HomeMy WebLinkAboutStaff Report 174-06TO:HONORABLE CITY COUNCIL 6
FROM:CITY MANAGER DEPARTMENT: UTILITIES
DATE:APRIL 03, 2006 CMR: 174:06
SUBJECT:ADOPTION OF AN ORDINANCE AMENDING SECTIONS 12.16.010
THRU 12.16.100 TO REVISE THE ADMINISTRATIVE PROCEDURES
GOVERNING THE FORMATION OF UNDERGROUND UTILITY
DISTRICTS
RECOMMENDATION
Staff recommends that Council adopt the attached Ordinance (Attachment A) to amend sections
12.16.010, 12.16.030, 12.16.050, 12.16.070, 12.16.080, 12.16.090, 12.16.091, 12.16.092,
12.16.093, !2.16.094, 12.16.095, 12.!6.096 AND 12.16.100 of Chapter 12.16 of Title 12 of the
Palo Alto Municipal Code (PAMC). All references to the new loan program that provides the
option for property owners to pay the cost of the service connection at the end of a ten-year
period should be deleted.
BACKGROUND
At its meeting of September 19, 2005, the Council approved staff’s recommendation to return
with amendments to the Palo Alto Municipal Code to allow the repayment of underground utility
district loans when the home is sold or transferred to a new owner. This could occur several
decades in the future. Various other financing alternatives were presented and discussed during
the Council meeting and, based on the pros and cons of the various programs, Council voted to
approve staff’s recommendation.
As part of the review of the Municipal Code section on undergrounding, staff also revised
outdated sections of the code.
DISCUSSION
The City Attorney’s Office has advised staff that a loan term must be limited to 10 years in order
to comply with State laws on which the ordinance is based. To comply with these laws, all loans
offered for the payment of underground service conversion cost would become a special
assessment and full payment must be made within a period of 10 years. There are no provisions
for extending the time for repayment of the loan. Staff asked the Attorney’s Office to ascertain if
there were any other feasible methods that could be used to create this loan program without
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undue risk to the City and residents. No other feasible options were identified that would ensure
City’s ability to enforce its lien interest.
In order to reduce the burden of the service conversion cost to property owners in underground
districts, a loan secured by property lien with no ongoing periodic repayment schedule was
recommended as a possible new loan program to augment the current 10-year loan program. This
loan could provide a means for the City to finance the cost of the service conversion for property
owners and secure repayment by placing a lien against the property. This differs from the current
10-year program in that the property owners would not be required to meet an annual repayment
schedule. The lien would attach to the property collecting interest until the property is sold, the
owner changes, or the amount is repaid. It was staff’s understanding when it recommended this
program that this type of loan could provide the most benefit to property ow-ners without
increasing administration costs nor causing any significant out of pocket expense to the property
owalers.
Staff has devised an alternative loan program that would allow repayment at the end of the tenth
year for Council’s consideration. This program would provide homeowners the benefit of
deferring the service conversion cost for 10 years. The result of this deferral is a bill at the end
of ten years that will come due with interest. For example a $5,000 loan at 5% interest rate will
result in a payment of $8,235 at the end of 10 years. Unfortunately, if a homeowner is having
difficulty paying the conversion cost today, it is likely that he or she will have difficulty payi.ng
at the end of 10 years. Because this program provides limited benefit to the property owners, it
is staffs recolrn-nendation that references to this !oan alternative in the attached ordinance be
stricken at time of approval.
During the review, staff also identified changes to sections of the Municipal Code to address
minor changes in the administrative procedures for forming underground utility districts and to
update the various authorized and designated positions referenced in the PAMC. Other changes
include revising the fine established in 1965 for the failure to remove poles from the
underground district from $500 to $1,000 in order to account for inflation, and extending the
filing period for the assessment from the time of district formation to the completion of the
undergrounding project. The second change will allow residents additional time to make a
decision on accepting a loan from the City. Staff recommends that these revisions be approved as
proposed in the ordinance, with the exception of all reference to the new loan program that
provides the option for property owners to pay the cost of the service connection at the end of a
period of 10 years.
RESOURCE IMPACT
The increase in staff time for the administration of the new- loan program, if approved, will be
minimal. All additional cost will be reimbursed through fees charged to property owners
obtaining loans.
If a large number of property owners opt to use the new program, additional funding will need to
be added to the Underground Reserve Fund. This could have a minimal impact on rates.
POLICY IMPLICATIONS
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The impact of adopting the policy change incorporating the new loan pro~am will result in an
increase in the amount of reselwes required to fund the loan program and could tie up the funds
for ten years or until the outstanding loans are collected when the liens are cleared.
ENWIRONMENTAL REVIEW
This project is categorically exempt from
Section 15302.
the California Environmental Quality Act under
ATTACHMENTS
A: Ordinance
pREPARED BY:
CITY MANAGER APPROVAL:
PATRICK VALATH
Senior Electric Project Engineer
EMILJV HARRISON
Assistant City Manager
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Attachment A
ORDINANCE NO.
ORDINANCE OF THE CO~ClL OF THE CITY OF PALO ALTO
AMENDING VARIOUS SECTIONS OF CHAPTER 12.16
12.16.010,12.16.030, 12.16.050, 12.16.0701 .....
12.16.0S0,12.16.090, 12.16.091, 12.16.092}
~2.16.093,12.16.094, 12.16.095, 12.16.096 9~D
12 16 i00 TO ~To~~u~PERTAINING TO
ADMINISTRATIVE PROCEDURES GOVERNING THE FORMATION
OF UNDERGROUND UTILITY DISTRICTS
The Council of the City of Palo Alto does ORDAIN as
follows:
SECTION i. Section 12.16.010 of Chapter 12.16 of Title
12 of the Palo Alto Municipa! Code is hereby amended to read, as
follows:
12.16.010 Underground installation required for new
construction.
The city council finds and determines that the
public interest requires that all facilities and wires
moles, overhead lines and assocla~eo overhead structures
used in supplying electric, communication or similar.
associated service to be constructed in the city of Pa!o
Alto after July !, 1965, shall be placed underground in
order to promote and preserve the health, safety and
general welfare of the public and to assure the orderly
development of the city of Palo Alto. The managing
director of utilities, or his designee, may authorize
poles, overhead lines and associated overhead structures
for new construction when in his opinion underground
installation in any particular instance would not be
feasible or practicable. His decision in such matters
shall be final.
SECTION 2. Section 12.16.030 of Chapter 12.16 of Title
12 of the Palo Alto Municipal Code is hereby amended to read, as
follows:
12.16.030 0~=~4aead wircsPole~, overhead lines and
associated overhead structures prohibited in underground districts.
(a) Uniawfu! to ~aintain Polcs After Rcmoval Datc:
Whenever any area of the city is declared to be an
underground utility district, it ieshall be unlawful for
any person or utility to erect, construct, use, or
maintain eiey---pole~, overhead iine~ e~and associated
overhead structure~ within the district after the date
when the utilities are required to be removed.
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(b) ~n~ ..... ~ ~~~< ~< ~-~ -: ~- ~-. ~rom and after theeffective date of the establishment of any underground
utility district, it ~shai! be unlawful for any person
or utility to erect, construct, use or maintain ~
poles, overhead line~ e~and associated overhead
structures within -~ ~ ......_~c~: ~der~rouna utillt~h___e district.
(c) Uiolation a ~lisdemeanor. Any personindividual
or utility who shall erect, construct, place, keep,use ormaintain} ....~, ~mp~o~ or operate any ~ poles__~ e~
overhead line~ e~an___~d associated overhead structures
within any underground utility district or who shal~
neglect to take down and remove ~such po!e~, overhead
~lines~ ee~and associated overhead structures within
the time designated in this chapter or who shall
otherwise fail to comply with the provisions of this
chapter shall be guilty of a misdemeanor and upon
conviction thereof shall be punishable by a fine not to
exceed ~ive hundredone thousand dollars. Each consecutive
fifteen-day period during which the failure to comply
with the provisions hereof shall constitute a separate
offense. Such violation is likewise hereby declared to be
a nuisance and may be abated by the city attorney in the
manner provided for the abatement of nuisances.
SECTION 3. Section 12.16.050 of Chapter 12.16 of Title
12 of the Palo Alto Hunicipal Code is hereby amended to read, as
follows:
12.16.050 Exceptions.
(a) The provisions of this chapter shall not apply
to the following types of facilities:
(i) Poles used exclusively for police and fire
alarm boxes, traffic control facilities, or any similar
municipal equipment installed under the supervision and
to the satisfaction of the managing director of
utilities, or his designee;
(2) Poles used exclusively for street lighting;
(3) An electric distribution or transmission
system in excess of fifteen kilovolts~ unless the
managing director of utilities, or his designee,
determines that underground installation of such
transmission system is feasible and practicable. His
decision in such matters shall be final;
(4) When authorized by the managing-director of
utilities~ or his designee, poles~ ~overhead lines and
associated overhead structures crossing or entering any
portion of a district from which poles, overhead
~lines and associated overhead structures have been
prohibited and originating in an area in which poles~ e~H~
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overhead lines and associated overhead structures are not
prohibited;
(5) Overhead lines attached to the exterior
surface of a building by means of a bracket or other
fixture and extending from one location on the building
to another !ocation on the same building or to an
adjacent building without crossing any public street;
(6) Radio antenna and associated equipment and
supporting structures used for furnishing communications
services;
(7) Changes in or additions of aerial drop
~iines and anchors or the addition or replacement of
~iines and cables on poles in place on July i, 1965;
or
(8) Service terminals, in pedestals, above
ground, used to distribute communication service in
underground systems.
(b) Alterations and extensions to poles, ........ overhead
faci!ities!ines and associated overhead structures
falling within the exceptions described in this sectio~~
shall be permitted provided no additional poles are
required for any such alteration or extension.
SECTION 4. Section 12.16.070 of Chapter 12.16 of Title
12 of the Palo Alto Municipal Code is hereby amended to read, as
fol!ows:
12.16.070 Time extensions.
In the event that any act hereby required by any
partie~person or utilit~ herein referred to cannot be
performed within the time herein provided on account of
shortage of materials, war, restraint by public
authorities, strikes, or by any circumstances beyond the
control of the partiesperson or utilitv or by unusual
hardships, then the time within which such acte shall be
accomplished may be extended by the managing director of
utilities, or his designee, for a period not exceeding
one year.
SECTION 5. Section 12.16.080 of Chapter 12.16 of Title
12 of the Palo Alto Municipa! Code is hereby amended to read, as
follows:
12.16.080
utilities.
Notification to affected property owners and
(a) Within thirty days after the establishment of
the underground utility district the managin~~ director of
utilities, or his designee, shall so notify all affected
utilities and all persons ~erty owners and utilities
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owning real property within the affected area. The
~,L~~ director of utilities, or his designee, shall
further notify .ouch affected property owners and
utilities that poles, overhead lines e~and associated
overhead structures are to be removed and that if the
a~ec~cea~ ~opc~ -~ owners~ and uci±~c~es- ’ ~ or the tenants or
occupants of their property desire to continue to receive
utili~’~ se-<~ or~, ~o electric, communication or similar
associated servicee they shall make all necessary
facility changes on their premises so as to receive the
service~ :tom the ~ ..... ~, at a new location subject to
the applicable rules, regulations and tariffs of the
respective utilities on file with the California public
utilities commission and the utility rules and
regulations of the city of Palo Alto.
(b) Notification shall be made by mailing a copy of
this chapter and the ordinance which designates the area
of an underground utility district to the affected
utility and to affected propcrty owners and utilities as
shown on the last equalized tax roll ~ of the city.
Failure to give such notice by mail or of the persons
affected owners or utilities addressed to receive the
noticeeeme shall not affect the validity of such
ordinance nor the authority of the city to proceed under
Section 12.16.100.
SECTION 6. Section 12.16.090 of Chapter 12.16 of Title
12 of the Palo Alto Municipal Code is hereby amended to read, as
follows:
12.16.090 Responsibility of property owner.
(a) All conduits, conductors and associated
equipment necessary to receive utilityeiectric,
communication or similar associated service~ between
service conductors or underground pipe~ or conduit~ of
the supplying utilityutiiities and the service facilities
to the building or structure being served shall be
provided by the person owning, operating, leasing or
renting ee-i~the affected property subject to applicable
rules, regulations and tariffs of the utility
~respective utilities ........~........... on file with the
California public utilities commission and the Utility
PJalcs and Rcgulationsutility rules and requlations of the
city of Pa!o Alto.
(b) £~49~The underground service connection
construction shall be accomplished within the time
specified in Section 12.16.020 or if the time is not
specified therein, within thirty days after the
installation of the utilities facilities pursuant to the
~onsut~l~ rules and
requlations of the city of Paio Alto.
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I
I
SECTION 7. Section 12.16.091 of Chapter 12.16 of Title
12 of the Palo Alto Municipa! Code is hereby amended to read, as
follows:
12.16.91 Financing service connection conversions.
(a)Whenever th~ conversion to underground
locations of all facilities and ~irc~so!es, overhead
lines and associated overhead structures used in
supplying electric, communication or similar associated
service is, under established policies and procedures ot
the city to be financed entirely by the city within the
area of the public rights of way within any proposed
underground utility district, the cost of conversion to
an underground locatione of the individual electric powc~
service connections on private property (hereinafter
referred to as "service connectione") may be accomplished
in the manner hereinafter set forth in Sections 12.16.092
to 12.16.097, inclusive.
(b) Each affected residential or nonresidential
property owner who elects to finance the cost of his
service connection shall execute a !oan agreement and anw
other document to secure his obligation to pay the cit~
in accordance with this chapter. The affected o%~ei
shall prove to the city he holds lega! title no the
affected real srosertv.
(c) Each affected residential propert%~ o~er who
elects to pay the cost of his service connecnion at the
end of a meriod of years shall establish his eiiqibiiity
to make the election. A person shall be deemed eiiqibie
if he Droves he holds ieqal title to the affecte~
p~oDerty and he has twennv mercenn ecuitv in the property
as of the estabiisb~ent of the underground utility
district. In establishing title, the affected o~<~_ez
shall provide to the city a sreiiminary title resort
aps!icabie to his affected sropertv and such othez
information as may be remuested by the city as part ol
the aDpiication to finance his service connection.
SECTION 8. Section 12.16.092 of Chapter 12.16 of Title
12 of the Palo Alto Municipal Code is hereby amended to read, as
follows:
12.16.092 Notice of intention.
_~ At the time of the call of the public hearing
on the formation of such an underground utility district,
as required by Section 12.16.040, the council may
authorize the city clerk, aided by the director of
utilities, or his designee, .to include in the notice o__~t
hearing to be mailed to all affected property owners,
pursuant to Section 12.16.040, a statement to the effect
that any affected owner has the option of paying the cost
of converting his service connection to an underground
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locatione either over a period of years or at the end of
a meriod of years.(thc number to bc detcrmined by
council and set forth in the notice) with interest to be
determined as heroinaftcr provided by Section 12.16.096.
The notice shall include the information set forth is
Seczions !2.!6.091(b} -
~ The notice shall be accompanied by an
appropriate form by which either of the two ~a%~tent
options specified in Section 12.16.096 may be exercised.
The notice shall also set forth:
(i) The estimated cost of accomplishing the
underground service connection construction, work, as
determined by the managing director of utilities, or his
designee, herein called the "base cost";
(2) An additional fixed amount per parcel,
also to be determined by the mana{ing director of
utilities, or his designee, representing the cost of
making the estimate, establishing the lien and other
incidental administrative, legal and engineering expense
involved in the proceedings, herein called "incidental
expense";
(3) The total amount of subdivision (!) plus
subdivision (2), herein called the "special assessment"-
and ’
(4) The fact that the city, upon exercise of
eheeither pa’~ent option and the accomplishment of the
underground service connection construction work as
required by Section 12.16.090, will pay the base cost and
incidental exmense to the affected owner who accomplishes
the underground service connection construction, subject
to the payment of the amount of the special assessment as
hereinafter provided.
SECTION 9. Section 12.16.093 of Chapter 12.16 of Title
12 of the Palo Alto Municipal Code is hereby amended to read, as
follows:
12 16.093 ~- w---~-~............... ~ - Filing assessment list.
~A~ter the time fi;<cd for hcaring on the
q .... ~ o~ formingformation of the underground utility
district but before the accomplishment of the underqround
service connection constructioN, the council shall
determine the properties the affected owners of which
have exercised the option to pay the cost over a period
of years or at the end of a period of years and shall
direct that the base cost and incidenta! expense shall be
paid by the city subject to payment of the special
assessment in the manner hereinafter set forth.
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~n~orgro~d ~=~T d2strict aA complete assessment roll
or list of suchthe affected properties subject to the
pa%,_~nents over a meriod of vear~, identifying them and
setting forth the respective amounts of the proposed
specia! assessments, shall be prepared by the manag2ng
director of utilities, or his designee, and filed in the
offices of the city csntrollcr the ~~
contro!ler,.c!erk and the director of utilities and
mublished and filed in the office of the county of Santa
Clara ta~ co!icctorassessor.
(c) The loan - ~ = n~s for the a~ected n-- -~{e~
on which elections to make oa?~ent at the end of a period
of Years are made, identifyinq them and setting forth the
respective amounts of the orooosed soeciai assessments,
and the notices of assessment shall be ]0re]Dared by th~
director of utilities, or his desiqnee, i~mediateiy umo~
the oa4,Tnent of the base cost and incidental expense. The
aqreements and the notices of assessment shall be
oromptlv filed in the offices of the citj clerk and the
director of utilities and recorded in the office of the
county of Santa Clara recorder.
SECTION i0. Section 12.16.094 of Chapter 12.16 of Title
12 of the Palo Alto Municipal Code is hereby amended to read, as
follows:
12.16.094 Payment of base cost - Establishment of special
assessment lien.
Upon completion (pursuant to Section 12.16.090) of
the underground service connection construction ~on
any parce! as to which either of the two pa~ent options
has been exercised, the affected owner who accomplished
~the ~construction may file with the ~
contro!ierdirector of utilities or his desiqnee, a
verified claim for the base cost and incidental expense.
The claim shall be audited and paid in the manner
provided by law.
SECTION ii. Section 12.16.095 of Chapter 12.16 of Title
12 of the Palo Alto Municipal Code is hereby amended to read, as
fo!lows:
12.16.095 Notice - Lien.
i!l___Concurrentiy with such payment on which the
affected property om~_er will pay over a period of years
or at the end of a period of years, the ~
controllcmdirector of utilities, or his desiqnee, shall
publish and file the assessment roll or list in the
office of the county of Santa Clara assessor with respect
to the payments over a period of years or record a notice
of assessment in the office of the superintendent of
streetscounty of Santa Clara recorder with respect to the
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~sa%~ent at the end of a meriod of years in substantially
the following form~:
(i) For ]savments over a ~eriod of years.
NOTICE OF ASSESSMENT
Pursuant to the requirements of Sections
12.16.091 to 12.16.097, inclusive, of the Palo Alto
Municipal Code, the undersigned city controlierdirector
of utilities, or his desiqnee, hereby gives notice of a
special assessment in the amount of $against
the following described property:
(Insert description)
Notice is further given that ~the special
assessment shall become a lien upon the property
described herein upon the fiiinq of the assessment roll
or list and the recording of this notice in the office of
the superintendent of streets of said cityhounty of Santa
Clara assessor.
Controller of t~he City of Palo Alto
By
Director of Utilities
Dated:
%zears.
(2) For payment at the end of a period of
NOTICE OF ASSESSMENT
Pursuant to the reGuirements of Sections
12.16.091 to 12.16.097, inclusive, of the Paio Alto
Municimai Code, the undersigned director of utilities~ or
his desiqnee, hereby qives notice of a special assessment
in the amount of $aqainst the followinq
described mropertv:
(Insert description)
Notice is further qiven that the special
assessment shall become a lien u~on the property
described herein umon the recordinq of this notice in the
office of the county of Santa Clara recorder.
The City of Palo Alto
By
Director of Utilities
Dated:
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...... amount of :he s~,oecia!
asse~s~e~ shall .....~’ tutc -lien -~~-~o ....1 ~o ......~arccl of
prcp~r~ ~-cribed in :he ~.t~cc zcr the .............~ou.~u cf such
asscssm~-~ ~cns -’ " ~ ’shed === ~nm~........c~=ab~pursuan~ to ~’~ t!c ~3 of ~ ~-
7~ =--om~~_-~.~c~ avaiiab!~ ~6~-~ ~=~e cnforccmen~ and
co~0~e4~ ~: ~ :cns cs:ahiished under ~ ~ m~ ~q~ 13 - -~-
amml’~ ....~ liens ~Zabli~s~**~ under thi~ ~:~ape~r~ . (b) The
notice of assessment shall set forth the name of the
owner of record, the mromerty address, the assessor’s
p~._cez number the legal description of the affected
r~: ~ication by the d{reczor of~roDerty, and a ce_ cz __
utilities that the service connection cost has been paid
by the city on behaq ~ of ~:~__~z_e owner of the described
affected property aqainst which the lien is filed or
recorded. Such zzen ~ : sha] ...... 1 remain a lien unz{ ~ a full
release and discharqe is made pursuant to the mrovision
of this chapter.
(c) Upon the fi!inq or recordation of any notice of
assessment set forth in Section 12.16 095 (a) and (b),
the amount of the special assessment shall constitute a
lien on the parcel of promertv described in the notice
for the amount of such assessment unti! paid, with the
same priority as special assessment liens established
pursuant to Title 13 of this Code. All remedies available
for the enforcement and collection of liens established
under Title 13 shal! amm!y to liens established under.
this chapter.
SECTION 12. Section 12.16.096 of Chapter 12.16 of Title
12 of the Pale Alto Municipal Code is hereby amended to read, as
follows:
12.16.096 Collection and payment.
The affected ~ropertv o~er shall pay the assessment
and ±~_~eres~ to the city in accordance with paragraph (a)
or (b) below.
(al The principal amount of each of ee-i~the
assessments payable over a period of time shall, upon
filinq or recordation, become payable in equal annual
installments over the number of years set forth in the
notice of hearin@ provided for in Section 12.16.092, with
interest computed at a rate equal to three-quarters of
one percent in excess of the rate shown in the New York
Bond Buyer Index of Municipal Bond Average Yields for
twenty year bonds for the week next preceding the day on
which the underground utility district is ordered formed.
The amounts of principal and interest payable on each
assessment shall be set forth on an auditor’sin the
records of the director of utilities and transmitted to
the county controller of the county of Santa Clara ~
before the first day of July of each ycarassessor. The
amounts shown on ee£-~the auditordirector of utilities’e
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record against the respective parcels of land shall be
entered on the next tax roll upon which general city
taxes are to be collected. Thereafter, such amounts shall
be collected at the same time, and in the same manner, as
general city taxes are collected, and shall be subject to
the same interest and penalties, and the same procedure
and sale in case of delinquencies. All laws applicable to
the levy, collection and enforcement of city taxes are
hereby made applicable to such assessment installments
and interest.
(b) The princiDai amount of the assessment payable
at the end of a period of time shall, upon recordation,
become pavab!e on no later than the date the affected
mropertv is sold or transferred or a date ten years after
recordation if there is not a sale or transfer. For the
purposes of this section, the affected property shall be
deemed sold or transferred as of the date: (!) the o~vmer
vacates the property if the pro~nerty is not sold; (2) the
o~er sells the promerty; (3) the ok~_er’s future real
property tax payment is delinmuent; (4) the o-~ner dies;
(5) the o~er otherwise transfers title to the property
to a person other than the o~er; (6) the o~_er files for
protection under the bankruptcy laws; or (7) the o~_er
defaults under a deed of trust, promissory note or other
security interest in the property, interest shall be
computed at a rate equa! to three-quarters of one mercent
in excess of the rate shov,~ in the New York Bond Buyer
Index of Municimal Bond Averaqe Yields for twenty year
bonds for the week next precedinq the day on which the
underqround utiiitv district is ordered formed.The
amounts of princimai and interest payable on the
assessment shall be set forth in the records of the
director of utilities. Thereafter~ such amounts shal! be
collected at the desicnated time, and shall be subject to
the same interest and penalties and the same procedures
as set forth in (a) above. All laws ap~iicable to the
le\~,, collection and enforcement of city taxes are hereby
made amplicable to such assessment and interest.
SECTION 13. Section 12.16.100 of Chapter 12.16 of Title
12 of the Palo Alto Municipal Code is hereby amended to read, as
follows:
12.16.100 Action on noncompliance.
(a) In the event the person owning, operating,
leasing or renting ~ the affected property does not
comply with the provisions of Section 12.16.090 within
the time specified therein the chief electrical
d~rec~o_ of utilities or his desiqnee, shall
have the authority to order the disconnection and removal
of any and all poles, overhead lines ~and associated
overhead structures supplying utility service to ~ the
affected property and the utility shall not be thereafter
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required to provide service to such premises until the
owner, tenant or occupant makes the necessary changes.
(b) Noncompliance by any person owning, operating,
leasing or renting ~the affected property with the
provisions of Section 12.16.090 shall constitute a
misdemeanor. Until such time as notice is given pursuant_ ¯
to the provisions of Section 12 16 080 the ....~~n~
utility shal! not be in violation of this chapter, or any
ordinance enacted pursuant to the provisions of Section
12.16.040 in continuing to maintain overhead facilities
necessary to serve such person during the period of such
noncompliance and such reasonable time thereafter as may
be necessary to remove thc samcthose facilities.
SECTION 14. The City Council hereby finds that the
passage of this ordinance is not a project under the California
Environmental Quality Act.
SECTION 15. This ordinance shall become effective upon
the commencement of the thirty-first day after the day of its
adoption.
INTRODUCED:
PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:APPROVED:
City Clerk Mayor
Director of Utilities
APPROVED AS TO FORM:
Assistant City Manager
Senior Asst. City Attorney
060327 cs 0072659 11
RECORDING REQUESTED BY:
CITY OF PALO ALTO
AND WHEN RECORDED, MAIL TO:
City of Palo Alto
250 Hamilton Avenue
Palo Alto, CA 94301
ATTN: City Clerk
Request for recordation without
fee is made in accordance with
California Government Code §27383
And §6103.
Space Above for Recorder’s Use
NOTICE OF ASSESSMENT
(Filed pursuant to Section 12.16. 095 of Chapter 12.16
of Title 16 of the Palo Alto Municipal Code)
Pursuant to the requirements of Sections 12.16.091 to 12.16.097, inclusive,
of the Palo Alto Municipal Code, the undersigned Director of Utilities of the
City of Palo Alto (the "CITY") hereby gives notice of a special assessment in
the amount of $against the described real property (the
"PROPERTY"):
PROPERTY ADDRESS:
Palo Alto, Santa Clara County, California
ASSESSOR’S PARCEL NUMBER:
LEGAL DESCRIPTION:
NAMES(S) OF LEGAL OWNER(S):
Notice is further given that the special assessment shall become a lien upon
the PROPERTY upon the recording of this notice in the office of the County of
Santa Clara Recorder.
0601 ! 8 cs 0072662
I, , Director of Utilities of the CITY, hereby
certify that the CITY on behalf of the legal owner(s) (the ~OWNER") of the
PROPERTY has paid the base cost and incidental expense of converting the
electrica! service connection of the OWNER, against which this lien is
recorded. This lien shall remain a lien until the CITY fully releases and
discharges the OWNER pursuant to Chapter 12.16 of the Palo Alto Municipal
Code.
DATED:
At Palo Alto, California
CITY OF PALO ALTO
Name :
Title: Director of Utilities
060118 cs 0072662
RECORDING REQUESTED BY:
City of Palo Alto
AND WHEN RECORDED, MAIL TO:
City of Palo Alto
250 Hamilton Avenue
Palo Alto, CA 94301
ATTN: City Clerk
Request for recordation without
fee is made in accordance with
California Government Code §27383
And §6103.
Space Above for Recorder’s Use
LOAN AGREEMENT SECURING PAYMENT OF ELECTRICAL
SERVICE CONNECTION COSTS
This Loan Agreement (the ~Agreement"), dated as of
__, is made and entered into by the CITY OF PALO ALTO,
corporation (the "CITY") and
(the ~OWNER") residing at
Palo Alto, County of Santa Clara, State of California.
a municipal
RECITALS:
A. The OWNER holds title to certain real property located in Palo Alto
(the ~PROPERTY"), as more particularly described in Exhibit A, attached
hereto and incorporated herein by reference.
B. Chapter 12.16 of the Palo Alto Municipal Code requires the OWNER to pay
the actual costs of the electrical service connection conversion (the
~COSTS") incurred in connection with the formation of an underground utility
district, in which the PROPERTY is located. Sections 12.16.091 through
12.16.096, inclusive, of the Palo Alto Municipa! Code authorize the financing
of the COSTS by the CITY and the repayment of the COSTS by the OWNER at the
end of a period of time. The OWNER has elected to pay the COSTS to the CITY
in accordance with the requirements of Chapter 12.16 of the Palo Alto
Municipal Code.
C. The base cost and the incidental expense of such COSTS is in the amount
of $
AGREEMENT:
In consideration of the foregoing and the following covenants, terms and
conditions, the parties agree:
i. The OWNER acknowledges that he is obligated to pay, and he shall pay,
the CITY the actual cost of converting the electrical service connection (the
060t 18 cs 0072667
~base cost") on the PROPERTY to an underground location plus the incidental
expense incurred by the CITY in making the loan (the ~incidental expense"),
more particularly described in Recital C above, with interest, as provided in
Sections 12.16.091 to 12.16.097, inclusive, of the Palo Alto Municipa! Code.
2. A lien for the base cost and the incidental expense, as such terms are
defined in Section 12.16.092, will be established for the PROPERTY until the
OWNER makes payment in ful! to the CITY. The OWNER expressly consents and
agrees to the establishment of the special assessment and lien and waives the
taking of proceedings under Division 4 of the California Streets and Highways
Code in connection therewith. Division 4 of the Streets and Highways Code
provides a notice, hearing, and protest procedure by which the Counci! of the
CITY can impose an involuntary lien for the payment of special assessments
which apportion the costs of public improvements among properties receiving
the benefit of such improvements.
3. The CITY will furnish to the OWNER written notice of the estimated cost
of the underground electrical service connection construction work (the
~WORK") before it is performed. The CITY will pay the OWNER (or the licensed
contractor) upon presentation of a verified claim for the COSTS of the WORK
which the licensed contractor fully performs and completes.
4. The OWNER shall pay the loan by one of two methods: (a) payment shall
be made over a period of years, and each installment payment shall be added
to the OWNER’s annual real property tax bill; or (b) payment shall be made at
the end of a period of years when the PROPERTY is sold or transferred in
accordance with Chapter 12.16 of the Palo Alto Municipal Code. For the
purposes of Section 4(b), the PROPERTY shall be deemed sold or transferred,
if any of the following occurs: (i) the OWNER vacates the PROPERTY if the
PROPERTY is not sold or transferred; (2) the OWNER sells the PROPERTY; (3)
the OWNER’s future real property tax payment is delinquent; (4) the OWNER
dies; (5) the OWNER otherwise transfers title to the PROPERTY to a person
other than the OWNER, provided, however, a transfer by the OWNER to the OWNER
in trust shall not be considered a sale or transfer hereunder; (6) the OWNER
files for protection under the bankruptcy laws; or (7) the OWNER defaults
under a deed of trust, promissory note or other security interest in the
PROPERTY. Nothing in this Agreement shall prevent the OWNER from prepaying
the COSTS plus accrued interest, without penalty. The payment schedule for
the installment payments and the tota! amount of the payments made under
Section 4(a) hereof or the amount of the payment made under Section 4(b)
hereof is set forth in Exhibit B, attached hereto and incorporated herein by
reference.
5. Upon the default by the OWNER of any payment due hereunder, the unpaid
balance of the obligation, plus accrued interest, shall become immediately
due and payable. The OWNER shall be responsible for the payment to the CITY
of any and all costs incurred by the CITY in collection of any delinquent
assessment, including administrative costs and attorneys’ fees.
6. Notice given under this Loan Agreement shall be provided, in writing,
and shall be deemed duly served, given, delivered, and received, when
personally served, given, or delivered to the party to whom it is directed,
or in lieu of such personal delivery, when deposited in the United States
mail, first-class postage prepaid, and addressed, as follows:
060118 cs 0072667
CITY OF PALO ALTO
250 Hamilton Avenue
Palo Alto, CA 94301
Attention: City Clerk
OWNER
[see property address above]
With a copy to:
CITY OF PALO ALTO
250 Hamilton Avenue
Palo Alto, CA 94301
Attention: City Clerk
7. Time is of the essence of this Loan Agreement. This Loan Agreement shall
be binding upon the OWNER’s heirs, executors, trustees, administrators,
successors and assigns. The laws of the State of California shall govern the
interpretation of this Loan Agreement. The Agreement includes Exhibit A and
Exhibit B.
IN WITNESS WHREOF, the CITY and OWNER have duly executed this Loan Agreement
in Palo Alto, Santa Clara County, California.
CITY OF PALO ALO OWNER
City Manager
Dated:
APPROVED AS TO FORM:Dated:
Senior Asst. City Attorney
Acknowledgment required by Owner
Director of Utilities
NOTARY
060t 18 cs 0072667