and on the west by a line parallel to and approximately 1,000 feet west of Edwards Street. Existing Zoning and Land Use. The land within the Assessment District is zoned as residential and commercial; the majority of which is undeveloped. A majority of the underdeveloped land is owned by Huntington Beach Company, whose operations are concentrated in real estate investments and petroleum interests. Land use within the District is detailed below: LAND USES C-1 12 acres Neighborhood Commercial C-2 25 acres Community Business District M-1 163 acres Light Industrial M-2 40 acres Industrial R 360 acres Residential The neighborhood commercial (C-1) district is intended to provide for limited commercial development of under one and one-half acres on one corner of the intersection of secondary arterial highways which is compatible with surrounding residential uses. No automotive uses or outside storage is permitted. The community business (C-2) district, a more intensive zone, permits all uses within the CA District and, in addition, permits general retail uses including minor automobile repair and outside storage, subject to specific standards. Agencies Which Provide Public Utilities Within the Assessment District. The public agencies and utility companies listed below provide public utilities and municipal services to the property within the Assessment District. Electrical: Southern California Edison Gas: Southern California Gas Telephone: General Telephone Water: City of Huntington Beach Sewerage: City of Huntington Beach Education: Huntington Beach High School District Huntington Beach Elementary School District Fire: City of Huntington Beach Law Enforcement: City of Huntington Beach 17 Access to Parcels to be Assessed. According to City staff, all parcels within the District have legal access. Assessment Roll. Beginning with the 1981-82 fiscal year, property in California is assessed at 100 percent of full cash value. Article X111A of the California Construction defines such "full cash value" as the appraised value as of March 1, 1975, plus adjustments not-to- exceed two percent (2%) per year to reflect inflation and requires reassessment of "full cash value" upon change of ownership or new construction. Accordingly, the assessed values in the Table reflect only 1975 values as increased by two percent (2%) per year unless the parcel has changed ownership or has had new construction thereon, in which case the assessed valuation will more closely approximate current market value. The following information was prepared by the Assessment Engineer as part of the Engineer's Report, dated October 17, 1988, which presents the assessment roll, the Orange County Assessor's 1988-89 Full Cash Value (Land and Improvements), ownership of parcels and estimated assessment under these proceedings. 18 i I, CITY OF HUNTINGTON BEACH ASSESSMENT DISTRICT NO. 88-1 ASSESSMENT ROLL ------------------------------------------------------------------------------------------- APN PROPERTY BASE ASSESSED ASSESSED TOTAL VALUE NO. OWNER YEAR LAND VALUE IMPROVEMENTS VALUES ASSESSMENT TO LIEN ------------------------------------------------------------------------------------------- 023 010 12 HUNT BCH CO 75 $46,856 $0 $46,856 $14,148.11 3.31 023 010 13 HUNT BCH Co 75 700,126 0 700,126 51,485.13 13.60 023 181 29 HUNT BCH CO 85 2,500,800 5,087,318 7,588,118 158,821.60 47.78 023 251 41 HUNT BCH CO 75 36,111 0 36,111 6,408.15 5.64 110 015 56 HUNT BCH CO 75 186,733 0 186,733 91,899.92 2.03 110 015 57 HUNT BCH CO 75 70,664 0 70,664 39,241.36 1.80 110 015 59 SO CAL ED * 0 0 0 17,591.00 0.00 110 190 01 HATHAWAY 47,421 0 47,421 11,459.28 4.14 110 190 02 JOHNSON 88 97,314 0 97,314 6,106.59 15.94 110 190 03 JOHNSON 88 67,638 0 67,638 2,965.34 22.81 110 190 04 JOHNSON 88 68,254 0 68,254 3,141.25 21.73 110 190 05 HENDRICKS 99,397 0 99,397 12,213.18 8.14 110 190 06 PAC AMER OIL 13,282 0 13,282 2,487.87 5.34 110 191 Cl FJAERAN 1,495 0 1,495 158.32 9.44 110 191 02 GOODING 860 0 860 158.32 5.43 110 191 03 LINDSEY 6,131 0 6,131 326.69 18.77 110 191 04 McKINNON 860 0 860 533.32 1.61 110 191 05 OLIVER 860 0 860 158.32 5.43 110 191 06 FJAERAN 1,495 0 1,495 158.32 9.44 110 191 08 KOVNER 12,570 0 12,570 158.32 79.40 110 191 09 FJAERAN 1,495 0 1,495 158.32 9.44 110 191 12 MCKENZIE 80 877 0 877 158.32 5.54 110 191 13 LANG 80 877 0 877 158.32 5.54 110 191 14 MORTON 80 877 0 877 158.32 5.54 110 191 15 MAROW 80 1,899 0 1,899 326.69 5.81 110 191 16 HANKS 80 877 0 877 158.32 5.54 110 191 17 FJAERAN 87 8,160 0 8,160 158.32 51.54 110 191 18 LINDESY 81 6,253 0 6,253 326.69 19.14 I I i I 19 ------------------------------------------------------------------------------------------- APN PROPERTY BASE ASSESSED ASSESSED TOTAL VALUE NO. OWNER YEAR LAND VALUE IMPROVEMENTS VALUES ASSESSMENT TO LIEN ------------------------------------------------------------------------------------------- 110 191 20 FJAERAN 84 1,524 0 1,524 158.32 9.63 110 191 21 WOOLPERT 80 4,634 0 4,634 158.32 29.27 110 192 01 MARTINSON 80 1,759 0 1,759 326.69 5.38 110 192 03 OLIVER 80 877 0 877 158.32 5.54 110 192 06 QUINE 83 13,246 0 13,246 158.32 83.67 110 192 07 ENENBACH 80 877 0 877 158.32 5.54 110 192 08 GUTHRIE 80 877 0 877 158.32 5.54 110 192 09 TAYLOR 80 2,177 0 2,177 158.32 13.75 110 192 11 CARMICHAEL 80 877 0 877 158.32 5.54 110 192 12 SWARTZ 80 877 0 877 158.32 5.54 110 192 14 MAROW 80 2,734 0 2,734 477.47 5.73 110 192 16 FJAERAN 84 1,524 0 1,524 158.32 9.63 110 192 18 ADLER 86 24,969 0 24,969 158.32 157.71 110 192 19 MEYER 80 2,504 0 2,504 158.32 15.82 110 193 01 MAROW 80 832 0 832 158.32 5.26 110 193 02 FJAERAN 84 1,584 0 1,584 158.32 10.01 110 193 03 BIRD 80 877 0 877 158.32 5.54 110 193 04 BOUSKA 80 877 0 877 158.32 5.54 110 193 05 MORTON 80 877 0 877 158.32 5.54 110 193 07 MORTON 80 1,759 0 1,759 326.69 5.38 110 200 01 ALBRECHT 88 480,500 0 480,500 5,352.69 89.77 110 200 02 ALBRECHT 88 729,000 0 729,000 6,282.50 116.04 110 200 03 COLBERT 88 493,563 0 493,563 12,012.14 41.09 110 200 04 HATHAWAY 86 262,168 0 262,168 6,282.50 41.73 110 200 05 HATHAWAY 86 346,632 3,685 350,317 12,565.00 27.88 110 200 10 HUNT BCH CO 79 18,879 0 18,879 6,106.59 3.09 110 200 11 HUNT BCH CO 75 40,325 0 40,325 6,106.59 6.60 110 200 13 HUNT PAC CO 86 478,479 0 478,479 17,163.18 27.88 110 200 14 SUNDERLAND 75 23,046 0 23,046 17,163.18 1.34 110 200 15 ISHIBASHI 75 76,865 0 76,865 12,565.00 6.12 110 200 16 ISHIBASHI 75 49,600 0 49,600 12,565.00 3.95 110 200 17 HUNT BCH CO 75 239,748 0 239,748 60,490.37 3.96 110 200 18 HUNT BCH CO 75 23,046 0 23,046 17,012.40 1.35 110 200 19 CITY OF HB 80 233,097 0 233,097 8,506.20 27.40 110 200 20 HUNT BCH CO 79 181,947 0 181,947 8,506.20 21.39 20 ------------------------------------------------------------------------------------------- APN PROPERTY BASE ASSESSED ASSESSED TOTAL VALUE NO. OWNER YEAR LAND VALUE IMPROVEMENTS VALUES ASSESSMENT TO LIEN ------------------------------------------------------------------------------------------- 110 200 21 BLASGEN 79 26,596 0 26,596 17,012.40 1.56 110 200 22 HUNT BCH CO 82 602,164 0 602,164 18,486.83 32.57 110 200 23 DE NUBILA 75 39,094 0 39,094 6,282.50 6.22 110 200 29 HUNT BCH CO 88 378,245 0 378,245 214,383.30 1.76 110 210 01 LANDIS 77 82,734 7,944 90,678 14,175.83 6.40 110 210 02 ROSS 75 27,543 0 27,543 4,583.59 6.01 110 210 03 NICCOLE 79 6,623 0 6,623 1,374.55 4.82 110 210 04 SHERRILL 88 27,000 0 27,000 326.69 82.65 110 210 06 SCHUESLER 75 2,310 0 2,310 1,701.24 1.36 110 210 07 SPELTS 75 12,397 0 12,397 2,268.32 5.47 110 210 08 HUNT BCH CO 79 88,749 0 88,749 3,402.48 26.08 110 210 09 HUNT BCH CO 75 67,257 0 67,257 16,962.14 3.97 110 210 10 NICCOLE 82 104,818 0 0 1 4,818 2,797.70 37.47 110 210 11 GOLDON 79 470 0 470 857.67 0.55 110 211 01 SMITH 80 970 0 970 535.83 1.81 110 211 02 BORGHETTI 80 970 0 970 535.83 1.81 110 211 03 MAROW 80 2,084 0 2,084 1,071.66 1.94 110 211 04 TUNSTALL 80 1,016 0 1,016 535.0 1.90 110 211 05 TUNSTALL 80 7,421 0 7,421 3,755.85 1.98 110 211 06 WEIR OIL CO 83 60,336 0 60,336 653.38 92.34 110 211 07 WEIR OIL CO 83 15,069 0 15,069 653.38 23.06 110 211 08 WEIR OIL CO 83 15,069 0 15,069 160.83 93.70 110 211 09 HOWELL 85 13,246 0 13,246 160.83 82.36 110 211 10 ESTRADA 80 1,063 0 1,063 160.83 6.61 110 211 11 VARGAS 80 970 0 970 160.83 6.03 110 211 12 VARGAS 80 970 0 970 160.83 6.03 110 211 13 WOOD 82 12,542 0 12,542 160.83 77.98 110 211 14 VARGAS 80 970 0 970 160.83 6.03 110 212 01 COBB 87 2,788 0 2,788 160.83 17.34 110 212 02 FOLMAR 80 1,016 0 1,016 160.83 6.32 110 212 03 FOLMAR 80 1,016 0 1,016 160.83 6.32 110 212 04 FOLMAR 80 1,016 0 1,016 160.83 6.32 110 212 05 FOLMAR 80 1,016 0 1,016 160.83 6.32 110 212 06 THOMPSON 82 4,458 0 4,458 160.83 27.72 110 212 07 WEIR OIL CO 83 16,560 0 16,560 160.83 102.97 21 i ------------------------------------------------------------------------------------------- APN PROPERTY BASE ASSESSED ASSESSED TOTAL VALUE NO. OWNER YEAR LAND VALUE IMPROVEMENTS VALUES ASSESSMENT TO LIEN ------------------------------------------------------------------------------------------- 110 212 08 WEIR OIL CO 83 16,560 0 16,560 160.83 102.97 110 212 09 WEIR OIL CO 83 16,560 0 16,560 160.83 102.97 110 212 10 BROWN 80 1,063 0 1,063 160.83 6.61 110 212 11 BROWN 80 1,063 0 1,063 160.83 6.61 110 212 12 MAROW 80 1,016 0 1,016 160.83 6.32 110 212 14 FOLMAR 80 1,016 0 1,016 160.83 6.32 110 212 15 FOLMAR 80 3,014 0 3,014 477.47 6.31 110 212 16 THOMPSON 82 12,542 0 12,542 160.83 77.98 110 212 17 MAROW 80 1,016 0 1,016 160.83 6.32 110 212 18 AMARK 80 3,189 0 3,189 160.83 19.83 110 212 19 FOLMAR 80 1,016 0 1,016 160.83 6.32 110 212 20 FOLMAR 80 1,016 0 1,016 160.83 6.32 110 212 21 FOLMAR 80 2,084 0 2,084 326.69 6.38 110 212 22 AMARK 80 2,504 0 2,504 160.83 15.57 110 213 01 MAROW 80 1,016 0 1,016 160.83 6.32 110 213 02 BATES 84 12,987 0 12,987 160.83 80.75 110 213 03 BEER 80 970 0 970 160.83 6.03 110 213 04 CATRON 87 7,650 0 7,650 160.83 47.57 110 213 05 PARKS 80 1,063 0 1,063 160.83 6.61 110 213 06 PARKS 80 1,063 0 1,063 160.83 6.61 110 213 07 WALLBANK 80 1,063 0 1,063 160.83 6.61 110 213 08 WALLBANK 80 1,063 0 1,063 160.83 6.61 110 213 09 WALLBANK 80 1,063 0 1,063 160.83. 6.61 110 213 10 WALLBANK 80 1,063 0 1,063 160.83 6.61 110 213 11 MAROW 80 1,016 0 1,016 160.83 6.32 110 213 12 BORGHETTI 80 970 0 970 160.83 6.03 110 220 02 BRINDLE 76 37,292 0 37,292 16,962.14 2.20 110 220 03 BRINDLE 78 42,263 0 42,263 10,287.70 4.11 110 220 04 BRINDLE 78 98,972 57,929 156,901 6,674.44 23.51 110 220 05 BRINDLE 80 243,633 0 243,633 12,565.00 19.39 110 221 01 PETTITT 86 3,499 0 3,499 577.99 6.05 110 221 02 WELLER 80 2,269 0 2,269 376.95 6.02 110 221 03 MAIN 80 1,109 0 1,109 183.45 6.05 110 221 04 WALLBANK 87 5,100 . 0 5,100 183.45 27.80 110 221 05 ALLEN 80 1,109 0 1,109 183.45 6.05 22 ------------------------------------------------------------------------------------------- APN PROPERTY BASE ASSESSED ASSESSED TOTAL VALUE NO. OWNER YEAR LAND VALUE IMPROVEMENTS VALUES ASSESSMENT TO LIEN ------------------------------------------------------------------------------------------- 110 221 06 TITLE INSUR 80 1,109 0 1,109 183.45 6.05 110 221 07 BAILEY 80 1,202 0 1,202 183.45 6.55 110 221 08 WALKER 84 2,927 0 2,927 183.45 15.96 110 221 09 HARGROVE 80 2,177 0 2,177 183.45 11.87 110 221 10 LAMBERT 80 1,109 0 1,109 183.45 6.05 110 221 11 KAHLE 80 1,202 0 1,202 183.45 6.55 110 221 12 HOFFMAN 80 1,109 0 1,109 183.45 6.05 110 221 13 WALKER 84 2,927 0 2,927 183.45 15.96 110 221 14 KELLER 80 1,109 0 1,109 183.45 6.05 110 221 15 DEUTSCH 83 13,246 0 13,246 183.45 72.20 110 221 17 BANK UNION 80 1,109 0 1,109 183.45 6.05 110 221 18 MITCHELL 83 8,323 0 8,323 183.45 45.37 110 221 19 PETTITT 80 1,109 0 1,109 183.45 6.05 110 221 20 TERRY 80 1,109 0 1,109 183.45 6.05 110 221 21 FORD 86 9,883 0 9,883 183.45 5'_.87 110 221 22 SCOULLER 80 1,109 0 1,109 183.45 6.05 110 221 23 SHERRILL 83 5,520 0 5,520 183.45 30.09 110 221 24 WALKER 84 2,927 0 2,927 183.45 15.96 110 221 25 HARGROVE 80 2,177 0 2,177 183.45 11.87 110 221 26 HAY 81 2,966 0 2,966 183.45 16.17 110 222 01 SMITH 84 1,297 0 1,297 183.45 7.07 110 222 02 WOODSON 82 1,113 0 1,113 183.45 6.07 110 222 04 LAN 80 2,269 0 2,269 376.95 6.02 110 222 05 HUBBS 80 1,109 0 1,109 183.45 6.05 110 222 06 FULLER 80 2,269 0 2,269 376.95 6.02 110 222 07 BUTTERS 80 1,202 0 1,202 183.45 6.55 110 222 08 JACOBSON 80 1,389 0 1,389 183.45 7.57 110 222 09 JACOBSON 80 2,781 0 2,781 376.95 7.38 110 222 10 NEWCOMER 80 4,405 0 4,405 728.77 6.04 110 222 11 YOUNG 83 47,473 0 47,473 552.86 85.87 110 222 13 MORTON 80 1,109 0 1,109 183.45 6.05 110 222 14 SPELTS 80 1,389 0 1,389 183.45 7.57 110 222 16 ADDLER 85 8,489 0 8,489 183.45 46.27 110 222 18 TOWNLEY 80 1,109 0 1,109 183.45 6.05 110 222 19 SMITH 85 9,019 0 9,019 183.45 49.16 23 -------------------------------------------------------------------------------------------- APN PROPERTY BASE ASSESSED ASSESSED TOTAL VALUE NO. OWNER YEAR LAND VALUE IMPROVEMENTS VALUES ASSESSMENT TO LIEN ------------------------------------------------------------------------------------------- 110 222 20 EILERTSEN 87 25,500 0 25,500 552.86 46.12 110 222 21 POWERS 80 1,109 0 1,109 183.45 6.05 110 222 22 STERMAN 87 3,080 0 3,080 183.45 16.79 110 222 23 GUSTAFSON 88 6,054 0 6,054 183.45 33.00 110 222 24 STERMAN 87 3,080 0 3,080 183.45 16.79 110 222 26 BORGHETTI 80 1,063 0 1,063 183.45 5.79 110 222 27 BORGHETTI 80 1,063 0 1,063 183.45 5.79 110 222 28 BORGHETTI 80 1,063 0 1,063 183.45 5.79 110 222 29 SAILER 80 2,154 0 2,154 183.45 11.74 110 222 30 SAILER 80 2,154 0 2,154 183.45 11.74 110 230 08 HUNT BCH CO 83 359,139 0 359,139 73,128.30 4.91 110 072 02 HUNT BCH CO 75 11,832 0 11,832 2,161.18 5.47 111 072 03 HUNT BCH CO 75. 2,601 0 2,601 326.69 7.96 111 072 04 HUNT BCH CO 75 1,156,673 0 1,156,673 155,810.58 7.42 111 072 05 HUNT BCH CO 75 193,451 0 193,451 23,672.46 8.17 111 072 07 HUNT BCH CO 75 35,024 0 35,024 9,649.92 3.63 111 072 08 HUNT BCH CO 75 16,137 0 16,137 4,071.06 3.96 111 072 09 HUNT BCH CO 75 19,258 0 19,258 2,940.21 6.55 111 072 10 HUNT BCH CO 75 76,679 0 76,679 11,760.84 6.52 111 072 11 HUNT BCH CO 83 663,550 0 663,550 12,213.18 54.33 111 072 12 .HUNT BCH CO 83 663,550 0 663,550 12,213.18 54.33 111 072 14 HUNT BCH CO 87 660,302 0 660,302 16,962.14 38.93 111 072 15 HUNT BCH CO 77 94,523 0 94,523 16,962.14 5.57 111 072 17 HUNT BCH CO 78 31,756 25,268 57,024• 7,088.39 8.04 111 072 18 HUNT BCH CO 75 45,767 0 45,767 15,431.55 2.97 111 072 20 HUNT BCH CO 75 85,811 0 85,811 9,825.83 8.73 111 072 21 HUNT BCH CO 77 130,496 14,099 144,595 13,618.12 10.62 111 072 22 HUNT BCH Co 77 25,933 0 25,933 5,026.0� 5.16 111 072 23 HUNT BCH CO 75 53,012 0 53,012 8,242.64 6.43 111 110 01 GREER 75 25,695 5,768 31,463 2,513.00 12.52 111 110 02 GREER 75 25,695 0 25,695 2,513.00 10.22 Ill 110 03 GEOTSCH 75 25,695 0 25,695 2,513.00 10.22 111 110 04 COHN 76 99,822 0 99,822 4,598.79 21.71 111 110 05 COHN 88 63,985 0 63,985 2,462.74 25.98 111 110 07 WEAVER 85 57,631 0 57,631 3,506.50 16.44 24 ------------------------------------------------------------------------------------------- APN PROPERTY BASE ASSESSED ASSESSED TOTAL VALUE NO. OWNER YEAR LAND VALUE IMPROVEMENTS VALUES ASSESSMENT TO LIEN ------------------------------------------------------------------------------------------- 111 110 09 BOLLMAN 88 41,271 70,795 112,066 2,329.29 48.11 111 110 10 GABE 85 27,405 0 27,405 1,177.21 23.28 111 110 11 DUNN 80 7,654 0 7,654 1,177.21 6.50 111 110 12 DUNN 80 7,654 0 7,654 1,177.21 6.50 111 110 13 DUNN 80 7,654 0 7,654 1,177.21 6.50 111 110 14 LANDIS 80 7,654 0 7,654 1,177.21 6.50 111 110 16 CUSTER 85 232,722 24,407 257,129 2,025.48 126.95 111 110 18 MANDIC 84 612,114 1,622 613,736 5,026.00 122.11 111 110 19 GREER 75 25,697 24,467 50,164 2,513.00 19.96 111 110 20 GREER 75 25,697 0 25,697 2,513.00 20.45 111 110 21 PEDERSON 86 106,363 0 106,363 1,256.50 84.65 111 110 22 PEDERSON 86 106,390 0 106,390 1,256.50 604.80 111 110 23 CUSTER 85 19,844 0 19,844 175.91 4.74 111 120 01 S 8 C OIL 75 26,503 0 26,503 4,183.94 5.87 111 120 06 THOMAS 75 25,695 4,869 30,564 4,512.09 6.77 111 120 07 THOMAS 75 25,695 2,643 28,338 4,512.09 6.04 111 120 08 THOMAS 76 64,082 3,782 67,864 4,688.00 17.90 111 120 09 THOMAS 85 320,484 0 320,484 3,790.53 169.59 111 120 11 LINGLE 88 38,057 0 38,057 1,889.71 31.92 111 120 12 LINGLE 88 37,418 0 37,418 1,192.29 31.38 111 120 13 THOMAS 77 11,119 0 11,119 1,177.21 9.45 111 120 14 THOMAS 77 12,068 0 12,068 1,177.21 10.25 111 120 15 THOMAS 77 12,068 0 12,::2 1,177.21 10.25 111 120 16 ARMSTRONG 77 24,138 0 24,138 2,329.29 10.36 111 120 17 THOMAS 77 12,068 0 12,068 1,177.21 10.25 111 120 18 THOMAS 84 70,357 0 70,357 1,177.21 59.77 111 120 19 THOMAS 82 67,908 0 67,908 1,177.21 57.69 111 120 20 THOMAS 82 135,819 2,395 138,214 2,336.83 59.15 111 120 22 THOMAS 75 25,695 7,990 33,685 2,513.00 13.40 111 120 23 THOMAS 75 25,695 2,930 28,625 2,513.00 11.39 111 120 24 THOMAS 75 25,695 41,081 66,776 2,515.51 26.55 111 120 25 THOMAS 76 54,668 13,107 67,775 2,513.00 26.97 111 120 28 WEIR OIL CO 77 27,070 0 27,070 4,183.94 6.47 111 120 29 MUNIZ 78 46,005 7,379 53,384 2,035.53 26.23 111 120 30 THOMAS 81 970 0 970 501.82 1.93 25 ------------------------------------------------------------------------------------------- APN PROPERTY BASE ASSESSED ASSESSED TOTAL VALUE NO. OWNER YEAR LAND VALUE IMPROVEMENTS VALUES ASSESSMENT TO LIEN -------------------"------------------------------------------------------------------------ 111 130 01 . GEOTSCH 87 51,000 0 51,000 792.72 64.34 y 111 130 02 WEIR OIL CO 84 119,066 0 119,066 1.,753.25 67.91 111 130 05 ASHBY 83 56,307 76,179 132,486 1,169.67 113.27 111 130 06 PETERSON 80 7,654 0 7,654 1,177.21 6.50 111 130 07 LINGLE 88 37,922 0 37,922 1,177.21 32.21 111 130 08 LINGLE 88 37,922 0 37,922 1,177.21 32.21 111 130 09 MACKLINGA 86. 73,350 0 73,350 2,354.42 31.15 111 130 10 HUNT BCH CO 80 7,654 0 7,654 1,177.21 6.50 111 130 11 MILLS 80 6,378 0 6,378 1,133.59 5.63 111 130 12 MILLS 80 6,378 0 6,378 1,288.58 4.95 111 130 14 HNTGTN SURF 80 20,323 0 20,323 2,852.93 7.12 111 130 15 RENNER 80 24,686 0 24,686 4,688.00 5.27 111 130 16 HUNT BCH CO 80 58,006 0 58,006 9,376.00 6.19 111 130 17 HUNT BCH CO 80 29,001 0 29,001 4,688.00 6.19 111 130 18 HUNT BCH CO 80 26,541 0 26,541 7,866.97 3.37 111 130 19 HUNT BCH CO 80 12,201 0 12,201 6,529.86 1.87 111 130 20 HUNT BCH CO 80 58,006 0 58,006 5,026.00 11.54 111 130 21 HUNT BCH CO 80 14,522 0 14,522 1,206.24 12.04 111 130 22 HUNT BCH CO 80 17,400 0 17,400 1,256.50 13.85 111 130 23 HUNT BCH CO 80 58,006 0 58,006 5,026.00 11.54 111 130 24 WEIR OIL CO 80 29,604 0 29,604 2,513.00 11.78 111 130 25 WEIR 78 24,609 26,388 50,997 1,532.93 33.27 111 130 26 WEIR OIL CO 83 76,112 0 76,112 1,753.25 43.41 111 140 01 TELFORD 80 14,150 0 .,150 2,329.29 6.07 111 140 02 WEIR 81 3,975 0 ,975 583.58 6.81 111 140 04 WEAVER 85 26,530 0 26,530 1,177.21 22.54 111 140 05 WEAVER 85 26,530 0 26,530 1,177.21 22.54 111 140 06 WEAVER 85 43,380 4,371 47,751 2,329.29 20.50 111 140 07 LINGLE 85 46,079 0 46,079 2,329.29 19.78 111 140 08 WEAVER 85 46,162 10,612 56,774 1,177.21 48.23 111 140 09 LOMA LINDA 80 6,214 0 6,214 1,177.21 5.28 111 140 14 WEAVER 75 52,961 2,362 55,323 2,513.00 22.01 111 140 15 ALBERT 75 25,695 1,317 27,012 2,513.00 10.75 111 140 16 DABNEY 87 37,894 0 37,894 2,513.00 15.08 111 140 18 DAGMAR 80 29,604 0 29,604 2,513.00 11.78 26 ------------------------------------------------------------------------------------------- APN PROPERTY BASE ASSESSED ASSESSED TOTAL VALUE NO. OWNER YEAR LAND VALUE IMPROVEMENTS VALUES ASSESSMENT TO LIEN ------------------------------------------------------------------------------------------- 111 140 19 GUSTAFSON 78 52,537 91,924 144,461 2,513.00 57.49 111 140 20 TEM PROP 80 9,000 0 9,000 502.60 17.91 111 140 21 TEM PROP 80 24,730 0 24,730 1,231.37 20.08 111 140 22 TEM PROP 80 13,500 0 13,500 753.90 17.91 111 140 23 MILLER 88 89,828 0 89,828 2,513.00 35.75 111 140 24 PEDERSON 86 215,947 0 215,947 2,513.00 85.93 111 140 25 MILLER 88 240,347 38,336 278,733 2,513.00 110.92 111 140 26 LEVOY 80 8,814 0 8,814 628.25 14.03 111 140 27 LEVOY 80 6,354 0 6,354 628.25 10.11 111 140 28 HUNT BCH CO 80 12,386 0 12,386 628.25 19.72 111 140 29 HUNT BCH CO 80 12,386 0 12,386 628.25 19.72 111 140 30 HUNT BCH CO 80 11,226 0 11,226 628.25 17.87 111 140 31 HUNT BCH CO 80 12,386 0 12,386 628.25 19.72 111 140 32 HUNT BCH CO 80 55,126 0 55,126 4,523.40 12.19 111 140 33 HUNT BCH CO 82 52,204 3,074 55,278 4,523.40 12.22 111 140 34 HUNT BCH CO 81 55,663 17,059 72,722 628.25 115.75 111 140 35 HUNT BCH CO 81 165,867 0 165,867 1,884.75 88.00 111 140 36 WEIR 80 6,075 0 6,075 583.58 10.41 111 140 37 WEIR 80 12,201 0 12,201 1,177.21 10.36 111 150 13 WEIR 80 12,433 0 12,433 1,177.21 10.56 111 150 15 ANDERSON 77 36,917 2,930 39,847 1,733.97 22.98 111 150 17 SCOTT 76 66,596 6,952 73,548 1,73-4.97 42.42 111 150 18 HUNT BCH CO 81 170,599 0 170,599 1,935.01 88.16 111 150 19 TIPTON 81 55,617 0 55,617 1,281.63 43.40 111 150 20 TIPTON 80 15,170 0 15,170 1,105.72 13.72 111 150 21 BURLINGHAM 80 63,806 0 63,806 904.68 70.53 111 150 22 HUNT BCH Co 82 57,147 0 57,147 376.95 151.60 111 150 23 HUNT BCH CO 82 57,147 0 57,147 351.82 162.43 111 150 24 ELLIOTT 82 17,306 3,543 20,849 980.07 21.27 111 150 25 LINDLEY 87 24,322 0 24,322 2,436.30 9.98 111 150 26 HUNT BCH CO 75 12,725 0 12,725 2,354.42 5.40 111 150 27 HUNT BCH Co 77 29,955 0 29,955 2,354.42 12.72 111 150 28 HUNT BCH CO 75 26,266 0 26,266 4,791.73 5.48 111 150 29 HUNT BCH Co 77 32,798 0 32,798 2,472.79 13.26 111 150 30 RSTGS INVES 75 14,670 0 14,670 3,731.31 3.93 27 ------------------------------------------------------------------------------------------- APN PROPERTY BASE ASSESSED ASSESSED TOTAL VALUE NO. OWNER YEAR LAND VALUE IMPROVEMENTS VALUES ASSESSMENT TO LIEN ------------------------------------------------------------------------------------------- 111 150 31 HUNT BCH CO 81 85,304 0 85,304 2,521.66 33.83 111 150 32 HUNT BCH CO 82 34,918 0 34,918 854.42 40.87 111 150 33 HUNT BCH CO 82 33,721 0 33,721 1,777.60 18.97 111 150 34 KELLER 82 6,288 4,012 10,300 226.17 45.54 111 150 36 BROWN 77 11;543 2,074 13,617 3,670.99 3.71 111 150 37 KELLER 75 15,801 943 16,744 2,435.33 6.88 111 150 38 WORTHY 77 20,773 1,652 22,425 2,619.58 8.56 111 150 39 WEIR OIL CO 77 38,477 34,031 72,508 2,817.77 25.73 111 150 40 HUNT BCH CO 75 21,008 0 21,008 3,018.81 6.96 111 150 44 HUNT BCH CO 80 289,751 0 289,751 1,733.97 167.10 111 150 47 HUNT BCH CO 75 28,396 0 28,396 3,881.50 7.32 159 191 01 HUNT BCH CO 77 126,519 0 126,519 2,563.26 49.36 159 191 02 HUNT BCH CO 75 27,826 0 27,826 2,035.53 13.67 159 191 03 HUNT BCH CO 79 5,748 5,748 11,496 2,638.65 4.36 159 191 04 HNTGTN SIGNAL 75 51,211 5,301 56,512 2,613.52 21.62 159 281 01 HUNT BCH CO 75 29,483 0 29,483 2,930.46 10.06 159 281 02 HUNT BCH CO 75 29,054 0 29,054 4,432.41 6.55 159 281 03 HASSETT 75 7,662 16,894 24,556 1,101.82 22.29 159 281 05 HUNT BCH CO 75 33,552 0 33,552 2,186.31 15.35 159 282 08 HNTGTN SIGNAL 84 81,181 0 81,181 879.55 92.30 159 282 09 HNTGTN SIGNAL 75 9,035 0 9,035 879.55 10.27 159 282 10 GODDARD 77 56,938 0 56,938 1,608.32 35.40 159 282 11 SCOTT 75 50,829 0 50,829 4,950.61 10.27 159 282 12 HUNT BCH CO 80 7,282 0 7,282 779.03 9.35 159 311 02 HUNT BCH CO 75 421,418 0 421,418 20,078.87 20.99 159 311 03 HUNT BCH CO 75 53,768 0 53,768 5,277.30 10.19 159 311 04 HUNT BCH Co 81 41,515 0 41,515 376.95 110.13 159 311 05 HUNT BCH CO 81 41,515 0 41,515 376.95 110.13 159 311 06 HUNT BCH CO 81 54,592 0 54,592 603.12 90.52 159 311 07 HUNT BCH CO 75 14,053 135 14,188 502.60 28.23 159 311 08 ESPITIA 75 14,005 2,310 16,315 653.38 24.97 159 311 10 ESPITIA 75 12,068 0 12,068 653.38 18.47 159 311 11 BRUNO 76 23,613 0 23,613 653.38 36.14 159 311 12 SO PAC RR * 0 0 0 1,155.98 0.00 159 351 01 WSTRN HOMEX ** 0 0 0 12.56 0.00 28 ------------------------------------------------------------------------------------------- APN PROPERTY BASE ASSESSED ASSESSED TOTAL VALUE NO. OWNER YEAR LAND VALUE IMPROVEMENTS VALUES ASSESSMENT TO LIEN ------------------------------------------------------------------------------------------- 159 351 02 WSTRN HOMEX ** 0 0 0 163.34 0.00 159 351 03 FAAS 87 127,500 0 127,500 522.70 243.93 159 351 04 WSTRN HOMEX 88 90,180 249,820 340,000 600.61 566.09 159 351 05 WSTRN HOMEX 88 111,650 193,350 305,000 628.25 485.48 159 351 06 ORLANDO 87 127,500 218,764 346,264 678.51 510.33 159 351 07 WSTRN NOMEX 88 312,380 7,720 320,100 731.28 437.73 159 351 08 WSTRN HOMEX 88 93,235 204,748 297,983 731.28 407.48 159 351 09 WSTRN HOMEX 88 125,000 221,788 346,788 758.93 456.94 159 351 10 THOMAS 87 136,170 261,528 397,698 914.73 434.77 159 351 11 STEDD 87 127,500 225,454 352,954 706.15 499.83 159 351 12 WSTRN HOMEX 88 94,630 245,370 340,000 706.15 481.48 159 351 13 ENGLE 87 127,500 196,195 323,695 706.15 458.39 159 351 14 BUSCHE 87 124,440 0 124,440 731.28 170.17 159 351 15 WSTRN HOMEX 88 101,850 238,150 340,000 841.86 403.87 159 351 16 WSTRN HOMEX 88 123,080 161,920 285,000 758.93 375.53 159 351 17 FAAS 87 127,500 0 127,500 628.25 202.94 159 351 18 WSTRN HOMEX ** 0 0 0 188.47 0.00 159 352 01 GALE 87 106,375 198,204 304,579 809.19 376.40 159 352 02 BIOXIN 87 108,446 165,933 274,379 678.51 404.38 159 352 03 CRACCHIOLO 87 106,090 178,489 284,579 809.19 351.68 159 352 04 MCDEVITT 88 165,450 233,550 399,000 861.96 462.90 159 352 05 KUBELKA 86 171,666 472,205 643,871 3,030.68 212.45 159 352 06 CHAPMAN 87 163,200 0 163,200 1,829.46 89.21 159 352 07 WATSON 88 119,646 153,088 272,734 731.28 372.95 159 352 08 DAHL 88 114,300 225,700 340,000 784.06 433.64 159 352 09 EDWARDS 87 132,436 182,743 315,179 784.06 401.98 159 352 10 ALDOROTY 87 123,134 185,745 308,879 809.19 381.71 159 352 11 WALTERS 87 136,812 178,367 315,179 861.96 365.65 159 352 12 DUNCAN 88 136,170 201,302 337,472 992.63 339.98 159 352 13 RABOY 87 113,107 166,372 279,479 731.28 382.18 159 352 14 WSTRN HOMEX 88 130,716 223,784 354,500 653.38 542.56 159 352 15 MCDEVITT 88 145,D80 257,920 403,000 522.70 771.00 159 352 16 MCDEVITT 88 155,230 233,770 389,000 575.48 675.96 159 352 17 MANDIC 86 166,464 0 166,464 2,691.42 61.85 159 352 18 HILL 87 158,100 0 158,100 2,299.39 68.76 29 ------------------------------------------------------------------------------------------- APN PROPERTY BASE ASSESSED ASSESSED TOTAL VALUE NO. OWNER YEAR LAND VALUE IMPROVEMENTS VALUES ASSESSMENT TO LIEN ------------------------------------------------------------------------------------------- 159 352 19 FISHER 87 51,550 79,829 131,379 653.38 201.08 159 352 20 PLUNKETT 87 121,380 78,206 199,586 967.50 206.29 159 352 21 WSTRN NOMEX ** 0 0 0 155.81 0.00 ------------ ------------ ------------ -------------- ------- TOTAL S26,334,488 $11,607,689 $37,942,177 $1,774,511.35 21.38 ------------ ------------ ------------ -------------- ------- ------------ ------------ ------------ -------------- ------- *PRIOR TO 1977 **COMMON AREA EASEMENTS 30 Environmental Review. The Project is subject to the provisions of the California Environmental Quality Act (CEQA), Public Resources Code, Section 21000 et sea. On November 23, 1988, the City Council of the City of Huntington Beach adopted a Negative Declaration under the Act to the effect that "the Project will not have a significant effect on the environment". A Notice of Determination was filed in the Offices of the County Clerk on November 28, 1988, and the statute of limitations for persons seeking to challenge the City's approval of the Negative Declaration will have expired on December 28, 1988. Property Tax Delinquencies. The following tax delinquency information was compiled during the week ending October 26, 1988 from Orange County public records. While all efforts have been made to be as thorough as possible no warranties are given concerning the accuracy or completeness of this information. SUMMARY OF TAX DELINQUENCIES (Week Ending October 26, 1988) Number Parcels to be Assessed 381 Parcels delinquent for 1987-88, Only 4 Parcels Delinquent Prior Years 7 Total Parcels Delinquent 11 Total Assessment of Delinquent Parcels $11,077.10 Percentage of Total Assessment Represented by Delinquent Parcels 0.62% * Information concerning the first installment of 1988-89 taxes are unavailable. 31 CITY OF HUNTINGTON BEACH ASSESSMENT DISTRICT NO. 88-1 (RESERVOIR HILL) Tax Delinquencies (Week Ending October 26, 1988) Assessor's Assessment Fiscal Prior Years' Parcel No. Amount Year Delinauent Tax 110-192-16 $ 158.32 85/86 $ 80.26 110-193-02 158.32 85/86 80.26 110-212-06 160.83 85/86/87 233.68 110-212-16 160.83 85/86/87 576.48 110-222-29 183.45 86/87 92.29 110-222-30 183.45 86/87 92.29 111-110-21 1,256.50 87/88 1,357.20 111-110-22 1,256.50 87/88 1,357.55 111-120-01 4,183.94 86/87 742.02 111-140-24 2,513.00 87/88 2,719.17 159-352-11 861.96 87/88 200.56 TOTAL $11,077.10 $7,531.76 ---------- ---------- ---------- ---------- Source: Orange County Public Records. The Property Owners. The following specific information regarding ownership of assessed parcels in the District has been provided by the City. This information is included because it may be relevant to an informed evaluation of the Project and the security for the Bonds. However, no assurance can be given that ownership of one or more of such parcels will not be changed. Additionally, certain parcels within.the District and which are subject to assessment are subject to leases which permit the lessee to utilize the leasehold property for oil and gas extraction. The leases have indefinite terms and terminate only when abandoned by the lessee or when the extration of oil and gas is no longer profitable for the lessee in the determination of the lessee. Under the terms of these leases, the property owner/lessor is responsible for the payment of all assessments on the leasehold properties. The Huntington Beach Company (See THE ASSESSMENT DISTRICT - The Huntington Beach Company (HBCO)) is the property owner/lessor of all properties subject to these leases. As a result of the existing oil leases, much of the property within the District has been used for oil production. As a result of this use, there exists the possibility that such property may contain residue from the oil operations. Prior to approval of development plans, the City requires certification from the property owner that no such residue is present. 32 Currently there are no plans by any of the owners for development and it is unknown what may occur in the future. This information should not be construed to suggest that the Bonds or the assessments securing the Bonds are personal obligations of the property owners or the developers. Property Owner Percent of Assessment t The Huntington Beach Co. 70% All Others 30% The Huntington Beach Company (HBCO). The following information about the Huntington Beach Company was provided by HBCO. The Huntington Beach Company commenced operations in 1903 as a real estate and agricultural concern with holdings and operations centered in what became the City of Huntington Beach in Orange County. In 1919, HBCO entered into an oil and gas drilling lease with Chevron, which soon discovered oil on its leasehold interest and subsequently acquired more than 60% of HBCO's Common Stock. For the next four decades, HBCO profited primarily from oil and gas operations. With the maturing of its oil fields, HBCO again concentrated on real estate development, its present primary focus. Development by HBCO is concentrated mainly in Southern California. HBCO is a wholly-owned subsidiary of Chevron Corporation. Encyclopedia Lots. In 1914 and 1915, the Encyclopedia Americana gave away a "coastal lot" in Huntington Beach with every set of encyclopedias it sold. These lots, known as "Encyclopedia Lots", are usually distinguished by their odd size, approximately 25' x 100'. Several of these lots are within the District (about 113 lots with aggregate assessments of approximately $18,724.36), but because of their size, residential development of such lots is prohibited by City ordinance unless consolidated with other similar lots to form estate- size lots (approximately 6 encyclopedia lots or a total of 15,000 square feet). I 33 THE CITY Organization. The City of Huntington Beach, located in the County of Orange, was incorporated in 1909, and operates under a Charter adopted in 1937 as amended and restated in 1982 and in 1984. The Charter provides for a Council-Administrator form of government. Seven council members, including a mayor, are elected at large. Currently, the City is comprised of the following members who serve four-year terms: Term Agency Member Expires Occupation Wes Bannister, Mayor 1990 Insurance Broker Tom Mays, Mayor Pro Tern 1990 System Analyst John Erskine 1990 Building Industry Director Peter Green 1992 Professor Don MacAllister 1992 Computer Consultant Jim Silva 1992 High School Teacher Grace Winchell 1990 College Counselor The professional staff of the City presently includes the following members: Paul E. Cook is the City Administrator. Immediately prior to his appointment to this position, Mr. Cook served as Director of Public Works for the City for eight years. Mr. Cook graduated from the University of Maine with a Bachelor of Science degree in Civil Engineering, and from the University of Southern California with a Masters Degree in Public Administration. Robert Franz is Deputy City Administrator of the City. Prior to his appointment, Mr. Franz served as the Assistant City Administrator of the City of Montebello for 11 years. Mr. Franz graduated from Occidental College with a Bachelor of Arts degree in Mathematics. He also received a Masters Degree in Business Administration from the University of Southern California. Louis F. Sandoval is the Public Works Director of the City. Prior to his appointment to this position, Mr. Sandoval served as Public Services Director for the cities of Whittier and Beverly Hills. Mr. Sandoval graduated from the University of Southern California with a Bachelor of Science degree in Public Administration. Lester G. Evans is the City Engineer. Prior to his appointment he served as the City Engineer for the City of Carlsbad, California for three years and as Director of Public Works/City Engineer for the City of Rialto for six years. Mr. Evans graduated from Claremeont McKenna College with a Bachelor of Arts Degree, from Stanford University with a Bachelor of Science Degree in Civil Engineering and from the University of California at Riverside with a Masters Degree in Public Administration. 34 Assessed Valuation. The following table lists the City's assessed valuation for the past five years. CITY OF HUNTINGTON BEACH ASSESSED VALUATION 1985/86 TO 1988/89 Assessed Year Valuation 1985/86 $7,445,307,033 1986/87 8,000,260,977 1987/88 8,556,563,390 1988/89 The table on the following page shows the City's direct and overlapping debt as of December 7, 1988. 35 CITY OF HUNTINGTON BEACH 1988-89 ASSESSED VALUATION $8,580,201,414 (after deducting $201,634,519 redevelopment tax allocation increment) Direct and Overlannina Bonded Debt % Annlicable/ Debt 12/1/88 Orange County 7.883 $ 138,740 Orange County Building Authorities 7.883 8,436,839 Orange County Flood Control District 7.885 690,726 Metropolitan Water District 1.599 8,402,105 Municipal Water Dist. of Orange Co. Water Facilities Corp. 12.400 8,537,400 Orange County Sanitation Dists. #1, 2 & 3 Certificates of Participation 5.253 6,072,468 Orange County Sanitation District #3 11.168 63,545 Orange County Sanitation District #11 99.943 212,878 Coast Community College Dist. Authority 30.138 6,291,307 Los Alamitos Unified School District 1.698 12,244 Huntington Beach Union High School Dist. 70.196 1,389,880 Fountain Valley School District 30.642 1,401,871 Huntington Beach School District 96.760 1,209,500 Ocean View School District 93.123 2.123,204 City of Huntington Beach 100.000 2,615,000 City of Huntington Beach Bldg. Authorities 100.000 23,130,0002 TOTAL GROSS DIRECT AND OVERLAPPING BONDED DEBT $70,728,7073 Less: MWDOC Water Facilities Cor. (100% self-supporting) 8,537,400 Orange Co. Sanitation Dist. #3 (100% self-supporting) 63.545 TOTAL NET DIRECT AND OVERLAPPING BONDED DEBT $62,127,762 Ratios to 1988-89 Assessed Valuation Direct Debt ($25,745,000) 0.30% Total Gross Debt 0.82% Total Net Debt 0.72% SHARE OF AUTHORIZED AND UNSOLD BONDS Metropolitan Water District $4,237,350 Fountain Valley School District $1,506,054 Ocean View School District $1,732,088 STATE SCHOOL BUILDING AID REPAYABLE AS OF 6/30/88: $30,901,907 YN: ($200) 1. Based on 1987-88 ratios. 2. Excludes 1915 Act bonds to be sold. 3. Excludes tax and revenue anticipation notes, revenue, mortgage revenue and tax allocation bonds and non-bonded capital lease obligations. 36 CONCLUDING INFORMATION Tax Exemption. In the opinion of Brown & Diven, Bond Counsel, under existing statutes, regulations, rulings and court decisions, the interest on the Bonds is excluded from gross income for federal income tax purposes pursuant to Section 103(a) of the Internal Revenue Code of 1986, as amended (the "Code"). In addition, Bond Counsel is of the opinion that the Bonds are not "private activity bonds" within the meaning of Section 141(a) of the Code and, therefore, the interest on the Bonds is not a specific item of tax preference for purposes of the Code's alternative minimum tax provisions, except to the extent provided in the following sentence. Interest on the Bonds received by a corporation will be included in book income and adjusted current earnings for purposes of computing its alternative minimum tax liability. Bond Counsel is further of the opinion that the interest on the Bonds is exempt from personal income taxes of the State of California under present state law. Bond Counsel's opinion as to the exclusion from gross income of interest on the Bonds is subject to the condition that the District comply with all requirements of the Internal Revenue Codes of 1986, as amended (the "Code"), that must be satisfied subsequent to the issuance of the Bonds to assure that interest of the Bonds will not become includable in gross income for federal income tax purposes. Failure to comply with such requirements could cause interest on the Bonds to be included in gross income for federal income tax purposes retroactive to the date of issuance of the Bonds. The District has covenanted to comply with all such requirements. Bond Counsel has not undertaken to determine (or to inform any person) whether any actions taken (or not taken) or events occurring after the date of issuance of the Bonds may affect the tax status of interest on the Bonds. Although Bond Counsel has rendered an opinion that interest on the Bonds is excluded from gross income for federal income tax purposes, the accrual or receipt of interest on the Bonds may otherwise affect the federal income tax liability of the recipient. The extent of these other tax consequences will depend upon the recipient's particular tax status and other items of income or deductions. Bond Counsel expresses no opinion regarding any such consequences. Accordingly, all potential purchasers should consult their tax advisors before purchasing any of the Bonds. Litigation. According to the City, there is no known controversy or litigation of any nature now pending to restrain or enjoin the issuance, sale, execution or delivery of the Bonds or in any way contesting or affecting the validity of the Bonds, the proceedings of the City taken with respect to the issuance or sale thereof, the existence or powers of the City or the title of any officer of the City Council to his/her respective position. No Rating. The City has not, and does not contemplate making, application to any rating agency for the assignment of a rating to the Bonds. 37 Legal Opinion. All proceedings in connection with the issuance of the Bonds are subject to the approval of Brown & Diven, Rancho Santa Fe, California, Bond Counsel for the City in connection with the Assessment District Project. The unqualified opinion of Brown & Diven approving the validity of the Bonds will be printed on each Bond. Underwriting. Stone and Youngberg, the Underwriter, has purchased the Bonds from the City at an aggregate discount of $ from the total par value of the Bonds as set forth on the cover page of this Preliminary Official Statement. The public offering prices may be changed from time to time by the Underwriter. The Underwriter may offer and sell Bonds to certain dealers and others at prices lower than the offering price stated on the cover page hereof. 38 CITY OF HUNTINGTON BEACH (Orange County, California) CITY COUNCIL Wes Bannister, Mayor Tom Mays, Mayor Pro Tern John Erskine, Councilmember Peter Green, Councilmember Don MacAllister, Councilmember Jim Silva, Councilmember Grace Winchell, Councilmember CITY STAFF Paul Cook, City Administrator Robert J. Franz, Deputy City Admin./Chief of Admin. Services Louis F. Sandoval, Public Works Director Les Evans, City Engineer BOND COUNSEL Brown & Diven Rancho Santa Fe, California ASSESSMENT ENGINEER Black & Veatch Santa Ana, California FINANCIAL ADVISOR Fieldman, Rolapp & Associates Irvine, California FISCAL AGENT/REGISTRAR/PAYING AGENT/TRANSFER AGENT Bank of America National Trust and Savings Los Angeles, California i TABLE OF CONTENTS Page I. INTRODUCTION..................................................................................................................1 II. REGIONAL LOCATION MAP.......................................................................................3 I1I. VICINITY MAP..............:.......................................................................................................4 IV. THE BONDS Purposeof the Bonds...........................................................................................................5 Authorityfor Issuance........................................................................................................5 Descriptionof the Bonds...................................................................................................5 Redemptionof Bonds..........................................................................................................5 RefundingBonds...................................................................................................................6 Registration..............................................................................................................................6 V. SECURITY FOR THE BONDS Limited Obligation of the City Upon Delinquency.............................................7 ReserveFund...........................................................................................................................7 Covenant to Commence Superior Court Foreclosure...........................................8 Covenants of the City Regarding Arbitrage andRebate.............................................................................................................................8 Priorityof Assessment Lien.............................................................................................9 Special Assessments —Article XIIIA and XIIIB of the California Constitution...................................................................................................9 Estimated Annual Debt Service....................................................................................10 VI. BONDOWNERS' RISKS General......................................................................................................................................11 Bankruptcy and Foreclosure..........................................................................................11 Factors Which May Affect Land Development....................................................12 Limited City Obligation Upon Delinquency.........................................................12 Direct and Overlapping Debt..........................:.............................................................12 VII. THE PROJECT Descriptionof Work...........................................................................................................13 Estimated Projects Costs...................................................................................................13 Method and Formula of Assessment..........................................................................14 Summary of Assessment Proceedings.........................................................................15 Special Assessment Investigation, Limitation and MajorityProtest Act of 1931......................................................................................16 Disposition of Surplus Funds........................................................................................16 VIII. THE ASSESSMENT DISTRICT Existing Zoning and Land Use.....................................................................................17 Agencies Which Provide Public Utilities.................................................................17 Access to Parcels to be Assessed..................................................................................18 AssessmentRoll ...................................................................................................................18 Environmental Review......................................................................................................31 Property Tax Delinquencies...........................................................................................31 TheProperty Owners .......................................................................................................32 The Huntington Beach Company.................................................................................33 EncyclopediaLots................................................................................................................33 ii $1,653,904.59 CITY OF HUNTINGTON BEACH (Orange County, California) ASSESSMENT DISTRICT NO. 88-1 (RESERVOIR HILL) INTRODUCTION This Introduction does not purport to describe in detail all pertinent matters relating to the Bonds, the Project, the District, the Proposed Development and Property Ownership. Reference is hereby made to the entire Official Statement including the cover page and the Appendices, if any, for further information in connection herewith. This Official Statement describes the City of Huntington Beach, Orange County, California (the "City", the "County", and "State", respectively), Assessment District No. 88-1 (Resevoir Hill) (the "District") and provides information material to the sale of $1,653,904.59 Limited Obligation Improvement Bonds (the 'Bonds") proposed to be issued by the City pursuant to the Improvement Bond Act of 1915 (the "1915 Act" or the "Bond Law") and pursuant to assessment proceedings conducted in accordance with the Municipal Improvement Act of 1913 (the "1913 Act"). The District lies predominantly in an area of the City of Huntington Beach, California, known as the "Reservoir Hill" area. The District is bounded on the north by Ellis Avenue, on the east by Huntington Street, on the South by Yorktown, and on the west by a line parallel to and approximately 1,000 feet west of Edwards Street. The District is situated in the southwest portion of the City. The District consists of 303 assessed parcels (the "Assessed Parcels") with an actual assessed acreage of approximately 557.638 acres. Resevoir Hill area consists predominantly of currently undeveloped properties which are located in an area of the City which lies generally above elevation 60. Proceeds from the Bonds will be used to fund a public improvement project (the "Project") generally consisting of approximately 12,740 lineal feet of water mains and appurtenances within the boundaries of the District. According to the City, the Orange County Assessor reports that the 1988-89 assessed valuation of all properties assessed under these proceedings totals $32,423,309 ($23,235,173 land, $9,188,136 improvements), which is approximately 19.60 times greater than the aggregate assessment. For a discussion of assessed valuation, your attention is directed to "The District" section herein. 1 I The Bonds are issued upon and secured by the unpaid assessments levied in the improvement proceedings, and said unpaid assessments together with interest thereon constitute a trust fund for the redemption and payment of the principal of the Bonds and the interest thereon. All the Bonds are also secured by the moneys in the Redemption Fund created pursuant to the assessment proceedings and by the unpaid assessments levied to provide for payment of said construction and acquisition of improvements, and, including principal and interest, are payable exclusively out of the Redemption Fund. The unpaid assessments represent fixed liens on the lots and parcels assessed. They do not, however, constitute a personal indebtedness of the respective owners of said lots and parcels. Under the provisions of the Improvement Bond Act of 1915, installments of principal and interest sufficient to meet annual debt service on the Bonds are to be included on the regular county tax bills sent to owners of property against which there are unpaid assessments. These annual installments are to be paid into a redemption fund ("Redemption Fund") which will be held by the Fiscal Agent and will be used to pay Bond principal and interest as they become due. The installments billed against each property each year represent a pro rata share of the total principal and interest coming due that year, based on the percentage which the unpaid assessment against that property bears to the total of unpaid assessments levied to repay the Bonds. If a delinquency occurs in the payment of any assessment installment, the City has the duty to transfer an amount equal to the delinquent installment from the Reserve Fund to the Redemption Fund. THE CITY HAS ELECTED IN THE PROCEEDINGS NOT TO BE OBLIGATED TO ADVANCE AVAILABLE FUNDS FROM THE CITY'S TREASURY IN THE EVENT OF A REDEMPTION FUND DEFICIENCY; PROVIDED, HOWEVER, THAT ITS ELECTION SHALL NOT PREVENT THE CITY FROM, IN ITS SOLE DISCRETION, SO ADVANCING FUNDS FOR SUCH PURPOSE AS OTHERWISE PROVIDED IN THE 1915 ACT. To provide funds which can be advanced to the Redemption Fund for payment of the Bonds and the interest thereon as a result of any delinquent assessment installments, the City will establish a special reserve fund (the "Reserve Fund") from Bond proceeds in the amount of six percent (6%) of the aggregate principal amount of the Bonds. Additionally, subject to City advances to the Reserve Fund, the City will covenant to initiate Superior Court foreclosure in the event of a delinquency within 150 days following such delinquency and to prosecute diligently to completion the foreclosure of each and every delinquent assessment installment. The right of redemption under this procedure is limited as opposed to the five year period under a tax sale. r The Bonds are not general obligations of the City, of the State of California, or of _ any other political subdivision of the State, and neither the City nor the State, nor any political subdivision of the State, has pledged its full faith and credit for the payment thereof. For a more complete description see the subsections herein entitled "Security of the Bonds," "Reserve Fund" and "Covenant to Commence Superior Court Foreclosure" as described in the section entitled "The Bonds" herein. The City has caused the preparation of this Official Statement; however, information contained herein does not purport to be comprehensive or definitive. All references to the Bonds and the Project are qualified in their entirety by reference to the Engineer's Report and to the City's resolutions setting forth the terms and description thereof. 2 �T i r F•N COUNT' I � I I L � I C t C • � t Thousand Oaks n Pasadena San Bernardino tD i HOIIyw / to SAN S�RNAROINO COUN' 1 60 J /IIV 1tsIOE CovNTV = Los Angel — I Riverside' !t 5� ORANGE COUNTY Santa C, 7-ong na= �5 B exmm ^'e Newport Beach Cit of Hunting n Bea h Laguna Beach O Cana Point RIVERSIDE COUNT, Santa San Clemente SAN OIEGO COVN-' Catalina 1S1anC C 7E e Oceanside� .�, ?e =scondiao Del Mar i \ I -San Dieg MEXICO 3 RE GI ONA! L.00fi i 1ON MAR _i . a rn . W Z •� Q�� a Z d �O .j BOLSA AVE Y O ARGOSY m ; Mc FA AVE r EDING R AV CENTER DRIVE ��.. < U s MHEI L AVE r O H •�' o 7.WARN R a AVE _ SLAT AVE O ' i O ; o i J I A m TALBERT AVE j 1 0 IAI • \vim • I rn_ AVE II c GARFILED� AVE YORK OWN AVE I N ACAM AVE uj ccLL W 1N A L1 AVE _ DI < _ OW J O O - ^ O m ATL NTA AVE¢ _ - I `� O < U OO n cc ca _J H LTON AVE Z q CITY OF Lu BANNING AVE HUNTI NGTON BEACH . 1, . j V/C/A//TY /WWIP leE6E,PV01-12- N/LL A1-7 x# 88-/ I 4 � l THE BONDS I Purpose of the Bonds. The Bonds are authorized for the purpose of providing funds for water system improvements to benefit an area of approximately 588.10 net assessable acres. The improvements include the construction of certain water system improvements, together with appurtenances. The specific improvements to be made with the proceeds from the sale of the Bonds are described in the Resolution of Intention (define hereinbelow) and in "The Project" section of this Official Statement. Authority for Issuance. The acquisition and improvement proceedings for the District have been conducted pursuant to Division 12 of the Streets and Highways Code of the State of California (the "Municipal Improvement Act of 1913") and the Resolution of Intention No. 59-26, adopted by the City Council of the City of Huntington Beach. The Bonds will be issued pursuant to the Bond Indenture (the "Indenture") dated December 19, 1988 approved by the City Council. The Bonds are secured by the unpaid assessments levied against private property in the District in accordance with the provisions of the 1913 Act and will be issued pursuant to Division 10 of the Streets and Highways Code (the "Bond Law"). Description of the Bonds. The Bonds will be issued in the aggregate principal amount of $1,653,904.59 and will be dated January 17, 1989. The Bonds will be issued as fully registered serial Bonds in denominations of any multiple of $5,000 each, except one Bond due in 1990, which will include the amount by which the principal amount of the issue exceeds the largest integral multiple of $5,000 contained therein. Interest on the Bonds shall be payable on March 2 and September 2 of each year commencing March 2, 1990. Principal of and premiums, if any, on the Bonds are payable upon presentation by the registered owner or his duly authorized representative at Bank of America National Trust and Savings, San Francisco, California, Fiscal Agent. Interest shall be paid by check or draft of the Fiscal Agent mailed to the registered owners (as shown on the registration books kept by the Fiscal Agent) as of the 15th day of the month immediately preceding the interest payment date. Redemption of Bonds. Any Bond may be called for redemption prior to maturity at the option of the City Treasurer in increments of $5,000 on any March 2 or September 2 upon payment of the principal amount, together with a premium of three percent (3%) of such principal amount and accrued interest on such principal amount to the date of redemption. No interest will accrue on the redeemed portion of a Bond beyond the March 2 or September 2 on which said Bond is called for redemption. Notice of redemption must be given by personal service or registered mail or certified mail to the registered owners at the registered owner's address as it appears on the registration books of the Registrar at least 30 days prior to the redemption date. The determination as to which Bond or Bonds are to be called will be made in accordance with Part 11.1 of the Bond Law. If less than an entire Bond is redeemed, the unredeemed portion shall be reissued to the registered owner thereof. Subdivision, development or sale of parcels within the District could result in 5 the early discharge of assessment liens. Such early discharge will result in redemption of Bonds prior to their stated maturities. Refunding Bonds. Pursuant to the "Refunding Act of 1984 for 1915 Improvement Act Bonds", Division 11.5 of the Streets and Highways Code of the State of California, the City may issue refunding bonds for the purpose of redeeming the Bonds. The City may issue and sell refunding bonds without giving notice to and conducting a hearing for the owners of K property in the District, or giving notice to the holders of the Bonds if the governing body of the City finds that (i) each estimated annual installment of principal and interest on the reassessment to secure the refunding bonds is less than the corresponding annual installment of principal and interest on the original assessment, (ii) the number of years to maturity of all refunding bonds is no more than the number of years to the last maturity of the Bonds being refunded, and (iii) the amounts of any reassessments are computed by reducing each original assessment by the same percentage. Upon issuing refunding bonds, the governing body of the City could require that the Bonds be exchanged for refunding bonds on any basis which the governing body determines is for the benefit of the City if the Bondholders consent to the exchange. As an alternative to exchanging the refunding bonds for the Bonds, the City could sell the refunding bonds and utilize the proceeds to pay the principal of and interest and redemption premium, if any, on the Bonds as they become due, or advance the maturity of the Bonds and pay the principal of and interest and redemption premium thereon. Registration. The Bonds will be issued only as fully registered serial Bonds. Interest shall be payable to the registered owner at the owner's address as it appears on the registration books of the Fiscal Agent, or at such address as may have been filed with the Fiscal Agent for that purpose, as of the 15th day of the month immediately preceding each interest payment date. The Bonds will be transferable by the registered owner or by the registered owner's attorney, duly authorized in writing, at the office of the Fiscal Agent, subject to the terms and conditions provided in the Fiscal Agent's system for the registration for registered debt obligations, including the payment of certain charges, if any, upon surrender and cancellation. Upon such transfer, a new registered Bond or Bonds, of any authorized denomination or denominations of the same maturity, for the same aggregate principal amount, will be issued to the Transferee in exchange therefor. 6 SECURITY FOR THE BONDS The Bonds are issued upon and secured by the unpaid assessments levied in the improvement proceedings, and such unpaid assessments together with interest thereon constitute a trust fund for the redemption and payment of the principal of and interest on the Bonds. All of the Bonds are secured by the moneys in the Redemption Fund and the Reserve Fund created pursuant to the assessment proceedings and by the unpaid assessments levied against private property within the District to provide for payment of said acquisition and construction of improvements. Principal of and interest on the Bonds are payable exclusively out of the Redemption Fund. The Bonds are not general obligations of the City and neither the faith and credit nor the taxing power of the City, the State of California or any of its political subdivisions is pledged to the payment of the Bonds. The unpaid assessments constitute fixed liens on the lots and parcels assessed, and do not constitute a personal indebtedness of the respective owners of said lots and parcels; accordingly, in the event of delinquency proceedings may only be had against the real property securing such delinquency. There is no assurance that the owners will be financially able to pay the assessment installments or that they will pay such installments even though financially able to do so. The unpaid assessments will be collected in annual installments, together with interest on the declining balances, on the tax roll on which general taxes on real property are collected and are payable, and will become delinquent at the same time and in the same proportionate amounts and bear the same penalties and interest after delinquency as do said general taxes. The properties upon which the assessments were levied are subject to the same provisions for sale and redemption as are properties for nonpayment of general taxes; however, a shorter period of redemption may apply under provisions of state law. Limited Obligation of the City Upon Delinquency. If a delinquency occurs in the payment of any assessment installment, the City has the duty to transfer the amount of such delinquent installment from the Reserve Fund into the Redemption Fund. If there are additional delinquencies, after depletion of the Reserve Fund, the City has no duty to transfer into the Redemption Fund the amount of the delinquency out of any available funds of the City. Bondowners should not rely upon the City to advance monies to the Redemption Fund should the Reserve Fund ever be depleted. Reserve Fund. The Bond Indenture authorizing and providing for the issuance of Bonds, pursuant to the Improvement Bond Act of 1915, for the District will provide for the creation of a special reserve fund ("Reserve Fund") to provide available funds, to the extent of such Reserve Fund, from which the City shall make payment of the amount of any delinquent assessments levied in the proceedings and interest thereon, for transfer into the Redemption Fund for the Bonds. Payments from such Reserve Fund shall be deemed an advance to be reimbursed and deposited in the Reserve Fund from the proceeds of redemption or sale of the properties with respect to which payment of delinquent assessments and interest thereon was paid. 7 I The Reserve Fund shall be held and maintained by the Fiscal Agent as a separate trust account distinct from all other funds of the City. Upon receipt of the proceeds of sale of the Bonds, an amount equal to six percent (6%) of the aggregate principal amount of Bonds shall be deposited in the Reserve Fund. Covenant To Commence Superior Court Foreclosure. The Bond Law provides that in the event any assessment or installment thereof or any interest thereon is not paid when due, the City may order the institution of an action in the Superior Court of the State of California to foreclose the lien of the unpaid assessment as authorized in Part 14 of Division 10 of the Streets and Highways Code of the State of California. In such action, the real property subject to the unpaid assessment may be sold at a court foreclosure sale. Such court foreclosure sale procedure is not mandatory. However, the City will covenant with the registered Bond owners, that court foreclosure proceedings shall be commenced within 150 days following the date of such delinquency and that it will be diligently prosecuted to final judgment and sale. The City may, however, defer foreclosure proceedings if the City advances funds to the Reserve Fund to maintain the Reserve Fund at its original level. Effective July 1, 1983, a judgment debtor (property owner) has at least 140 days from the date of service of the notice of levy to redeem the property to be sold. If a property owner fails to so redeem and the property is sold, his or her only remedy is an action to set aside the sale which must be brought within six (6) months of the date of sale. If, as a result of such an action, a foreclosure sale, is set aside, the judgment is revised and the judgment creditor is entitled to .interest on the revised judgment as if the sale had not been made. (Section 701.680 of the Code of Civil Procedure of the State of California.) The constitutionality of the aforementioned legislation (which repeals the one-year redemption period) has not been tested and there can be no assurance that, if tested, such legislation will be upheld. Foreclosure proceedings may be deferred if the City advances funds to the Reserve Fund to keep said Fund continually at the level as initially funded (six percent [6%] of the principal amount of the Bonds originally issued), less adjustments for Bonds redeemed prior to maturity, as set forth in the Covenant for Superior Court Foreclosure. IN THE EVENT SUCH SUPERIOR COURT FORECLOSURE OR FORECLOSURES ARE NECESSARY, THERE MAY BE DELAYS IN PAYMENTS TO BONDHOLDERS PENDING PROSECUTION OF THE FORECLOSURE PROCEEDINGS . TO COMPLETION AND RECEIPT BY THE CITY OF THE PROCEEDS OF THE FORECLOSURE SALE; IT IS ALSO POSSIBLE THAT NO BID WOULD BE RECEIVED AT THE FORECLOSURE SALE. Covenants of the City Regarding Arbitrage and Rebate. The City covenants and agrees to take no action which, in the opinion of Bond Counsel, would result in interest on the Bonds becoming includable in gross income under federal income tax law. The City represents and covenants in the Bond Indenture, for the benefit of the Bondowners, that it will comply with all applicable requirements of the Internal Revenue Code of 1986, as amended (the "Code"), together with any amendments thereto and regulations applicable thereto necessary to preserve the exclusion from gross income for purposes of federal income taxation of interest of the Bonds. 8 r Priority of Assessment Lien. The assessment (and any re-assessment) and each installment thereof and any interest and penalties thereon constitute a lien against the lots and parcels of land on which they were imposed until the same are paid. Such lien is subordinate to all fixed special assessment liens previously imposed upon the same property, but has priority over all private liens and over all fixed special assessment liens which may thereafter be created against the property. Such lien is co-equal with and independent of the lien for general taxes. The Assessment Engineer and the City report that there are no outstanding fixed special assessment liens previously levied on property located within the District. Special Assessments - Article XIIIA and XIIIB of the California Constitution. On July 2, 1979, the Fifth District Court of Appeal (94 Cal. App. 3d 974) rendered a 3-0 decision in the case of County of Fresno vs Malmstrom that determined that special assessments are not subject to the limitations of Article XIIIA (Proposition 13). The Court held the one percent tax limitation imposed by California Constitution Article XIIIA on ad valorem taxes does not apply to special assessments levied pursuant to Streets and Highways Code, Sections 5000 et seq. and 10000 et seq., the Improvement Act of 1911 and the Municipal Improvement Act of 1913. The Court further held that because special assessments pursuant to such acts are not within the definition of "special taxes" in Article XIIIA, the Constitution does not require the levy of assessments and the issuance of Bonds to be approved by a two-thirds vote of the qualified electors of the District. On September 12, 1979, the California Supreme Court refused to hear an appeal of the lower court's decision. On December 17, 1980, the Third District Court of Appeal (113 Cal. App. 3d 443) rendered a 3-0 decision in the case of County of Placer v. Corin that determined that special assessments are not subject to the limitation of Article XIIIB (Proposition 4, the Gann appropriations limit). The Court held that the definition of "proceeds of taxes", imposed by California Constitution Article XIIIB does not apply to special assessments and Improvement Bonds issued pursuant to Streets and Highways Code, Sections 8500 et seq., and 10000 et seq., the Improvement Bond Act of 1915 and the Municipal Improvement Act of 1913. The decision of the Court was not appealed. 9 The following table sets forth the schedule of annual debt service of the Bonds: CITY OF HUNTINGTON BEACH ASSESSMENT DISTRICT NO. 88-1 (RESERVOIR HILL) TABLE OF DEBT SERVICE $1,653,904.59 Maturing September 2 Principal Interest Debt Service 1990 $ 3,904.59 $ 210,606.17 $ 214,510.76 1991 40,000.00 129,350.00 169,350.00 1992 45,000.00 126,670.00 171,670.00 1993 50,000.00 123,565.00 173,565.00 1994 50,000.00 120,065.00 170,065.00 1995 55,000.00 116,465.00 171,465.00 1996 60,000.00 112,395.00 172,395.00 1997 65,000.00 107,895.00 172,895.00 1998 70,000.00 102,955.00 172,955.00 1999 75,000.00 97,565.00 172,565.00 2000 80,000.00 91,715.00 171,715.00 2001 85,000.00 85,395.00 170,395.00 2002 90,000.00 78,680.60 168,680.00 2003 100,000.00 71,480.00 171,480.00 2004 105,000.00 63,480.00 168,480.00 2005 115,000.00 55,080.00 170,080.00 2006 125,000.00 45,765.00 170,765.00 2007 135,000.00 35,640.00 170,640.00 2008 145,000.00 24,705.00 169,705.00 2009 160,000.00 12,960.00 172,960.00 TOTAL $1,653,904.59 $1,812,431.17 $3,466,335.76 10 BONDOWNERS' RISKS General. In order to pay debt service on the Bonds, it is necessary that unpaid installments of assessments on land within the District are paid in a timely manner. Should the installments not be paid on time, the City has established a Reserve Fund in the initial amount of approximately six percent (6%) of the aggregate principal amount of the Bonds to cover delinquencies. The assessments are secured by a lien on the parcels of land and the City can institute foreclosure proceedings to sell land with delinquent installments for the amount of such delinquent installments in order to obtain funds to pay debt service on the Bonds. Failure by owners of the parcels to pay installments of assessments when due, depletion of the Reserve Fund, or the inability of the City to sell parcels which have been subject to foreclosure proceedings for amounts sufficient to cover the delinquent installments of assessments levied against such parcels may result in the inability of the City to make full or punctual payments of debt service on the Bonds, and bondowners would therefore be adversely affected. Unpaid assessments do not constitute a personal indebtedness of the owners of the lots and parcels within the District. There is no assurance the owners will be able to pay the assessment installments or that they will pay such installments even though financially able to do so. Bankruptcy and Foreclosure. The payment of property owners' assessment installments and the ability of the City to foreclose the lien of a delinquent unpaid assessment may be limited by bankruptcy, insolvency, or other laws generally affecting creditors' rights or by the laws of the State relating to court foreclosure. Although bankruptcy proceedings would not in themselves cause the assessment liens to become extinguished, bankruptcy of a property owner could result in a delay by the City in prosecuting court foreclosure proceedings. Such delay would increase the likelihood of a delay or default in payment of the principal of and interest on the Bonds, and the possibility of delinquent assessment installments not being paid in full. The various legal opinions to be delivered concurrently with the delivery of the Bonds (including Bond Counsel's approving legal opinion) will be qualified, as to the _ enforceability of the various legal instruments, by bankruptcy, reorganization, insolvency or other similar laws affecting the rights of creditors generally. Payment of the assessment installments is entirely dependent upon the timely payment by the existing landowners, or any other subsequent owners of property within the District; therefore, there could be delays in payment of debt service on the Bonds as bankruptcy filing may delay the City's ability to complete its Superior Court foreclosure proceedings. Moreover, amounts received upon foreclosure sales may not be sufficient to fully discharge delinquent installments. ` 11 Factors Which May Affect Land Development. There is no development currently proposed, however, any subsequent development proposed for the District may be affected by changes in general economic conditions, fluctuations in the real estate market, changes in ownership of the land and other factors. In addition, proposed development would be subject to existing and future federal, state and local regulations. Approval may be required from various public agencies in connection with the design, nature and extent of required public improvements, or such matters as land use and zoning. Failure to meet any such future regulations or obtain any such approvals in a timely manner could delay or adversely affect any proposed _ development of the District. Limited City Obligation Upon Delinquency. The City's obligation to advance moneys to pay Bond debt service in the event of delinquent assessment installments shall not exceed the balance of the Reserve Fund. The City has made an election in the Resolution of Intention not to be obligated to advance funds from the general fund of the City for delinquent assessment installments pursuant to Section 8769(b) of the Bond Law; the only obligation of the City is to transfer amounts available in the Reserve Fund. There is no assurance that funds will be available for this purpose and if, during the period of delinquency there are insufficient funds in the Reserve Fund, a delay may occur in payments to the owners of the Bonds. Direct and Overlapping Debt. Although no specific development project is planned within the District, the future development of the Resevoir Hills area would require the installation of a substantial amount of public improvements in addition to the Project. The City presently anticipates that a portion of such additional public improvements would be financed. through the future formation of one or more assessment districts and/or community facilities districts, some of the territory of which would include land within the District. 12 THE PROJECT Description of Work. The proposed works of improvement are generally described as follows: The construction of certain water system improvements within the Assessment District including appurtenances. Specific improvements to be constructed include furnishing and installing approximately 12,740 lineal feet of water mains and appurtenances to serve a new higher pressure zone in the Reservoir Hill Assessment District within the City of Huntington Beach. Water mains will range in size from 12- inches to 18-inches in diameter. Proposed locations of the new water mains are shown on the Assessment District Diagram in the Appendix Section of this Official Statement. Estimated Project Costs. The following are Project costs for the Assessment District as estimated after receipt of the construction bids on November 17, 1988. CITY OF HUNTINGTON BEACH (Orange County, California) COST ESTIMATE FOR ASSESSMENT DISTRICT NO. 88-1 (RESERVOIR HILL) Estimated Costs 1. CONSTRUCTION EXPENSE Public Works of Construction $1,185,754.00 Construction Contingency 118,575.00 ---------------- TOTAL CONSTRUCTION AND CONTINGENCY $1,304,329.00 II. INCIDENTAL EXPENSES Incidental Costs $ 323,877.51 Underwriter's Discount 41,347.61 Reserve Fund 99,234.26 TOTAL INCIDENTALS $ 464,459.38 III. LESS CONTRIBUTIONS Estimated Construction Earnings $ 8,152.00 Cash Collections 106,731.79 ---------------- TOTAL CONTRIBUTIONS $ 114,883.79 ESTIMATED TOTAL ASSESSMENT $1,653,904.59 13 Method and Formula of Assessment. The law requires and the statutes provide that assessments, as levied pursuant to the provisions of the "Municipal Improvement Act of 1913", must be based on the benefit that the properties receive from the works of improvement. The statute does not specify the formula that should be used in any special assessment district proceedings. The - responsibility rests with the Engineer of Work (the "Assessment Engineer") who is retained for the purpose of making an analysis of the facts and determining the correct apportionment of the assessment obligation, based upon the benefit received by each parcel assessed. For these proceedings the City retained the services of Black & Veatch, Santa Ana, California. The Assessment Engineer makes his recommendation at the public hearing on the District, and the final authority and action rests with the •City after hearing all testimony and evidence presented at that public hearing. Upon the conclusion of the public hearing, the City must take the final action in determining whether or not the assessment spread has been made in direct proportion to the benefits received. The following information was included in the Engineer's Report accepted and approved by the City Council: First of all, it is necessary to identify the benefit that the public improvement will render to the properties within the boundaries of the District. Properties located within the District will receive the benefit of having access to a public water supply of adequate capacity and pressure. Two distinguishable types of benefits may be realized by properties in the District: capacity and distribution. All properties in the District will be assured of adequate capacity furnished by the grid or network of new and existing water mains comprising the higher pressure zone. Those properties which are adjacent to, or which "front" new water mains, will receive a further benefit of distribution. A distribution benefit results from being able to make a direct service connection tap to a new water main located in the higher pressure zone. Exemptions from the District are granted to those properties which now have adequate water service and which meet the following development criteria: Parcels fully developed in conformance with the City's general plan and zoning ordinances. Such parcels are normally characterized by street improvements, permanent structures, asphalt parking lots, and landscaping, all of which satisfy current local code requirements. Existing water customers located in the higher pressure zone, but who are now located in the lower pressure zone, would receive the benefit of increased capacity and - pressure, but not a distribution benefit. These customers are only assessed for a capacity benefit. In further making the analysis, it is necessary that the property owners receive a special and direct benefit distinguished from that' of the general public. Only those properties located in the higher pressure zone, which includes land areas generally above an elevation of 60 feet above mean sea level, and which can be logically served from either the new water main or from future extensions of those mains, benefit from this project. Existing properties located in the high pressure zones which are already served by an existing smaller booster pressure zone, such as the Seacliff Village Shopping Center and adjacent residential developments will receive no added benefits from this project. 14 i An in-depth analysis was made and two factors are being used in the final method of spread and assessment. The proposed assessment formula includes two cost components: one for capacity and one for distribution. Those properties which front new water mains in the higher pressure zone will be assessed for capacity and distribution. Those properties which do no front new mains will only be assessed for capacity. The capacity ` charge is based upon total acreage in the District, and each property will be assessed a flat unit cost per acre. The distribution assessment is based upon the front footage of each property which borders a new water main. The distribution assessment is based upon an equivalent cost for installing a distribution main along the affected properties. A typical distribution main size would be 6 to 8 inches in diameter. The installed cost of 3 a 6 to 8 inch diameter water main and appurtenances is approximately $30 per foot of length. Since a water distribution main normally serves properties on both sides of the street, the proposed distribution assessment is one-half times $30 per foot of length, which is $15 per foot of front footage. For properties located on street corners, the distribution assessment is based upon the average foot frontage along the two streets. Summary of Assessment Proceedings. The Assessment proceedings being used by the City for the District provide for all costs to be either estimated or ascertained prior to doing the work or making the I acquisition of the improvements, right of use or property involved. Under such proceedings, the assessments are then levied, collections made and Bonds sold to represent unpaid assessments. The money obtained from cash collections and Bond proceeds shall be used by the City in payment for the work to be accomplished, for the property or right of use to be acquired and for incidental expenses. Assessment proceedings can be initiated by either a petition or by the City without a petition. The District proceedings were initiated by petition of the owners of more than 60% of the area of the property to be subject to assessment. The assessment proceedings commenced, and Black & Veatch prepared a written report (the "Engineer's Report") which contained, among other things, the estimate of Project costs and the assessment for each parcel to be benefited. The total amount of the proposed assessment was based on the engineer's estimated cost of the Project. The individual assessments were spread among the various parcels of land within the District on the basis of the special benefit to be derived by each parcel from the improvements and acquisitions. The Engineer's Report was filed and preliminarily approved by the City Council on October 24, 1988. Thereafter, notice was published in a local newspaper and also posted along all of the open streets within the District. In addition, notice of the proposed assessment was mailed to each of the owners whose property was proposed to be assessed. The notices advised the property owners of the filing of the Engineer's Report, the date, time and place for a hearing on the Project, the proposed assessments and the right to protest. The mailed notices also advised the property owners of the estimated amount proposed to be assessed against their properties, as shown in the Engineer's Report. 15 Property owners had the right to protest in writing prior to or at the commencement of the hearing and to be heard at such hearing. At the conclusion of the hearing, held on December 5, 1988, the City adopted its resolution confirming the assessments and ordering the work and acquisitions. Upon recordation by the County Recorder of Orange County in the official records, the assessments became liens against the various assessed parcels. The property owners were given published and mailed notice of the opportunity to pay all or a portion of the assessment in cash within 30 days of the recording of the assessment in the office of the Superintendent of Streets. The notice further advised the property owners that to the extent cash payment was not made, Bonds would be sold to represent unpaid assessments. The cash payment period ended on January 6, 1989. Any property owner who paid an assessment during the cash collection period was entitled to, and received, a reduction of the assessment representing that portion of the assessment that would otherwise be used for a Bond discount, capitalized interest and for funding of the Reserve Fund. Special Assessment Investigation, Limitation, and Majority Protest Act of 1931. The provisions of the Special Assessment Investigation, Limitation and Majority Protest Act of 1931, Division 4 of the Streets and Highways Code of the State of California, do not apply to these assessment proceedings inasmuch as these proceedings have been waived by petition executed by over 60% of the owners of land proposed to be assessed under these proceedings. Disposition of Surplus Funds. After completion of the Improvement Project and the payment of all claims from the Improvement Fund, the City's governing body shall determine if a surplus remains in the Improvement Fund by reason of the assessment and any supplemental assessment levied for said improvement. Any such surplus shall be used as follows: a) For transfer to the General Fund of the City of an amount not to exceed the lesser of One Thousand Dollars ($1,000.00) or five percent (5%) of the total amount expended from the Improvement Fund; and b) For the maintenance of the improvement; and c) As a credit upon the assessment and any supplemental assessment, as provided in Section 10427.1 of the Streets and Highways Code of the State of California. 16 THE ASSESSMENT DISTRICT The property within the boundaries of the District lies entirely within the City of Huntington Beach. The District is located in the Reservoir Hill portion of the City. The District is generally bounded on the north by Ellis Avenue, on the east by Huntington Street, on the south by Yorktown, and on the west by a line parallel to and approximately 1,000 feet west of Edwards.Street. Existing Zoning and Land Use. r The land within the Assessment District is zoned as residential and commercial; the majority of which is undeveloped. A majority of the underdeveloped land is owned by Huntington Beach Company, whose operations are concentrated in real estate investments and petroleum interests. Land use within the District is detailed below: LAND USES C-1 12 acres Neighborhood Commercial C-2 25 acres Community Business District M-1 163 acres Light Industrial M-2 40 acres Industrial R 360 acres Residential The neighborhood commercial (C-1) district is intended to provide for limited commercial development of under one and one-half acres on one corner of the intersection of secondary arterial highways which is compatible with surrounding residential uses. No automotive uses or outside storage is permitted. The community business (C-2) district, a more intensive zone, permits all uses within the CA District and, in addition, permits general retail uses including minor automobile repair and outside storage, subject to specific standards. Agencies Which Provide Public Utilities Within the Assessment District. The public agencies and utility companies listed below provide public utilities and municipal services to the property within the Assessment District. Electrical: Southern California Edison Gas: Southern California Gas Telephone: General Telephone Water: City of Huntington Beach Sewerage: City of Huntington Beach Education: Huntington Beach High School District Huntington Beach Elementary School District Fire: City of Huntington Beach Law Enforcement: City of Huntington Beach 17 Access to Parcels to be Assessed. According to City staff, all parcels within the District have legal access. Assessment Roll. - Beginning with the 1981-82 fiscal year, property in California is assessed at 100 percent of full cash value. Article X111A of the California Construction defines such "full cash value" as the appraised value as of March 1, 1975, plus adjustments not-to- - exceed two percent (2%) per year to reflect inflation and requires reassessment of "full cash value" upon change of ownership or new construction. Accordingly, the assessed values in the Table reflect only 1975 values as increased by two percent (2%) per year unless the parcel has changed ownership or has had new construction thereon, in which case the assessed valuation will more closely approximate current market value. The following information was prepared by the Assessment Engineer as part of the Engineer's Report, dated October 17, 1988, which presents the assessment roll, the Orange County Assessor's 1988-89 Full Cash Value (Land and Improvements), ownership of parcels and estimated assessment under these proceedings. 18 CITY OF HUNTINGTON BEACH ASSESSMENT DISTRICT NO. 88-1 ASSESSMENT ROLL ------------------------------------------------------------------------------------------- APN PROPERTY BASE ASSESSED ASSESSED TOTAL VALUE NO. OWNER YEAR LAND VALUE IMPROVEMENTS VALUES ASSESSMENT TO LIEN ------------------------------------------------------------------------------------------- 023 010 12 HUNT BCH CO 75 $46,856 $0 546,856 $14,148.11 3.31 023 010 13 HUNT BCH CO 75 700,126 0 700,126 51,485.13 13.60 023 181 29 HUNT BCH CO 85 2,500,800 5,087,318 7,588,118 158,821.60 47.78 023 251 41 HUNT BCH CO 75 36,111 0 36,111 6,408.15 5.64 110 015 56 HUNT BCH CO 75 186,733 0 186,733 91,899.92 2.03 110 015 57 HUNT BCH CO 75 70,664 0 70,664 39,241.36 1.80 110 190 01 HATHAWAY 47,421 0 47,421 11,459.28 4.14 110 190 02 JOHNSON 88 97,314 0 97,314 6,106.59 15.94 110 190 03 JOHNSON 88 67,638 0 67,638 2,965.34 22.81 110 190 04 JOHNSON 88 68,254 0 68,254 3,141.25 21.73 110 190 05 HENDRICKS 99,397 0 99,397 12,213.18 8.14 110 190 06 PAC AMER OIL 13,282 0 13,282 2,487.87 5.34 110 191 03 LINDSEY 6,131 0 6,131 326.69 18.77 110 191 04 McKINNON 860 0 860 533.32 1.61 110 191 05 OLIVER 860 0 860 158.32 5.43 110 191 08 KOVNER 12,570 0 12,570 158.32 79.40 110 191 12 MCKENZIE 80 877 0 877 158.32 5.54 110 191 17 FJAERAN 87 8,160 0 8,160 158.32 51.54 110 191 18 LINDESY 81 6,253 0 6,253 326.69 19.14 110 192 01 MARTINSON 80 1,759 0 1,759 326.69 5.38 110 192 03 OLIVER 80 877 0 877 158.32 5.54 110 192 06 QUINE 83 13,246 0 13,246 158.32 83.67 110 192 07 ENENBACH 80 877 0 877 158.32 5.54 110 192 09 TAYLOR 80 2,177 0 2,177 158.32 13.75 110 192 12 SWARTZ 80 877 0 877 158.32 5.54 110 192 14 MAROW 80 2,734 0 2,734 477.47 5.73 110 192 16 FJAERAN 84 1,524 0 1,524 158.32 9.63 _ 110 192 18 ADLER 86 24,969 0 24,969 158.32 157.71 19 I ------------------------------------------------------------------------------------------- - APN PROPERTY BASE ASSESSED ASSESSED TOTAL VALUE NO. OWNER YEAR LAND VALUE IMPROVEMENTS VALUES ASSESSMENT TO LIEN ------------------------------------------------------------------------------------------- - 110 192 19 MEYER 80 2,504 0 2,504 158.32 15.82 110 193 01 MAROW 80 832 0 832 158.32 5.26 110 193 02 FJAERAN 84 1,584 0 1,584 158.32 10.01 110 193 04 BOUSKA 80 877 0 877 158.32 5.54 110 200 01 ALBRECHT 88 480,500 0 480,500 5,352.69 89.77 110 200 02 ALBRECHT 88 729,000 0 729,000 6,282.50 116.04 110 200 03 COLBERT 88 493,563 0 493,563 12,012.14 41.09 110 200 04 HATHAWAY 86 262,168 0 262,168 6,282.50 41.73 110 200 05 HATHAWAY 86 346,632 3,685 350,317 12,565.00 27.88 110 200 10 HUNT BCH CO 79 18,879 0 18,879 6,106.59 3.09 110 200 11 HUNT BCH CO 75 40,325 0 40,325 6,106.59 6.60 110 200 13 HUNT PAC CO 86 478,479 0 478,479 17,163.18 27.88 110 200 14 SUNDERLAND 75 23,046 0 23,046 17,163.18 1.34 110 200 15 1SHIBASHi 75 76,865 0 76,865 12,565.00 6.12 110 200 16 ISHIBASHI 75 49,600 0 49,600 12,565.00 3.95 110 200 17 HUNT BCH CO 75 239,748 0 239,748 60,490.37 3.96 110 200 18 HUNT BCH CO 75 23,046 0 23,046 17,012.40 1.35 110 200 19 CITY OF HB 80 233,097 0 233,097 8,506.20 27.40 110 200 20 HUNT BCH CO 79 181,947 0 181,947 8,506.20 21.39 110 200 21 BLASGEN 79 26,596 0 26,596 17,012.40 1.56 110 200 22 HUNT BCH CO 82 602,164 0 602,164 18,486.83 32.57 110 200 29 HUNT BCH CO 88 378,245 0 378,245 214,383.30 1.76 110 210 01 LANDIS 77 82,734 7,944 90,678 14,175.83 6.40 110 210 02 ROSS 75 27,543 0 27,543 4,583.59 6.01 110 210 03 NICCOLE 79 6,623 0 6,623 1,374.55 4.82 110 210 04 SHERRILL 88 27,000 0 27,000 326.69 82.65 110 210 06 SCHUESLER 75 2,310 0 2,310 1,701.24 1.36 110 210 07 SPELTS 75 12,397 0- 12,397 2,268.32 5.47 110 210 08 HUNT BCH CO 79 88,749 0 88,749 3,402.48 26.08 110 210 09 HUNT BCH CO 75 67,257 0 67,257 16,962.14 3.97 - 110 210 10 NICCOLE 82 104,818 0 104,818 2,797.70 37.47 110 210 11 GOLDON 79 470 0 470 857.67 0.55 110 211 01 SMITH 80 970 0 970 535.83 1.81 y 110 211 03 MAROW 80 2,084 0 2,084 1,071.66 1.94 110 211 04 TUNSTALL 80 1,016 0 1,016 535.83 1.90 20 r � i --.-----------------------------------------------------"---------------------------------- APN PROPERTY BASE ASSESSED ASSESSED TOTAL VALUE NO. OWNER YEAR LAND VALUE IMPROVEMENTS VALUES ASSESSMENT TO LIEN ------------------------------------------------------------------------------------------- 110 211 05 TUNSTALL 80 7,421 0 7,421 3,755.85 1.98 110 211 06 WEIR OIL CO 83 60,336 0 60,336 653.38 92.34 110 211 07 WEIR OIL CO 83 15,069 0 15,069 653.38 23.06 110 211 08 WEIR OIL CO 83 15,069 0 15,069 160.83 93.70 110 211 09 HOWELL 85 13,246 0 13,246 160.83 82.36 110 211 10 ESTRADA 80 1,063 0 1,063 160.83 6.61 110 211 11 VARGAS 80 970 0 970 160.83 6.03 110 211 12 VARGAS 80 970 0 970 160.83 6.03 110 211 13 WOOD 82 12,542 0 12,542 160.83 77.98 110 211 14 VARGAS 80 970 0 970 160.83 6.03 110 212 06 THOMPSON 82 4,458 0 4,458 160.83 27.72 110 212 07 WEIR OIL CO 83 16,560 0 16,560 160.83 102.97 110 212 08 WEIR OIL CO 83 16,560 0 16,560 160.83 102.97 110 212 09 WEIR OIL CO 83 16,560 0 16,560 160.83 102.97 110 212 10 BROWN 80 1,063 0 1,063 160.83 6.61 110 212 11 BROWN 80 1,063 0 1,063 160.83 6.61 110 212 12 MAROW 80 1,016 0 1,016 160.83 6.32 110 212 16 THOMPSON 82 12,542 0 12,542 160.83 77.98 110 212 17 MAROW 80 1,016 0 1,016 160.83 6.32 110 212 18 AMARK 80 3,189 0 3,189 160.83 19.83 110 212 22 AMARK 80 2,504 0 2,504 160.83 15.57 110 213 01 MAROW 80 1,016 0 1,016 160.83 6.32 110 213 02 BATES 84 12,987 0 12,987 160.83 80.75 110 213 04 CATRON 87 7,650 0 7,650 160.83 47.57 110.213 05 PARKS 80 1,063 0 1,063 160.83 6.61 110 213 06 PARKS 80 1,063 0 1,063 160.83 6.61 110 213 07 WALLBANK 80 1,063 0 1,063 160.83 6.61 110 213 08 WALLBANK 80 1,063 0 1,063 160.83 6.61 110 213 09 WALLBANK 80 1,063 0 1,063 160.83 6.61 110 213 10 WALLBANK 80 1,063 0 1,063 160.83 6.61 110 213 11 MAROW 80 1,016 0 1,016 160.83 6.32 110 221 01 PETTITT 86 3,499 0 3,499 577.99 6.05 110 221 02 WELLER 80 2,269 0 2,269 376.95 6.02 110 221 03 MAIN 80 1,109 0 1,109 183.45 6.05 110 221 04 WALLBANK 87 5,100 0 5,100 183.45 27.80 21 ------------------------------------------------------------------------------------------- APN PROPERTY BASE ASSESSED ASSESSED TOTAL VALUE NO. OWNER YEAR LAND VALUE IMPROVEMENTS VALUES ASSESSMENT TO LIEN ------------------------------------------------------------------------------------------- 110 221 05 ALLEN 80 1,109 0 1,109 183.45 6.05 - 110 221 06 TITLE INSUR 80 1,109 0 1,109 183.45 6.05 110 221 08 WALKER 84. 2,927 0 2,927 183.45 15.96 110 221 09 HARGROVE 80 2,177 0 2,177 183.45 11.87 110 221 11 KAHLE 80 1,202 0 1,202 183.45 6.55 110 221 12 HOFFMAN 80 1,109 0 1,109 183.45 6.05 110 221 13 WALKER 84 2,927 0 2,927 183.45 15.96 110 221 14 KELLER 80 1,109 0 1,109 183.45 6.05 110 221 15 DEUTSCH 83 13,246 0 13,246 183.45 72.20 110 221 17 BANK UNION 80 1,109 0 1,109 183.45 6.05 110 221 19 PETTITT 80 1,109 0 1,109 183.45 6.05 110 221 21 FORD 86 9,883 0 9,883 183.45 53.87 110 221 22 SCOULLER 80 1,109 0 1,109 183.45 6.05 110 221 23 SHERRILL 83 5,520 0 5,520 183.45 30.09 110 221 24 WALKER 84 2,927 0 2,927 183.45 15.96 110 221 25 HARGROVE 80 2,177 0 2,177 183.45 11.87 110 222 02 WOODSON• 82 1,113 0 1,113 183.45 6.07 110 222 04 LAN 80 2,269 0 2,269 376.95 6.02 110 222 05 HUBBS 80 1,109 0 1,109 183.45 6.05 110 222 06 FULLER 80 2,269 0 2,269 376.95 6.02 110 222 07 BUTTERS 80 1,202 0 1,202 183.45 6.55 110 222 08 JACOBSON 80 1,,389 0 1,389 183.45 7.57 110 222 09 JACOBSON 80 2,781 0 2,781 376.95 7.38 110 222 14 SPELTS 80 1,389 0 1,389 183.45 7.57 110 222 16 ADDLER 85 8,489 0 8,489 183.45 46.27 110 222 18 TOWNLEY 80 1,109 0 1,109 183.45 6.05 110 222 19 SMITH 85 9,019 0 9,019 183.45 49.16 110 222 22 STERMAN 87 3,080 0 3,080 183.45 16.79 110 222 23 GUSTAFSON 88 6,054 0 6,054 183.45 33.00 110 222 24 STERMAN 87 3,080 0 3,080 183.45 16.79 110 222 29 SAILER 80 2,154 0 2,154 183.45 11.74 110 222 30 SAILER 80 2,154 0 2,154 183.45 11.74 110 230 08 HUNT BCH CO 83 359,139 0 359,139 73,128.30 4.91 110 072 02 HUNT BCH CO 75 11,832 0 11,832 2,161.18 5.47 111 072 03 HUNT BCH CO 75 2,601 .0 2,601 326.69 7.96 22 ------------------------------------------------------------------------------------------- APN PROPERTY BASE ASSESSED ASSESSED TOTAL VALUE NO. OWNER YEAR LAND VALUE IMPROVEMENTS VALUES ASSESSMENT TO LIEN ------------------------------------------------------------------------------------------- 111 072 04 HUNT BCH CO 75 1,156,673 0 1,156,673 155,810.58 7.42 111 072 05 HUNT BCH CO 75 193,451 0 193,451 23,672.44 8.17 111 072 07 HUNT BCH CO 75 35,024 0 35,024 9,649.92 3.63 111 072 08 HUNT BCH CO 75 16,137 0 16,137 4,071.06 3.96 111 072 09 HUNT BCH CO 75 19,258 0 19,258 2,940.21 6.55 111 072 10 HUNT BCH CO 75 76,679 0 76,679 11,760.84 6.52 111 072 11 HUNT BCH CO 83 663,550 0 663,550 12,213.18 54.33 111 072 12 HUNT BCH CO 83 663,550 0 663,550 12,213.18 54.33 111 072 14 HUNT BCH CO 87 660,302 0 660,302 16,962.14 38.93 111 072 15 HUNT BCH CO 77 94,523 0 94,523 16,962.14 5.57 111 072 17 HUNT BCH CO 78 31,756 25,268 57,024 7,088.39 8.04 111 072 18 HUNT BCH CO 75 45,767 0 45,767 15,431.55 2.97 111 072 20 HUNT BCH CO 75 85,811 0 85,811 9,825.83 8.73 111 072 21 HUNT BCH CO 77 130,496 14,099 144,595 13,618.12 10.62 111 672 22 'HUNT BCH CO 77 25,933 0 25,933 5,026.00 5.16 111 072 23 HUNT BCH CO 75 53,012 0 53,012 8,141,64 6.43 111 110 01 GREER 75 25,695 5,768 31,463 2,513.00 12.52 111 110 02 GREER 75 25,695 0 25,695 2,513.00 10.22 111 110 03 GEOTSCH 75 25,695 0 25,695 2,513.00 10.22 111 110 04 COHN 76 99,822 0 99,822 4,598.79 21.71 111 110 05 COHN 88 63,985 0 63,985 2,462.74 25.98 111 110 07 WEAVER 85 57,631 0 57,631 3,506.50 16.44 111 110 09 BOLLMAN 88 41,271 70,795 112,066 2,329.29 48.11 111 110 10 GABE 85 27,405 0 27,405 1,177.21 23.28 111 110 11 DUNN 80 7,654 0 7,654 1,177.21 6.50 111 110 12 DUNN 80 7,654 0 7,654 1,177.21 6.50 111 110 13 DUNN 80 7,654 0 7,654 1,177.21 6.50 111 110 14 LANDIS 80 7,654 0 7,654 1,177.21 6.50 111 110 16 CUSTER 85 232,722 24,407 257,129 2,025.48 126.95 111 110 18 MANDIC 84 612,114 1,622 613,736 5,026.00 122.11 111 110 19 GREER 75 25,697 24,467 50,164 2,513.00 19.96 111 110 20 GREER 75 25,697 0 25,697 2,513.00 20.45 111 110 21 PEDERSON 86 106,363 0 106;363 1,256.50 84.65 111 110 22 PEDERSON 86 106,390 0 106,390 1,256.50 604.80 111 110 23 CUSTER 85 19,844 0 19,844 175.91 4.74 23 i ------------------------------------------------------------------------------------------- APN PROPERTY BASE ASSESSED ASSESSED TOTAL VALUE NO. OWNER YEAR LAND VALUE IMPROVEMENTS VALUES ASSESSMENT TO LIEN ------------------------------------------------------------------------------------------- 111 120 01 S & C OIL 75 26,503 0 26,503 4,183.94 5.87 111 120 06 THOMAS 75 25,695 4,869 30,564 4,512.09 6.77 111 120 07 THOMAS 75 25,695 2,643 28,338 4,512.09 6.04 111 120 08 THOMAS 76 64,082 3,782 67,864 4,688.00 17.90 111 120 09 THOMAS 85 320,484 0 320,484 3,790.53 169.59 111 120 11 LINGLE 88 38,057 0 38,057 1,889.71 31.92 111 120 12 LINGLE 88 37,418 0 37,418 1,192.29 31.38 111 120 13 THOMAS 77 11,119 0 11,119 1,177.21 9.45 111 120 14 THOMAS 77 12,068 0 12,068 1,177.21 10.25 111 120 15 THOMAS 77 12,068 0 12,068 1,177.21 10.25 111 120 16 ARMSTRONG 77 24,138 0 24,138 2,329.29 10.36 111 120 17 THOMAS 77 12,068 0 12,068 1,177.21 10.25 111 120 18 THOMAS 84 70,357 0 70,357 1,177.21 59.77 111 120 19 THOMAS 82 67,908 0 67,908 1,177.21 57.69 111 120 20 THOMAS 82 135,819 2,395 138,214% 2,336.83 59.15 111 120 22 THOMAS 75 25,695 7,990 33,685 2,513.00 13.40 111 120 23 THOMAS 75 25,695 2,930 28,625 2,513.00 11.39 111 120 24 THOMAS 75 25,695 41,081 66,776 2,515.51 26.55 111 120 25 THOMAS 76 54,668 13,107 67,775 2,513.00 26.97 111 120 28 WEIR OIL CO 77 27,070 0 27,070 4,183.94 6.47 111 120 29 MUNIZ 78 46,005 7,379 53,384 2,035.53 26.23 111 120 30 THOMAS 81 970 0 970 501.82 1.93 111 130 01 GEOTSCH 87 51,000 0 51,000 792.72 64.34 111 130 02 WEIR OIL CO 84 119,066 0 119,066 1,753.25 67.91 111 130 05 ASHBY 83 56,307 76,179 132,486 1,169.67 113.27 111 130 07 LINGLE 88 37,922 0 37,922 1,177.21 32.21 111 130 08 .LINGLE 88 37,922 0 37,922 1,177.21. 32.21 111 130 10 HUNT BCH CO 80 7,654 0 7,654 1,177.21 6.50 111 .130 11 MILLS 80 6,378 0 6,378 1,133.59 5.63 111 130 12 MILLS 80 6,378 0 6,378 1,288.58 4.95 111 130 15 RENNER 80 24,686 0 24,686 4;688.00 5.27 111 130 16 HUNT BCH CO 80 58,006 0 58,006 9,376.00 6.19 111 130 17 HUNT BCH CO 80 29,001 0 29,001 4,688.00 6.19 111 130 18 HUNT BCH CO 80 26,541 0 26,541 7,866.97 3.37 111 130 19 HUNT BCH CO 80 12,201 0 12,201 6,529.86 1.87 24 ---------------•--------------••--------------•-------------------------------------------- APN PROPERTY BASE ASSESSED ASSESSED TOTAL VALUE NO. OWNER YEAR LAND VALUE IMPROVEMENTS VALUES ASSESSMENT TO LIEN ---------------------------------------------------------------------------------------- 111 130 20 HUNT BCH CO 80 58,006 0 58,006 5,026.00 11.54 111 130 21 HUNT BCH CO 80 14,522 0 14,522 1,206.24 12.04 111 130 22 HUNT BCH CO 80 17,400 0 17,400 1,256.50 13.85 111 130 23 HUNT BCH CO 80 58,006 0 58,006 5,026.00 11.54 111 130 24 WEIR OIL CO 80 29,604 0 29,604 2,513.00 11.78 111 130 25 WEIR 78 24,609 26,388 50,997 1,532.93 33.27 111 130 26 WEIR OIL CO 83 76,112 0 76,112 1,753.25 43.41 111 140 01 TELFORD 80 14,150 0 14,150 2,329.29 6.07 111 140 02 WEIR 81 3,975 0 3,975 583.58 6.81 111 140 04 WEAVER 85 26,530 0 26,530 1,177.21 22.54 111 140 05 WEAVER 85 26,530 0 26,530 1,177.21 22.54 111 140 06 WEAVER 85 43,380 4,371 47,751 2,329.29 20.50 111 140 07 LINGLE 85 46,079 0 46,079 2,329.29 19.78 111 140 08 WEAVER 85 46,162 10,612 56,774 1,177.21 48.23 111 140 09 LOMA LINDA 80 6,214 0 6,214 1,177.21 5.28 111 140 14 WEAVER 75 52,961 2,362 55,323 2,513.00 22.01 111 140 15 ALBERT 75 25,695 1,317 27,012 2,513.00 10.75 111 140 20 TEM PROP 80 9,000 0 9,000 502.60 17.91 111 140 21 TEM PROP 80 24,730 0 24,730 1,231.37 20.08 111 140 22 TEM PROP 80 13,500 0 13,500 753.90 17.91 111 140 23 MILLER 88 89,828 0 89,828 2,513.00 35.75 111 140 24 PEDERSON 86 215,947 0 215,947 2,513.00 85.93 111 140 25 MILLER 88 240,347 38,386 278,733 2,513.00 110.92 111 140 26 LEVOY 80 8,814 0 8,814 628.25 14.03 111 140 27 LEVOY 80 6,354 0 6,354 628.25 10.11 111 140 28 HUNT BCH CO 80 12,386 0 12,386 628.25 19.72 111 140 29 HUNT BCH CO 80 12,386 0 12,386 628.25 19.72 111 140 30 HUNT BCH CO 80 11,226 0 11,226 628.25 17.87 111 140 31 HUNT BCH CO 80 12,386 0 12,386 628.25 19.72 - 111 140 32 HUNT BCH.CO 80 55,126 0 55,126 4,523.40 12.19 111 140 33 HUNT BCH CO 82 52,204 3,074 55,278 4,523.40 12.22 111 140 34 HUNT BCH CO 81 55,663 17,059 72,722 628.25 115.75 111 140 35 HUNT BCH CO 81 165,867 0 165,867 1,884.75 88.00 111 140 36 WEIR 80 6,075 0 6,075 583.58 10.41 111 140 37 WEIR 80 12,201 0 12,201 1,177.21 10.36 25 ------------------------------------------------------------------------------------------- APN PROPERTY BASE ASSESSED ASSESSED TOTAL VALUE NO. OWNER YEAR LAND VALUE IMPROVEMENTS VALUES ASSESSMENT TO LIEN ------------------------------------------------------------------------------------------- 111 150 13 WEIR 80 12,433 0 12,433 1,177.21 10.56 111 150 15 ANDERSON 77 36,917 2,930 39,847 1,733.97- 22.98 111 150 17 SCOTT 76 66,596 6,952 73,548 1,733.97 42.42 111 150 18 HUNT BCH CO 81 170,599 0 170,599 1,935.01 88.16 111 150 21 BURLINGHAM 80 63,806 0 63,806 904.68 70.53 111 150 22 HUNT BCH CO 82 57,147 0 57,147 376.95 151.60 111 150 23 HUNT BCH CO 82 57,147 0 57,147 351.82 162.43 111 150 25 LINDLEY 87 24,322 0 24,322 2,436.30 9.98 111 150 26 HUNT BCH CO 75 12,725 0 12,725 2,354.42 5.40 111 150 27 HUNT BCH CO 77 29,955 0 29,955 2,354.42 12.72 111 150 28 HUNT BCH CO 75 26,266 0 26,266 4,791.73 5.48 111 150 29 HUNT BCH CO 77 32,798 0 32,798 2,472.79 13.26 111 150 31 HUNT BCH CO 81 85,304 0 85,304 2,521.66 33.83 111 150 32 HUNT BCH CO 82 34,918 0 34,918 854.42 40.87 111 150 33 HUNT BCH CO 82 33,721 0 33,721 1,777.60 18.97 111 150 34 KELLER 82 6,288 4,012 10,300 226.17 45.54 111 150 36 BROWN 77 11,543 2,074 13,617 3,670.99 3.71 111 150 37 KELLER 75 15,801 943 16,744 2,435.33 6.88 111 150 38 WORTHY 77 20,773 1,652 22,425 2,619.58 8.56 111 150 39 WEIR OIL CO 77 38,477 34,031 72,508 2,817.77 25.73 111 150 40 HUNT BCH CO 75 21,008 0 21,008 3,018.81 6.96 111 150 44 HUNT BCH CO 80 289,751 0 289,751 1,733.97 167.10 111 150 47 HUNT BCH CO 75 28,396 0 28,396 3,881.50 7.32 159 191 01 HUNT BCH CO 77 126,519 0 126,519 2,563.26 49.36 159 191 02 HUNT BCH CO 75 27,826 0 27,826 2,035.53 13.67 159 191 03 HUNT BCH CO 79 5,748 5,748 11,496 2,638.65 4.36 159 281 01 HUNT BCH CO 75 29,483 0 29,483 2,930.46 10.06 159 281 02 HUNT BCH CO 75 29,054 0 29,054 4,432.41 6.55 159 281 03 HASSETT 75 7,662 16,894 24,556 1,101.82 22.29 159 281 05 HUNT BCH CO 75 33,552 0 33,552 2,186.31 15.35 159 282 10 GODDARD 77 56,938 0 56,938 1,608.32 35.40 159 282 11 SCOTT 75 50,829 0 50,829 4,950.61 10.27 159 282 12 HUNT BCH CO 80 7,282 0 7,282 779.03 9.35 159 311 02 HUNT BCH CO 75 421,418 0 421,418 20,078.87 20.99 159 311 03 HUNT BCH CO 75 53,768 0 53,768 5,277.30 10.19 26 ------------------------------------------------------------------------------------------- APN PROPERTY BASE ASSESSED ASSESSED TOTAL VALUE NO. OWNER YEAR LAND VALUE IMPROVEMENTS VALUES ASSESSMENT TO LIEN ------------------------------------------------------------------------------------------- 159 311 04 HUNT BCH CO 81 41,515 0 41,515 376.95 110.13 159 311 05 HUNT BCH CO 81 41,515 0 41,515 376.95 110.13 159 311 06 HUNT BCH CO 81 54,592 0 54,592 603.12 90.52 159 311 07 HUNT BCH CO 75 14,053 135 14,188 502.60 28.23 159 311 11 BRUNO 76 23,613 0 23,613 653.38 36.14 159 311 12 SO PAC RR * 0 0 0 1,155.98 0.00 159 351 01 WSTRN HOMEX ** 0 0 0 12.56 0.00 159 351 02 WSTRN HOMEX ** 0 0 0 163.34 0.00 159 351 05 WSTRN HOMEX 88 111,650 193,350 305,000 628.25 485.48 159 351 10 THOMAS 87 136,170 261,528 397,698 914.73 434.77 159 351 11 STEDD 87 127,500 225,454 352,954 706.15 499.83 159 351 12 WSTRN HOMEX 88 94,630 245,370 340,000 706.15 481.48 159 351 13 ENGLE 87 127,500 196,195 323,695 706.15 458.39 159 351 15 WSTRN HOMEX 88 101,850 238,150 340,000 841.86 403.87 159 351 16 WSTRN HOMEX 88 123,080 161,920 285,000 758.93 375.53 159 351 18 WSTRN HOMEX ** 0 0 0 188.47 0.00 159 352 01 GALE 87 106,375 198,204 304,579 809.19 376.40 159 352 07 WATSON 88 119,646 153,088 272,734 731.28 372.95 159 352 09 EDWARDS 87 132,436 182,743 315,179 784.06 401.98 159 352 10 ALDOROTY 87 123,134 185,745 308,879 809.19 381.71 159 352 11 WALTERS 87 136,812 178,367 315,179 861.96 365.65 159 352 12 DUNCAN 88 136,170 201,302 337,472 992.63 339.98 159 352 13 RABOY 87 113,107 166,372 279,479 731.28 382.18 159 352 14 WSTRN HOMEX 88 130,716 223,784 354,500 653.38 542.56 159 352 15 MCDEVITT 88 145,080 257,920 403,000 522.70 771.00 159 352 16 MCDEVITT 88 155,230 233,770 389,000 575.48 675.96 159 352 17 MANDIC 86 166,464 0 166,464 2,691.42 61.85 159 352 18 HILL 87 158,100 0 158,100 2,299.39 68.76 159 352 20 PLUNKETT 87 121,380 78,206 199,586 967.50 206.29 159 352 21 WSTRN HOMER ** 0 0 0 155.81 0.00 ------------ ------------ ------------ -------------- ------- TOTAL $23,235,173 $9,188,136 $32,423,309 $1,653,904.59 19.60 ------------ ------------ ------------ -------------- ------- *PRIOR TO 1977 **COMMON AREA EASEMENTS 27 Environmental Review. The Project is subject to the provisions of the California Environmental Quality Act (CEQA), Public Resources Code, Section 21000 et sea. On November 23, 1988, the City Council of the City of Huntington Beach adopted - a Negative Declaration under the Act to the effect that "the Project will not have a significant effect on the environment". A Notice of Determination was filed in the Offices of the County Clerk on November 28, 1988, and the statute of limitations for - persons seeking to challenge the City's approval of the Negative Declaration will have expired on December 28, 1988. Property Tax Delinquencies. The following tax delinquency information was compiled during the week ending October 26, 1988 from Orange County public records. While all efforts have been made to be as thorough as possible no warranties are given concerning the accuracy or completeness of this information. SUMMARY OF TAX DELINQUENCIES (Week Ending October 26, 1988) Number Parcels to be Assessed 303 Parcels delinquent for 1987-88, Only 4 Parcels Delinquent Prior Years 7 Total Parcels Delinquent 11 Total Assessment of Delinquent Parcels $11,077.10 Percentage of Total Assessment Represented by Delinquent Parcels 0.67% * Information concerning the first installment of 1988-89 taxes are unavailable. 28 CITY OF HUNTINGTON BEACH ASSESSMENT DISTRICT NO. 88-1 (RESERVOIR HILL) Tax Delinquencies (Week Ending October 26, 1988) Assessor's Assessment Fiscal Prior Years' Parcel No. Amount Year Delinauent Tax 110-192-16 $ 158.32 85/86 $ 80.26 110-193-02 158.32 95/86 80.26 110-212-06 160.83 85/86/87 233.68 110-212-16 160.83 85/86/87 576.48 110-222-29 183.45 86/87 92.29 110-222-30 183.45 86/87 92.29 111-110-21 1,256.50 87/88 1,357.20 111-110-22 1,256.50 87/88 1,357.55 111-120-01 4,183.94 86/87 742.02 111-140-24 2,513.00 87/88 2,719.17 159-352-11 861.96 87/88 200.56 ----------- ---------- TOTAL $11,077.10 $7,531.76 Source: Orange County Public Records. The Property Owners. The following specific information regarding ownership of assessed parcels in the District has been provided by the City. This information is included because it may be relevant to an informed evaluation of the Project and the security for the Bonds. However, no assurance can be given that ownership of one or more of such parcels will not be changed. Additionally, certain parcels within the District and which are subject to assessment are subject to leases which permit the lessee to utilize the leasehold property _ for oil and gas extraction. The leases have indefinite terms and terminate only when abandoned by the lessee or when the extration of oil and gas is no longer profitable for the lessee in the determination of the lessee. Under the terms of these leases, the property owner/lessor is responsible for the payment of all assessments on the leasehold properties. The Huntington Beach Company (See THE ASSESSMENT DISTRICT - The Huntington Beach Company (HBCO)) is the property owner/lessor of all properties subject to these leases. As a result of the existing oil leases, much of the property within the District has been used for oil production. As a result of this use, there exists the possibility that such property may contain residue from the oil operations. Prior to approval of development plans, the City requires certification from the property owner that no such residue is present. 29 r Currently there are no plans by any of the owners for development and it is unknown what may occur in the future. This information should not be construed to suggest that the Bonds or the assessments securing the Bonds are personal obligations of the property owners or the developers. Property Owner Percent of Assessment The Huntington Beach Co. 70% All Others 30% The Huntington Beach Company (HBCO). The following information about the Huntington Beach Company was provided by HBCO. The Huntington Beach Company commenced operations in 1903 as a real estate and agricultural concern with holdings and operations centered_in what became the City of Huntington Beach in Orange County. In 1919, HBCO entered into an oil and gas drilling lease with Chevron, which soon discovered oil on its leasehold interest and subsequently acquired more than 60% of HBCO's Common Stock. For the next four decades, HBCO profited primarily from oil and gas operations. With the maturing of its oil fields, HBCO again concentrated on real estate development, its present primary focus. Development by HBCO is concentrated mainly in Southern California. HBCO is a wholly-owned subsidiary of Chevron Corporation. Encyclopedia Lots. In 1914 and 1915, the Encyclopedia Americana gave away a "coastal lot" in Huntington Beach with every set of encyclopedias it sold. These lots, known as "Encyclopedia Lots", are usually distinguished by their odd size, approximately 25' x 100'. Several of these lots are within the District (about 77 lots with aggregate assessments of approximately $12,893.71), but because of their size, residential development of such lots is prohibited by City ordinance unless consolidated with other similar lots to form estate- size lots (approximately 6 encyclopedia lots or a total of 15,000 square feet). 30 THE CITY Organization. The City of Huntington Beach, located in the County of Orange, was incorporated in 1909, and operates under a Charter adopted in 1937 as amended and restated in 1982 and in 1984. The Charter provides for a Council-Administrator form of government. Seven council members, including a mayor, are elected at large. Currently, the City is comprised of the following members who serve four-year terms: Term Agency Member Expires Occupation Wes Bannister, Mayor 1990 Insurance Broker Tom Mays, Mayor Pro Tem 1990 System Analyst John Erskine 1990 Building Industry Director Peter Green 1992 Professor Don MacAllister 1992 Computer Consultant Jim Silva 1992 High School Teacher Grace Winchell 1990 College Counselor The professional staff of the City presently includes the following members: Paul E. Cook is the City Administrator. Immediately prior to his appointment to this position, Mr. Cook served as Director of Public Works for the City for eight years. Mr. Cook graduated from the University of Maine with a Bachelor of Science degree in Civil Engineering, and from the University of Southern California with a Masters Degree in Public Administration. Robert Franz is Deputy City Administrator of the City. Prior to his appointment, Mr. Franz served as the Assistant City Administrator of the City of Montebello for 11 years. Mr. Franz graduated from Occidental College with a Bachelor of Arts degree in Mathematics. He also received a Masters Degree in Business Administration from the University of Southern California. Louis F. Sandoval is the Public Works Director of the City. Prior to his appointment to this position, Mr. Sandoval served as Public Services Director for the cities of Whittier and Beverly Hills. Mr. Sandoval graduated from the University of Southern California with a Bachelor of Science degree in Public Administration. Lester G. Evans is the City Engineer. Prior to his appointment he served as the City Engineer for the City of Carlsbad, California for three years and as Director of Public Works/City Engineer for the City of Rialto for six years. Mr. Evans graduated from Claremeont McKenna College with a Bachelor of Arts Degree, from Stanford University with a Bachelor of Science Degree in Civil Engineering and from the University of California at Riverside with a Masters Degree in Public Administration. 31 Assessed Valuation. The following table lists the City's assessed valuation for the past five years. CITY OF HUNTINGTON BEACH ASSESSED VALUATION 1985/86 TO 1989/89 Assessed Year Valuation 1985/86 $7,445,307,033 1986/87 8,000,260,977 1987/88 8,556,563,390 1988/89 8,781,835,933 The table on the following page shows the City's direct and overlapping debt as of December 7, 1988. 32 II CITY OF HUNTINGTON BEACH 1988-89 ASSESSED VALUATION $8,580,201,414 (after deducting $201,634,519 redevelopment tax allocation increment) Direct and Overlanoine Bonded Debt % Anvlicablel Debt 12/1/88 Orange County 7.883 $ 138,740 Orange County Building Authorities 7.883 8,436,839 Orange County Flood Control District 7.885 690,726 Metropolitan Water District 1.599 8,402,105 Municipal Water Dist. of Orange Co. Water Facilities Corp. 12.400 8,537,400 Orange County Sanitation Dists. #1, 2 & 3 Certificates of Participation 5.253 6,072,468 Orange County Sanitation District #3 11.168 63,545 Orange County Sanitation District_#11 99.943 212,878 Coast Community College Dist. Authority 30.138 6,291,307 Los Alamitos Unified School District 1.698 12,244 Huntington Beach Union High School Dist. 70.196 1,389,880 Fountain Valley School District 30.642 1,401,871 Huntington Beach School District 96.760 1,209,500 Ocean View School District 93.123 2.123,204 City of Huntington Beach 100.000 2,615,000 City of Huntington Beach Bldg. Authorities 100.000 23,130,0002 TOTAL GROSS DIRECT AND OVERLAPPING BONDED DEBT $70,728,7073 Less: MWDOC Water Facilities Cor. (100% self-supporting) 8,537,400 Orange Co. Sanitation Dist. #3 (100% self-supporting) 63,545 TOTAL NET DIRECT AND OVERLAPPING BONDED DEBT $62,127,762 Ratios to 1988-89 Assessed Valuation Direct Debt ($25,745,000) 0.30% Total Gross Debt 0.82% Total Net Debt 0.72% SHARE OF AUTHORIZED AND UNSOLD BONDS Metropolitan'Water District $4,237,350 Fountain Valley School District $1,506,054 Ocean View School District $1,732,088 STATE SCHOOL BUILDING AID REPAYABLE AS OF 6/30/88: $30,901,907 YN: ($200) 1. Based on 1987-88 ratios. 2. Excludes 1915 Act bonds to be sold. 3. Excludes tax and revenue anticipation notes, revenue, mortgage revenue and tax allocation bonds and non-bonded capital lease obligations. 33 CONCLUDING INFORMATION Tax Exemption. In the opinion of Brown & Diven, Bond Counsel, under existing statutes, regulations, rulings and court decisions, the interest on the Bonds is excluded from gross income for federal income tax purposes pursuant to Section 103(a) of the Internal Revenue Code of 1986, as amended (the "Code"). In addition, Bond Counsel is of the opinion that the Bonds are not "private activity bonds" within the meaning of Section 141(a) of the Code and, therefore, the interest on the Bonds is not a specific item of tax preference for purposes of the Code's alternative minimum tax provisions, except to the extent provided in the following sentence. Interest on the Bonds received by a corporation will be included in book income and adjusted current earnings for purposes of computing its alternative minimum tax liability. Bond Counsel is further of the opinion that the interest on the Bonds is exempt from personal income taxes of the State of California under present state law. Bond Counsel's opinion as to the exclusion from gross income of interest on the Bonds is subject to the condition that the District comply with all requirements of the Internal Revenue Codes of 1986, as amended (the "Code"), that must be satisfied subsequent to the issuance of the Bonds to assure that interest of the Bonds will not become includable in gross income for federal income tax purposes. Failure to comply with such requirements could cause interest on the Bonds to be included in gross income for federal income tax purposes retroactive to the date of issuance of the Bonds. The District has covenanted to comply with all such requirements. Bond Counsel has not undertaken to determine (or to inform any person) whether any actions taken (or not taken) or events occurring after the date of issuance of the Bonds may affect the tax status of interest on the Bonds. Although Bond Counsel has rendered an opinion that interest on the Bonds is excluded from gross income for federal income tax purposes, the accrual or receipt of interest on the Bonds may otherwise affect the federal income tax liability of the recipient. The extent of these other tax consequences will depend upon the recipient's particular tax status and other items of income or deductions. Bond Counsel expresses no opinion regarding any such consequences. Accordingly, all potential purchasers should consult their tax advisors before purchasing any of the Bonds. Litigation. According to the City, there is no known controversy or litigation of any nature now pending to restrain or enjoin the issuance, sale, execution or delivery of the Bonds or in any way contesting or affecting the validity of the Bonds, the proceedings of the City taken with respect to the issuance or sale thereof, the existence or powers of the City or the title of any officer of the City Council to his/her respective position.- No Rating. The City has not, and does not contemplate making, application to any rating agency for the assignment of a rating to the Bonds. 34 Legal Opinion. All proceedings in connection with the issuance of the Bonds are subject to the approval of Brown & Diven, Rancho Santa Fe, California, Bond Counsel for the City in connection with the Assessment District Project. The unqualified opinion of Brown & +� Diven approving the validity of the Bonds will be printed on each Bond. Underwriting. Stone and Youngberg, the Underwriter, has purchased the Bonds from the City at an aggregate discount of $41,347:61 from the total par value of the Bonds as set forth on the cover page of this Official Statement. The public offering prices may be changed from time to time by the Underwriter. The Underwriter may offer and sell Bonds to certain dealers and others at prices lower than the offering price stated on the cover page hereof. i 35 APPENDIX A ASSESSMENT DISTRICT DIAGRAM i f . _ • Y� ;I0--------------- �fi, � fFj , �• I `I I_.�,I 1' P- LEGEND w..�• {'� 1• � •) �—/.� '•� — ssf sate oiS•nK. ri 11 PSOMAS - OBlack6VHatd1 -- _- RESERVOIR HILL ASSESSMENT DISTRICT : � / w , ' ~ . ` __ - 4a _ sr a y ` .. I, u.a :n tN Olfie.of tn.city MI..or —city It xunaleq N.en en.• `-�..• L •j Q) \.�: orxcal.Iro.... ( O ...-- ^ -Lt �' '•�'^ _ rl.rere•o 11-tn• off— of eN fup.rint•M•nt or ftr«a. of tM city of �-� •' ._. .. - - - ", - Muni.tgton•N.tn tnl• x.Y e( Lee. _ �- •-- - _ _ ... �(' i /'.�1 .� \ �- fV.ra.TlnO[xt or ST.frtf— t�.. � e or rIT or xulrtlxctox eva ..•• •o.,A .•• _ �_ - •ar C-im rt• "J 1 tiJ�•.' ..J '1`_.. `�-_:-_ana wrc.l.c w, n it ........nt —Q r f. \\1�•1 \` •r l.v: •city of n nt.e9ton N 1h.let., p:«« / ._ -\ • ... _ II � �y et'i.nu .wm to ie '�.�-�•'',••ird ve tn• "eq ee '� ��� h at.gr..r.oe en. ......n rou raceraw :n •eetic.ot1e fup.nn_ J=.\i ,l,. V-`�-�L- �._._ �. '_ - •�' :.ne. or ftr«e: er'..laeo'ty. ),(7Ir6� •'.-'- �' .. l_.- ' �_)(�.4., ��'� A Ivee.nt.•f•r•ne.a: ..a• en roll Otnc. ee eM Suprent•nE.ne of fer«t. for tn••.�, u or..e1.«..ten. 1.•.« LEGEND .F. ....na •an wre.i e! Lana.ne.n en tnr•......«ne a..o:...' '...�. uuvf..ext w/.et cl n:cu.. eouxo.« i .••-�Y - — _ rarlcet roura... _. . ,___._ � :.ice;�:�-'• ..- ;. � ,f`'�_i �o/i`.G anl. a.y of Ivae. .t tM Hour of t" of 'f •t r..r t en. •case• It tn. c ere.r c! �1__-����_-_...'I ♦.1 fir_. l •r1. \. .,:✓ .'.1��• .J /i �'� u r of 0� .. it.t.or c.11terni.. x•prN - _ I; •�_ll_ � - '_ Ll f.,. ��'� �� �1 �� r lac n ..Coto[. 8 ; ...�_..., ... .� � _ _!�� � .. r,il�1 r' a��14+--•--��� �IIS� frar.or cacsrofxla Inn " - Mm stark,,,&, RESERVOIR Hill ASSESSMENT DISTRICT T; APPENDIX B GENERAL ECONOMIC DATA 7 GENERAL INFORMATION ON THE CITY AND ITS ECONOMY The following information is presented as general background data. The Bonds are payable solely from the Assessments as described herein. The taxing power of the City of Huntington Beach, the State of California, or any political subdivision thereof is not pledged to the payment of the Bonds. Introduction. The City of Huntington Beach is a coastal community of 27.7 square miles located approximately 35 miles south of Los Angeles in Orange County. Lying equidistant between Ventura and San Diego, the City has direct access to a market area of almost 12 million people. The City was incorporated on February 17, 1909. Huntington Beach is a charter city. Its first charter was adopted in May, 1937, and revised in November, 1982. The City is primarily a residential community with a balance of commercial and industrial activities. Some of the City's diverse land uses include oil production, the Huntington Center Mall, a Southern California Edison electrical power plant, and a municipal pier. Huntington Beach has an extensive transportation network, excellent educational and health services, and abundant recreation facilities -- notably, its public beaches. Huntington Beach enjoys a mild Mediterranean-like climate. Prevailing ocean breezes provide clean, clear air, warm, sunny days and cool, crisp nights. Summer temperatures range from 75 to 80 degrees, while winter days are 60 to 70 degrees. Yearly rainfall is approximately 12 inches and humidity averages 65%. The City's nine miles of public beaches attract many visitors throughout the year. Industry. In the early 1900's, oil production brought many new settlers into the area, giving it a sound economic base on which to grow. Today, oil continues to remain a significant industry in the City. More than 20,000 barrels a day are produced from wells in Huntington Beach. Oil interests continue to contribute more than $4 million to the City each year in taxes, permits and fees. Close to 400 companies moved into Huntington Beach over the last four years, bringing 3,000 new jobs and continuing the industrial growth that has attracted close to 900 firms to the City. These firms employ over 40,000 workers in the businesses ranging from the highly sophisticated space technology of McDonnell Douglas Astronautics Company to the diversity of craft industries making surf boards, pottery and stained glass. The two areas zoned for industrial development are the Northwestern Industrial Complex and the Gothard Street Industrial Corridor. Predominant uses of the Northwestern Industrial Complex include light manufacturing, warehousing and some support commercial. This area's principal products are space technology, computer hardware and software, metal fabrication, electronic components, medical supplies, precision instruments and oil field equipment. The Gothard Street Industrial Corridor contains numerous 10 to 20 acre industrial parks and hosts a wide variety of light manufacturing, warehousing and research development firms. B-1 Population. For several years during the 1970's, Huntington Beach was the fastest growing city in the United States. Results of the 1980 census indicated Huntington Beach's population was 170,486, an increase of approximately 47 percent from the 1970 results. The City is currently the third largest in the County with a population of approximately 187,000. TABLE B-1 CITY OF HUNTINGTON BEACH AND ORANGE COUNTY Population (as of January 1) Orange City Population Percent Square County as a Percent of Year Population Increase Miles Population County Population 1910 815 3.57 34,436 2.4% 1920 1,687 107.0% 3.57 61,375 2.7% 1930 3,690 119.0% 3.57 118,647 3.1% 1940 3,738 1.3% 3.57 130,760 2.9% 1950 5,158 38.0% 4.72 216,224 2.4% 1960 11,492 122.8% 23.47 703,925 1.6% 1970 116,400 912.9% 26.73 1,420,386 8.2% 1980 172,200 47.9% 27.20 1,931,570 8.9% 1981 173,393 0.7% 27.20 1,972,724 8.8% 1982 175,714 1.3% 27.20 1,993,831 8.8% 1983 178,706 1.7% 27.20 2,036,390 8.8% 1984 179,990 0.7% 27.20 2,066,498 8.7% 1985 180,000 0.0% 27.20 2,074,326 8.7% 1986 184,280 2.4% 27.20 2,145,709 8.6% 1987 187,000 1.5% 27.20 2,195,652 8.5% 1988 187,700 0.4% 27.20 2,238,700 2.0% -------------------- Source: Department of Development Service, City of Huntington Beach, 1910-1987; California Department of Finance, 1988 B-2 7 Employment. In the last f ive years, industrial employment has increased over 30 percent in Huntington Beach, and industrial businesses have grown by a net of almost 200 firms. Table B-2 lists the largest private employers in the City. TABLE B-2 CITY OF HUNTINGTON BEACH Largest Non-Government Employers 1986 Comoanv Number Emnloved McDonnell Douglas 5,220 Weiser Lock 1,300 General Telephone 1,060 Huntington Humana Hospital 400 Pacifica Hospital 290 Cambro Manufacturing Company 260 American Eagle Wheel Company 60 John Thomas Trucking Company 50 Rainbow Disposal 50 ------------------- Source: Business License Division, City of Huntington Beach Commercial Activity. The variety of commercial locations ranges from small neighborhood convenience centers to the community's regional mall, Huntington Center, at Beach Boulevard and the San Diego Freeway and the newly constructed mixed use Charter Centre. Beach Boulevard offers six miles of commercial uses, including thirteen major automobile dealerships, numerous specialty centers and many restaurants. The City's most unique shopping centers include Old World, Seacliff Village and Peter's Landing. Old World features shops that specialize in imported goods, handcrafted items, unusual gifts and delicacies. The atmosphere is enhanced by cobblestone walkways, arcade rides and strolling musicians. Close to the center of town, Seacliff Village has created a Cape Cod atmosphere that has received architectural acclaim. Its sculptures, murals and ceramic tile walkways, combined with quality shops and restaurants, have created a special environment which has become a favorite among local residents. Peter's Landing, on the water's edge in Huntington Harbour, is modeled after the coastal community of Saint Tropez, France. This center features marina boat rides, a unique architectural environment and excellent restaurants. In additional to these specialty centers, more than 35 neighborhood shopping centers are located conveniently throughout the community. B-3 Table B-3 sets forth State of California statistics on commercial activity in the City for seven calendar years. TABLE B-3 CITY OF HUNTINGTON BEACH Total Taxable Transactions and Number of Sales Permits (in thousands of dollars) Retail Total Taxable Issued Sales Increase In ` Year Sales Transactions Permits Total Sales 1981 $ 743,217 $ 905,201 4,521 ---- 1982 750,405 923,123 5,027 2.0% 1983 886,921 1,043,898 5,265 13.1% 1984 1,013,546 1,212,802 5,537 16.2% 1985 1,137,845 1,348,247 5,656 11.2% 1986 1,212,666 1,455,290 6,041 7.9% 1987 1,277,401 1,544,775 6,263 6.1% ------------------- Source: State Board of Equalization, Taxable Sales in California. Transportation. The community has excellent vehicle access to the surrounding region via Pacific Coast Highway (State Highway 1), Beach Boulevard (State Highway 39) and the San Diego Freeway (Interstate 405). Besides these primary routes, the City is also served by a grid system of major north-south and east-west arterial streets that allow easy access in all directions. Huntington Beach residents, businesspeople and visitors are just minutes away from both John Wayne and Long Beach Airports, Long Beach Harbor and Santa Ana's Amtrak Station. Los Angeles International and Ontario International Airports are less than an hour's drive away from Huntington Beach. Education and Health Care The Huntington Beach public school system provides instruction in basic skills, and advanced instruction in specialized areas at both the elementary and high school levels. Individual education is also emphasized. Two community colleges are located in Huntington Beach. Golden West and Coastline Colleges offer day and evening classes leading to degrees and certificates in all standard subjects. Golden West College has an enrollment approaching 50,000 and is also the home of KOCE, Orange County's public broadcasting television station. Coastline College schedules its courses at various times during the day, in the evenings, and on weekends for the convenience of its students. The community is also close to a number of other colleges and universities in nearby cities. The University of California in Irvine and the California State Universities at Long Beach and Fullerton are all within one-half hour driving time. B-4 Local health care is provided by two full-service, acute-care hospitals and numerous clinics, health-maintenance organizations, convalescent hospitals and other medical facilities. Humana Hospital and Pacifica Community Hospital together provide over 250 beds and offer the latest in sophisticated diagnostic techniques, fully equipped emergency rooms and clinical laboratories, as well as special facilities for intensive care, coronary care, pediatrics, orthopedics and outpatient care. Humana Hospital serves as headquarters for City paramedic training and is the base hospital for paramedic calls. Pacifica Community is the center of an extensive medical-hospital complex that contains their renowned non-profit Cancer Detection Center which provides low-cost screening on an out-patient basis as a public service to the community. Huntington Beach has over 300 practicing doctors, dentists, optometrists, chiropractors, physical therapists and other medical professionals located conveniently throughout the City. Recreation. Huntington Beach has the Pacific Ocean. as its primary natural resource. Nine miles of public beaches and one of the best surfs in the world bring nearly 10 million visitors into the community each year. In addition to surfing, swimming and boating, the beach area has paved trails exclusively for bicyclists and joggers, volleyball courts and barbecues for cookouts. The City's Municipal Pier draws over a million people a year for fishing, sight-seeing, or dining in one of the nearby restaurants. The City's public beaches are not the only places for recreation, in Huntington Beach. The community enjoys over 50 parks, each with a variety of recreational facilities. Central Park, the City's largest inland recreation area, offers an equestrian center and miles of riding trails, lakes for fishing and boating, jogging and physical fitness courses, and a variety of well maintained ball fields, courts and playgrounds. Other recreational amenities within the City's Public Park System include two golf courses, 72 tennis courts, five swimming pools and a boating marina. Recreation programs and other activities for children, adults and families are conducted in three dozen parks throughout the year. Softball, baseball, soccer, volleyball, football, and other organized league sports are offered for children and adults at various times of the year. Community centers are maintained at many local parks where activities are organized and information is disseminated. They host a wide variety of recreational and educational classes and serve as meeting places for various community groups. Many other community facilities are located in .or adjacent to the local parks, such as the Central Library and Cultural Resource Center within Central Park. Other major private or commercial recreational facilities in Huntington Beach include two country clubs, aerobic centers, equestrian centers, a bowling alley, movie theaters and a community playhouse. Nearby are many regional tourist attractions, including Disneyland, Knott's Berry Farm, Anaheim Stadium, Los Alamitos Race Track, the Queen Mary, Spruce Goose and others. B-5 APPENDIX C LEGAL OPINION I LEGAL OPINION CITY OF HUNTINGTON BEACH ASSESSMENT DISTRICT NO. 88-1 (RESEVOIR HILL) 1915 ACT LIMITED OBLIGATION IMPROVEMENT BONDS BOND DATE: JANUARY 17, 1989 V We have examined the record of the proceedings of the City Council of the City of ~ Huntington Beach, California (the "Agency"), for the levy of special assessments and authorization and issuance of bonds upon unpaid assessments (the "Bonds") in what is known and designated as Assessment District No. 88-1 (Resevoir Hill) as set forth and described in a Resolution of Intention, being Resolution No. 5926, as approved and adopted by the City Council of said Agency. Said proceedings were had and taken pursuant to the provisions of the "Municipal Improvement Act of 19I3", being Division 12. of the Streets and Highways Code of the State of California, with Bonds issued pursuant to the provisions of the "Improvement Bond Act of 1915", being Division 10 of said Code. This examination covers said proceedings down to and including the issuance and execution of said Bonds by the Treasurer. No examination has been made of the ownership and use of the property assessed. Said Bonds, in the total principal amount of $1,653,904.59, are dated the 17th day of January, 1989, and are issued in denominations of $5,000.00, or any integral multiple thereof, except for one Bond maturing in the first year of maturity which includes the amount by which the total issue exceeds the maximum integral multiple of $5,000.00 contained therein. Said Bonds are issued in registered form as to both principal and interest and are payable to the registered owner thereof out of the redemption fund for the payment of said Bonds at the office of the designated paying agent, with the first interest installment payable on March 2, 1990, and interest thereafter payable semiannually on September 2nd and March 2nd of each year with principal maturing on September 2nd of each subsequent year until paid. From such examination, we are of the opinion that said proceedings have been taken in accordance with the laws, court decisions and Constitution of the Sate of California, and in substantial compliance with the provisions of the "Municipal Improvement Act of 1913", and that said Bonds, having been issued in duly authorized form and executed by the proper officials and delivered in the manner provided by law, are regularly issued Bonds, and that the payment of each of said Bonds is secured by a valid assessment lien upon certain lands as. described in said assessment. In the event of default in the payment of any installment of principal or interest, the land securing such installments and assessments shall be sold in the same manner in which real property is sold for the non-payment of general property taxes, and shall be subject to redemption in the same manner and to the same extent that real property may be redeemed. i The Agency is not obligated in any way to advance available funds from the General Treasury to cure any deficiency which may occur in the redemption fund and is not obligated to become a purchaser at any tax sale, and the only advancement of funds shall be from the special reserve fund. C-1 There has been included in the .bond issue a "special reserve fund", from which funds will be advanced to the redemption fund to assist in the payment of delinquent assessments, and said monies will also be used to assist in the discharge of assessments. As a cumulative remedy, if any assessment or installment thereof is not paid, the legislative body has ordered that the same be collected by an action brought in the Superior Court to foreclose the lien thereof. The court shall have the power to decree a lien against the lot or parcel covered by the assessment and shall order the premises to be sold on execution as in other cases of the sale of real property. The rights of the owners of the Bonds and the enforceability thereof may be subject to bankruptcy, insolvency, reorganization and other similar laws affecting creditors' rights, or equitable principles relating to or limiting creditors' rights. The Bonds, or a portion thereof if issued in denominations greater than $5,000.00, shall be subject to redemption and payment in advance of maturity in increments of $5,000.00 as provided in Section 8768 of the Act, on the second day of March or September in any year by giving the notice provided in said law to the registered owner thereof at this address as it appears on the registration books of the Agency and by paying principal of the accrued interest on such redeemed amount, together with a premium equal to three percent (3%) of the redeemed principal amount. If less than an entire Bond is redeemed, the unredeemed portion shall be reissued to the registered owner thereof. In our opinion, the interest on said Bonds is excluded from gross income for Federal income tax purposes and is not an item of tax preference for purposes of the Federal alternative minimum tax imposed upon individuals and corporations; it should be noted, however, that for the purposes of computing the alternative minimum tax imposed on corporations (as defined for Federal income tax purposes), such interest is taken into account in determining adjusted net book income (adjusted current earnings for taxable years beginning after December 31, 1989). This opinion presumes that the Agency complies with all requirements of the Internal Revenue Code of 1986 that must be satisfied subsequent to the issuance of the Bonds in order that interest thereon be, or continue to be, excluded from gross income for Federal income tax purposes. The Agency has covenanted to comply with each such requirement. Failure to comply with such requirements may cause the inclusion of interest on the Bonds in gross income for Federal income tax purposes to be retroactive to the date of issuance of the Bonds in gross income for Federal income tax purposes to be retroactive to the date of issuance of the Bonds. In our opinion, the interest on the Bonds is exempt from personal income taxation by the r State of California. Respectfully submitted, ' BROWN & DIVEN i C-2 CITY OF HUNTINGTON BEACH (Orange County, California) CITY COUNCIL Wes Bannister, Mayor Tom Mays, Mayor Pro Tern John Erskine, Councilmember Peter Green, Councilmember Don MacAllister, Councilmember Jim Silva, Councilmember Grace Winchell, Councilmember CITY STAFF Paul Cook, City Administrator Robert J. Franz, Deputy City Admin./Chief of Admin. Services Louis F. Sandoval, Public Works Director Les Evans, City Engineer BOND COUNSEL Brown & Diven Rancho Santa Fe, California ASSESSMENT ENGINEER Black & Veatch Santa Ana, California FINANCIAL ADVISOR Fieldman, Rolapp & Associates Irvine, California FISCAL AGENT/REGISTRAR/PAYING AGENT/TRANSFER AGENT Bank of America National Trust and Savings San Francisco, California . i TABLE OF CONTENTS Pau I. INTRODUCTION.................................................................................................................. I II. REGIONAL LOCATION MAP.......:...............................................................................3 III. VICINITY MAP......................................................................................................................4 IV. THE BONDS . Purposeof the Bonds...........................................................................................................5 Authorityfor Issuance........................................................................................................5 T Description of the Bonds...................................................................................................5 Redemptionof Bonds..........................................................................................................5 RefundingBonds...................................................................................................................6 Registration..............................................................................................................................6 V. SECURITY FOR THE BONDS Limited Obligation of the City Upon Delinquency.............................................7 ReserveFund....................................................................................................................:......7 Covenant to Commence Superior Court Foreclosure...........................................8 Covenants of the City Regarding Arbitrage andRebate.............................................................................................................................8 Priority of Assessment Lien.............................................................................................9 Special Assessments - Article XIIIA and XIIIB of the CaliforniaConstitution...................................................................................................9 AnnualDebt Service..........................................................................................................10 VI. BONDOWNERS' RISKS General......................................................................................................................................I I Bankruptcy and Foreclosure............................................................... ...II ........................ Factors Which May Affect Land Development....................................................12 Limited City Obligation Upon Delinquency.........................................................12 Direct and Overlapping Debt........................................................................................12 VII. THE PROJECT Descriptionof Work...........................................................................................................13 Estimated Projects Costs...................................................................................................13 Method and Formula of Assessment..........................................................................14 Summary of Assessment Proceedings.........................................................................15 Special Assessment Investigation, Limitation and Majority Protest Act of 1931.......................................... ....16 �. Disposition of Surplus Funds........................................................................................16 VIII. THE ASSESSMENT DISTRICT Existing Zoning and Land Use.....................................................................................17 Agencies Which Provide Public Utilities.................................................................17 Access to Parcels to be Assessed..................................................................................18 AssessmentRoll ...................................................................................................................18 EnvironmentalReview......................................................................................................28 Property Tax Delinquencies...........................................................................................28 TheProperty Owners .......................................................................................................29 The Huntington Beach Company.................................................................................30 EncyclopediaLots................................................................................................................30 ii IX. THE CITY Organization...........................................................................................................................31 AssessedValuation..............................................................................................................32 Direct and Overlapping Debt Table...........................................................................33 X. CONCLUDING INFORMATION TaxExemption......................................................................................................................34 Litigation.................................................................................................................................34 NoRating................................................................................................................................34 LegalOpinion........................................................................................................................35 Underwriting..........................................................................................................................35 APPENDIX A - ASSESSMENT DISTRICT DIAGRAM........................................................A-1 APPENDIX B - GENERAL ECONOMIC DATA......................................................................B-1 APPENDIX C - LEGAL OPINION.................................................................................................C-1 The purpose of this Official Statement is to present useful information to the investors of the Improvement Bonds described herein, issued by the City of Huntington Beach (the "City"). The information contained herein has been prepared for the City, under the direction of Fieldman, Rolapp & Associates, Municipal Financial Advisors to the City. This information has been compiled from sources believed to be reliable, but it is presented without audit, and in some instances, without verification by Fieldman, Rolapp & Associates; it is not guaranteed. Any and all references to property values contained herein are based upon information supplied by the sources as noted in the text or to documents on file with the City. While all efforts have been made to be as thorough as possible, no warranties are given concerning the accuracy or completeness of this information. Any statements in this Official Statement involving matters of opinion, whether or not expressly stated, are intended as such and are not to be construed as representations of fact. Neither this information nor any statement which may have been made orally or in writing is to be construed as a contract with the purchasers of any of the Bonds proposed to be issued. All statements made herein are made as of January 16, 1989, as amended from the Preliminary Official Statement, approved December 19, 1988, by the City Council of the City of Huntington Beach, except statistical information or other statement where some other date is indicated by the text. iii IX. THE CITY Organization...........................................................................................................................34 AssessedValuation..............................................................................................................35 Direct and Overlapping Debt Table...........................................................................36 X. CONCLUDING INFORMATION TaxExemption......................................................................................................................37 Litigation.................................................................................................................................37 NoRating.7--....***—*---------...--**-----****—***...***"**"*"****"*******'**'*"*'*'************37 LegalOpinion........................................................................................................................38 Underwriting..........................................................................................................................38 APPENDIX A - ASSESSMENT DISTRICT DIAGRAM.............:..........................................A-1 APPENDIX B - GENERAL ECONOMIC DATA......................................................................B-1 APPENDIX C - LEGAL OPINION.................................................................................................C-1 The purpose of this Preliminary Official Statement is to present useful information to the prospective investors of the Improvement Bonds described herein, proposed to be issued by the City of Huntington Beach (the "City"). This document is not, and shall not constitute. an Official Statement. However, the Preliminary Official Statement will serve as the basis for the Official Statement to be completed by the City upon the award of the Bonds. The information contained herein has been prepared for the City, under the direction of Fieldman, Rolapp & Associates, Municipal Financial Advisors to the City. This information has been compiled from sources believed to be reliable, but it is presented without audit, and in some instances, without verification by Fieldman, Rolapp & Associates; it is not guaranteed. Any and all references to property values contained herein are based upon information supplied by the sources as noted in the text or to documents on file with the City. While all efforts have been made to be as thorough as possible, no warranties are given concerning the accuracy or completeness of this information. Any statements in this Preliminary Official Statement involving matters of opinion, whether or not expressly stated, are intended as such and are not to be construed as representations of fact. Neither this information nor any statement which may have been made orally or in writing is to be construed as a contract with the purchasers of any of the Bonds proposed to be issued. All statements made herein are made as of December 19, 1988, the date of approval of this document as a Preliminary Official Statement by the City Council of the City of Huntington Beach, except statistical information or other statement where some other date is indicated by the text. iii a I APPENDIX B GENERAL ECONOMIC DATA GENERAL INFORMATION ON THE CITY AND ITS ECONOMY The following information is presented as general background data. The Bonds are payable solely from the Assessments as described herein. The taxing power of the City of Huntington Beach, the State of California, or any political subdivision thereof is not pledged to the payment of the Bonds. Introduction. The City of Huntington Beach is a coastal community of 27.7 square miles located approximately 35 miles south of Los Angeles in Orange -County. Lying equidistant between Ventura and San Diego, the City has direct access to a market area of almost 12 million people. The City was incorporated on February 17, 1909. Huntington Beach is a charter city. Its first charter was adopted in May, 1937, and revised in November, 1982. The City is primarily a residential community with a balance of commercial and industrial activities. Some of the City's diverse land uses include oil production, the Huntington Center Mall, a Southern California Edison electrical power plant, and a municipal pier. Huntington Beach has an extensive transportation network, excellent educational and health services, and abundant recreation facilities -- notably, its public beaches. Huntington Beach enjoys a mild Mediterranean-like climate. Prevailing ocean breezes provide clean, clear air, warm, sunny days and cool, crisp nights. Summer temperatures range from 75 to 80 degrees, while winter days are 60 to 70 degrees. Yearly rainfall is approximately 12 inches and humidity averages 65%. The City's nine miles of public beaches attract many visitors throughout the year. Industry. In the early 1900's, oil production brought many new settlers into the area, giving it a sound economic base on which to grow. Today, oil continues to remain a significant industry in the City. More than 20,000 barrels a day are produced from wells in Huntington Beach. Oil interests continue to contribute more than $4 million to the City each year in taxes, permits and fees. Close to 400 companies moved into Huntington Beach over the last four years, bringing 3,000 new jobs and continuing the industrial growth that has attracted close to ` 900 firms to the City. These firms employ over 40,000 workers in the businesses ranging from the highly sophisticated space technology of McDonnell Douglas Astronautics Company to the diversity of craft industries making surf boards, pottery and stained glass. The two areas zoned for industrial development are the Northwestern Industrial Complex and the Gothard Street Industrial Corridor. Predominant uses of the Northwestern Industrial Complex include light manufacturing, warehousing and some support commercial. This area's principal products are space technology, computer hardware and software, metal fabrication, electronic components, medical supplies, precision instruments and oil field equipment. The Gothard Street Industrial Corridor contains numerous 10 to 20 acre industrial parks and hosts a wide variety of light manufacturing, warehousing and research development firms. B-1 Population. For several years during the 1970's, Huntington Beach was the fastest growing city in the United States. Results of the 1980 census indicated Huntington Beach's population was 170,486, an increase of approximately 47 percent from the 1970 results. The City is currently the third largest in the County with a population of approximately 187,000. TABLE B-1 CITY OF HUNTINGTON BEACH AND ORANGE COUNTY Population (as of January 1) Orange City Population Percent Square County as a Percent of Year Population Increase Miles Population County Population 1910 815 3.57 34,436 2.4% 1920 1,687 107.0% 3.57 61,375 2.7% 1930 3,690 119.0% 3.57 118,647 3.1% 1940 3,738 1.3% 3.57 130,760 2.9% 1950 5,158 38.0% 4.72 216,224 2.4% 1960 11,492 122.8% 23.47 703,925 1.6% 1970 116,400 912.9% 26.73 1,420,386 8.2% 1980 172,200 47.9% 27.20 1,931,570 8.9% 1981 173,393 0.7% 27.20 1,972,724 8.8% 1982 175,714 1.3% 27.20 1,993,831 8.8% 1983 178,706 1.7% 27.20 2,036,390 8.8% 1984 179,990 0.7% 27.20 2,066,498 8.7% 1985 180,000 0.0% 27.20 2,074,326 8.7% 1986 184,280 2.4% 27.20 2,145,709 8.6% 1987 187,000 1.5% 27.20 2,195,652 8.5% 1988 187,700 0.4% 27.20 2,238,700 2.0% -------------------- Source: Department of Development Service, City of Huntington Beach, 1910-1987; California Department of Finance, 1988 B-2 Employment. In the last five years, industrial employment has increased over 30 percent in Huntington Beach, and industrial businesses have grown by. a net of almost 200 firms. Table B-2 lists the largest private employers in the City. TABLE B-2 7 _ CITY OF HUNTINGTON BEACH Largest Non-Government Employers 1986 , Company Number Employed McDonnell Douglas 5,220 Weiser Lock 1,300 General Telephone 1,060 Huntington Humana Hospital 400 Pacifica Hospital 290 Cambro Manufacturing Company 260 American Eagle Wheel Company 60 John Thomas Trucking Company 50 Rainbow Disposal 50 ------------------- Source: Business License Division, City of Huntington Beach Commercial Activity. The variety of commercial locations ranges from small neighborhood convenience centers to the community's regional mall, Huntington Center, at Beach Boulevard and the San Diego Freeway and the newly constructed mixed use Charter Centre. Beach Boulevard offers six miles of commercial uses, including thirteen major automobile dealerships, numerous specialty centers and many restaurants. The City's most unique shopping centers include Old World, Seacliff Village and Peter's Landing. Old World features shops that specialize in imported goods, handcrafted items, unusual gifts and delicacies. The atmosphere is enhanced by cobblestone walkways, arcade rides and strolling musicians. Close to the center of town, Seacliff Village has created a Cape Cod atmosphere that has received architectural acclaim. Its sculptures, murals and ceramic tile walkways, combined with quality shops and restaurants, have created a special environment which has become a favorite among local residents. Peter's Landing, on the water's edge in Huntington Harbour, is modeled after the coastal community of Saint Tropez, France. This center features marina boat rides, a unique architectural environment and excellent restaurants. In additional to these specialty centers, more than 35 neighborhood shopping centers are located conveniently throughout the community. B-3 Table B-3 sets forth State of California statistics on commercial activity in the City for seven calendar years. TABLE B-3 CITY OF HUNTINGTON BEACH Total Taxable Transactions and Number of Sales Permits (in thousands of dollars) Retail Total Taxable Issued Sales Increase In Year Sales Transactions Permits Total Sales 1981 $ 743,217 $ 905,201 4,521 ---- 1982 750,405 923,123 5,027 2.0% 1983 886,921 1,043,898 5,265 13.1% 1984 1,013,546 1,212,802 5,537 16.2% 1985 1,137,845 1,348,247 5,656 11.2% 1986 1,212,666 1,455,290 6,041 7.9% 1987 1,277,401 1,544,775 6.263 6.1% ------------------- Source: State Board of Equalization, Taxable Sales in California. Transportation. The community has excellent vehicle access to the surrounding region via Pacific Coast Highway (State Highway 1), Beach Boulevard (State Highway 39) and the San Diego Freeway (Interstate 405). Besides these primary routes, the City is also served by a grid system of major north-south and east-west arterial streets that allow easy access in all directions. Huntington Beach residents, businesspeople and visitors are just minutes away from both John Wayne and Long Beach Airports, Long Beach Harbor and Santa Ana's Amtrak Station. Los Angeles International and Ontario International Airports are less than an hour's drive away from Huntington Beach. Education and Health Care The Huntington Beach public school system provides instruction in basic skills, and advanced instruction in specialized areas at both the elementary and high school levels. Individual education is also emphasized. Two community colleges are located in Huntington Beach. Golden West and Coastline Colleges offer day and evening classes leading to degrees and certificates in all standard subjects. Golden West College has an enrollment approaching 50,000 and is also the home of KOCE, Orange County's public broadcasting television station. Coastline College schedules its courses at various times during the day, in the evenings, and on weekends for the convenience of its students. The community is also close to a number of other colleges and universities in nearby cities. The University of California in Irvine and the California State Universities at Long Beach and Fullerton are all within one-half hour driving time. B-4 Local health care is provided by two full-service, acute-care hospitals and numerous clinics, health-maintenance organizations, convalescent hospitals and other medical facilities. Humana Hospital and Pacifica Community Hospital together provide over 250 beds and offer the latest in sophisticated diagnostic techniques, fully equipped emergency rooms and clinical laboratories, as well as special facilities for intensive care, coronary care, pediatrics, orthopedics and outpatient care. Humana Hospital serves as headquarters for City paramedic training and is the base hospital for paramedic calls. r ' Pacifica Community is the center of an extensive medical-hospital complex that contains their renowned non-profit Cancer Detection Center which provides low-cost screening on an out-patient basis as a public service to the community. Huntington Beach has over 300 practicing doctors, dentists, optometrists, chiropractors, physical therapists and other medical professionals located conveniently throughout the City. Recreation. Huntington Beach has the Pacific Ocean as its primary natural resource. Nine miles of public beaches and one of the best surfs in the world bring nearly 10 million visitors into the community each year. In addition to surfing, swimming and boating, the beach area has paved trails exclusively for bicyclists and joggers, volleyball courts and barbecues for cookouts. The City's Municipal Pier draws over a million people a year for fishing, sight-seeing, or dining in one of the nearby restaurants. The City's public beaches are not the only places for recreation in Huntington Beach. The community enjoys over 50 parks, each with a variety of recreational facilities. Central Park, the City's largest inland recreation area, offers an equestrian center and miles of riding trails, lakes for fishing and boating, jogging and physical fitness courses, and a variety of well maintained ball fields, courts and playgrounds. Other recreational amenities within the City's Public Park System include two golf courses, 72 tennis courts, five swimming pools and a boating marina. Recreation programs and other activities for children, adults and families are conducted in three dozen parks throughout the year. Softball, baseball, soccer, volleyball, football, and other organized league sports are offered for children and adults at various times of the year. Community centers are maintained at many local parks where activities are organized and information is disseminated. They host a wide variety of recreational and educational classes and serve as meeting places for various community groups. Many other community facilities are located in or adjacent to the local parks, such as the Central Library and Cultural Resource Center within Central Park. Other major private or commercial recreational facilities in Huntington Beach include two country clubs, aerobic centers, equestrian centers, a bowling alley, movie: theaters and a community playhouse. Nearby are many regional tourist attractions, including Disneyland, Knott's Berry Farm, Anaheim Stadium, Los Alamitos Race Track, the Queen Mary, Spruce Goose and others. B-5 i i i APPENDIX C LEGAL OPINION r r - I . PRELIMINARY OFFICIAL STATEMENT DATED DECEMBER 15, 1988 NEW ISSUE NOT RATED In the opinion of Bond Counsel, based on existing statutes, regulations, rulings, and court decisions and assuming, among other matters, compliance with certain covenants interest on the Bonds is excluded from gross income for federal income tax purposes and is exempt from State L.E- c of California personal income taxes. In the opinion of Bond Counsel, interest on the Bonds is not a specific preference item for purposes of the ca a) c federal individual or corporate alternative minimum taxes although Bond Counsel observes that it is included in adjusted net book income and .E adjusted current earnings in calculated corporate alternative minimum taxable income. Bond Counsel expresses no opinion regarding other federal income tax consequences relating to the accrual or receipt of interest on the Bonds (see "Tax Exemption"herein). d 0) NOT TO EXCEED z 4) $1,774,511.39* W q CITY OF HUNTINGTON BEACH o (Orange County, California) y Limited Obligation Improvement Bonds i C Assessment District No. 88-1 (Reservoir Hill) q W.9 Dated: January 17, 1989 Due: September 2, as shown below d All of the acquisition and construction of improvements shall be undertaken as authorized under provisions of the Municipal Improvement Act of 1913 (Division 12 of the Streets and Highways Code).The Bonds are issued pursuant to provisions of the 2 d Improvement Bond Act of 1915 (Division 10 of said Streets and Highways Code). 4D t m The Bonds are issued as fully registered Bonds in the denomination of$5,000 or any integral multiple thereof (except for one Bond maturing in 1990 which will be issued in an irregular denomination that exceeds$5,000 or any integral multiple thereof by ) . Interest is payable on March 2, 1990,and semiannually thereafter on September 2 and March 2,of each year. >; Principal of and premium, if any, on the Bonds will be payable at the principal corporate trust office of Bank of America, E c National Trust and Savings, Los Angeles, California, as Fiscal Agent, Registrar and Paying Agent. Interest on the Bonds is payable by check or draft mailed to the registered owners thereof as of the 15th day of the month next preceding the interest 0 cc E 5 payment date. ca e a The Bonds are subject to redemption on any September 2 or March 2 in advance of maturity upon giving 30 days prior cc 0 0cr notice and upon payment of the principal and interest accrued thereon to the date of redemption,plus a redemption premium of o three percent (3%) of the principal amount of the Bonds to be redeemed. c may- Under the provisions of the Improvement Bond Act of 1915, installments of principal and interest sufficient to meet annual o-3� debt service on the Bonds are included on the regular County tax bills to owners of property against which there are unpaid U Z Ma assessments.These annual installments are to be aid into the Redemption Fund,to be held b the Fiscal Agent and used to a Mo`—'t P P � Y g PY d c debt service on the Bonds as it becomes due. 960 To provide funds for payment of the Bonds and the interest thereon as a result of any delinquent installments,the City will `M cestablish a special Reserve Fund and deposit therein Bond proceeds in the original amount of six percent (6%) of the aggregate a principal amount of the Bonds. W c S r3' If a delinquency occurs in the payment of any assessment installment, the Fiscal Agent, at or before the end of the fiscal 0 year of delinquency, has a duty to transfer into the Redemption Fund the amount of the delinquency out of available funds of a Assessment District No. 88-1. Available funds consist of the balance in the Reserve Fund. This duty of the Fiscal Agent is a as continuing during the period of delinquency, until reinstatement, redemption or sale of the delinquent property. There is no 0.0 assurance that funds will be available for this purpose and if, during the period of delinquency, there are insufficient available ° c c funds, a delay may occur in payments to the owners of the Bonds. tom° The City has elected in the proceedings not to be obligated to advance available funds from the City's treasury in the event 0 o y of a redemption fund deficiency; provided, however,that its election shall not prevent the City from, in its sole discretion, so prn , advancing funds for such purpose as otherwise provided in the 1915 Act. ma 26 c The City has covenanted to initiate judicial foreclosure in the event of a delinquency and to commence the procedure and o 2 diligently prosecute to judgment and sale, subject to certain exceptions, within the time frame described herein. sue, H:rj Neither the faith and credit nor the taxing power of the City,the State of California,or any political subdivision thereof is '0 0 0 pledged to the payment of the Bonds. am The information set forth in this Preliminary Official Statement including information in the section herein entitled �► 0- "Bondowners' Risks" should be read in its entirety. d ESTIMATED MATURITY SCHEDULE* N = BONDS MATURING PRINCIPAL BONDS MATURING PRINCIPAL 3 SEPTEMBER 2 AMOUNT RATE SEPTEMBER 2 AMOUNT RATE CA R v 3 1990 2000 lE 1991 2001 O e 1992 2002 cc E o 1993 2003 ,i 1994 2004 Co v 1995 2005 N ca 1996 2006 a.L c 1998 2008 O cc 1999 2009 The Bonds are offered when,as,and if issued and delivered to the Underwriters subject to the approval of Brown&Diven,Rancho Santa Fe, California, Bond Counsel. It is expected that the Bonds in definitive form will be available for delivery in Los Angeles, California on or about January 17, 1989. Dated: January , 1989 STONE & Y O U N G B E R G * Preliminary; subject to change. OFFICIAL STATEMENT NEW ISSUE NOT RATED In the opinion of Bond Counsel, based on existing statutes, regulations, rulings, and court decisions and assuming, among other matters, compliance with certain covenants interest on the Bonds is excluded from gross income for federal income tax purposes and is exempt from State of California personal income taxes.In the opinion of Bond Counsel, interest on the Bonds is not a specific preference item for purposes of the federal individual or corporate alternative minimum taxes although Bond Counsel observes that it is included in adjusted net book income and adjusted current earnings in calculated corporate alternative minimum taxable income. Bond Counsel expresses no opinion regarding other federal income tax consequences relating to the accrual or receipt of interest on the Bonds (see "Tax Exemption"herein). $1,653,904.59 CITY OF HUNTINGTON BEACH (Orange County, California) Limited Obligation Improvement Bonds Assessment District No. 88-1 (Reservoir Hill) Dated: January 17, 1989 Due: September 2, as shown below All of the acquisition and construction of improvements shall be undertaken as authorized under provisions of the Municipal Improvement Act of 1913 (Division 12 of the Streets and Highways Code).The Bonds are issued pursuant to provisions of the Improvement Bond Act of 1915 (Division 10 of said Streets and Highways Code). The Bonds are issued as fully registered Bonds in the denomination of$5,000 or any integral multiple thereof (except for one Bond maturing in 1990 which will be issued in an irregular denomination that exceeds$5,000 or any integral multiple thereof by $3,904.59). Interest is payable on March 2, 1990, and semiannually thereafter on September 2 and March 2, of each year. Principal of and premium, if any, on the Bonds will be payable at the principal corporate trust office of Bank of America, National Trust and Savings, San Francisco, California, as Fiscal Agent, Registrar and Paying Agent (the "Fiscal Agent"). Interest on the Bonds is payable by check or draft mailed to the registered owners thereof as of the 15th day of the month next preceding the interest payment date. The Bonds are subject to redemption on any September 2 or March 2 in advance of maturity upon giving 30 days prior notice and upon payment of the principal and interest accrued thereon to the date of redemption,plus a redemption premium of three percent (3%) of the principal amount of the Bonds to be redeemed. Under the provisions of the Improvement Bond Act of 1915,installments of principal and interest sufficient to meet annual debt service on the Bonds are included on the regular County tax bills to owners of property against which there are unpaid assessments.These annual installments are to be paid into the Redemption Fund,to be held by the Fiscal Agent and used to pay debt service on the Bonds as it becomes due. To provide funds for payment of the Bonds and the interest thereon as a result of any delinquent installments,the City will establish a special Reserve Fund and deposit therein Bond proceeds in the original amount of six percent (6%) of the aggregate principal amount of the Bonds. If a delinquency occurs in the payment of any assessment installment, the Fiscal Agent, at or before the end of the fiscal year of delinquency, has a duty to transfer into the Redemption Fund the amount of the delinquency out of available funds of Assessment District No. 88-1. Available funds consist of the balance in the Reserve Fund. This duty of the Fiscal Agent is continuing during the period of delinquency, until reinstatement, redemption or sale of the delinquent property. There is no assurance that funds will be available for this purpose and if, during the period of delinquency, there are insufficient available funds, a delay may occur in payments to the owners of the Bonds. The City has elected in the proceedings not to be obligated to advance available funds from the City's treasury in the event of a redemption fund deficiency; provided, however, that its election shall not prevent the City from,in its sole discretion, so advancing funds for such purpose as otherwise provided in the 1915 Act. The City has covenanted to initiate judicial foreclosure in the event of a delinquency and to commence the procedure and diligently prosecute to judgment and sale, subject to certain exceptions, within the time frame described herein. Neither the faith and credit nor the taxing power of the City,the State of California,or any political subdivision thereof is pledged to the payment of the Bonds. The information set forth in this Official Statement including information in the section herein entitled `Bondowners' Risks" should be read in its entirety. MATURITY SCHEDULE BONDS MATURING PRINCIPAL BONDS MATURING PRINCIPAL SEPTEMBER 2 AMOUNT RATE SEPTEMBER 2 AMOUNT RATE 1990 $ 3,904.59 6.50% 2000 $ 80,000.00 7.90% 1991 40,000.00 6.70 2001 85,000.00 7.90 1992 45,000.00 6.90 2002 90,000.00 8.00 1993 50,000.00 7.00 2003 100,000.00 8.00 1994 50,000.00 7.20 2004 105,000.00 8.00 1995 55,000.00 7.40 2005 115,000.00 8.10 1996 60,000.00 7.50 2006 125,000.00 8.10 1997 65,000.00 7.60 2007 135,000.00 8.10 1998 70,000.00 7.70 2008 145,000.00 8.10 1999 75,000.00 7.80 2009 160,000.00 8.10 The Bonds are offered when,as,and if issued and delivered to the Underwriters subject to the approval of Brown&Diven,Rancho Santa Fe, California, Bond Counsel.It is expected that the Bonds in definitive form will be available for delivery in Los Angeles, California on or about January 26, 1989. Dated:January 16, 1989 STONE & Y O U N G B E R G STONE & YOUNGBERG MEMBERS: PACIFIC STOCK EXCHANGE December 19, 1988 The Honorable Members of the City Council City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 Re: Offer to Purchase Bonds in an amount not to Exceed $1,774,511.39 City of Huntington Beach • Assessment District No. 88-1 Limited Obligation Improvement Bonds (Reservoir Hill) Dear Members of the City Council: Pursuant to discussions with Bond Counsel, Brown & Diven, and our investigation and analysis of the above captioned bond issue, Stone & Youngberg (the "Underwriter") , hereby offers to purchase all of the above-referenced bonds subject to the following conditions: 1. The bonds shall be issued pursuant to the Improvement Bond Act of 1915. 2 . The par value of the bonds shall be in an amount not to exceed $1,774, 511.39. The bonds shall mature in each year and in the amounts and at the rates of interest to be set forth on the Maturity Schedule to be delivered prior to execution of this Purchase Contract and attached hereto as Exhibit "A" . 3 . The bonds shall be issued in denominations of $5,000 or in integral multiples thereof and one bond in an odd amount due in 1990 as may be requested by the Underwriter. 4 . All bonds shall be issued in registered form in accordance with instructions to be determined by the Underwriter prior to closing. The City shall retain Bank of America, National Trust and Savings. as Fiscal Agent, Registrar, Paying Agent and Transfer Agent. 15260 VENTURA BOULEVARD•SHERMAN OAKS,CALIFORNIA 91403•(818)789.2663 The Honorable Members of the City Council City of Huntington Beach December 19, 1988 Page 2 5. The bonds shall be dated January 17, 1989 and delivered by January 17, 1989 unless a delay is mutually agreed upon by the City and the Underwriter. 6. The bonds shall mature from September 2, 1990 through September 2, 2009. 7. The City shall establish a reserve fund in an amount equal to six percent (6%) of the original proceeds of the bonds and such reserve fund shall be established from bond proceeds. 8. The City shall covenant to commence judicial foreclosure of delinquent assessments within 150 days after receiving notice of any delinquency. 9. The purchase price shall be 97.5% of par (a discount of 2.5%) . 10. The purchase price of the bonds shall be paid in full upon delivery to the Underwriter of the bonds accompanied by: (a) The unqualified approving legal opinion of Brown & Diven, Bond Counsel. The legal opinion shall be printed on the bonds at no charge to us. (b) A no-litigation certificate of the City. (c) The opinion of Brown & Diven, Bond Counsel, dated the date of Closing, to the effect that (a) the Bonds are exempt from registration under the Securities Act of 1933, as amended, and the Resolution is exempt from qualification as an indenture pursuant to the Trust Indenture Act of 1939, as amended; and (b) nothing has come to their attention which would lead them to believe that the Official Statement (excluding therefrom the financial statements and the statistical data included in the Official Statement, as to which no opinion. need be expressed) contains an i 'I The Honorable Members of the City Council City of Huntington Beach December 19, 1988 Page 3 untrue statement of material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading_ 11. The Underwriter shall pay all of its own out-of- pocket. The City shall pay all other fees and expenses from the proceeds of the Bonds. 12. The obligation of the Underwriter to accept delivery of and pay for the bonds on the closing date shall be subject, at the option of the the Underwriter, to the following additional conditions: (a) At the Closing Date, the resolution authorizing issuance of the Bonds and any other applicable agreement shall be in full force and effect, and shall not have been amended, modified or supplemented except as may have been agreed in writing by the Underwriter, and there shall have been taken in connection therewith, with the issuance of the bonds and with the transactions contemplated thereby and by this Purchase Contract, all such actions as, in the opinion of Brown & Diven, Bond Counsel for the City, shall be necessary and appropriate; (b) Between the date hereof and the closing date, the market price or marketability of the bonds at the initial offering prices set forth herein shall not have been materially adversely affected, in the judgment of the Underwriter (evidenced by a written notice to the City terminating the obligation of the Underwriter to accept delivery of and pay for the bonds) by reason of any of the following: (1) Legislation enacted or pending by the Congress of the United States of America or a decision rendered by a court established under Article III of the 'Constitution of the United Sates of America or by the Tax Court of the United States of America or an order, The Honorable Members of the City Council City of Huntington Beach December 19, 1988 Page .4 ruling, regulation (final, temporary or proposed) , press release or other form of notice issued or made by or on behalf of the Treasury Department, the Joint Tax Committee, or the Internal Revenue Service of the United States of America, with the y purpose or effect, directly or indirectly, of imposing federal income taxation upon the interest as would be received by the owners of the bonds; (2) Legislation enacted or pending by the Congress of the United States of America, or an order, decree or injunction issued by any court of competent jurisdiction or an order, ruling, regulation (final, temporary or proposed) , press release or other form of notice issued or made by or on behalf of the Securities and Exchange Commission, or any other governmental agency having jurisdiction of the subject matter, to the effect that obligations of the general character of the bonds, or the bonds, including any or all underlying arrangements, are not exempt from registration under or other requirements of the Securities Act of 1933, as amended, or that the Resolution is not exempt from qualification under or other requirements of the Trust Indenture Act of 1939, as amended, or that the issuance, offering or sale of obligations of the general character of the bonds, or of the bonds including any or all underwriting arrangements, as contemplated hereby or by the Official Statement or otherwise is or would be in violation of the federal securities laws as amended and then in effect; (3) Any amendments to the Federal or California Constitution or action by any Federal or California court, legislative body, regulatory body or other authority materially adversely affecting the tax i 'i The Honorable Members of the City Council City of Huntington Beach December 19, 1988 Page 5 status of the City, its property, income, securities (or interest thereon) , validity or enforceability of the assessments or the ability of the City to acquire the improvements or undertake the financing as contemplated by the Resolution and the Official Statement; or (4) Any event occurring, or information becoming known which, in the judgment of the Underwriter, makes untrue or misleading in any material respect any statement or information contained in the Official Statement concerning the City, the Improvement Project, the •landowners, or the property assessed. 13. This bid is conditioned upon the successful consummation of the Assessment District proceedings and should said proceedings for any reason fail to be successfully consummated, there shall be no obligation on the part of the City. Respectfully submitted, STONE & YOUNGBERG By: Accepted this day of December, 1988 CITY OF HUNTINGTON BEA Title: Mayor APPrG J ? G:i I 't:I1 Toff, i1,Y �':t,ornay By:, Depu-ty f"ity Attorney Attest: 40 4�� City Clerk The Honorable Members of the City Council City of Huntington Beach December 19, 1988 Page 6 EXHIBIT A $1,774,511.39* City of Huntington Beach Assessment District No. 88-1 Limited Obligation Improvement Bonds (Reservoir Hill) Principal* Maturity Date Amount Interest Rate 9/02/90 $ 4,511.39 6.500 9/02/91 40,000.00 6.700 9/02/92 50, 000.00 6.900 9/02/93 50, 000.00 7.000 9/02/94 55, 000.00 7.200 9/02/95 60,000.00 7.400 9/02/96 65,000.00 7.500 9/02/97 70, 000. 00 7.600 9/02/98 75, 000. 00 7.700 9/02/99 80,000. 00 7.800 9/02/00 85, 000.00 7.900 9/02/01 90, 000.00 7.900 9/02/02 100,000. 00 8. 000 9/02/03 105, 000.00 8.000 9/02/04 115,000.00 8.000 9/02/05 125,000.00 8. 100 9/02/06 135, 000.00 8.100 9/02/07 145, 000. 00 8.100 9/02/08 155, 000. 00 8.100 9/02/09 170, 000. 00 8. 100 Total $1,774,511.39 The net interest cost, which includes a discount of 2.50%, is 8.15%. The average coupon rate is 7.97%. All Bonds are re-offered at par. * Subject to change upon close of cash collection period on January 5, 1989. CERTIFICATE OF OOMPLIANCE WITH FILING REQUIREMENT CITY OF HUNTINGTON BEACH) COUNTY OF ORANGE ) S.S. STATE OF CALIFORNIA ) The undersigned, under penalty of perjury, certifies that the signed original of the Internal Revenue Service Form 8038-G, a copy of which is attached hereto, was mailed to the following address on the 26th day of January , 1989. Internal Revenue Service Center Philadelphia, Pennsylvania 19255 Executed this 26th day of January , 1989 at Huntington Beach , Donald Watson C ` City Treasurer City of Huntington Beach i I �t 0 VC,-, 01 (D?cambor bee6) ('0vom r�iln eMal Bond d Ogg az �a®wa is�s o�ao D=gtvam 07 tPO gr000ury . D.UVOOGI 30016pn 1 0(o) Qy�rps I3-9)-09 maneN I?txanua torvtco (UDo lr®rft DOSO-CDC W kzuo Vrizo 1a vrAor S3IN.M.) Q "'Re2ortI!jg Authority - Check box if Ahiondod ROttdPR D k3Du:Jr'a tbrrt;t ^ - E 1aDK�rD Om�Or c�tMrlKlttran nymtKt City of Huntington Beach 95-6000723W a pw"b*,Ono stn00 Main Street aoemfl 1 D crty W lawn. e.D od by toe 6 t W iLS tuntington Beach, California 92648 -�L6- 9 OO a of Issue (chech box(es)that applies)7 Check box if bonds are tax or other revenue anticipation bonds D 0 bUQ Price 0 Check box if bonds are in the form of a tease or installment sale D ❑ 0 ❑ Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IlO ❑ bQalth and hospital . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 ❑ YransporUtion . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 ® Public safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 l❑ Environment(including sewage bonds) . . . . . . . . . . . . . . . . . . . . 24 Housing . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . is ❑ utilities . . . . . . . . . . . . . aG ® other. Describe(we instructions)D City of Hunt n ton Beaeha Assessme t 1, 653 904. 59 District No. 88-1 (Reservoir Hill) 10)MOMI Description of Bonds (a) (o) f� O (o) M (e) stotoo rtreemptron naarttod V) mtar>Zst moturrty date Interest rote Issue Dace ce at n'.aturn x oraro motuntr V�iC cos; 17 Final maturity — — , 13 Entire Issue . j;i;;;;;%(i/�/ii 1f/;%"�/. %i%i%j�/,%%.:::,� y 7V F�• J 7 V 1 s s - � o �3(bI uses of Original Proceeds of Issue (including underwriters'discount) 19 Proceeds used for accrued interest . . . . . . . . . . . . . . . . . . . 19 20 Proceeds used for bond issuance costs(including underwriters'discount) . . . . . . . . . . 2® 21 Proceeds used for credit enhancement . . . . . . . . . . . . . . . . . . . . 21 N IA 22 Proceeds allocated to reasonably required reserve or replacement fund . . . . . . . . . . 22 99 , 234. 27 23 Proceeds used to refund prior issues . . . . . . 23 N/A 24. Wonrefundin proceeds of the issue(subtract lines 20.21.22.and 23 from line 1B.column Ic)) 24 , 189 , 445M G} 3C? Dow-1 Lion of Refunded Bonds(complete this part only for relundin bonds 25 Enter the rernainirtS weighted average maturity of the bonds to be refunded . . . . D year' 26 Enter the last date on which the refunded bonds will be called . . . . . . . . . . . . . D 27 Errter the Wks)the refunded bonds were Issued D i�e� C,�ii�eQUafleous 2G Enter the amount(if any)of the state volume cap allocated to this issue . . . . . . . . . . D 29 Arbitrage rebate. a Check box if the small governmental unit exception to the arbitrage rebate requirement applies . . . . . . . . . . . . r b Check box if the 6-month temporary Investment exception to the arbitrage rebate requtremen;is expected to apply . . . . . f e Check box if you expect to earn and rebate arbitrage profits to the U.S . . . . . . . . . . . 30 Enter the amount of the bonds designated by the issuer unde, sectior•265(b)(3XB)(It) . . . . . D NSA 31 Pooled financings' _ a Check box if any of the proceeds of this issue are to be used to make loans to other governmental units D ❑ and enter the amount D O b Check box if this issue is a loan made from the proceeds of another tax-exempt issue D ❑ and enter the name of the issuer D and the date of the issue D LprOer parch es of gxrlury.I az.we that I nave e•ominm this return one accompanying SCnaow"orto stotements ono to the b*&I of my anoarecge one wtiei. Please tp*)ore irks.eprrat't.one compteie Slul 1-26-89 D City Treasurer Were D Sgnotwe of officer Date Title For Papenzarh Reduction Act Flotice. age page 1 of the Inatructions. RsrrP 9038-G (:2-aE II $1,653,904.59 • CITY OF HUNTIN7XV BEACH ASSESSMENT DISTRICT NO. 88-1 (RESERVOIR HILL) LIMITED OBLIGATION IMPWVEMENT BONDS (THE 11BOtW") SIGNATURE AND TEA-LITIGATION CERTIFICATE We, Donald Watson and Connie Brockway, as CITY TREASURER and CITY CLERK, respectively, of the CITY OF HUNTINGTON BEACH, CALIFORNIA, hereby certify that we signed and executed the above described Bonds issued by said City. Said City has conducted proceedings pursuant to the "Municipal Improvement Act of 1913", (Division 12 of the Streets and Highways Code of the State of California) , said Assessment District being designated as ASSESSMENT DISTRICT NO. 88-1 (RESERVOIR HILL). Said City has issued Bonds pursuant to the provisions of the "Improvement Bond Act of 1915", being Division 10 of said Code, in order to finance and pay for the costs and expenses for said Assessment District. Said Bonds bear interest from their date to their maturity at rates of not to leiexceed eight and one-tenth percent (8.10%) per annum, with interest payment dates being on March 2nd and September 2nd, as set forth by law. We hereby certify that the signature on each of said Bonds is the true and proper signature for the execution thereof. We further certify that said Bonds have been in all respects duly executed pursuant to law; that the proceedings or records which have been certified to the purchasers of the Bonds or to the attorney approving the same, have not been repealed, amended or changed in any manner, except as shown by the proofs furnished; and that there has been no material change in the facts affecting the Bonds, except as shown by proofs so furnished. We further certify that there is no controversy or litigation now pending concerning the organization of said City, or our right to our offices, or the levy or collection of assessments to pay the principal and interest of the Bonds, or in any manner questioning our right to issue said Bonds, or otherwise questioning the validity thereof. Executed this 26th day of January , 1989 at Huntington Beach , California. CITY TREASURER CITY OF HUNTING70N BEACH STATE OF CALIFORNIA ITY CLERK CITY OF HUNTINGTON STATE OF CALIFORNIA $1,653,904.59 CITY OF HUNTIIG ON BEACH ASSESSMENT DISTRICT NO. 88-1 (RESERVOIR HILL) LIMITED OBLIGATION IMPROVEMENT BONDS (THE "BONDS") NON-ARBITRAGE CERTIFICATE I, Donald Watson, hereby CERTIFY as follows: 1 . I am the duly appointed and acting Treasurer of the CITY OF HUNTINGTON BEACH, CALIFORNIA ("City"). 2. The City has conducted proceedings pursuant to the provisions of the "Municipal Improvement Act of 1913", being Division 12 of the Streets anti Highways Code of the State of California, and has issued the above referenced Bonds pursuant to the provisions of the "Improvement Bond Act of 1915", being Division 10 of said Code, in an Assessment District (mown and + designated as ASSESSMENT DISTRICT NO. 88-1 (RESERVOIR HILL) . 3. THE FOLLOWING IS ALL TRUE AND CORRECT AS IT RELATES TO SAID ASSESSMENT DISTRICT: A. All Bonds are being delivered to the purchaser, Stone & Youngberg, on the date indicated below. B. Except as specified in 3.C. below, the Bonds are being issued for the purpose of financing the costs and expenses necessary and incidental for the construction of certain public improvements to be owned and operated by the City, together with appurtenances and acquisition where necessary, in the referenced assessment district, and the funding of the Special Reserve Fund. C. Except as specified immediately hereinafter, the improvements consist of facilities that provide essential governmental functions, such as municipal water facilities, all of which are to be owned by public agencies (the "Project"). Less than five percent (5%) of the bond proceeds shall be utilized to finance improvements to be owned by an entity other than a public entity. D. The construction of the improvements will comience on or about the date of this Certificate, and proceed with due diligence to completion pursuant to the contracts as awarded for these proceedings. It is expected that the construction of said improvements will be completed within three (3) years thereafter. E. The original proceeds of the Bonds sold, plus cash collections, and plus anticipated investment earnings thereon, do not exceed the amount necessary for the purposes stated herein. F. All interest earned on the amounts in the Improvement Fund will be expended within three (3) years of receipt of bond proceeds. i i G. The payment of the principal and interest on the Bonds will be derived from the levy and collection of assessments placed on the properties in the Assessment District in accordance with the proceedings contained in the "Municipal Improvement Act of 1 1913", being Division 12 of the Streets and Highways Code of the State of California. The assessments are of general application, will be levied on all property within the Assessment District, and represent mandatory assesments based upon the special benefit that each parcel is deriving from the Project. tl. The City as determined that the establishment of a Reserve Fund in the amount of $99,234.27, being approximately 6% of the original principal amount of the Bonds, is reasonable and necessary in order to ensure the timely payment of debt service on the Bonds. - The initial deposit to the Reserve Fund is less than 10% of the aggregate principal amount of the Bonds, maximum annual debt service, and 125% of average annual debt service on the Bonds. If at any time the amount of interest earnings on monies in the Reserve Fund, exceeds an amount equal to 10% of the aggregate principal amount of the Bonds, or such other maximum as authorized by Section 148 of the Internal Revenue Code of 1986 (the "Code") and the regulations promulgated thereunder, such excess will be transferred to the Redemption Fund, and expended for the advance retirement of Bonds within 13 months of the date of occurrence of such excess. I. The Redemption Fund will be used primarily to achieve a proper matching of revenues and debt service on the Bonds each year and will be fully depleted at least once a year except for a reasonable carry-over amount not to exceed the greater of one year's earnings on the Redemption Fund .or 1/12 of the annual debt service on the Bonds. Amounts contributed to the Redemption Fund will be spent within 13 months of the date of such deposit. Accordingly, amounts in the Redemption Fund may be invested at a yield in excess of the yield on the Bonds. J. No other governmental obligations are being issued at substantially the same time and/or sold pursuant to a common plan of financing that will be paid out of or have substantially the same claim to be paid out of substantially the same source of funds as the Bonds. No portion of the proceeds of the Bonds will be used to replace other funds of the Assessment District available for the financing of the Project. K. The only sinking funds with respect to the Bonds are the Reserve Fund and the Redemption Fund. The City does not expect to create or establish any other sinking or similar fund with respect to the Bonds. No other amounts in any other accounts or funds of the City are reserved or pledged exclusively for debt service on the Bonds and it is not expected that any such other accounts or funds will be so used nor is there any reasonable assurance that any portion of such other accounts or funds will be available for debt service if the City were to encounter financial difficulty. No amounts in any other accounts or funds, taking into account other planned or committed projects, are available for expenditure on the costs of the Project. L. Pursuant to the provisions and covenants of the City contained in the Bond Indenture approved by the City Council on December 19, 1988, all . interest earnings on the investment of the bond proceeds or any portion thereof will be transferred and distributed in accordance with the "Arbitrage Rebate Instructions" incorporated into said Indenture in order to ensure the continuing exemption of interest on the Bonds from Federal income taxation. i I ' 4. On the basis of the foregoing facts, estimates and circumstances, it is not expected that the proceeds of the sale of Bonds, including the Special Reserve Fund, will be used in a manner that would cause the Bonds to be "arbitrage bonds" within the meaning of Section 148 of the Internal Revenue Code, and the regulations of the Internal Revenue service thereunder. To the best of the knowledge and belief of the undersigned, there are no other facts, estimates or circumstances that would materially change such expectations. 5. No notification has been made to this issuer by the Internal Revenue Service that any arbitrage certificate or covenant may not be relied upon. EXECUTED this 26th day of January , 1989, at Huntington Beach , California. ,I TREASURER CITY OF HJNTTIISZnN BEACH STATE OF CALIFORNIA $1,653,904.59 CITY OF HUNTINGZCN BEACH ASSESSMENT DISTRICT NO. 88-1 (RESERVOIR HILL) LIMITED OBLIGATION IMPROVEMENT BONDS (THE 11BONDS11) UNDEFteiTER'S CLO6IW CERTIFICATE The undersigned hereby certifies as follows: 1 . I am a representative of Stone & - Youngberg and am duly authorized to execute this Certificate on behalf of Stone & Youngberg. 2. Stone & Youngberg was the initial purchaser of the above described Bonds and the Bonds were subsequently reoffered to the public, and a substantial I amount thereof. (at least 10%j'sold,.at prices not greater than par. 3. The underwriter hereby provides the following information to assist the City of Huntington Beach in the preparation of the Internal Revenue Form j 8038-G, Information Return for Tax-Exempt Governmental Bond Issues, for the j Bonds: A. The "issue price" (reoffering price to the public) for the final maturity of the Bonds is: $ 160,000 B. The "issue price" (reoffering price to the public) of the entire issue of the Bonds is: - $ 1,653,904.59 . C. The weighted average maturity for the,Bonds (the sum of the products of the issue price for each maturity and the number of years to maturity (determined separately for each maturity , and by taking into account mandatory redemptions) -divided by the product of the issue price for the entire issue) is: 13.75 years. D. The net interest• cost for the Bonds (the total interest payments for the entire Bond issue (reduced by any premium or accrued interest and increased by any discount) divided by the product of the issue price for the entire issue, ' and the weighted average maturity) is: 8.149%. E. The "yield" on the Bonds for purposes of Section .148 of the Internal Revenue Code of 1986 is: 7.9081 $. 4. It is the' opinion of the underwriter that; the establishment of the Reserve Fund and the maintenance of : the. •Reserve Fund at an amount equal- to the Reserve Fund Requirement 'as, specified- In the Bond Indenture is 'reasonably required for the purposes for .which. the. Reserve Fund has been established. Executed this 26th 'day of January, at Huntington Beach, California. STONE & YOUNGBEAG By: 1. $1,653,904.59 CITY OF HUNTIW7 N BEACH ASSESSMENT DISTRICT NO. 88-1 (RESERVOIR HILL) LIMITED OBLIGATION IMPROVEMENT BONDS (THE "BONDS") INSTRUCTIONS TO FISCAL AGENT TO.- BANK OF AMERICA NATIONAL TRUST AND SAVINGS ASSOCIATION 555 South Flower Street, 5th Floor Los Angeles, California 90071 As FISCAL AGENT of the CITY OF _ HUNTINGTON BEACH ("City"), you are hereby instructed as follows: 1 . To receive and accept funds representing the proceeds from the sale of above referenced Bonds issued by the City, dated January 17, 1989, in the net arount of $1,615,797.07. 2. 7b establish the funds and apply said proceeds as follows: A. IMPROVEMENT FUND: This fund is to be funded in the sum of •�', $1,513,322.71 . B. REDEMPTION FUND: This fund is to be funded in the sum of $3,240.09, representing accrued interest on the sale of the Bonds. C. SPECIAL RESERVE FUND: This fund is to be funded in the sum of $99,234.27. 3. To invest the funds on deposit in the aforementioned funds in accordance with any written instructions provided by the City and the Indenture for the Bonds. 4. 4b pronptly report to the Treasurer of the City that the dispositiopf 71, the funds has been accomplished in accordance with these instructions. EXECUTED this 26th day of January, 1989, at Huntington Beach, California. A0,0se TREASURER CITY OF HUNTINGTON EEACH STATE OF CALIFORNIA s �� $1,653,904.59 • CITY OF HUMINCTION BEACH Assessment District No. 88-1 (Reservoir Hill) CERTIFICATE OF FISCAL AGENT THE UNDERSIGNED, PANK OF AMERICA NATIONAL 'TRUST PJ\D SAVINGS ASSOCIATION, as Fiscal Agent under The Bond Indenture dated December 19, 1988 (herein called the "Indenture") , authorizing the issuance of $1,653,904.59 principal amount of the City of Huntington Beach, Assessment District No. 88-1 (Reservoir Hill) (the "Bonds") , HEREBY CERTIFIES as follows: 1. Pursuant to the certificates of thie Agency dated the date hereof, authorizing and directing the undersigned, among other things, to authenticate and deliver Bonds, the Bonds were authenticated by authorized officers of the undersigned and delivered to or upon the order of the City of Huntington Beach to Stone & Youngberg, the purchasers thereof. 2. That the duties of the Fiscal Agent under the Resolution were accepted on behalf of Bank of America National Trust and Savings Association, as Fiscal Agent, by the person or persons whose name and office appear below and that said persons were at the time of the acceptance of the duties of Fiscal Agent and now are, duly elected, qualified and acting incumbents of office and the signatures appearing after their names are true and correct • I'' specimens of their genuine signature. Robert Schneider ��� Assi:;tunt vice President I Neil Barr Trust Officer 3. Attached hereto as Exhibit A is a true and correct copy of the Resolutions as adopted by the Board of Directors of Bank of America National Trust and Savings Association, which at the date hereof are still in full force ,I and effect, giving the requisits authority of said officers. IN WITNESS WEREOF, the undersigned has hereunto set her hand this 26th day of January, 1989. BANK OF' AMERICA NATIONAL TRUST AND SAVINGS ASSOCIATION • � _ Assist t Secre ary - r Board of Directors June 7 , 1976 Bank of America NT&SA Amended : February 61 1978 December 1 , 1980 April 21 , 1981 December 5 , 1983 June 4, 1964 October 1 , 1984 June 3, 1985 June 2, 1986 December 7, 1997 RESOLUTION AUTHORIZING CERTAIN OFFICERS OR EMPLOYEES TO PERFORM CERTAIN ACTS ON BEHALF OF THIS ASSOCIATION ACTING IN A FIDUCIARY OR REPRESENTATIVE CAPACITY RESOLVED, that any one of the following officers or employees of this association : the President the Chairman of the Board of Directors the Chairman of the Executive Committee the Senior Vice Chairman of the Board of Directors any Vice Chairman of the Board of Directors any Vice Chairman • any Executive Vice President any Senior Vice President any Regional Vice President any Group Vice President any Vice President any Acting Manager any Administration Officer any Agricultural Management Officer any Landman or Land Representative any Assistant Cashier any Assistant Manager any Assistant Operations Manager any Assistant Secretary any Assistant Trust Officer any Assistant Vice President the Cashier any Deputy Cashier the Financial Controller the Director of Mortgage Banking any Corporate Banking Officer any Corporate Finance Officer any Division Controller any Director , Private Banking Office any Employee Relations officer any Investment Officer • 0038s ( 8 ) any Leasing Officer any Manager any Manager , Bank Related Securities any Manager, Customer Services any Manager, Government Securities any Manager , Securities Custody and Clearance any Manager , Trading and Underwriting any Sales Manager - Municipal securities any Senior Account Executive the Secretary any Senior investment Officer any Senior Leasing Officer any Senior Portfolio Manager any Senior Property Management Officer - Trust any Senior Securities Officer any Senior Trust Officer any Senior Underwriter any Trust Officer any Executive Financial Estate Planner the Head, Executive Financial Counseling any Senior Financial Counselor any Financial Counselor any Senior Analyst any Senior Financial Counseling Officer/Planning and Accounting any Senior Financial Counseling Officer/Investment Management Supervising Analyst , or • f any other officer or employee of this association specifically designated by the Board of Directors , the . Executive Committee, the President or the Executive Vice President-Personnel Administration of the association; is authorized, where this association is acting or to act in a fiduciary or representative capacity, to execute any Indenture , Agreement of Trust , Mortgage Deed of Trust, or other instrument under which certificates of beneficial interest, voting trust certificates , certificates of deposit for bonds , stocks , notes or debentures, interim receipts, collateral trust notes , bonds , debentures , participation certificates, mortgage notes , equipment trust certificates or other evidences of indebtedness are or are to be outstanding ; RESOLVED FURTHER, that each of the above officers or employees of this association is authorized where this association is acting in a fiduciary or representative capacity to countersign certificates of stock for which this association • -2- 0038s ti is Registrar or Transfer Agent and to execute , countersign, authenticate or certify certificates, certificates of deposit for bonds , stocks, notes or debentures , interim receipts , collateral trust notes , bonds, debentures, participation certificates , mortgage notes or other evidences of indebtedness ; RESOLVED FURTHER, that o,-ich of the .above persons is authorized to sign as "authorized officer " in any of the matters referred to herein; RESOLVED FURTHER, that this resolution supersedes that certain resolution adopted by this: Board of Directors on the 3rd day of May, 1976, naming the officers or employees of this association authorized to act pursuant to the authority above set forth . I , M. Lee, Assistant Secretary of Bank of America National Trust and Savings Association, a national banking association existing under the laws of the United States of America , having its principal place of business in the City and County of San Francisco in the State of California, certify that this resolution is a correct copy of a resolution adopted by the Board of Directors in accordance with the bylaws at a meeting held on .Tune 7 , 1976, and amended at meetings held on February 6, 1978 , December 1 , 1980, April 21 , 1981 , December 5, 1983, June 4 , 1984 , • October 1 , 1984 , June 3, 1985, and June 2 , 1986 . This resolution is still in effect . Assistant ` Secretary t,:•.NK OF AMERICA NATIONAL TRUST AND SAVINGS ASSOCIATION Dated : January 26, 1989 -3- 0038s S LAW OFFICES y BROWN & DIVEN �. F. MACKENZIE BROWN WARREN B. DIVEN DANIEL S. HENTSCHKE ROBERT A. OWEN LEGAL OPINION CITY OF HUNTINGTON BEACH ASSESSMENT DISTRICT NO. 88-1 (RESERVOIR HILL) 1915 ACT LIMITED OBLIGATION IMPROVEMENT BONDS BOND DATE: JANUARY 17, 1989 We have examined the record of the proceedings of the CITY COUNCIL of the CITY OF • I HUNTINGTON BEACH, CALIFORNIA (the "Agency") , for the levy of special assessments ,l and 'authorization and issuance of bonds upon unpaid assessments (the "Bonds") in what' is known and designated as ASSESSMENT DISTRICT NO. 88-1 (RESERVOIR HILL) as set ,forth and described in a Resolution of Intention, being Resolution No. 5926, as approved and adopted by the City Council Of said Agency. Said proceedings were had and taken pursuant to the provisions of the "Municipal Improvement Act of 1913", being Division 12 of the Streets and Highways Code of the State of California, with Bonds issued pursuant to the provisions of the "Improvement Bond Act of 191511, being Division 10 Of said Code. This examination icovers said proceedings down to and including the issuance and execution of said Bond' by the Treasurer. No examination has been made of the ownership and use of the property assessed. Said . Bonds, in the total principal amount of $1,653,904.59, are dated, the 17th day i of January, 1989, and are issued in denominations of $5,000.00, or any integral multiple thereof, except for one Bond maturing in the first year of maturity which includes the amount by which the total issue exceeds the maximum integral multiple of $5,000.00 contained therein. Said Bonds are issued in registered form as to both .principal and interest and are payable to the registered owner thereof out of the redemption fund for the payment Of said Bonds at the office of the designated paying agent, with the first interest installment payable on March ,2, 1990, and interest thereafter payable semiannually on September 2nd and March 2nd of each year with principal maturing on September 2nd of each subsequent year until paid. 12770 HIGH BLUFF DRIVE, SUITE 240 IB CORPORATE PLAZA,'NEWPORT CENTER SAN DIEGO, CALIFORNIA 92130 NEWPORT BEACH, CALIFORNIA 92660 TELEPHONE (6191 456-1915 TELEPHONE (714) 551-1915 FACSIMILE (619) 259-0292 - FACSIMILE (714) 759-1934 - I LAW OFFICES BROWN & DIVEN • LEGAL OPINION CITY OF HUNTINGTON BEACH ASSESSMENT DISTRICT NO. 88-1 (RESERVOIR HILL) PAGE TWO From such examination, we are of the opinion that said proceedings have been taken in accordance with the laws, court decisions and , Constitution of the State of California, and in substantial compliance with the provisions of the "Municipal Improvement Act of 1913", and that said Bonds, having been issued in duly authorized form and executed by the proper officials and delivered in the manner provided by law, are regularly issued Bonds, and that the payment of each of said Bonds is secured by a valid assessment lien upon certain lands as described in said assessment. In the event of default in the payment of any installment of principal or interest, the land securing such installments and assessments shall be sold in the same manner in which real property is sold for the non-payment of general property taxes, and shall be subject to redemption in the same manner and to the same extent that real property may be redeemed. The Agency is not obligated in any way to advance available funds from the General Treasury to cure any deficiency which may occur in the redemption fund and is not • .,I obligated to become a purchaser at any tax sale, and the only advancement of funds shall be from the special reserve fund. There has been included in the bond issue a "special reserve fund", from which funds will be advanced to the redemption fund to assist in the payment of delinquent assessments, and said monies will also be used to assist in the discharge of assessments. As a cumulative remedy, if any assessment or installment thereof is not paid, the legislative body has ordered that the same be collected by an action brought in the Superior Court to foreclose the lien thereof. The court shall have' the power to decree a lien against the lot or parcel covered by the assessment and shall order the premises to be sold on execution as in other cases of the sale of real property. The rights of the owners of the Bonds and the enforceability thereof may be subject to bankruptcy, insolvency, reorganization and other similar laws affecting creditors' rights, or equitable principles relating to or limiting creditors, rights. The Bonds, or a portion thereof if issued in denominations greater than $5,000.00, shall be subject to redemption and payment in advance of maturity in increments of $5,000.00 as provided in Section 8768 of the Act, on the second day of March or September in any year by giving the notice provided in said law to the registered • '.!. owner thereof at his address as it appears on the registration books of the Agency .. and by paying principal of and accrued interest on such redeemed amount, together ' with a premium equal to three percent (3%) of the redeemed principal amount. If less than an entire Bond is redeemed, the unredeemed portion shall be reissued to the registered owner thereof. I LAW OFFICES BROWN & DIVEN • LEGAL OPINION CITY OF HUNTINGTON BEACH ASSESSMENT DISTRICT NO. 88-1 (RESERVOIR HILL) PAGE THREE In our opinion, the interest on said Bonds is excluded from gross income for Federal income tax purposes and is not an item of tax preference for purposes of the Federal alternative minimum tax imposed upon individuals and corporations; it should be noted, however, that for the purpose of computing the alternative minimum tax imposed .on corporations (as defined for Federal income tax purposes) , such interest is taken into account in determining adjusted net book income (adjusted current earnings for taxable years beginning after December 31, 1989) . This opinion presumes that the Agency complies with all requirements of the Internal Revenue Code of 1986 that must be satisfied subsequent to the issuance of the; Bonds in order that interest thereon be, or continue to be, excluded from gross income for Federal income tax purposes. The Agency has covenanted to comply with each such requirement. Failure to comply with such requirements may cause the inclusion of interest on the Bonds in gross income for Federal income tax purposes to be retroactive to the date of issuance of the Bonds. • In our opinion the interest on the Bonds is exempt from personal income taxation by the State of California. Respectfully submitted, BROWN & DIVEN • LAW OFFICES BROWN & DIVEN F. MACKENZIE BROWN WARREN B. DIVEN DANIEL S. HENTSCHKE ROBERT A. OWEN January 26, 1989 SUPPLEMENTAL LEGAL OPINION a STONE & YOUNGBERG 15260 Ventura Blvd., #310 Sherman Oaks, California 91403 RE: $1 ,653,904.59 CITY OF HUNTINGTON BEACH ASSESSMENT DISTRICT NO. 88-1 (RESERVOIR HILL) LIMITED OBLIGATION IMPROVEMENT BONDS I (THE "BONDS") This is to certify that we have conducted the proceedings of the City Council, of the CITY OF HUNTINGTON BEACH, CALIFORNIA ("City"), for the levy of special assessments and the authorization for and issuance of the above referenced Bonds upon unpaid assessments in what is known and designated as ASSESSMENT DISTRICT NO. 88-1 (RESERVOIR HILL) , as set forth and described in a Resolution of Intention, being Resolution No. 5926, as approved and adopted by the CITY COUNCIL of said CITY on September 19, 1988. I Said proceedings were had and taken pursuant to the provisions of the "Municipal Improvement Act of 1913", being Division 12 of the Streets and Highways code of the State of California. The Bonds in the principal amount of $1 ,653,904.59 were issued as serial bonds pursuant to the provisions of the "Improvement Bond Act of 1915", being Division 10 of said Code. We have reviewed the Indenture, dated December 19, 1988, of the City for the Bonds ("Indenture"), the purchase agreement by and between the City and Stone & Youngberg ("Purchase Contract"), the Final Official Statement for the Bonds ("Official Statement") and such other statutes, regulations, judicial decisions, information and documents as we considered necessary to render this opinion. The capitalized words used herein shall have the same meanings as set forth in the Purchase Contract unless specified otherwise herein. 1 . The Bonds are exempt from the registration under the "Securities Act of 1933", as amended, and the Indenture is exempt from qualification under the "Trust Indenture Act of 1939", as amended; and 12770 HIGH BLUFF DRIVE, SUITE 240 18 CORPORATE PLAZA, NEWPORT CENTER SAN DINGO, CALIFORNIA 92130 NEWPORT BEACH, CALIFORNIA 92660 TELEPHONE (619) 456-1915 TELEPHONE (714) 551-1915 FACSIMILE (619) 259-0292 FACSIMILE (714) 759-1934 2. Nothing has come to our attention to lead us to believe that the Official Statement (excluding therefrom the financial statements and the statistical data included in the Official Statement, as to which no opinion is expressed) contains an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. Respectfully submitted, BROWN & DIVEN FMB/tja I i i f LAW OFFICES BROWN & DIVEN F. MACKENZIE BROWN WARREN B. DIVEN DANIEL S. HENTSCHKE ROBERT A. OWEN January 26, 1989 Stone & Youngberg 15260 Ventura Blvd. , #310 Sherman Oaks, California 91403 RE: CITY OF HUNTINGTON BEACH ASSESSMENT DISTRICT NO. 88-1 (RESERVOIR HILL) Gentlemen: This is to certify that we conducted the proceedings for the above-referenced Assessment District, and upon completion thereof, issued an Opinion attesting to the validity of the proceedings and enforceability of the bonds, said bonds being issued pursuant to the terms and provisions of the "Improvement Bond Act of 1915", being Division 10 of the Streets and Highways Code of the State of California, with the proceedings having been conducted pursuant to the terms • and provisions of the "Municipal Improvement Act of 1913", being Division 12 of said Code. Said assessment district is known and designated ASSESSMENT DISTRICT NO. 88-1 (RESERVOIR HILL). As underwriter of the issue, you may rely upon all statements contained in said opinion in the same manner as if said opinion were addressed to you. A copy of said opinion has been printed on each bond. Very truly yours, BROWN .& DIVEN 12770 HIGH BLUFF DRIVE, SUITE 240 16 CORPORATE PLAZA, NEWPORT CENTER SAN DIEGO, CALIFORNIA 92130 NEWPORT BEACH, CALIFORNIA 92660 TELEPHONE (619) 456-1915 TELEPHONE (7141 551-1915 FACSIMILE (619) 259-0292 FACSIMILE (7141 759-1934