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HomeMy WebLinkAboutStaff Report 274-09TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: PUBLIC WORKS DATE: JUNE 8, 2009 CMR:274:09 REPORT TYPE: PUBLIC HEARING SUBJECT: Assessment for California Avenue Area Parking Bonds -Plan G: Fiscal Year 2010; Adoption of a Resolution Confirming Engineers' Report and Assessment Roll, California Avenue Parking Project No. 92-13 (For Fiscal Year 2009-2010) EXECUTIVE SUMMARY Staff is required to recalculate the parking assessments for the California Avenue parking assessment district each year based on building square footage, parking required and parking provided. Each property owner is sent the new assessments each Spring and Council conducts a public hearing each June to allow those owners to question the assessments. RECOMMENDATION Staff recommends that Council adopt the attached resolution (Attachment A) confirming the Engineer's Report and Assessment Roll for California Avenue District, Parking Project No. 92-13. BACKGROUND By virtue of the prior establishment ofthe assessment district and issuance of debt, Council action is required to levy annual assessments for the active parking project in the California Avenue area. These assessments will be utilized for the payment of principal and interest on bonds for capital improvements pursuant to the attached resolution. These funds are separate and distinct from permit fees that are used to pay for operation and maintenance of parking facilities. The active project is listed and described as follows: 1. California Avenue District, Ted Thompson Parking Structure, Proj ect 92-13: Construction of a two-level parking structure on Cambridge Avenue between Birch Street and Nogal Lane. Parking bonds issued under Bond PlanO (Section 13.16.150, Palo Alto Municipal Code) require that a public hearing be held annually (the second Monday in June) on the assessments, which must be levied to pay principal and interest on the bonds. The purpose of the public hearing is to allow each property owner within the District the opportunity to question the computation ofhislher assessment and the elements which comprise it. These elements include the square footage of each occupied building, the off-street parking requirements for the usage, and the off-street parking provided. Assessments are levied on the basis of building square footage, with a credit given for the off-street CMR:274:09 Page 1 on parking provided by the property owner. Additional details about the Parking Assessment District- Plan G bond capital improvement program project can be found in Attachment B. DISCUSSION The assessment rates for FY 2009-10 (Attachment C) per square foot of adjusted building area and the amount levied for the project is: PROJECT 1. California Avenue District, Ted Thompson Parking Structure, Proj ect 92-13 *Rate per weighted assessment factor. * * Rate per land square footage. ASSESSMENT RATE PER ADJUSTED BUILDING SQUARE FOOTAGE $9.48* $ 0.054** Total: DOLLARS LEVIED $111,442.73 $ 37,147.63 $148,590.36 (A complete copy ofthe Fiscal year 2010 Assessment Roll is available for review at the City Clerk's office.) Approximately $341,000 in excess construction funds in the California Avenue District bond fund for the Ted Thompson parking garage, Project 92-13, was used to reduce the tax roll required to pay off the bonds sold to finance the project. To equalize assessments, the funds were spread uniformly over the duration of the bond"s(20 years) beginning with the 1996 assessments. "" Attachment D lists changes made to the assessment rolls. The estimated assessments were sent to the owners of 148 parcels within the California Avenue district on March 25,2009. Assessments were modified due to recent changes in business site conditions (square footage, vacancy, etc.), which were brought to staffs attention by property owners since the estim~ted assessments were prepared. Because the hearing itself is the legally prescribed process by which questions about the basis of assessment and the property owners' individual circumstances may be heard, it may be necessary to have a second addendum available at the Council meeting that reflects changes brought to staffs attention since the Council packet was delivered. The public hearing for the assessment district may need to be continued if last minute information brought forward by property owners cannot be verified and included in the amended rolls prior to the hearing. RESOURCE IMPACT The Ted Thompson parking structure project is funded by the assessment district and no City General Fund monies are involved. Although assessments are generally subject to Proposition 218, this particular assessment is exempt from Proposition 218 since all of the assessment proceeds are pledged to repay bond indebtedness issued prior to the enactment of Proposition 218. Parking district maintenance costs, including sweeping, landscaping, signing and lighting are paid for by parking permit fees, which were last increased in 2005 in the California Avenue Parking District. These are separate from the funds used to pay for construction of the parking garage. CMR:274:09 Page 2 of3 Staff time expended to administer the District is covered through the assessments. POLICY IMPLICATIONS Approval ofthis action does not represent any change to existing City policies. TIMELINE The assessments will be sent to the Santa Clara County Tax Collector in July 2009 and will appear on the October 2009 property tax bills. ENVIRONMENTAL ASSESSMENT Approval of assessments is exempt by from the California Environmental Quality Act (CEQA). ATTACHMENTS Attachment A: Resolution (1) Attachment B: Capital Improvement Program Project Attachment C: California Avenue Assessment Rates Attachment D: California Avenue District Amendments PREPARED BY: DEPARTMENT HEAD: 7lng]ct. E8J ..... __ ~_ CITY MANAGER APPROVAL: GLENN S. ROBERTS Director of Public Works JAMES KEENE City Manager cc: California Avenue Area Development Association Chamber of Commerce CMR:274:09 Page 3 of3 ATTACHMENT A NOT YET APPROVED Resolution No. ---- Resolution of the Council of the City of Palo Alto Confirming Engineer's Report and Assessment Roll California Avenue Parking Project No. 92-13 (For Fiscal Year 2010) THE COUNCIL OF THE CITY OF PALO ALTO DOES RESOLVE as follows: Section 1: After proceedings conducted pursuant to the Palo Alto Municipal Code, a public hearing has been duly held on the Engineer's Report and assessment roll prepared for the above fiscal year to pay the principal and interest on bonds issued pursuant to Resolution of Intention No. 7930, adopted by the Council of the City of Palo Alto on August 9, 1993; Section 2: This Council has heard all persons having an interest in any real property within the parking assessment district; has heard all objections, protests, or other written communications from any persons interested in the real property within the district; has taken and received oral and documentary evidence pertaining to the matters contained in the report; and has remedied and corrected any errors or informalities in the report and revised and corrected any of the acts or determinations of the various City officials as contained therein; Section 3: The Engineer's Report and assessment roll, and each of the assessments therein as fully revised and corrected, is hereby approved and confirmed. 1/ 1/ II 1/ 1/ II 1/ 1/ II 1/ -1- 090603 jb 0130483 Section 4: The report together with the certificate of the City Clerk as to the fact and date of approval by this Council, shall forthwith be delivered to the County of Santa Clara, and the proper County officer shall cause to be posted to the tax rolls, in the column provided therefore the amount of each of the assessments proposed to be levied and collected for the fiscal year as set forth in the report as confirmed. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk APPROVED AS TO FORM: Jones Hall, A Professional Law Corporation By .\--¥1bHJ~+="---+\---'-------- -2- APPROVED: Mayor City Manager Director of Public Works Director of Administrative Services Senior Asst. City Attorney BOND ISSUE California Avenue Project 92-13 (Ted Thompson Garage) CAPITAL IMPROVEMENT PROJECT FINANCED BY ASSESSMENT PROCEDURES USING G-BONDS CALIFORNIA AVENUE AREA AMOUNT OF PURPOSE OF ISSUE DATE ISSUED BOND ISSUE $2,055,000 Construction of a future two level parking structure on lot C-3 and the 11/93 two parcels acquired by project 86-01. DATE OF MATURITY 09/02/2015 INTEREST RATE 3.4% -5.4% ~ ~ ~ ~ ~ Z ~ = -, CALIFORNIA AVENUE AREA PARKING DISTRICT ANNUAL ASSESSMENT RATES Project 92-13 LAND ASSESSMENT w (!) ~ 0 0 u... O.OB -w (() 10 ~ t") I' (J) « 0 (() 00 00 0 0 :::::> (() 0 <0 <0 --0 d 10 10 0 0 ~ 0 d N ,..... N t") 0 0 d 10 (fJ 10 10 10 10 10 0 d 0 0 Cl 0.06 q q q 0 q d z 0 0 ::s 0 0 0 w ~ 0.04 _. I-Z w ::i: (fJ (fJ 0.02 w (fJ (fJ « ~_I I I I I I I L I .1M .i2 .iii .lU .iii .i.!! .lllJ .Q1 ..Q2 ~ .!l4 !If! .ll2 SJ1 .Il.8 .Qa 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 YEAR BUILDING ASSESSMENT 0::: ~ I' ~ 13.0 I' "? !z f1 w 12.0 N (J) (J) :2!' 10 I' <0 en ,..... 00 d en 0 0 0 0 w 11.0 en d d en t") 00 « N I' I' 10 ~ 0 10.0 t") "! w (J) (J) ~ (J) (J) (J) (J) (,9 9.0 iIi s: -~ B.O !z 7.0 w :2!' en 6.0 en w en en « --.1M .lU .iii .i.!! !If! .Qa 95 98 99 00 06 10 AB13B-2009 Page 1 of 1 L ATTACHMENTD CALIFORNIA A VENUE DISTRICT AMENDMENTS PRELIMINARY ROLL Address, Parking Parking Assessments Parcel· Number Feet Reqd. Prov 92-13 86-01 No amendments AMENDED ROLL Address, Use Square Parking Parking Assessments Parcel Number Feet Reqd. Prov 92-13 86-01 No amendments